0001104659-23-047986 | 20-F | XBRL Viewer

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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2022 shares
Document Information [Line Items]
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Period End Date	Dec. 31, 2022
Entity File Number	001-39407
Entity Registrant Name	Li Auto Inc.
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	11 Wenliang Street
Entity Address, Adress Line Two	Shunyi District
Entity Address, City or Town	Beijing
Entity Address, Postal Zip Code	101399
Entity Address, Country	CN
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Auditor Name	PricewaterhouseCoopers Zhong Tian LLP
Auditor Firm ID	1424
Auditor Location	Beijing, the People’s Republic of China
Entity Central Index Key	0001791706
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Business Contact
Document Information [Line Items]
Entity Address, Address Line One	11 Wenliang Street
Entity Address, Adress Line Two	Shunyi District
Contact Personnel Name	Tie Li
Contact Personnel Email Address	ir@lixiang.com
Entity Address, City or Town	Beijing
Entity Address, Postal Zip Code	101399
Entity Address, Country	CN
Country Region	86
City Area Code	10
Local Phone Number	8742-7209
American depository shares
Document Information [Line Items]
Title of 12(b) Security	American depositary shares, each representing two Class A ordinary shares, par value US$0.0001 per share
Trading Symbol	LI
Security Exchange Name	NASDAQ
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	1,707,099,212
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	355,812,080

CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 38,478,016	$ 5,578,788	¥ 27,854,224
Restricted cash	1,940,142	281,294	2,638,840
Time deposits and short-term investments	18,031,395	2,614,307	19,668,239
Trade receivable, net of allowance for credit losses of RMB467, and RMB327 as of December 31, 2021 and 2022, respectively	48,381	7,015	120,541
Inventories	6,804,693	986,588	1,617,890
Prepayments and other current assets, net of allowance for credit losses of RMB2,192, and RMB4,427 as of December 31, 2021 and 2022, respectively	1,689,860	245,007	480,680
Total current assets	66,992,487	9,712,999	52,380,414
Non-current assets:
Long-term investments	1,484,491	215,231	156,306
Property, plant and equipment, net	11,187,898	1,622,093	4,498,269
Operating lease right-of-use assets, net	3,538,911	513,094	2,061,492
Intangible assets, net	832,620	120,719	751,460
Goodwill	5,484	795
Deferred tax assets	74,767	10,840	19,896
Other noncurrent assets, net of allowance for credit losses of RMB3,757, and RMB4,572 as of December 31, 2021 and 2022, respectively	2,421,293	351,054	1,981,076
Total non-current assets	19,545,464	2,833,826	9,468,499
Total assets	86,537,951	12,546,825	61,848,913
Current liabilities:
Short-term borrowings	390,750	56,653	37,042
Trade and notes payable	20,024,329	2,903,255	9,376,050
Amounts due to related parties	7,190	1,042	37,455
Deferred revenue, current	569,234	82,531	305,092
Operating lease liabilities, current	696,454	100,976	473,245
Accruals and other current liabilities	5,684,644	824,198	1,879,368
Total current liabilities	27,372,601	3,968,655	12,108,252
Noncurrent liabilities:
Long-term borrowings	9,230,807	1,338,341	5,960,899
Deferred revenue, noncurrent	581,598	84,324	389,653
Operating lease liabilities, noncurrent	1,946,367	282,197	1,369,825
Deferred tax liabilities	77,809	11,281	153,723
Other noncurrent liabilities	2,142,462	310,628	802,259
Total noncurrent liabilities	13,979,043	2,026,771	8,676,359
Total liabilities	41,351,644	5,995,426	20,784,611
Commitments and contingencies (Note 27)
SHAREHOLDERS' EQUITY
Treasury shares	(84)	(12)	(89)
Additional paid-in capital	53,869,322	7,810,318	49,390,486
Accumulated other comprehensive loss	(194,110)	(28,143)	(1,521,871)
Accumulated deficit	(8,817,850)	(1,278,468)	(6,805,635)
Total Li Auto Inc. shareholders' equity	44,858,701	6,503,901	41,064,302
Noncontrolling interests	327,606	47,498
Total shareholders' equity	45,186,307	6,551,399	41,064,302
Total liabilities and shareholders' equity	86,537,951	12,546,825	61,848,913
Class A ordinary shares
SHAREHOLDERS' EQUITY
Ordinary shares	1,188	172	1,176
Class B ordinary shares
SHAREHOLDERS' EQUITY
Ordinary shares	¥ 235	$ 34	¥ 235

CONSOLIDATED BALANCE SHEETS (Parentheticals) ¥ in Thousands	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2022 $ / shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2021 $ / shares
Accounts receivable, allowance for credit loss \| ¥	¥ 327		¥ 467
Prepayments and other current assets, allowance for credit losses \| ¥	4,427		2,192
Other noncurrent assets, allowance for credit losses \| ¥	¥ 4,572		¥ 3,757
Ordinary shares, shares issued	1,954,353,892		1,929,562,426
Ordinary shares, shares outstanding	1,954,353,892		1,929,562,426
Class A ordinary shares
Ordinary shares, par value \| $ / shares		$ 0.0001		$ 0.0001
Ordinary shares, shares authorized	4,500,000,000		4,500,000,000
Ordinary shares, shares issued	1,728,765,894		1,709,903,330
Ordinary shares, shares outstanding	1,598,541,812		1,573,750,346
Class B ordinary shares
Ordinary shares, par value \| $ / shares		$ 0.0001		$ 0.0001
Ordinary shares, shares authorized	500,000,000		500,000,000
Ordinary shares, shares issued	355,812,080		355,812,080
Ordinary shares, shares outstanding	355,812,080		355,812,080

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares
Revenues:
Total revenues	¥ 45,286,816	$ 6,565,971	¥ 27,009,779	¥ 9,456,609
Cost of sales:
Total cost of sales	(36,496,360)	(5,291,474)	(21,248,325)	(7,907,270)
Gross profit	8,790,456	1,274,497	5,761,454	1,549,339
Operating expenses:
Research and development	(6,780,032)	(983,012)	(3,286,389)	(1,099,857)
Selling, general and administrative	(5,665,301)	(821,391)	(3,492,385)	(1,118,819)
Total operating expenses	(12,445,333)	(1,804,403)	(6,778,774)	(2,218,676)
Loss from operations	(3,654,877)	(529,906)	(1,017,320)	(669,337)
Other (expense)/income
Interest expense	(106,340)	(15,418)	(63,244)	(66,916)
Interest income and investment income, net	976,229	141,540	740,432	254,916
Changes in fair value of warrants and derivative liabilities				272,327
Others, net	625,633	90,708	187,320	20,133
Loss before income tax expense	(2,159,355)	(313,076)	(152,812)	(188,877)
Income tax benefit/(expense)	127,007	18,414	(168,643)	22,847
Net loss from continuing operations	(2,032,348)	(294,662)	(321,455)	(166,030)
Net income from discontinued operations, net of tax				14,373
Net loss	(2,032,348)	(294,662)	(321,455)	(151,657)
Accretion on convertible redeemable preferred shares to redemption value	0		0	(651,190)
Effect of exchange rate changes on convertible redeemable preferred shares				10,862
Less: Net loss attributable to noncontrolling interests	(20,133)	(2,919)
Net loss attributable to ordinary shareholders of Li Auto Inc.	(2,012,215)	(291,743)	(321,455)	(791,985)
Including: Net loss from continuing operations attributable to ordinary shareholders	¥ (2,012,215)	$ (291,743)	¥ (321,455)	(806,358)
Net income from discontinued operations attributable to ordinary shareholders				¥ 14,373
Weighted average number of ordinary shares used in computing net loss per share
Basic \| shares	1,941,230,998	1,941,230,998	1,853,320,448	870,003,278
Weighted average number of ordinary shares used in computing net loss per share - Diluted
Diluted \| shares	1,941,230,998	1,941,230,998	1,853,320,448	870,003,278
Net loss per share attributable to ordinary shareholders
Continuing operations \| (per share)	¥ (1.04)	$ (0.15)	¥ (0.17)	¥ (0.93)
Discontinued operations \| ¥ / shares				0.02
Net loss per share \| (per share)	(1.04)	(0.15)	(0.17)	(0.91)
Net loss per share attributable to ordinary shareholders - Diluted
Continuing operations \| (per share)	(1.04)	(0.15)	(0.17)	(0.93)
Discontinued operations \| ¥ / shares				0.02
Net loss per share \| (per share)	¥ (1.04)	$ (0.15)	¥ (0.17)	¥ (0.91)
Net loss	¥ (2,032,348)	$ (294,662)	¥ (321,455)	¥ (151,657)
Other comprehensive (loss)/income
Foreign currency translation adjustment, net of tax	1,327,761	192,507	(516,687)	(1,020,728)
Total other comprehensive (loss)/income	1,327,761	192,507	(516,687)	(1,020,728)
Total comprehensive loss	(704,587)	(102,155)	(838,142)	(1,172,385)
Accretion on convertible redeemable preferred shares to redemption value	0		0	(651,190)
Effect Of Exchange Rate Changes On Convertible Redeemable Preferred Shares				10,862
Less: Net loss attributable to noncontrolling interests	(20,133)	(2,919)
Comprehensive loss attributable to ordinary shareholders of Li Auto Inc.	(684,454)	(99,236)	(838,142)	(1,812,713)
Vehicle sales
Revenues:
Total revenues	44,106,434	6,394,832	26,128,469	9,282,703
Cost of sales:
Total cost of sales	(35,688,343)	(5,174,323)	(20,755,578)	(7,763,628)
Other Sales And Services
Revenues:
Total revenues	1,180,382	171,139	881,310	173,906
Cost of sales:
Total cost of sales	¥ (808,017)	$ (117,151)	¥ (492,747)	¥ (143,642)

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands	Treasury Shares CNY (¥) shares	Ordinary Shares Class A Ordinary Shares IPO and concurrent private placement CNY (¥) shares	Ordinary Shares Class A Ordinary Shares Follow-on offering CNY (¥) shares	Ordinary Shares Class A Ordinary Shares CNY (¥) shares	Ordinary Shares Class B Ordinary Shares CNY (¥) shares	Additional Paid-in Capital IPO and concurrent private placement CNY (¥)	Additional Paid-in Capital Follow-on offering CNY (¥)	Additional Paid-in Capital CNY (¥)	Accumulated Other Comprehensive Loss CNY (¥)	Accumulated Deficit Cumulative effect of adoption of credit loss guidance CNY (¥)	Accumulated Deficit CNY (¥)	Noncontrolling Interests CNY (¥)	Cumulative effect of adoption of credit loss guidance CNY (¥)	Class A Ordinary Shares shares	Class B Ordinary Shares shares	IPO and concurrent private placement CNY (¥)	Follow-on offering CNY (¥)	CNY (¥) shares	USD ($) shares
Balance at the beginning of period at Dec. 31, 2019				¥ 10	¥ 155				¥ 15,544		¥ (5,690,240)							¥ (5,674,531)
Balance at the beginning of period (in shares) at Dec. 31, 2019 \| shares				15,000,000	240,000,000
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Accretion on convertible redeemable preferred shares to redemption value											(651,190)							(651,190)
Effect of exchange rate changes on convertible redeemable preferred shares											10,862							10,862
Foreign currency translation adjustment, net of tax									(1,020,728)									(1,020,728)
Share issuance, net of issuance costs		¥ 199	¥ 71			¥ 11,023,348	¥ 9,999,862									¥ 11,023,547	¥ 9,999,933
Share issuance, net of issuance costs (in shares) \| shares		284,586,955	108,100,000
Share issuance upon the conversion and re-designation of preferred shares into Class A and Class B ordinary shares				¥ 730	¥ 80			¥ 14,723,086										14,723,896
Share issuance upon the conversion and re-designation of preferred shares into Class A and Class B ordinary shares (in shares) \| shares				1,045,789,275	115,812,080
Exercise of conversion features of preferred shares upon the consummation of US IPO								1,400,670										1,400,670
Share-based compensation								142,795										142,795
Net loss											(151,657)							(151,657)
Balance at the end of period at Dec. 31, 2020				¥ 1,010	¥ 235			37,289,761	(1,005,184)		(6,482,225)							29,803,597
Balance at the end of period (in shares) at Dec. 31, 2020 \| shares				1,453,476,230	355,812,080
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Accretion on convertible redeemable preferred shares to redemption value																		0
Foreign currency translation adjustment, net of tax									(516,687)									(516,687)
Share issuance, net of issuance costs				¥ 74				10,995,213										10,995,287
Share issuance, net of issuance costs (in shares) \| shares				113,869,700
Issuance of ordinary shares as treasury shares	¥ (22)			¥ 22
Issuance of ordinary shares as treasury shares ( Shares) \| shares	(34,000,000)			34,000,000
Issuance of ordinary shares for granting Award Shares to CEO	¥ (70)			¥ 70				70										70
Issuance of ordinary shares for granting Award Shares to CEO (Shares) \| shares	(108,557,400)			108,557,400
Exercise of share options	¥ 3							4,086										4,089
Exercise of share options (Shares) \| shares	6,404,416
Share-based compensation								1,101,356										1,101,356
Net loss											(321,455)							(321,455)
Balance at the end of period at Dec. 31, 2021	¥ (89)			¥ 1,176	¥ 235			49,390,486	(1,521,871)	¥ (1,955)	(6,805,635)		¥ (1,955)					¥ 41,064,302
Balance at the end of period (in shares) at Dec. 31, 2021 \| shares				1,709,903,330	355,812,080									1,709,903,330	355,812,080			1,929,562,426	1,929,562,426
Balance at the end of period (in shares) at Dec. 31, 2021 \| shares	(136,152,984)
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Accretion on convertible redeemable preferred shares to redemption value																		¥ 0
Foreign currency translation adjustment, net of tax									1,327,761									1,327,761
Share issuance, net of issuance costs				¥ 12				2,421,699										¥ 2,421,711
Share issuance, net of issuance costs (in shares) \| shares				18,862,564
Issuance of ordinary shares as treasury shares ( Shares) \| shares																		12,206,256	12,206,256
Share-based compensation								2,053,165										¥ 2,053,165
Exercise of share options and vesting of RSUs (in shares) \| shares	5,928,902
Exercise of share options and vesting of RSUs	¥ 5							3,972										3,977
Capital injection by noncontrolling interests												¥ 347,739						347,739
Net loss											(2,012,215)	(20,133)						(2,032,348)	$ (294,662)
Balance at the end of period at Dec. 31, 2022	¥ (84)			¥ 1,188	¥ 235			¥ 53,869,322	¥ (194,110)		¥ (8,817,850)	¥ 327,606						¥ 45,186,307	$ 6,551,399
Balance at the end of period (in shares) at Dec. 31, 2022 \| shares				1,728,765,894	355,812,080									1,728,765,894	355,812,080			1,954,353,892	1,954,353,892
Balance at the end of period (in shares) at Dec. 31, 2022 \| shares	(130,224,082)

CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	¥ (2,032,348)	$ (294,662)	¥ (321,455)	¥ (151,657)
Net loss from discontinued operations, net of tax				(14,373)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	1,213,855	175,992	590,397	320,996
Share-based compensation expenses	2,053,165	297,681	1,101,356	142,795
Foreign exchange loss	2,887	419	46,593	3,710
Unrealized investment (income)/loss	9,438	1,367	13,797	(33,008)
Interest expense	29,627	4,296	60,628	65,249
Share of loss of equity method investees	10,449	1,515	83	2,520
Impairment loss related to property, plant and equipment	0		27,388	30,381
Inventory write-downs and losses on purchase commitments relating to inventory and loss on inventory obsolescence	1,127,332	163,448	62,031
Allowance for credit losses	2,910	422	6,415
Changes in fair value of warrants and derivative liabilities				(272,327)
Deferred income tax, net	(128,338)	(18,607)	168,643	(22,847)
Loss on disposal of property, plant and equipment	55,880	8,102	19,843	379
Changes in operating assets and liabilities:
Prepayments and other current assets	(1,172,064)	(169,933)	(99,421)	459,301
Inventories	(5,920,182)	(858,346)	(611,557)	(516,867)
Operating lease rightofuse assets	(766,681)	(111,158)	(675,322)	(766,779)
Operating lease liabilities	799,750	115,953	695,940	817,149
Other non-current assets	(745,320)	(108,061)	(633,307)	1,656
Trade receivable	72,211	10,470	(5,459)	(107,246)
Deferred revenue	5,020	728	287,577	344,530
Trade and notes payable	10,593,584	1,535,925	6,162,009	2,530,350
Amounts due to related parties	(30,266)	(4,388)	(11,751)	9,442
Accruals and other current liabilities	1,166,947	169,191	932,119	131,111
Other noncurrent liabilities	1,032,410	149,684	523,838	165,191
Net cash provided by continuing operating activities	7,380,266	1,070,038	8,340,385	3,139,656
Net cash provided by discontinued operating activities				148
Net cash provided by operating activities	7,380,266	1,070,038	8,340,385	3,139,804
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and intangible assets	(5,127,899)	(743,475)	(3,444,573)	(675,187)
Disposal of property, plant and equipment	4,528	656	38	535
Purchase of long-term investments	(713,775)	(103,488)		(65,000)
Placement of time deposits	(679,486)	(98,516)	(1,308,296)	(1,038,017)
Redemption of time deposits	514,242	74,558	1,630,773	601,968
Placement of short-term investments	(58,268,079)	(8,448,077)	(220,850,351)	(105,279,461)
Redemption of short-term investments	59,953,714	8,692,471	220,345,863	87,699,180
Placement of long-term financial instruments	(50,000)	(7,249)
Loan to a supplier				(6,000)
Net cash used in continuing investing activities	(4,364,661)	(632,816)	(4,257,244)	(18,797,430)
Net cash provided by discontinued investing activities				59,705
Net cash used in investing activities	(4,364,661)	(632,816)	(4,257,244)	(18,737,725)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issuance through an at-the-market equity offering program (the "ATM Offering"), net of issuance cost	2,462,300	357,000
Proceeds from exercise of stock options, share options and vesting of RSUs	6,728	975	1,139
Proceeds from borrowings	3,741,482	542,464	600,000
Repayment of borrowings	(661,118)	(95,853)		(144,700)
Repayment of unsecured corporate loan			(429,692)
Proceeds from issuance of convertible debt			5,533,238
Capital injection from noncontrolling interest	90,000	13,049
Proceeds from US IPO and concurrent private placements, net of issuance cost				11,034,685
Proceeds from HK IPO, net of issuance cost			11,004,778
Proceeds from issuance of ordinary shares			70
Proceeds from follow-on offering, net of issuance cost				9,990,955
Net cash provided by continuing financing activities	5,639,392	817,635	16,709,533	24,710,697
Net cash provided by financing activities	5,639,392	817,635	16,709,533	24,710,697
Effects of exchange rate changes on cash and cash equivalents and restricted cash	1,270,097	184,146	(472,129)	(376,646)
Net increase in cash, cash equivalents and restricted cash	9,925,094	1,439,003	20,320,545	8,736,130
Cash, cash equivalents and restricted cash at beginning of the year	30,493,064	4,421,079	10,172,519	1,436,389
Cash, cash equivalents and restricted cash at end of the year	40,418,158	5,860,082	30,493,064	10,172,519
Supplemental schedule of noncash investing and financing activities
Payable related to acquisition of Chongqing Zhizao			(2,000)	(79,552)
Payable related to purchase of property, plant and equipment	(2,629,834)	(381,290)	(456,395)	(118,181)
Property, plant and equipment and other assets related to capital injection by noncontrolling interest shareholders	228,668	33,154
Supplemental Disclosures
Cash paid for interest, net of amounts capitalized	(87,935)	(12,749)	(10,173)	(613)
Changzhou Chehejin
CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid related to acquisition, net of cash acquired			(563,118)
Chongqing Zhizao
CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid related to acquisition, net of cash acquired			¥ (67,580)	(35,448)
Changzhou Huixiang
CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid related to acquisition, net of cash acquired	¥ 2,094	$ 304
Series D Convertible Redeemable Preferred Shares
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of Series D convertible redeemable preferred shares				¥ 3,829,757

Organization and Nature of Operations

12 Months Ended

Dec. 31, 2022

Organization and Nature of Operations

Organization and Nature of Operations

1.	Organization and Nature of Operations

(a)Principal activities

Li Auto Inc. (“Li Auto”, or the “Company”) was incorporated under the laws of the Cayman Islands in April 2017 as an exempted company with limited liability. The Company, through its consolidated subsidiaries and the consolidated variable interest entities (the “VIEs”) and the VIEs’ subsidiaries (collectively, the “Group”), is primarily engaged in the design, development, manufacturing, and sales of new energy vehicles and providing other sales and services in the People’s Republic of China (the “PRC”).

(b)History of the Group and basis of presentation

In preparation for the Listing on the main board of the Stock Exchange of Hong Kong Limited (“HKEx”), the Group underwent reorganization of its corporate structure (the “2021 Reorganization”) in the second quarter of 2021. The major reorganization steps were as follows:

●

In accordance with the requirements under the Listing Decision LD43-3 of HKEx to the extent practicable, the Company underwent reorganization of the holding structure of its onshore subsidiaries and the VIEs. The 2021 Reorganization mainly involved changing certain VIEs to wholly owned or partly-owned subsidiaries of the Company, to the extent permitted under the relevant PRC laws and regulations. Please refer to Note 1 (b) (i) and (ii).

