Li Auto, the Chinese electric vehicle (EV) maker, reported its unaudited fourth-quarter financial results with solid revenue and gross margin figures that exceeded market expectations. According to the financial reports released today, the company’s revenue was RMB 17.65 billion ($2.56 billion) in Q4 2022, slightly above the market consensus of RMB 17.622 billion.
The automaker’s revenue grew by 66.19% year-on-year and 88.97% quarter-on-quarter. Li Auto had previously forecasted Q4 revenue of RMB 16.51 billion to RMB 17.61 billion. The company delivered 46,319 vehicles in the fourth quarter, which was within the guidance range of 45,000 to 48,000 vehicles.
Li Auto’s gross margin rose significantly to 20.2% in the fourth quarter from 12.7% in Q3, driven by the accelerated phase-out of its first model, the Li ONE. The automaker’s vehicle margin in Q4 was 20%, up from 12% in Q3 but down from 22.3% in the same period last year.
See also: Li Auto Introduces the Li L7: A Five-Seat Flagship Family SUV
The automaker’s net income for the quarter was RMB 265 million, compared to market expectations of a net loss of RMB 111 million. In addition, the company reported a non-GAAP net income of RMB 967.6 million, up 41% year-on-year.
Li Auto guided for deliveries of 52,000 to 55,000 vehicles in the first quarter, implying a year-on-year increase of 64.0% to 73.4%. The company’s revenue guidance for Q1 is RMB 17.45 billion to RMB 18.45 billion, indicating a year-on-year increase of 82.5% to 93%.
Li Auto’s R&D expenses for the quarter were RMB 2.07 billion, up 68.3% year-on-year and 14.7% from Q3. As of December 31, the company’s cash balance was RMB 58.45 billion.
See also: Li Auto Announces Beta Testing of Tesla FSD-Like Advanced Assisted Driving Feature
In June 2022, Li Auto announced a planned at-the-market stock offering on NASDAQ to sell up to $2 billion in American Depositary Shares. As of now, the company has sold 9,431,282 ADSs, raising total gross proceeds of $366.5 million, after deducting fees and commissions payable to the distribution agent of up to $4.8 million and certain other offering expenses.
Overall, Li Auto’s Q4 results beat market expectations, with strong revenue growth and a significant rebound in gross margins. The company’s strong guidance for Q1 2023 suggests continued growth for the EV maker in the coming year.
