Li Auto (NASDAQ:LI), a prominent player in China’s burgeoning new energy vehicle market, today disclosed its unaudited financial results for the second quarter ended June 30, 2024.
For the quarter, Li Auto reported a total revenue of RMB31.7 billion (US$4.4 billion), marking a 10.6% increase from the RMB28.7 billion recorded in the same period last year.
Vehicle sales, which constituted the bulk of the revenue, rose by 8.4% to RMB30.3 billion (US$4.2 billion).
Despite the revenue growth, the company's profitability metrics painted a bleaker picture.
Gross profit slightly dipped by 0.9% to RMB6.2 billion (US$850 million), reflecting a static performance compared to last year’s same quarter.
Moreover, operating expenses surged by 23.9% to RMB5.7 billion (US$785.6 million), primarily driven by increased costs in sales, research, and development.
Income from operations plummeted by 71.2% to RMB468 million (US$64.4 million), down from RMB1.6 billion in the second quarter of 2023.
Similarly, net income experienced a significant decline of 52.3%, standing at RMB1.1 billion (US$151.5 million) compared to RMB2.3 billion in the prior year.
The company did achieve a notable milestone in vehicle deliveries, which increased by 25.5% year-over-year to 108,581 vehicles.
This suggests a robust demand for Li Auto’s offerings despite the financial headwinds.
Following the earnings release, Li Auto's share price plummeted 9.75% to $18.96 in early trading