Li Auto Inc 6-K, filed May 10, 2022
Li Auto Inc. (LI)
About this 6-K
Li Auto Inc filed this 6-K on May 10, 2022.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2022
Commission File Number: 001-39407
Li Auto Inc.
(Registrant’s Name)
11 Wenliang Street
Shunyi District, Beijing 101399
People’s Republic of China
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o ****
EXPLANATORY NOTE
We submitted a monthly return form dated May 9, 2022 with The Stock Exchange of Hong Kong Limited in relation to the movements in our authorized share capital and issued shares in April 2022. For details, please refer to Exhibit 99.1 to this current report on Form 6-K.
EXHIBIT INDEX
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Li Auto Inc. | |
|---|---|
| By | /s/ Tie Li |
| Name: | Tie Li |
| Title: | Director and Chief Financial Officer |
Date: May 10, 2022
Exhibit 99.1
| FF301<br>v Page 1 of 8 1.0.1<br>Monthly Return for Equity Issuer and Hong Kong Depositary Receipts listed under Chapter 19B of the Exchange Listing Rules on Movements in<br>Securities<br>For the month ended: 30 April 2022 Status: New Submission<br>To : Hong Kong Exchanges and Clearing Limited<br>Name of Issuer: Li Auto Inc.<br>Date Submitted: 09 May 2022<br>I. Movements in Authorised / Registered Share Capital<br>1. Type of shares WVR ordinary shares Class of shares Class A Listed on SEHK (Note 1) Yes<br>Stock code 02015 Description<br>Number of authorised/registered shares Par value Authorised/registered share capital<br>Balance at close of preceding month 4,500,000,000 USD 0.0001 USD 450,000<br>Increase / decrease (-) USD<br>Balance at close of the month 4,500,000,000 USD 0.0001 USD 450,000<br>2. Type of shares WVR ordinary shares Class of shares Class B Listed on SEHK (Note 1) No<br>Stock code 02015 Description<br>Number of authorised/registered shares Par value Authorised/registered share capital<br>Balance at close of preceding month 500,000,000 USD 0.0001 USD 50,000<br>Increase / decrease (-) USD<br>Balance at close of the month 500,000,000 USD 0.0001 USD 50,000<br>Total authorised/registered share capital at the end of the month: USD 500,000 |
|---|
| FF301<br>v Page 2 of 8 1.0.1<br>II. Movements in Issued Shares<br>1. Type of shares WVR ordinary shares Class of shares Class A Listed on SEHK (Note 1) Yes<br>Stock code 02015 Description<br>Balance at close of preceding month 1,709,903,330<br>Increase / decrease (-) 0<br>Balance at close of the month 1,709,903,330<br>2. Type of shares WVR ordinary shares Class of shares Class B Listed on SEHK (Note 1) No<br>Stock code 02015 Description<br>Balance at close of preceding month 355,812,080<br>Increase / decrease (-) 0<br>Balance at close of the month 355,812,080 |
| --- |
| FF301<br>v Page 3 of 8 1.0.1<br>III. Details of Movements in Issued Shares<br>(A). Share Options (under Share Option Schemes of the Issuer)<br>1. Type of shares issuable WVR ordinary shares Class of shares Class A Shares issuable to be listed on SEHK (Note 1) Yes<br>Stock code of shares issuable (if listed on SEHK) (Note 1) 02015<br>Particulars of share option<br>scheme<br>Number of share<br>options outstanding at<br>close of preceding<br>month<br>Movement during the month<br>Number of share options<br>outstanding at close of<br>the month<br>No. of new shares of<br>issuer issued during the<br>month pursuant thereto<br>(A)<br>No. of new shares of<br>issuer which may be<br>issued pursuant thereto<br>as at close of the month<br>The total number of<br>securities which may be<br>issued upon exercise of<br>all share options to be<br>granted under the<br>scheme at close of the<br>month<br>1). 2019 Plan (Share<br>incentive plan adopted<br>on 2/7/2019 as<br>amended from time<br>to time)<br>49,267,698 Cancelled -102,800<br>Others -28,980<br>49,135,918 0 49,135,918 66,913,000<br>General Meeting approval<br>date (if applicable)<br>2). 2020 Plan (Share<br>incentive plan adopted<br>on 9/7/2020 as<br>amended from time to<br>time)<br>33,169,554 Cancelled -934,200<br>Others -24,900<br>32,210,454 0 32,210,454 102,690,000<br>General Meeting approval<br>date (if applicable)<br>Total A (WVR ordinary shares Class A): 0<br>Total funds raised during the month from exercise of options: USD 5,388<br>Remarks:<br>1) Others: -28,980 refers to 28,980 options being exercised. The exercise of 28,980 options was settled using the Class A Ordinary Shares issued to the Depositary for bulk issuance of ADSs<br>reserved for further issuances upon the exercise or vesting of awards granted under 2019 Share Incentive Plan.<br>2) Others: -24,900 refers to 24,900 options being exercised. The exercise of 24,900 options was settled using the Class A Ordinary Shares issued to the Depositary for bulk issuance of ADSs<br>reserved for further issuances upon the exercise or vesting of awards granted under 2020 Share Incentive Plan.<br>(B). Warrants to Issue Shares of the Issuer which are to be Listed Not applicable |
| --- |
| FF301<br>v Page 4 of 8 1.0.1<br>(C). Convertibles (i.e. Convertible into Issue Shares of the Issuer which are to be Listed)<br>1. Type of shares issuable WVR ordinary shares Class of shares Class A Shares issuable to be listed on SEHK (Note 1) No<br>Stock code of shares issuable (if listed on SEHK) (Note 1)<br>Description of the Convertibles Currency Amount at close of<br>preceding month Movement during the month Amount at close of the<br>month<br>No. of new shares of<br>issuer issued during the<br>month pursuant thereto<br>(C)<br>No. of new shares of<br>issuer which may be<br>issued pursuant thereto<br>as at close of the month<br>1). 