Li Auto (NASDAQ:LI) released its unaudited fourth-quarter and full-year 2025 financial results on Thursday, revealing a year defined by heavy investment and a significant transition in its vehicle portfolio.
The Beijing-based automaker reported full-year revenues of RMB112.3 billion, supported by total annual deliveries of 406,343 vehicles.
For the fourth quarter, total revenues reached RMB28.8 billion as the company delivered 109,194 units.
While these figures remain substantial, they represent a material decline compared to the record-breaking heights of 2024.
Management attributed this softening to a strategic product cycle transition as the company phases out older models in favor of its next-generation extended-range (EREV) and high-voltage pure electric (BEV) platforms.
Despite the volume contraction, Li Auto demonstrated significant margin resilience.
The company maintained a gross margin of 17.8% and a vehicle margin of 16.8% in the fourth quarter, suggesting that its premium positioning and supply chain efficiencies remain intact despite intense price competition in the Chinese EV market.
On the balance sheet, Li Auto ended 2025 with a massive cash position of RMB101.2 billion.
However, the aggressive R&D spending and infrastructure buildout for its new "Mega" series and upcoming "L" series refreshes resulted in a negative free cash flow of RMB12.8 billion for the year.
This capital expenditure is a core part of the company's "2026 strategy" to regain market share through a fully refreshed fleet.
Meanwhile, the company posted a full-year net income of RMB1.1 billion, successfully remaining in the black during a period of heavy reinvestment.