Li Auto Inc. (“Li Auto” or the “Company”), a leader in China’s new energy vehicle market, today announced its unaudited financial results for the quarter and full year ended December 31, 2024.
Operating Highlights for the Fourth Quarter of 2024 and Full Year 2024
- Total deliveries for the fourth quarter of 2024 were 158,696 vehicles, representing a 20.4% year-over-year increase.
- Total deliveries for the full year 2024 reached 500,508 vehicles, representing an increase of 33.1% from 376,030 vehicles in 2023.
| FY 2024 | 2024 Q4 | 2024 Q3 | 2024 Q2 | 2024 Q1 | ||||||
| Deliveries | 500,508 | 158,696 | 152,831 | 108,581 | 80,400 | |||||
| FY 2023 | 2023 Q4 | 2023 Q3 | 2023 Q2 | 2023 Q1 | ||||||
| Deliveries | 376,030 | 131,805 | 105,108 | 86,533 | 52,584 | |||||
- As of December 31, 2024, in China, the Company had 502 retail stores in 150 cities, 478 servicing centers and Li Auto-authorized body and paint shops operating in 225 cities, and 1,727 super charging stations in operation equipped with 9,100 charging stalls.
Financial Highlights for the Fourth Quarter of 2024
- Vehicle sales were RMB42.6 billion (US$5.8 billion) in the fourth quarter of 2024, representing an increase of 5.6% from RMB40.4 billion in the fourth quarter of 2023 and an increase of 3.2% from RMB41.3 billion in the third quarter of 2024.
- Vehicle margin2 was 19.7% in the fourth quarter of 2024, compared with 22.7% in the fourth quarter of 2023 and 20.9% in the third quarter of 2024.
- Total revenues were RMB44.3 billion (US$6.1 billion) in the fourth quarter of 2024, representing an increase of 6.1% from RMB41.7 billion in the fourth quarter of 2023 and an increase of 3.3% from RMB42.9 billion in the third quarter of 2024.
- Gross profit was RMB9.0 billion (US$1.2 billion) in the fourth quarter of 2024, representing a decrease of 8.3% from RMB9.8 billion in the fourth quarter of 2023 and a decrease of 2.8% from RMB9.2 billion in the third quarter of 2024.
- Gross margin was 20.3% in the fourth quarter of 2024, compared with 23.5% in the fourth quarter of 2023 and 21.5% in the third quarter of 2024.
- Operating expenses were RMB5.3 billion (US$721.6 million) in the fourth quarter of 2024, representing a decrease of 22.0% from RMB6.8 billion in the fourth quarter of 2023 and a decrease of 9.1% from RMB5.8 billion in the third quarter of 2024.
- Income from operations was RMB3.7 billion (US$507.4 million) in the fourth quarter of 2024, representing an increase of 22.0% from RMB3.0 billion in the fourth quarter of 2023 and an increase of 7.9% from RMB3.4 billion in the third quarter of 2024.
- Operating margin was 8.4% in the fourth quarter of 2024, compared with 7.3% in the fourth quarter of 2023 and 8.0% in the third quarter of 2024.
- Net income was RMB3.5 billion (US$484.0 million) in the fourth quarter of 2024, representing a decrease of 38.6% from RMB5.8 billion in the fourth quarter of 2023 and an increase of 25.3% from RMB2.8 billion in the third quarter of 2024. Non-GAAP net income3 was RMB4.0 billion (US$553.4 million) in the fourth quarter of 2024, representing a decrease of 12.0% from RMB4.6 billion in the fourth quarter of 2023 and an increase of 4.9% from RMB3.9 billion in the third quarter of 2024.
- Diluted net earnings per ADS4 attributable to ordinary shareholders was RMB3.31 (US$0.45) in the fourth quarter of 2024, compared with RMB5.32 in the fourth quarter of 2023 and RMB2.66 in the third quarter of 2024. Non-GAAP diluted net earnings per ADS attributable to ordinary shareholders was RMB3.79 (US$0.52) in the fourth quarter of 2024, compared with RMB4.23 in the fourth quarter of 2023 and RMB3.63 in the third quarter of 2024.
- Net cash provided by operating activities was RMB8.7 billion (US$1.2 billion) in the fourth quarter of 2024, representing a decrease of 49.8% from RMB17.3 billion in the fourth quarter of 2023 and a decrease of 21.3% from RMB11.0 billion in the third quarter of 2024.