2028 Notes - convertible<br>senior notes<br>USD 862,500,000 862,500,000 0 60,861,104<br>Type of convertibles Bond/Notes<br>Stock code of the Convertibles<br>(if listed on SEHK) (Note 1)<br>Subscription/Conversion price USD 14.17<br>General Meeting approval date<br>(if applicable)<br>Total C (WVR ordinary shares Class A): 0<br>(D). Any other Agreements or Arrangements to Issue Shares of the Issuer which are to be listed, including Options (other than Share Options Schemes)<br>1. Type of shares issuable WVR ordinary shares Class of shares Class A Shares issuable to be listed on SEHK (Note 1) Yes<br>Stock code of shares issuable (if listed on SEHK) (Note 1) 02015<br>Description<br>General Meeting<br>approval date<br>(if applicable)<br>No. of new shares of issuer issued during<br>the month pursuant thereto (D)<br>No. of new shares of issuer which may be<br>issued pursuant thereto as at close of the<br>month<br>1). 2019 Plan - restricted shares (Share incentive plan adopted on 2/7/2019 as<br>amended from time to time) 0 0<br>2). 2019 Plan - restricted share unit (Share incentive plan adopted on 2/7/2019 as<br>amended from time to time) 0 0<br>3). 2020 Plan - restricted shares (Share incentive plan adopted on 9/7/2020 as<br>amended from time to time) 0 0<br>4). 2020 Plan - restricted share unit (Share incentive plan adopted on 9/7/2020 as<br>amended from time to time) 0 21,270,986 |
| --- |
| FF301<br>v Page 5 of 8 1.0.1<br>Total D (WVR ordinary shares Class A): 0<br>Remarks:<br>As of 30 April 2022, 21,270,986 shares of the issuer may be issued pursuant to the restricted share units granted under 2020 Plan.<br><br>405,000 restricted share units granted under 2020 Plan were cancelled during the month.<br>(E). Other Movements in Issued Share Not applicable<br>Total increase / decrease (-) in WVR ordinary shares Class A during the month (i.e. Total of A to E) 0<br>Total increase / decrease (-) in WVR ordinary shares Class A during the month (i.e. Total of A to E) 0 |
| --- |
| FF301<br>v Page 6 of 8 1.0.1<br>IV. Information about Hong Kong Depositary Receipt (HDR) Not applicable |
| --- |
| FF301<br>v Page 7 of 8 1.0.1<br>V. Confirmations<br>We hereby confirm to the best knowledge, information and belief that, in relation to each of the securities issued by the issuer during the month as set out in Part III and IV which has not been<br>previously disclosed in a return published under Main Board Rule 13.25A / GEM Rule 17.27A, it has been duly authorised by the board of directors of the listed issuer and, insofar as applicable:<br><br>(Note 2)<br><br>(i) all money due to the listed issuer in respect of the issue of securities has been received by it;<br><br>(ii) all pre-conditions for listing imposed by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited under "Qualifications of listing" have been fulfilled;<br><br>(iii) all (if any) conditions contained in the formal letter granting listing of and permission to deal in the securities have been fulfilled;<br><br>(iv) all the securities of each class are in all respects identical (Note 3);<br><br>(v) all documents required by the Companies (Winding Up and Miscellaneous Provisions) Ordinance to be filed with the Registrar of Companies have been duly filed and that compliance has<br> been made with other legal requirements;<br><br>(vi) all the definitive documents of title have been delivered/are ready to be delivered/are being prepared and will be delivered in accordance with the terms of issue;<br><br>(vii) completion has taken place of the purchase by the issuer of all property shown in the listing document to have been purchased or agreed to be purchased by it and the purchase<br> consideration for all such property has been duly satisfied; and<br><br>(viii) the trust deed/deed poll relating to the debenture, loan stock, notes or bonds has been completed and executed, and particulars thereof, if so required by law, have been filed with the<br> Registrar of Companies.<br>Submitted by: Wang Yang<br>Title: Joint Company Secretary<br>(Director, Secretary or other Duly Authorised Officer)<br>Notes<br>1. SEHK refers to Stock Exchange of Hong Kong.<br>2. Items (i) to (viii) are suggested forms of confirmation which may be amended to meet individual cases. Where the issuer has already made the relevant confirmations in a return<br>published under Main Board Rule 13.25A / GEM Rule 17.27A in relation to the securities issued, no further confirmation is required to be made in this return. |
| --- |
| FF301<br>v Page 8 of 8 1.0.1<br>3. “Identical” means in this context:<br>． the securities are of the same nominal value with the same amount called up or paid up;<br>． they are entitled to dividend/interest at the same rate and for the same period, so that at the next ensuing distribution, the dividend/interest payable per unit will amount to<br>exactly the same sum (gross and net); and<br>． they carry the same rights as to unrestricted transfer, attendance and voting at meetings and rank pari passu in all other respects.<br>4. If there is insufficient space, please submit additional document.<br>5. In the context of repurchase of shares:<br>． “shares issuable to be listed on SEHK” should be construed as “shares repurchased listed on SEHK”; and<br>． “stock code of shares issuable (if listed on SEHK)” should be construed as “stock code of shares repurchased (if listed on SEHK)”; and<br>． “type of shares issuable” should be construed as “type of shares repurchased”; and<br>． “issue and allotment date” should be construed as “cancellation date”<br>6. In the context of redemption of shares:<br>． “shares issuable to be listed on SEHK” should be construed as “shares redeemed listed on SEHK”; and<br>． “stock code of shares issuable (if listed on SEHK)” should be construed as “stock code of shares redeemed (if listed on SEHK)”; and<br>． “type of shares issuable” should be construed as “type of shares redeemed”; and<br>． “issue and allotment date” should be construed as “redemption date” |
| --- |
Exhibit 99.2
Li Auto Inc. Announces Unaudited First Quarter2022 Financial Results
Quarterly total revenues reached RMB9.56 billion (US$1.51 billion)^1^
Quarterly deliveries reached 31,716 vehicles
Quarterly gross margin reached 22.6%
BEIJING, China, May 10, 2022 — Li Auto Inc. ("Li Auto" or the "Company") (Nasdaq: LI; HKEX: 2015), a leader in China’s new energy vehicle market, today announced its unaudited financial results for the quarter ended March 31, 2022.
