UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 6-K

 

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of May 2022

 

Commission File Number: 001-39407

 

 

 

Li Auto Inc.

(Registrant’s Name)

 

 

 

11 Wenliang Street

Shunyi District, Beijing 101399

People’s Republic of China

(Address of Principal Executive Offices)

 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F x      Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o 

 

 

 

 

 

 

 

EXPLANATORY NOTE

 

We submitted a monthly return form dated May 9, 2022 with The Stock Exchange of Hong Kong Limited in relation to the movements in our authorized share capital and issued shares in April 2022. For details, please refer to Exhibit 99.1 to this current report on Form 6-K.

 

 

 

 

EXHIBIT INDEX

 

Exhibit No.   Description
99.1   Monthly Return for Equity Issuer and Hong Kong Depositary Receipts listed under Chapter 19B of the Exchange Listing Rules on Movements in Securities
99.2   Press Release—Li Auto Announces Unaudited First Quarter 2022 Financial Results

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

 

  Li Auto Inc.
     
  By

/s/ Tie Li

  Name: Tie Li
  Title: Director and Chief Financial Officer

  

Date: May 10, 2022

 

 

 

 

Exhibit 99.1

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FF301 v Page 1 of 8 1.0.1 Monthly Return for Equity Issuer and Hong Kong Depositary Receipts listed under Chapter 19B of the Exchange Listing Rules on Movements in Securities For the month ended: 30 April 2022 Status: New Submission To : Hong Kong Exchanges and Clearing Limited Name of Issuer: Li Auto Inc. Date Submitted: 09 May 2022 I. Movements in Authorised / Registered Share Capital 1. Type of shares WVR ordinary shares Class of shares Class A Listed on SEHK (Note 1) Yes Stock code 02015 Description Number of authorised/registered shares Par value Authorised/registered share capital Balance at close of preceding month 4,500,000,000 USD 0.0001 USD 450,000 Increase / decrease (-) USD Balance at close of the month 4,500,000,000 USD 0.0001 USD 450,000 2. Type of shares WVR ordinary shares Class of shares Class B Listed on SEHK (Note 1) No Stock code 02015 Description Number of authorised/registered shares Par value Authorised/registered share capital Balance at close of preceding month 500,000,000 USD 0.0001 USD 50,000 Increase / decrease (-) USD Balance at close of the month 500,000,000 USD 0.0001 USD 50,000 Total authorised/registered share capital at the end of the month: USD 500,000

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FF301 v Page 2 of 8 1.0.1 II. Movements in Issued Shares 1. Type of shares WVR ordinary shares Class of shares Class A Listed on SEHK (Note 1) Yes Stock code 02015 Description Balance at close of preceding month 1,709,903,330 Increase / decrease (-) 0 Balance at close of the month 1,709,903,330 2. Type of shares WVR ordinary shares Class of shares Class B Listed on SEHK (Note 1) No Stock code 02015 Description Balance at close of preceding month 355,812,080 Increase / decrease (-) 0 Balance at close of the month 355,812,080

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FF301 v Page 3 of 8 1.0.1 III. Details of Movements in Issued Shares (A). Share Options (under Share Option Schemes of the Issuer) 1. Type of shares issuable WVR ordinary shares Class of shares Class A Shares issuable to be listed on SEHK (Note 1) Yes Stock code of shares issuable (if listed on SEHK) (Note 1) 02015 Particulars of share option scheme Number of share options outstanding at close of preceding month Movement during the month Number of share options outstanding at close of the month No. of new shares of issuer issued during the month pursuant thereto (A) No. of new shares of issuer which may be issued pursuant thereto as at close of the month The total number of securities which may be issued upon exercise of all share options to be granted under the scheme at close of the month 1). 2019 Plan (Share incentive plan adopted on 2/7/2019 as amended from time to time) 49,267,698 Cancelled -102,800 Others -28,980 49,135,918 0 49,135,918 66,913,000 General Meeting approval date (if applicable) 2). 2020 Plan (Share incentive plan adopted on 9/7/2020 as amended from time to time) 33,169,554 Cancelled -934,200 Others -24,900 32,210,454 0 32,210,454 102,690,000 General Meeting approval date (if applicable) Total A (WVR ordinary shares Class A): 0 Total funds raised during the month from exercise of options: USD 5,388 Remarks: 1) Others: -28,980 refers to 28,980 options being exercised. The exercise of 28,980 options was settled using the Class A Ordinary Shares issued to the Depositary for bulk issuance of ADSs reserved for further issuances upon the exercise or vesting of awards granted under 2019 Share Incentive Plan. 2) Others: -24,900 refers to 24,900 options being exercised. The exercise of 24,900 options was settled using the Class A Ordinary Shares issued to the Depositary for bulk issuance of ADSs reserved for further issuances upon the exercise or vesting of awards granted under 2020 Share Incentive Plan. (B). Warrants to Issue Shares of the Issuer which are to be Listed Not applicable

