Li Auto's operating business is profitable, and it generated $1.3 billion in free cash flow in Q3.Chinese electric vehicle (EV) maker Li Auto (LI -12.87%) reported better-than-expected third-quarter results, but the stock was still down by 12.9% today, as of 1:05 p.m. ET. EV sales in China have been relatively strong recently, and Li's results reflect that. Third-quarter deliveries of nearly 153,000 vehicles represented a 45.4% jump versus the prior-year period. And Li reported earnings per share of $0.26, ...

Li Auto Inc. (NASDAQ:LI) Q3 2024 Earnings Conference Call October 31, 2024 8:00 AM ET Company Participants Janet Chang - Investor Relations Director Xiang Li - Chairman & Chief Executive Officer Johnny Tie Li - Chief Financial Officer James Liangjun Zou - Senior Vice President Conference Call Participants Tim Hsiao - Morgan Stanley Ben Wang - Deutsche Bank Tina Hou - Goldman Sachs Jin Zhong - CICC Ming-Hsun Lee - BofA Yuqian Ding - HSBC Xu Yingbo - CITIC Operator Hello, ladies and gentlemen. Thank you for s ...

Hello, ladies and gentlemen. Thank you for standing by for Li Auto's third quarter 2024 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 Zeng, Investor Relations Director of Li Auto. Please go ahead, Janet. Thank you, operator. Good evening and good morning, everyone. Welcome to Li Auto's third quarter 2024 earnings conference call. The company's financial and operating results w ...

Financial Performance - Total revenues for the third quarter of 2024 reached RMB42.9 billion (US$6.1 billion), representing a 23.6% increase year-over-year and a 35.3% increase quarter-over-quarter[6]. - Vehicle sales amounted to RMB41.3 billion (US$5.9 billion) in the third quarter of 2024, reflecting a 22.9% year-over-year increase and a 36.3% increase from the previous quarter[5]. - Quarterly deliveries reached 152,831 vehicles, marking a 45.4% year-over-year increase[3]. - Gross profit was RMB9.2 billion (US$1.3 billion), a 20.7% increase from RMB7.6 billion in the third quarter of 2023 and a 49.3% increase from RMB6.2 billion in the second quarter of 2024[6]. - Net income for the third quarter of 2024 was RMB2.8 billion (US$401.9 million), a slight increase of 0.3% year-over-year and a significant increase of 156.2% from RMB1.1 billion in the previous quarter[12]. - Operating cash flow was RMB11.0 billion (US$1.6 billion), compared to RMB14.5 billion in the third quarter of 2023 and RMB429.4 million used in the second quarter of 2024[14]. - The company achieved a cumulative milestone of one million vehicle deliveries on October 18, 2024, becoming the first emerging new energy automotive brand in China to reach this benchmark[20]. - Total revenues for Li Auto Inc. reached RMB 42,874,218 (approximately US$ 6,109,527) for the quarter ended September 30, 2024, representing a 23.7% increase compared to RMB 34,679,455 in the same quarter of the previous year[61]. - Vehicle sales contributed RMB 41,323,833 (approximately US$ 5,888,599) to total revenues, marking a significant increase from RMB 33,616,140 in the prior year, which is a growth of 22.5%[61]. - Gross profit for the quarter was RMB 9,224,673 (approximately US$ 1,314,505), up from RMB 7,644,484 in the same quarter last year, reflecting a gross margin improvement[61]. - Net income attributable to ordinary shareholders was RMB 2,814,262 (approximately US$ 401,030), slightly down from RMB 2,823,231 in the previous year, indicating a stable performance despite revenue growth[61]. - Free cash flow for the quarter was RMB 9,051,764 (approximately US$ 1,289,866), demonstrating strong operational cash generation despite significant capital expenditures[65]. - The company reported a total comprehensive income of RMB 2,677,979 (approximately US$ 381,610) for the quarter, down from RMB 2,845,229 in the previous year, primarily due to foreign currency translation adjustments[61]. - For the three months ended September 30, 2024, Li Auto reported a net income of RMB 2,820,490, a slight increase from RMB 2,812,874 for the same period in 2023[66]. - Non-GAAP net income for the same period was RMB 3,850,981, compared to RMB 3,467,273 in 2023, reflecting a growth of approximately 11%[66]. - The company’s income from operations for the three months ended September 30, 2024, was RMB 3,432,673, significantly up from RMB 2,339,378 in 2023, marking an increase of about 47%[66]. - The diluted non-GAAP net earnings per share attributable to ordinary shareholders for the three months ended September 30, 2024, was RMB 3.63, compared to RMB 3.29 in 2023, representing an increase of about 10%[66]. - The weighted average number of ADSs for the three months ended September 30, 2024, was 1,062,727,888, slightly up from 1,059,821,062 in 2023[66]. Expenses and Costs - Operating expenses were RMB5.8 billion (US$825.4 million), representing a 9.2% increase from RMB5.3 billion in the third quarter of 2023[7]. - Cost of sales was RMB33.6 billion (US$4.8 billion) in Q3 2024, up 24.5% year-over-year from RMB27.0 billion in Q3 2023[30]. - Operating expenses rose to RMB5.8 billion (US$825.4 million) in Q3 2024, a 9.2% increase from RMB5.3 billion in Q3 2023[34]. - Research and development expenses decreased to RMB2.6 billion (US$368.6 million) in Q3 2024, down 8.2% from RMB2.8 billion in Q3 2023[35]. - Selling, general and administrative expenses for the three months ended September 30, 2024, were RMB 3,359,640, an increase from RMB 2,543,770 in 2023, reflecting a rise of approximately 32%[66]. - Non-GAAP cost of sales for the three months ended September 30, 2024, was RMB 33,641,332, compared to RMB 27,024,309 in 2023, indicating an increase of about 24%[66]. - Share-based compensation expenses for the three months ended September 30, 2024, were RMB 1,030,491, up from RMB 654,399 in 2023, representing an increase of approximately 57%[66]. Future Projections - The company expects vehicle deliveries between 160,000 and 170,000 in Q4 2024, a year-over-year increase of 21.4% to 29.0%[47]. - Total revenues for Q4 2024 are projected to be between RMB43.2 billion (US$6.2 billion) and RMB45.9 billion (US$6.5 billion), reflecting a year-over-year increase of 3.5% to 10.0%[47]. Cash and Assets - Cash position was RMB106.5 billion (US$15.2 billion) as of September 30, 2024[41]. - Cash and cash equivalents decreased to RMB 77,588,229 (approximately US$ 11,056,234) as of September 30, 2024, compared to RMB 91,329,030 at the end of the previous year[63]. - Total assets increased to RMB 154,820,676 (approximately US$ 22,061,770) as of September 30, 2024, up from RMB 143,467,471 at the end of the previous year, indicating growth in the company's asset base[63].