- Free cash flow5 was RMB6.1 billion (US$830.1 million) in the fourth quarter of 2024, representing a decrease of 58.6% from RMB14.6 billion in the fourth quarter of 2023 and a decrease of 33.1% from RMB9.1 billion in the third quarter of 2024.
Key Financial Results
(in millions, except for percentages and per ADS data)
| For the Three Months Ended | % Change6 | ||||||||
| December 31, 2023 |
September 30, 2024 |
December 31, 2024 |
YoY | QoQ | |||||
| RMB | RMB | RMB | |||||||
| Vehicle sales | 40,379.3 | 41,323.8 | 42,643.0 | 5.6% | 3.2% | ||||
| Vehicle margin | 22.7% | 20.9% | 19.7% | (3.0)pts | (1.2)pts | ||||
| Total revenues | 41,732.1 | 42,874.2 | 44,273.7 | 6.1% | 3.3% | ||||
| Gross profit | 9,786.9 | 9,224.7 | 8,970.2 | (8.3)% | (2.8)% | ||||
| Gross margin | 23.5% | 21.5% | 20.3% | (3.2)pts | (1.2)pts | ||||
| Operating expenses | (6,750.5) | (5,792.0) | (5,266.9) | (22.0)% | (9.1)% | ||||
| Income from operations | 3,036.4 | 3,432.7 | 3,703.3 | 22.0% | 7.9% | ||||
| Operating margin | 7.3% | 8.0% | 8.4% | 1.1pts | 0.4pts | ||||
| Net income | 5,752.3 | 2,820.5 | 3,532.7 | (38.6)% | 25.3% | ||||
| Non-GAAP net income | 4,588.7 | 3,851.0 | 4,039.7 | (12.0)% | 4.9% | ||||
| Diluted net earnings per ADS attributable to ordinary shareholders | 5.32 | 2.66 | 3.31 | (37.8)% | 24.4% | ||||
| Non-GAAP diluted net earnings per ADS attributable to ordinary shareholders | 4.23 | 3.63 | 3.79 | (10.4)% | 4.4% | ||||
| Net cash provided by operating activities | 17,294.2 | 11,024.6 | 8,680.3 | (49.8)% | (21.3)% | ||||
| Free cash flow (non-GAAP) | 14,638.1 | 9,051.8 | 6,059.3 | (58.6)% | (33.1)% | ||||
Financial Highlights for the Full Year 2024
- Vehicle sales were RMB138.5 billion (US$19.0 billion) in 2024, representing an increase of 15.2% from RMB120.3 billion in 2023.
- Vehicle margin was 19.8% in 2024, compared with 21.5% in 2023.
- Total revenues were RMB144.5 billion (US$19.8 billion) in 2024, representing an increase of 16.6% from RMB123.9 billion in 2023.
- Gross profit was RMB29.7 billion (US$4.1 billion) in 2024, representing an increase of 7.9% from RMB27.5 billion in 2023.
- Gross margin was 20.5% in 2024, compared with 22.2% in 2023.
- Operating expenses were RMB22.6 billion (US$3.1 billion) in 2024, representing an increase of 12.7% from RMB20.1 billion in 2023.
- Income from operations was RMB7.0 billion (US$961.6 million) in 2024, representing a decrease of 5.2% from RMB7.4 billion in 2023.
- Operating margin was 4.9% in 2024, compared with 6.0% in 2023.
- Net income was RMB8.0 billion (US$1.1 billion) in 2024, representing a decrease of 31.9% from RMB11.8 billion in 2023. Non-GAAP net income was RMB10.7 billion (US$1.5 billion) in 2024, representing a decrease of 12.5% from RMB12.2 billion in 2023.
- Diluted net earnings per ADS attributable to ordinary shareholders was RMB7.58 (US$1.04) in 2024, compared with RMB11.10 in 2023. Non-GAAP diluted net earnings per ADS attributable to ordinary shareholders was RMB10.04 (US$1.38) in 2024, compared with RMB11.46 in 2023.
- Net cash provided by operating activities was RMB15.9 billion (US$2.2 billion) in 2024, representing a decrease of 68.6% from RMB50.7 billion in 2023.
- Free cash flow was RMB8.2 billion (US$1.1 billion) in 2024, representing a decrease of 81.4% from RMB44.2 billion in 2023.