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FF301 v Page 4 of 8 1.0.1 (C). Convertibles (i.e. Convertible into Issue Shares of the Issuer which are to be Listed) 1. Type of shares issuable WVR ordinary shares Class of shares Class A Shares issuable to be listed on SEHK (Note 1) No Stock code of shares issuable (if listed on SEHK) (Note 1) Description of the Convertibles Currency Amount at close of preceding month Movement during the month Amount at close of the month No. of new shares of issuer issued during the month pursuant thereto (C) No. of new shares of issuer which may be issued pursuant thereto as at close of the month 1). 2028 Notes - convertible senior notes USD 862,500,000 862,500,000 0 60,861,104 Type of convertibles Bond/Notes Stock code of the Convertibles (if listed on SEHK) (Note 1) Subscription/Conversion price USD 14.17 General Meeting approval date (if applicable) Total C (WVR ordinary shares Class A): 0 (D). Any other Agreements or Arrangements to Issue Shares of the Issuer which are to be listed, including Options (other than Share Options Schemes) 1. Type of shares issuable WVR ordinary shares Class of shares Class A Shares issuable to be listed on SEHK (Note 1) Yes Stock code of shares issuable (if listed on SEHK) (Note 1) 02015 Description General Meeting approval date (if applicable) No. of new shares of issuer issued during the month pursuant thereto (D) No. of new shares of issuer which may be issued pursuant thereto as at close of the month 1). 2019 Plan - restricted shares (Share incentive plan adopted on 2/7/2019 as amended from time to time) 0 0 2). 2019 Plan - restricted share unit (Share incentive plan adopted on 2/7/2019 as amended from time to time) 0 0 3). 2020 Plan - restricted shares (Share incentive plan adopted on 9/7/2020 as amended from time to time) 0 0 4). 2020 Plan - restricted share unit (Share incentive plan adopted on 9/7/2020 as amended from time to time) 0 21,270,986

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FF301 v Page 5 of 8 1.0.1 Total D (WVR ordinary shares Class A): 0 Remarks: As of 30 April 2022, 21,270,986 shares of the issuer may be issued pursuant to the restricted share units granted under 2020 Plan. 405,000 restricted share units granted under 2020 Plan were cancelled during the month. (E). Other Movements in Issued Share Not applicable Total increase / decrease (-) in WVR ordinary shares Class A during the month (i.e. Total of A to E) 0 Total increase / decrease (-) in WVR ordinary shares Class A during the month (i.e. Total of A to E) 0

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FF301 v Page 6 of 8 1.0.1 IV. Information about Hong Kong Depositary Receipt (HDR) Not applicable

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FF301 v Page 7 of 8 1.0.1 V. Confirmations We hereby confirm to the best knowledge, information and belief that, in relation to each of the securities issued by the issuer during the month as set out in Part III and IV which has not been previously disclosed in a return published under Main Board Rule 13.25A / GEM Rule 17.27A, it has been duly authorised by the board of directors of the listed issuer and, insofar as applicable: (Note 2) (i) all money due to the listed issuer in respect of the issue of securities has been received by it; (ii) all pre-conditions for listing imposed by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited under "Qualifications of listing" have been fulfilled; (iii) all (if any) conditions contained in the formal letter granting listing of and permission to deal in the securities have been fulfilled; (iv) all the securities of each class are in all respects identical (Note 3); (v) all documents required by the Companies (Winding Up and Miscellaneous Provisions) Ordinance to be filed with the Registrar of Companies have been duly filed and that compliance has been made with other legal requirements; (vi) all the definitive documents of title have been delivered/are ready to be delivered/are being prepared and will be delivered in accordance with the terms of issue; (vii) completion has taken place of the purchase by the issuer of all property shown in the listing document to have been purchased or agreed to be purchased by it and the purchase consideration for all such property has been duly satisfied; and (viii) the trust deed/deed poll relating to the debenture, loan stock, notes or bonds has been completed and executed, and particulars thereof, if so required by law, have been filed with the Registrar of Companies. Submitted by: Wang Yang Title: Joint Company Secretary (Director, Secretary or other Duly Authorised Officer) Notes 1. SEHK refers to Stock Exchange of Hong Kong. 2. Items (i) to (viii) are suggested forms of confirmation which may be amended to meet individual cases. Where the issuer has already made the relevant confirmations in a return published under Main Board Rule 13.25A / GEM Rule 17.27A in relation to the securities issued, no further confirmation is required to be made in this return.

