Q2 2024 Li Auto Inc Earnings Call Transcript
Key Points
- Li Auto Inc (LI) achieved strong sales performance in Q2 2024, delivering over 108,000 vehicles, a 25.5% year-over-year increase.
- The company recorded total revenues of RMB31.7 billion, up 10.6% year over year, with a healthy gross margin of 19.5%.
- Li Auto Inc (LI) reached multiple delivery milestones, including surpassing 900,000 cumulative deliveries in August 2024.
- The company has made substantial progress in autonomous driving, with the rollout of HD-mapless NOA to over 240,000 users and high user engagement rates.
- Li Auto Inc (LI) continues to expand its sales and servicing network, with 487 retail stores and 411 servicing centers as of July 31, 2024.
- Vehicle margin in Q2 2024 was 18.7%, down from 21% in the same period last year, primarily due to different product mix and pricing strategy changes.
- Operating expenses increased by 23.9% year over year to RMB5.7 billion, impacting overall profitability.
- Net income in Q2 2024 was RMB1.1 billion, down 52.3% year over year, despite an 86.2% increase quarter over quarter.
- Free cash flow was negative RMB1.9 billion in Q2 2024, compared to positive RMB9.6 billion in the same period last year.
- The company faces ongoing competition from brands like Huawei, which could impact market share and sales growth.
Hello ladies and gentlemen. Thank you for standing by for Li Autoâs second quarter 2024 earnings conference call. (Operator Instructions) Todayâs conference call is being recorded. I will now turn the call over to your host, Ms. Janet Zhang, Investor Relations Director of Li Auto. Please go ahead, Janet.
Thank you, Carrie. Good evening and good morning, everyone! Welcome to Li Autoâs second quarter 2024 earnings conference call. The companyâs financial and operating results were published in a press release earlier today and were posted on the companyâs IR website.
On todayâs call, we will have our chairman and CEO, Mr. Xiang Li; and our CFO, Mr. Johnny Tie Li, begin with prepared remarks. Our President, Mr. Donghui Ma; and Senior Vice President, Mr. James Liangjun Zou, will join for the Q&A discussion.
Before we continue, please be reminded that todayâs discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation
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