Li Auto Inc. Reports First Quarter 2024 Financial Results
Li Auto Inc, (
LI) the Chinese electric vehicle company, has reported a sequential decline in revenue and net income in its first quarter of 2024. However, CEO Xiang Li took a positive tone in the earnings report, despite the sequential decline in revenue and net income in Q1.
The company's first quarter saw an increase in vehicle sales by 32.3% from RMB18.3 billion in Q1 2023 and a decrease of 39.9% from RMB40.4 billion in Q4. Vehicle margin was 19.3% in Q1, compared to 19.8% in Q2 2023 and 22.7% in Q4. Total revenues were RMB25.6 billion, an increase of 36.4% from RMB18.8 billion in Q1 2023 and a decrease of 38.6% from RMB41.7 billion in Q4. Gross profit was RMB5.3 billion, an increase of 38.0% from RMB3.8 billion in Q1 2023 and a decrease of 46.0% from RMB9.8 billion in Q4. Gross margin was 20.6% in Q2, compared to 20.4% in Q2 2023 and 23.5% in Q4. Operating expenses were RMB5.9 billion, an increase of 71.4% from RMB3.4 billion in Q1 2023 and 13.1% from RMB6.8 billion in Q4. Loss from operations was RMB584.9 million in Q1 2024, compared with RMB405.2 million income from operations in Q1 2023 and RMB3.0 billion income from operations in Q4 2023. Operating margin was negative 2.3% in Q1 2024.
Net income was RMB591.1 million, a decrease of 36.7% from RMB933.8 million in Q1 2023 and 89.7% from RMB5.8 billion in Q4 2023. Non-GAAP net income was RMB1.3 billion, a decrease of 9.7% from RMB1.4 billion in Q1 2023 and 72.2% from RMB4.6 billion in Q4 2023. Diluted net earnings per ADS attributable to ordinary shareholders was RMB0.56 (US$0.08) in Q1 2024, while non-GAAP diluted net earnings per ADS attributable to ordinary shareholders was RMB1.21 (US$0.17) in Q1 2024. Net cash used in operating activities was RMB3.3 billion in Q1 2024, compared to RMB7.8 billion in Q1 2023 and RMB17.3 billion in Q4 2023. Free cash flow was negative RMB5.1 billion in Q1 2024.
Li Auto has launched several new models, including the Li MEGA, Li L Series, and Li L6, which offer enhanced product strengths and improved safety features. The company also published its 2023 Environmental, Social, and Governance (ESG) report on April 12, 2024, outlining its efforts to integrate sustainability and sound governance into its corporate strategies and daily operations.
Technical Outlook
Li Auto (LI) is down 1% in pre-market trading. Since the second week of March 2024, the stock has been on a falling wedge pattern concurrently gliding reaching new support levels. LI stock is about to reach the 1-month low pivot a move that will accentuate the bearish thesis.
LI) the Chinese electric vehicle company, has reported a sequential decline in revenue and net income in its first quarter of 2024. However, CEO Xiang Li took a positive tone in the earnings report, despite the sequential decline in revenue and net income in Q1.The company's first quarter saw an increase in vehicle sales by 32.3% from RMB18.3 billion in Q1 2023 and a decrease of 39.9% from RMB40.4 billion in Q4. Vehicle margin was 19.3% in Q1, compared to 19.8% in Q2 2023 and 22.7% in Q4. Total revenues were RMB25.6 billion, an increase of 36.4% from RMB18.8 billion in Q1 2023 and a decrease of 38.6% from RMB41.7 billion in Q4. Gross profit was RMB5.3 billion, an increase of 38.0% from RMB3.8 billion in Q1 2023 and a decrease of 46.0% from RMB9.8 billion in Q4. Gross margin was 20.6% in Q2, compared to 20.4% in Q2 2023 and 23.5% in Q4. Operating expenses were RMB5.9 billion, an increase of 71.4% from RMB3.4 billion in Q1 2023 and 13.1% from RMB6.8 billion in Q4. Loss from operations was RMB584.9 million in Q1 2024, compared with RMB405.2 million income from operations in Q1 2023 and RMB3.0 billion income from operations in Q4 2023. Operating margin was negative 2.3% in Q1 2024.
Net income was RMB591.1 million, a decrease of 36.7% from RMB933.8 million in Q1 2023 and 89.7% from RMB5.8 billion in Q4 2023. Non-GAAP net income was RMB1.3 billion, a decrease of 9.7% from RMB1.4 billion in Q1 2023 and 72.2% from RMB4.6 billion in Q4 2023. Diluted net earnings per ADS attributable to ordinary shareholders was RMB0.56 (US$0.08) in Q1 2024, while non-GAAP diluted net earnings per ADS attributable to ordinary shareholders was RMB1.21 (US$0.17) in Q1 2024. Net cash used in operating activities was RMB3.3 billion in Q1 2024, compared to RMB7.8 billion in Q1 2023 and RMB17.3 billion in Q4 2023. Free cash flow was negative RMB5.1 billion in Q1 2024.
Li Auto has launched several new models, including the Li MEGA, Li L Series, and Li L6, which offer enhanced product strengths and improved safety features. The company also published its 2023 Environmental, Social, and Governance (ESG) report on April 12, 2024, outlining its efforts to integrate sustainability and sound governance into its corporate strategies and daily operations.
Technical Outlook
Li Auto (
LI) is down 1% in pre-market trading. Since the second week of March 2024, the stock has been on a falling wedge pattern concurrently gliding reaching new support levels. LI stock is about to reach the 1-month low pivot a move that will accentuate the bearish thesis.
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