Li Auto's revenue and Net income in the fourth quarter exceeded expectations. Li Auto's delivery volume in the fourth quarter increased by 20.4% year-on-year; however, due to the impact of the "price war," Net income saw a decline year-on-year.
Benefiting from strong delivery volumes in the fourth quarter,$Li Auto (LI.US)$In the fourth quarter of 2024, revenue reached a record high for the quarter, but due to the impact of the 'price war', Net income declined year-on-year for both the fourth quarter and the whole year.
On Friday, March 14, Ideal Autos announced the Earnings Reports for the fourth quarter and the whole year of 2024.
1) Key financial data
Revenue: Fourth quarter revenue was 44.3 billion yuan, exceeding the estimate of 44.21 billion yuan, a year-on-year increase of 6.1% and a quarter-on-quarter increase of 3.3%; total revenue for the year reached 144.5 billion yuan, an increase of 16.6% year-on-year.
Profit: Net income in the fourth quarter was 3.5 billion yuan, a year-on-year decrease of 38.6%, exceeding Analyst expectations; the annual Net income was 8 billion yuan, a year-on-year decrease of 31.9%.
Operating margin: 8.4% in the fourth quarter, up from 7.3% in the same period last year; 4.9% for the whole year, down from 6.0% last year.
Vehicle sales revenue: Automotive sales revenue in the fourth quarter was 42.6 billion yuan (5.8 billion US dollars), a year-on-year increase of 5.6% and a quarter-on-quarter increase of 3.2%; for the whole year, it was 138.5 billion yuan, a year-on-year increase of 15.2%.
Additionally, Ideal Autos' gross margin decreased from 23.5% in the same period last year to 20.3%, lower than the third quarter's 21.5%. The company stated that the year-on-year decline in gross margin was due to changes in product mix, and the quarter-on-quarter decline was due to procurement commitment losses and lower sales prices.
2) Operational situation:
In terms of delivery volume, Ideal's fourth quarter delivery volume was 158,696 units, a year-on-year increase of 20.4%, slightly below expectations; in 2024, Ideal's delivery volume reached 500,508 units, a year-on-year increase of 33.1%.
Analysts pointed out that the company's automotive delivery volume in the fourth quarter increased by 20%, but the revenue growth was less than one-third of the delivery volume increase, reflecting that the company faces significant price reduction pressure.
Furthermore, the Earnings Reports mentioned that as of December 31, 2024, Ideal Autos had 502 retail stores domestically, covering 150 cities. At the same time, it operated 478 service centers and authorized body and paint shops in 225 cities; 1,727 supercharging stations are in operation, equipped with 9,100 Charging Stations.
In terms of performance outlook, the company expects that in the first quarter of 2025, the delivery volume will be between 88,000 and 93,000 vehicles, a year-on-year increase of 9.5% to 15.7%; total revenue is expected to be between 23.4 billion yuan and 24.7 billion yuan, a year-on-year decrease of 8.7% to 3.5%.
Mr. Li Xiang, Chairman and Chief Executive Officer of Li Auto, stated:
"We achieved a record performance in the fourth quarter, pushing our annual delivery volume to surpass 0.5 million vehicles, becoming the first Chinese luxury automobile brand to reach this milestone."
Mr. Li Tie, Chief Financial Officer of Li Auto, stated that we concluded 2024 with excellent financial performance. Strong automobile delivery volume in the fourth quarter propelled quarterly revenue to a record high, contributing to a 16.6% year-on-year increase in total revenue for 2024.
Editor/ping
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