Li Auto (LI) investor relations material

Executive summary

• Delivered 111,074 vehicles in Q2 2025, with total revenues of RMB30.2 billion, up 16.7% sequentially but down 4.5% year-over-year, maintaining a leading position in the RMB200,000+ NEV segment in China.

• Net income was RMB1.1 billion, nearly flat year-over-year but up 69.6% from the previous quarter.

• Launched Li Mega Home and Li i8, both achieving strong sales and positive user feedback; Li i8 deliveries began August 20, 2025, and are expected to exceed 8,000 cumulative by September.

• Expanded charging network to over 3,100 stations, aiming for 4,000 by year-end, and expanded retail network to over 535 stores.

• Underwent major sales and service system restructuring to enhance operational efficiency and user experience.

Financial highlights

• Vehicle sales were RMB28.9 billion, down 4.7% year-over-year but up 17.0% sequentially; gross profit was RMB6.1 billion, down 1.8% year-over-year but up 14.1% sequentially.

• Gross margin was 20.1%, up from 19.5% a year ago but slightly down from 20.5% in the prior quarter; vehicle margin at 19.4%.

• Operating income reached RMB827 million, up 76.7% year-over-year and 204.4% quarter-over-quarter; operating margin was 2.7%.

• Diluted net earnings per ADS were RMB1.03, down 1.9% year-over-year but up 66.1% sequentially.

• Maintained a robust cash position of RMB106.9 billion as of June 30, 2025, despite negative operating cash flow of RMB3 billion and free cash flow of negative RMB3.8 billion.

Outlook and guidance

• Q3 2025 vehicle deliveries expected between 90,000 and 95,000 units, a year-over-year decrease of 41.1% to 37.8%; revenue guidance between RMB24.8 billion and RMB26.2 billion, down 42.1% to 38.8% year-over-year.

• Gross margin expected to be maintained at around 19% in Q3.

• Ongoing investments in AI and R&D, with AI spending projected to exceed RMB6 billion in 2025.

• Overseas expansion to begin in 2025, targeting Middle East, Central Asia, and Europe.