●

In April, 2021, certain new contractual arrangements were entered into to replace the original contractual arrangements in place before the completion of 2021 Reorganization. Upon the completion of 2021 Reorganization, Beijing CHJ Information Technology Co., Ltd. (or “Beijing CHJ”) and Leading Ideal HK Limited’s (“Leading Ideal HK’s”) subsidiary each held 50% of equity interest of Chongqing Lixiang Automobile which was previously a wholly owned subsidiary of Beijng CHJ.

The transactions relating to the 2021 Reorganization were accounted for as common control transactions within the Group. Accordingly, the Group’s consolidated financial information was not impacted as a result of these transactions.

In March 2022, Beijing CHJ transferred its equity interest of Chongqing Lixiang Automobile to Leading Ideal HK’s subsidiary. Consequently, Chongqing Lixiang Automobile became a wholly owned subsidiary of the Company. The transaction was accounted for a common control transaction within the Group; accordingly, there was no impact to the Group’s consolidated financial information.

The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries, the consolidated VIEs and the VIEs’ subsidiaries.

1. Organization and Nature of Operations (Continued)

As of December 31, 2022, the Company’s principal subsidiaries, the consolidated VIEs and the VIEs’ subsidiaries are as follows:



	Equity Interest Held		Date of Incorporation or Date of Acquisition	Place of Incorporation	Principal Activities	Notes
Subsidiaries
Leading Ideal HK Limited (“Leading Ideal HK”)	100	%	May 15, 2017	Hong Kong, China	Investment holding
Beijing Co Wheels Technology Co., Ltd. (“Wheels Technology”)	100	%	December 19, 2017	Beijing, PRC	Technology development and corporate management
Beijing Leading Automobile Sales Co., Ltd.(“Beijing Leading”)	100	%	August 6, 2019	Beijing, PRC	Sales and after sales management
Jiangsu Xindian Interactive Sales and Services Co., Ltd. (“Jiangsu XD”)	100	%	May 8, 2017	Changzhou, PRC	Sales and after sales management	(i)
Chongqing Lixiang Automobile Co., Ltd. (“Chongqing Lixiang Automobile”)	100	%	October 11, 2019	Chongqing, PRC	Manufacturing of automobile and purchase of manufacturing equipment	(ii)
			Date of Incorporation	Place of Incorporation	Principal Activities	Notes
The VIEs
Beijing CHJ Information Technology Co., Ltd. (“Beijing CHJ”)			April 10, 2015	Beijing, PRC	Technology development
Beijing Xindian Transport Information Technology Co., Ltd. (“Xindian Information”)			March 27, 2017	Beijing, PRC	Technology development

Notes:

(i)

Jiangsu XD was Beijing CHJ’s subsidiary before the 2021 Reorganization.

(ii)

Upon the completion of 2021 Reorganization, Beijing CHJ and Leading Ideal HK’s subsidiary each held a 50% equity interest in Chongqing Lixiang Automobile which was previously a wholly owned subsidiary of Beijing CHJ. In March 2022, Beijing CHJ transferred its equity interest of Chongqing Lixiang Automobile to Leading Ideal HK’s subsidiary. Consequently, Chongqing Lixiang Automobile became a wholly owned subsidiary of the Company.

1. Organization and Nature of Operations (Continued)

(c)Variable interest entity

The Company’s subsidiary Wheels Technology has entered into contractual arrangements with Beijing CHJ and Xindian Information (collectively the “VIEs”) and their respective shareholders. Through these arrangements the Company has a controlling financial interest (and is the primary beneficiary) in each of the VIEs (as defined under ASC 810) and, accordingly, consolidates each VIE under US GAAP.

The following is a summary of the contractual arrangements by and among Wheels Technology, the VIEs, and their respective shareholders.

Powers of Attorney and Business Operation Agreement.

Each shareholder of Beijing CHJ signed a power of attorney to irrevocably authorize Wheels Technology to act as his or her attorney in-fact to exercise all of his or her rights as a shareholder of Beijing CHJ, including the right to convene shareholder meetings, the right to vote and sign any resolution as a shareholder, the right to appoint directors, supervisors, and officers, and the right to sell, transfer, pledge, and dispose of all or a portion of the equity interest held by such shareholder. These powers of attorney will remain in force for 10 years. Upon request by Wheels Technology, each shareholder of Beijing CHJ shall extend the term of its authorization prior to its expiration.

Pursuant to the Business Operation Agreements entered into in April 2021 by and among Wheels Technology, Xindian Information, and each of the shareholders of Xindian Information, Xindian Information will not take any action that may have a material adverse effect on its assets, businesses, human resources, rights, obligations, or business operations without prior written consent of Wheels Technology. Xindian Information and its shareholders further agreed to accept and strictly follow Wheels Technology’s instructions relating to Xindian Information’s daily operations, financial management, and election of directors appointed by Wheels Technology. The shareholders of Xindian Information agree to transfer any dividends or any other income or interests they receive as the shareholders of Xindian Information immediately and unconditionally to Wheels Technology. Unless Wheels Technology terminates this agreement in advance, this agreement will remain effective for 10 years and can be renewed upon request by Wheels Technology prior to its expiration. Xindian Information and its shareholders have no right to terminate this agreement unilaterally. Pursuant to the Business Operation Agreement, each shareholder of Xindian Information has executed a power of attorney to irrevocably authorize Wheels Technology to act as his or her attorney-in-fact to exercise all of his or her rights as a shareholder of Xindian Information. The terms of these powers of attorney are substantially similar to the powers of attorney executed by the shareholders of Beijing CHJ described above.

Spousal Consent Letters.

Spouses of nine shareholders of Beijing CHJ, who collectively hold 100% of equity interests in Beijing CHJ, have each signed a spousal consent letter. Each signing spouse of the relevant shareholder acknowledges that the equity interests in Beijing CHJ held by the relevant shareholder of Beijing CHJ are the personal assets of that shareholder and not jointly owned by the married couple. Each signing spouse also has unconditionally and irrevocably disclaimed his or her rights to the relevant equity interests and any associated economic rights or interests to which he or she may be entitled pursuant to applicable laws, and has undertaken not to make any assertion of rights to such equity interests and the underlying assets. Each signing spouse has agreed and undertaken that he or she will not carry out in any circumstances any conducts that are contradictory to the contractual arrangements and the spousal consent letter.

Spouses of nine shareholders of Xindian Information, who collectively hold 98.1% equity interests in Xindian Information, have each signed a spousal consent letter, which includes terms substantially similar to the spousal consent letter relating to Beijing CHJ described above.

1. Organization and Nature of Operations (Continued)

Exclusive Consultation and Service Agreements.

Pursuant to the Exclusive Consultation and Service Agreement entered into in April 2021 by and between Wheels Technology and Beijing CHJ, Wheels Technology has the exclusive right to provide Beijing CHJ with software technology development, technology consulting, and technical services required by Beijing CHJ’s business. Without Wheels Technology’s prior written consent, Beijing CHJ cannot accept any same or similar services subject to this agreement from any third party. Beijing CHJ agrees to pay Wheels Technology an annual service fee at an amount that is equal to 100% of its quarterly net income, after making up losses from previous years, or an amount that is adjusted in accordance with Wheels Technology’s sole discretion for the relevant quarter and also the mutually agreed amount for certain other technical services, both of which should be paid within 10 days after Wheels Technology sends invoice within 30 days after the end of the relevant calendar quarter. Wheels Technology has exclusive ownership of all the intellectual property rights created as a result of the performance of the Exclusive Consultation and Service Agreement, to the extent permitted by applicable PRC laws. To guarantee Beijing CHJ’s performance of its obligations thereunder, the shareholders have agreed to pledge their equity interests in Beijing CHJ to Wheels Technology pursuant to the Equity Pledge Agreement. The Exclusive Consultation and Service Agreement will remain effective for 10 years, unless otherwise terminated by Wheels Technology. Upon request by Wheels Technology, the term of this agreement can be renewed prior to its expiration.

In April 2021, Wheels Technology, Xindian Information, and each of the shareholders of Xindian Information entered into an exclusive consultation and service agreement, which includes terms substantially similar to the Exclusive Consultation and Service Agreement relating to Beijing CHJ described above.

Equity Option Agreements.

Pursuant to the Equity Option Agreement entered into in April 2021 by and among Wheels Technology, Beijing CHJ, and each of the shareholders of Beijing CHJ, the shareholders of Beijing CHJ have irrevocably granted Wheels Technology an exclusive option to purchase all or part of their equity interests in Beijing CHJ, and Beijing CHJ has irrevocably granted Wheels Technology an exclusive option to purchase all or part of its assets. Wheels Technology or its designated person may exercise such options to purchase equity interests at the lower of the amount of their respective paid-in capital in Beijing CHJ and the lowest price permitted under applicable PRC laws. Wheels Technology or its designated person may exercise the options to purchase assets at the lowest price permitted under applicable PRC laws. The shareholders of Beijing CHJ have undertaken that, without Wheels Technology’s prior written consent, they will not, among other things, (i) transfer or otherwise dispose of their equity interests in Beijing CHJ, (ii) create any pledge or encumbrance on their equity interests in Beijing CHJ, (iii) change Beijing CHJ’s registered capital, (iv) merge Beijing CHJ with any other entity, (v) dispose of Beijing CHJ’s material assets (except in the ordinary course of business), or (vi) amend Beijing CHJ’s articles of association. The Exclusive Option Agreement will remain effective for 10 years and can be renewed upon request by Wheels Technology.

In April 2021, Wheels Technology, Xindian Information, and each of the shareholders of Xindian Information entered into an equity option agreement, which includes terms substantially similar to the equity option agreement relating to Beijing CHJ described above.

Equity Pledge Agreements.

Pursuant to the Equity Pledge Agreement entered into in April 2021 by and between Wheels Technology and the shareholders of Beijing CHJ, the shareholders of Beijing CHJ have agreed to pledge 100% of equity interests in Beijing CHJ to Wheels Technology to guarantee the performance by the shareholders of their obligations under the Exclusive Option Agreement and the Powers of Attorney, as well as the performance by Beijing CHJ of its obligations under the Exclusive Option Agreement, the Powers of Attorney, and payment of services fees to Wheels Technology under the Exclusive Consultation and Service Agreement. In the event of a breach by Beijing CHJ or any shareholder of contractual obligations under the Equity Pledge Agreement, Wheels Technology, as pledgee, will have the right to dispose of the pledged equity interests in Beijing CHJ and will have priority in receiving the proceeds from such disposal. The shareholders of Beijing CHJ also have undertaken that, without prior written consent of Wheels Technology, they will not dispose of, create, or allow any encumbrance on the pledged equity interests.

1. Organization and Nature of Operations (Continued)

In April 2021, Wheels Technology, Xindian Information, and each of the shareholders of Xindian Information entered into an Equity Pledge Agreement, which includes terms substantially similar to the Equity Pledge Agreement relating to Beijing CHJ described above.

The registration of the equity pledge relating to Beijing CHJ and Xindian Information with the competent office of the SAMR in accordance with the PRC Property Law has been completed.

(d)Risks in relations to the VIE structure

According to the Guidance Catalogue of Industries for Foreign Investment promulgated in 2017, or the Catalogue, foreign ownership of certain areas of businesses are subject to restrictions under current PRC laws and regulations. Pursuant to the 2021 Negative List, foreign investors are not allowed to own more than 50% of the equity interests in a value-added telecommunication service provider (excluding e-commerce, domestic multiparty communications, store-and-forward, and call centers). In addition, foreign investors are prohibited from investing in companies engaging in internet culture businesses (except for music) and radio and television program production businesses.

Part of the Group’s business is conducted through the VIEs of the Group, of which the Company is the ultimate primary beneficiary. In the opinion of the management, the contractual arrangements with the VIEs and the nominee shareholders are in compliance with PRC laws and regulations and are legally binding and enforceable. The nominee shareholders indicate they will not act contrary to the contractual arrangements. However, there are substantial uncertainties regarding the interpretation and application of the PRC laws and regulations including those that govern the contractual arrangements, which could limit the Group’s ability to enforce these contractual arrangements and if the nominee shareholders of the VIEs were to reduce their interests in the Group, their interest may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual arrangements.

It is possible that the Group’s operations of certain of its businesses through the VIEs could be found by the PRC authorities to be in violation of the PRC laws and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. While the Group’s management considers the possibility of such a finding by PRC regulatory authorities under current PRC law and regulations to be remote, on March 15, 2019, the National People’s Congress adopted the Foreign Investment Law of the PRC, which came into effect on January 1, 2020 and replaced the trio of existing laws regulating foreign investment in China, namely, the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreign Cooperative Joint Venture Enterprise Law, and the Wholly Foreign-invested Enterprise Law, together with their implementation rules and ancillary regulations. The Foreign Investment Law of the PRC embodies an expected PRC regulatory trend to rationalize its foreign investment regulatory regime in line with prevailing international practice and the legislative efforts to unify the corporate legal requirements for both foreign and domestic investments. However, since it is relatively new, uncertainties still exist in relation to its interpretation and implementation. For example, the Foreign Investment Law of the PRC adds a catch-all clause to the definition of “foreign investment” so that foreign investment, by its definition, includes “investments made by foreign investors in China through other means defined by other laws or administrative regulations or provisions promulgated by the State Council” without further elaboration on the meaning of “other means”. It leaves leeway for the future legislations promulgated by the State Council to provide for contractual arrangements as a form of foreign investment. It is therefore uncertain whether the Group’s corporate structure will be seen as violating the foreign investment rules as the Group are currently leveraging the contractual arrangements to operate certain businesses in which foreign investors are prohibited from or restricted to investing. Furthermore, if future legislations prescribed by the State Council mandate further actions to be taken by companies with respect to existing contractual arrangement, the Group may face substantial uncertainties as to whether the Group can complete such actions in a timely manner, or at all. If the Group fail to take appropriate and timely measures to comply with any of these or similar regulatory compliance requirements, the Group’s current corporate structure, corporate governance and business operations could be materially and adversely affected.

1. Organization and Nature of Operations (Continued)

If the Company’s ownership structure, contractual arrangements, and businesses of the Company’s PRC subsidiaries or VIEs are found to be in violation of any existing or future PRC laws or regulations, or PRC subsidiaries or VIEs fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion to take action in dealing with such violations or failures, including:

●

revoke the business licenses and/or operating licenses of such entities;

●

shut down our servers or blocking the website or mobile application, or discontinue or place restrictions or onerous conditions on the Group’s operation through any transactions between the PRC subsidiaries and the VIEs;

●

impose fines, confiscate the income from the PRC subsidiaries or the VIEs, or imposing other requirements with which the VIEs may not be able to comply;

●

require the Group to restructure the ownership structure or operations, including terminating the contractual arrangements with the VIEs and deregistering the equity pledges of the VIEs, which in turn would affect the Group’s ability to consolidate, derive economic interests from, or exert effective control over the VIEs;

●

restrict or prohibit the Group’s use of the proceeds of this offering to finance the Group’s business and operations in China; or

●

take other regulatory or enforcement actions that could be harmful to the Group’s business.

The imposition of any of these penalties may result in a material and adverse effect on the Group’s ability to conduct the Group’s businesses. In addition, if the imposition of any of these penalties causes the Group to lose the right to direct the activities of any of the VIEs (through its equity interests in its subsidiaries) or the right to receive their economic benefits, the Group will no longer be able to consolidate the relevant VIEs and its subsidiaries, if any. In the opinion of management, the likelihood of loss in respect of the Group’s current ownership structure or the contractual arrangements with its VIEs is remote. The Group’s operations depend on the VIEs and their nominee shareholders to honor their contractual arrangements with the Group. These contractual arrangements are governed by PRC law and disputes arising out of these agreements are expected to be decided by arbitration in the PRC. The management believes that each of the contractual arrangements constitutes valid and legally binding obligations of each party to such contractual arrangements under the PRC laws. However, the interpretation and implementation of the laws and regulations in the PRC and their application on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIEs or the nominee shareholders of the VIEs fail to perform their obligations under those arrangements. The enforceability, and therefore the benefits, of the contractual agreements between the Company and the VIE depend on nominee shareholders enforcing the contracts. There is a risk that nominee shareholders of the VIEs, who in some cases are also shareholders of the Company, may have conflicts of interest with the Company in the future or fails to perform their contractual obligations. Given the significance and importance of the VIEs, there would be a significant negative impact to the Company if these contracts were not enforced.

The Group’s operations depend on the VIEs to honour their contractual agreements with the Group and the Company’s ability to control the VIEs also depends on the authorization by the shareholders of the VIEs to exercise voting rights on all matters requiring shareholder approval in the VIEs. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable and the possibility that it will no longer be able to control and consolidate the VIEs as a result of the aforementioned risks and uncertainties is remote.

1. Organization and Nature of Operations (Continued)

The following consolidated financial information of the Group’s VIEs and VIEs’ subsidiaries as of December 31, 2021 and 2022 and for the years ended December 31, 2020, 2021 and 2022 were included in the accompanying Group’s consolidated financial statements as follows:


	As of December 31,
	2021	2022
	RMB	RMB
Current assets:
Cash and cash equivalents	5,311,800	18,529,655
Restricted cash	2,415,941	977,346
Time deposits and short-term investments	8,326,541	8,344,332
Trade receivable	103,056	—
Amounts due from the Group companies⁽¹⁾	23,402,104	37,885,882
Inventories	1,396,992	254
Prepayments and other current assets	220,402	168,160
Total current assets	41,176,836	65,905,629
Non‑current assets:
Long‑term investments	97,854	142,539
Property, plant and equipment, net⁽²⁾	2,329,507	101,577
Operating lease right‑of‑use assets, net	731,874	693,111
Intangible assets, net	703,274	740,570
Other non‑current assets	1,107,674	583,967
Total non-current assets	4,970,183	2,261,764
Total assets	46,147,019	68,167,393
Current liabilities:
Short‑term borrowings	31,547	—
Trade and notes payable⁽²⁾	8,547,181	1,323,196
Amounts due to the Group companies⁽¹⁾	31,999,140	60,539,514
Amounts due to related parties	1,277	23
Operating lease liabilities, current	80,606	40,707
Accruals and other current liabilities	515,036	334,333
Total current liabilities	41,174,787	62,237,773
Non‑current liabilities:
Long-term borrowings	479,453	500,000
Deferred revenue, non‑current	8,704	—
Operating lease liabilities, non‑current	719,628	738,673
Deferred tax liabilities, non-current	153,723	2,979
Other non‑current liabilities	14,333	7,720
Total non-current liabilities	1,375,841	1,249,372
Total liabilities	42,550,628	63,487,145
Total shareholders’ equity	3,596,391	4,680,248
Total liabilities and shareholders’ equity	46,147,019	68,167,393

These balances have been reflected in the Group’s consolidated financial statements with intercompany transactions eliminated.

1. Organization and Nature of Operations (Continued)


	For the Year Ended December 31,
	2020	2021	2022

Third-party revenues⁽³⁾	8,001,067	6,294,675	—
Inter-company revenues⁽⁴⁾	8,553,798	22,287,788	7,211,082

Third-party cost	(7,790,586)	(20,171,861)	(4,534,351)
Inter-company cost⁽⁴⁾	(7,877,944)	(5,891,611)	(8,290)

Third-party expenses	(1,358,507)	(2,401,187)	(1,638,834)
Inter-company expenses	(25,858)	(65,750)	(302)

Share of loss from subsidiaries	(1,179)	(13)	—
Other income / (expense)	40,309	2,610,121	(358,394)
(Loss)/Income before income tax expense	(458,900)	2,662,162	670,911
Income tax (expense) / benefit	(36,309)	(117,413)	8,701
Net (loss)/income from continuing operations	(495,209)	2,544,749	679,612
Net income from discontinued operations	14,373	—	—
Net (loss)/income	(480,836)	2,544,749	679,612
Less: Net loss attributable to noncontrolling interests	(5,075)	—	—
Net (loss)/income attributable to ordinary shareholders of Li Auto Inc.	(475,761)	2,544,749	679,612


	For the Year Ended December 31,
	2020	2021	2022
Net cash provided by inter-company transactions⁽⁵⁾	2,194,342	7,341,282	2,834,408
Net cash provided by/(used in) other transactions	1,346,069	(8,693,141)	(10,922,189)
Net cash provided by/(used in) operating activities	3,540,411	(1,351,859)	(8,087,781)

Other investing activities with external entities	(1,665,982)	(8,641,045)	(2,149,494)
Net cash used in investing activities	(1,665,982)	(8,641,045)	(2,149,494)

Inter-company loan financing from Group companies	795,295	14,858,966	20,417,626
Other financing activities with external entities	(144,700)	81,308	1,598,877
Net cash provided by financing activities	650,595	14,940,274	22,016,503
Effects of exchange rate changes on cash, cash equivalents and restricted cash	(188)	—	32
Net increase in cash, cash equivalents and restricted cash	2,524,836	4,947,370	11,779,260
Cash, cash equivalents and restricted cash at beginning of the year	255,535	2,780,371	7,727,741
Cash, cash equivalents and restricted cash at end of the year	2,780,371	7,727,741	19,507,001

The Company’s involvement with the VIEs is through the contractual arrangements disclosed in Note 1(c). All recognized assets held by the VIEs are disclosed in the table above.

