Li Auto Q1 2025 Earnings Call Transcript

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May 29, 2025
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Operator

Ladies and gentlemen, thank you for standing by for Lee Auto's First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in listen only mode. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Janet Zhang, Investor Relations Director of Li Auto.

Operator

Please go ahead, Janet.

Janet Zhang
Janet Zhang
Director of Investor Relations at Li Auto

Thank you, Kelly. Good evening, and good morning, everyone. Welcome to Li Auto's first quarter twenty twenty five earnings conference call. The company's financial and operating results were published in a press release earlier today and are posted on the company's IR website. On today's call, we will have our Chairman and CEO, Mr.

Janet Zhang
Janet Zhang
Director of Investor Relations at Li Auto

Xiang Li and our CFO, Mr. Johnny Tier Li to begin with prepared remarks. Our President, Mr. Donggui Ma and our Senior Vice President, Mr. James Liangjin Zou and our CTO, Mr.

Janet Zhang
Janet Zhang
Director of Investor Relations at Li Auto

Yan Xie, will join for the Q and A discussion. Before we continue, please be reminded that today's discussion will contain forward looking statements made under the Safe Harbor provisions of The U. S. Private Securities Litigation Reform Act of 1995. Forward looking statements may involve inherent risks and uncertainties.

Janet Zhang
Janet Zhang
Director of Investor Relations at Li Auto

As such, the company's actual results may be materially different from the views expressed today. Further information regarding risks and uncertainties is included in certain company's filings with the U. S. Securities and Exchange Commission and the Stock Exchange of Hong Kong Limited. The company does not assume any obligation to update any forward looking statements except as required under applicable law.

Janet Zhang
Janet Zhang
Director of Investor Relations at Li Auto

Please also note that Liaotto's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non GAAP financial measures. Please refer to Li Auto's disclosure documents on the IR section of our website, which contains a reconciliation of the unaudited non GAAP measures to comparable GAAP measures. Our CEO will start his remarks in Chinese. There will be English translation after he finishes all his remarks. With that, I will now turn the call over to our CEO, Mr.

Janet Zhang
Janet Zhang
Director of Investor Relations at Li Auto

Xiang Li. Please go ahead.

Moderator

Hi, everyone. This is Li Xiang and thank you for joining today's conference call. In the first quarter of twenty twenty five, we delivered more than 92,000 vehicles, an increase of 15.5% year over year, bringing total revenues to RMB25.9 billion. We performed strongly in the RMB200000 and above NEV market in China, growing at twice the market rate according to the insurance registration data from the China Automotive Technology and Research Center. As of April 2025, we have been the segment sales champion among Chinese auto brands for fourteen consecutive months.

Moderator

In particular, we topped the market with a 14.1% market share in April, further reinforcing our leadership. As of the April, we have delivered more than 1,260,000 vehicles. As a pioneer and leader in eREV, Li L Series continues to enhance user value through ongoing innovation and product iteration, maintaining a competitive edge despite challenges from newcomers. Recently, we launched the new Li Mega and new Li L series. The refreshed Li AD Max models received NVIDIA's latest Thor U chip, while Li AD Pro models upgraded from Horizon Robotics Journey five to Journey six ms chips and include ATL LiDAR sensors co developed with SiF standard.

Moderator

In addition to these upgrades for assisted driving, we have enhanced chassis control, exterior and interior design and smart cockpit across the new Li L series. On April 23, we launched Li Mega Home at Shanghai Auto Show twenty twenty five, reflecting our latest understanding of multi generational families and their mobility needs. Featuring top tier configurations for our flagship model, Lee Mega Home aligns closely with our mission to create a mobile home, create happiness. Since its launch, Lee Mega Home has accounted for over 90% of Lee Mega orders, demonstrating its strong value proposition and user recognition. Lee Mega currently has a robust order backlog with continuous inflow.

