Home NewsStock Market News 〈Financial Report〉Li Auto’s Q3 loss far exceeds expectations, optimistic about Q4 outlook | Anue tycoon-US stock radar

〈Financial Report〉Li Auto’s Q3 loss far exceeds expectations, optimistic about Q4 outlook | Anue tycoon-US stock radar

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〈Financial Report〉Li Auto’s Q3 loss far exceeds expectations, optimistic about Q4 outlook | Anue tycoon-US stock radar


Li Auto announced its third-quarter financial report before the U.S. stock market on Friday (9th). Due to the shortage of parts and components caused by the power outage in Sichuan, which affected the reduction in production, and the transition to new models affected the sales of old electric vehicles, the revenue in the previous quarter was not as good as Market expectations and net losses have further expanded. However, Li Auto predicts that production will increase in the fourth quarter, cost management will improve, and both sales and revenue will grow.

Before the deadline, the bleak earnings report affected Ideal Automobile (LI-US), whose ADR fell 0.87% to US$23.89 per share; Hong Kong stocks of Ideal Automobile (2015-HK) rose 0.97% on Friday to close at HK$94 per share.

According to the financial report, the revenue of Ideal Automobile in the third quarter (as of September 30) increased by 20.2% year-on-year to RMB 9.34 billion (the following units are the same), which was lower than the market expectation of RMB 9.6 billion. declined for two consecutive quarters.

The net loss of Ideal Automobile continued to expand in the last quarter. The net loss attributable to ordinary shareholders was 1.65 billion yuan, far exceeding the average market expectation of 815 million yuan. The loss in the same period last year was 21.5 million yuan. The net loss in the second quarter of this year was 641.0 million yuan; Generally accepted accounting principles (non-GAAP) net loss in the third quarter was 1.24 billion yuan, a net loss of 335.7 million yuan in the same period last year, and a net loss of 183.4 million yuan in the second quarter of this year.

Dragged down by the gross profit margin of vehicles, Li Auto’s gross profit margin fell sharply last quarter, with the overall gross profit margin being 12.7%, compared with 23.3% in the third quarter of 2021 and 21.5% in the second quarter of 2021. Among them, the gross profit margin of electric vehicles in the third quarter was 12%, a sharp drop from 21.1% in the same period last year, and not as good as the 21.2% in the second quarter.

For the decline in the gross profit margin of electric vehicles, Ideal Auto stated that the main reason is that the inventory provision related to Ideal ONE is related to the loss of purchase commitments. Excluding the above impact, the gross profit margin of Li Auto’s electric vehicles in the third quarter was 20.8%.

In terms of other data, Li Auto’s electric vehicle revenue in the third quarter was 7.386 billion yuan, an increase of 22.5% year-on-year and a year-on-year decrease of 6.6%. The company delivered a total of 26,524 vehicles in the third quarter, below the company’s previous forecast of a range of 27,000 to 29,000 vehicles.

Looking ahead, Li Auto estimates that its revenue in the fourth quarter will range from 16.51 billion yuan to 17.61 billion yuan, an annual increase of 55.4% to 65.8%; the delivery volume in the fourth quarter will be between 45,000 and 48,000, an annual increase of 27.8% to 36.3 %.

Regarding the performance of the financial report, Li Xiang, CEO of Ideal Automobile, said that in the uncertain macro environment and supply chain disturbances, the ideal L9 delivered more than 10,000 in the first full month of production, and has won the top spot in China since its delivery. Size SUV champion sales.

As for the financial forecast, Li Xiang said that with the rapid increase in production and strict implementation of cost management, in the future, greater economies of scale will be achieved and costs will be further reduced, allowing the company’s operations to return to the right track and turn losses into profits.

Li Auto announced on the same day that in order to devote more time to handling personal affairs, Shen Yanan has served as the company’s executive director and president, effective from January 1, 2023. The company appointed engineer Ma Donghui as the president, responsible for the research and development and supply fields, and Xie Yan, the senior vice president, will serve as the chief technology officer (CTO) of Lixiang Automobile, with full responsibility for the system and computing fields.

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