Revenue Soars but Profit Slides: Li Auto's Q2 2024 Financials Paint a Mixed Picture

Li Auto Inc. (LI) released its financial results for the second quarter of fiscal year 2024, showcasing notable revenue growth amidst a mixed performance in profitability. For the first six months of 2024, Li Auto achieved a cumulative revenue of RMB 573.12 billion, marking a year-on-year increase of 20.81%. However, the company's cumulative net profit for the period was RMB 16.92 billion, representing a significant decrease of 47.84% compared to the same period last year. The basic earnings per share (EPS) for the first half of the year stood at RMB 0.7989, down from RMB 1.17 in the previous year.

In the second quarter alone, Li Auto delivered a record revenue of RMB 317 billion, a 10.6% increase from the previous year. The quarter saw the company delivering 108,581 new vehicles, a 25.5% year-on-year growth. Operating efficiency continued to improve in Q2, with an adjusted net profit of RMB 15 billion and a maintained gross margin of 19.5%. During the quarter, Li Auto allocated RMB 30 billion to research and development, focusing on core technologies such as intelligent driving, smart spaces, electric power, and vehicle safety.

Li Auto's charging network also experienced substantial growth in Q2, with 730 supercharging stations and 3,416 charging piles spread across the country by August 25. The company dominated the market with over 490 highway supercharging stations, ensuring long-distance travel convenience for its users. The number of urban supercharging stations surpassed 230, complemented by over 500 premium supercharging stations, offering reliable and fast charging solutions for urban commutes.

Looking ahead to the third quarter, Li Auto forecasts vehicle deliveries between 145,000 and 155,000 units, translating to an annual growth rate of 38.0% to 47.5%. Total revenue for Q3 is projected to range from RMB 394 billion to RMB 422 billion, reflecting a year-on-year increase of 13.7% to 21.6%. Li Auto's continuous investment in cutting-edge technologies and its expansive infrastructure network underline its strategic focus on maintaining a competitive edge in the rapidly evolving automotive industry.