Moderator

To meet growing demand, we're increasing our production capacity to achieve 2,500 to 3,000 monthly deliveries by July. With the delivery of Lee Mega Home, the new Lee Mega Ultra and the new Lee L Series in May, we expect second quarter deliveries to reach between 123,000 to 128,000 units. The success of Li Mega Home strengthens our confidence in becoming a top tier player in the premium BEV market with a robust BevPep pipeline. Preparations for our upcoming BevPep are progressing smoothly with Li I8 and Li I6 scheduled for launch in July and September respectively. Li I8 test vehicles are currently undergoing road tests across the country and have already locked over 9,500,000 kilometers as part of our preparation for mass production.

Moderator

An efficient and convenient charging network is critical for electric vehicle user experience. To support our BEV launch, we have built the largest urban highway supercharging network among all automakers in China, covering over 50,000 kilometers of highways as of the end of first quarter. Currently, we operate 2,350 supercharging stations equipped with over 12,800 charging stalls. Additionally, we completed the development the deployment of a supercharging network along 20 long distance tourist routes, including the G318 Sichuan Tibet Highway. We will continue to accelerate supercharging network deployment with plans to deploy over 2,500 stations in June and aim for 4,000 stations by the end of the year.

Moderator

We will further enhance our competitive edge over other automakers on charging network going forward, ensuring a hassle free charging experience for our users. We continue to rapidly develop our ADAS technology, our in house developed VLA driver model as our next generation integrates spatial, language and behavioural intelligence into a single model, enabling ADAS to perceive, think and dynamically adapt to the environment. VLA driver will redefine user experience and deliver innovative product formats, transforming vehicles into smart agents capable of communicating with users, understanding intentions and acting as dedicated drivers that can comprehend, see and locate. Our proprietary reconstructive and generative cloud based world model creates realistic simulation environments that will support the closed loop reinforcement learning of VLE driver at scale. This will drive a continuous improvement in iteration efficiency and quality.

Moderator

We plan to launch VLA DRIVER with Li I8 and then roll it out to all Li AB Max equipped vehicles by OPA updates. We firmly believe that VLA DRIVER will bridge the physical and digital world. Going forward, we will continue exploring opportunities to seamlessly integrate multimodal interaction to deliver a more natural human vehicle co driving experience. LiXiau and Pengxue also continues to evolve. The latest OTA update at the May introduced new design memory capabilities to recognize each family member and agent functions that allow it to act as an assistant for daily activities such as placing orders, making reservations, and tracking package deliveries via voice commands.

Moderator

Our aim is to create increasingly personalized smart space that can make human vehicle interaction as intuitive as interacting with a family member. In April, we published the Li Halo OS technical architecture white paper and released initial code to the open source community. As the first automaker globally to open source this proprietary smart vehicle operating system, we hope to empower industry partners and foster industry wide progress through the HaloOS. Moving on to our sales and servicing network. We're preparing for this year's expected growth in sales and new vehicle launches.

Moderator

We will continue to expand our network in the major auto parks and shopping malls, while penetrating lower tier cities through the STAR plan to boost overall coverage efficiency. As of 04/30/2025, we had 500 retail stores in 151 cities nationwide, alongside 500 servicing centers and Li Auto authorized body and paint shops operating in two twenty three cities. Looking ahead, we remain committed to our user centric approach driven by innovation and will continue to enhance our industry leading product strength to deliver a greater happiness to more families. I will now turn the call over to our CFO, Johnny, to walk you through our financial performance.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

Thank you, Xiaoping. Hello, everyone. I will now walk you through some of our twenty twenty five first quarter financials. Due to time constraints, I will address financial highlights here and encourage you to refer to our earnings press release for further details. Total revenues in the first quarter were RMB25.9 billion or $3,600,000,000 up 1.1% year over year and down 41.4% quarter over quarter.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