Notes:

(1)	The amounts due from Group companies represent the funds provided by the consolidated VIEs to the WFOEs, and the operating receivables resulting from the provision of goods and services to WFOEs;

The amounts due to Group companies represent the funds provided by Group companies to the consolidated VIEs, and the operating payables resulting from the technical service fees charged by WFOEs.

1. Organization and Nature of Operations (Continued)

(2)	The decrease in property, plant and equipment, net and trade and notes payable relates primarily to the transfer of Chongqing Lixiang Automobile’s equity interest from a VIE to Leading Ideal HK’s subsidiary as described in Note 1(b).

(3)

Third-party revenues were solely generated from sales of vehicles to customers by certain of the VIE subsidiaries before the 2021 Reorganization as described in Note 1(b). No third-party revenues were generated by the VIEs in 2022 as these same VIE subsidiaries have become equity owned/controlled subsidiaries after the 2021 Reorganization.

(4)

Represents the inter-group revenues for technical service fees, inter-company sales of vehicles and transfer of intangible assets and inter-group costs recognized by the consolidated VIEs related to the sales of vehicles and transfer of intangible assets between the consolidated VIEs and subsidiaries of the Group. There were no management fees paid by VIEs to WOFEs as the VIEs were in each in an accumulated deficit position as of December 31, 2022.

(5)

For the years ended December 31, 2020, 2021, and 2022, cash paid by subsidiaries to VIEs for technical service fees, inter-company sales of vehicles and inter-company transfer of intangible assets were RMB2,194,342, RMB7,341,282 and RMB2,834,408, respectively. For the years ended December 31, 2020, 2021 and 2022, no management fees were paid by VIEs to Wheels Technology as each of the VIEs was in an accumulated deficit as of December 31, 2022 (pursuant to each management fee arrangement with the VIEs).

As a result of the contractual arrangements between Wheels Technology, the VIEs and the VIEs’ shareholders, Wheels Technology has a controlling financial interest and is the primary beneficiary (pursuant to ASC 810) in the Group’s consolidated VIEs and the VIEs’ subsidiaries and can have assets transferred out of the such VIEs and VIEs’ subsidiaries without restriction. Therefore, it is considered that there is no asset in the Group’s VIEs and the VIEs’ subsidiaries that can be used only to settle their obligations except for registered capitals and PRC statutory reserves of the Group’s consolidated VIEs amounting to RMB7,103,472 and RMB5,230,100 as of December 31, 2021 and 2022, respectively. As the Group’s consolidated VIEs and VIEs’ subsidiaries are incorporated as limited liability companies under the PRC Company Law, the creditors do not have recourse to the general credit of Wheels Technology for all the liabilities of the Group’s consolidated VIEs and VIEs’ subsidiaries. The accumulated deficit of the Group’s consolidated VIEs and VIEs’ subsidiaries was RMB1,229,463 and RMB549,853 as of December 31, 2021 and 2022, respectively. For the years ended December 31, 2020, 2021 and 2022, no management fees were paid by VIEs to the WOFEs as each of the VIEs was in accumulated deficit as of December 31, 2022 (pursuant to each management fee arrangement with the VIEs).

Currently there is no contractual arrangement that could require the Company, Wheels Technology or other subsidiaries of the Company to provide additional financial support to the Group’s consolidated VIEs and VIEs’ subsidiaries. As the Company is conducting certain businesses in the PRC through the consolidated VIEs and VIEs’ subsidiaries, the Company may provide additional financial support on a discretionary basis in the future, which could expose the Group to a loss. The amount due to/from the Company and its subsidiaries represents the balances arising from inter-company sales of vehicles and intangible assets and inter-company loan financings.

(e)Impact of the COVID-19

Due to the COVID-19 pandemic and the related nationwide precautionary and control measures that were adopted in China starting in January 2020, the Company postponed the production in its Changzhou manufacturing facility after the Chinese New Year holiday in February 2020, and also experienced short term delays in the suppliers’ delivery of certain raw materials needed for production. As a result of varying levels of travel and other restrictions for public health concerns in various regions of China, the Group also temporarily postponed the delivery of Li ONE to customers. Following this temporary closure in February 2020, the Group reopened the retail stores and delivery and servicing centers and have resumed vehicle delivery to customers. Subsequent to March 31, 2020, the Group continuously increased their production capacity and delivery to normal level as the Group had recovered from the adverse impact of COVID-19 across China through the third quarter of 2021.

Since October 2021, the supply of semiconductor chips used for automotive manufacturing has experienced a global shortage following the disruption to semiconductor manufacturers due to the COVID-19 pandemic and an increase in global demand for personal computers for work-from-home economies. For example, due to the COVID-19 pandemic in Malaysia, the production of chips dedicated for the Group’s millimeter-wave radar supplier had been severely hampered, and the production and deliveries for the third quarter of 2021 had been adversely affected. Subsequent to December 2021, the Group gradually resumed normal vehicle production by continuing to obtain the chips or other semiconductor components at a reasonable cost from multiple sources.

1. Organization and Nature of Operations (Continued)

In late March and April 2022, the COVID-19 resurgence in the Yangtze Delta region of China caused renewed and severe industry-wide disruptions in supply chain, logistics and production. The Group’s Changzhou manufacturing base is located in the center of the Yangtze Delta region, which is home to over 80% of the Group’s parts suppliers, especially in Shanghai and Kunshan. Certain suppliers in Shanghai and Kunshan temporarily terminated the production or delivery of their products completely, resulting in the Group unable to maintain adequate inventory for production demand. This had a material adverse impact on production in April 2022, resulting in delayed deliveries for customers. The Group has been working with vendors to restore production capacity with the objective to shorten the delivery waiting time for Li ONE customers. Despite the significant ongoing industry-wide parts supply chain challenges resulting from the COVID-19 pandemic, the Group’s production and delivery of vehicles gradually began to resume and sustain pre-pandemic levels beginning in May 2022.

With the COVID-19 resurgence gradually under control and the Zero-COVID policy being modified by the Chinese government, most of the travel restrictions and quarantine requirements were lifted in December 2022. Following this change, the Group continued to expand its sales networks to meet the increasing demands from customers. Despite the impact of the COVID-19 resurgence, the Group reported a year-over-year revenue growth for the year ended December 31, 2022. In light of the uncertainties in the global market and economic conditions attributable to the COVID-19 pandemic, the Group will continue to evaluate the nature and extent of the impact of the COVID-19 pandemic to its financial condition and liquidity.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

(a)Basis of presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

Significant accounting policies followed by the Group in the preparation of its accompanying consolidated financial statements are summarized below.

(b)Principles of consolidation

The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary.

A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power; has the power to appoint or remove the majority of the members of the board of directors (the “Board”); to cast majority of votes at the meeting of the Board or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.

A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, has established a controlling financial interest (as defined in ASC 810) and is able to direct the activities and derive the economic benefits of the entity. Accordingly, the Company is considered the primary beneficiary of each VIE and consolidates each entity in accordance with US GAAP.

All significant transactions and balances between the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation.

(c)Use of estimates

The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenue and expenses during the reported period in the consolidated financial statements and accompanying notes.

2. Summary of Significant Accounting Policies (Continued)

Significant accounting estimates reflected in the Group’s consolidated financial statements, to the extent applicable, mainly include, but are not limited to, standalone selling price of each distinct performance obligation in revenue recognition and determination of the amortization period of these obligations, the determination of share-based compensation expenses, fair value of investments and derivative instruments, useful lives and assessment for impairment of long-lived assets and intangible assets, the provision for credit losses of financial assets, inventory valuation for excess and obsolete inventories, lower of cost and net realizable value of inventories, losses on purchase commitments relating to inventory, product warranties, and valuation allowance for deferred tax assets. Actual results could differ from these estimates under different assumptions and conditions.

(d)Functional currency and foreign currency translation

The Group’s reporting currency is the Renminbi (“RMB”). The functional currencies of the Company and its subsidiary which are incorporated in Hong Kong and Singapore are United States dollars (“US$”). The functional currencies of the other subsidiaries, the VIEs and the VIEs’ subsidiaries are their respective local currencies (“RMB”). The determination of the respective functional currency is based on the criteria set out by ASC 830, Foreign Currency Matters.

Transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated into functional currency using the applicable exchange rates at the balance sheet date. Non-monetary items that are measured in terms of historical cost in foreign currency are measured using the exchange rates at the dates of the initial transactions. Exchange gains or losses arising from foreign currency transactions are included in the consolidated statements of comprehensive income/(loss).

The financial statements of the Group’s entities of which the functional currency is not RMB are translated from their respective functional currency into RMB. Assets and liabilities denominated in foreign currencies are translated into RMB at the exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Income and expense items are translated into RMB using the periodic average exchange rates. The resulting foreign currency translation adjustments are recorded in other comprehensive income/(loss) in the consolidated statements of comprehensive income/(loss), and the accumulated foreign currency translation adjustments are presented as a component of accumulated other comprehensive income/(loss) in the consolidated statements of shareholders’ equity. Total foreign currency translation adjustment loss were RMB1,020,728 and RMB516,687 for the years ended December 31, 2020 and 2021, respectively, and foreign currency translation adjustment income was RMB1,327,761 for the year ended December 31, 2022.

(e)Convenience translation

Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive loss and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2022 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.8972, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 30, 2022. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2022, or at any other rate.

(f)Cash, cash equivalents and restricted cash

Cash and cash equivalents represent cash on hand, time deposits and highly liquid investments placed with banks or other financial institutions, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less. As of December 31, 2021 and 2022, the Group had cash held in accounts managed by online payment platforms such as China Union Pay in connection with the collection of vehicle sales for a total amount of RMB33,540 and RMB68,824, respectively, which have been classified as cash and cash equivalents on the consolidated balance sheets.

Cash that is restricted as to withdrawal for use or pledged as security is reported separately on the face of the consolidated balance sheets and is not included in the total cash and cash equivalents in the consolidated statements of cash flows. The Group’s restricted cash mainly represents (a) the secured deposits held in designated bank accounts for issuance of letter of credit, bank guarantee and bank acceptance bill; (b) the deposits held in designated bank accounts for security of the repayment of the notes payable (Note 14).

2. Summary of Significant Accounting Policies (Continued)

Cash, cash equivalents and restricted cash as reported in the consolidated statements of cash flows are presented separately on our consolidated balance sheets as follows:


	As of December 31,
	2021	2022
Cash and cash equivalents	27,854,224	38,478,016
Restricted cash	2,638,840	1,940,142
Total cash, cash equivalents and restricted cash	30,493,064	40,418,158

(g)Time deposits and short-term investments

Time deposits are those balances placed with the banks. These deposits that have original maturities longer than three months but less than one year are classified as short-term time deposits which are reflected in the consolidated balance sheets as “Time deposits and short‑term investments”, while the balances with original maturities longer than one year are classified as long-term time deposits which are reflected in the consolidated statements of balance sheets as “Long‑term investments”.

Short-term investments are investments in financial instruments with variable interest rates. These financial instruments which have maturity dates within one year are classified as short-term investments and are reflected in the consolidated statements of balance sheets as “Time deposits and short‑term investments”, while those financial instruments which have maturity dates longer than one year are classified as long-term investments in the consolidated statements of balance sheets. The Group elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Fair value is estimated based on quoted prices of similar financial products provided by financial institutions at the end of each period. Changes in the fair value are reflected in the consolidated statements of comprehensive income/(loss) as “Interest income and investment income, net”.

(h)Trade receivables and current expected credit losses

Trade receivables primarily includes commission service fee receivables derived from insurance companies and banks (the company earns such fees in facilitating customer use of services offered by these entities), and vehicle sale receivables related to government subsidies to be collected from the government on behalf of customers. The Group provides an allowance against trade receivables based on the expected credit loss approach (see below) and writes off trade receivables when they are deemed uncollectible. No material allowance for credit loss on trade receivables was recognized for the years ended December 31, 2021 and 2022.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses, which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments, including, but not limited to, trade and other receivables and net investments in leases. The Group assessed that trade receivables, other current assets, and other non-current assets are within the scope of ASC 326. The Group has identified the relevant risk characteristics of trade receivables, other current assets, and other non-current assets which include size, type of the services or the products the Group provides, or a combination of these characteristics, the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the lifetime expected credit losses, etc. Other key factors that influence the expected credit loss analysis include industry-specific factors that could impact the credit quality of the Group’s receivables. This is assessed at each quarter based on the Group’s specific facts and circumstances. All forward looking statements are, by their nature, subject to risks and uncertainties, many of which are beyond the Group’s control. Considering the macroeconomic and market turmoil caused by COVID-19, the Group is continuously monitoring data and trends and took the latest available information into consideration.

2. Summary of Significant Accounting Policies (Continued)

The Group adopted ASC 326 and several associated ASUs on January 1, 2021 using a modified retrospective approach with a cumulative effect recorded as an increase of accumulated deficit in the amount of RMB1,955. As of January 1, 2021, upon the adoption, the expected credit loss provisions for the current assets and non-current assets were RMB972 and RMB983, respectively. For the years ended December 31, 2021 and 2022, the Group recorded RMB6,415 and RMB2,910 in expected credit losses in selling, general and administrative expenses, respectively. As of December 31, 2021 and 2022, the expected credit loss reserves recorded in current assets were RMB2,659 and RMB4,754, and recorded in non-current assets were RMB3,757 and RMB4,572, respectively.

The Group typically does not carry significant trade receivables related to vehicle sales and related sales as customer payments are due prior to vehicle delivery, except for amounts of vehicle sales in relation to government subsidies to be collected from the government on behalf of customers. Other current assets and other non-current assets primarily consist of other receivables and deposits. The following table summarizes the activity in the allowance for credit losses related to trade receivables, other current assets and other non-current assets for the years ended December 31, 2021 and 2022:


	For the Years Ended December 31,
	2021	2022
Balance as of the beginning of the year	1,955	6,416
Provisions	6,415	24,163
Reversals	(1,954)	(21,253)
Balance as of the end of the year	6,416	9,326

(i)Derivative instruments

Derivative instruments are measured at fair value and recognized as either assets or liabilities on the consolidated balance sheets in either other current or non-current assets or other current liabilities or non-current liabilities depending upon maturity and commitment. Changes in the fair value of derivatives are either recognized periodically in the consolidated statements of comprehensive income/(loss) or in other comprehensive income/(loss) depending on the use of the derivatives and whether they qualify for hedge accounting.

The Group selectively uses financial instruments to manage market risk associated with exposure to fluctuations in foreign currency rates with foreign exchange forwards and option contracts. These financial exposures are monitored and managed by the Group as an integral part of its risk management program. The Group does not engage in derivative instruments for speculative or trading purposes. The Group’s derivative instruments are not qualified for hedge accounting, thus changes in fair value are recognized in “Interest income and investment income, net” in the consolidated statements of comprehensive income/(loss). The cash flows of derivative financial instruments are classified in the same category as the cash flows from the items subject to the economic hedging relationships. The estimated fair value of the derivatives is determined based on relevant market information. These estimates are calculated with reference to the market rates using industry standard valuation techniques.

Derivative instruments are presented as net if rights of setoff exist, with all of the following conditions met: (a) each of two parties owes the other determinable amounts; (b) the reporting party has the right to set off the amount owed with the amount owed by the other party; (c) the reporting party intends to set off; and (d) the right of setoff is enforceable at law.

The Group did not have any outstanding derivative account balances instruments as of December 31, 2021 and 2022 due to related maturities prior to December 31, 2021. The Group recorded a fair value gain of RMB73,824 and nil in Interest income and investment income, net on the consolidated statement of comprehensive loss for the years ended December 31, 2021 and 2022, respectively.

2. Summary of Significant Accounting Policies (Continued)

(j)Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is calculated on the weighted average basis and includes all costs to acquire and other costs to bring the inventories to their present location and condition. The Group records inventory write-downs for excess or obsolete inventories based upon assumptions on current and future demand forecasts. If the inventory on hand is in excess of future demand forecast, the excess amounts are written off. The Group also reviews inventory to determine whether its carrying value exceeds the net amount realizable upon the ultimate sale of the inventory. This requires the determination of the estimated selling price of the vehicles less the estimated cost to convert inventory on hand into a finished product. Once inventory is written-down, a new, lower-cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. The Company recognized nil, RMB51,256 and RMB1,112,015 in write-downs of inventories to net realizable value and losses on inventory purchase commitments in cost of sales for the years ended December 31, 2020, 2021 and 2022, respectively (Note 7).

(k)Property, plant and equipment, net

Property, plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any. Property, plant and equipment are depreciated at rates sufficient to write off their costs less impairment and residual value, if any, over their estimated useful lives on a straight-line basis. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Direct costs that are related to the construction of property, equipment and software and incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Interest expense on specific outstanding debt is capitalized during the period of significant capital asset construction. Capitalized interest expense on construction-in-progress is included within property, plant and equipment and is amortized over the life of the related assets. Motor vehicles represent vehicles used for the Group’s daily operation, including driving testing purpose. Construction in progress is transferred to specific property, equipment and the depreciation of these assets commences when the assets are ready for their intended use.

The estimated useful lives are as follows:


		Useful Lives
Buildings		20 years
Buildings improvements		5 to 10 years
Production machineries and facilities		3 to 10 years
Equipment		3 to 5 years
Motor vehicles		2 to 4 years
Mold and tooling		Unit-of-production
Leasehold improvements		Shorter of the estimated useful life or lease term

The cost of maintenance and repairs is expensed as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, plant and equipment is capitalized as additions to the related assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from their respective accounts, and any gain or loss on such sale or disposal is reflected in the consolidated statements of comprehensive income/(loss).

The Company reviews the estimated useful lives of its Property, plant and equipment on an ongoing basis. In evaluating useful lives, the Company considers how long assets will remain functionally efficient and effective, given levels of production, competitive factors, and the economic environment. If the assessment indicates that the assets will continue to be used for a shorter or longer period than previously anticipated, the useful life of the assets is revised, resulting in a change in estimate. Changes in estimates are accounted for on a prospective basis by depreciating the assets’ current carrying values over their revised remaining useful lives.

2. Summary of Significant Accounting Policies (Continued)

As of December 31, 2022, the Company completed an assessment of the estimated units of production of certain mold and tooling and the useful lives of certain production facilities, all of which can only be used for Li ONE vehicle production. The Company’s assessment in the third quarter of 2022, which reflects the planned cessation of Li ONE production by the end of October 2022, indicated that certain production facilities directly used for Li ONE vehicle production will not be used for the period of time originally estimated. As a result, the Company changed its estimates of useful lives for the certain production facilities from 10 years to 3 years, after considering the Company’s planned model succession from 2021 Li ONE to Li L8. In addition, depreciation of certain mold and tooling that are directly used in Li ONE production was also accelerated based on management’s revised best estimate for 2021 Li ONE’s production volume using the unit-of-production depreciation method. As a result of these changes in estimates, which are treated prospectively, the Company recorded an increase in depreciation expense of RMB357,500, for the year ended December 31, 2022.

(l)Intangible assets, net

Definite lived intangible assets are carried at cost less accumulated amortization and impairment, if any. Definite lived intangible assets are amortized using the straight-line method over the estimated useful lives as below:


		Useful Lives
Software and Patents		5 to 10 years

The Company estimates the useful life of the software and patents to be 5 to 10 years based on the contract terms, expected technical obsolescence and innovations and industry experience of such intangible assets.

Intangible assets that have indefinite useful life represent the automotive manufacturing permission and the insurance agent license. The automotive manufacturing permission is necessary to produce the passenger vehicles. No useful life was determined in the contract terms when the Company acquired the automotive manufacturing permission and the insurance agent license. The Company expects that the permission and the license are unlikely to be terminated based on industry experience and will continue to contribute revenue in the future. Therefore, the Company considers the useful life of these intangible assets to be indefinite.

The newly acquired insurance agent license in 2022 is considered to be an indefinite lived intangible asset and is carried at cost less any subsequent impairment loss. The Group believes, based upon regulatory precedent, that ongoing required license renewals (as approved by government authorities) is a normal activity, those providing the basis for the indefinite life assumption.

(m)Goodwill

Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Group’s acquisitions of interests in its subsidiaries and consolidated VIEs. Goodwill is not amortized but is tested for impairment on an annual basis, as of December 31, or more frequently if events or changes in circumstances indicate that it might be impaired.

2. Summary of Significant Accounting Policies (Continued)

The Group first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. If the Group decides, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss equal to the difference will be recorded. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. The Group performs goodwill impairment testing at the reporting unit level on December 31 annually and more frequently if indicators of impairment exist. No impairment loss of goodwill was recognized for the year ended December 31, 2022.

(n)Impairment of long-lived assets and intangible assets

Long-lived assets include property, plant and equipment and intangible assets with definite lives. Long-lived assets are assessed for impairment, whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate the carrying value of an asset may not be recoverable in accordance with ASC 360. The Company measures the carrying amount of long-lived assets against the estimated undiscounted future cash flows associated with it. The impairment exists when the estimated undiscounted future cash flows are less than the carrying value of the asset being evaluated. Impairment loss is calculated as the amount by which the carrying value of the asset exceeds its fair value. RMB30,381, RMB27,388 and nil impairment of long-lived assets were recognized for the years ended December 31, 2020, 2021 and 2022, respectively.