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FF301 v Page 8 of 8 1.0.1 3. “Identical” means in this context: . the securities are of the same nominal value with the same amount called up or paid up; . they are entitled to dividend/interest at the same rate and for the same period, so that at the next ensuing distribution, the dividend/interest payable per unit will amount to exactly the same sum (gross and net); and . they carry the same rights as to unrestricted transfer, attendance and voting at meetings and rank pari passu in all other respects. 4. If there is insufficient space, please submit additional document. 5. In the context of repurchase of shares: . “shares issuable to be listed on SEHK” should be construed as “shares repurchased listed on SEHK”; and . “stock code of shares issuable (if listed on SEHK)” should be construed as “stock code of shares repurchased (if listed on SEHK)”; and . “type of shares issuable” should be construed as “type of shares repurchased”; and . “issue and allotment date” should be construed as “cancellation date” 6. In the context of redemption of shares: . “shares issuable to be listed on SEHK” should be construed as “shares redeemed listed on SEHK”; and . “stock code of shares issuable (if listed on SEHK)” should be construed as “stock code of shares redeemed (if listed on SEHK)”; and . “type of shares issuable” should be construed as “type of shares redeemed”; and . “issue and allotment date” should be construed as “redemption date”

 

Exhibit 99.2

 

 

 

 

Li Auto Inc. Announces Unaudited First Quarter 2022 Financial Results

 

Quarterly total revenues reached RMB9.56 billion (US$1.51 billion)1

Quarterly deliveries reached 31,716 vehicles

Quarterly gross margin reached 22.6%

 

BEIJING, China, May 10, 2022 — Li Auto Inc. ("Li Auto" or the "Company") (Nasdaq: LI; HKEX: 2015), a leader in China’s new energy vehicle market, today announced its unaudited financial results for the quarter ended March 31, 2022.

 

Operating Highlights for the First Quarter of 2022

 

·Deliveries of Li ONE were 31,716 vehicles in the first quarter of 2022, representing a 152.1% year-over-year increase.

 

   2022 Q1   2021 Q4   2021 Q3   2021 Q2 
Deliveries   31,716    35,221    25,116    17,575 

 

   2021 Q1   2020 Q4   2020 Q3   2020 Q2 
Deliveries   12,579    14,464    8,660    6,604 

 

·As of March 31, 2022, the Company had 217 retail stores covering 102 cities, as well as 287 servicing centers and Li Auto-authorized body and paint shops operating in 211 cities.

 

Financial Highlights for the First Quarter of 2022

 

·Vehicle sales were RMB9.31 billion (US$1.47 billion) in the first quarter of 2022, representing an increase of 168.7% from RMB3.46 billion in the first quarter of 2021 and a decrease of 10.3% from RMB10.38 billion in the fourth quarter of 2021.

 

·Vehicle margin2 was 22.4% in the first quarter of 2022, compared with 16.9% in the first quarter of 2021 and 22.3% in the fourth quarter of 2021.

 

·Total revenues were RMB9.56 billion (US$1.51 billion) in the first quarter of 2022, representing an increase of 167.5% from RMB3.58 billion in the first quarter of 2021 and a decrease of 10.0% from RMB10.62 billion in the fourth quarter of 2021.

 

·Gross profit was RMB2.16 billion (US$341.3 million) in the first quarter of 2022, representing an increase of 250.9% from RMB616.7 million in the first quarter of 2021 and a decrease of 9.1% from RMB2.38 billion in the fourth quarter of 2021.

 

·Gross margin was 22.6% in the first quarter of 2022, compared with 17.3% in the first quarter of 2021 and 22.4% in the fourth quarter of 2021.

 

 

1 All translations from Renminbi (“RMB”) to U.S. dollar (“US$”) are made at a rate of RMB6.3393 to US$1.00, the noon buying rate in effect on March 31, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

2 Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of sales derived from vehicle sales only.

 

1 

 

 

·Loss from operations was RMB413.1 million (US$65.2 million) in the first quarter of 2022, compared with RMB407.7 million loss from operations in the first quarter of 2021 and RMB24.1 million income from operations in the fourth quarter of 2021. Non-GAAP income from operations3 was RMB74.9 million (US$11.8 million) in the first quarter of 2022, compared with RMB224.8 million non-GAAP loss from operations3 in the first quarter of 2021 and RMB415.0 million non-GAAP income from operations in the fourth quarter of 2021.

 

·Net loss was RMB10.9 million (US$1.7 million) in the first quarter of 2022, compared with RMB360.0 million net loss in the first quarter of 2021 and RMB295.5 million net income in the fourth quarter of 2021. Non-GAAP net income3 was RMB477.1 million (US$75.3 million) in the first quarter of 2022, compared with RMB177.0 million non-GAAP net loss3 in the first quarter of 2021 and RMB686.4 million non-GAAP net income in the fourth quarter of 2021.

 

·Operating cash flow was RMB1.83 billion (US$289.3 million) in the first quarter of 2022, representing an increase of 98.0% from RMB926.3 million in the first quarter of 2021 and a decrease of 52.2% from RMB3.84 billion in the fourth quarter of 2021.

 

·Free cash flow4 was RMB502.0 million (US$79.2 million) in the first quarter of 2022, compared with RMB570.2 million in the first quarter of 2021 and RMB1.62 billion in the fourth quarter of 2021.