This included RMB24.7 billion or $3,400,000,000 from vehicle sales, up 1.8% year over year and down 22.1 quarter over quarter. The year over year increase was mainly attributable to the increase in vehicle deliveries, partially offset by the lower average selling price, mainly due to different process product mix. The sequential decrease was mainly due to the decrease in vehicle delivery, which was impacted by seasonal factors related to Chinese New Year holiday. Cost of sales in the first quarter were RMB 20,600,000,000.0 or US2.8 billion dollars up 1.3% year over year and down 41.6% quarter over quarter. Gross profit in the first quarter was RMB5.3 billion or US732.9 million dollars up 0.6% year over year and down 40.7% quarter over quarter.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

Vehicle margin in the first quarter was 90.8% versus 90.3% in the same quarter same period last year and 19.7 in the prior quarter. The year over year increase was mainly due to cost reductions and the pricing strategy changes in the first quarter of twenty twenty four, which were partly offset by different product mix. Vehicle margin remained relatively stable over the prior quarter. Gross margin in the first quarter was 20.5% versus 20.6% in the same period last year and 20.3% in the prior quarter. Operating expenses in the first quarter were RMB5 billion or US695.5 million dollars down 14% year over year and 4.2 quarter over quarter.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

R and D expenses in the first quarter were RMB 2,500,000,000.0 or US346.4 million dollars down 17.5% year over year and up 4.4% quarter over quarter. The year over year decrease was mainly was primarily due to decreased employee compensation and impact of the pace of new vehicle program. The R and D expenses remained relatively stable over the prior quarter. SG and A expenses in the first quarter were RMB2.5 billion or $348,800,000 down 15% year over year and 17.7% quarter over quarter. The year over year and the sequential decrease were primarily due to decreased employee compensation, improved operational efficiency and decreased marketing and promotion activities.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

Income from operations in the first quarter was RMB271.7 million or US37.4 million dollars worth of loss from operations of million in the same period last year and income from operations of billion in the prior quarter. Operating margin in the first quarter was 1% versus negative 2.3% in the same period last year and positive 8.4% in the prior quarter. Net income in the first quarter was million or US89.1 million dollars up 9.4% year over year and down 81.7% quarter over quarter. Diluted net earnings per ADS attributable to ordinary shareholders were RMB0.62 or $0.08 in the first quarter versus RMB 0.56 in the same period last year and RMB 3.31 in the prior quarter. Turning to our balance sheet and cash flow.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

Our cash position remains strong and stood at RMB 110.7 billion or US15.3 billion dollars as of 03/01/2025. Net cash used in operating activities in the first quarter was RMB1.7 billion or US234.4 million dollars versus RMB3.3 billion in the same period last year and net cash provided by operating activities of billion in the prior quarter. Pretax loan was negative RMB2.5 billion or negative $348,700,000 the first quarter versus negative RMB5.1 billion in the same period last year positive RMB6.1 billion in the prior quarter. And now for our business outlook. For the second quarter of twenty twenty five, the company expects to deliver deliveries to be between 249,000 vehicles, representing a year over year increase of 13.3% to 17.9%.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

The company also expects second quarter total revenues to be between RMB32.5 billion and RMB33.8 billion or US4.5 billion dollars and US4.7 billion dollars representing a year over year increase of 2.5% to 6.7%. This business outlook reflects the company's current and preliminary view on its business situation and the market condition, which is subject to change. That concludes our prepared remarks. I will now turn the call over to the operator and start our Q and A session.

Operator

Thank you. We will now begin the question and answer session. If you are on a speakerphone, please pick up the handset to ask your question. For the benefit of participants on today's call, please limit yourself to two questions. And if you have additional questions, you can reenter the queue.

Operator

And Your first question comes from Tim Tsao with Morgan Stanley.

Tim Hsiao
Tim Hsiao
Analyst at Morgan Stanley

My first question is about the volume growth. Because of the authors, the new L series has received great market feedback. But in the meantime, we also noticed that competitors are trying very hard to benchmark the L Series with much more aggressive pricing and specs. So how would Li Auto keep growing the co sales two times faster than the overall higher market throughout the rest of the year and keep gaining market share at expenses of peers in China? That's my first question.