Intangible assets with indefinite lives are tested for impairment at least annually and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired in accordance with ASC 350. The Company first performs a qualitative assessment to assess all relevant events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset. If after performing the qualitative assessment, the Company determines that it is more likely than not that the indefinite-lived intangible asset is impaired, the Company calculates the fair value of the intangible asset and perform the quantitative impairment test by comparing the fair value of the asset with its carrying amount. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, the Company recognizes an impairment loss in an amount equal to that excess. In consideration of the growing electric vehicle industry in China, the Group’s improving financial performance, and the Group’s future manufacturing and sales plans, the Company determined that it is not likely that the indefinite-lived intangible assets was impaired as of December 31, 2020, 2021 and 2022.

(o)Long-term investments

Long-term investments are comprised of investments in publicly traded companies and privately-held companies, as well as long-term time deposits and long-term financial instruments.

Equity Investments with Readily Determinable Fair Values

Equity investments with readily determinable fair values are measured and recorded at fair value using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level I of fair value measurements.

2. Summary of Significant Accounting Policies (Continued)

Equity Investments without Readily Determinable Fair Values

The Group adopted ASU 2016-01 on January 1, 2018. The Group measures equity investments other than equity method investments at fair value through earnings. For those equity investments without readily determinable fair values, the Group elects to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Under this measurement alternative, changes in the carrying value of the equity investment are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The implementation guidance notes that an entity should make a “reasonable efforts” to identify price changes that are known or that can reasonably be known.

Pursuant to ASC 321, for equity investments measured at fair value with changes in fair value recorded in earnings, the Group does not assess whether those securities are impaired. For those equity investments that the Group elects to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss equal to the difference between the carrying value and fair value.

Equity investments accounted for using the equity method

Investments in entities over which the Group can exercise significant influence and hold an investment in common shares or in-substance common shares (or both) of the investee but do not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC topic 323, Investment—Equity Method and Joint Ventures (“ASC 323”). Under the equity method, the Group initially records its investments at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill, which is included in the equity method investment on our consolidated balance sheets. The Group subsequently adjusts the carrying amount of the investments to recognize our proportionate share of each equity investee’s net income or loss into earnings after the date of investment. The Group evaluates the equity method investments for impairment under ASC 323. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary. The Group performs an impairment assessment of its equity method investments whenever events or changes in circumstances indicate that the carrying value of the investment may not be fully recoverable. No impairment of equity method investments was recognized for the years ended December 31, 2020, 2021 and 2022.

The Group assesses its investments in privately-held companies for impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the companies, including current earnings trends and undiscounted cash flows, and other company-specific information, such as recent financing rounds. The fair value determination, particularly for investments in privately-held companies whose revenue model is still unclear, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments. If this assessment indicates that an impairment exists, the Group estimates the fair value of the investment and writes down the investment to its fair value, taking the corresponding charge to the consolidated statements of comprehensive income/(loss).

Long-term time deposits

Long-term time deposits are those balances placed with the banks with original maturities longer than one year.

2. Summary of Significant Accounting Policies (Continued)

Long-term financial instruments

Long-term financial instruments are investments in financial instruments with variable interest rates and maturity dates greater than one year. The Group elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Fair value is estimated based on quoted prices of similar financial products provided by financial institutions at the end of each period. Changes in the fair value are reflected in the consolidated statements of comprehensive income/(loss) as “Interest income and investment income, net.”

(p)Employee benefits

Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries and VIEs and VIEs’ subsidiaries of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. During the reporting period, there are no forfeited contribution that may be used by the Group as the employer to reduce the existing level of contributions. Total amounts of such employee benefit expenses, which were expensed as incurred, were approximately RMB133,162, RMB482,536 and RMB1,092,499 for the years ended December 31, 2020, 2021 and 2022, respectively.

(q)Product warranties

The Group provides product warranties on all new vehicles based on the contracts with its customers at the time of sale of vehicles. The Group accrues a warranty reserve for the vehicles sold by multiplying the expected unit costs for warranty services by the sales volume, which includes the best estimate of projected costs to repair or replace items under warranties and recalls when identified. These estimates are made primarily based on actual claims incurred to date and the estimates of the nature, frequency and average costs of future claims. These estimates are inherently uncertain given the Group’s relatively short history of sales, and changes to the historical or projected warranty experience may cause material changes to the warranty reserve in the future. The portion of the warranty reserve expected to be incurred within the next 12 months is included within the accruals and other current liabilities while the remaining balance is included within other non-current liabilities in the consolidated balance sheets. Warranty cost is recorded as a component of cost of sales in the consolidated statements of comprehensive income/(loss). The Group reevaluates the adequacy of the warranty accrual on a regular basis.

The Group recognizes the benefit from a recovery of the costs associated with the warranty when specifics of the recovery have been agreed with the Group’s suppliers and the amount of the recovery is virtually certain.

The Group does not consider standard warranty as being a separate performance obligation as it is intended to provide greater quality assurance to customers and is not viewed as a distinct obligation. Accordingly, standard warranty is accounted for in accordance with ASC 460, Guarantees. The Group also provides extended lifetime warranty for certain vehicle models which is sold separately through a vehicle sales contract. The extended lifetime warranty is an incremental service offered to customers and is considered a separate performance obligation distinct from other promises and should be accounted for in accordance with ASC 606.

2. Summary of Significant Accounting Policies (Continued)

The accrued warranty activity consists of the following:


	For the Years Ended December 31,
	2021	2022
Accrued warranty at beginning of the year	233,366	842,345
Warranty cost incurred	(22,558)	(48,963)
Provision for warranty	631,537	800,930
Accrued warranty at end of the year	842,345	1,594,312
Including: Accrued warranty, current	154,276	141,832
Accrued warranty, non-current	688,069	1,452,480

(r)Revenue recognition

The Group launched the first volume manufactured extended-range electric vehicle, Li ONE, to the public in October 2018 and started making deliveries to customers in the fourth quarter of 2019. The Group released the 2021 Li ONE in May 2021, which is upgraded version of Li ONE and terminated the production of the first model Li ONE in May 2021. From June 2022, the Company launched extended-range electric vehicle L-Series to the public and started making deliveries to customers from August 2022. Revenues of the Group are primarily derived from sales of vehicles, along with multiple distinct performance obligations within each sale of vehicle, as well as the sales of Li Plus Membership.

The Group adopted ASC 606, Revenue from Contracts with Customers, on January 1, 2018 by applying the full retrospective method.

Revenue is recognized when or as the control of the goods or services is transferred to a customer. Depending on the terms of the contract and the laws that apply to the contract, control of the goods and services may be transferred over time or at a point in time. Control of the goods and services is transferred over time if the Group’s performance:

●

provides all of the benefits received and consumed simultaneously by the customer;

●

creates and enhances an asset that the customer controls as the Group performs; or

●

does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date.

If control of the goods and services transfers over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the goods and services.

Contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenue to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices based on the prices charged to customers. If the standalone selling price is not directly observable, it is estimated using expected cost plus a margin, depending on the availability of observable information. Assumptions and estimations have been made in estimating the relative selling price of each distinct performance obligation, and changes in judgments on these assumptions and estimates may impact the revenue recognition.

When either party to a contract has performed, the Group presents the contract in the statement of financial position as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment.

2. Summary of Significant Accounting Policies (Continued)

A contract asset is the Group’s right to consideration in exchange for goods and services that the Group has transferred to a customer. A receivable is recorded when the Group has an unconditional right to consideration. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due.

If a customer pays consideration or the Group has a right to an amount of consideration that is unconditional, before the Group transfers a good or service to the customer, the Group presents the contract liability when the payment is made, or a receivable is recorded (whichever is earlier). A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer.

Vehicle sales

The Group generates revenue from sales of vehicles, currently the L-Series and Li ONE, together with a number of embedded products and services through a contract. There are multiple distinct performance obligations explicitly stated in the sales contracts including sales of L-Series and Li ONE, charging stalls, vehicle internet connection services, firmware over-the-air upgrades (or “FOTA upgrades”) and initial owner extended warranty subject to certain conditions, which are accounted for in accordance with ASC 606. The standard warranty provided by the Group is accounted for in accordance with ASC 460, Guarantees, and the estimated costs are recorded as a liability when the Group transfers the control of L-Series or Li ONE to a customer.

Customers only pay the amount after deducting the government subsidies to which they are entitled for the purchase of new energy vehicles, which is applied on their behalf and collected by the Group from the government according to the applicable government policy. The Group has concluded that government subsidies should be considered as a part of the transaction price it charges the customers for the new energy vehicles, as the subsidy is granted to the purchaser of the new energy vehicles and the purchaser remains liable for such amount in the event the subsidies were not received by the Group due to his fault such as refusal or delay of providing application information. Since July 2020, the Group was no longer eligible for the government subsidies as the Group’s selling price of vehicles is higher than threshold in the circular issued by the certain PRC authorities.

The overall contract price is allocated to each distinct performance obligation based on the relative estimated standalone selling price in accordance with ASC 606. The revenue for sales of the L-Series and Li ONE and charging stalls are recognized at a point in time when the control of the product is transferred to the customer. For the vehicle internet connection service and FOTA upgrades, the Group recognizes the revenue using a straight-line method over the service period. As for the initial owner extended warranty, given the limited operating history and lack of historical data, the Group recognizes the revenue over time based on a straight-line method over the extended warranty period initially, and will continue monitoring the cost pattern periodically and adjust the revenue recognition pattern to reflect the actual cost pattern as it becomes available.

As the contract price for the vehicle and all embedded products and services must be paid in advance, which means the payments are received prior to the transfer of goods or services by the Group, the Group records a contract liability (deferred revenue) for the allocated amount regarding those unperformed obligations.

Sales of Li Plus Membership

The Group also sells the Li Plus Membership to enrich the ownership experience of customers. Total Li Plus Membership fee is allocated to each performance obligation based on the relative estimated standalone selling price. And the revenue for each performance obligation is recognized either over the service period or at a point in time when the relevant goods or service is delivered or when the membership expired, whichever is earlier.

2. Summary of Significant Accounting Policies (Continued)

Customer loyalty points

Beginning in January 2020, the Group offers customer loyalty points, which can be used in the Group’s online store to redeem the

Group’s merchandise or services. The Group determines the value of each customer loyalty point based on cost of the Group’s merchandise or service that can be obtained through redemption of customer loyalty points.

The Group concludes the customer loyalty points offered to customers in connection with the purchase of the L-Series and Li ONE is a material right and is considered as a separate performance obligation according to ASC 606, and should be taken into consideration when allocating the transaction price of the sales of vehicle. The amount allocated to the customer loyalty points as separate performance obligation is recorded as contract liability (deferred revenue) and revenue should be recognized when the customer loyalty points are used or expired.

Customers or users of the mobile application can also obtain customer loyalty points through other ways, such as referring new customers to purchase the vehicles via the mobile application. The Group offers these customer loyalty points to encourage user engagement and generate market awareness. As a result, the Group accounts for such points as selling and marketing expenses with a corresponding liability recorded under accruals and other current liabilities upon the points offering.

Sales of Automotive Regulatory Credits

Pursuant to the measurements and policies promulgated by China’s Ministry of Industry and Information Technology (“MIIT”), each of the vehicle manufacturers or importers above a certain scale is able to earn Automotive Regulatory Credits by manufacturing or importing New Energy Vehicle (“NEV”). The Automotive Regulatory Credits are tradable and sold to other companies through a credit management system established by MIIT. The Group earns the tradable new energy vehicle credits from the production of the Group’s electric vehicles. The Group sells these credits at agreed price to other regulated entities who can use the credits to comply with the regulatory requirements. The Group recognized revenue on the sale of Automotive Regulatory Credits at the time control of the Automotive Regulatory Credits were transferred to the purchasing party in September 2021 as MIIT has completed the review and approved the sale of Automotive Regulatory Credits, the related NEV Credits have been transferred to purchasing party. The full consideration for sale of Automotive Regulatory Credits was collected by the Group in the fourth quarter of 2021. There was no revenue from the sale of automotive regulatory credits for the years ended December 31, 2022.

Practical expedients and exemptions

The Group elects to expense the costs to obtain a contract as incurred given the majority of the contract considerations for vehicle sales are allocated to the sales of L-Series and Li ONE and recognized as revenue upon transfer of control of the vehicles, which is within one year after entering the sales contracts.

(s)Cost of sales

Vehicle sales

Cost of vehicle sales consists of direct production and material costs, labor costs, manufacturing overhead (including depreciation of assets associated with the production), shipping and logistic costs and reserves for estimated warranty costs. The cost of sales also includes adjustments to warranty costs and charges to write-down the carrying value of the inventory when it exceeds its estimated net realizable value and to provide for on-hand inventory that is either obsolete or in excess of forecasted demand, loss on inventory purchase commitment as well as impairment charges of certain property, plant and equipment.

2.Summary of Significant Accounting Policies (Continued)

Other sales and services

Cost of other sales and services generally includes cost of accessories, installation costs of charging stalls, vehicle internet connection costs, costs associated with providing non-warranty after-sales services and shipping and logistic costs related to sale of accessories.

(t)Research and development expenses

Research and development (“R&D”) expenses are primarily comprised of salaries, bonuses, benefits and share-based compensation for those employees engaged in research, design and development activities; design and development expenses, primarily includes consultation fees, validation and testing fees; depreciation and amortization expenses of equipment and software of R&D activities and other expenses. R&D costs are expensed as incurred.

(u)Sales and marketing expenses

Sales and marketing expenses consist primarily of salaries and other compensation related expenses for sales and marketing personnel, marketing and promotional expenses, rental and related expenses for retail stores and delivery and servicing centers and other expenses.

(v)General and administrative expenses

General and administrative expenses consist primarily of salaries, bonuses, benefits and share-based compensation for employees involved in general corporate functions, including finance, legal and human resources, depreciation and amortization expenses primarily relating to leasehold improvements, rental and other general corporate related expenses.

(w)Government grants

The Group’s PRC based subsidiaries receive government subsidies from certain local governments. The Group’s government subsidies consist of specific subsidies and other subsidies. Specific subsidies are subsidies that the local government has provided for a specific purpose, such as research and development purpose, construction of production plants and facilities and capacity subsidies related to the Chongqing Manufacturing Base. Other subsidies are the subsidies that the local government has not specified its purpose for and are not tied to future trends or performance of the Group, receipt of such subsidy income is not contingent upon any further actions or performance of the Group and the amounts do not have to be refunded under any circumstances. The Group recorded specific purpose subsidies as a non-current liability if the amount is received in advance. For specific subsidies, upon government acceptance of the related project construction or asset acquisition, the specific purpose subsidies are recognized to reduce the cost of asset acquisition. Other subsidies are recognized as Others, net upon receipt as further performance by the Group is not required.

As of December 31, 2021 and 2022, other non-current liabilities included nil and RMB431,735 in deferred government grants relating to specific government subsidies for construction production plants and facilities and product development, respectively. These government grants are expected to be amortized using the straight-line method as a deduction of the depreciation expense of these assets over their useful lives upon construction and when placed in use.

(x)Fair value

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be either recorded or disclosed at fair value, the Group considers the principal or most advantageous market in which it would transact, and it also considers assumptions that market participants would use when pricing the asset or liability.

2. Summary of Significant Accounting Policies (Continued)

Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value:

Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2—Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities.

Level 3—Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates.

(y)Share-based compensation

The Company grants share options and RSUs to eligible employees, directors and consultants and accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation.

Employees’ share-based compensation awards granted with service conditions and the occurrence of a qualified IPO as performance condition, are measured at the grant date fair value. Cumulative share-based compensation expenses for the options that have satisfied the service condition should be recorded upon the completion of the US IPO, using the graded-vesting method. This performance condition was met upon the completion of the Company’ US IPO in August 2020 and the associated share-based compensation expense for awards vested as of that date were recognized. Employees’ share-based compensation awards granted with only service conditions are recognized as expenses over the vesting period, using the graded vesting method, net of estimated forfeitures.

The binomial option-pricing model is used to measure the value of share options. The determination of the fair value is affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk-free interest rates and expected dividends. The fair value of these awards was determined taking into account these factors.

The assumptions used in share-based compensation expense recognition represent management’s best estimates, but these estimates involve inherent uncertainties and application of management judgment. If factors change or different assumptions are used, the share-based compensation expenses could be materially different for any period. Moreover, the estimates of fair value of the awards are not intended to predict actual future events or the value that ultimately will be realized by grantees who receive share-based awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company for accounting purposes.

2. Summary of Significant Accounting Policies (Continued)

(z)Taxation

Current income taxes are recorded in accordance with the regulations of the relevant tax jurisdiction. The Group accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Tax. Under this method, deferred tax assets and liabilities are recognized for the tax consequences attributable to differences between carrying amounts of existing assets and liabilities in the financial statements and their respective tax basis, and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive loss in the period of change. Valuation allowances are established when necessary to reduce the amount of deferred tax assets if it is considered more likely than not that amount of the deferred tax assets will not be realized.

The Group records liabilities related to uncertain tax positions when, despite the Group’s belief that the Group’s tax return positions are supportable, the Group believes that it is more likely than not that those positions may not be fully sustained upon review by tax authorities. Accrued interest and penalties related to unrecognized tax benefits are classified as income tax expense. The Group did not recognize uncertain tax positions as of December 31, 2021 and 2022.

(aa)Discontinued operations

Discontinued operations are reported when a component of the Group comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Group is classified as held for disposal or has been disposed of, if the disposal of the component (1) represents a strategic shift and (2) have a major impact on the Group’s financial results. In the consolidated statements of comprehensive loss, results from discontinued operations is reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. Cash flows for discontinuing operations are presented separately in the consolidated statements of cash flow and Note 20. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations.

(ab)Leases

The Group accounts for leases in accordance with ASC 842, Leases (“ASC 842”), which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. The Group adopted ASC 842 on January 1, 2018, along with all subsequent ASU clarifications and improvements that are applicable to the Group, to each lease that existed in the periods presented in the financial statements, using the modified retrospective transition method and used the commencement date of the leases as the date of initial application. Consequently, financial information and the disclosures required under ASC 842 are provided for dates and periods presented in the financial statements. The Company elected not to apply the recognition requirements of ASC 842 to short-term leases. The Company also elected not to separate non-lease components from lease components, therefore, it will account for lease component and the non-lease components as a single lease component when there is only one vendor in the lease contract. The adoption of ASC 842 resulted in recognition of right of use (“ROU”) assets of RMB158,770, current operating lease liabilities of RMB14,575 and non-current operating lease liabilities of RMB142,751 upon the adoption date.

2. Summary of Significant Accounting Policies (Continued)

The Group determines if a contract contains a lease based on whether it has the right to obtain substantially all of the economic benefits from the use of an identified asset which the Group does not own and whether it has the right to direct the use of an identified asset in exchange for consideration. ROU assets represent the Group’s right to use an underlying asset for the lease term and lease liabilities represent the Group’s obligation to make lease payments arising from the lease. ROU assets are recognized as the amount of the lease liability, adjusted for lease incentives received. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the Group’s incremental borrowing rate (“IBR”), because the interest rate implicit in most of the Group’s leases is not readily determinable. The IBR is a hypothetical rate based on the Group’s understanding of what its credit rating would be to borrow and resulting interest the Group would pay to borrow an amount equal to the lease payments in a similar economic environment over the lease term on a collateralized basis. Lease payments may be fixed or variable, however, only fixed payments or in-substance fixed payments are included in the Group’s lease liability calculation. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred.

The land use rights are operating leases with terms of about 50 years. Other than the land use rights, the lease terms of operating and finance leases vary from more than a year to 20 years. Operating leases are included in operating lease right of use assets, current and non-current operating lease liabilities on the Group’s consolidated balance sheets. As of December 31, 2022, all of the Group’s ROU assets were generated from leased assets in the PRC.

In a sale and leaseback transaction, one party (the seller-lessee) sells an asset it owns to another party (the buyer-lessor) and simultaneously leases back all or a portion of the same asset for all, or part of, the asset’s remaining economic life. The seller-lessee transfers legal ownership of the asset to the buyer-lessor in exchange for consideration, and then makes periodic rental payments to the buyer-lessor to retain the use of the asset. The Company applies requirements in Topic 606 on revenue from contracts with customers when determining whether the transfer of an asset shall be accounted for as a sale of the asset.

An option for the seller-lessee to repurchase the asset would preclude accounting for the transfer of the asset as a sale of the asset unless both of the following criteria are met:

The exercise price of the option is the fair value of the asset at the time the option is exercised.

There are alternative assets, substantially the same as the transferred asset, readily available in the marketplace.

(ac)Loss per share

Basic net loss per share is computed using the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net loss is not allocated to other participating securities if based on their contractual terms they are not obligated to share in the loss. Diluted net loss per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period. Potential ordinary shares include ordinary shares issuable upon the exercise of outstanding share options using the treasury stock method and ordinary shares issuable upon the conversion of convertible debt using the if-converted method. Potential ordinary shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive.

(ad)Comprehensive loss

Comprehensive loss is defined to include all changes in equity/(deficit) of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Accumulated other comprehensive income/(loss), as presented in the consolidated balance sheets, consists of accumulated foreign currency translation adjustments.

2. Summary of Significant Accounting Policies (Continued)

(ae)Segment reporting

ASC 280, Segment Reporting, establishes standards for companies to report in their financial statements information about operating segments, products, services, geographic areas, and major customers.

Based on the criteria established by ASC 280, the Group’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole, and hence, the Group has only one reportable segment. The Group does not distinguish between markets or segments for the purpose of internal reporting. As the Group’s long-lived assets are substantially located in the PRC, no geographical segment information is presented.

