Li Auto Inc. (LI) impressed investors with its latest earnings report, beating expectations and showcasing significant growth. Despite this positive news, the Chinese electric-vehicle company saw a slight dip of about 2% in premarket trading.
Impressive Financial Performance
Li Auto reported a net income of RMB2.31 billion ($318.6 million) for the quarter, representing a substantial improvement compared to a net loss of RMB641.0 million in the same period last year. The earnings per American depositary share (ADS) stood at RMB2.18, a significant increase from the RMB0.64 loss per share reported in the year-earlier period.
Adjusted earnings per ADS came in at RMB2.58, surpassing the FactSet consensus of RMB1.76 per ADS. The company's revenue also experienced remarkable growth, reaching RMB28.65 billion, compared to RMB8.73 billion during the same period in the previous year, outperforming analyst expectations of RMB26.74 billion.
Navigating a Competitive Market Landscape
Chief Executive Xiang Li shared his insights on the company's performance, stating, "Facing the competitive market dynamics in China's NEV industry, in the second quarter, we achieved our highest-ever profitability." Li attributed this success to continued investments in research and development, business expansion, and enhancements in organizational processes and operational capabilities.
Moreover, Li Auto demonstrated its ability to meet customer demand as vehicle deliveries soared to 86,533 units for the quarter, marking a remarkable growth of over 200% compared to the same period last year.
Despite the minor decline in premarket trading, Li Auto's exceptional earnings report positions the company for continued success in the rapidly evolving electric vehicle market.