LI AUTO(02015)2024-04-12 08:35Financial Performance - In 2023, the total revenue reached RMB 123.85 billion, representing a year-on-year increase of 173.5%[4] - The cumulative delivery volume for the year was 376,030 vehicles, a year-on-year growth of 182.2%[7] - The gross profit for 2023 was RMB 27.50 billion, reflecting a 212.8% increase compared to the previous year[4] - The net profit for 2023 was RMB 11.81 billion, a significant turnaround from a net loss of RMB 2.03 billion in 2022[4] - Vehicle sales accounted for RMB 120.29 billion in 2023, compared to RMB 44.11 billion in 2022, marking a growth of 172.5%[17] - Total revenue increased by 173.5% from RMB 45.29 billion in 2022 to RMB 123.85 billion in 2023[18] - Vehicle sales revenue rose by 172.7% from RMB 44.11 billion in 2022 to RMB 120.29 billion in 2023, driven by increased vehicle deliveries[18] - Gross profit increased by 212.8% from RMB 8.79 billion in 2022 to RMB 27.50 billion in 2023, with gross margin rising from 19.4% to 22.2%[20] - Operating profit for 2023 was RMB 7.41 billion, compared to an operating loss of RMB 3.65 billion in 2022[23] - Cash position increased by 75.1% from RMB 59.21 billion in 2022 to RMB 103.67 billion in 2023[27] Product Development and Launches - The company launched the flagship SUV models, Li L7 and Li L8, in February 2023, followed by the Li L9 Pro in August 2023[7] - The Li MEGA MPV was unveiled at the Guangzhou International Auto Show on November 17, 2023, showcasing advanced safety and electric technology[7] - The launch of the 2024 Li L series models aims to enhance product capabilities to better meet family user needs[15] - The launch of the Li MEGA, the first high-voltage pure electric model, was announced in March 2024, with a retail price of RMB 559,800[14] Market Position and Sales - The company established itself as the best-selling brand in the RMB 300,000 to 500,000 SUV segment in China[7] - The cumulative delivery volume for the Li L9, Li L8, and Li L7 models each surpassed 100,000 units, solidifying their market positions[7] - The company achieved the highest safety ratings for its vehicles, with the Li L9 receiving a five-star safety certification from C-NCAP[7] Research and Development - Research and development expenses in 2023 amounted to RMB 10.59 billion, which is 8.5% of total revenue[11] - Research and development investments have increased by 40%, focusing on electric vehicle technology and autonomous driving[87] Corporate Governance and Management - The company has adopted the corporate governance code as a baseline for its governance practices and has complied with all applicable provisions during the reporting period[94] - The company emphasizes high corporate governance standards to protect shareholder interests and enhance corporate value[93] - The board consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[97] - The company has established a remuneration committee to review the remuneration policy for directors and senior management, ensuring it reflects their qualifications and contributions[73] Financial Position and Liabilities - The company reported a total debt of RMB 82,892,249, which is a substantial increase from RMB 41,351,644 in the previous year[188] - The total liabilities increased from RMB 27,372,601 thousand in 2022 to RMB 72,742,709 thousand in 2023, indicating a significant rise in financial obligations[187] - The company’s long-term investments increased from RMB 1,484,491 thousand in 2022 to RMB 1,595,376 thousand in 2023, a growth of 7.5%[187] Shareholder Relations - The company encourages shareholders to participate in the annual general meeting or appoint representatives to vote on their behalf[136] - The company will provide reasonable information to shareholders to make informed decisions on proposed resolutions at the annual general meeting[136] - The company maintains effective communication with shareholders, particularly during annual general meetings, to enhance investor relations[133] Risks and Challenges - The company faces challenges as a new entrant in the pure electric vehicle market, with limited operational history and unproven capabilities in large-scale production[38] - The company continues to face risks associated with the supply chain, particularly with single-source suppliers for critical components[38] - The company is subject to evolving Chinese laws and regulations regarding data privacy and cybersecurity, which could impact its operations and reputation[39] Future Outlook - The company has set a future revenue guidance of 100 million in revenue over the next two quarters[85] - The company is expanding its market presence in Southeast Asia, aiming for a 30% market share by the end of 2024[86] Employee and Compensation - Employee compensation expenses totaled RMB 12.14 billion in 2023, up from RMB 7.43 billion in 2022[33] - The remuneration policy aims to ensure compensation is based on skills, knowledge, and responsibilities, with executive directors' pay linked to company performance and market conditions[75] Audit and Compliance - The independent auditor's report confirmed that the financial statements present a true and fair view of the company's financial performance and position[179] - The audit committee reviews the effectiveness of the company's risk management and internal control systems, including financial reporting and internal audit functions[123]