 

Key Financial Results

 

(in millions, except for percentages)

 

   For the Three Months Ended   % Change5 
  

March 31,

2021

   December 31, 2021  

March 31,

2022

   YoY   QoQ 
   RMB   RMB   RMB         
Vehicle sales   3,463.7    10,375.7    9,308.6    168.7%   (10.3)%
Vehicle margin   16.9%   22.3%   22.4%   5.5%   0.1%
                          
Total revenues   3,575.2    10,620.5    9,562.0    167.5%   (10.0)%
Gross profit   616.7    2,380.0    2,163.9    250.9%   (9.1)%
Gross margin   17.3%   22.4%   22.6%   5.3%   0.2%
                          
(Loss)/Income from operations   (407.7)   24.1    (413.1)   1.3%   N/A 
Non-GAAP (loss)/income from operations   (224.8)   415.0    74.9    N/A    (82.0)%
                          
Net (loss)/income   (360.0)   295.5    (10.9)   (97.0)%   N/A 
Non-GAAP net (loss)/income   (177.0)   686.4    477.1    N/A    (30.5)%
                          
Operating cash flow   926.3    3,836.9    1,833.8    98.0%   (52.2)%
Free cash flow   570.2    1,615.4    502.0    (12.0)%   (68.9)%
                          

 

 

3 The Company’s non-GAAP financial measures exclude share-based compensation expenses. See “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

 

4 Free cash flow represents operating cash flow less capital expenditures, which is considered a non-GAAP financial measure.

 

5 Except for vehicle margin and gross margin, where absolute changes instead of percentage changes are presented.

 

2 

 

 

Recent Developments

 

Delivery Update

 

·In April 2022, the Company delivered 4,167 Li ONEs. As of April 30, 2022, the Company had 225 retail stores covering 106 cities, in addition to 292 servicing centers and Li Auto-authorized body and paint shops operating in 211 cities.

 

Inaugural Environmental, Social and Governance Report

 

·On April 19, 2022, the Company published its 2021 Environmental, Social and Governance (ESG) report (https://ir.lixiang.com/esg), highlighting the Company’s ESG initiatives and achievements.

 

Inclusion in the Shenzhen- and Shanghai-Hong Kong Stock Connect Programs

 

·The Company’s Class A ordinary shares, which are listed and traded on the Stock Exchange of Hong Kong Limited, have been included in the Shenzhen- and Shanghai-Hong Kong Stock Connect programs, effective on March 14 and April 25, 2022, respectively.

 

CEO and CFO Comments

 

Mr. Xiang Li, founder, chairman, and chief executive officer of Li Auto, commented, “We sincerely appreciate our users’ consistent support, which, combined with our self-discipline for efficient operations, continued to drive robust financial performance in the first quarter of 2022 and ensured the scale and pace of our investments in research and development. While the recent pandemic resurgence and associated supply chain interruptions have been challenging for our industry, and uncertainty remains for the near future, we are confident in the resilience of our organization.”

 

“Despite recent pandemic-related bumps on the road, we are forging ahead with our plan to commence the deliveries of our second model, the L9, in the third quarter. The L9 is a flagship smart SUV for family users based on our new-generation EREV platform, offering best-in-class performance, safety, and intelligence. It features our fully self-developed range extension system, chassis control system, and central vehicle domain controller, which empower its flagship dynamic performance and drivability. Every L9 comes standard with our proprietary autonomous driving system, Li AD Max, capable of all-scenario Navigation on ADAS (NOA) for enhanced driving safety and convenience.”

 

Mr. Tie Li, chief financial officer of Li Auto, added, “Our solid performance in the first quarter of 2022 speaks to the enduring strength of our product. Driven by our strong vehicle deliveries despite the supply chain constraints facing the industry, we achieved revenues of RMB9.56 billion for the first quarter, up 167.5% year over year. Our vehicle margin in the first quarter remained healthy at 22.4%, and our cash flow from operations was positive for the eighth consecutive quarter at RMB1.83 billion. Amidst this volatile environment, we will continue to execute with discipline and further strengthen our financial flexibility and resilience, persevering through challenges while maintaining a steadfast commitment to innovation.”

 

3 

 

 

Financial Results for the First Quarter of 2022

 

Revenues

 

·Total revenues were RMB9.56 billion (US$1.51 billion) in the first quarter of 2022, representing an increase of 167.5% from RMB3.58 billion in the first quarter of 2021 and a decrease of 10.0% from RMB10.62 billion in the fourth quarter of 2021.

 

·Vehicle sales were RMB9.31 billion (US$1.47 billion) in the first quarter of 2022, representing an increase of 168.7% from RMB3.46 billion in the first quarter of 2021 and a decrease of 10.3% from RMB10.38 billion in the fourth quarter of 2021. The increase in revenue from vehicle sales over the first quarter of 2021 was mainly attributable to the increase in vehicle deliveries in the first quarter of 2022. The decrease in revenue from vehicle sales over the fourth quarter of 2021 was mainly attributable to the decrease in vehicle deliveries which were affected by seasonal factors related to the Chinese New Year holiday in the first quarter of 2022.