Recent Accounting Pronouncements

12 Months Ended

Dec. 31, 2022

Recent Accounting Pronouncements

Recent Accounting Pronouncements

3. Recent Accounting Pronouncements

Recently adopted accounting pronouncements

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). For convertible instruments, the accounting update reduces the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared with current U.S. GAAP. The accounting update amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. The accounting update also simplifies the diluted earnings per share calculation in certain areas. For public business entities, the update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Entities are allowed to apply this update on either a full or modified retrospective basis. The Company has early adopted this new accounting update on a modified retrospective basis from January 1, 2021 and reported the convertible debt as one single unit of account of long-term borrowings on the balance sheet (Note 13(1)).

In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832). This ASU requires business entities to disclose information about government assistance they receive if the transactions were accounted for by analogy to either a grant or a contribution accounting model. The disclosure requirements include the nature of the transaction and the related accounting policy used, the line items on the balance sheets and statements of operations that are affected and the amounts applicable to each financial statement line item and the significant terms and conditions of the transactions. The ASU is effective for annual periods beginning after December 15, 2021. The disclosure requirements can be applied either retrospectively or prospectively to all transactions in the scope of the amendments that are reflected in the financial statements at the date of initial application and new transactions that are entered into after the date of initial application. We adopted the ASU prospectively on January 1, 2022. Adoption of this ASU did not have a material impact on our consolidated financial statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

+ References

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+ Details

Concentration and Risks

12 Months Ended

Dec. 31, 2022

Concentration and Risks

Concentration and Risks

4. Concentration and Risks

(a)Concentration of credit risk

Assets that potentially subject the Group to significant concentrations of credit risk primarily consist of cash and cash equivalents, restricted cash, time deposits and short-term investments, long-term deposits and long-term financial instruments. The maximum exposure of such assets to credit risk is their carrying amounts as of the balance sheet dates. As of December 31, 2021 and 2022, most of the Group’s cash and cash equivalents, restricted cash and time deposits and short-term investments, long-term deposits and long-term financial instruments were held by major financial institutions located in the PRC and Hong Kong which management believes are of high credit quality. On May 1, 2015, China’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. This Deposit Insurance Regulation would not be effective in providing complete protection for the Group’s accounts, as its aggregate deposits are much higher than the compensation limit. However, the Group believes that the risk of failure of any of these PRC banks is remote. The Group expects that there is no significant credit risk associated with cash and cash equivalents, time deposits and short-term investments, long-term deposits and long-term financial instruments which are held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries and the VIEs are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Group has no significant concentrations of credit risk with respect to the assets mentioned above.

The Group relies on a limited number of third parties to provide payment processing services (“payment service providers”) to collect amounts due from customers. Payment service providers are financial institutions, credit card companies and mobile payment platforms such as Alipay and WeChat Pay, which the Group believes are of high credit quality.

(b)Currency convertibility risk

The PRC government imposes controls on the convertibility of RMB into foreign currencies. The Group’s cash and cash equivalents, restricted cash, time deposits and short-term investments and long-term financial instruments denominated in RMB that are subject to such government controls amounted to RMB24,509,656 and RMB55,065,266 as of December 31, 2021 and 2022, respectively. The value of RMB is subject to changes in the central government policies and to international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (the “PBOC”). Remittances in currencies other than RMB by the Group in the PRC must be processed through PBOC or other Chinese foreign exchange regulatory bodies which require certain supporting documentation in order to process the remittance.

(c)Foreign currency exchange rate risk

The conversion of Renminbi into foreign currencies, including U.S. dollars, is based on rates set by the People’s Bank of China. The Renminbi has fluctuated against the U.S. dollar, at times significantly and unpredictably. The value of Renminbi against the U.S. dollar and other currencies is affected by changes in China’s political and economic conditions and by China’s foreign exchange policies, among other things. The appreciation of the RMB against the US$ was approximately 6.5% and 2.3% in 2020 and 2021, respectively. The depreciation of the RMB against the US$ was approximately 8.2% in 2022. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the US$ in the future.

Acquisition of Chongqing Zhizao and Changzhou Huixiang

12 Months Ended

Dec. 31, 2022

Acquisition of Chongqing Zhizao and Changzhou Huixiang

Acquisition of Chongqing Zhizao and Changzhou Huixiang

5. Acquisition of Chongqing Zhizao and Changzhou Huixiang

Acquisition of Chongqing Zhizao

On December 28, 2018, the Company, through a wholly-owned subsidiary of Beijing CHJ, Chongqing Xinfan Machinery Co., Ltd. (the “Buyer” or “Xinfan”), entered into an acquisition agreement (the “Lifan Acquisition Agreement”) with Lifan Industry (Group) Co., Ltd. (“Lifan Industry” or the “Seller”) and its two wholly-owned subsidiaries Chongqing Zhizao (the “Target”) and Chongqing Lifan Passenger Vehicle Co., Ltd. (“Lifan Passenger Vehicle” or the “Divestiture Recipient”), to acquire an 100% equity interest in Chongqing Zhizao (the “Acquisition”). Chongqing Zhizao was formerly known as Chongqing Lifan Automobile Co., Ltd.

Prior to the completion of the Acquisition, Chongqing Zhizao transferred most of its assets and liabilities and the related rights and obligations to Lifan Passenger Vehicle in November 2018 (the “Divestiture”). After the Divestiture, Chongqing Zhizao still retained its Automotive Manufacturing Permission, working capital and certain lease contracts, and other financial assets or liabilities (hereinafter referred to as “Retained Assets and Liabilities”).

Key operating assets including plants, equipment, vehicle design and development technologies and raw materials had been transferred out from Chongqing Zhizao to Lifan Industry or Lifan Passenger Vehicle prior to the Acquisition. All employee contracts, operational systems and processes have also been transferred to Lifan Passenger Vehicle. No system, standard, protocol, convention, or rule that can create or has the ability to contribute to the creation of outputs were obtained by Xinfan. This Acquisition is determined to be an asset acquisition as no sufficient inputs and processes were acquired to produce outputs.

The Acquisition was completed on December 29, 2018 (the “Acquisition Date”) when the legal procedures were completed. Total consideration for the Acquisition was RMB650,000 in cash. As of December 31, 2021, the Group settled the aggregate amount of RMB648,000, of which RMB8,000 was settled with the outstanding loan receivable from Chongqing Lifan Holdings Ltd. (“Lifan Holdings”).

On December 19, 2019, Xinfan entered into a share transfer agreement (the “Lifan Disposal Agreement”) to dispose of its 100% equity interest in Chongqing Zhizao, with cash consideration of RMB0.001. The Retained Assets and Liabilities of Chongqing Zhizao not related to the manufacturing of Li ONE were transferred out to Lifan Industry and Lifan Passenger Vehicle upon the completion of the disposal of Chongqing Zhizao. A disposal loss of RMB4,503 was recognized on December 26, 2019, the disposal date of the transaction.

Acquisition of Changzhou Huixiang

In July 2021, Beijing CHJ Information Technology Co., Ltd. (“Beijing CHJ”), a wholly owned subsidiary of the Group, and Suzhou Huichuan United Power System Co., LTD (“Suzhou Huichuan”), an independent third party, signed a shareholders’ agreement (the “Agreement”) to establish Changzhou Huixiang New Energy Auto Parts Co., LTD (“Changzhou Huixiang”), which engaged in producing auto parts for NEVs.

The registered capital of Changzhou Huixiang was RMB150,000, and Beijing CHJ will contribute RMB73,500 to acquire a 49% ownership share. In January 2022, both Beijing CHJ and Suzhou Huixiang have injected RMB30,000 in Changzhou Huixiang.

In September 2022, Beijing CHJ and Suzhou Huichuan entered into another agreement regarding the investment in Changzhou Huixiang. Both parties agreed that Beijing CHJ would contribute RMB87,040 to acquire 87.34% shares, with Suzhou Huichuan making no further capital contribution. Beijing CHJ has 4 out of 5 seats on the Changzhou Huixiang Board of Directors and Suzhou Huichuan has one seat. Upon the completion of the transaction, the Goup has voting interest control over Changzhou Huixiang and consolidates the entity in the Group’s consolidated financial statements.

Trade receivables

12 Months Ended

Dec. 31, 2022

Trade receivable

Trade receivable

6. Trade receivables

An aging analysis of the trade receivables as of December 31, 2021 and 2022, based on the recognition date and net of credit loss provisions, is as follows:


	As of December 31,
	2021	2022
Within 3 months	16,462	35,065
Between 3 months and 6 months	890	41
Between 6 months and 1 year	—	1
More than 1 year	103,189	13,274
Total	120,541	48,381

The Company received government subsidies on behalf of customers for purchases of new energy vehicles of RMB89,840 in 2022, whose aging was more than 1 year as of December 2021.

Inventories

12 Months Ended

Dec. 31, 2022

Inventories

Inventories

7. Inventories

Inventories consist of the following:


	As of December 31,
	2021	2022
Finished products	149,089	3,477,457
Raw materials, work in process and supplies	1,468,801	3,327,236
Total	1,617,890	6,804,693

Raw materials, work in process and supplies as of December 31, 2021 and 2022 primarily consist of materials for volume production which will be transferred into production cost when incurred as well as spare parts used for after sales services.

Finished products include vehicles ready for transit at production plants, vehicles in transit to fulfil customers’ orders, new vehicles available for immediate sales at the Group’s sales and servicing center locations.

The Company recognized inventory write-downs and losses on inventory purchase commitments which were recorded in cost of sales of nil and RMB51,256 for the years ended December 31, 2021, and RMB592,545 and RMB 519,470 for the years ended December 31, 2022, respectively. The amount recognized for the year ended December 31, 2022 was related primarily to the Company’s phase out plan of the Li ONE vehicle which considers a related forecasted decline in future sales and resulting excess inventory levels.

Property, Plant and Equipment, Net

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment, Net.

Property, Plant and Equipment, Net

8. Property, Plant and Equipment, Net

Property, plant and equipment and related accumulated depreciation were as follows:


	As of December 31,
	2021	2022
Production machineries and facilities⁽ⁱ⁾	804,281	3,226,785
Construction in process ⁽ⁱⁱ⁾	1,942,953	2,748,697
Mold and tooling	1,098,392	2,721,990
Buildings	409,123	2,046,472
Leasehold improvements	660,902	1,070,995
Equipment	266,745	626,502
Motor vehicles	59,702	615,231
Buildings improvements	297,163	314,987
Total	5,539,261	13,371,659
Less: Accumulated depreciation⁽ⁱⁱⁱ⁾	(983,222)	(2,156,225)
Less: Accumulated impairment loss ^(iv)	(57,770)	(27,536)
Total property, plant and equipment, net	4,498,269	11,187,898

The Group recorded depreciation expense of RMB312,011, RMB579,097 and RMB1,194,781 for the years ended December 31, 2020, 2021 and 2022, respectively.

(i)

On August 27, 2021, Beijing CHJ entered into an investment agreement with Mianyang Xinchen(“Xinchen”), a wholly owned subsidiary of Xinchen China Power Holdings Limited, relating to the formation of Sichuan Li Xinchen Technology Co., Ltd (“Sichuan Li Xinchen”) in Mianyang, Sichuan Province, China. According to the investment agreement, Bejing CHJ has a 51% equity interest in Sichuan Li Xinchen and has the right to nominate three board members (out of five), therefore, providing Beijing CHJ with a controlling interest over Sichuan Li Xinchen. In June 2022, Sichuan Li Xinchen received a capital contribution of long-lived assets amounting to RMB228,668 from Xinchen and completed the necessary legal procedures as required in the investment agreement (pursuant to which Bejing CHJ will maintain a 51% equity interest).

(ii)

Construction in process is primarily comprised of production plants, facilities, equipment and mold and tooling related to manufacturing of the extended-range electric SUV vehicles and BEV models in Changzhou Manufacturing Base construction and Beijing Manufacturing Base construction

In July 2021, the Group signed a memorandum and a series of agreements (collectively “Beijing Manufacturing Base Agreements”) for collaboration on a construction and expansion project of an automobile manufacturing plant, for the Group’s specific use, in Shunyi District, Beijing, with an enterprise affiliated with the Beijing local government (“the Developer Enterprise”). Since May, 2022, the Group was entitled to lease the plant facility from the Developer Enterprise (responsible for the construction of the plant) with exemption of rental expenses to September 2028, and agreed to acquire the plant in September 2028. In October 2021, construction commenced on the Beijing Manufacturing Base, which is scheduled to be put into use in 2023. As of December 31, 2022, RMB469,317 of construction in process and along with RMB214,092 of other non-current liabilities were recognized in the consolidated balance sheet.

8. Property, Plant and Equipment, Net (Continued)

(iii)

As of December 31, 2022, the Company completed a necessary assessment of the estimated units of production of certain mold and tooling and the useful lives of certain production facilities directly used for Li ONE vehicle production. The assessment was determined to be necessary as a result of the Company’s decision during the third quarter, 2022 to cease Li ONE production by the end of October 2022 (as a result of the Company’s planned migration to the Li L8 model). As a result of this assessment, the Company changed the estimated useful lives relating to dedicated Li ONE production facilities from 10 years to 3 years. In addition, depreciation of certain mold and tooling that are directly used in Li ONE production was also accelerated based on management’s best estimate for 2021 Li ONE’s production volume when using the unit-of-production depreciation method. As a result, the effect of these changes in estimates, accounted for on a prospective basis, was an increase in depreciation expense of RMB357,500 for the year ended December 31, 2022.

(iv)

The Group launched 2021 Li ONE in May 2021, which subsequently led to a reduction in production and sales volume relating to the first model Li ONE. As of December 31, 2021, the Group recorded an impairment loss of RMB27,388 on its production facilities and mold and tooling used in the production of the first model Li ONE as a significant portion of the carrying value of these assets are not expected to be recovered in the foreseeable future. The Group recorded an impairment loss of RMB30,381, RMB27,388 and nil for property, plant and equipment for the years ended December 31, 2020, 2021 and 2022, respectively.

Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

Intangible Assets, Net

Intangible Assets, Net

9. Intangible Assets, Net

Intangible assets and related accumulated amortization were as follows:


	As of December 31,
	2021	2022
Automotive Manufacturing Permission (Note 5)	647,174	647,174
Insurance Agent License	—	35,000
Indefinite‑lived intangible assets, net	647,174	682,174
Software	137,576	202,848
Patents	694	694
Definite‑lived intangible assets	138,270	203,542
Less: Accumulated amortization
Software	(33,290)	(52,402)
Patents	(694)	(694)
Accumulated amortization	(33,984)	(53,096)
Definite‑lived intangible assets, net	104,286	150,446
Total intangible assets, net	751,460	832,620

The newly acquired Insurance Agent License is considered to be an indefinite lived intangible asset and is carried at cost less any subsequent impairment loss. The Group believes, based upon regulatory precedent, that ongoing required license renewals (as approved by government authorities) is a normal activity, those providing the basis for the indefinite life assumption.

The Group recorded amortization expense of RMB8,985, RMB11,300 and RMB19,074 for the years ended December 31, 2020, 2021 and 2022, respectively.

As of December 31, 2022, amortization expenses related to intangible assets for future periods are estimated to be as follows:


		As of December 31,
2023		21,310
2024		18,558
2025		16,500
2026		15,674
2027 and thereafter		78,404
Total		150,446

Leases

12 Months Ended

Dec. 31, 2022

Leases

Leases

10. Leases

Operating leases of the Group mainly include land use rights and leases of offices, retail stores and delivery and servicing centers and the finance lease was the lease of Changzhou manufacturing base production plants (Note 8(ii)).

The components of lease expenses were as follows:


	For the Year Ended December 31,
	2020	2021	2022
Lease cost
Finance lease cost:
Amortization of assets	15,346	12,122	—
Interest of lease liabilities	21,851	19,322	—
Operating lease cost	176,788	367,375	698,280
Short‑term lease cost	4,937	15,559	54,683
Total	218,922	414,378	752,963

Operating lease cost is recognized as rental expenses in consolidated statements of comprehensive loss.

Short-term lease cost is recognized as rental expenses in consolidated statements of comprehensive loss on a straight-line basis over the lease term.


	For the Year Ended December 31,
	2020	2021	2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows payments for operating leases	126,418	346,757	610,490
Right-of-use assets obtained in exchange for lease liabilities:
Right-of-use assets obtained in exchange for new operating lease liabilities	896,804	1,120,392	2,071,200

Supplemental balance sheet information related to leases was as follows (in thousands, except lease terms and discount rate):


	As of December 31,
	2021	2022
Operating Leases
Land use rights, net	289,810	1,010,640
Operating lease right-of-use assets, net (excluding land use rights)	1,771,682	2,528,271
Total operating lease assets	2,061,492	3,538,911
Operating lease liabilities, current	473,245	696,454
Operating lease liabilities, non-current	1,369,825	1,946,367
Total operating lease liabilities	1,843,070	2,642,821


	As of December 31,
	2021		2022
Weighted-average remaining lease term
Land use rights	47 years		49 years
Operating leases	8 years		7 years
Weighted-average discount rate
Land use rights	—		—
Operating leases	5.8	%	5.8	%

10. Leases (Continued)

Maturities of lease liabilities were as follows:


		As of December 31, 2022
		Operating leases
2023		824,247
2024		584,377
2025		377,332
2026		263,142
2027		195,680
Thereafter		965,491
Total undiscounted lease payments		3,210,269
Less: imputed interest		(567,448)
Total lease liabilities		2,642,821

Acquisition of Changzhou Manufacturing Base Phase I and Phase II and termination of lease agreements

In November 2021, Jiangsu CHJ, as a subsidiary of the Group, entered into an equity transfer agreement to acquire an 100% equity interest in Changzhou Chehejin which owns the legal title of Changzhou Manufacturing Base Phase I and Phase II Land use rights and Plants. According to the equity transfer agreement, the total consideration for this transaction was RMB567,118 in cash, of which RMB537,009 was paid as of December 31, 2022. Upon the completion of the transaction, the legal titles of Changzhou Manufacturing Base Phase I and II, including Land use rights and Plants, were transferred to the Group, and the original lease agreements were terminated accordingly.

There were no inputs and substantive processes acquired to significantly contribute to the ability to create outputs (no workforce or revenue supporting processes were acquired in connection with this transaction). Accordingly, this transaction was accounted for as an asset acquisition.

According to ASC 842-20-40-2, the termination of a lease that results from the purchase of an underlying asset by the lessee is not the type of termination of a lease contemplated but, rather, is an integral part of the purchase of the underlying asset. Upon the Group’s purchase of the Changzhou Manufacturing Base Phase I and II Land use right and Plants, the difference between the total consideration of this transaction and the carrying amount of the lease liabilities arising from Phase I assets and short-term borrowings arising from Phase II assets immediately prior to the transaction was recorded as an adjustment of the carrying amount of the asset, with an amount of RMB47,876 on the consolidated balance sheet as of December 31, 2021.

Acquisition of land use rights in Changzhou and Chongqing

For the year ended December 31, 2022, the Group acquired land use rights to construct production plants and facilities for manufacturing vehicles of the Group in Changzhou and Chongqing, the PRC. The total consideration of land use rights was RMB766,662 that was fully paid as of December 31, 2022.

Land use rights are classified as an operating lease and are recorded at cost, as a right of use asset less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives which are 50 years that represent the terms of land use rights certificate. The Group recorded amortization of land use rights in Changzhou and Chongqing of RMB12,807 for the year ended December 31, 2022.

Other Non-current Assets

12 Months Ended

Dec. 31, 2022

Other Non-current Assets

Other Non-current Assets

11. Other Non-current Assets

Other non-current assets consist of the following:


	As of December 31,
	2021	2022
Long-term deposits paid to vendors	653,030	1,319,816
Prepayments for purchase of property, plant and equipment ⁽ⁱ⁾	1,051,415	641,748
Deductible VAT input, non-current	263,390	454,359
Others	16,998	9,942
Less: Allowance for credit losses	(3,757)	(4,572)
Total	1,981,076	2,421,293

(i)

Prepayments for purchase of property, plants and equipment primarily consists of production facilities, leasehold improvements, equipment and mold and tooling related to manufacturing of the extended-range electric SUV vehicles and BEV models, a portion of Beijing, Chongqing and Changzhou Manufacturing Bases construction and production facilities and equipment relating to manufacturing of engines and parts of Sichuan Li Xinchen.

Long-term Investments

12 Months Ended

Dec. 31, 2022

Long-term Investments.

Long-term Investments.

12. Long-term Investments

The Group’s long-term investments on the consolidated balance sheets consisted of the following:


	As of December 31,
	2021	2022
Equity investments:
Equity Securities Without Readily Determinable Fair Values	93,150	558,004
Equity investments accounted for using the equity method	34,704	155,053
Equity Security With Readily Determinable Fair Values	28,452	12,966
Long-term held-to-maturity investments:
Long-term time deposits	—	707,853
Long-term financial instruments	—	50,615
Total Long-term Investments	156,306	1,484,491

Equity Security with Readily Determinable Fair Values

Equity security with readily determinable fair values are marketable equity securities which are publicly traded stocks measured at fair value.

