5/23,$LI AUTO-W (02015.HK)$It fell by more than 4%. As of press release, it was down 4.44% to HK$78.55, with a turnover of HK$520 million.

China Merchants Securities International published a report saying that Ideal Auto's non-GAAP net profit for the first quarter was 1.28 billion yuan, down 9.7% and 72.2% from year to quarter, respectively. Overall unit price and gross margin changes were in line with the guidelines, but high cost investment significantly dragged down performance. Lyon, on the other hand, said that the ideal first-quarter gross margin narrowed by 2.9 percentage points on a quarterly basis, mainly due to discounts on older models. Due to further price cuts starting in April, the bank expects its ideal profitability in the second quarter to be further pressured.

Fangzheng Securities pointed out that the company is currently in a pressure channel due to factors such as price strategy adjustments, increased competitive pressure in the industry, and sales falling short of expectations. It is expected to bottom out in the second quarter of 2024 after further pressure. We look forward to the company's performance after adjustments to the pure electricity strategy, optimization and upgrading of the organizational structure, and improvements in operating efficiency. The bank pointed out that the increase in L6 sales share may affect gross margin in the second quarter to continue to be pressured.