Operating Highlights for the First Quarter of 2022
| · | Deliveries of Li ONE were 31,716 vehicles in the first quarter of 2022, representing a 152.1% year-over-year<br>increase. | |||||||
|---|---|---|---|---|---|---|---|---|
| 2022 Q1 | 2021 Q4 | 2021 Q3 | 2021 Q2 | |||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Deliveries | 31,716 | 35,221 | 25,116 | 17,575 | ||||
| 2021 Q1 | 2020 Q4 | 2020 Q3 | 2020 Q2 | |||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Deliveries | 12,579 | 14,464 | 8,660 | 6,604 | ||||
| · | As of March 31, 2022, the Company had 217 retail stores covering 102 cities, as well as 287 servicing<br>centers and Li Auto-authorized body and paint shops operating in 211 cities. | |||||||
| --- | --- |
Financial Highlights for the First Quarter of 2022
| · | Vehicle sales were RMB9.31 billion (US$1.47 billion) in the first quarter of 2022, representing<br>an increase of 168.7% from RMB3.46 billion in the first quarter of 2021 and a decrease of 10.3% from RMB10.38 billion in the fourth quarter<br>of 2021. |
|---|---|
| · | Vehicle margin^2^ was 22.4% in the first quarter<br> of 2022, compared with 16.9% in the first quarter of 2021 and 22.3% in the fourth quarter<br> of 2021. |
| --- | --- |
| · | Total revenues were RMB9.56 billion (US$1.51 billion) in the first quarter of 2022, representing<br>an increase of 167.5% from RMB3.58 billion in the first quarter of 2021 and a decrease of 10.0% from RMB10.62 billion in the fourth quarter<br>of 2021. |
| --- | --- |
| · | Gross profit was RMB2.16 billion (US$341.3 million) in the first quarter of 2022, representing<br>an increase of 250.9% from RMB616.7 million in the first quarter of 2021 and a decrease of 9.1% from RMB2.38 billion in the fourth quarter<br>of 2021. |
| --- | --- |
| · | Gross margin was 22.6% in the first quarter of 2022, compared with 17.3% in the first quarter of<br>2021 and 22.4% in the fourth quarter of 2021. |
| --- | --- |
^1^ All translationsfrom Renminbi (“RMB”) to U.S. dollar (“US$”) are made at a rate of RMB6.3393 to US$1.00, the noon buying ratein effect on March 31, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board.
*^2^*Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of sales derived from vehicle sales only.
1
| · | Loss from operations was RMB413.1 million (US$65.2 million) in the first quarter of 2022,<br> compared with RMB407.7 million loss from operations in the first quarter of 2021 and RMB24.1<br> million income from operations in the fourth quarter of 2021. **Non-GAAP income from operations^3^**was RMB74.9 million (US$11.8 million) in the first quarter of 2022, compared<br> with RMB224.8 million non-GAAP loss from operations3<br> in the first quarter of 2021 and RMB415.0 million non-GAAP income from operations in the<br> fourth quarter of 2021. |
|---|---|
| · | Net loss was RMB10.9 million (US$1.7 million) in the first quarter of 2022, compared with<br> RMB360.0 million net loss in the first quarter of 2021 and RMB295.5 million net income in<br> the fourth quarter of 2021. Non-GAAP net income^3^<br> was RMB477.1 million (US$75.3 million) in the first quarter of 2022, compared with RMB177.0<br> million non-GAAP net loss^3^ in the first quarter of 2021 and RMB686.4 million non-GAAP<br> net income in the fourth quarter of 2021. |
| --- | --- |
| · | Operating cash flow was RMB1.83 billion (US$289.3 million) in the first quarter of 2022, representing<br>an increase of 98.0% from RMB926.3 million in the first quarter of 2021 and a decrease of 52.2% from RMB3.84 billion in the fourth quarter<br>of 2021. |
| --- | --- |
| · | Free cash flow^4^ was RMB502.0 million (US$79.2<br> million) in the first quarter of 2022, compared with RMB570.2 million in the first quarter<br> of 2021 and RMB1.62 billion in the fourth quarter of 2021. |
| --- | --- |
Key Financial Results
(in millions, except for percentages)
| For the Three Months Ended | % Change^5^ | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31,<br> <br>2021 | December 31, 2021 | March 31,<br> <br>2022 | YoY | QoQ | |||||||||||
| RMB | RMB | RMB | |||||||||||||
| Vehicle sales | 3,463.7 | 10,375.7 | 9,308.6 | 168.7 | % | (10.3 | )% | ||||||||