Key Financial Results
(in millions, except for percentages and per ADS data)
| For the Year Ended | % Change | ||||
| December 31, 2023 |
December 31, 2024 |
YoY | |||
| RMB | RMB | ||||
| Vehicle sales | 120,294.7 | 138,538.1 | 15.2% | ||
| Vehicle margin | 21.5% | 19.8% | (1.7)pts | ||
| Total revenues | 123,851.3 | 144,459.9 | 16.6% | ||
| Gross profit | 27,496.8 | 29,656.1 | 7.9% | ||
| Gross margin | 22.2% | 20.5% | (1.7)pts | ||
| Operating expenses | (20,089.9) | (22,637.0) | 12.7% | ||
| Income from operations | 7,406.9 | 7,019.1 | (5.2)% | ||
| Operating margin | 6.0% | 4.9% | (1.1)pts | ||
| Net income | 11,809.1 | 8,045.3 | (31.9)% | ||
| Non-GAAP net income | 12,197.6 | 10,670.1 | (12.5)% | ||
| Diluted net earnings per ADS attributable to ordinary shareholders | 11.10 | 7.58 | (31.7)% | ||
| Non-GAAP diluted net earnings per ADS attributable to ordinary shareholders | 11.46 | 10.04 | (12.4)% | ||
| Net cash provided by operating activities | 50,693.5 | 15,933.2 | (68.6)% | ||
| Free cash flow (non-GAAP) | 44,186.3 | 8,203.1 | (81.4)% | ||
Recent Developments
Delivery Update
- In January and February 2025, the Company delivered 29,927 and 26,263 vehicles, respectively. As of February 28, 2025, in China, the Company had 500 retail stores in 150 cities, 488 servicing centers and Li Auto-authorized body and paint shops operating in 224 cities, and 1,874 super charging stations in operation equipped with 10,008 charging stalls.
OTA Updates
- The Company continues to elevate user experience through OTA updates, with the most recent releases of OTA 6.5 in November 2024, OTA 7.0 in January 2025, and OTA 7.1 in February 2025. Available on the Li L series and Li MEGA, these updates introduced a wide array of new and enhanced autonomous driving, smart space, and smart electric features. Leveraging its full-stack, proprietary end-to-end (E2E) and vision-language model (VLM) technologies, the Company delivered a one-click point-to-point autonomous driving feature to all Li AD Max users via OTA 6.5 and upgraded its highway NOA via OTA 7.0 to enable seamless autonomous driving experiences across all driving scenarios. OTA 7.1 features an enhanced Li AD Max V13, offering smoother performance when navigating complex road conditions. These OTA updates also include upgrades to the Li Xiang Tong Xue smart assistant, the introduction of Sentry Mode High-Risk Video Remote Preview and Front Passenger Exit Alert features, and further enhancements to charging planning and efficiency.
Germany Research and Development Center
- In January 2025, the Company officially established its first overseas research and development center in Munich, Germany, which will drive its continued developments in technology pre-research, product development, and product strategy.
CEO and CFO Comments
Mr. Xiang Li, chairman and chief executive officer of Li Auto, commented, “Our record performance in the fourth quarter propelled our full-year deliveries to surpass the 500,000 milestone, making us the first among premium automotive brands in China. We also maintained our sales leadership position among Chinese automotive brands in the RMB200,000 and above NEV market. These achievements reflect our ability to drive innovation, efficiency, and value creation for users. Over the past year, we achieved a number of significant breakthroughs in intelligentization. Our autonomous driving solution now provides end-to-end functionality across all driving scenarios powered by our full-stack, proprietary E2E and VLM dual system architecture. Additionally, we significantly enhanced Li Xiang Tong Xue’s capabilities in memorization, planning, tool utilization, and expression, upgrading the interactive experience for users. Looking ahead to 2025, we will launch our next-generation autonomous driving architecture and new BEV models, bringing happiness to more families with enhanced intelligent features and a more diversified product portfolio.”
Mr. Tie Li, chief financial officer of Li Auto, added, “We concluded 2024 with a robust financial performance. Strong vehicle deliveries drove fourth-quarter revenues to RMB44.3 billion, representing a new quarterly record high and 6.1% year-over-year growth. This brought our full-year revenues to RMB144.5 billion, increasing by 16.6% year over year. We also maintained robust profitability with a net income of RMB8.0 billion and operating cash flow of RMB15.9 billion for the full year of 2024. Our year-end cash reserve remained solid at RMB112.8 billion, laying a sound foundation for future growth. Moving forward, we remain committed to expanding our business and driving technological innovation while striving for financial excellence. By continuously enhancing our comprehensive capabilities, we aim to grow sustainably and steadily advance toward our long-term vision in this intelligent era, creating value for all our stakeholders.”
