Shanghai (Gasgoo)- Li Auto Inc. ("Li Auto" or the "Company"), a prominent player in China's new energy vehicle sector, announced on Wednesday its unaudited financial results for the second quarter of 2024 (Q2 2024). The company reported total revenues of RMB31.7 billion (US$4.4 billion) for this period, marking a 10.6% increase year-on-year (YoY) and a 23.6% rise quarter-on-quarter (QoQ).
Vehicle sales were a significant driver of revenue, totaling RMB30.3 billion (US$4.2 billion) for Q2 2024. This represents an 8.4% increase from the year-ago period and a 25% growth from the previous quarter. The YoY revenue growth was primarily due to higher vehicle deliveries, although this was partially offset by a lower average selling price attributed to shifts in product mix and pricing strategies. The QoQ growth in revenue was similarly driven by increased vehicle deliveries but was tempered by lower average selling prices.
The company delivered 108,581 vehicles in Q2 2024, reflecting a robust 25.5% jump compared to the same period last year.
Gross profit for Q2 2024 stood at RMB6.2 billion (US$850 million), nearly unchanged from the same period in 2023 but up 16.9% from the previous quarter. The gross margin for the quarter was 19.5%, a decrease from 21.8% in Q2 2023 and from 20.6% in the first quarter (Q1) of 2024, mainly due to a lower vehicle margin.
The vehicle margin in Q2 this year declined to 18.7% from 21% in Q2 2023 and 19.3% in Q1 2024, influenced by changes in product mix and pricing strategies, despite some cost reductions.
Li Auto's net income for Q2 2024 was RMB1.1 billion (US$151.5 million), a 52.3% YoY plunge but an 86.2% QoQ spike. Non-GAAP net income was RMB1.5 billion (US$206.8 million) in this quarter, down 44.9% from a year ago but up 17.8% from a quarter ago.
R&D expenses reached RMB3 billion (US$416.6 million) in Q2 2024, a 24.8% jump over the year-ago period and a slight decrease of 0.7% over the previous quarter. The YoY increase was mainly due to higher costs associated with expanding product portfolios and technology development, as well as increased employee compensation. The QoQ decrease was attributed to reduced employee compensation costs, partially offset by increased spending on product and technology expansion.
Looking ahead to the third quarter of 2024, Li Auto expects vehicle deliveries to range between 145,000 units and 155,000 units, representing a YoY leap of 38% to 47.5%. Total revenue is anticipated to be between RMB39.4 billion (US$5.4 billion) and RMB42.2 billion (US$5.8 billion), reflecting a growth rate of 13.7% to 21.6% compared to the prior-year period.
