Li Auto Inc 6-K, filed Dec 9, 2022
Li Auto Inc. (LI)
About this 6-K
Li Auto Inc filed this 6-K on December 9, 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 December 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 ¨
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): ¨
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): ¨
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: December 9, 2022
Exhibit 99.1
Li Auto Inc. Announces Management and Board Changes
BEIJING, China, December 9, 2022 — Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq: LI; HKEX: 2015), a leader in China’s new energy vehicle market, today announced that Mr. Yanan Shen, president and director, has tendered his resignation as the president and a director of the Company in order to devote more time to his personal affairs, effective on January 1, 2023. Mr. Shen will stay with the Company to support the Company’s continued efforts in the organizational upgrades to prepare for its future success.
In addition, the Company’s board of directors has promoted Mr. Donghui Ma, chief engineer, as the president and appointed him as a director of the Company, effective on January 1, 2023. Mr. Yan Xie, senior vice president, has been promoted as the chief technology officer, effective on December 12, 2022.
Mr. Xiang Li, founder, chairman, and chief executive officer of Li Auto, commented, “On behalf of our board and the management team, I would like to thank Yanan for his contribution to Li Auto since 2015. His sound judgment and leadership have been instrumental in our company’s growth from zero to one and the amazing delivery records that we have achieved, one after another, in the smart NEV market in China. Yanan has been my great partner over the years and will remain a lifetime friend whom I will always cherish and learn from. I am very grateful that before Yanan moves on to a different focus in life, he will continue to support our critical organizational upgrades so that we are ready for our ‘one-to-ten’ development. Meanwhile, we are also excited about the promotion of Donghui and Yan and look forward to working with them in their new capacities and taking Li Auto to new heights.”
“It has been a privilege to work alongside the right team and serve Li Auto during its founding and rapid development. I believe it’s now time to take a break and rethink how to create more value for my family and society” commented Mr. Yanan Shen, “The strong support and guidance from Xiang has helped me always strive further, for which I’m deeply grateful. Xiang has been my mentor in work and is also my most trusted friend in life. I also would like to thank Donghui, Yan, and our chief financial officer, Tie Li, for being there with me side-by-side through thick and thin, and to everyone at Li Auto for their support, hard work, and dedication. I firmly believe that Li Auto will be an ultimate winner among the global smart new energy automakers.” Mr. Shen concluded.
Mr. Donghui Ma has served as the Company’s chief engineer since September 2015. Mr. Ma worked as dean of research institute at SANY Heavy Vehicle Body Co., Ltd. since June 2011. Prior to that, Mr. Ma worked at IAT Automobile Technology Co., Ltd. and Jianshi International Automotive Design (Beijing) Co., Ltd. Mr. Ma received a bachelor’s degree in power engineering from Wuhan University of Technology in 1999 and a master’s degree in mechanical manufacturing and automation from Shanghai University in 2003.
Mr. Xie has served as the Company’s senior vice president since July 18, 2022. Mr. Xie has extensive work experience in the technology sector. Prior to joining the Company, Mr. Xie served as a vice president of software engineering at the consumer business group and the head of the device OS department at Huawei Technologies for three years, chief architect of AliOS system, and a general manager at Alibaba Group Holding Limited for five years, and worked at Intel Corporation for six years. Mr. Xie received a bachelor’s degree in information electrical engineering from Zhejiang University in 2001 and a master’s degree in computer engineering from the University of Delaware in 2003.
Mr. Shen has confirmed that his resignation does not result from any dispute or disagreement with the board of directors of the Company or the Company. Mr. Shen will also step down from his positions at the Company’s subsidiaries and consolidated affiliated entities, and his last day with the Company is expected to be around the end of June 2023 to ensure a smooth transition.
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: Create a Mobile Home, Create Happiness (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. The Company started volume production in November 2019. Its model lineup includes Li L9, a six-seat flagship family SUV, Li L8 and Li ONE, both of which are six-seat premium family SUVs, and Li L7, a five-seat flagship family SUV. 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 while expanding its product line by developing new BEVs and EREVs to target a broader user base.
For more information, please visit: https://ir.lixiang.com.
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
Exhibit 99.2
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
Li Auto Inc.
理 想 汽 車
(A company controlled through weighted voting rights and incorporated in the Cayman Islands with limited liability)
(Stock Code: 2015)
CHANGE OF DIRECTORS AND SENIOR MANAGEMENT
The Board hereby announces that:
| 1. | With effect from January 1, 2023, Mr. SHEN Yanan will resign as an executive Director and the President of the Company. |
| 2. | With effect from January 1, 2023, Mr. MA Donghui will be appointed as an executive Director and the President of the Company. |
| 3. | With effect from December 12, 2022, Mr. XIE Yan will be appointed as the chief technology officer of the Company. |
The board of directors (the “Board”) of Li Auto Inc. (the “Company”, together with its subsidiaries and consolidated affiliated entities the “Group”) hereby announces the below changes to the Board and the senior management of the Company.
RESIGNATION OF EXECUTIVE DIRECTOR AND PRESIDENT
The Board announces that Mr. SHEN Yanan (“Mr. Shen”) has tendered his resignation as an executive Director and the President of the Company with effect from January 1, 2023 in order to devote more time to his personal affairs. Mr. Shen will also step down from his other positions at the Group, and his last day with the Company is expected to be around the end of June 2023 to ensure a smooth transition. Mr. Shen has confirmed that he has no dispute or disagreement with the Board or the Company and there is no matter in respect of his resignation that needs to be brought to the attention of the shareholders of the Company (the “Shareholders”) or The Stock Exchange of Hong Kong Limited (the “Stock Exchange”).
