Li Auto Beats Revenue Estimates but Faces Stark YoY Profit Decline

Li Auto reported its Q2 earnings with revenues reaching RMB 31.7 billion, surpassing the estimated RMB 31.42 billion. The company's adjusted net profit attributable to shareholders was RMB 1.5 billion for the quarter, representing a year-over-year decrease of 44%. Li Auto forecasts Q3 deliveries to range from 145,000 to 155,000 units, exceeding the estimated 137,725 units.
Total revenue for the quarter came in at RMB 31.7 billion (approximately $4.4 billion), marking a 10.6% YoY increase and a 23.6% QoQ decline. In terms of sales, automotive revenue reached RMB 30.3 billion (approximately $4.2 billion), growing 8.4% YoY and 25.0% QoQ. Other sales and services revenue contributed RMB 1.4 billion (approximately $187 million), showing a significant 99.6% rise YoY but a 1.7% decline QoQ.
The company's net profit for Q2 was RMB 1.1 billion, a sharp YoY decline of 52.3%, yet an impressive 86.2% QoQ growth. On a non-GAAP basis, adjusted net profit stood at RMB 1.5 billion, down 44.9% YoY but up 17.8% QoQ.
Ahead of the next quarter, Li Auto remains optimistic, forecasting vehicle deliveries between 145,000 and 155,000 units, considerably higher than the market's expectation of 137,725 units. The favorable outlook indicates strong market demand and the company's robust operational capabilities despite a challenging economic landscape.