Li Auto Stock Earnings Reports

Key points for investors:

- Demand and product: Li Auto returned to growth in early 2026, regained #1 among Chinese brands in the ≥RMB200k NEV segment (Jan–Apr). The all‑new Li L9 launched May 15 (Livis and Ultra trims); Livis captured >10,000 orders in two weeks and represents >90% of initial L9 orders. Monthly BEV i6 sales stabilized at ~20,000 units and now ranks top‑3 among BEV SUVs.

- Production and ramp: L9 and the upcoming L8 are produced at the Changzhou facility with flexible lines. Early ramp (May–June) capacity for L9/L8 targeted at ~4,000–5,000 units/month; expected L9 deliveries ~8,000 units from mid‑May to end‑June, with full ramp in Q3.

- Technology / moat: Company announced mass production deployment of its in‑house MAHE M100 5nm automotive AI inference chip and the MindVLA large model (10× parameters vs prior). Management positions chip + foundational model as a strategic moat and promises much higher effective compute per cost, enabling larger models, higher frame rates and faster AD development. A software/AI‑focused launch is planned in June.

- Financials and outlook: Q1 revenues RMB 23.0bn (-11.4% y/y, -20.1% q/q). Vehicle sales RMB 21.5bn. Gross profit RMB 1.8bn (gross margin 7.9%), vehicle margin 6.1%—both materially down due to product mix (higher i6 share, L‑series refresh) and seasonal factors. Q1 operating loss RMB 3.0bn; net loss RMB 2.3bn. Cash balance strong at RMB 94.3bn; share repurchase program ongoing (USD1bn authorization; ~USD148.1m deployed). Q2 guidance: deliveries 95k–100k vehicles; revenues RMB 24.1bn–25.4bn. Management expects gross margin to recover to ~10% in Q2 as product refresh progresses, with continued improvement through the year as lineup refresh completes.

- Cost & operations: R&D increased y/y (RMB 2.7bn); SG&A declined (lower comp and marketing). Cash flow pressure in Q1 (operating cash used RMB 6.1bn; free cash flow negative RMB 7.4bn) but ample liquidity allows continued buybacks and investment.

- Strategy & other initiatives: Store partner program (granting store managers profit-sharing/decision rights) is early but management reports improved local focus and inventory clearance. International expansion is phased: Middle East/Central Asia (L‑series range extender products) planned for Q3; BEV i6 to be introduced in Europe H2; RHD MEGA and other market entries planned. Management reiterates long‑term focus on embodied AI (including humanoid robotics) as a multi‑year effort.