Tim Hsiao
Tim Hsiao
Analyst at Morgan Stanley

Thank you.

Moderator

After we launched the new VLT Series, its sales performance met our expectations and has shown healthy growth. Our weekly sales are now over 10,000 units and month to date, our market share in RMB 200,000 and over and higher NEV market has reached 14.7%. We're very confident the monthly deliveries of our new L series will return to the 50,000 per month level pretty soon. Thank you.

Tim Hsiao
Tim Hsiao
Analyst at Morgan Stanley

So my second question is about the products. So aside to the current SUV lined up, when would the Li Auto consider selling sedans? Will the company also adopt the two powertrain strategies to include both EREV and the BV for sedan product line to cater to a broader consumer base? That's my second question. Thank you.

Moderator

In our view with Lee Mega, the lead range extended SUV series and the lead best SUV series in full sales production, we can reach up to 300,000,000,000 in terms of revenue. And after we reach that level of revenue scale, we will review based on user demand and market condition when to launch sedan models and MPV models covering a more affordable price range. And these products in combination will also be offered not only in China, but also other Asian markets and European markets. Thank you.

Tim Hsiao
Tim Hsiao
Analyst at Morgan Stanley

Thank you. Thanks a lot for sharing all the insights on information. Thank you.

Operator

Your next question comes from Yingbo Zhu with SciTech Securities.

Yingbo Xu
Analyst at CITIC Securities Company

So I have two questions. And the first one is about Li HelloOS. Could you please give me us more colors about the intelligence level and how to cut in cost and the difference between AutoFlare and HelloOS? And the second question about product. For L6 and L8, what's the real difference between their users?

Yingbo Xu
Analyst at CITIC Securities Company

And in future, how about I8 and I6? How can they want the consumers in the BEV market? Thank you.

Yan Xie
Yan Xie
Chief Technology Officer at Li Auto

Inbo. This is Yan. I will answer your first question. Right now, we are seeing strong interest in our HaloOS from three main types of companies, automakers, chip manufacturers and other ecosystem suppliers. In fact, some of these suppliers have already started contributing code to the open source community.

Yan Xie
Yan Xie
Chief Technology Officer at Li Auto

For us, the stronger the overall industry ecosystem becomes, the faster we can iterate on our own product and technologies. As our partners grow in capability and collaborate with us more closely, we also see meaningful cost efficiency. And as the open source community matures, our investments in certain areas can be reduced, allowing us to focus more resources on what truly set us apart, our core strengths. At the same time, our operating system gave us a unique opportunity to vertically integrate hardware, software and algorithm capabilities. Over time, we're confident this will allow us to continuously enhance the AI user experience on HALEOS.

Yan Xie
Yan Xie
Chief Technology Officer at Li Auto

So how does HALEOS compare to Autosun? First of all, HALE OS can fully replace the core functionalities of standard AUTOSAR operating system. On top of that baseline, HALE OS brings significant advantages in areas where traditional OS doesn't do very well, such as more efficient resource usage and a true end to end time determinism. What is more, by redefining the system architecture, we are able to address some of the limitations of the relatively heavyweight auto software mark, especially when it comes to enabling faster, more agile innovation. Thank you.

Moderator

The Li Auto brand is positioned as a premium brand. Therefore, additional purchases and upgrades is a big part of our customer base. So specifically, our range extended models are catered towards customers who currently own ICE models, as an upgrade to ICE models, whereas BEV models are upgrades for NEV car owners. So i8 and i6 will be targeted towards the current ownership base of NEV cars. And our expectations for this year is that the overall NEV market over RMB200000 will be about 3,800,000 units this year.

Moderator

And among which 1,690,000 will be PHEV and 2,130,000 will be BEVs. Therefore, by introducing BEVs models, we'll be taking into a bigger market. Thank you.