The following table shows the carrying amount and fair value of equity securities with readily determinable fair values:


			Foreign Currency
Cango Inc.	Cost Basis	Unrealized Loss	Translation	Fair Value
As of December 31, 2021	100,303	(73,535)	1,684	28,452
As of December 31, 2022	100,303	(91,063)	3,726	12,966

12. Long-term Investments (Continued)

The Company purchased 2,633,644 shares of Series C preferred shares issued by Cango Inc. (“Cango”), with a total cash consideration of US$15,634 (RMB100,303) in 2018. This investment was initially recorded as an equity holding without a readily determinable fair value given Cango was still a privately held company at that time. In July 2018, Cango completed its listing on the New York Stock Exchange (“Cango IPO”) and the Series C preferred shares held by the Company were converted to Class A ordinary shares of Cango.

Upon the completion of Cango IPO, the Company reclassified this investment from equity securities without readily determinable fair value to equity securities with readily determinable fair value. These securities are valued using the market approach based on the quoted prices in active markets at the reporting date. The Company classifies the valuation techniques that use these inputs as Level 1 of fair value measurements.

Any unrealized gain or loss is recognized in Interest income and investment income, net in the consolidated statements of comprehensive loss.

Equity Securities without Readily Determinable Fair Values

Equity securities without determinable fair value represent investments in privately held companies with no readily determinable fair value. The Group’s investments are preferred shares, which are not considered as common stock or in substance common stock. Upon adoption of ASU 2016-01 on January 1, 2018, the Group elected the measurement alternative and recorded these investments at cost, less impairment (if any), adjusted for subsequent observable price changes.

In March 2022, one of the Group’s subsidiaries—Chongqing Chezhiyuan, entered into an agreement with Xin Wang Da Electronics Limited (“Xin Wang Da Electronics”), an A-share listed company engaging in design, production and sale of lithium battery cells and modules to purchase certain Series Pre-A preferred shares of Xin Wang Da Electric Vehicle and Battery Limited (“the investee”), a subsidiary of Xin Wang Da Electronics. This transaction, with a total consideration of RMB400,000, resulted in the Group’s 3.2% equity ownership in the investee at the acquisition date, which was diluted to 2.4% as a result of a financing transaction completed by the investee in Ocotober 2022. As of December 31,2022, Chongqing Chezhiyuan has fully paid the investment consideration of RMB400,000.

Impairment charges of nil, nil and RMB7,200 were recorded in Interest income and investment income, net in the consolidated statements of comprehensive loss for the years ended December 31, 2020, 2021 and 2022, respectively.

Short-term Borrowings and Long-term Borrowings

12 Months Ended

Dec. 31, 2022

Short-term Borrowings and Long-term Borrowings

Short-term Borrowings and Long-term Borrowings

13. Short-term Borrowings and Long-term Borrowings

Borrowings consist of the following:

Interest Rate

As of December 31,

Maturity Date

Classification

Principal Amount

Per Annum

2021

2022

Convertible debt⁽¹⁾

May 1, 2028

Non-current

US$

862,500

0.25

5,397,941

5,913,715

Secured borrowing⁽²⁾

February 15, 2027

Current and Non-current

RMB

900,000

5-year LPR - 0.40

—

900,000

Secured borrowing⁽³⁾

June 21, 2034

Non-current

RMB

625,383

5-year LPR - 0.80

—

625,383

Secured borrowing⁽⁴⁾

September 28, 2029

Current and Non-current

RMB

600,000

5-year LPR - 0.31

600,000

Credit guaranteed borrowing⁽⁵⁾

June 29, 2024

Current and Non-current

US$

50,000

SOFR

—

348,230

Credit guaranteed borrowing⁽⁶⁾

July 26, 2025

Current and Non-current

RMB

300,000

1-year LPR

—

300,000

Unsecured borrowing⁽⁷⁾

March 8, 2024

Non-current

RMB

260,000

1-year LPR - 0.70

—

260,000

Unsecured borrowing⁽⁸⁾

June 15, 2024

Non-current

RMB

240,000

1-year LPR - 0.70

—

240,000

Secured borrowing⁽⁹⁾

March 25, 2025

Current and Non-current

RMB

224,329

5-year LPR - 0.60

—

224,329

Credit guaranteed borrowing⁽¹⁰⁾

December 26, 2025

Non-current

RMB

209,900

1-year LPR - 0.90

—

209,900

Total borrowings

5,997,941

9,621,557

The total borrowings are classified as short-term borrowings and long-term borrowings:


	As of December 31,
	2021	2022
Short-term borrowings:
Current portion of secured borrowing	37,042	283,785
Current portion of credit guaranteed borrowing	—	106,965
Total short-term borrowings	37,042	390,750

13. Short-term Borrowings and Long-term Borrowings (Continued)


	As of December 31,
	2021	2022
Long-term borrowings:
Convertible debt	5,397,941	5,913,715
Non-current portion of secured borrowing	562,958	1,440,544
Secured borrowing	—	625,383
Non-current portion of credit guaranteed borrowing	—	541,265
Unsecured borrowing	—	500,000
Credit guaranteed borrowing	—	209,900
Total long-term borrowings	5,960,899	9,230,807
Total borrowings	5,997,941	9,621,557

(1)

In April 2021, the Company issued and sold convertible debt in an aggregate principal of US$862,500 through a private placement. The convertible debt will mature in 2028, bearing the interest at a rate of 0.25% per annum. The related interest is payable semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2021. The net proceeds from this offering were approximately US$844,876, equivalent to RMB5,533,238.

The convertible debt may be converted, at an initial conversion rate of 35.2818 American depositary shares (the “ADSs”) per US$1,000 principal amount (which represents an initial conversion price of approximately US$28.34 per ADS) at each holder’s option at any time on or after November 1, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date of May 1, 2028. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, either cash, ADSs, or a combination of cash and ADSs, at its election.

The initial conversion price of US$28.34 per ADS, or US$14.17 per Class A Ordinary Share (the latter represents the effective cost per Class A Ordinary Share), represents a discount of approximately 26.56% to the maximum Public Offer Price of HK$150.00 per Class A Ordinary Share. The initial conversion rate may be adjusted in certain circumstances, including but not limited to when the Company effects a share split or share combination. As of December 31, 2022, no adjustment had been made to the initial conversion rate.

Holders of the convertible debt have the rights to require the Company to repurchase all or a portion for their convertible debt on May 1, 2024 and May 1, 2026 or in the event of certain fundamental changes, at a repurchase price equal to 100% of the principal amount of the convertible debt to be repurchased, plus accrued and unpaid interest.

13. Short-term Borrowings and Long-term Borrowings (Continued)

The Company assessed the convertible debt under ASC 815 and concluded that:

(i)

Since the conversion option is considered indexed to the Company’s own stock and classified in shareholders’ equity, bifurcation of conversion option from the convertible debt is not required as the scope exception prescribed in ASC 815-10-15-74 is met;

(ii)

The repurchase option is considered clearly and closely related to its debt host and does not meet the requirement for bifurcation.

In August 2020, the FASB issued ASU 2020-06 Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)(the “ASU 2020-06”). The Company determined to early adopt ASU 2020-06 from January 1, 2021. Since the ASU 2020-06 amended the guidance on convertible debt instruments by removing accounting models for the instruments with beneficial conversion features and cash conversion features. Accordingly, there is no need to consider beneficial conversion feature or cash conversion features for the convertible debt.

Therefore, the Company accounted for the convertible debt as a single instrument measured at its amortized cost as long-term borrowings on the consolidated balance sheets. The issuance costs were recorded as an adjustment to the long-term borrowings and are amortized as interest expense using the effective interest method over the contractual life to the maturity date (i.e., May 1, 2028). For the years ended December 31, 2021 and 2022, the convertible debt related interest expense was US$3,353 (RMB21,369) and US$4,506 (RMB31,076), respectively. As of December 31, 2021 and 2022, the principal amount of the convertible debt was RMB5,499,041 and RMB6,006,968, and the unamortized debt issuance cost was RMB101,100 and RMB93,253, respectively.

(2)

In February, 2022, the Group entered into a 5-year pledged loan agreement with a commercial bank in the PRC, with total principal of RMB900,000. This loan was pledged by certain manufacturing facilities of the Group. As of December 31, 2022, the interest rate was 5-year Loan Prime Rate (“LPR”) published by the National Interbank Funding Center, minus 0.40% per annum. The outstanding loan principal of RMB110,000 is due within 12 months, which is classified as current portion of long-term borrowing and the remaining portion of principal of RMB790,000 is presented as a long-term borrowing.

The borrowing contains covenants which includes limitations on certain asset sales and a requirement to maintain current assets. The Group is in compliance with all of the loan covenants as of December 31, 2022.

(3)

In June 2022, the Group entered into a credit agreement with a group of banks pursuant to which the Group is entitled to borrow from the group of banks from time to time up to an aggregate of RMB3,000,000 until April 2024. The related principle is payable semiannually in arrears in June and December of each year, from June 2025 to June 2034. The related interest is payable quarterly in arrears on the twentieth of the last month of every quarter, from September 2022 to June 2034. As of December 31, 2022, the Group made drawdown in the amount of RMB625,383. The loan is secured by the pledge of certain Group’s land use rights and property relating to the production of electric vehicles, when the certificates of land use rights and property are approved and provided by the local authorities. Interest accrues on the principal amounts of the loans outstanding at an annual rate equal to the 5-year LPR minus 0.80%. Borrowings under this credit agreement are classified as long-term borrowings.

13. Short term Borrowings and Long-term Borrowings (Continued)

The borrowing contains covenants which includes a requirement to the quantities of electric vehicle deliveries in the foreseeable future and maintain financial assets on the specific account. The Group is in compliance with all of the applicable loan covenants as of December 31, 2022.

(4)

In September 2021, the Group entered into a loan facility agreement with a commercial bank in the PRC, which allows the Group to draw borrowings up to RMB1,009,900 as of periods ended September 28, 2029. The borrowings bear annual interest rate of 5-year LPR minus 0.31% and were guaranteed by certain production facilities and tooling of the Group. As of December 31, 2022, the outstanding loan principal was RMB600,000, of which RMB74,083 will be due within 12 months, which is classified as current portion of long-term borrowing and the remaining balance of RMB525,917 will be due in January 1, 2024 and thereafter, which is classified as long-term borrowing. The unused credit limit under these facilities was RMB409,900 as of December 31, 2022.

(5)

In June 2022, the Group entered into loan agreements with a commercial bank guaranteed by a subsidiary of the Group pursuant to which the Group is entitled to borrow from the group of banks from time to time until June 2024 up to an aggregate of US$200,000. In June 2022, the Group made the drawdown in the amount of US$100,000 (RMB696,460). Interest accrues on the principal amounts of the loans outstanding at an annual rate equal to the SOFR. The Group repaid a portion of the principal in the amount of US$50,000 (RMB348,230) in December 2022. As of December 31, 2022, the outstanding loan principal of RMB6,965 is due within 12 months, which is classified as current portion of long-term borrowing and the remaining portion of principal of RMB341,265 is presented as a long-term borrowing.

The borrowing contains covenants which includes limitations on liquidity ratios and requirements on stock price and vehicle deliveries. The Group is in compliance with all of the loan covenants as of December 31, 2022.

(6)

In July 2022, the Group entered into a 3-year loan agreement with a commercial bank in the PRC guaranteed by a subsidiary of the Group, with total principal of RMB300,000. The related principal is payable semiannually in arrears in January and July of each year, beginning from January 2023, until July 2025. The related interest is payable quarterly in arrears on the twenty-first of the last month of every quarter, from September 2022 to July 2025. As of December 31, 2022, the interest rate was 1-year LPR per annum and an outstanding loan principal of RMB100,000 is due within 12 months, which is classified as current portion of long-term borrowing and the remaining portion of principal of RMB200,000 is presented as a long-term borrowing.

(7)

In September 2022, the Group entered into a 18-month loan agreement with a commercial bank in the PRC, with total principal of RMB260,000. As of December 31, 2022, the annual interest rate was 1-year LPR minus 0.70% per annum and all outstanding loan principal of RMB260,000 was presented as a long-term borrowing.

(8)

In December 2022, the Group entered into a 18-month loan agreement with a commercial bank in the PRC, with total principal of RMB240,000. As of December 31, 2022, the annual interest rate was 1-year LPR minus 0.70% per annum and all outstanding loan principal of RMB240,000 was presented as a long-term borrowing.

(9)

In February 2022, the Group entered into an asset transfer agreement with a finance lease company to sell certain production facilities and equipment in Changzhou Production Base with a total consideration of RMB299,106. Immediately after the transfer, the Group entered into a lease agreement to lease back the production facilities and equipment for the period starting from March 25, 2022 to March 25, 2025, and further obtained an option to repurchase the production facilities and equipment with the notional amount of RMB0.001 on March 25, 2025.

13. Short-term Borrowings and Long-term Borrowings (Continued)

As the repurchase option is not at the fair value of the assets when the option is exercised, and the assets repurchased are designed for the use of the Group, and no alternative assets that are substantially the same as the transferred assets are readily available in the market, as a result, the transaction did not qualify for the sales accounting, and was accounted for as a financing transaction and the Group recorded the sales proceeds as a borrowing in the unaudited condensed consolidated balance sheets. The Group repaid a portion of the principal in the amount of RMB74,777 for the year ended December 31, 2022. As of December 31, 2022, outstanding loan principal of RMB99,702 is due within 12 months, which is classified as current portion of long-term borrowing and the remaining portion of principal of RMB124,627 is presented as a long-term borrowing.

(10)

In December 2022, the Group entered into a 1-year loan agreement with a commercial bank in the PRC and was entitled to extend maturity date to December 26, 2025, with total principal of RMB209,900. The outstanding principal amount will be payable at maturity. The related interest is payable quarterly in arrears on the twenty-first of the last month of every quarter, from January 2023 to December 2025. As of December 31, 2022, the annual interest rate was 1-year LPR minus 0.90% per annum and all outstanding loan principal of RMB209,900 was presented as a long-term borrowing.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Trade and Notes Payable

12 Months Ended

Dec. 31, 2022

Trade and Notes Payable

Trade and Notes Payable

14. Trade and Notes Payable

Trade and notes payable consist of the following:


	As of December 31,
	2021	2022
Trade payable for raw materials	7,089,370	15,410,150
Notes payable	2,286,680	4,614,179
Total	9,376,050	20,024,329

An aging analysis of the trade and notes payable as at December 31, 2021 and 2022, based on the recognition date, is as follows:


	As of December 31,
	2021	2022
Within 3 months	7,539,833	19,806,395
Between 3 months and 6 months	1,639,286	124,122
Between 6 months and 1 year	161,913	31,051
More than 1 year	35,018	62,761
Total	9,376,050	20,024,329

Accruals and Other Current Liabilities

12 Months Ended

Dec. 31, 2022

Accruals and Other Current Liabilities

Accruals and Other Current Liabilities

15. Accruals and Other Current Liabilities

Accruals and other current liabilities consist of the following:


	As of December 31,
	2021	2022
Payables for purchase of property, plant and equipment	456,395	2,335,084
Salaries and benefits payable	417,449	633,215
Payables for research and development expenses	94,517	525,667
Accrued costs of purchase commitments relating to inventory	—	498,060
Tax payable	277,233	445,853
Payables for logistics expenses	143,632	414,353
Payables for marketing and promotional expenses	96,945	150,706
Accrued warranty	154,276	141,832
Deposits from vendors	27,716	32,013
Advances from customers	10,262	10,500
Other payables	200,943	497,361
Total	1,879,368	5,684,644

Revenue Disaggregation

12 Months Ended

Dec. 31, 2022

Revenue Disaggregation

Revenue Disaggregation

16. Revenue Disaggregation

Revenues by source consist of the following:


	For the Years Ended December 31
	2020	2021	2022
Vehicle sales	9,282,703	26,128,469	44,106,434
Other sales and services	173,906	881,310	1,180,382
Total	9,456,609	27,009,779	45,286,816

Revenue by timing of recognition is analyzed as follows:


	For the Years Ended December 31,
	2020	2021	2022
Revenue recognized at a point in time	9,436,095	26,917,836	45,150,485
Including: Vehicle sales	9,282,703	26,128,469	44,106,434
Other sales and services	153,392	789,367	1,044,051
Revenue recognized over time	20,514	91,943	136,331
Total	9,456,609	27,009,779	45,286,816

Revenues arising from vehicle sales are recognized at a point in time when the control of the products are transferred to the users. Revenues from other sales and services which are recognized at a point in time include (i) sales and installment of charging piles, (ii) sales of goods from online store, (iii) certain services under the Li Plus Membership, and (iv) sales of Automotive Regulatory Credits. In such instances, revenues are recognized at a point in time when the control of the products and services are transferred to the users.

Certain revenue arising from other sales and services is recognized over time, including vehicle internet connection services, FOTA upgrades and certain services under the Li Plus Membership.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Deferred Revenue

12 Months Ended

Dec. 31, 2022

Deferred Revenue

Deferred Revenue

17. Deferred Revenue

The following table includes a rollforward of the deferred revenue balance for each year presented:


	For the Years Ended December 31,
	2020	2021	2022
Deferred revenue—at beginning of the year	62,638	407,168	694,745
Additions	9,687,382	27,377,563	45,614,278
Recognition	(9,342,852)	(27,089,986)	(45,158,191)
Deferred revenue—at end of the year	407,168	694,745	1,150,832
Including: Deferred revenue, current	271,510	305,092	569,234
Deferred revenue, non‑current	135,658	389,653	581,598

Deferred revenue represents contract liabilities allocated to the performance obligations that are unsatisfied, or partially satisfied which primarily resulted from undelivered vehicles, uninstalled charging piles and other performance obligations identified in the vehicle sales contracts.

The Group expects that RMB569,234 of the transaction price allocated to unsatisfied performance obligation as of December 31, 2022 will be recognized as revenue during the period from January 1, 2023 to December 31, 2023. The remaining RMB581,598 will be recognized in January 1, 2024 and thereafter.

Research and Development Expenses

12 Months Ended

Dec. 31, 2022

Research and Development Expenses.

Research and Development Expenses

18. Research and Development Expenses

Research and development expenses consist of the following:


	For the Years Ended December 31,
	2020	2021	2022
Employee compensation	580,157	2,079,948	3,801,960
Design and development expenses	431,996	1,003,567	2,566,567
Rental and related expenses	18,818	52,985	99,324
Depreciation and amortization expenses	44,977	54,110	94,134
Travel expenses	9,360	52,307	76,714
Others	14,549	43,472	141,333
Total	1,099,857	3,286,389	6,780,032

Selling, General and Administrative Expenses

12 Months Ended

Dec. 31, 2022

Selling, General and Administrative Expenses.

Selling, General and Administrative Expenses

19. Selling, General and Administrative Expenses

Selling, general and administrative expenses consist of the following:


	For the Years Ended December 31,
	2020	2021	2022
Employee compensation	449,109	1,414,177	2,873,397
Marketing and promotional expenses	264,814	1,100,769	1,010,227
Rental and related expenses	162,907	324,655	645,792
Depreciation and amortization expenses	37,923	82,777	228,790
Travel expenses	20,806	69,079	99,246
Expected credit losses	—	6,415	2,910
Others	183,260	494,513	804,939
Total	1,118,819	3,492,385	5,665,301

Discontinued Operations

12 Months Ended

Dec. 31, 2022

Discontinued Operations

Discontinued Operations

20. Discontinued Operations

Historically, the Group had a strategy of developing Low-Speed SEV and producing and selling its related battery packs.

In the first quarter of 2018, the Group determined to dispose the SEV business due to the shift on the Group’s business and product strategy. As a result, the long-lived assets related to SEV production, including manufacturing facilities and IP, etc. have ceased to be used, and these assets were considered effectively abandoned.

Subsequent to the termination of the SEV business, the Group still sold the SEV battery packs to external customers, and in September 2019, the Group further decided to dispose the SEV battery packs business and located a potential buyer. Accordingly, the Company concluded that as of September 30, 2019, the SEV battery packs business met all of the held for sale criteria. In the first quarter of 2020, the Company completed the sale of the SEV battery packs business to an affiliate of the Company for a total cash consideration of RMB60,000.

The abandonment or the disposal of the SEV business and the related battery packs business represented strategic shifts of the Group and had a major impact on the Group’s financial results, and met the criteria for the discontinued operations. Therefore, the historical financial results of the SEV related business were classified as discontinued operation.

The following tables set forth the results of operations and cash flows of the discontinued operations, which were included in the Group’s consolidated financial statements.


