LI AUTO(02015)2023-04-21 10:19Financial Performance - Total revenue for 2022 reached RMB 45.29 billion, a year-on-year increase of 67.7%[5] - Total deliveries in 2022 amounted to 133,246 vehicles, representing a growth of 47.2% compared to the previous year[8] - The company reported a net loss of RMB 2.03 billion for 2022, which is a significant increase from the net loss of RMB 321.5 million in 2021[5] - The gross profit for 2022 was RMB 8.79 billion, reflecting a 52.6% increase from RMB 5.76 billion in 2021[5] - The operating loss for 2022 was RMB 3.65 billion, compared to an operating loss of RMB 1.02 billion in 2021, marking a 259.3% increase[5] - Non-GAAP net profit for 2022 was RMB 20.82 million, a drastic decline of 97.3% from RMB 779.9 million in 2021[5] - Vehicle sales revenue rose by 68.8% from RMB 26.13 billion in 2021 to RMB 44.11 billion in 2022, driven by increased vehicle deliveries and higher average selling prices[20] - Gross profit increased by 52.6% from RMB 5.76 billion in 2021 to RMB 8.79 billion in 2022, with a gross margin decline from 21.3% to 19.4%[22] Research and Development - The company's R&D expenditure accounted for 15.0% of total revenue in 2022, with a workforce of 4,838 dedicated to research and development[13] - R&D expenses surged by 106.3% from RMB 3.29 billion in 2021 to RMB 6.78 billion in 2022, attributed to increased employee compensation and new vehicle and technology development[23] - The company has made significant advancements in its intelligent driving technology, including the development of a hybrid BEV algorithm framework in collaboration with Tsinghua University and MIT[13] Market Position and Product Launches - The launch of the flagship six-seat SUV, Li Auto L9, occurred on June 21, 2022, followed by the release of the Li Auto L8 on September 30, 2022[8] - The company maintained its leading position in the full-size SUV market in China throughout 2022[8] - The launch of the Li L7 and Li L8 Air models aims to capture more market share in the family SUV segment in 2023[18] Manufacturing and Capacity Expansion - The company has expanded its manufacturing capacity with a new facility in Beijing, enhancing its production capabilities[12] - The company plans to expand its sales network and enhance high-voltage fast charging infrastructure in 2023[18] Financial Position and Liabilities - As of December 31, 2022, the company's cash and cash equivalents, restricted cash, time deposits, and short-term investments increased by 16.5% to RMB 58.45 billion from RMB 50.16 billion as of December 31, 2021[30] - The company's debt-to-asset ratio as of December 31, 2022, was 47.8%, up from 33.6% as of December 31, 2021[34] - The company's total liabilities increased significantly from RMB 12,108,252 thousand in 2021 to RMB 27,372,601 thousand in 2022, reflecting a growth of approximately 126.25%[175] - The company's total equity reached RMB 45,186,307 in 2022, compared to RMB 41,064,302 in 2021, indicating growth in shareholder value[176] Shareholder and Governance - The company has a strong focus on corporate governance, with independent directors like Mr. Zhao Hongqiang and Mr. Jiang Zhenyu, who have extensive backgrounds in finance and law[82][83] - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[88] - The independent non-executive directors confirmed their independence in accordance with the Listing Rules, ensuring compliance with governance standards[96] Risks and Regulatory Environment - The company faces risks related to currency exchange rates, particularly with the fluctuation of the RMB against the USD, which could adversely affect its operations[35] - The company is subject to foreign investment restrictions in its consolidated affiliated entities, which may pose significant risks[46] - The variable interest entity structure may face risks due to restrictions on foreign investment in specific business sectors under Chinese law, potentially impacting the company's operations[198] Share Issuance and Capital Raising - The company initiated an ATM issuance plan in June 2022, raising approximately $366.5 million, with 45.3% of the net proceeds allocated for R&D of next-generation electric vehicle technologies[15] - The company raised a total of $366.5 million from the sale of 9,431,282 American Depositary Shares (ADS), corresponding to 18,862,564 Class A ordinary shares, at an average net price of $38.86 per ADS[64] Employee and Management Structure - The company employed a total of 19,396 employees as of December 31, 2022, with 4,838 in R&D, 4,318 in production, 9,199 in sales and marketing, and 1,041 in general and administrative roles[37] - The management team includes Mr. Xie Yan, appointed as Chief Technology Officer in December 2022, with prior experience at Huawei and Alibaba[85] Inventory and Cash Flow - Inventory increased from RMB 1,617,890 thousand in 2021 to RMB 6,804,693 thousand in 2022, marking a substantial rise of around 320.36%[175] - The total cash and cash equivalents at the end of 2022 amounted to RMB 40,418,158 thousand, up from RMB 30,493,064 thousand at the end of 2021, showing a significant increase of 32.5%[183] Corporate Social Responsibility - The company made charitable donations totaling RMB 5.7 million during the fiscal year ending December 31, 2022[65] - The company has received an "AA" rating from MSCI ESG Research for the second consecutive year, reflecting its commitment to sustainable development and governance[14]