 

·Other sales and services were RMB253.4 million (US$40.0 million) in the first quarter of 2022, representing an increase of 127.2% from RMB111.5 million in the first quarter of 2021 and an increase of 3.6% from RMB244.7 million in the fourth quarter of 2021. The increase in revenue from other sales and services over the first quarter of 2021 was mainly attributable to increased sales of charging stalls, accessories and services in line with higher accumulated vehicle sales.

 

Cost of Sales and Gross Margin

 

·Cost of sales was RMB7.40 billion (US$1.17 billion) in the first quarter of 2022, representing an increase of 150.1% from RMB2.96 billion in the first quarter of 2021 and a decrease of 10.2% from RMB8.24 billion in the fourth quarter of 2021. The increase in cost of sales over the first quarter of 2021 was in line with revenue growth, mainly driven by the increase in vehicle deliveries in the first quarter of 2022. The decrease in cost of sales over the fourth quarter of 2021 was mainly due to the decrease in vehicle deliveries in the first quarter of 2022.

 

·Gross profit was RMB2.16 billion (US$341.3 million) in the first quarter of 2022, representing an increase of 250.9% from RMB616.7 million in the first quarter of 2021 and a decrease of 9.1% from RMB2.38 billion in the fourth quarter of 2021.

 

·Vehicle margin was 22.4% in the first quarter of 2022, compared with 16.9% in the first quarter of 2021 and 22.3% in the fourth quarter of 2021. The increase in vehicle margin over the first quarter of 2021 was primarily driven by higher average selling price attributable to the increase of vehicle deliveries of 2021 Li ONE since its release in May 2021.

 

·Gross margin was 22.6% in the first quarter of 2022, compared with 17.3% in the first quarter of 2021 and 22.4% in the fourth quarter of 2021.

 

4 

 

 

Operating Expenses

 

·Operating expenses were RMB2.58 billion (US$406.5 million) in the first quarter of 2022, representing an increase of 151.5% from RMB1.02 billion in the first quarter of 2021 and an increase of 9.4% from RMB2.36 billion in the fourth quarter of 2021.

 

·Research and development expenses were RMB1.37 billion (US$216.7 million) in the first quarter of 2022, representing an increase of 167.0% from RMB514.5 million in the first quarter of 2021 and an increase of 11.7% from RMB1.23 billion in the fourth quarter of 2021. The increase in research and development expenses over the first quarter of 2021 was primarily driven by increased employee compensation as a result of our growing number of research and development staff as well as increased costs associated with new product development. The increase in research and development expenses over the fourth quarter of 2021 was mainly driven by increased employee compensation as a result of our growing number of research and development staff.

 

·Selling, general and administrative expenses were RMB1.20 billion (US$189.8 million) in the first quarter of 2022, representing an increase of 135.9% from RMB509.9 million in the first quarter of 2021 and an increase of 6.8% from RMB1.13 billion in the fourth quarter of 2021. The increase in selling, general and administrative expenses over the first quarter of 2021 was primarily driven by increased employee compensation as a result of our growing number of staff, as well as increased marketing and promotional activities and rental expenses associated with the expansion of the Company’s sales network.

 

Loss/Income from Operations

 

·Loss from operations was RMB413.1 million (US$65.2 million) in the first quarter of 2022, compared with RMB407.7 million loss from operations in the first quarter of 2021 and RMB24.1 million income from operations in the fourth quarter of 2021. Non-GAAP income from operations was RMB74.9 million (US$11.8 million) in the first quarter of 2022, compared with RMB224.8 million non-GAAP loss from operations in the first quarter of 2021 and RMB415.0 million non-GAAP income from operations in the fourth quarter of 2021.

 

Net Loss/Income and Net Loss/Earnings Per Share

 

·Net loss was RMB10.9 million (US$1.7 million) in the first quarter of 2022, compared with RMB360.0 million net loss in the first quarter of 2021 and RMB295.5 million net income in the fourth quarter of 2021. Non-GAAP net income was RMB477.1 million (US$75.3 million) in the first quarter of 2022, compared with RMB177.0 million non-GAAP net loss in the first quarter of 2021 and RMB686.4 million non-GAAP net income in the fourth quarter of 2021.

 

·Basic and diluted net loss per ADS6 attributable to ordinary shareholders were RMB0.01 (US$0.00) and RMB0.01 (US$0.00) in the first quarter of 2022, respectively. Non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders3 were RMB0.49 (US$0.08) and RMB0.47 (US$0.07) in the first quarter of 2022, respectively.

 

Cash Position, Operating Cash Flow and Free Cash Flow

 

·Balance of cash and cash equivalents, restricted cash, time deposits and short-term investments was RMB51.19 billion (US$8.07 billion) as of March 31, 2022.

