LI Auto, the Chinese electric vehicle manufacturer, has announced its Q1 2023 earnings report, which showcases some impressive numbers, including record-breaking revenue and delivery volume. The company’s revenue hit 18.79 billion RMB, a 96.5% year-on-year increase, while the quarterly delivery volume reached 52,584 vehicles, a 65.8% year-on-year increase, making it the most stable company among the new EV company in China market.
The financial report’s release has also had a positive effect on Ideal’s stock price, which rose over 6% before the market. However, the company’s quarterly gross profit margin decreased slightly to 20.4%, compared to 22.6% in the same period last year. The vehicle gross profit margin also decreased to 19.8%, compared to 22.4% in Q1 last year.
Despite these decreases, the company’s operating income increased significantly, reaching RMB 405.2 million, compared to an operating loss of RMB 413.1 million in the same period last year. The net profit also increased to RMB 933.8 million, compared to a net loss of RMB 10.9 million in the same period last year, marking a 252.0% increase from the previous quarter.
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LI Auto’s R&D expenses increased to 1.85 billion RMB, a 34.8% year-on-year increase, and accounted for 9.8% of revenue. However, the sequential decline is in line with the timing and progress of the new vehicle program. Sales and administrative expenses also increased to RMB 1.65 billion, a 36.8% year-on-year increase, but accounting for 8.8% of revenue, which is well-controlled.
Cash reserves continued to increase, reaching RMB 65 billion, with net cash provided by operating activities hitting RMB 7.78 billion, a 324.3% year-on-year increase, and free cash flow reaching RMB 6.70 billion, a quarter-on-quarter increase of 105.8%, both breaking history.
Moving forward, LI Auto expects to deliver 76,000 to 81,000 new cars in Q2, which means a monthly average exceeding 25,000, with revenue expected to reach between 24.22 billion RMB to 25.86 billion RMB. With these impressive numbers, LI Auto continues to drive forward in the EV China market.