The Board would like to take this opportunity to express its gratitude to Mr. Shen for his valuable contribution to the Company during his tenure of office.
APPOINTMENT OF EXECUTIVE DIRECTOR AND PRESIDENT
The Board is pleased to announce that Mr. MA Donghui (“Mr. Ma”) has been appointed as an executive Director and the President of the Company with effect from January 1, 2023.
1
The biographical details of Mr. Ma are set out below.
Mr. Ma, aged 48, has served as the Group’s chief engineer since September 2015. Mr. Ma worked as dean of research institute at SANY Heavy Vehicle Body Co., Ltd. since June 2011. Prior to that, Mr. Ma worked at IAT Automobile Technology Co., Ltd. and Jianshi International Automotive Design (Beijing) Co., Ltd. Mr. Ma received a bachelor’s degree in power engineering from Wuhan University of Technology in 1999 and a master’s degree in mechanical manufacturing and automation from Shanghai University in 2003.
Mr. Ma has entered into a service contract with the Company for a term of three years commencing from January 1, 2023, subject to retirement and re-election as and when required under the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”) and the Company’s articles of association. According to the terms of Mr. Ma’s appointment, Mr. Ma will not receive any remuneration in his capacity as an executive Director.
Save as disclosed above, as at the date of this announcement, Mr. Ma has confirmed that he does not hold (i) any other position with the Company or other members of the Group; (ii) any directorship in any other public companies with securities of which are listed on any securities market in Hong Kong or overseas in the last three years; and (iii) any other major appointments and professional qualifications.
As at the date of this announcement, Mr. Ma is interested in an aggregate of 9,000,000 class A ordinary shares of the Company underlying options granted to him by the Company pursuant to the Company’s share incentive plans adopted on July 2, 2019 and July 9, 2020. Save as disclosed above, as at the date of this announcement, Mr. Ma has also confirmed that he does not have any relationship with any Director, the senior management or substantial shareholder or controlling shareholders of the Company, or any other interest in the shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
Save as disclosed above, there is no other information that is required to be disclosed pursuant to any of the requirements under paragraphs (h) to (v) of Rule 13.51(2) of the Listing Rules nor are there other matters that need to be brought to the attention of the Shareholders or the Stock Exchange relating to Mr. Ma’s appointment.
The Board would like to express its warmest welcome to Mr. Ma on his appointment.
APPOINTMENT OF CHIEF TECHNOLOGY OFFICER
The Board is pleased to announce that Mr. XIE Yan (“Mr. Xie”), currently the Company’s senior vice president, has been appointed as the chief technology officer of the Company and a member of the Company’s senior management team with effect from December 12, 2022.
2
The biographical details of Mr. Xie are set out below.
Mr. Xie, aged 43, has served as the Company’s senior vice president since July 18, 2022. Mr. Xie has extensive work experience in the technology sector. Prior to joining the Company, Mr. Xie served as a vice president of software engineering at the consumer business group and the head of the device OS department at Huawei Technologies for three years, chief architect of AliOS system, and a general manager at Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988) for five years, and worked at Intel Corporation for six years. Mr. Xie received a bachelor’s degree in information electrical engineering from Zhejiang University in 2001 and a master’s degree in computer engineering from the University of Delaware in 2003.
| By order of the Board | |
| Li Auto Inc. | |
| Xiang Li | |
| Chairman |
Hong Kong, December 9, 2022
As of the date of this announcement, the board of directors of the Company comprises Mr. Xiang Li, Mr. Yanan Shen, and Mr. Tie Li as executive directors, Mr. Xing Wang and Mr. Zheng Fan as non-executive directors, and Mr. Hongqiang Zhao, Mr. Zhenyu Jiang, and Prof. Xing Xiao as independent non-executive directors.
3
Exhibit 99.3
Li Auto Inc. Announces Unaudited Third Quarter 2022 Financial Results
Quarterly total revenues reached RMB9.34 billion (US$1.31 billion)1
Quarterly deliveries reached 26,524 vehicles
BEIJING, China, December 9, 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 September 30, 2022.