 

·Operating cash flow was RMB1.83 billion (US$289.3 million) in the first quarter of 2022, representing an increase of 98.0% from RMB926.3 million in the first quarter of 2021 and a decrease of 52.2% from RMB3.84 billion in the fourth quarter of 2021.

 

·Free cash flow was RMB502.0 million (US$79.2 million) in the first quarter of 2022, compared with RMB570.2 million in the first quarter of 2021 and RMB1.62 billion in the fourth quarter of 2021.

 

 

6 Each ADS represents two Class A ordinary shares.

 

5 

 

 

Business Outlook

 

For the second quarter of 2022, the Company expects:

 

·Deliveries of vehicles to be between 21,000 and 24,000 vehicles, representing an increase of 19.5% to 36.6% from the second quarter of 2021.

 

·Total revenues to be between RMB6.16 billion (US$972.3 million) and RMB7.04 billion (US$1.11 billion), representing an increase of 22.3% to 39.8% from the second quarter of 2021.

 

This business outlook reflects the Company’s current and preliminary view on the business situation and market condition, in particular, the encouraging signs of recovery from the resurging pandemic in the Yangtze Delta region, which are all subject to change due to uncertainties related to factors such as the pace of pandemic recovery, among others.

 

Conference Call

 

Management will hold a conference call at 8:00 a.m. U.S. Eastern Time on Tuesday, May 10, 2022 (8:00 p.m. Beijing Time on May 10, 2022) to discuss financial results and answer questions from investors and analysts.

 

For participants who wish to join the call, please complete online registration using the link provided below at least 20 minutes prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, Direct Event passcode, a unique registrant ID and an e-mail with detailed instructions to join the conference call.

 

Participant Online Registration: http://apac.directeventreg.com/registration/event/4179921

 

A replay of the conference call will be accessible through May 18, 2022, by dialing the following numbers:

 

United States: +1-855-452-5696
Mainland China: +86-400-820-9703
Hong Kong, China: +852-3051-2780
International: +61-2-8199-0299
Conference ID: 4179921

 

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.lixiang.com.

 

6 

 

 

Non-GAAP Financial Measure

 

The Company uses non-GAAP measures, such as non-GAAP cost of sales, non-GAAP research and development expenses, non-GAAP selling, general and administrative expenses, non-GAAP income/loss from operations, non-GAAP net income/loss, non-GAAP net loss/income attributable to ordinary shareholders, non-GAAP basic and diluted net earnings/loss per ADS attributable to ordinary shareholders and free cash flow, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

 

The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

 

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

 

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

 

About Li Auto Inc.

 

Li Auto Inc. is a leader in China’s new energy vehicle market. The Company designs, develops, manufactures, and sells premium smart electric vehicles. Its mission is to create homes on the move that bring happiness to the entire family (“创造移动的家,创造幸福的家”). Through innovations in product, technology, and business model, the Company provides families with safe, convenient, and comfortable products and services. Li Auto is a pioneer to successfully commercialize extended-range electric vehicles in China. Its first model, Li ONE, is a six-seat, large premium smart electric SUV. The Company started volume production of Li ONE in November 2019 and released the 2021 Li ONE in May 2021. The Company leverages technology to create value for its users. It concentrates its in-house development efforts on its proprietary range extension system, next-generation electric vehicle technology, and smart vehicle solutions. Beyond Li ONE, the Company will expand its product line by developing new vehicles, including BEVs and EREVs, to target a broader consumer base.

 

For more information, please visit: http://ir.lixiang.com.

 

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Safe Harbor Statement

 

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Li Auto may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “HKEX”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about Li Auto’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Li Auto’s strategies, future business development, and financial condition and results of operations; Li Auto’s limited operating history; risks associated with extended-range electric vehicles, Li Auto’s ability to develop, manufacture, and deliver vehicles of high quality and appeal to customers; Li Auto’s ability to generate positive cash flow and profits; product defects or any other failure of vehicles to perform as expected; Li Auto’s ability to compete successfully; Li Auto’s ability to build its brand and withstand negative publicity; cancellation of orders for Li Auto’s vehicles; Li Auto’s ability to develop new vehicles; and changes in consumer demand and government incentives, subsidies, or other favorable government policies. Further information regarding these and other risks is included in Li Auto’s filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and Li Auto does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

For investor and media inquiries, please contact:

 

Li Auto Inc.

Investor Relations

Email: ir@lixiang.com

 

The Piacente Group, Inc.

Yang Song

Tel: +86-10-6508-0677

Email: Li@tpg-ir.com

 

Brandi Piacente

Tel: +1-212-481-2050

Email: Li@tpg-ir.com

 

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Li Auto Inc.