Financial Performance - Total revenues for Q3 2024 reached RMB42.9 billion (US$6.1 billion), a 23.6% increase year-over-year and a 35.3% increase quarter-over-quarter[5][19] - Vehicle sales amounted to RMB41.3 billion (US$5.9 billion) in Q3 2024, representing a 22.9% year-over-year increase and a 36.3% increase from Q2 2024[4][20] - Quarterly deliveries reached 152,831 vehicles, marking a 45.4% year-over-year increase[2] - Gross profit for Q3 2024 was RMB9.2 billion (US$1.3 billion), a 20.7% increase from RMB7.6 billion in Q3 2023 and a 49.3% increase from RMB6.2 billion in Q2 2024[5][6] - Net income for Q3 2024 was RMB2.8 billion (US$401.9 million), a 0.3% increase year-over-year and a 156.2% increase from RMB1.1 billion in Q2 2024[8] - Non-GAAP net income for Q3 2024 was RMB3.9 billion (US$548.8 million), an 11.1% increase from RMB3.5 billion in Q3 2023[8] - Income from operations was RMB3.4 billion (US$489.2 million) in Q3 2024, a 46.7% increase from Q3 2023 and a 633.4% increase from Q2 2024[30] - Net income was RMB2.8 billion (US$401.9 million) in Q3 2024, a slight increase of 0.3% year-over-year and a 156.2% increase from Q2 2024[31] Cost and Expenses - Cost of sales increased to RMB33.6 billion (US$4.8 billion) in Q3 2024, up 24.5% year-over-year and 32.0% quarter-over-quarter[22] - Operating expenses were RMB5.8 billion (US$825.4 million) in Q3 2024, a 9.2% increase from RMB5.3 billion in Q3 2023[6] - Operating expenses were RMB5.8 billion (US$825.4 million) in Q3 2024, up 9.2% year-over-year and 1.5% quarter-over-quarter[26] - Research and development expenses for the quarter were RMB2,817,206, a decrease from RMB3,027,581 in the previous quarter[54] - Selling, general and administrative expenses amounted to RMB2,543,770, down from RMB2,815,105 in the previous quarter[54] Margins - The gross margin for Q3 2024 was 21.5%, compared to 22.0% in Q3 2023 and 19.5% in Q2 2024[6][11] - Vehicle margin was 20.9% in Q3 2024, slightly down from 21.2% in Q3 2023 but up from 18.7% in Q2 2024[24] - Gross profit reached RMB9.2 billion (US$1.3 billion) in Q3 2024, representing a 20.7% increase from Q3 2023 and a 49.3% increase from Q2 2024[23] Cash Flow and Position - Operating cash flow was RMB11.0 billion (US$1.6 billion) in Q3 2024, compared to RMB14.5 billion in Q3 2023 and RMB429.4 million used in Q2 2024[10] - Cash position was RMB106.5 billion (US$15.2 billion) as of September 30, 2024[33] - Free cash flow for the three months ended September 30, 2024, was RMB9,051,764, a decrease from RMB13,224,773 in the same period last year[52] - Cash and cash equivalents as of September 30, 2024, totaled RMB77,588,229, a decrease from RMB91,329,030 as of December 31, 2023[51] Future Projections - For Q4 2024, the company expects vehicle deliveries between 160,000 and 170,000, a year-over-year increase of 21.4% to 29.0%[37] - Total revenues for Q4 2024 are projected to be between RMB43.2 billion (US$6.2 billion) and RMB45.9 billion (US$6.5 billion), reflecting a year-over-year increase of 3.5% to 10.0%[37] Milestones - The company achieved a cumulative milestone of one million vehicle deliveries by October 18, 2024, becoming the first emerging new energy automotive brand in China to reach this benchmark[13] Assets and Liabilities - Total assets as of September 30, 2024, were RMB154,820,676, compared to RMB143,467,471 as of December 31, 2023, representing an increase of approximately 7.5%[51] - Total liabilities as of September 30, 2024, were RMB87,790,174, compared to RMB82,892,249 as of December 31, 2023, reflecting an increase of about 5.4%[51] Earnings Per Share - The diluted non-GAAP net earnings per ADS attributable to ordinary shareholders was RMB3.29, compared to RMB1.42 in the same quarter last year[54] - The company’s basic non-GAAP net earnings per share was RMB1.76, compared to RMB0.76 in the same quarter last year[54]

