Li Auto, Inc. Q1 FY2025 earnings call

Key Points

• Delivered over 92,000 vehicles in Q1 2025, up 15.5% YOY, total revenues RMB25.9 billion.
• Strong in RMB200,000+ NEV market in China, 14 consecutive months as segment sales champion, 14.1% market share in April.
• Launched new Li MEGA and refreshed Li L Series with upgraded assisted driving, chassis, design, etc.
• Li MEGA Home accounts for over 90% of Li MEGA orders, production capacity increased for MEGA.
• Second quarter deliveries expected 121,000-128,000 units, revenue RMB32.5-33.8 billion.
• Developed VLA Driver, Li Halo OS open sourced, sales/service network expansion.

In the first quarter of 2025, Li Auto delivered over 92,000 vehicles, bringing total revenues to RMB25.9 billion. Vehicle sales revenue was RMB24.7 billion, up 1.8% year-over-year but down 22.1% quarter-over-quarter. Cost of sales was RMB20.6 billion, up 1.3% year-over-year but down 41.6% quarter-over-quarter. Gross profit was RMB5.3 billion, up 0.6% year-over-year but down 40.7% quarter-over-quarter. Vehicle margin was 19.8% in Q1 2025, slightly up from the same period last year. Operating expenses were RMB5 billion, down 14% year-over-year and 4.2% quarter-over-quarter. R&D expenses were RMB2.5 billion, down 17.5% year-over-year but up 4.4% quarter-over-quarter. SG&A expenses were RMB2.5 billion, down 15% year-over-year and 17.7% quarter-over-quarter. Net income was RMB646.6 million, up 9.4% year-over-year but down 81.7% quarter-over-quarter.

Forward-Looking

• Second quarter 2025 deliveries expected 121,000-128,000 units, up 13.3%-17.9% YOY.
• Second quarter total revenue expected RMB32.5-33.8 billion, up 2.5%-6.7% YOY.
• Plan to launch VLA Driver with Li i8, roll out to Li AD Max equipped vehicles via OTA.
• Increase supercharging stations to 2,500 in June, aim for 4,000 by year end.

• Forward-looking statements involve risks, actual results may differ.
• Competition from newcomers in EREV segment.
• Regulatory risks related to assisted driving.
• Dependence on supplier partnerships and supply chain stability.

Q: Timing of VLA availability to consumers and impact of assisted driving regulations?

A: Still on track to release VLA Driver with Li i8 in July, roll out to users in August, test drives available in stores, stringent regulations favorable to companies with solid tech fundamentals, super alignment technology addresses safety concerns.

Q: Lessons from MEGA Home and implications for i8/i6 launch?

A: MEGA deliveries increased over 150% beyond expectations, key was focusing on user needs under family users, innovating around mobile space experience. For i8/i6, will continue focus on user needs, leverage VLA Driver, styling, charging, and supercharging network.