Operating Highlights for the Third Quarter of 2022
| · | Total vehicle deliveries were 26,524 units in the third quarter of 2022, representing a 5.6% year-over-year increase. |
| Deliveries | 2022 Q3 | 2022 Q2 | 2022 Q1 | 2021 Q4 | ||||
| 26,524 | 28,687 | 31,716 | 35,221 | |||||
| Deliveries | 2021 Q3 | 2021 Q2 | 2021 Q1 | 2020 Q4 | ||||
| 25,116 | 17,575 | 12,579 | 14,464 |
| · | As of September 30, 2022, the Company had 271 retail stores covering 119 cities, as well as 316 servicing centers and Li Auto-authorized body and paint shops operating in 226 cities. |
Financial Highlights for the Third Quarter of 2022
| · | Vehicle sales were RMB9.05 billion (US$1.27 billion) in the third quarter of 2022, representing an increase of 22.5% from RMB7.39 billion in the third quarter of 2021 and an increase of 6.6% from RMB8.48 billion in the second quarter of 2022. |
| · | Vehicle margin2 was 12.0% in the third quarter of 2022, compared with 21.1% in the third quarter of 2021 and 21.2% in the second quarter of 2022. |
| · | Total revenues were RMB9.34 billion (US$1.31 billion) in the third quarter of 2022, representing an increase of 20.2% from RMB7.78 billion in the third quarter of 2021 and an increase of 7.0% from RMB8.73 billion in the second quarter of 2022. |
| · | Gross profit was RMB1.18 billion (US$166.2 million) in the third quarter of 2022, representing a decrease of 34.8% from RMB1.81 billion in the third quarter of 2021 and a decrease of 37.1% from RMB1.88 billion in the second quarter of 2022. |
| · | Gross margin was 12.7% in the third quarter of 2022, compared with 23.3% in the third quarter of 2021 and 21.5% in the second quarter of 2022. |
1 All translations from Renminbi (“RMB”) to U.S. dollar (“US$”) are made at a rate of RMB7.1135 to US$1.00, the noon buying rate in effect on September 30, 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 RMB2.13 billion (US$299.4 million) in the third quarter of 2022, compared with RMB97.8 million in the third quarter of 2021, and representing an increase of 117.6% from RMB978.5 million in the second quarter of 2022. Non-GAAP loss from operations3 was RMB1.72 billion (US$242.4 million) in the third quarter of 2022, compared with RMB259.4 million non-GAAP income from operations3 in the third quarter of 2021, and representing an increase of 231.1% from RMB520.8 million non-GAAP loss from operations in the second quarter of 2022. |
| · | Net loss was RMB1.65 billion (US$231.3 million) in the third quarter of 2022, compared with RMB21.5 million in the third quarter of 2021, and representing an increase of 156.7% from RMB641.0 million in the second quarter of 2022. Non-GAAP net loss3 was RMB1.24 billion (US$174.4 million) in the third quarter of 2022, compared with RMB335.7 million non-GAAP net income3 in the third quarter of 2021 and RMB183.4 million non-GAAP net loss in the second quarter of 2022. |
| · | Net cash used in operating activities was RMB508.3 million (US$71.5 million) in the third quarter of 2022, compared with RMB2.17 billion net cash provided by operating activities in the third quarter of 2021 and RMB1.13 billion net cash provided by operating activities in the second quarter of 2022. |
| · | Free cash flow4 was negative RMB1.96 billion (negative US$275.3 million) in the third quarter of 2022, compared with RMB1.16 billion free cash flow in the third quarter of 2021 and RMB451.7 million free cash flow in the second quarter of 2022. |
Key Financial Results
(in millions, except for percentages)
| For the Three Months Ended | % Change5 | |||||||||||||||||||
September 30, 2021 | June 30, 2022 | September 30, 2022 | YoY | QoQ | ||||||||||||||||
| RMB | RMB | RMB | ||||||||||||||||||
| Vehicle sales | 7,385.8 | 8,483.6 | 9,045.9 | 22.5 | % | 6.6 | % | |||||||||||||
| Vehicle margin | 21.1 | % | 21.2 | % | 12.0 | % | (9.1 | )% | (9.2 | )% | ||||||||||
| Total revenues | 7,775.2 | 8,732.6 | 9,342.3 | 20.2 | % | 7.0 | % | |||||||||||||
| Gross profit | 1,812.0 | 1,878.3 | 1,182.0 | (34.8 | )% | (37.1 | )% | |||||||||||||
| Gross margin | 23.3 | % | 21.5 | % | 12.7 | % | (10.6 | )% | (8.8 | )% | ||||||||||
| Loss from operations | (97.8 | ) | (978.5 | ) | (2,129.7 | ) | N/A | 117.6 | % | |||||||||||
| Non-GAAP income/(loss) from operations | 259.4 | (520.8 | ) | (1,724.4 | ) | N/A | 231.1 | % | ||||||||||||
| Net loss | (21.5 | ) | (641.0 | ) | (1,645.7 | ) | N/A | 156.7 | % | |||||||||||
| Non-GAAP net income/(loss) | 335.7 | (183.4 | ) | (1,240.4 | ) | N/A | N/A | |||||||||||||
| Operating cash flow | 2,169.5 | 1,129.4 | (508.3 | ) | N/A | N/A | ||||||||||||||
| Free cash flow | 1,165.0 | 451.7 | (1,958.6 | ) | N/A | N/A | ||||||||||||||
3 The Company’s non-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 October 2022, the Company delivered 10,052 vehicles, representing a 31.4% increase from October 2021. In November 2022, the Company delivered 15,034 vehicles, representing a 11.5% increase from November 2021. As of November 30, 2022, the Company had 276 retail stores covering 119 cities, in addition to 317 servicing centers and Li Auto-authorized body and paint shops operating in 226 cities. |
Li L8 and Li L7
| · | On September 30, 2022, the Company officially launched Li L8, a six-seat premium family SUV, and unveiled Li L7, a five-seat flagship family SUV. Both Li L8 and Li L7 employ the Company’s new-generation all-wheel drive range extension system and boast over 100 features in their standard configurations. Both models are available in two trims, Pro and Max, to provide users with flexible choices of smartness. The two trims are harnessed with Li AD Pro and Li AD Max autonomous driving systems, respectively. The former is powered by the Horizon Robotics Journey 5 chip with 128 TOPS of computing power, while the latter is powered by dual Orin-X chips with 508 TOPS of computing power. In addition, the two trims are equipped with innovative smart space systems, SS Pro and SS Max, featuring a first-row four-screen interactive system and a five-screen, three-dimensional interactive system, respectively. |