Unaudited Condensed Consolidated Statements of Comprehensive Loss

 

(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)

 

   For the Three Months Ended 
   March 31, 2021   December 31, 2021   March 31, 2022   March 31, 2022 
   RMB   RMB   RMB   US$ 
Revenues:                
Vehicle sales   3,463,673    10,375,716    9,308,609    1,468,397 
Other sales and services   111,528    244,736    253,427    39,977 
Total revenues   3,575,201    10,620,452    9,562,036    1,508,374 
Cost of sales:                    
Vehicle sales   (2,878,994)   (8,057,653)   (7,219,912)   (1,138,913)
Other sales and services   (79,474)   (182,820)   (178,269)   (28,121)
Total cost of sales   (2,958,468)   (8,240,473)   (7,398,181)   (1,167,034)
Gross profit   616,733    2,379,979    2,163,855    341,340 
Operating expenses:                    
Research and development   (514,500)   (1,229,991)   (1,373,962)   (216,737)
Selling, general and administrative   (509,924)   (1,125,885)   (1,202,967)   (189,763)
Total operating expenses   (1,024,424)   (2,355,876)   (2,576,929)   (406,500)
(Loss)/Income from operations   (407,691)   24,103    (413,074)   (65,160)
Other (expense)/income:                    
Interest expense   (14,582)   (9,685)   (10,138)   (1,599)
Interest income and investment income, net   178,472    179,315    162,874    25,693 
Others, net   (90,211)   89,037    279,703    44,122 
(Loss)/Income before income tax expense   (334,012)   282,770    19,365    3,056 
Income tax (expense)/benefit   (25,955)   12,741    (30,231)   (4,769)
Net (loss)/income   (359,967)   295,511    (10,866)   (1,713)
Net (loss)/income attributable to ordinary shareholders   (359,967)   295,511    (10,866)   (1,713)
                     
Net (loss)/income   (359,967)   295,511    (10,866)   (1,713)
Other comprehensive income/(loss)                    
Foreign currency translation adjustment, net of nil tax   107,644    (372,067)   (85,116)   (13,427)
Total other comprehensive income/(loss)   107,644    (372,067)   (85,116)   (13,427)
Total comprehensive loss   (252,323)   (76,556)   (95,982)   (15,140)
Comprehensive loss attributable to ordinary shareholders   (252,323)   (76,556)   (95,982)   (15,140)
Weighted average number of ADSs                    
Basic   904,696,628    962,726,533    964,870,446    964,870,446 
Diluted   904,696,628    1,027,358,848    964,870,446    964,870,446 
Net (loss)/earnings per ADS attributable to ordinary shareholders                    
Basic   (0.40)   0.31    (0.01)   (0.00)
Diluted   (0.40)   0.29    (0.01)   (0.00)
Weighted average number of ordinary shares                    
Basic   1,809,393,256    1,925,453,066    1,929,740,892    1,929,740,892 
Diluted   1,809,393,256    2,054,717,696    1,929,740,892    1,929,740,892 
Net (loss)/earnings per share attributable to ordinary shareholders                    
Basic   (0.20)   0.15    (0.01)   (0.00)
Diluted   (0.20)   0.15    (0.01)   (0.00)

 

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Li Auto Inc.

Unaudited Condensed Consolidated Balance Sheets

 

(All amounts in thousands)

 

   As of 
   December 31, 2021   March 31, 2022   March 31, 2022 
   RMB   RMB   US$ 
ASSETS            
Current assets:               
Cash and cash equivalents   27,854,224    32,055,546    5,056,638 
Restricted cash   2,638,840    2,661,026    419,767 
Time deposits and short-term investments   19,668,239    16,471,460    2,598,309 
Trade receivable   120,541    140,747    22,202 
Inventories   1,617,890    1,916,562    302,330 
Prepayments and other current assets   480,680    1,091,652    172,204 
Total current assets   52,380,414    54,336,993    8,571,450 
Non-current assets:               
Long-term investments   156,306    301,685    47,590 
Property, plant and equipment, net   4,498,269    5,098,372    804,248 
Operating lease right-of-use assets, net   2,061,492    2,903,906    458,080 
Intangible assets, net   751,460    765,464    120,749 
Deferred tax assets   19,896    11,811    1,863 
Other non-current assets   1,981,076    2,376,114    374,820 
Total non-current assets   9,468,499    11,457,352    1,807,350 
Total assets   61,848,913    65,794,345    10,378,800 
LIABILITIES AND EQUITY               
Current liabilities:               
Short-term borrowings   37,042    136,744    21,571 
Trade and notes payable   9,376,050    11,113,443    1,753,103 
Amounts due to related parties   37,455    8,159    1,287 
Deferred revenue, current   305,092    321,423    50,703 
Operating lease liabilities, current   473,245    501,053    79,039 
Accruals and other current liabilities   1,879,368    1,870,524    295,066 
Total current liabilities   12,108,252    13,951,346    2,200,769 
Non-current liabilities:               
Long-term borrowings   5,960,899    7,040,929    1,110,679 
Deferred revenue, non-current   389,653    473,903    74,756 
Operating lease liabilities, non-current   1,369,825    1,495,883    235,970 
Deferred tax liabilities   153,723    142,042    22,407 
Other non-current liabilities   802,259    1,233,480    194,576 
Total non-current liabilities   8,676,359    10,386,237    1,638,388 
Total liabilities   20,784,611    24,337,583    3,839,157 
Total shareholders’ equity   41,064,302    41,456,762    6,539,643 
Total liabilities and shareholders’ equity   61,848,913    65,794,345    10,378,800 

