The latest update from Li Auto (NASDAQ: LI) reveals a net income of RMB 646.6 million ($89.1 million) in the first quarter of the year, marking a 9.4 percent increase compared to the same period last year. Despite this growth, there was an 81.7 percent decrease from the previous quarter.
The company reported a gross margin of 20.5 percent for the first quarter, a slight decrease of 0.1 percentage points from last year and a 0.2 percentage point increase from the fourth quarter.
Li Auto has provided guidance for the second quarter, with expected vehicle deliveries between 123,000 and 128,000 units, representing a growth of 13.3 percent to 17.9 percent year-on-year. Revenue for the second quarter is projected to be between RMB 32.5 billion and RMB 33.8 billion, a 2.5 percent to 6.7 percent increase year-on-year.
The financial results for the first quarter of 2025 show total revenues of RMB 25.9 billion, up 1.1 percent from the same period in 2024. Vehicle sales accounted for RMB 24.7 billion of this revenue, reflecting a 1.8 percent increase year-on-year. Other sales and services amounted to RMB 1.2 billion, showing a decrease of 9.7 percent from the first quarter of 2024.
Cost of sales for the first quarter was RMB 20.6 billion, representing a 1.3 percent increase from the previous year. Gross profit reached RMB 5.3 billion, up 0.6 percent year-on-year.
Operating expenses for the quarter totaled RMB 5.0 billion, a 14.0 percent decrease from the first quarter of 2024. Research and development expenses were RMB 2.5 billion, while selling, general, and administrative expenses amounted to RMB 2.5 billion.
Income from operations was RMB 271.7 million, a significant improvement from the loss reported in the first quarter of 2024. Net income for the quarter reached RMB 646.6 million, showing a 9.4 percent increase year-on-year.
Li Auto’s cash position stood at RMB 110.7 billion as of March 31, 2025. The company reported a net cash used in operating activities of RMB 1.7 billion for the first quarter, representing a decrease from the previous year.
Looking ahead to the second quarter of 2025, Li Auto anticipates deliveries of vehicles to be between 123,000 and 128,000 units, with total revenues expected to range from RMB 32.5 billion to RMB 33.8 billion.
This outlook provides insight into Li Auto’s current business situation and market conditions, subject to change as the year progresses.