The Chinese EV maker looks undervalued relative to its growth potential.Li Auto (LI 1.83%), a leading manufacturer of plug-in hybrid electric vehicles (PHEVs) in China, went public at $11.50 per American depositary share (ADS) on July 30, 2020. Its stock more than quadrupled to a record high of $46.65 on Aug. 7, 2023. At the time, it was dazzling the market with its soaring PHEV deliveries and the launch of its first battery-powered electric vehicle (EV).But today, Li's stock trades at $27. The bulls retrea ...

Quarterly total revenues reached RMB42.9 billion (US$6.1 billion)1 Quarterly deliveries reached 152,831 vehicles BEIJING, China, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Li Auto Inc. ("Li Auto" or the "Company") (Nasdaq: LI; HKEX: 2015), a leader in China's new energy vehicle market, today announced its unaudited financial results for the quarter ended September 30, 2024. Operating Highlights for the Third Quarter of 2024 Total deliveries for the third quarter of 2024 were 152,831 vehicles, representing a 45.4% ye ...

Investors looking for stocks in the Automotive - Foreign sector might want to consider either Toyota Motor Corporation (TM) or Li Auto Inc. Sponsored ADR (LI) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank fav ...

Company Performance - Li Auto Inc. Sponsored ADR (LI) closed at $25.26, with a slight increase of +0.04% from the previous day, outperforming the S&P 500's daily loss of 0.18% [1] - Over the past month, shares of Li Auto have gained 17.22%, significantly surpassing the Auto-Tires-Trucks sector's loss of 4.37% and the S&P 500's gain of 4.46% [1] - The upcoming earnings report is highly anticipated by the investment community [1] Earnings Estimates - The Zacks Consensus Estimates project earnings of $1.39 per share and revenue of $20.11 billion for the annual period, reflecting changes of -13.66% and +16.13% respectively from the previous year [1] - Recent changes to analyst estimates indicate evolving short-term business trends, with upward revisions suggesting analysts' positive outlook on the company's operations [2] Valuation Metrics - Li Auto's Forward P/E ratio stands at 18.17, indicating it is trading at a premium compared to the industry average Forward P/E of 6.74 [3] - The company has a PEG ratio of 3.86, while the Automotive - Foreign industry average PEG ratio is 0.75, suggesting a higher valuation relative to expected earnings growth [3] Industry Ranking - The Automotive - Foreign industry, which includes Li Auto, ranks in the bottom 25% of all industries, with a Zacks Industry Rank of 190 [3] - The Zacks Industry Rank measures the strength of industry groups, showing that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]

BEIJING, China, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq: LI; HKEX: 2015), a leader in China’s new energy vehicle market, today announced that it will report its unaudited financial results for the third quarter of 2024 before the U.S. market opens on Thursday, October 31, 2024. The Company’s management will hold an earnings conference call on Thursday, October 31, 2024, at 8:00 A.M. U.S. Eastern Time or 8:00 P.M. Beijing/Hong Kong Time on the same day. For partici ...