Operator

Your next question comes from Tina Hao with Goldman Sachs.

Tina Hou
Tina Hou
Analyst at Goldman Sachs

Hi management. Thanks for taking my questions. So I have two questions. The first one is regarding our balance sheet. So just wondering what is our target leverage ratio?

Tina Hou
Tina Hou
Analyst at Goldman Sachs

And also, sort of, what is our payable cycle, including some of the bank bills payable to the supply chain? And then the second question is regarding our upcoming i8, the BEV model. So could management share with us what do you think is the biggest selling point and advantage versus other best models in the same segment.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

Okay. Tian, this is Johnny. I'll take the first question. We are very committed to maintain good relationships with supply supplier partners. We strive to maintain the payable days at a reasonable and healthy level, basically, ranging from two to four months.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

So if you see our payable days at the end, it's because there are some reconciliation days need to be spent after we booked in the balance and we will finally reconcile the balance with our suppliers. At the end of Q1, the payable balance didn't change much compared with the end of last year. So the quarter or quarter increase in the payable days was mainly due to the calculation that which is due to the lower cost of sales in the first quarter.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

You.

Moderator

So to brief a few points on I8's key selling points. Apart from the VLA driver model, which I mentioned earlier, I8 also has a very innovative styling, accurate and accurate. And the accurate styling is really designed around smart packaging to allow for the most space inside as well as a very low drag coefficient. And in the meantime, I8 also offers very good handling and ride comfort. Apart from that, I8 also supports charging up to 500 kilometers in ten minutes with this high voltage charging technology.

Moderator

And by the time we launch i8, we'll also would have built 500 supercharging stations to prepare for the launch of i8. And all these charging stations are built around the surrounding and the travel route of our potential customers. So we have reasons to believe that the VI8 will be a top choice for existing owners of NEV cars as the replacement of our upgrade to their current models. Thank you.

Operator

Your next question comes from Jin Chang with CICC.

Jing Chang
Analyst at China International Capital Corporation (CICC)

This is my first question. It's regarding to our sales target and also some trends outlook. We will set up clear sales target this year or will we flexibly adjust our volume and price strategy according to the market changes? And also in the longer term previously, have our calculations about the market size. And given the changes in recent two years, had there been any changes in our adjustments?

Jing Chang
Analyst at China International Capital Corporation (CICC)

So regarding to the mid to high end SUVs and especially family targeted cars, so what's our midterm sales target in domestic market?

Moderator

As we communicated before, we expect our growth in 2025 to be double the growth rate of overall RMB 200,000 above NEV market. And in terms of energy type, as we launch our BEV models, we'll be taken into a bigger TAM. As I mentioned earlier, the overall market of NEV over RMB 200,000 and more is RMB 3,800,000,000.0 this year expected and RMB 2,100,000.0, which is BEV. So our new BEV model launches will take us into this bigger market. And in terms of market demand, we think there's still a great potential.

Moderator

And I'll give one example with Tier four, Tier five cities. We've recently announced what we call STAR program, which will expand our coverage in Tier four and Tier five cities. And we've run some pilot programs last year in these Tier four and Tier five cities, like for example, in Sichuan, Dazhou and Zugou, both of which are Tier four, Tier five cities. And since we've opened our stores in last September, in less than half a year, we've reached over 28% market share in all passenger vehicle markets over 200,000 regardless of energy type. And another example in Shaanxi, Yanan, we've also reached 25% market share in all PV market over RMB200000 above.

Moderator

And as the overall penetration rate of NEV reaches over 50%, more and more users are choosing new energy vehicles. And also as we launch L6 and other models, we're seeing bigger opportunities in Tier four and Tier five cities. So this year we'll continue to expand our STAR program and bring incremental sales to the company. So our goal is to expand to 100 cities this year in Tier four, Tier five cities and bring in 100,000 incremental sales in 2026.