Safety Evaluation Results
| · | In November 2022, the China Insurance Automotive Safety Index (“C-IASI”) Management Center published the safety evaluation results for Li L9 based on crash tests. Li L9 achieved the G rating, the highest safety rating, in three out of four evaluation categories — occupant safety, pedestrian safety, and assistance safety. In the category of crashworthiness and repair economy, Li L9 received an M rating, one of the top results received by premium vehicles tested by C-IASI since 2017. Notably, Li L9 is the first domestic full-size SUV achieving the G rating in the crash tests of 25% frontal offset impact on both the driver and the passenger sides. |
Li Auto Power Semiconductor R&D and Manufacturing Base
| · | Construction of the Li Auto Power Semiconductor R&D and Manufacturing Base (the “Semiconductor Base”) commenced in the high-tech zone of Suzhou, Jiangsu province in the third quarter of 2022. The Semiconductor Base is being built by Suzhou Sike Semiconductor (苏州斯科半导体), a company established by Li Auto and Hunan Sanan Semiconductor (湖南三安半导体). It will focus on in-house research and development and production of automotive-grade power modules based on the third-generation semiconductor material, silicon carbide (SiC). The power module is a core component of the Company's self-developed 800-volt electric drive system. This marks a key milestone in the Company’s ongoing enhancement of its self-development capabilities and its extension along the value chain into next-generation high-voltage electric drive technology. |
ESG Performance
| · | In September 2022, the Company received an “AA” rating from MSCI ESG Research for the second consecutive year, one of the highest MSCI ESG ratings among automakers worldwide. It demonstrates the Company’s excellence in making positive environmental and social impacts through its sound governance structure and dedication to sustainable development. |
Inclusion in the Hang Seng China Enterprises Index
| · | The Company has been included as a constituent stock in the Hang Seng China Enterprises Index, effective December 5, 2022. This is a strong recognition of the Company’s strength and investment value. |
At-The-Market Offering
| · | On June 28, 2022, the Company announced an at-the-market offering program (the “ATM Offering”) to sell up to US$2,000,000,000 of American depositary shares (“ADSs”), each representing two Class A ordinary shares of the Company. |
As of the date of this press release, the Company has sold 9,431,282 ADSs representing 18,862,564 Class A ordinary shares of the Company under the ATM Offering, raising gross proceeds of US$366.5 million before deducting fees and commissions payable to the distribution agents of up to US$4.8 million and certain other offering expenses.
3
CEO and CFO Comments
Mr. Xiang Li, founder, chairman, and chief executive officer of Li Auto, commented, “Fueled by our comprehensive capabilities in R&D, supply chain, and intelligent manufacturing, we executed on our product roadmap and delivered another quarter with meaningful progress. Our Li L9 deliveries exceeded 10,000 in the first full month of its production despite the uncertain macro environment and supply chain disruptions. Li L9 has been the sales champion among full-size SUVs in China since its deliveries started. Such a strong performance demonstrated the wide recognition by family users and our team’s formidable execution capabilities. Meanwhile, we forged ahead with the launch of Li L8, the successor to Li ONE, and unveiled Li L7, a five-seat flagship family SUV.”
“To create successful products, we have two core goals. Firstly, for consumers, we choose to exceed their needs rather than merely meeting them. Secondly, as a company, we aim to achieve healthy gross margin and self-sustaining cash flow, which will allow us to continually invest in our dual growth engines of R&D and business capabilities. Specifically, our R&D efforts will be directed more comprehensively across products, platforms, and systems, with the long-term goal of growing into a world-class technology company. Our business capabilities include commercial, supply, and organization capabilities. With continued investments in R&D and business capabilities supported by our healthy gross margin, we will continue to pursue product and commercial success and foster a healthy long-term development model. This flywheel has been the strategic focus since our founding and, we believe, will remain our strategy going forward. By understanding this business model, you will understand Li Auto.”
Mr. Tie Li, chief financial officer of Li Auto, added, “In the third quarter, we navigated our model succession and launch cycle, as well as a challenging macro environment and cost inflation. Against this backdrop, our third quarter revenues came in at RMB9.34 billion, up 20.2% year over year. Our gross margin was 12.7% during the quarter, affected by a provision related to Li ONE, despite the healthy vehicle margin we achieved for Li L9 in its first quarter of production. Looking ahead, we are optimistic that with rapid production ramp-up, rigorous execution, and responsible cost management, we will realize greater economies of scale and further drive down costs, putting us back on track to hit our profitability inflection point. As always, we believe that our ability to deliver best-in-class products will keep Li Auto at the forefront of the NEV transformation.”
