Li Auto (LI) Q3 2024 earnings summary

Executive summary

• Q3 2024 vehicle deliveries reached 152,831, up 45.4% year over year and 40.8% quarter over quarter, with segment market share rising to 17.3% from 14.4% in Q2, solidifying leadership in the RMB 200,000+ NEV segment.

• Surpassed several established European premium brands in China's RMB 200,000+ PV market, ranking top three overall and first among Chinese brands.

• Achieved one million cumulative vehicle deliveries in 58 months, a first among emerging NEV brands in China, with the milestone reached in October 2024.

• Continued rapid innovation in autonomous driving, with major OTA 6.4 updates rolled out to over 320,000 vehicles, enhancing smart features and user adoption.

• Maintained strong ESG performance, receiving MSCI's highest AAA ESG rating for the second consecutive year.

Financial highlights

• Q3 2024 total revenues hit RMB 42.9 billion ($6.1 billion), up 23.6% year over year and 35.3% quarter over quarter.

• Vehicle sales revenue was RMB 41.3 billion ($5.9 billion), up 22.9% year over year and 36.3% quarter over quarter.

• Gross profit reached RMB 9.2 billion ($1.3 billion), up 20.7% year over year and 49.3% quarter over quarter.

• Net income was RMB 2.8 billion ($401.9 million), up 0.3% year over year and 156.2% quarter over quarter; non-GAAP net income was RMB 3.9 billion, up 11.1% year over year.

• Operating cash flow was RMB 11 billion ($1.6 billion), down from RMB 14.5 billion year over year but up from negative RMB 0.4 billion quarter over quarter; free cash flow was RMB 9.1 billion ($1.3 billion), down from RMB 13.2 billion year over year but up from negative RMB 1.9 billion quarter over quarter.

• Cash position stood at RMB 106.5 billion ($15.2 billion) as of September 30, 2024.

Outlook and guidance

• Q4 2024 vehicle deliveries expected between 160,000 and 170,000 units, up 21.4%-29% year over year.

• Full-year 2024 deliveries projected at 502,000-512,000 units.

• Q4 2024 total revenues expected between RMB 43.2 billion and RMB 45.9 billion ($6.2-$6.5 billion), up 3.5%-10% year over year.

• Sales growth in 2025 targeted at twice the growth rate of the RMB 200,000+ NEV market.