| Vehicle margin | 16.9 | % | 22.3 | % | 22.4 | % | 5.5 | % | 0.1 | % | |||||
| Total revenues | 3,575.2 | 10,620.5 | 9,562.0 | 167.5 | % | (10.0 | )% | ||||||||
| Gross profit | 616.7 | 2,380.0 | 2,163.9 | 250.9 | % | (9.1 | )% | ||||||||
| Gross margin | 17.3 | % | 22.4 | % | 22.6 | % | 5.3 | % | 0.2 | % | |||||
| (Loss)/Income from operations | (407.7 | ) | 24.1 | (413.1 | ) | 1.3 | % | N/A | |||||||
| Non-GAAP (loss)/income from operations | (224.8 | ) | 415.0 | 74.9 | N/A | (82.0 | )% | ||||||||
| Net (loss)/income | (360.0 | ) | 295.5 | (10.9 | ) | (97.0 | )% | N/A | |||||||
| Non-GAAP net (loss)/income | (177.0 | ) | 686.4 | 477.1 | N/A | (30.5 | )% | ||||||||
| Operating cash flow | 926.3 | 3,836.9 | 1,833.8 | 98.0 | % | (52.2 | )% | ||||||||
| Free cash flow | 570.2 | 1,615.4 | 502.0 | (12.0 | )% | (68.9 | )% |
^3^ The Company’snon-GAAP financial measures exclude share-based compensation expenses. See “Unaudited Reconciliation of GAAP and Non-GAAP Results”set forth at the end of this press release.
*^4^*Free cash flow represents operating cash flow less capital expenditures, which is considered a non-GAAP financial measure.
^5^**^Except for vehicle margin and gross margin, where absolute changes instead of percentage changes are presented.^
2
Recent Developments
Delivery Update
| · | In April 2022, the Company delivered 4,167 Li ONEs. As of April 30, 2022, the Company had 225 retail stores<br>covering 106 cities, in addition to 292 servicing centers and Li Auto-authorized body and paint shops operating in 211 cities. |
|---|
Inaugural Environmental, Social and Governance Report
| · | On<br> April 19, 2022, the Company published its 2021 Environmental, Social and Governance (ESG)<br> report (https://ir.lixiang.com/esg), highlighting the Company’s ESG initiatives<br> and achievements. |
|---|
Inclusion in the Shenzhen- and Shanghai-Hong Kong Stock ConnectPrograms
| · | The Company’s Class A ordinary shares, which are listed and traded on the Stock Exchange of Hong<br>Kong Limited, have been included in the Shenzhen- and Shanghai-Hong Kong Stock Connect programs, effective on March 14 and April 25, 2022,<br>respectively. |
|---|
CEO and CFO Comments
Mr. Xiang Li, founder, chairman, and chief executive officer of Li Auto, commented, “We sincerely appreciate our users’ consistent support, which, combined with our self-discipline for efficient operations, continued to drive robust financial performance in the first quarter of 2022 and ensured the scale and pace of our investments in research and development. While the recent pandemic resurgence and associated supply chain interruptions have been challenging for our industry, and uncertainty remains for the near future, we are confident in the resilience of our organization.”
“Despite recent pandemic-related bumps on the road, we are forging ahead with our plan to commence the deliveries of our second model, the L9, in the third quarter. The L9 is a flagship smart SUV for family users based on our new-generation EREV platform, offering best-in-class performance, safety, and intelligence. It features our fully self-developed range extension system, chassis control system, and central vehicle domain controller, which empower its flagship dynamic performance and drivability. Every L9 comes standard with our proprietary autonomous driving system, Li AD Max, capable of all-scenario Navigation on ADAS (NOA) for enhanced driving safety and convenience.”
Mr. Tie Li, chief financial officer of Li Auto, added, “Our solid performance in the first quarter of 2022 speaks to the enduring strength of our product. Driven by our strong vehicle deliveries despite the supply chain constraints facing the industry, we achieved revenues of RMB9.56 billion for the first quarter, up 167.5% year over year. Our vehicle margin in the first quarter remained healthy at 22.4%, and our cash flow from operations was positive for the eighth consecutive quarter at RMB1.83 billion. Amidst this volatile environment, we will continue to execute with discipline and further strengthen our financial flexibility and resilience, persevering through challenges while maintaining a steadfast commitment to innovation.”