Financial Results for the Fourth Quarter of 2024
Revenues
- Total revenues were RMB44.3 billion (US$6.1 billion) in the fourth quarter of 2024, representing an increase of 6.1% from RMB41.7 billion in the fourth quarter of 2023 and an increase of 3.3% from RMB42.9 billion in the third quarter of 2024.
- Vehicle sales were RMB42.6 billion (US$5.8 billion) in the fourth quarter of 2024, representing an increase of 5.6% from RMB40.4 billion in the fourth quarter of 2023 and an increase of 3.2% from RMB41.3 billion in the third quarter of 2024. The increase in revenue from vehicle sales over the fourth quarter of 2023 was primarily attributable to the increase in vehicle deliveries, partially offset by the lower average selling price mainly due to different product mix. The increase in revenue from vehicle sales over the third quarter of 2024 was primarily attributable to the increase in vehicle deliveries, partially offset by the lower average selling price due to interest subsidies provided to customers.
- Other sales and services were RMB1.6 billion (US$223.4 million) in the fourth quarter of 2024, representing an increase of 20.5% from RMB1.4 billion in the fourth quarter of 2023 and an increase of 5.2% from RMB1.6 billion in the third quarter of 2024. The increase in revenue from other sales and services over the fourth quarter of 2023 was mainly attributable to the increased provision of services and sales of accessories, which is in line with higher accumulated vehicle sales. The revenue from other sales and services remained relatively stable over the third quarter of 2024.
Cost of Sales and Gross Margin
- Cost of sales was RMB35.3 billion (US$4.8 billion) in the fourth quarter of 2024, representing an increase of 10.5% from RMB31.9 billion in the fourth quarter of 2023 and an increase of 4.9% from RMB33.6 billion in the third quarter of 2024. The increase in cost of sales over the fourth quarter of 2023 was primarily attributable to increase in vehicle deliveries, partially offset by the lower average cost of sales due to different product mix. The increase in cost of sales over the third quarter of 2024 was primarily attributable to increase in vehicle deliveries.
- Gross profit was RMB9.0 billion (US$1.2 billion) in the fourth quarter of 2024, representing a decrease of 8.3% from RMB9.8 billion in the fourth quarter of 2023 and a decrease of 2.8% from RMB9.2 billion in the third quarter of 2024.
- Vehicle margin was 19.7% in the fourth quarter of 2024, compared with 22.7% in the fourth quarter of 2023 and 20.9% in the third quarter of 2024. The decrease in vehicle margin over the fourth quarter of 2023 was mainly due to different product mix. The decrease in vehicle margin over the third quarter of 2024 was mainly due to losses on purchase commitment and lower average selling price due to interest subsidies provided to customers.
- Gross margin was 20.3% in the fourth quarter of 2024, compared with 23.5% in the fourth quarter of 2023 and 21.5% in the third quarter of 2024. The decrease in gross margin over the fourth quarter of 2023 and third quarter of 2024 was mainly due to the decrease in vehicle margin.
Operating Expenses
- Operating expenses were RMB5.3 billion (US$721.6 million) in the fourth quarter of 2024, representing a decrease of 22.0% from RMB6.8 billion in the fourth quarter of 2023 and a decrease of 9.1% from RMB5.8 billion in the third quarter of 2024.
- Research and development expenses were RMB2.4 billion (US$329.9 million) in the fourth quarter of 2024, representing a decrease of 31.0% from RMB3.5 billion in the fourth quarter of 2023 and a decrease of 6.9% from RMB2.6 billion in the third quarter of 2024. The decrease in research and development expenses over the fourth quarter of 2023 was mainly attributable to decreased expenses related to product portfolios and technologies, and decreased employee compensation. The decrease in research and development expenses over the third quarter of 2024 was primarily due to decreased employee compensation.
- Selling, general and administrative expenses were RMB3.1 billion (US$421.5 million) in the fourth quarter of 2024, representing a decrease of 5.9% from RMB3.3 billion in the fourth quarter of 2023 and a decrease of 8.4% from RMB3.4 billion in the third quarter of 2024. The decrease in selling, general and administrative expenses over the fourth quarter of 2023 was primarily due to decreased employee compensation and improved operational efficiency. The decrease in selling, general and administrative expenses over the third quarter of 2024 was primarily due to decreased employee compensation associated with the recognition of the chief executive officer’s performance-based awards in the third quarter of 2024, partially offset by the increased marketing and promotional activities.
