Li Auto Releases Unaudited Financial Report for the First Quarter of 2021

Editor: Xiao Shi Mei

BEIJING, China, May 26, 2021 — Li Auto (NASDAQ: LI; hereinafter referred to as "Li Auto" or the "Company"), an innovator in China's new-energy vehicle market, today released its unaudited financial results for the first quarter ended March 31, 2021.

Operational Highlights for the First Quarter of 2021：

1. In the first quarter of 2021, the company delivered 12,579 Li ONE vehicles, representing a year-on-year increase of 334.4%.

2. As of March 31, 2021, the company operated 65 retail centers covering 49 cities, as well as 135 after-sales service and authorized body-and-paint centers covering 98 cities.

First Quarter 2021 Performance Summary：

1. First Quarter of 2021Automobile sales revenueRMB 3.46 billion (USD 528.7 million), representing a 311.8% increase from RMB 841.1 million in the first quarter of 2020 and a 14.6% decrease from RMB 4.06 billion in the fourth quarter of 2020. Compared with the first quarter of 2020, the growth in automobile sales revenue was primarily driven by increased delivery volumes resulting from the continued expansion of the sales network. In contrast, the decline in automobile sales revenue compared with the fourth quarter of 2020 was mainly attributable to lower vehicle deliveries, which were largely influenced by seasonal factors associated with the Lunar New Year holiday and by a localized COVID-19 outbreak in northern China in February 2021.

2. First Quarter of 2021Gross profit margin on automobile salesIt is calculated based on automobile sales revenue and cost of sales, standing at 16.9%. In the first and fourth quarters of 2020, these figures were 8.4% and 17.1%, respectively. The increase in the gross margin on automobile sales compared with the first quarter of 2020 was driven by lower raw-material costs and reduced per-vehicle manufacturing expenses resulting from higher production volumes, while the decline compared with the fourth quarter of 2020 was primarily attributable to promotional activities launched in the first quarter of 2021, which led to a decrease in average revenue per vehicle.

3. First Quarter of 2021Total RevenueRMB 3.58 billion (USD 545.7 million), representing a 319.8% increase from RMB 851.7 million in the first quarter of 2020 and a 13.8% decrease from RMB 4.15 billion in the fourth quarter of 2020.

4. First Quarter of 2021Gross profitRMB 616.7 million (USD 94.1 million), representing a year-on-year increase of 802.9% from RMB 68.3 million in the first quarter of 2020, and a quarter-on-quarter decrease of 14.9% from RMB 724.6 million in the fourth quarter of 2020.

5. First Quarter of 2021Gross profit marginIt stood at 17.3%, with 8.0% in the first quarter and 17.5% in the fourth quarter of 2020. This change was primarily driven by fluctuations in the gross margin on automobile sales.

6. First Quarter of 2021Operating lossRMB 407.7 million (USD 62.2 million), representing a 74.1% increase from RMB 234.2 million in the first quarter of 2020 and a 416.7% increase from RMB 78.9 million in the fourth quarter of 2020. In the first quarter of 2021, non-GAAP operating loss [Non-GAAP financial measures exclude stock-based compensation expense, changes in the fair value of warrants and derivative liabilities, gains on convertible redeemable preferred shares, and the impact of foreign-exchange fluctuations on convertible redeemable preferred shares.] amounted to RMB 224.8 million (USD 34.3 million), down 4.0% from RMB 234.2 million in the first quarter of 2020 but up 216.2% from RMB 71.1 million in the fourth quarter of 2020.

7. First Quarter of 2021Net lossRMB 360 million (USD 54.9 million); net loss of RMB 77.1 million in the first quarter of 2020; net profit of RMB 107.5 million in the fourth quarter of 2020. First quarter of 2021Non-U.S. GAAP Net LossRMB 177 million (USD 27 million), a net loss of RMB 253.4 million in the first quarter of 2020, and a net profit of RMB 115.4 million in the fourth quarter of 2020.

8. First Quarter of 2021Operating cash flowRMB 926.3 million (USD 141.4 million), representing an increase of RMB 989.3 million from the negative operating cash flow of RMB 63 million in the first quarter of 2020, and a decrease of 49.1% from RMB 1.82 billion in the fourth quarter of 2020.