3
Financial Results for the First Quarter of 2022
Revenues
| · | Total revenues were RMB9.56 billion (US$1.51 billion) in the first quarter of 2022, representing<br>an increase of 167.5% from RMB3.58 billion in the first quarter of 2021 and a decrease of 10.0% from RMB10.62 billion in the fourth quarter<br>of 2021. |
|---|---|
| · | Vehicle sales were RMB9.31 billion (US$1.47 billion) in the first quarter of 2022, representing<br>an increase of 168.7% from RMB3.46 billion in the first quarter of 2021 and a decrease of 10.3% from RMB10.38 billion in the fourth quarter<br>of 2021. The increase in revenue from vehicle sales over the first quarter of 2021 was mainly attributable to the increase in vehicle<br>deliveries in the first quarter of 2022. The decrease in revenue from vehicle sales over the fourth quarter of 2021 was mainly attributable<br>to the decrease in vehicle deliveries which were affected by seasonal factors related to the Chinese New Year holiday in the first quarter<br>of 2022. |
| --- | --- |
| · | Other sales and services were RMB253.4 million (US$40.0 million) in the first quarter of 2022,<br>representing an increase of 127.2% from RMB111.5 million in the first quarter of 2021 and an increase of 3.6% from RMB244.7 million in<br>the fourth quarter of 2021. The increase in revenue from other sales and services over the first quarter of 2021 was mainly attributable<br>to increased sales of charging stalls, accessories and services in line with higher accumulated vehicle sales. |
| --- | --- |
Cost of Sales and Gross Margin
| · | Cost of sales was RMB7.40 billion (US$1.17 billion) in the first quarter of 2022, representing<br>an increase of 150.1% from RMB2.96 billion in the first quarter of 2021 and a decrease of 10.2% from RMB8.24 billion in the fourth quarter<br>of 2021. The increase in cost of sales over the first quarter of 2021 was in line with revenue growth, mainly driven by the increase in<br>vehicle deliveries in the first quarter of 2022. The decrease in cost of sales over the fourth quarter of 2021 was mainly due to the decrease<br>in vehicle deliveries in the first quarter of 2022. |
|---|---|
| · | Gross profit was RMB2.16 billion (US$341.3 million) in the first quarter of 2022, representing<br>an increase of 250.9% from RMB616.7 million in the first quarter of 2021 and a decrease of 9.1% from RMB2.38 billion in the fourth quarter<br>of 2021. |
| --- | --- |
| · | Vehicle margin was 22.4% in the first quarter of 2022, compared with 16.9% in the first quarter<br>of 2021 and 22.3% in the fourth quarter of 2021. The increase in vehicle margin over the first quarter of 2021 was primarily driven by<br>higher average selling price attributable to the increase of vehicle deliveries of 2021 Li ONE since its release in May 2021. |
| --- | --- |
| · | Gross margin was 22.6% in the first quarter of 2022, compared with 17.3% in the first quarter of<br>2021 and 22.4% in the fourth quarter of 2021. |
| --- | --- |
4
Operating Expenses
| · | Operating expenses were RMB2.58 billion (US$406.5 million) in the first quarter of 2022, representing<br>an increase of 151.5% from RMB1.02 billion in the first quarter of 2021 and an increase of 9.4% from RMB2.36 billion in the fourth quarter<br>of 2021. |
|---|---|
| · | Research and development expenses were RMB1.37 billion (US$216.7 million) in the first quarter<br>of 2022, representing an increase of 167.0% from RMB514.5 million in the first quarter of 2021 and an increase of 11.7% from RMB1.23 billion<br>in the fourth quarter of 2021. The increase in research and development expenses over the first quarter of 2021 was primarily driven by<br>increased employee compensation as a result of our growing number of research and development staff as well as increased costs associated<br>with new product development. The increase in research and development expenses over the fourth quarter of 2021 was mainly driven by increased<br>employee compensation as a result of our growing number of research and development staff. |
| --- | --- |
| · | Selling, general and administrative expenses were RMB1.20 billion (US$189.8 million) in the first<br>quarter of 2022, representing an increase of 135.9% from RMB509.9 million in the first quarter of 2021 and an increase of 6.8% from RMB1.13<br>billion in the fourth quarter of 2021. The increase in selling, general and administrative expenses over the first quarter of 2021 was<br>primarily driven by increased employee compensation as a result of our growing number of staff, as well as increased marketing and promotional<br>activities and rental expenses associated with the expansion of the Company’s sales network. |
| --- | --- |
Loss/Income from Operations
| · | Loss from operations was RMB413.1 million (US$65.2 million) in the first quarter of 2022, compared<br>with RMB407.7 million loss from operations in the first quarter of 2021 and RMB24.1 million income from operations in the fourth quarter<br>of 2021. Non-GAAP income from operations was RMB74.9 million (US$11.8 million) in the first quarter of 2022, compared with RMB224.8<br>million non-GAAP loss from operations in the first quarter of 2021 and RMB415.0 million non-GAAP income from operations in the fourth<br>quarter of 2021. |
|---|
Net Loss/Income and Net Loss/Earnings Per Share
| · | Net loss was RMB10.9 million (US$1.7 million) in the first quarter of 2022, compared with RMB360.0<br>million net loss in the first quarter of 2021 and RMB295.5 million net income in the fourth quarter of 2021. Non-GAAP net income was<br>RMB477.1 million (US$75.3 million) in the first quarter of 2022, compared with RMB177.0 million non-GAAP net loss in the first quarter<br>of 2021 and RMB686.4 million non-GAAP net income in the fourth quarter of 2021. |
|---|
| · | Basic and diluted net loss per ADS^6^ attributable to ordinary shareholders were RMB0.01<br> (US$0.00) and RMB0.01 (US$0.00) in the first quarter of 2022, respectively. **Non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders^3^**were RMB0.49 (US$0.08) and RMB0.47 (US$0.07) in the first quarter of 2022,<br> respectively. |
|---|
Cash Position, Operating Cash Flow and Free Cash Flow
| · | Balance of cash and cash equivalents, restricted cash, time deposits and short-term investments was<br>RMB51.19 billion (US$8.07 billion) as of March 31, 2022. |
|---|---|
| · | Operating cash flow was RMB1.83 billion (US$289.3 million) in the first quarter of 2022, representing<br>an increase of 98.0% from RMB926.3 million in the first quarter of 2021 and a decrease of 52.2% from RMB3.84 billion in the fourth quarter<br>of 2021. |
| --- | --- |
| · | Free cash flow was RMB502.0 million (US$79.2 million) in the first quarter of 2022, compared with<br>RMB570.2 million in the first quarter of 2021 and RMB1.62 billion in the fourth quarter of 2021. |
| --- | --- |
^6^ Each ADS represents two Class A ordinary shares.
