Written by Cláudio Afonso | LinkedIn | X
Beijing-based new energy vehicle maker Li Auto reported on Thursday its third-quarter earnings results, posting record revenue of 42.9 billion yuan ($6.1 billion) as vehicle deliveries surpassed 150,000 units for the first time.
In mid-October, the company delivered its one millionth vehicle, achieving the milestone in under five years since commencing deliveries in 2019.
Revenue jumped 23.6% year on year and 35.3% from the second quarter of 2024.
Vehicle margin reached 20.9% between July and September, down from 21.2% a year ago but recovering from 18.7% the previous quarter.
As of the time of writing, U.S.-listed Li Auto shares are trading 5.7% lower at $27.30.
The company reported a gross profit increase of 20.7% to 9.2 billion yuan ($1.3 billion) while the sequential growth reached 49.3% from 6.2 billion yuan.
The company’s chief financial officer, Tie Li, noted the new revenue record of 42.9 billion yuan adding that the gross margin growth was due to higher sales, economies of scale and a higher adoption of the company’s software Li AD Max.
“In the third quarter, we maintained our robust business performance. Our record vehicle deliveries boosted revenues to a historic high of RMB42.9 billion, representing an increase of 23.6% year-over-year,” the executive said in a statement.
“With sales across our model lineup steadily growing, our economies of scale continued to expand which, combined with Li AD Max vehicles accounting for a larger proportion of our sales mix driven by breakthroughs in intelligentization, allowed us to meaningfully expand our gross margin to 21.5%,” Li added.
The CFO said the company is “poised to maintain a relentless pursuit of business growth and technological innovation.”
“Additionally, our net income reached RMB2.8 billion and operating cash flow reached RMB11.0 billion in the third quarter. Building on our solid execution across the organization and strong profitability, we are poised to maintain a relentless pursuit of business growth and technological innovation, which will propel us forward on our journey to achieving our long-term vision,” he continued.
(Story being updated)
Written by Cláudio Afonso | LinkedIn | X