9. First Quarter of 2021Free cash flowRMB 570.2 million (USD 87 million), representing an increase of RMB 755.4 million from the negative free cash flow of RMB 185.2 million in the first quarter of 2020, but a decrease of 64.3% from RMB 1.60 billion in the fourth quarter of 2020.

As of March 31, 2021, the company's cash reserves—comprising cash and cash equivalents, restricted cash, time deposits, and short-term investments—totaled RMB 30.36 billion (USD 4.63 billion).

Latest Developments：

Deliveries: In April 2021, the company delivered 5,539 Li ONE vehicles, representing a year-on-year increase of 111.3% compared with April 2020. As of April 30, 2021, the company operated 73 retail centers in 53 cities, along with 143 after-sales service and authorized body-and-paint centers covering 105 cities.

Completion of the Convertible Preferred Bond Offering: In April 2021, the Company issued convertible preferred bonds with a total principal amount of US$862.5 million (the "Bonds"), including an additional US$112.5 million in principal that was purchased by the initial purchasers upon full exercise of their option. The Bonds bear a coupon rate of 0.25% and are due to mature in 2028.

The Company plans to use the proceeds from the bond issuance for (i) research and development of new vehicle models, including all-electric models; (ii) research and development of cutting-edge technologies; and (iii) working capital and other general corporate purposes.

2021 Li Auto ONE：

On May 25, 2021, Li Auto officially launched the 2021 Li ONE. It is the world's first vehicle equipped as standard with NOA navigation-assisted driving. Building on the strengths of the 2020 model, the 2021 version features comprehensive upgrades to its range-extending electric system, Li AD advanced driver-assistance system, smart cockpit, and ride comfort, while achieving a NEDC combined range of 1,080 kilometers, delivering greater value to users. The 2021 Li ONE is priced at RMB 338,000 and will begin delivery on June 1, 2021.

Optimizations to both the software and hardware allow the 2021 Li Auto ONE to achieve an NEDC combined range of 1,080 kilometers and a WLTC combined range of 890 kilometers. The 2021 model showcases efficiency improvements in its intelligent range-extending system: under NEDC conditions in fuel-only mode, the thermal engine’s fuel consumption has been reduced to 6.05 liters per 100 kilometers—a truly top-tier figure among four-wheel-drive mid-to-large SUVs.

Li Auto firmly believes that family safety should come as standard, not as an optional extra. The 2021 Li ONE comes standard with Li Auto's fully in-house developed advanced driver-assistance system, Li AD, at no additional cost. In addition to developing our existing Level 2 driver-assistance features in-house, we have also launched the NOA navigation-assisted driving system. Li Auto is the first automaker to achieve full-stack, in-house development of NOA navigation-assisted driving based on domestically produced chips. The 2021 Li ONE is equipped with two of Horizon’s latest 'Journey 3' autonomous-driving-specific chips, five brand-new fifth-generation millimeter-wave radars from Bosch, and the world’s first mass-produced 8-megapixel vision recognition camera, with image recognition accuracy reaching 4K level. This stronger hardware foundation, combined with our self-developed perception algorithms, enables the 2021 Li ONE to not only recognize traffic lights and cones but even curb edges effectively. In real-world use, the NOA navigation-assisted driving feature can deliver more precise ramp entry and exit, automatic acceleration for lane changes, and lane-change functions under certain closed-road conditions, as well as fully automated parking assistance based on vision. With the coverage of high-precision maps, the NOA navigation-assisted driving feature will be rolled out to 2021 Li ONE users via OTA in the third quarter, gradually expanding to cover more closed roads.

Chinese consumers not only demand ample vehicle interior space but also expect it to be intelligently and efficiently allocated. The 2021 Li Auto ONE delivers an enhanced ride experience for every member of the family. In terms of cabin space, the third row has been specially optimized: legroom there has been increased by 41 mm, while still allowing the trunk to accommodate a 28-inch suitcase or a large stroller. Moreover, all four seats in the first and second rows are equipped with lumbar massage functionality, further enhancing ride comfort.

Message from the CEO and CFO：

Mr. Li Xiang, Founder, Chairman, and CEO of Li Auto, said: 'This quarter, we delivered a total of 12,579 Li ONE vehicles, a year-on-year increase of 334.4%. The Li ONE is the second best-selling model in China’s new-energy SUV market. Thanks to its outstanding product positioning and exceptional user experience, customer satisfaction and brand awareness have risen rapidly. Meanwhile, our directly operated sales and service network has also served as a solid pillar for our growth.'