Jing Chang
Analyst at China International Capital Corporation (CICC)

So, second question is regarding to AD. So, Mr. Li Xiang elaborated in detail in how we do ELA in the previous AI talk, talking about our driver large model, several progresses, including the pre training of the foundation model and the different types of the reinforcement learning and etcetera. So, what's codifficulties do you think are there and how we do to differentiate ourselves from peer companies.

Moderator

Our training process for basically replicating an experienced driver is divided into four steps. Step one is training what we call a CL foundational model, pre training. Second step is post training into a VLA model. And then it's reinforced learning with human feedback or RLHF. And finally RL, reinforced learning.

Moderator

And this is how we train an experienced driver through AI. And the hardest part of all this is the pre training, which is the BL foundational model, as well as the last step, the reinforced learning step. This is a problem that all enterprises are trying to solve. So first of all, in the VL foundational model training process, we're trying to add specific video data so that the foundational model can understand three-dimensional space as opposed to other models which only understand two d space. This is a key differentiation of our foundational model.

Moderator

And then in reinforced learning, requires us to train the model in real world simulated environments to iterate the VLA model and improve its capabilities. So through reconstruction and generated processes and combination of these two methods, we can build world model that actually follow the physical loss physics in the real world and replicate traffic participants and other elements. So with very accurate simulation capabilities, the VLE driver model can train at very low cost and very accurately verify real issues in a simulated world model. And it can also significantly reduce the iteration period. Thank you.

Janet Zhang
Janet Zhang
Director of Investor Relations at Li Auto

Your

Operator

next question comes from Bin Wang with Deutsche Bank.

Bin Wang
Bin Wang
VP - Investment Banking at Deutsche Bank

I got two questions. One is about your gross margin and second one is about airport. In the first quarter, you actually enjoying the margin expansion. You mentioned that pricing strategy change. Can you provide more detail about this strategy change?

Bin Wang
Bin Wang
VP - Investment Banking at Deutsche Bank

Meanwhile, what's your outlook for the second quarter? And do we think that we launch a new system and obviously, if they actually reduce the cash subsidy? Can we assume your margin actually will increase in the second quarter? And for the second question is about the effort. You previously, you think this year will be the starting point for effort.

Bin Wang
Bin Wang
VP - Investment Banking at Deutsche Bank

Do you think I win a meaningful volume will be emerged for export business when you can start to say monthly export volume exceed 1,000 units? Thank you.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

Hi, Homi. This is John. I think our first, we expect the vehicle margin to still remain around 19% for the second quarter. As you know, the second quarter is we we have the the April and May, the mega is not there. And as of today, we have a lot of new mega home order of home handset is still will still start huge volume delivered just starting from this week.

Tie Li
Tie Li
CFO & Executive Director at Li Auto

Now, also, it's a switch from the old the 2024 or our workshop out there to the 2025. So it's a combination. So we still keep the vehicle market around 19%. Thank you.

Moderator

We have three prerequisites for entering an overseas market or enter any market, which is offering a good hardware. And second, being able to provide after sales support. And third is to provide smart software services. Only when we meet these three conditions can we enter a new market because we consider ourselves to be selling AI era terminals as opposed to just selling physical products. Over the next few years, we'll be focusing on Asian European markets and recruit established distributors across these countries.

Moderator

And in the meantime, we're also stepping up our efforts to identify and assign top talents, internal talents to our overseas market team while also recruiting actively professionals with international experience to join our team. Overall market overseas market is a part of our long term strategy. So we'll be working very hard and with the goal of reaching 30% of overall sales overseas. Thank you.

Bin Wang
Bin Wang
VP - Investment Banking at Deutsche Bank

Thank you.

Operator

Your next question comes from Paul Gong with UBS.

Paul Gong
Paul Gong
Executive Director at UBS Group

So my first question is regarding the VLA timing for availability to the consumers, especially given the tightening of the regulation on the driving assistance recently by the government. Do we need more time to verify it? Or are we still confident that it would be available for consumers to use in July? The second question is regarding the implication of Mega Home. This has definitely showed some improvement from the previous Mega sales.

