LI today released its financial report for the first quarter of 2023 as of March 31st. The financial report shows that LI’s total revenue in the first quarter was 18.79 billion yuan (about 2.74 billion US dollars), an increase of 96.5% compared with 9.56 billion yuan in the first quarter of 2022, and an increase of 6.4% compared with 17.65 billion yuan in the fourth quarter of 2022. The net profit was 933.8 million yuan (about 136.0 million US dollars), while the net loss in the first quarter of 2022 was 10.9 million yuan, an increase of 252.0% compared with the net profit of 265.3 million yuan in the fourth quarter of 2022. Non-GAAP net profit was 1.41 billion yuan (about 205.9 million US dollars), an increase of 196.4% compared with the net profit of 477.1 million yuan in the first quarter of 2022, and an increase of 46.1% compared with the net profit of 967.6 million yuan in the fourth quarter of 2022.

Operating results in the first quarter:

In the first quarter of 2023, the total number of vehicles delivered was 52,584, a year-on-year increase of 65.8%.

By March 31st, 2023, LI had 299 retail stores covering 123 cities. At the same time, there are 318 service centers and car body and paint shops authorized by LI in 223 cities.

In April 2023, LI delivered 25,681 vehicles, up 516.3% year-on-year.

By April 30th, 2023, LI had 302 retail stores covering 123 cities. At the same time, there are 318 service centers and car body and paint shops authorized by LI in 222 cities.

Financial performance in the first quarter:

The total revenue was 18.79 billion yuan (about 2.74 billion US dollars), an increase of 96.5% compared with 9.56 billion yuan in the first quarter of 2022 and 6.4% compared with 17.65 billion yuan in the fourth quarter of 2022.

Automobile sales reached 18.33 billion yuan (about 2.67 billion US dollars), up 96.9% from 9.31 billion yuan in the first quarter of 2022 and up 6.1% from 17.27 billion yuan in the fourth quarter of 2022.

Other sales and service income was 459.7 million yuan (about 66.9 million US dollars), an increase of 81.4% compared with 253.4 million yuan in the first quarter of 2022 and an increase of 20.5% compared with 381.5 million yuan in the fourth quarter of 2022.

The cost of sales was 14.96 billion yuan (about 2.18 billion US dollars), an increase of 102.2% compared with 7.40 billion yuan in the first quarter of 2022 and 6.2% compared with 14.08 billion yuan in the fourth quarter of 2022.

Gross profit was 3.83 billion yuan (about 5.577 US dollars), an increase of 77.0% compared with 2.16 billion yuan in the first quarter of 2022 and 7.4% compared with 3.57 billion yuan in the fourth quarter of 2022.

The gross profit margin was 20.4%, compared with 22.6% in the first quarter of 2022 and 20.2% in the fourth quarter of 2022. The profit rate of automobile business was 19.8%, compared with 22.4% in the first quarter of 2022 and 20.0% in the fourth quarter of 2022.

The total operating expenses were 3.42 billion yuan (about 498.7 million US dollars), an increase of 32.9% compared with 2.58 billion yuan in the first quarter of 2022 and a decrease of 7.4% compared with 3.70 billion yuan in the fourth quarter of 2022.

R&D expenditure was 1.85 billion yuan (about 269.7 million US dollars), an increase of 34.8% compared with 1.37 billion yuan in the first quarter of 2022 and a decrease of 10.5% compared with 2.07 billion yuan in the fourth quarter of 2022.

The expenditure on sales, general affairs and administration was 1.65 billion yuan (about 239.6 million US dollars), an increase of 36.8% compared with 1.20 billion yuan in the first quarter of 2022 and 0.9% compared with 1.63 billion yuan in the fourth quarter of 2022.

The operating profit was 405.2 million yuan (about 59 million US dollars), while the operating loss was 413.1 million yuan in the first quarter of 2022 and 133.6 million yuan in the fourth quarter of 2022.

Not according to US GAAP, the operating profit was 885.4 million yuan (about 128.9 million US dollars), while the operating profit in the first quarter of 2022 was 74.9 million yuan, an increase of 55.7% compared with the operating profit of 568.7 million yuan in the fourth quarter of 2022.

The net profit was 933.8 million yuan (about 136.0 million US dollars), while the net loss in the first quarter of 2022 was 10.9 million yuan, an increase of 252.0% compared with the net profit of 265.3 million yuan in the fourth quarter of 2022.

Non-GAAP net profit was 1.41 billion yuan (about 205.9 million US dollars), an increase of 196.4% compared with the net profit of 477.1 million yuan in the first quarter of 2022, and an increase of 46.1% compared with the net profit of 967.6 million yuan in the fourth quarter of 2022.

The basic and diluted earnings per share of American Depositary Shares (ADS) attributable to ordinary shareholders are 0.95 yuan (about 0.14 US dollars) and 0.89 yuan (about 0.13 US dollars) respectively, while the basic and diluted losses per share of ADS in the first quarter of 2022 are 0.01 yuan, and the basic and diluted earnings per share of ADS in the fourth quarter of 2022 are 0.26 yuan and 0.25 yuan respectively.

According to Non-GAAP, the basic and diluted earnings per ADS belonging to ordinary shareholders are 1.44 yuan (about 0.21 US dollars) and 1.35 yuan (about 0.20 US dollars), respectively, while the basic and diluted earnings per ADS in the first quarter of 2022 are 0.49 yuan and 0.47 yuan respectively, and in the fourth quarter of 2022.

By March 31st, 2023, the total amount of cash and cash equivalents, restricted cash, time deposits and short-term investments in LI was 65 billion yuan (about 9.46 billion US dollars).

The operating cash flow was 7.78 billion yuan (about 1.13 billion US dollars), an increase of 324.3% compared with 1.83 billion yuan in the first quarter of 2022 and an increase of 58.0% compared with 4.93 billion yuan in the fourth quarter of 2022.

Free cash flow was 6.70 billion yuan (about 975.9 million US dollars), compared with 502.0 million yuan in the first quarter of 2022, an increase of 105.8% compared with 3.26 billion yuan in the fourth quarter of 2022.

Performance outlook:

LI predicts that the delivery volume of automobiles in the second quarter of 2023 will be about 76,000 to 81,000, an increase of about 164.9% to 182.4% year-on-year.

The total revenue will reach 24.22 billion yuan (about 3.53 billion US dollars) to 25.86 billion yuan (about 3.77 billion US dollars), an increase of about 177.4% to 196.1%.

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