Income from Operations
- Income from operations was RMB3.7 billion (US$507.4 million) in the fourth quarter of 2024, representing an increase of 22.0% from RMB3.0 billion in the fourth quarter of 2023 and an increase of 7.9% from RMB3.4 billion in the third quarter of 2024. Operating margin was 8.4% in the fourth quarter of 2024, compared with 7.3% in the fourth quarter of 2023 and 8.0% in the third quarter of 2024. Non-GAAP income from operations was RMB4.2 billion (US$577.6 million) in the fourth quarter of 2024, representing an increase of 9.1% from RMB3.9 billion in the fourth quarter of 2023 and a decrease of 5.5% from RMB4.5 billion in the third quarter of 2024.
Net Income and Net Earnings Per Share
- Net income was RMB3.5 billion (US$484.0 million) in the fourth quarter of 2024, representing a decrease of 38.6% from RMB5.8 billion in the fourth quarter of 2023 and an increase of 25.3% from RMB2.8 billion in the third quarter of 2024. Non-GAAP net income was RMB4.0 billion (US$553.4 million) in the fourth quarter of 2024, representing a decrease of 12.0% from RMB4.6 billion in the fourth quarter of 2023 and an increase of 4.9% from RMB3.9 billion in the third quarter of 2024.
- Basic and diluted net earnings per ADS attributable to ordinary shareholders were RMB3.52 (US$0.48) and RMB3.31 (US$0.45) in the fourth quarter of 2024, respectively, compared with RMB5.72 and RMB5.32 in the fourth quarter of 2023, respectively, and RMB2.82 and RMB2.66 in the third quarter of 2024, respectively. Non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders were RMB4.03 (US$0.55) and RMB3.79 (US$0.52) in the fourth quarter of 2024, respectively, compared with RMB4.54 and RMB4.23 in the fourth quarter of 2023, respectively, and RMB3.85 and RMB3.63 in the third quarter of 2024, respectively.
Cash Position, Operating Cash Flow and Free Cash Flow
- Cash position7 was RMB112.8 billion (US$15.5 billion) as of December 31, 2024.
- Net cash provided by operating activities was RMB8.7 billion (US$1.2 billion) in the fourth quarter of 2024, representing a decrease of 49.8% from RMB17.3 billion in the fourth quarter of 2023 and a decrease of 21.3% from RMB11.0 billion in the third quarter of 2024. The change in net cash provided by operating activities over the fourth quarter of 2023 and the third quarter of 2024 was mainly due to increased payment related to inventory purchase, partially offset by the increase in cash received from customers.
- Free cash flow was RMB6.1 billion (US$830.1 million) in the fourth quarter of 2024, representing a decrease of 58.6% from RMB14.6 billion in the fourth quarter of 2023 and a decrease of 33.1% from RMB9.1 billion in the third quarter of 2024.
Financial Results for the Full Year 2024
Revenues
- Total revenues were RMB144.5 billion (US$19.8 billion) in 2024, representing an increase of 16.6% from RMB123.9 billion in 2023.
- Vehicle sales were RMB138.5 billion (US$19.0 billion) in 2024, representing an increase of 15.2% from RMB120.3 billion in 2023. The increase in revenue from vehicle sales was mainly attributable to the increase in vehicle deliveries, partially offset by the lower average selling price mainly due to different product mix and changes in pricing strategy.
- Other sales and services were RMB5.9 billion (US$811.3 million) in 2024, representing an increase of 66.5% from RMB3.6 billion in 2023. The increase in revenue from other sales and services was mainly attributable to the increased provision of services and sales of accessories, which is in line with higher accumulated vehicle sales.
Cost of Sales and Gross Margin
- Cost of sales was RMB114.8 billion (US$15.7 billion) in 2024, representing an increase of 19.1% from RMB96.4 billion in 2023. The increase in cost of sales was mainly attributable to the increase in vehicle deliveries, partially offset by the lower average cost of sales due to different product mix and cost reduction.
- Gross profit was RMB29.7 billion (US$4.1 billion) in 2024, representing an increase of 7.9% from RMB27.5 billion in 2023.
- Vehicle margin was 19.8% in 2024, compared with 21.5% in 2023. The decrease in vehicle margin was mainly due to different product mix, and changes in pricing strategy, partially offset by cost reduction.