		For the Year Ended December 31,
		2020
Revenues		870
Cost of sales		(2,437)
Gross loss		(1,567)
Operating expenses		(1,423)
Loss from operations of discontinued operations		(2,990)
Loss from discontinued operations before income tax expense		(2,990)
Net loss from discontinued operations, net of tax		(2,990)


		For the Year Ended December 31,
		2020
Net cash provided by discontinued operating activities		148
Net cash provided by discontinued investing activities		59,705

The following table presents the gain on disposal of discontinued operations related to the disposal of SEV battery packs business for the year ended December 31, 2020:


		For the Year Ended
		December 31, 2020
Cash consideration received for sale of SEV battery packs business		60,000
Carrying value of net assets transferred		(42,637)
Gain on disposal of discontinued operations		17,363

Ordinary Shares

12 Months Ended

Dec. 31, 2022

Ordinary Shares

Ordinary Shares

21. Ordinary Shares

In April 2017, the Company was incorporated as a limited liability company in the Cayman Islands. In July 2019, the Company became the holding company of the Group pursuant to the Reorganization described in Note 1. In connection with the Reorganization and issuance of Series C convertible redeemable preferred shares (“Series C Preferred Shares”), 3,830,157,186 authorized shares of the Company were designated as Class A Ordinary Shares, and 240,000,000 authorized shares were designated as Class B ordinary shares. Each Class A Ordinary Share is entitled to one vote, and is not convertible into Class B Ordinary Shares under any circumstances. Each Class B Ordinary Share is entitled to ten votes, subject to certain conditions, and is convertible into one Class A Ordinary Share at any time by the holder thereof. Upon the Reorganization, the Company issued ordinary shares and Series Pre-A, A-1, A-2, A-3, B-1, B-2 and B-3 convertible redeemable preferred shares (the “Series Pre-A, A-1, A-2, A-3, B-1, B-2 and B-3 Preferred Shares”) to shareholders of Beijing CHJ in exchange for respective equity interests that they held in Beijing CHJ immediately before the Reorganization. Series Pre-A, A-1, A-2, A-3, B-1, B-2 and B-3 Preferred Shares would be converted into Class A Ordinary Shares based on the then-effective conversion price.

On July 4, 2016, Beijing CHJ issued Series Pre-A shares (“Series Pre-A Ordinary Shares”) with cash consideration of RMB100,000. Series Pre-A Ordinary Shares were classified as equity as they were not redeemable. In July 2017, upon Series A-2 financing, certain rights were granted to holders of Series Pre-A Ordinary Shares, including contingent redemption rights. Series Pre-A Ordinary Shares were effectively re-designated to Series Pre-A Preferred Shares. Such re-designation was accounted for as a repurchase and cancellation of Series Pre-A Ordinary Shares and a separate issuance of Series Pre-A Preferred Shares. Accordingly, the excess of fair value of the Series Pre-A Preferred Shares over the fair value of the Series Pre-A Ordinary Shares repurchased from employee shareholders was recorded as an employee compensation. While for other non-employee Series Pre-A shareholders, such difference was recognized as a deemed dividend given to these shareholders. The excess of the fair value of all Series Pre-A Ordinary Shares over the carrying value of these shares was accounted for as a retirement of the Series Pre-A Ordinary Shares. The Company elected to charge the excess entirely to accumulated deficits.

In August 2020, the Company completed its US IPO and 190,000,000 Class A Ordinary Shares were issued with proceeds of US$1,042,137, net of underwriter commissions and relevant offering expenses. Concurrently with completion of the IPO, 66,086,955 Class A Ordinary Shares were issued for a consideration of US$380,000. On August 7, 2020, the Company issued an additional 28,500,000 Class A Ordinary Shares upon the exercise of underwriters’ over-allotment option for a consideration of US$157,320.

All of the Preferred Shares (other than those beneficially owned by Mr. Li Xiang, the founder and the CEO of the Company) were automatically converted to 1,045,789,275 Class A Ordinary Shares immediately upon the completion of the IPO. Concurrently, all Preferred Shares beneficially owned by Mr. Li Xiang were automatically converted to 115,812,080 Class B Ordinary Shares.

In December 2020, the Company completed a follow-on offering of 108,100,000 Class A Ordinary Shares, which included 14,100,000 Class A Ordinary Shares issued in connection with the underwriters’ full exercise of their over-allotment option.

In February 2021, the Company issued 34,000,000 Class A Ordinary Shares as treasury shares for future exercise of share options.

In May 2021, the Company issued 108,557,400 Class B Ordinary Shares as treasury shares to Mr. Li Xiang, the Company’s founder and chief executive officer, pursuant to the Company’s 2021 Share Incentive Plan.

21. Ordinary Shares (Continued)

In August 2021, the Company completed its HK IPO and 100,000,000 Class A Ordinary Shares were issued with proceeds of HK$11,633,130, net of underwriter commissions and relevant offering expenses. In September 2021, the Company issued an additional 13,869,700 Class A Ordinary Shares upon the exercise of underwriters’ over-allotment option for a consideration of HK$1,634,462.

On June 28, 2022, the Company filed a prospectus supplement in the United States to sell up to an aggregate of US$ 2,000,000 of ADSs, each representing two Class A Ordinary Shares, through an at-the-market equity offering program (the “ATM Offering”) on the Nasdaq Global Select Market. As of December 31, 2022, 18,862,564 Class A Ordinary Shares were legally issued and the proceeds has been received by the Company.

As of December 31, 2022, 12,206,256 share options that fulfilled the vesting conditions were exercised and 127,062 RUSs that fulfilled the vesting conditions were vested.

As of December 31, 2021 and 2022, the Company had issued and outstanding ordinary shares of 1,929,562,426 and 1,954,353,892, respectively.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Convertible Redeemable Preferred Shares and Warrants

12 Months Ended

Dec. 31, 2022

Convertible Redeemable Preferred Shares and Warrants

Convertible Redeemable Preferred Shares and Warrants

22. Convertible Redeemable Preferred Shares and Warrants

Prior to the US IPO in August 2020, the Company issued convertible redeemable preferred shares, which are summarized in the following table:


Series	Issuance Date	Shares Issued	Issue Price per Share	Proceeds from Issuance
			RMB	RMB
Pre-A⁽¹⁾	July 21, 2017	50,000,000	RMB2.00	100,000
A-1	July 4, 2016	129,409,092	RMB6.03	780,000
A-2	July 21, 2017	126,771,562	RMB7.89	1,000,000
A-3	September 5, 2017	65,498,640	RMB9.47	620,000
B-1	November 28, 2017	115,209,526	RMB13.11	1,510,000
B-2	June 6, 2018	55,804,773	RMB14.16	790,000
B-3⁽²⁾	January 7/July 2, 2019	119,950,686	RMB14.16	1,701,283
C⁽³⁾	July 2/December 2,2019/January 23, 2020	267,198,535	US$2.23/ US$1.89	3,626,924
D	July 1, 2020	231,758,541	US$2.64/ US$2.35	3,851,034

(1)

Upon the issuance of Series A-2 Preferred Shares, Series Pre-A Ordinary Shares were re-designated to Series Pre-A Preferred Shares (see Note 21).

(2)

Including 11,873,086 Series B-3 Preferred Shares converted from the convertible promissory notes issued by the Company in January 2019. The Series B-3 Preferred Shareholders and convertible promissory notes holders were granted:

the right to obtain additional shares to be issued in the next round of new financing for free to keep their shareholding percentage (or as converted shareholding percentage for convertible promissory notes holders) unchanged (the “Series B-3 Anti-Dilution Warrant”); and

the right to acquire additional shares to be issued in next two rounds of financing at a 15% discount of purchase price, up to the subscription amount equal to the investment amount in their Series B-3 Preferred Shares and convertible promissory notes (the “Series B-3 Additional Warrant”).

22. Convertible Redeemable Preferred Shares and Warrants (Continued)

(3)

Including 78,334,557 shares of Series C Preferred Shares issued upon the exercise of the Series B-3 Additional Warrant by certain Series B-3 Shareholders and all convertible promissory notes holders at a cash exercise price of RMB1,022,045, or RMB13.02 per share. The leading investor of Series C Preferred Shareholders was granted the right to acquire additional shares to be issued in next round of financing at a 15% discount of purchase price, up to the subscription amount equal to the investment amount in Series C Preferred Shares (the “Series C Additional Warrant”). All non-refundable cash considerations for the issuance of Series C Preferred Shares, including 4,109,127 shares registered subsequently on January 3, 2020, were received in full as of December 31, 2019 and accordingly all shares are considered issued and outstanding from accounting perspective.

On January 23, 2020, 18,916,548 shares of Series C Preferred Shares were issued upon the exercise of the Series B-3 Anti-Dilution Warrant.

The Series B-3 Anti-Dilution Warrant, the Series B-3 Additional Warrant and the Series C Additional Warrant (collectively referred as “Warrants”) were determined to be freestanding liability instruments and recorded at fair value upon initial recognition. Proceeds received from issuance of Series B-3 Preferred Shares and convertible promissory notes, and Series C Preferred Shares were first allocated to the Warrants based on their initial fair values. The Warrants were marked to the market with the changes recorded in the consolidated statements of comprehensive loss in the applicable subsequent reporting period. The Warrants shall terminate upon the earlier of the consummation of an IPO or the occurrence of a Deemed Liquidation Event. The balance of Warrants was reduced to zero as the Warrants terminated upon the issuance of Series D.

The Series Pre-A, A-1, A-2, A-3, B-1, B-2, B-3, C and D Preferred Shares are collectively referred to as the “Preferred Shares”. All series of Preferred Shares have the same par value of US$0.0001 per share.

All of the Preferred Shares (other than those beneficially owned by Mr. Li Xiang, the founder and the chief executive officer of the Company) were automatically converted to 1,045,789,275 Class A Ordinary Shares immediately upon the completion of the US IPO in August 2020. Concurrently, all Preferred Shares beneficially owned by Mr. Li Xiang were automatically converted to 115,812,080 Class B Ordinary Shares.

The major rights, preferences and privileges of the Preferred Shares are as follows:

Conversion

Preferred Shares of the Company are convertible to Class A Ordinary Shares at any time at the option of the holders, and would automatically be converted into Class A Ordinary Shares 1) upon a Qualified IPO (“QIPO”); or 2) upon the written consent of the holders of a majority of the outstanding Preferred Shares of each class with respect to conversion of each class.

The initial conversion ratio of Preferred Shares to ordinary shares shall be 1:1, and shall be subject to adjustment and readjustment from time to time for share splits and combinations, ordinary share (on an as converted basis) dividends and distributions, reorganizations, mergers, consolidations, reclassifications, exchanges, substitutions, and dilutive issuance.

Redemption

The Company shall redeem, at the option of any holder of outstanding Preferred Shares, all of the outstanding Preferred Shares (other than the unpaid shares) held by the requesting holder, at any time after the earliest to occur of (a) the Company fails to consummate a qualified IPO (“QIPO”) by June 30, 2023, or b) any occurrence of a material breach or any material change of the relevant laws or the occurrence of any other factors, which has resulted or is likely to result in the Company’s inability to control and consolidate the financial statements of any of the PRC subsidiaries or VIEs, each Preferred Share shall be redeemable at the option of such Preferred Shareholder, out of funds legally available therefor by the Company.

22. Convertible Redeemable Preferred Shares and Warrants (Continued)

The redemption amount payable for each Preferred Share (other than the unpaid shares) will be an amount equal to 100% of the Preferred Shares’ original issue price, plus all accrued but unpaid dividends thereon up to the date of redemption and simple interest on the Preferred Shares’ original issue price at the rate of 8% per annum, proportionally adjusted for share subdivisions, share dividends, reorganizations, reclassifications, consolidations, mergers or similar transactions.

Upon the redemption, Series D Preferred Shares shall rank senior to Series C Preferred Shares, Series C Preferred Shares shall rank senior to Series B-3 Preferred Shares, Series B-3 Preferred Shares shall rank senior to Series B-2 Preferred Shares, Series B-2 Preferred Shares shall rank senior to Series B-1 Preferred Shares, Series B-1 Preferred Shares shall rank senior to Series A-3 Preferred Shares, Series A-3 Preferred Shares shall rank senior to Series A-2 Preferred Shares, Series A-2 Preferred Shares shall rank senior to Series A-1 Preferred Shares, Series A-1 Preferred Shares shall rank senior to Series Pre-A Preferred Shares.

Upon the 2019 Reorganization, QIPO definition of Series Pre-A, A-1, A-2, A-3, B-1, B-2 and B-3 Preferred Shares was revised to be the same as Series C Preferred Shares, and all Preferred Shareholders (including Series D issued on July 1, 2020) were given the option to, in the event that the funds of the Company legally available for redemption on the redemption date are insufficient to redeem the total number of redeeming shares required to be redeemed, 1) request the Company to issue a convertible promissory note (“Redemption Note”) for the unpaid portion of the redemption price or 2) allow the Company to carry forward and redeem the shares when legally funds are sufficient to do so. Such Redemption Note shall be due and payable no later than 24 months of the redemption date with a simple rate of 8% per annum. Each holder of such Redemption Note shall have the right, at its option, to convert the unpaid principal amount of the Redemption Note and the accrued but unpaid interest thereon, into the same class of Preferred Shares requested to be redeemed at a per share conversion price equal to the applicable original issue price.

Voting Rights

The holders of the Preferred Shares shall have the right to one vote for each ordinary share into which each outstanding Preferred Share held could then be converted. The holders of the Preferred Shares vote together with the Ordinary Shareholders, and not as a separate class or series, on all matters put before the shareholders.

Dividends

Each Preferred Shareholder and Ordinary Shareholder shall be entitled to receive dividends for each share held by such holder, payable out of funds or assets when and as such funds or assets become legally available therefor pari passu with each other on a pro rata basis. Such dividends shall be payable only when, as, and if declared by the Board of Directors and shall be non-cumulative.

No dividends on preferred and ordinary shares have been declared since the issuance date until December 31, 2022.

Liquidation

In the event of any liquidation, the holders of Preferred Shares (except for Series Pre-A Preferred Shares) have preference over holders of Series Pre-A Preferred Shares and ordinary shares with respect to payment of dividends and distribution of assets. Upon Liquidation, Series D Preferred Shares shall rank senior to Series C Preferred Shares, Series C Preferred Shares shall rank senior to Series B-3 Preferred Shares, Series B-3 Preferred Shares shall rank senior to Series B-2 Preferred Shares, Series B-2 Preferred Shares shall rank senior to Series B-1 Preferred Shares, Series B-1 Preferred Shares shall rank senior to Series A-3 Preferred Shares, Series A-3 Preferred Shares shall rank senior to Series A-2 Preferred Shares, Series A-2 Preferred Shares shall rank senior to Series A-1 Preferred Shares, Series A-1 Preferred Shares shall rank senior to Series Pre-A Preferred Shares and ordinary shares.

22. Convertible Redeemable Preferred Shares and Warrants (Continued)

The holders of Preferred Shares (exclusive of unpaid shares and Series Pre-A Preferred Shares) shall be entitled to receive an amount per share equal to an amount equal to the higher of (1) 100% of the original issue price of such Preferred Shares, plus an aggregate interests calculated at a simple rate of 8% per annum and multiplied by a fraction and (2) the amount receivable by the Preferred Shareholders if all the assets of the Company available for distribution to shareholders is distributed ratably among all the Members on an as-converted basis. If there are still assets of the Company legally available for distribution, such remaining assets of the Company shall be distributed to the holders of issued and outstanding Series Pre-A Preferred Shares and ordinary shares.

Conversion upon US IPO

In August 2020, in connection with the completion of US IPO, all of the Preferred Shares were automatically converted to 1,045,789,275 Class A ordinary shares and 115,812,080 Class B ordinary shares based on the aforementioned conversion price.

Accounting for Preferred Shares

The Company classified the Preferred Shares as mezzanine equity in the consolidated balance sheets because they were redeemable at the holders’ option upon the occurrence of certain deemed liquidation events and certain event outside of the Company’s control. The Preferred Shares are recorded initially at fair value, net of issuance costs.

The Company recognized accretion to the respective redemption value of the Preferred Shares over the period starting from issuance date to July 4, 2022, the earliest redemption date. The Company recognized accretion of the Preferred Shares amounted to RMB651,190, nil and nil for the years ended December 31, 2020, 2021 and 2022, respectively.

Prior to the 2019 Reorganization, the Company has determined that host contract of the Series Pre-A, A-1, A-2, A-3, B-1, B-2 and B-3 Preferred Shares were more akin to an equity host. The conversion feature embedded in the Preferred Shares is considered to meet the definition of derivative in accordance with ASC 815-15-25, due to the optional redemption settlement mechanism upon deemed liquidation could give rise to net settlement of the conversion provision in cash if the per share distribution amount is higher than the fixed redemption amount, instead of the settlement by delivery of the ordinary shares of the Company. This equity-like conversion feature was considered clearly and closely related to the equity host, therefore does not warrant bifurcation. The Company also assessed the redemption features and liquidation feature and determined that these features as a freestanding instrument, would not meet the definition of a derivative, and therefore need not be bifurcated and separately accounted for.

After the 2019 Reorganization, host contract of the Preferred Shares is more akin to a debt host, given the Preferred Shares holders have potential creditors’ right in the event of insufficient fund upon redemption, along with other debt-like features in the terms of the Preferred Shares, including the redemption rights. Company considered extinguishment accounting should be applied for all Preferred Shares issued prior to the 2019 Reorganization from a qualitative perspective, although from quantitative perspective, the changes of these preferred shares’ fair value before and after the modification was immaterial. Hence, accumulated deficit was increased by the difference between the fair value of Series Pre-A, A-1, A-2, A-3, B-1, B-2 and B-3 Preferred Shares after modification and the carrying amount of these Preferred Shares immediately before the modification.

22. Convertible Redeemable Preferred Shares and Warrants (Continued)

The Company also reassessed the conversion feature, redemption feature and liquidation preference of all Preferred Shares after the 2019 Reorganization. The equity-like conversion feature is considered not clearly and closely related to the debt host, and therefore was bifurcated and separately accounted for using fair value. For redemption feature, as it would not result in any substantial premium or discount, nor would it accelerate the repayment of the contractual principal amount, it is clearly and closely related to the debt host, and therefore shall not be bifurcated and accounted for separately. The liquidation preference, on the other hand, may result in substantial premium and could accelerate repayment of the principal upon occurrence of contingent redemption events. Hence, the liquidation preference is considered not clearly and closely related to the debt host and should be bifurcated and accounted for separately. The Company determined the fair value of these derivative liabilities and concluded that the fair value of the bifurcated liquidation features was insignificant. The derivative liabilities of conversion features was bifurcated from the preferred shares initially at fair value, and subsequently was marked to market value with the fair value change recognized in the consolidated statements of comprehensive loss in the applicable subsequent reporting period. Upon the consummation of US IPO and conversion of preferred shares, the conversion feature of preferred shares were automatically exercised, consequently, the derivative liabilities of conversion features were reduced to zero.

The movement of the warrants and conversion feature derivative liabilities are summarized below:


	Warrants	Derivative
	Liabilities	Liabilities	Total
Balance at January 1, 2020	351,750	1,296,940	1,648,690
Issuance	—	328,461	328,461
Fair value change	(46,812)	(225,515)	(272,327)
Exercise	(305,333)	(1,400,670)	(1,706,003)
Translation to reporting currency	395	784	1,179
Balance at December 31, 2020	—	—	—

The Company’s convertible redeemable preferred shares activities for the years ended December 31, 2020 are summarized below:


	Series Pre‑A		Series A‑1		Series A‑2		Series A‑3		Series B‑1		Series B‑2		Series B‑3		Series C		Series D		Total
	Number	Amount	Number	Amount	Number	Amount	Number	Amount	Number	Amount	Number	Amount	Number	Amount	Number	Amount	Number	Amount	Number	Amount
	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)
Balances as of January 1, 2020	50,000,000	434,886	129,409,092	980,949	126,771,562	1,074,959	65,498,640	619,770	115,209,526	1,347,607	55,804,773	710,303	119,950,686	1,551,080	248,281,987	3,536,108	—	—	910,926,266	10,255,662
Exercise of Series B-3 Anti-Dilution Warrant	—	—	—	—	—	—	—	—	—	—	—	—	—	—	18,916,548	305,333	—	—	18,916,548	305,333
Bifurcation of conversion feature	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	(81,082)	—	—	—	(81,082)
Issuance of preferred shares-Series D	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	231,758,541	3,603,655	231,758,541	3,603,655
Accretion on convertible redeemable preferred shares to redemption value	—	—	—	34,229	—	63,363	—	46,738	—	136,567	—	64,859	—	80,635	—	178,007	—	46,792	—	651,190
Effect of exchange rate changes on preferred shares	—	(858)	—	(1,746)	—	(1,770)	—	(964)	—	(1,899)	—	(1,040)	—	(2,613)	—	28	—	—	—	(10,862)
Conversion of preferred shares to ordinary shares	(50,000,000)	(434,028)	(129,409,092)	(1,013,432)	(126,771,562)	(1,136,552)	(65,498,640)	(665,544)	(115,209,526)	(1,482,275)	(55,804,773)	(774,122)	(119,950,686)	(1,629,102)	(267,198,535)	(3,938,394)	(231,758,541)	(3,650,447)	(1,161,601,355)	(14,723,896)
Balances as of December 31, 2020	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Loss Per Share

12 Months Ended

Dec. 31, 2022

Loss Per Share

Loss Per Share

23. Loss Per Share

Basic loss per share and diluted loss per share have been calculated in accordance with ASC 260 for the years ended December 31, 2021 and 2022 as follows:


	For the Years Ended December 31,
	2020	2021	2022
Numerator:
Net loss	(151,657)	(321,455)	(2,032,348)
Accretion on convertible redeemable preferred shares to redemption value	(651,190)	—	—
Effect of exchange rate changes on convertible redeemable preferred shares	10,862	—	—
Less: Net loss attributable to noncontrolling interests	—	—	(20,133)
Net loss attributable to ordinary shareholders of Li Auto Inc.	(791,985)	(321,455)	(2,012,215)
Including: Net loss from continuing operations attributable to ordinary shareholders of Li Auto Inc.	(806,358)	(321,455)	(2,012,215)
Net income from discontinued operations attributable to ordinary shareholders of Li Auto Inc.	14,373	—	—

Denominator:
Weighted average ordinary shares outstanding—basic and diluted	870,003,278	1,853,320,448	1,941,230,998

Basic and diluted net loss per share from continuing operations attributable to ordinary shareholders of Li Auto Inc.	(0.93)	(0.17)	(1.04)
Basic and diluted net income per share from discontinued operations attributable to ordinary shareholders of Li Auto Inc.	0.02	—	—
Basic and diluted net loss per share attributable to ordinary shareholders of Li Auto Inc.	(0.91)	(0.17)	(1.04)

For the years ended December 31, 2020, 2021 and 2022, the Company had ordinary equivalent shares, including preferred shares, options and RSUs granted, an unsecured convertible corporate loan issued in November 2017 and convertible debt (shares subject to conversion) issued in April 2021 (Note 13). As the Group incurred a loss for each of the periods ended December 31, 2020, 2021 and 2022, these ordinary equivalent shares were determined to be anti-dilutive and excluded from the calculation of diluted loss per share of the Company. The weighted average numbers of preferred shares, options and RSUs granted, unsecured corporate loan and convertible debt (shares subject to conversion) excluded from the calculation of diluted loss per share of the Company were 669,666,355, 54,605,925, 22,639,154 and nil for the year ended December 31, 2020, nil, 72,791,430, nil and 44,853,801 for the year ended December 31, 2021, and nil, 91,499,552, nil, and 60,861,105 for the year ended December 31, 2022, respectively.