5
Business Outlook
For the second quarter of 2022, the Company expects:
| · | Deliveries of vehicles to be between 21,000 and 24,000 vehicles, representing an increase of 19.5%<br>to 36.6% from the second quarter of 2021. |
|---|---|
| · | Total revenues to be between RMB6.16 billion (US$972.3 million) and RMB7.04 billion (US$1.11 billion),<br>representing an increase of 22.3% to 39.8% from the second quarter of 2021. |
| --- | --- |
This business outlook reflects the Company’s current and preliminary view on the business situation and market condition, in particular, the encouraging signs of recovery from the resurging pandemic in the Yangtze Delta region, which are all subject to change due to uncertainties related to factors such as the pace of pandemic recovery, among others.
Conference Call
Management will hold a conference call at 8:00 a.m. U.S. Eastern Time on Tuesday, May 10, 2022 (8:00 p.m. Beijing Time on May 10, 2022) to discuss financial results and answer questions from investors and analysts.
For participants who wish to join the call, please complete online registration using the link provided below at least 20 minutes prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, Direct Event passcode, a unique registrant ID and an e-mail with detailed instructions to join the conference call.
Participant Online Registration: http://apac.directeventreg.com/registration/event/4179921
A replay of the conference call will be accessible through May 18, 2022, by dialing the following numbers:
| United States: | +1-855-452-5696 |
|---|---|
| Mainland China: | +86-400-820-9703 |
| Hong Kong, China: | +852-3051-2780 |
| International: | +61-2-8199-0299 |
| Conference ID: | 4179921 |
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.lixiang.com.
6
Non-GAAP Financial Measure
The Company uses non-GAAP measures, such as non-GAAP cost of sales, non-GAAP research and development expenses, non-GAAP selling, general and administrative expenses, non-GAAP income/loss from operations, non-GAAP net income/loss, non-GAAP net loss/income attributable to ordinary shareholders, non-GAAP basic and diluted net earnings/loss per ADS attributable to ordinary shareholders and free cash flow, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.
The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.
For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.
About Li Auto Inc.
Li Auto Inc. is a leader in China’s new energy vehicle market. The Company designs, develops, manufactures, and sells premium smart electric vehicles. Its mission is to create homes on the move that bring happiness to the entire family (“创造移动的家，创造幸福的家”). Through innovations in product, technology, and business model, the Company provides families with safe, convenient, and comfortable products and services. Li Auto is a pioneer to successfully commercialize extended-range electric vehicles in China. Its first model, Li ONE, is a six-seat, large premium smart electric SUV. The Company started volume production of Li ONE in November 2019 and released the 2021 Li ONE in May 2021. The Company leverages technology to create value for its users. It concentrates its in-house development efforts on its proprietary range extension system, next-generation electric vehicle technology, and smart vehicle solutions. Beyond Li ONE, the Company will expand its product line by developing new vehicles, including BEVs and EREVs, to target a broader consumer base.
For more information, please visit: http://ir.lixiang.com.
7
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Li Auto may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “HKEX”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about Li Auto’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Li Auto’s strategies, future business development, and financial condition and results of operations; Li Auto’s limited operating history; risks associated with extended-range electric vehicles, Li Auto’s ability to develop, manufacture, and deliver vehicles of high quality and appeal to customers; Li Auto’s ability to generate positive cash flow and profits; product defects or any other failure of vehicles to perform as expected; Li Auto’s ability to compete successfully; Li Auto’s ability to build its brand and withstand negative publicity; cancellation of orders for Li Auto’s vehicles; Li Auto’s ability to develop new vehicles; and changes in consumer demand and government incentives, subsidies, or other favorable government policies. Further information regarding these and other risks is included in Li Auto’s filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and Li Auto does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
Li Auto Inc.
Investor Relations
Email: ir@lixiang.com
The Piacente Group, Inc.
Yang Song
Tel: +86-10-6508-0677
Email: Li@tpg-ir.com
Brandi Piacente
Tel: +1-212-481-2050
Email: Li@tpg-ir.com
8
Li Auto Inc.