 

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Li Auto Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

 

(All amounts in thousands)

 

   For the Three Months Ended 
  

March 31,

2021

  

December 31,

2021

  

March 31,

2022

  

March 31,

2022

 
   RMB   RMB   RMB   US$ 
Net cash provided by operating activities   926,343    3,836,898    1,833,769    289,270 
Net cash (used in)/provided by investing activities   (2,892,396)   (7,109,624)   1,564,251    246,755 
Net cash provided by financing activities       165,030    902,991    142,443 
Effect of exchange rate changes   (24,104)   (360,431)   (77,503)   (12,226)
Net change in cash, cash equivalents and restricted cash   (1,990,157)   (3,468,127)   4,223,508    666,242 
Cash, cash equivalents and restricted cash at beginning of period   10,172,519    33,961,191    30,493,064    4,810,163 
Cash, cash equivalents and restricted cash at end of period   8,182,362    30,493,064    34,716,572    5,476,405 
                     
Net cash provided by operating activities   926,343    3,836,898    1,833,769    289,270 
Capital expenditures   (356,131)   (2,221,529)   (1,331,814)   (210,088)
Free cash flow   570,212    1,615,369    501,955    79,182 

 

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Li Auto Inc.

Unaudited Reconciliation of GAAP and Non-GAAP Results

 

(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)

 

   For the Three Months Ended 
  

March 31,

2021

  

December 31,

2021

  

March 31,

2022

  

March 31,

2022

 
   RMB   RMB   RMB   US$ 
Cost of sales   (2,958,468)   (8,240,473)   (7,398,181)   (1,167,034)
Shared-based compensation expenses   6,209    8,185    10,665    1,682 
Non-GAAP cost of sales   (2,952,259)   (8,232,288)   (7,387,516)   (1,165,352)
                     
Research and development expenses   (514,500)   (1,229,991)   (1,373,962)   (216,737)
Shared-based compensation expenses   116,609    270,065    324,532    51,194 
Non-GAAP research and development expenses   (397,891)   (959,926)   (1,049,430)   (165,543)
                     
Selling, general and administrative expenses   (509,924)   (1,125,885)   (1,202,967)   (189,763)
Shared-based compensation expenses   60,110    112,606    152,754    24,096 
Non-GAAP selling, general and administrative expenses   (449,814)   (1,013,279)   (1,050,213)   (165,667)
                     
(Loss)/Income from operations   (407,691)   24,103    (413,074)   (65,160)
Shared-based compensation expenses   182,928    390,856    487,951    76,972 
Non-GAAP (loss)/income from operations   (224,763)   414,959    74,877    11,812 
                     
Net (loss)/income   (359,967)   295,511    (10,866)   (1,713)
Shared-based compensation expenses   182,928    390,856    487,951    76,972 
Non-GAAP net (loss)/income   (177,039)   686,367    477,085    75,259 
                     
Net (loss)/income attributable to ordinary shareholders   (359,967)   295,511    (10,866)   (1,713)
Shared-based compensation expenses   182,928    390,856    487,951    76,972 

Non-GAAP net (loss)/income attributable to ordinary shareholders

   (177,039)   686,367    477,085    75,259 
                     
Weighted average number of ADSs (Non-GAAP)                    
Basic   904,696,628    962,726,533    964,870,446    964,870,446 
Diluted   904,696,628    1,027,358,848    1,035,309,021    1,035,309,021 
Non-GAAP net (loss)/earnings per ADS attributable to ordinary shareholders                    
Basic   (0.20)   0.71    0.49    0.08 
Diluted   (0.20)   0.68    0.47    0.07 
Weighted average number of ordinary shares (Non-GAAP)                    
Basic   1,809,393,256    1,925,453,066    1,929,740,892    1,929,740,892 
Diluted   1,809,393,256    2,054,717,696    2,070,618,042    2,070,618,042 
Non-GAAP net (loss)/earnings per share attributable to ordinary shareholders7                    
Basic   (0.10)   0.36    0.25    0.04 
Diluted   (0.10)   0.34    0.23    0.04 

 

 

7 Non-GAAP basic net earnings/loss per share attributable to ordinary shareholders is calculated by dividing non-GAAP net income/loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net earnings/loss per share attributable to ordinary shareholders is calculated by dividing non-GAAP net income/loss attributable to ordinary shareholders by the weighted average number of ordinary shares, dilutive potential ordinary shares outstanding during the periods, including the dilutive effects of convertible senior notes as determined under the if-converted method and the dilutive effect of share-based awards as determined under the treasury stock method.

 

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