- Gross margin was 20.5% in 2024, compared with 22.2% in 2023. The decrease in gross margin was mainly attributable to the decrease of vehicle margin.
Operating Expenses
- Operating expenses were RMB22.6 billion (US$3.1 billion) in 2024, representing an increase of 12.7% from RMB20.1 billion in 2023.
- Research and development expenses were RMB11.1 billion (US$1.5 billion) in 2024, representing an increase of 4.6% from RMB10.6 billion in 2023. The increase in research and development expenses was primarily attributable to increased expenses to support our expanding product portfolios and technologies, and increased employee compensation.
- Selling, general and administrative expenses were RMB12.2 billion (US$1.7 billion) in 2024, representing an increase of 25.2% from RMB9.8 billion in 2023. The increase in selling, general and administrative expenses was primarily due to increased employee compensation associated with growth in number of staff and the recognition of share-based compensation expenses regarding the chief executive officer’s performance-based awards in 2024, as well as increased rental and other expenses associated with the expansion of sales and servicing network.
Income from Operations
- Income from operations was RMB7.0 billion (US$961.6 million) in 2024, representing a decrease of 5.2% from RMB7.4 billion in 2023. Operating margin was 4.9% in 2024, compared with 6.0% in 2023. Non-GAAP income from operations was RMB9.7 billion (US$1.3 billion) in 2024, representing a decrease of 1.4% from RMB9.8 billion in 2023.
Net Income and Net Earnings Per Share
- Net income was RMB8.0 billion (US$1.1 billion) in 2024, representing a decrease of 31.9% from RMB11.8 billion in 2023. Non-GAAP net income was RMB10.7 billion (US$1.5 billion) in 2024, representing a decrease of 12.5% from RMB12.2 billion in 2023.
- Basic and diluted net earnings per ADS attributable to ordinary shareholders were RMB8.06 (US$1.10) and RMB7.58 (US$1.04) in 2024, respectively, compared with RMB11.90 and RMB11.10 in 2023, respectively. Non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders were RMB10.69 (US$1.47) and RMB10.04 (US$1.38) in 2024, respectively, compared with RMB12.29 and RMB11.46 in 2023, respectively.
Operating Cash Flow and Free Cash Flow
- Net cash provided by operating activities was RMB15.9 billion (US$2.2 billion) in 2024, representing a decrease of 68.6% from RMB50.7 billion in 2023. The change in net cash provided by operating activities was mainly due to increased payment related to inventory purchase, partially offset by the increase in cash received from customers.
- Free cash flow was RMB8.2 billion (US$1.1 billion) in 2024, representing a decrease of 81.4% from RMB44.2 billion in 2023.
Employees
- As of December 31, 2024, the Company had a total of 32,248 employees.
Business Outlook
For the first quarter of 2025, the Company expects:
- Deliveries of vehicles to be between 88,000 and 93,000 vehicles, representing a year-over-year increase of 9.5% to 15.7%.
- Total revenues to be between RMB23.4 billion (US$3.2 billion) and RMB24.7 billion (US$3.4 billion), representing a year-over-year decrease of 8.7% to 3.5%.
This business outlook reflects the Company’s current and preliminary views on its business situation and market conditions, which are subject to change.
1 All translations from Renminbi (“RMB”) to U.S. dollars (“US$”) are made at a rate of RMB7.2993 to US$1.00, the exchange rate on December 31, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board.
2 Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of sales derived from vehicle sales only.
3 The Company’s non-GAAP financial measures exclude share-based compensation expenses and release of valuation allowance on deferred tax assets. See “Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results” set forth at the end of this press release.
4 Each ADS represents two Class A ordinary shares.
5 Free cash flow represents operating cash flow less capital expenditures, which is considered a non-GAAP financial measure.
6 Except for vehicle margin, gross margin, and operating margin, where absolute changes instead of percentage changes are presented.
7 Cash position includes cash and cash equivalents, restricted cash, time deposits and short-term investments, and long-term time deposits and financial instruments included in long-term investments.
8 Non-GAAP items have no tax impact for all the periods presented.
9 Non-GAAP basic net earnings per share attributable to ordinary shareholders is calculated by dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net earnings per share attributable to ordinary shareholders is calculated by dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the periods, including the dilutive effects of convertible senior notes as determined under the if-converted method and the dilutive effect of share-based awards as determined under the treasury stock method.
SOURCE: Li Auto