Unaudited Condensed Consolidated Statements of Comprehensive Loss
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
| For the Three Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2021 | December 31, 2021 | March 31, 2022 | March 31, 2022 | ||||||||
| RMB | RMB | RMB | US | ||||||||
| Revenues: | |||||||||||
| Vehicle sales | 3,463,673 | 10,375,716 | 9,308,609 | ||||||||
| Other sales and services | 111,528 | 244,736 | 253,427 | ||||||||
| Total revenues | 3,575,201 | 10,620,452 | 9,562,036 | ||||||||
| Cost of sales: | |||||||||||
| Vehicle sales | (2,878,994 | ) | (8,057,653 | ) | (7,219,912 | ) | ) | ||||
| Other sales and services | (79,474 | ) | (182,820 | ) | (178,269 | ) | ) | ||||
| Total cost of sales | (2,958,468 | ) | (8,240,473 | ) | (7,398,181 | ) | ) | ||||
| Gross profit | 616,733 | 2,379,979 | 2,163,855 | ||||||||
| Operating expenses: | |||||||||||
| Research and development | (514,500 | ) | (1,229,991 | ) | (1,373,962 | ) | ) | ||||
| Selling, general and administrative | (509,924 | ) | (1,125,885 | ) | (1,202,967 | ) | ) | ||||
| Total operating expenses | (1,024,424 | ) | (2,355,876 | ) | (2,576,929 | ) | ) | ||||
| (Loss)/Income from operations | (407,691 | ) | 24,103 | (413,074 | ) | ) | |||||
| Other (expense)/income: | |||||||||||
| Interest expense | (14,582 | ) | (9,685 | ) | (10,138 | ) | ) | ||||
| Interest income and investment income, net | 178,472 | 179,315 | 162,874 | ||||||||
| Others, net | (90,211 | ) | 89,037 | 279,703 | |||||||
| (Loss)/Income before income tax expense | (334,012 | ) | 282,770 | 19,365 | |||||||
| Income tax (expense)/benefit | (25,955 | ) | 12,741 | (30,231 | ) | ) | |||||
| Net (loss)/income | (359,967 | ) | 295,511 | (10,866 | ) | ) | |||||
| Net (loss)/income attributable to ordinary shareholders | (359,967 | ) | 295,511 | (10,866 | ) | ) | |||||
| Net (loss)/income | (359,967 | ) | 295,511 | (10,866 | ) | ) | |||||
| Other comprehensive income/(loss) | |||||||||||
| Foreign currency translation adjustment, net of nil tax | 107,644 | (372,067 | ) | (85,116 | ) | ) | |||||
| Total other comprehensive income/(loss) | 107,644 | (372,067 | ) | (85,116 | ) | ) | |||||
| Total comprehensive loss | (252,323 | ) | (76,556 | ) | (95,982 | ) | ) | ||||
| Comprehensive loss attributable to ordinary shareholders | (252,323 | ) | (76,556 | ) | (95,982 | ) | ) | ||||
| Weighted average number of ADSs | |||||||||||
| Basic | 904,696,628 | 962,726,533 | 964,870,446 | ||||||||
| Diluted | 904,696,628 | 1,027,358,848 | 964,870,446 | ||||||||
| Net (loss)/earnings per ADS attributable to ordinary shareholders | |||||||||||
| Basic | (0.40 | ) | 0.31 | (0.01 | ) | ) | |||||
| Diluted | (0.40 | ) | 0.29 | (0.01 | ) | ) | |||||
| Weighted average number of ordinary shares | |||||||||||
| Basic | 1,809,393,256 | 1,925,453,066 | 1,929,740,892 | ||||||||
| Diluted | 1,809,393,256 | 2,054,717,696 | 1,929,740,892 | ||||||||
| Net (loss)/earnings per share attributable to ordinary shareholders | |||||||||||
| Basic | (0.20 | ) | 0.15 | (0.01 | ) | ) | |||||
| Diluted | (0.20 | ) | 0.15 | (0.01 | ) | ) |
All values are in US Dollars.
9
Li Auto Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands)
| As of | |||||
|---|---|---|---|---|---|
| December 31, 2021 | March 31, 2022 | March 31, 2022 | |||
| RMB | RMB | US | |||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 27,854,224 | 32,055,546 | |||
| Restricted cash | 2,638,840 | 2,661,026 | |||
| Time deposits and short-term investments | 19,668,239 | 16,471,460 | |||
| Trade receivable | 120,541 | 140,747 | |||
| Inventories | 1,617,890 | 1,916,562 | |||
| Prepayments and other current assets | 480,680 | 1,091,652 | |||
| Total current assets | 52,380,414 | 54,336,993 | |||
| Non-current assets: | |||||
| Long-term investments | 156,306 | 301,685 | |||
| Property, plant and equipment, net | 4,498,269 | 5,098,372 | |||
| Operating lease right-of-use assets, net | 2,061,492 | 2,903,906 | |||
| Intangible assets, net | 751,460 | 765,464 | |||
| Deferred tax assets | 19,896 | 11,811 | |||
| Other non-current assets | 1,981,076 | 2,376,114 | |||
| Total non-current assets | 9,468,499 | 11,457,352 | |||
| Total assets | 61,848,913 | 65,794,345 | |||
| LIABILITIES AND EQUITY | |||||
| Current liabilities: | |||||
| Short-term borrowings | 37,042 | 136,744 | |||
| Trade and notes payable | 9,376,050 | 11,113,443 | |||
| Amounts due to related parties | 37,455 | 8,159 | |||
| Deferred revenue, current | 305,092 | 321,423 | |||
| Operating lease liabilities, current | 473,245 | 501,053 | |||
| Accruals and other current liabilities | 1,879,368 | 1,870,524 | |||
| Total current liabilities | 12,108,252 | 13,951,346 | |||
| Non-current liabilities: | |||||
| Long-term borrowings | 5,960,899 | 7,040,929 | |||
| Deferred revenue, non-current | 389,653 | 473,903 | |||
| Operating lease liabilities, non-current | 1,369,825 | 1,495,883 | |||
| Deferred tax liabilities | 153,723 | 142,042 | |||
| Other non-current liabilities | 802,259 | 1,233,480 | |||
| Total non-current liabilities | 8,676,359 | 10,386,237 | |||
| Total liabilities | 20,784,611 | 24,337,583 | |||
| Total shareholders’ equity | 41,064,302 | 41,456,762 | |||
| Total liabilities and shareholders’ equity | 61,848,913 | 65,794,345 |
All values are in US Dollars.