4
Financial Results for the Third Quarter of 2022
Revenues
| · | Total revenues were RMB9.34 billion (US$1.31 billion) in the third quarter of 2022, representing an increase of 20.2% from RMB7.78 billion in the third quarter of 2021 and an increase of 7.0% from RMB8.73 billion in the second quarter of 2022. |
| · | Vehicle sales were RMB9.05 billion (US$1.27 billion) in the third quarter of 2022, representing an increase of 22.5% from RMB7.39 billion in the third quarter of 2021 and an increase of 6.6% from RMB8.48 billion in the second quarter of 2022. The increase in revenue from vehicle sales over the third quarter of 2021 and the second quarter of 2022 was mainly attributable to higher average selling price due to our delivery of Li L9 starting in late August. |
| · | Other sales and services were RMB296.4 million (US$41.7 million) in the third quarter of 2022, representing a decrease of 23.9% from RMB389.4 million in the third quarter of 2021 and an increase of 19.0% from RMB249.0 million in the second quarter of 2022. The decrease in revenue from other sales and services over the third quarter of 2021 was attributable to the sales of automotive regulatory credits in the third quarter of 2021, which did not recur in the third quarter of 2022. The increase in revenue from other sales and services over the second quarter of 2022 was mainly attributable to increased sales of accessories and services in line with higher accumulated vehicle sales. |
Cost of Sales and Gross Margin
| · | Cost of sales was RMB8.16 billion (US$1.15 billion) in the third quarter of 2022, representing an increase of 36.8% from RMB5.96 billion in the third quarter of 2021 and an increase of 19.1% from RMB6.85 billion in the second quarter of 2022. The increase in cost of sales over both the third quarter of 2021 and the second quarter of 2022 was mainly attributable to higher average cost of sales due to our delivery of Li L9 starting in late August, and an inventory provision and losses on purchase commitments related to Li ONE as we lower our order forecast for Li ONE considering the stronger-than-expected market demands for Li L9 and our accelerated launch of Li L8. The inventory provision and losses on purchase commitments in the amount of RMB802.8 million (US$112.9 million) was made based on our updated order forecast of Li ONE after the launch of Li L9 and Li L8. |
| · | Gross profit was RMB1.18 billion (US$166.2 million) in the third quarter of 2022, representing a decrease of 34.8% from RMB1.81 billion in the third quarter of 2021 and a decrease of 37.1% from RMB1.88 billion in the second quarter of 2022. |
| · | Vehicle margin was 12.0% in the third quarter of 2022, compared with 21.1% in the third quarter of 2021 and 21.2% in the second quarter of 2022. The decrease in vehicle margin over both the third quarter of 2021 and the second quarter of 2022 was mainly attributable to the inventory provision and losses on purchase commitments related to Li ONE. Excluding the aforementioned impact, the vehicle margin was 20.8% in the third quarter of 2022. |
| · | Gross margin was 12.7% in the third quarter of 2022, compared with 23.3% in the third quarter of 2021 and 21.5% in the second quarter of 2022. The decrease in gross margin over the third quarter of 2021 and the second quarter of 2022 was mainly driven by the increase in cost of sales. |
5
Operating Expenses
| · | Operating expenses were RMB3.31 billion (US$465.6 million) in the third quarter of 2022, representing an increase of 73.4% from RMB1.91 billion in the third quarter of 2021 and an increase of 15.9% from RMB2.86 billion in the second quarter of 2022. |
| · | Research and development expenses were RMB1.80 billion (US$253.6 million) in the third quarter of 2022, representing an increase of 103.1% from RMB888.5 million in the third quarter of 2021 and an increase of 17.8% from RMB1.53 billion in the second quarter of 2022. The increase in research and development expenses over the third quarter of 2021 was primarily driven by increased expenses associated with new models to be introduced in the future as well as increased employee compensation as a result of our growing number of research and development staff. The increase in research and development expenses over the second quarter of 2022 was primarily driven by increased expenses associated with new models to be introduced in the future. |
| · | Selling, general and administrative expenses were RMB1.51 billion (US$211.9 million) in the third quarter of 2022, representing an increase of 47.6% from RMB1.02 billion in the third quarter of 2021 and an increase of 13.8% from RMB1.33 billion in the second quarter of 2022. The increase in selling, general and administrative expenses over the third quarter of 2021 was primarily driven by increased employee compensation as a result of our growing number of staff, as well as increased rental expenses associated with the expansion of the Company’s sales network. The increase in selling, general and administrative expenses over the second quarter of 2022 was primarily driven by increased marketing and promotional activities and increased employee compensation as a result of our growing number of staff. |
Loss from Operations
| · | Loss from operations was RMB2.13 billion (US$299.4 million) in the third quarter of 2022, compared with RMB97.8 million in the third quarter of 2021, and representing an increase of 117.6% from RMB978.5 million in the second quarter of 2022. Non-GAAP loss from operations was RMB1.72 billion (US$242.4 million) in the third quarter of 2022, compared with RMB259.4 million non-GAAP income from operations in the third quarter of 2021, and representing an increase of 231.1% from RMB520.8 million non-GAAP loss from operations in the second quarter of 2022. |
Net Loss and Net Loss Per Share
| · | Net loss was RMB1.65 billion (US$231.3 million) in the third quarter of 2022, compared with RMB21.5 million in the third quarter of 2021, and representing an increase of 156.7% from RMB641.0 million in the second quarter of 2022. Non-GAAP net loss was RMB1.24 billion (US$174.4 million) in the third quarter of 2022, compared with RMB335.7 million non-GAAP net income in the third quarter of 2021 and RMB183.4 million non-GAAP net loss in the second quarter of 2022. |
| · | Basic and diluted net loss per ADS6 attributable to ordinary shareholders were both RMB1.68 (US$0.24) in the third quarter of 2022, compared with both RMB0.02 in the third quarter of 2021, and both RMB0.64 in the second quarter of 2022. Non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders3 were both RMB1.27 (US$0.18) in the third quarter of 2022, compared with RMB0.36 and RMB0.34 non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders3, respectively, in the third quarter of 2021, and RMB0.17 for both non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders in the second quarter of 2022. |
Cash Position, Operating Cash Flow and Free Cash Flow
| · | Balance of cash and cash equivalents, restricted cash, time deposits, short-term investments, long-term time deposits and long-term financial instruments that were included in long-term investments was RMB55.83 billion (US$7.85 billion) as of September 30, 2022. |
| · | Net cash used in operating activities was RMB508.3 million (US$71.5 million) in the third quarter of 2022, compared with RMB2.17 billion net cash provided by operating activities in the third quarter of 2021 and RMB1.13 billion net cash provided by operating activities in the second quarter of 2022. The change in net cash used in operating activities over both the third quarter of 2021 and the second quarter of 2022 was mainly due to the increase in payment related to inventory purchase partially offset by the increase in cash received from customers. |
| · | Free cash flow was negative RMB1.96 billion (negative US$275.3 million) in the third quarter of 2022, compared with RMB1.16 billion free cash flow in the third quarter of 2021 and RMB451.7 million free cash flow in the second quarter of 2022. The change in free cash flow over both the third quarter of 2021 and the second quarter of 2022 was primarily due to the increase of operating cash outflow as well as an increase in capital expenditures. |