Paul Gong
Paul Gong
Executive Director at UBS Group

And what do you think are the lessons learned and what would be the lessons for the upcoming i8 and i6 launch?

Moderator

We're still on track to releasing our VLA driver model in July together with our fab electric SUV i8, then be rolling out the only driver to all of our users in August. And obviously our customers can also experience the only driver in test drives in all of our stores. We view regulations on safety assisted driving to be absolutely necessary. And in fact, we view stringent regulations to be more favorable to companies with solid technical fundamentals. Companies So for Li Auto, our super alignment technology will address many of the safety concerns and allow us to prioritize safety at the top consideration in all development stages.

Moderator

Enhanced regulatory regulations requirements will not hinder our R and D efforts. Thank you. So in fact our previous study rate of mega deliveries was about 1,000 per month. And our expectation was for it to increase by 50% with the launch of the new model. But in fact, eventually increased by over 150%, significantly exceeding our expectations.

Moderator

And obviously, we hope to increase production capacity to keep maintain a steady state delivery rate of 2,500 to 3,000 as we expect. So as we look back at the previous year and how we got to where we are today, we realized the most important thing was not to focus on our own internal desires or focus too much on the competition or on specific market segments on which competitors entered this market and do things based on our fear. But in fact, we return to the users and focus on their family users and what they actually need and how we can surpass what they're looking for or other products are offering in the market and innovate around their needs. So one opportunity that we see as we see the success with the new Mega Home and what we've done with the explorations we did last year was really this opportunity around mobile space. There's so many things that we can do to innovate around this mobile space experience and there's so much exciting product features that we're exploring because we hope the car going forward is not the experience not going to be just focused on hardware, but actually an integrated AI experience enabled by hardware and software.

Moderator

So looking forward, we know when we talk about user machine interaction, we think of Apple as a company that does it best in the world. We hope when people talk about space experience, people think of Li in the future. Thank you.

Paul Gong
Paul Gong
Executive Director at UBS Group

Thank you very much. Thank you.

Operator

As we are reaching the end of our conference call now, I'd like to turn the call back over to the company for closing remarks. Ms. Janet Zhang, please go ahead.

Janet Zhang
Janet Zhang
Director of Investor Relations at Li Auto

Thank you once again for joining us today. If you have further questions, please feel free to contact Liado's Investor Relations team. This concludes today's conference call. You may now disconnect your lines. Thank you.

Executives
    • Janet Zhang
      Janet Zhang
      Director of Investor Relations
    • Tie Li
      Tie Li
      CFO & Executive Director
    • Yan Xie
      Yan Xie
      Chief Technology Officer
Analysts
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Key Takeaways

  • 92,000 vehicle deliveries in Q1 (+15.5% YoY) drove RMB25.9 billion in revenues, and Li Auto maintained its segment leadership with a 14.1% market share in April.
  • The new Li Mega Home and refreshed Li L Series, featuring NVIDIA Thor U and upgraded Horizon Journey 6 chips plus co-developed LiDAR sensors, have won strong recognition, with Mega Home making up over 90% of Li Mega orders and capacity being scaled to 2,500–3,000 monthly deliveries by July.
  • The BEV pipeline is on track with the Li I8 and I6 launches scheduled for July and September, with I8 test vehicles logging over 9.5 million km and Q2 deliveries expected at 123,000–128,000 units.
  • Li Auto operates China’s largest urban highway supercharging network with 2,350 stations (12,800 stalls) and plans to expand to 2,500 stations by June and 4,000 by year-end to ensure a hassle-free charging experience.
  • Despite YoY growth, Q1 revenue and gross profit fell 41.4% and 40.7% sequentially, resulting in a 1% operating margin (down from 8.4% in Q4) and net income down 81.7% QoQ.
AI Generated. May Contain Errors.
Earnings Conference Call
Li Auto Q1 2025
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