The PHEV maker Li Auto announced Monday its second quarter financial results reporting revenue of $1.30 billion and a quarterly gross margin reached 21.5%, up from 18.7% reached in the second quarter of 2021.
Vehicle sales increased 73% year-over-year to $1.27 billion and a decrease of 8.9% from RMB9.31 billion in the first quarter of 2022.
The company expects to deliver between 27,000 and 29,000 vehicles, representing an increase of 7.5% to 15.5% from the third quarter of 2021. Li expects total revenues to be between RMB8.96 billion ($1.34 billion) and RMB9.56 billion ($1.43 billion), representing an increase of 15.3% to 22.9% from the third quarter of 2021.
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Li Auto CEO Xiang Li said, “We delivered solid second quarter results in an environment with challenges and uncertainties through operational and product excellence. Our vehicles continued to win family users, not only illustrating the strength of our vehicle and the growing appeal of our brand, but also reaffirming the effectiveness of our strategy.”
“Our second model, Li L9, a flagship smart SUV for families, has received positive feedback from our users since its launch on June 21, as evidenced by the especially strong number of non-refundable orders received for the vehicle. The great perception and vehicle control capabilities of our self-developed autonomous driving system, Li AD Max, the excellent drivability empowered by our flagship range extension system, and the all new entertainment experience featured in Li L9’s innovative, interactive space, have all garnered highly positive reviews from users in test drives.”
Mr. Tie Li, chief financial officer of Li Auto, added, “We are pleased with our solid second quarter results in the face of numerous pandemic-related challenges. Driven by our strong vehicle deliveries, our revenues reached RMB8.73 billion for the second quarter, up 73.3% year over year. The power of our product, our execution consistency, and operational resilience enabled us to mitigate the cost inflation affecting the entire industry. As a result, our second quarter gross margin remained relatively solid at 21.5%, up 2.6 percentage points year over year, and our cash flow from operations reached RMB1.13 billion. In addition, with the ongoing at-the-market offering of up to US$2.0 billion of American depositary shares, we are further strengthening our capital base to support our robust growth trajectory going forward.”
“This business outlook reflects the Company’s current and preliminary view on the business situation and market condition, which is subject to change,” the company said.
Last week, CLSA analyst Aaron Li initiated coverage on Li Auto shares with a Buy rating and a price target of $49 per share, an upside potential of 46% based on Friday’s closing price.
Li Auto delivered 10,422 Li ONEs in July 2022, up 21.3% year over year with the cumulative deliveries of the Li ONE model reaching 194,913 units.
As of July 31, 2022, the Company had 259 retail stores in 118 cities, as well as 311 servicing centers and Li Auto-authorized body and paint shops operating in 226 cities, the automaker said.
Last week, the Chinese charging service provider NaaS Technology announced a partnership with LI Auto enabling drivers to use in-vehicle maps/ App to locate partner charging stations. The service is scheduled to become available before the end of the third quarter.