6 Each ADS represents two Class A ordinary shares.
6
Business Outlook
For the fourth quarter of 2022, the Company expects:
| · | Deliveries of vehicles to be between 45,000 and 48,000 vehicles, representing an increase of 27.8% to 36.3% from the fourth quarter of 2021. |
| · | Total revenues to be between RMB16.51 billion (US$2.32 billion) and RMB17.61 billion (US$2.47 billion), representing an increase of 55.4% to 65.8% from the fourth quarter of 2021. |
This business outlook reflects the Company’s current and preliminary view on the business situation and market condition, which is subject to change.
Conference Call
Management will hold a conference call at 7:00 a.m. U.S. Eastern Time on Friday, December 9, 2022 (8:00 p.m. Beijing Time on December 9, 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 prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, passcode, and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference instantly.
Participant Online Registration: https://s1.c-conf.com/diamondpass/10027197-gftd65.html
A replay of the conference call will be accessible through December 16, 2022, by dialing the following numbers:
| United States: | +1-855-883-1031 |
| Mainland China: | +86-400-1209-216 |
| Hong Kong, China: | +852-800-930-639 |
| International: | +61-7-3107-6325 |
| Replay PIN: | 10027197 |
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.
7
Non-GAAP Financial Measure
The Company uses non-GAAP financial 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 income/loss 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: Create a Mobile Home, Create Happiness (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. The Company started volume production in November 2019. Its model lineup includes Li L9, a six-seat flagship family SUV, Li L8 and Li ONE, both of which are six-seat premium family SUVs, and Li L7, a five-seat flagship family SUV. 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 while expanding its product line by developing new BEVs and EREVs to target a broader user base.
For more information, please visit: http://ir.lixiang.com.
8
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
9
Li Auto Inc.
Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss)
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
| For the Three Months Ended | ||||||||||||||||
| September 30, 2021 | June 30, 2022 | September 30, 2022 | September 30, 2022 | |||||||||||||
| RMB | RMB | RMB | US$ | |||||||||||||
| Revenues: | ||||||||||||||||
| Vehicle sales | 7,385,785 | 8,483,612 | 9,045,883 | 1,271,650 | ||||||||||||
| Other sales and services | 389,389 | 249,009 | 296,402 | 41,668 | ||||||||||||
| Total revenues | 7,775,174 | 8,732,621 | 9,342,285 | 1,313,318 | ||||||||||||
| Cost of sales: | ||||||||||||||||
| Vehicle sales | (5,830,322 | ) | (6,687,273 | ) | (7,962,903 | ) | (1,119,407 | ) | ||||||||
| Other sales and services | (132,890 | ) | (167,048 | ) | (197,412 | ) | (27,752 | ) | ||||||||
| Total cost of sales | (5,963,212 | ) | (6,854,321 | ) | (8,160,315 | ) | (1,147,159 | ) | ||||||||
| Gross profit | 1,811,962 | 1,878,300 | 1,181,970 | 166,159 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | (888,460 | ) | (1,531,644 | ) | (1,804,335 | ) | (253,649 | ) | ||||||||
| Selling, general and administrative | (1,021,299 | ) | (1,325,113 | ) | (1,507,362 | ) | (211,902 | ) | ||||||||
| Total operating expenses | (1,909,759 | ) | (2,856,757 | ) | (3,311,697 | ) | (465,551 | ) | ||||||||
| Loss from operations | (97,797 | ) | (978,457 | ) | (2,129,727 | ) | (299,392 | ) | ||||||||
| Other (expense)/income: | ||||||||||||||||
| Interest expense | (19,236 | ) | (21,172 | ) | (36,637 | ) | (5,150 | ) | ||||||||
| Interest income and investment income, net | 150,123 | 249,662 | 307,921 | 43,287 | ||||||||||||
| Others, net | 67,595 | 104,695 | 156,529 | 22,004 | ||||||||||||
| Income/(Loss) before income tax expense | 100,685 | (645,272 | ) | (1,701,914 | ) | (239,251 | ) | |||||||||
| Income tax (expense)/benefit | (122,195 | ) | 4,226 | 56,176 | 7,897 | |||||||||||
| Net loss | (21,510 | ) | (641,046 | ) | (1,645,738 | ) | (231,354 | ) | ||||||||
| Less: Net loss attributable to noncontrolling interests | – | (23,080 | ) | (5,417 | ) | (762 | ) | |||||||||
| Net loss attributable to ordinary shareholders of Li Auto Inc. | (21,510 | ) | (617,966 | ) | (1,640,321 | ) | (230,592 | ) | ||||||||
| Net loss | (21,510 | ) | (641,046 | ) | (1,645,738 | ) | (231,354 | ) | ||||||||
| Other comprehensive income | ||||||||||||||||