10
Li Auto Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(All amounts in thousands)
| For the Three Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31,<br> <br>2021 | December 31,<br> <br>2021 | March 31,<br> <br>2022 | March 31, 2022 | ||||||||
| RMB | RMB | RMB | US | ||||||||
| Net cash provided by operating activities | 926,343 | 3,836,898 | 1,833,769 | ||||||||
| Net cash (used in)/provided by investing activities | (2,892,396 | ) | (7,109,624 | ) | 1,564,251 | ||||||
| Net cash provided by financing activities | — | 165,030 | 902,991 | ||||||||
| Effect of exchange rate changes | (24,104 | ) | (360,431 | ) | (77,503 | ) | ) | ||||
| Net change in cash, cash equivalents and restricted cash | (1,990,157 | ) | (3,468,127 | ) | 4,223,508 | ||||||
| Cash, cash equivalents and restricted cash at beginning of period | 10,172,519 | 33,961,191 | 30,493,064 | ||||||||
| Cash, cash equivalents and restricted cash at end of period | 8,182,362 | 30,493,064 | 34,716,572 | ||||||||
| Net cash provided by operating activities | 926,343 | 3,836,898 | 1,833,769 | ||||||||
| Capital expenditures | (356,131 | ) | (2,221,529 | ) | (1,331,814 | ) | ) | ||||
| Free cash flow | 570,212 | 1,615,369 | 501,955 |
All values are in US Dollars.
11
Li Auto Inc.
Unaudited Reconciliation of GAAP and Non-GAAP Results
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
| For the Three Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31,<br> <br>2021 | December 31,<br> <br>2021 | March 31,<br> <br>2022 | March 31, 2022 | ||||||||
| RMB | RMB | RMB | US | ||||||||
| Cost of sales | (2,958,468 | ) | (8,240,473 | ) | (7,398,181 | ) | ) | ||||
| Shared-based compensation expenses | 6,209 | 8,185 | 10,665 | ||||||||
| Non-GAAP cost of sales | (2,952,259 | ) | (8,232,288 | ) | (7,387,516 | ) | ) | ||||
| Research and development expenses | (514,500 | ) | (1,229,991 | ) | (1,373,962 | ) | ) | ||||
| Shared-based compensation expenses | 116,609 | 270,065 | 324,532 | ||||||||
| Non-GAAP research and development expenses | (397,891 | ) | (959,926 | ) | (1,049,430 | ) | ) | ||||
| Selling, general and administrative expenses | (509,924 | ) | (1,125,885 | ) | (1,202,967 | ) | ) | ||||
| Shared-based compensation expenses | 60,110 | 112,606 | 152,754 | ||||||||
| Non-GAAP selling, general and administrative expenses | (449,814 | ) | (1,013,279 | ) | (1,050,213 | ) | ) | ||||
| (Loss)/Income from operations | (407,691 | ) | 24,103 | (413,074 | ) | ) | |||||
| Shared-based compensation expenses | 182,928 | 390,856 | 487,951 | ||||||||
| Non-GAAP (loss)/income from operations | (224,763 | ) | 414,959 | 74,877 | |||||||
| Net (loss)/income | (359,967 | ) | 295,511 | (10,866 | ) | ) | |||||
| Shared-based compensation expenses | 182,928 | 390,856 | 487,951 | ||||||||
| Non-GAAP net (loss)/income | (177,039 | ) | 686,367 | 477,085 | |||||||
| Net (loss)/income attributable to ordinary shareholders | (359,967 | ) | 295,511 | (10,866 | ) | ) | |||||
| Shared-based compensation expenses | 182,928 | 390,856 | 487,951 | ||||||||
| Non-GAAPnet (loss)/income attributable to ordinary shareholders | (177,039 | ) | 686,367 | 477,085 | |||||||
| Weighted average number of ADSs (Non-GAAP) | |||||||||||
| Basic | 904,696,628 | 962,726,533 | 964,870,446 | ||||||||
| Diluted | 904,696,628 | 1,027,358,848 | 1,035,309,021 | ||||||||
| Non-GAAP net (loss)/earnings per ADS attributable to ordinary shareholders | |||||||||||
| Basic | (0.20 | ) | 0.71 | 0.49 | |||||||
| Diluted | (0.20 | ) | 0.68 | 0.47 | |||||||
| Weighted average number of ordinary shares (Non-GAAP) | |||||||||||
| Basic | 1,809,393,256 | 1,925,453,066 | 1,929,740,892 | ||||||||
| Diluted | 1,809,393,256 | 2,054,717,696 | 2,070,618,042 | ||||||||
| Non-GAAP net (loss)/earnings<br> per share attributable to ordinary shareholders^7^ | |||||||||||
| Basic | (0.10 | ) | 0.36 | 0.25 | |||||||
| Diluted | (0.10 | ) | 0.34 | 0.23 |
All values are in US Dollars.
^7^ Non-GAAP basic net earnings/lossper share attributable to ordinary shareholders is calculated by dividing non-GAAP net income/loss attributable to ordinaryshareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net earnings/loss per share attributable to ordinary shareholders is calculated by dividing non-GAAP net income/loss attributable to ordinary shareholdersby the weighted average number of ordinary shares, dilutive potential ordinary shares outstanding during the periods, including the dilutiveeffects of convertible senior notes as determined under the if-converted method and the dilutive effect of share-based awards as determinedunder the treasury stock method.
12