'On May 25, 2021, we launched the 2021 Li Auto ONE. This new model elevates range-extender electric technology to a whole new level, with an NEDC combined range of 1,080 kilometers and a WLTC combined range of 890 kilometers. In range-extending mode, the thermal-engine fuel consumption under NEDC conditions drops to just 6.05 liters per 100 kilometers—an unprecedentedly low figure for a full-size, all-wheel-drive SUV. I must say I’m particularly proud of how far our R&D team has pushed the boundaries of range-extender technology.'

'The 2021 Li Auto ONE is the world’s first vehicle to come standard with NOA navigation-assisted driving. Its self-developed advanced driver-assistance system, paired with Horizon’s dual Journey 3 chips, an 8-megapixel high-definition camera, five brand-new millimeter-wave radars, and high-precision maps, makes driving in the Li Auto ONE safer, easier, and more convenient. We believe that a more robust active safety system should be standard—there should be no optional extras.'

'The Li Auto ONE’s spacious six-seat layout is highly popular among family consumers, and the 2021 model takes it a step further with significantly enhanced seat comfort across the board. All four power seats in the first two rows now come equipped with electric lumbar massage, while legroom in the third row has been increased by 4 centimeters. In addition, the in-car voice assistant 'Li XueSheng' has become even smarter, delivering a more spacious, more comfortable, and more intelligent cabin experience for an ever-growing number of families.'

'How can we create a smart electric vehicle that makes families happier? We can confidently say that the 2021 Li ONE has done just that,' Mr. Li Xiang concluded.

Mr. Li Tie, Chief Financial Officer of Li Auto, added: 'We are pleased with the company’s solid financial performance in the first quarter. Our total revenue reached RMB 3.58 billion this quarter, more than four times that of the first quarter of 2020 and 11.2% above our upper end of guidance; meanwhile, our gross margin remained strong at 17.3%. Despite our continued efforts to increase investment in R&D and our direct-sales service network, operating expenses rose 27.5% quarter-over-quarter and 238.6% year-over-year. Through the successful issuance of convertible preferred bonds, we raised over USD 840 million, laying a solid capital foundation for us to further invest in cutting-edge technology R&D, launch new models, and meet growing demand.'

Performance Outlook：

For the second quarter of 2021, the company anticipates:

Vehicle deliveries are projected to range between 14,500 and 15,500 units, reflecting an increase of approximately 119.6% to 134.7% compared with the second quarter of 2020.

Total revenue is expected to fall between CNY 3.99 billion (USD 609 million) and CNY 4.27 billion (USD 651.7 million), representing growth of approximately 104.6% to 119.0% compared to the second quarter of 2020.

This business forecast reflects the company's current and preliminary perspectives on its operations and market conditions, which are subject to change.

(This article is a summary of key information from the financial report. For complete details, please refer to the original English financial report published on Li Auto's Investor Relations website.)

About Li Auto：

Li Auto is an innovator in China’s new-energy vehicle market. The company designs, develops, manufactures, and sells premium intelligent electric SUVs, delivering safe, convenient, and refined products and services to family users through innovation in products, technology, and business models. Li Auto was the first company in China to successfully commercialize range-extended electric vehicles. Its inaugural product, the Li Auto ONE, is a six-seat mid-to-large-sized SUV equipped with a range-extending power generation system and cutting-edge intelligent automotive solutions. Mass production of the Li Auto ONE commenced in November 2019, and as of April 2021, over 50,000 units had been delivered. Through independent research and development, the company creates value for users by focusing on the advancement of range-extended electric technology, next-generation all-electric technology, and intelligent automotive solutions. In addition to the Li Auto ONE, the company plans to expand its product lineup and broaden its user base in the future by introducing more all-new range-extended and all-electric models.

　　Disclaimer

This article contains content related to publicly listed companies and reflects the author's personal analysis and judgments based on information disclosed by these companies in accordance with their statutory obligations—including, but not limited to, interim announcements, periodic reports, and official investor relations platforms. The information or opinions contained herein do not constitute investment or other business advice, and Market Value Watch assumes no liability for any actions taken based on reliance on this article.

　　——END——

885 Views