| Foreign currency translation adjustment, net of tax | 53,965 | 1,058,208 | 312,572 | 43,941 | ||||||||||||
| Total other comprehensive income | 53,965 | 1,058,208 | 312,572 | 43,941 | ||||||||||||
| Total comprehensive income/(loss) | 32,455 | 417,162 | (1,333,166 | ) | (187,413 | ) | ||||||||||
| Less: Net loss attributable to noncontrolling interests | – | (23,080 | ) | (5,417 | ) | (762 | ) | |||||||||
| Comprehensive income/(loss) attributable to ordinary shareholders of Li Auto Inc. | 32,455 | 440,242 | (1,327,749 | ) | (186,651 | ) | ||||||||||
| Weighted average number of ADSs | ||||||||||||||||
| Basic | 933,507,739 | 965,395,732 | 975,026,517 | 975,026,517 | ||||||||||||
| Diluted | 933,507,739 | 965,395,732 | 975,026,517 | 975,026,517 | ||||||||||||
| Net loss per ADS attributable to ordinary shareholders | ||||||||||||||||
| Basic | (0.02 | ) | (0.64 | ) | (1.68 | ) | (0.24 | ) | ||||||||
| Diluted | (0.02 | ) | (0.64 | ) | (1.68 | ) | (0.24 | ) | ||||||||
| Weighted average number of ordinary shares | ||||||||||||||||
| Basic | 1,867,015,478 | 1,930,791,463 | 1,950,053,033 | 1,950,053,033 | ||||||||||||
| Diluted | 1,867,015,478 | 1,930,791,463 | 1,950,053,033 | 1,950,053,033 | ||||||||||||
| Net loss per share attributable to ordinary shareholders | ||||||||||||||||
| Basic | (0.01 | ) | (0.32 | ) | (0.84 | ) | (0.12 | ) | ||||||||
| Diluted | (0.01 | ) | (0.32 | ) | (0.84 | ) | (0.12 | ) | ||||||||
10
Li Auto Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands)
| As of | ||||||||||||
| December 31, 2021 | September 30, 2022 | September 30, 2022 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 27,854,224 | 37,472,617 | 5,267,817 | |||||||||
| Restricted cash | 2,638,840 | 3,097,127 | 435,387 | |||||||||
| Time deposits and short-term investments | 19,668,239 | 14,492,404 | 2,037,310 | |||||||||
| Trade receivable | 120,541 | 32,582 | 4,580 | |||||||||
| Inventories | 1,617,890 | 5,515,781 | 775,396 | |||||||||
| Prepayments and other current assets | 480,680 | 1,459,680 | 205,199 | |||||||||
| Total current assets | 52,380,414 | 62,070,191 | 8,725,689 | |||||||||
| Non-current assets: | ||||||||||||
| Long-term investments | 156,306 | 1,480,987 | 208,194 | |||||||||
| Property, plant and equipment, net | 4,498,269 | 9,361,504 | 1,316,019 | |||||||||
| Operating lease right-of-use assets, net | 2,061,492 | 3,277,542 | 460,750 | |||||||||
| Intangible assets, net | 751,460 | 832,030 | 116,965 | |||||||||
| Deferred tax assets | 19,896 | 11,493 | 1,616 | |||||||||
| Other non-current assets | 1,981,076 | 2,196,550 | 308,787 | |||||||||
| Total non-current assets | 9,468,499 | 17,160,106 | 2,412,331 | |||||||||
| Total assets | 61,848,913 | 79,230,297 | 11,138,020 | |||||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Short-term borrowings | 37,042 | 528,065 | 74,234 | |||||||||
| Trade and notes payable | 9,376,050 | 15,520,221 | 2,181,798 | |||||||||
| Amounts due to related parties | 37,455 | 7,307 | 1,027 | |||||||||
| Deferred revenue, current | 305,092 | 522,613 | 73,468 | |||||||||
| Operating lease liabilities, current | 473,245 | 707,068 | 99,398 | |||||||||
| Accruals and other current liabilities | 1,879,368 | 4,615,396 | 648,823 | |||||||||
| Total current liabilities | 12,108,252 | 21,900,670 | 3,078,748 | |||||||||
| Non-current liabilities: | ||||||||||||
| Long-term borrowings | 5,960,899 | 8,964,211 | 1,260,169 | |||||||||
| Deferred revenue, non-current | 389,653 | 584,635 | 82,187 | |||||||||
| Operating lease liabilities, non-current | 1,369,825 | 1,743,489 | 245,096 | |||||||||
| Deferred tax liabilities | 153,723 | 84,264 | 11,846 | |||||||||
| Other non-current liabilities | 802,259 | 1,805,869 | 253,865 | |||||||||
| Total non-current liabilities | 8,676,359 | 13,182,468 | 1,853,163 | |||||||||
| Total liabilities | 20,784,611 | 35,083,138 | 4,931,911 | |||||||||
| Total Li Auto Inc. shareholders’ equity | 41,064,302 | 43,856,988 | 6,165,317 | |||||||||
| Noncontrolling interests | – | 290,171 | 40,792 | |||||||||
| Total shareholders’ equity | 41,064,302 | 44,147,159 | 6,206,109 | |||||||||
| Total liabilities and shareholders’ equity | 61,848,913 | 79,230,297 | 11,138,020 | |||||||||
11
Li Auto Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(All amounts in thousands)
| For the Three Months Ended | ||||||||||||||||
September 30, 2021 | June 30, 2022 | September 30, 2022 | September 30, 2022 | |||||||||||||
| RMB | RMB | RMB | US$ | |||||||||||||
| Net cash provided by/(used in) operating activities | 2,169,517 | 1,129,407 | (508,260 | ) | (71,450 | ) | ||||||||||
| Net cash provided by/(used in) investing activities | 6,962,534 | (740,518 | ) | 119,880 | 16,852 | |||||||||||
| Net cash provided by financing activities | 11,010,741 | 1,026,855 | 3,458,522 | 486,191 | ||||||||||||
| Effect of exchange rate changes | (8,659 | ) | 962,704 | 404,582 | 56,876 | |||||||||||
| Net change in cash, cash equivalents and restricted cash | 20,134,133 | 2,378,448 | 3,474,724 | 488,469 | ||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 13,827,058 | 34,716,572 | 37,095,020 | 5,214,735 | ||||||||||||
| Cash, cash equivalents and restricted cash at end of period | 33,961,191 | 37,095,020 | 40,569,744 | 5,703,204 | ||||||||||||
| Net cash provided by/(used in) operating activities | 2,169,517 | 1,129,407 | (508,260 | ) | (71,450 | ) | ||||||||||
| Capital expenditures | (1,004,543 | ) | (677,755 | ) | (1,450,310 | ) | (203,881 | ) | ||||||||
| Free cash flow | 1,164,974 | 451,652 | (1,958,570 | ) | (275,331 | ) | ||||||||||
12
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 | ||||||||||||||||
September 30, 2021 | June 30, 2022 | September 30, 2022 | September 30, 2022 | |||||||||||||
| RMB | RMB | RMB | US$ | |||||||||||||
| Cost of sales | (5,963,212 | ) | (6,854,321 | ) | (8,160,315 | ) | (1,147,159 | ) | ||||||||
| Share-based compensation expenses | 6,115 | 9,301 | 8,235 | 1,158 | ||||||||||||
| Non-GAAP cost of sales | (5,957,097 | ) | (6,845,020 | ) | (8,152,080 | ) | (1,146,001 | ) | ||||||||
| Research and development expenses | (888,460 | ) | (1,531,644 | ) | (1,804,335 | ) | (253,649 | ) | ||||||||
| Share-based compensation expenses | 245,348 | 301,449 | 231,207 | 32,503 | ||||||||||||
| Non-GAAP research and development expenses | (643,112 | ) | (1,230,195 | ) | (1,573,128 | ) | (221,146 | ) | ||||||||
| Selling, general and administrative expenses | (1,021,299 | ) | (1,325,113 | ) | (1,507,362 | ) | (211,902 | ) | ||||||||
| Share-based compensation expenses | 105,718 | 146,858 | 165,863 | 23,317 | ||||||||||||
| Non-GAAP selling, general and administrative expenses | (915,581 | ) | (1,178,255 | ) | (1,341,499 | ) | (188,585 | ) | ||||||||
| Loss from operations | (97,797 | ) | (978,457 | ) | (2,129,727 | ) | (299,392 | ) | ||||||||
| Share-based compensation expenses | 357,181 | 457,608 | 405,305 | 56,978 | ||||||||||||
| Non-GAAP income/(loss) from operations | 259,384 | (520,849 | ) | (1,724,422 | ) | (242,414 | ) | |||||||||
| Net loss | (21,510 | ) | (641,046 | ) | (1,645,738 | ) | (231,354 | ) | ||||||||
| Share-based compensation expenses | 357,181 | 457,608 | 405,305 | 56,978 | ||||||||||||
| Non-GAAP net income/(loss) | 335,671 | (183,438 | ) | (1,240,433 | ) | (174,376 | ) | |||||||||
| Net loss attributable to ordinary shareholders of Li Auto Inc. | (21,510 | ) | (617,966 | ) | (1,640,321 | ) | (230,592 | ) | ||||||||
| Share-based compensation expenses | 357,181 | 457,608 | 405,305 | 56,978 | ||||||||||||
Non-GAAP net income/(loss) attributable to ordinary shareholders of Li Auto Inc. | 335,671 | (160,358 | ) | (1,235,016 | ) | (173,614 | ) | |||||||||
| Weighted average number of ADSs (Non-GAAP) | ||||||||||||||||
| Basic | 933,507,739 | 965,395,732 | 975,026,517 | 975,026,517 | ||||||||||||
| Diluted | 1,000,412,702 | 965,395,732 | 975,026,517 | 975,026,517 | ||||||||||||
| Non-GAAP net earnings/(loss) per ADS attributable to ordinary shareholders | ||||||||||||||||
| Basic | 0.36 | (0.17 | ) | (1.27 | ) | (0.18 | ) | |||||||||
| Diluted | 0.34 | (0.17 | ) | (1.27 | ) | (0.18 | ) | |||||||||
| Weighted average number of ordinary shares (Non-GAAP) | ||||||||||||||||
| Basic | 1,867,015,478 | 1,930,791,463 | 1,950,053,033 | 1,950,053,033 | ||||||||||||
| Diluted | 2,000,825,404 | 1,930,791,463 | 1,950,053,033 | 1,950,053,033 | ||||||||||||
| Non-GAAP net earnings/(loss) per share attributable to ordinary shareholders7 | ||||||||||||||||
| Basic | 0.18 | (0.08 | ) | (0.63 | ) | (0.09 | ) | |||||||||
| Diluted | 0.17 | (0.08 | ) | (0.63 | ) | (0.09 | ) | |||||||||
7 Non-GAAP basic net earnings/loss per share attributable to ordinary shareholders is calculated by dividing non-GAAP net income/loss attributable to ordinary shareholders 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 shareholders by the weighted average number of ordinary shares, dilutive potential ordinary shares outstanding during the periods, including the dilutive effects of convertible senior notes as determined under the if-converted method and the dilutive effect of share-based awards as determined under the treasury stock method.
13