Share-based Compensation

12 Months Ended

Dec. 31, 2022

Share based Compensation

Share based Compensation

24. Share-based Compensation

Compensation expenses recognized for share-based awards granted by the Company were as follows:


	For the Year Ended December 31,
	2020	2021	2022
Research and development expenses	60,789	741,793	1,333,710
Selling, general and administrative expenses	80,491	332,850	674,610
Cost of sales	1,515	26,713	44,845
Total	142,795	1,101,356	2,053,165

(i)	2019 and 2020 Share Incentive Plan

In July 2019, the Group adopted the 2019 Share Incentive Plan (the “2019 Plan”), which allows the Company to grant options and RSUs of the Group to its employees, directors and consultants. As of December 31, 2022, the maximum number of Class A ordinary shares that may be issued under the 2019 Plan is 141,083,452.

The Group began to grant share options to employees from 2015. In conjunction with the Company’s Reorganization in July 2019, the Group transferred share options from Beijing CHJ to the Company according to the 2019 Plan. The share options of the Group under the 2019 Plan have a contractual term of ten years from the grant date. The options granted have both service and performance condition. The options are generally scheduled to be vested over five years, one-fifth of the awards shall be vested after one service year from the vesting commencement date. Meanwhile, the options granted are only exercisable upon the occurrence of an IPO by the Group.

These awards have a service condition and a performance condition related to an IPO. For share options granted with performance condition, the share-based compensation expenses are recorded when the performance condition is considered probable. As a result, the cumulative share-based compensation expenses for these options that have satisfied the service condition were recorded upon the completion of the US IPO in the third quarter of 2020. The Group recognized the share options of the Company granted to the employees using graded-vesting method over the vesting term of the awards, net of estimated forfeitures.

In July 2020, the Group adopted the 2020 Share Incentive Plan (the “2020 Plan”), which allows the Company to grant options and RSUs of the Group to its employees, directors and consultants. As of December 31, 2022, the maximum number of Class A ordinary shares that may be issued under the 2020 Plan is 165,696,625. The Company commenced to grant RSUs from July 1, 2021 under the 2020 plan. The contractual term is ten years from the grant date and the options and RSUs granted only have service conditions. The options and RSUs are generally scheduled to be vested over five years, one-fifth of the awards shall be vested after one service year from the vesting commencement date.

24. Share-based Compensation (Continued)

(a)	The following table summarizes Company share option activity under the 2019 Plan and 2020 Plan for the years ended December 31, 2020, 2021 and 2022:


			Weighted
	Number of	Weighted	Average	Aggregate
	Options	Average	Remaining	Intrinsic
	and Shares	Exercise Price	Contractual Life	Value
		US$	In Years	US$
Outstanding as of December 31, 2019	54,760,000	0.10	6.73	73,926
Granted	4,224,000	0.10
Forfeited	(2,070,000)	0.10
Outstanding as of December 31, 2020	56,914,000	0.10	5.95	814,724
Granted	36,987,700	0.10
Exercised	(6,404,416)	0.10
Forfeited	(4,106,000)	0.10
Outstanding as of December 31, 2021	83,391,284	0.10	6.70	1,330,091
Granted	579,600	0.10
Exercised	(5,801,840)	0.10
Forfeited	(3,832,800)	0.10
Outstanding as of December 31, 2022	74,336,244	0.10	5.56	750,796

Vested and expected to vest as of December 31, 2021	79,915,157	0.10	6.60	1,274,647
Exercisable as of December 31, 2021	40,251,584	0.10	4.55	642,013
Vested and expected to vest as of December 31, 2022	71,370,113	0.10	5.46	720,838
Exercisable as of December 31, 2022	46,292,444	0.10	4.06	467,554

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the estimated fair value of the underlying stock at each reporting date.

The weighted-average grant date fair value for options granted under the Company’s 2019 Plan and 2020 Plan was US$1.71, US$15.78 and US$16.05 for the year ended December 31, 2020, 2021 and 2022, respectively, computed using the binomial option pricing model.

24. Share-based Compensation (Continued)

The fair value of each option granted under the Company’s 2019 Plan and 2020 Plan for the years ended December 31, 2020, 2021 and 2022 was estimated on the date of each grant using the binomial option pricing model with the assumptions (or ranges thereof) in the following table:


	For the Year Ended December 31,	For the Year Ended December 31,	For the Year Ended December 31,
	2020	2021	2022
Exercise price (US$)	0.10	0.10	0.10
Fair value of the ordinary shares on the date of option grant (US$)	1.35-1.90	14.42-17.35	16.05
Risk‑free interest rate	0.69%-1.92%	0.93%-1.48%	1.51%
Expected term (in years)	10.00	10.00	10.00
Expected dividend yield	0%	0%	0%
Expected volatility	45%-46%	47%-48%	48%

The risk-free interest rate is estimated based on the yield curve of US Sovereign Bond as of the option valuation date. The expected volatility at the grant date and each option valuation date is estimated based on annualized standard deviation of daily stock price return of comparable companies with a time horizon close to the expected expiry of the term of the options. The Group has never declared or paid any cash dividend on its capital stock, and the Group does not anticipate any dividend payments in the foreseeable future. Expected term is the contract life of the options.

As of December 31, 2022, there were US$76,430 of unrecognized compensation expenses related to the share options granted to the Group’s employees, which are expected to be recognized over a weighted-average period of 3.32 years and may be adjusted for future changes in forfeitures.

(b)	The following table summarizes Company’s RSU activity under the 2019 plan and 2020 Plan for the years ended December 31, 2021 and 2022:


		Weighted Average	Weighted Average
	Number of	Grant Date	Remaining
	Shares	Fair Value	Contractual Life
		US$
Unvested as of December 31, 2020	—	—	—
Granted	8,586	17.25
Unvested as of December 31, 2021	8,586	17.25	9.50
Granted	36,199,400	17.13
Vested	(127,062)	18.76
Forfeited	(5,087,800)	16.74
Unvested as of December 31, 2022	30,993,124	17.20	9.21

As of December 31, 2022, there was US$203,638 in unrecognized compensation expense related to RSUs granted to the Group’s employees, which are expected to be recognized over a weighted-average period of 4.21 years and may be adjusted for future changes in forfeitures.

24. Share-based Compensation (Continued)

(ii)	2021 Share Incentive Plan

In March 2021, the Group adopted the 2021 Share Incentive Plan (the “2021 Plan”), which granted options to purchase 108,557,400 Class B ordinary shares to Mr. Li Xiang, the Company’s founder and chief executive officer. The exercise price of the options is US$14.63 per share, or US$29.26 per ADS. The date of expiration for this grant is March 8, 2031. The granted options are subject to performance-based vesting conditions. The granted options are divided into six equal tranches, or 18,092,900 each. The first tranche will become vested when the aggregate number of the Group’s vehicle deliveries in any 12 consecutive months exceeds 500,000. The second to sixth tranches will become vested when the aggregate number of vehicle deliveries in any 12 consecutive months exceeds 1,000,000, 1,500,000, 2,000,000, 2,500,000 and 3,000,000, respectively.

On May 5, 2021, the board of directors of the Company approved to replace the options to purchase 108,557,400 Class B ordinary shares of the Company under the Company’s 2021 Share Incentive Plan previously granted to Mr. Li Xiang on March 8, 2021 with the same amount of restricted Class B ordinary shares (the ”Award Shares”) under the same plan, all of which will become legally vested upon grant on May 5, 2021. However, Mr. Li Xiang has also agreed, undertaken, and covenanted not to transfer or dispose of, directly or indirectly, any interest in the Class B ordinary shares acquired upon vesting of the Award Shares, which are still subject to certain restrictions, terms and performance conditions substantially similar to the vesting conditions of the options being replaced. In addition to the performance conditions, Mr. Li Xiang is required to pay US$14.63 per share, which is equal to the exercise price of the options being replaced, to have the relevant tranche of the Award Shares released from the restrictions. Mr. Li Xiang also has agreed, undertaken, and covenanted not to cast any vote or claim any dividend paid on any Award Shares before such number of Award Shares are released from the restrictions. Any Award Shares that are not released from the restrictions by March 8, 2031 are subject to compulsory repurchase by the Company at their par value.

In July 2021, all such 108,557,400 Award Shares were converted from Class B Ordinary Shares (10 votes per share) to Class A Ordinary Shares (1 vote per share) on one-to-one basis with effect immediately upon the Company’s listing on the Main Board of HKEx in August 2021. The modification is solely subjected to satisfy HKEx’s requirement from legal perspective. Pursuant to the grant of the Award shares, Mr. Li Xiang has undertaken and covenanted that unless and until, in respect of any tranche of Award Shares, (a) the relevant performance condition has been met and (b) the relevant exercise price (US$14.63) has been paid, Mr. Li Xiang will not offer, pledge, sell any relating award shares and claim dividend or voting rights in respect of the Award Shares.

As of December 31, 2022, the Group did not recognize any compensation expense for shares granted to Mr. Li Xiang, because the Group considers it is not probable, December 31, 2022, that the performance-based vesting conditions will be satisfied. Therefore, there were US$538,445 of unrecognized compensation expenses related to the restricted shares granted under 2021 Plan as of December 31, 2022.

The following table summarizes activities of the Company’s performance-based restricted shares under the 2021 Plan for the years ended December 31, 2021 and 2022:


	Number of	Weighted	Weighted Average
	Shares	Average Exercise	Remaining
	Granted	Price	Contractual Life
		US$	In Years
December 31, 2020	—	—	—
Granted	108,557,400	14.63	—
December 31, 2021	108,557,400	14.63	9.19
Granted	—	—
December 31, 2022	108,557,400	14.63	8.19

The weighted-average grant date fair value for restricted shares granted under the Company’s 2021 Plan for the years ended December 31, 2021 and 2022 were both US$4.96, computed using the binomial pricing model.

24. Share-based Compensation (Continued)

The fair value of the restricted shares granted under the Company’s 2021 Plan was estimated on the date of grant using the binomial pricing model with the assumptions (or ranges thereof) in the following table (no new grants during the comparative December 31, 2022 period):


	For the Year Ended December 31,
	2021
Exercise price (US$)	14.63
Fair value of the ordinary shares on the date of restricted shares grant (US$)	10.67
Risk-free interest rate	1.59	%
Expected term (in years)	10.00
Expected dividend yield	0	%
Expected volatility	47	%

Risk-free interest rate is estimated based on the yield curve of US Sovereign Bond as of the valuation date. The expected volatility at the grant date and each valuation date is estimated based on annualized standard deviation of daily stock price return of comparable companies with a time horizon close to the expected expiry of the term of the restricted shares. The Group has never declared or paid any cash dividend on its capital stock, and the Group does not anticipate any dividend payments in the foreseeable future. Expected term is the contract life of the restricted shares.

Taxation

12 Months Ended

Dec. 31, 2022

Taxation

Taxation

25. Taxation

(a)Value added tax

The Group is subject to statutory VAT rate of 13% for revenue from sales of vehicles and spare parts in the PRC.

Wheels Technology is subject to 13% VAT for software research and development and relevant services. Wheels Technology is entitled to a VAT refund in excess of 3% output VAT on the total VAT payable from April 2021, after completing the registration with relevant authorities and obtaining a refund approval from local tax bureau. For the years ended December 31, 2020, 2021 and 2022, nil, nil and RMB234,531 of VAT refunds were received and were recorded as Others, net.

(b)Income taxes

Cayman Islands

The Company is incorporated in the Cayman Islands and conducts most of its business through its subsidiaries located in Mainland China and Hong Kong. Under the current laws of the Cayman Islands, the Company is not subject to tax on either income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed.

PRC

Beijing CHJ and Wheels Technology are qualified as a “high and new technology enterprise” under the EIT Law and are eligible for a preferential enterprise income tax rate of 15%, respectively. The high and new technology enterprise certificate is effective for a period of three years. Other Chinese companies are subject to enterprise income tax (“EIT”) at a uniform rate of 25% as of December 31, 2022.

25. Taxation (Continued)

Wheels Technology, which is our wholly-owned entity primarily engaged in the operations of technology, software research and development and relevant services, was awarded as a Software Enterprise and was thereby entitled to an income tax exemption for two years beginning from its first profitable calendar year since 2021, and a 50% reduction in the standard statutory rate for the subsequent three consecutive years.

Under the EIT Law enacted by the National People’s Congress of PRC on March 16, 2007 and its implementation rules which became effective on January 1, 2008, dividends generated after January 1, 2008 and payable by a foreign investment enterprise in the PRC to its foreign investors who are non-resident enterprises are subject to a 10% withholding tax, unless any such foreign investor’s jurisdiction of incorporation has a tax treaty with the PRC that provides for a different withholding arrangement. Under the taxation arrangement between the PRC and Hong Kong, a qualified Hong Kong tax resident which is the “beneficial owner” and directly holds 25% or more of the equity interest in a PRC resident enterprise is entitled to a reduced withholding tax rate of 5%. The Cayman Islands, where the Company was incorporated, does not have a tax treaty with PRC.

The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located”. Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its operations outside of the PRC will be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history of the EIT Law, there is uncertainty as to the application of the EIT Law. Should the Company be treated as a resident enterprise for PRC tax purposes, the Company will be subject to PRC income tax on worldwide income at a uniform tax rate of 25%.

According to relevant laws and regulations promulgated by the State Administration of Tax of the PRC, enterprises engaging in research and development activities were entitled to claim 150% of their research and development expenses incurred as tax deductible expenses when determining their assessable profits for that year (the “R&D Deduction”). The State Taxation Administration of the PRC announced in September 2018 that enterprises engaging in research and development activities would be entitled to claim 175% of their research and development expenses as R&D Deduction from January 1, 2018 to December 31, 2023.

Withholding tax on undistributed dividends

According to the current EIT Law and its implementation rules, foreign enterprises, which have no establishment or place in China but derive dividends, interest, rents, royalties and other income (including capital gains) from sources in China or which have an establishment or place in China but the aforementioned incomes are not connected with the establishment or place shall be subject to the PRC withholding tax (“WHT”) at 10% (a further reduced WHT rate may be available according to the applicable double tax treaty or arrangement provided that the foreign enterprise is the tax resident of the jurisdiction where it is located and it is the beneficial owner of the dividends, interest and royalties income).

Hong Kong

Under the current Hong Kong Inland Revenue Ordinance, the subsidiaries of the Group incorporated in Hong Kong are subject to 16.5% Hong Kong profit tax on their taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiaries incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax.

Singapore

Corporate taxpayers are subject to Singapore income tax on income accruing in or derived from Singapore and foreign-source income received or deemed to be received in Singapore from outside Singapore, unless specifically exempted from tax. The prevailing corporate income tax rate in Singapore is 17%. Additionally, payments of dividends by the subsidiaries incorporated in Singapore to the Company are not subject to any Singapore withholding tax.

25. Taxation (Continued)

Composition of income tax expense and income tax benefit for the periods presented is as follows:


	For the Years Ended December 31,
	2020	2021	2022
Current income tax expense	—	—	1,331
Deferred income tax expense/(benefit)	(22,847)	168,643	(128,338)
Income tax (benefit)/expense	(22,847)	168,643	(127,007)

Reconciliations of the income tax expense computed by applying the PRC statutory income tax rate of 25% to the Group’s income tax expense for each of the years presented are as follows:


	For the Years Ended December 31,
	2020	2021	2022
Loss before income tax expense	(188,877)	(152,812)	(2,159,355)
Income tax credit computed at PRC statutory income tax rate of 25%	(47,219)	(38,203)	(539,839)
Tax effect of tax‑exempt entity and preferential tax rate	30,140	(89,928)	(321,507)
Tax effect of R&D Deduction and others	(144,503)	(314,141)	(648,317)
Non‑deductible expenses	21,511	318,185	566,597
Change in valuation allowance	117,224	292,730	816,059
Income tax (benefit)/expense	(22,847)	168,643	(127,007)

For the years ended December 31, 2022, the loss before income tax expenses have increased and resulted in a larger net operating loss, which need to be fully valuation allowanced.

(c)Deferred tax

The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will be more-likely-than-not realized. This assessment considers, among other matters, the nature, frequency and severity of recent loss and forecasts of future profitability. These assumptions require significant judgment and the forecasts of future taxable income are consistent with the plans and estimates the Group is using to manage the underlying business. The statutory income tax rate of 25% or applicable preferential income tax rates were applied when calculating deferred tax assets.

25. Taxation (Continued)

The Group’s deferred tax assets (liabilities) consist of the following components:


	For the Years Ended December 31,
	2020	2021	2022
Deferred tax assets
Net operating loss carryforwards	1,144,397	1,119,659	1,522,412
Accrued expenses and others	66,773	228,734	416,517
Inventory write-downs and losses on inventory purchase commitments	—	—	219,518
Impairment of long-lived assets and allowance for credit losses	7,694	13,224	15,093
Acquisition of Changzhou Manufacturing Base Phase I and Phase II (Note 10) and Changzhou Huixiang (Note 5)	—	11,969	13,782
Depreciation and amortization	16,220	190	—
Unrealized financing cost and investment loss	13,125	—	900
Total deferred tax assets	1,248,209	1,373,776	2,188,222
Less: Valuation allowance	(1,004,665)	(1,297,395)	(2,113,455)
Deferred tax assets, net of valuation allowance	243,544	76,381	74,767
Deferred tax liabilities
Accelerated tax depreciation and others	(215,030)	(195,121)	(68,652)
Fair value change of certain investments	(5,667)	(15,087)	(9,157)
Total deferred tax liabilities	(220,697)	(210,208)	(77,809)
Deferred tax assets/(liabilities), net	22,847	(133,827)	(3,042)

A valuation allowance is provided against deferred tax assets when the Group determines that it is more-likely-than-not that the deferred tax assets will not be utilized in the future. Movement of valuation allowance is as follow:


	For the Years Ended December 31,
	2020	2021	2022
Valuation allowance
Balance at beginning of the year	887,441	1,004,665	1,297,395
Additions	148,458	395,955	1,147,602
Reversals	(31,234)	(103,225)	(331,542)
Balance at ending of the year	1,004,665	1,297,395	2,113,455

For the year ended December 31, 2022, the Group forecasted Beijing CHJ Automobile Technology Co., Ltd. (“Beijing CHJ Technology”) is likely to achieve pre-tax profit in 2023 and will be likely to utilize part of accumulated net loss carryforwards from prior years. As a result, the Group made an assessment and determined that a portion of the gross deferred tax assets of Beijing CHJ Technology is more-likely-than-not to be utilized in the future, and therefore concluded that the valuation allowance relating to these gross deferred tax assets, amounting to RMB63,432 for this subsidiary should be reversed in the income statement as a credit to income tax expense. Except for deferred tax assets recognised for Beijing CHJ Technology, all other deferred tax assets are fully valuation allowanced.

25. Taxation (Continued)

As of December 31, 2022, the Group had net operating loss carryforwards of approximately RMB6,993,136 which mainly arose from the Group’s certain subsidiaries, VIEs and the VIEs’ subsidiaries established in the PRC. These net operating losses can be carried forward to offset future taxable income and will expire during the period from 2023 to 2032. As of December 31, 2022, deferred tax assets which arose from the net operating loss carryforwards amounting to RMB1,458,980 were fully provided for a related valuation allowance, while the remaining RMB63,432 were expected to be utilized prior to expiration.

Uncertain Tax Positions

The Group did not identify any significant unrecognized tax benefits for each of the periods presented. The Group did not incur any interest related to unrecognized tax benefits, did not recognize any penalties as income tax expense and also does not anticipate any significant change in unrecognized tax benefits within 12 months from December 31, 2022.

(d)Consumption tax

Chongqing Lixiang Automobile Co Ltd (“Chongqing Lixiang Automobile”), as a subsidiary of the Company, is eligible for consumption tax rate of 3% and related surcharge. The consumption tax is calculated based on the sales price of its self-manufactured vehicles at 3% consumption tax rate from August 2021.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Fair Value Measurement

12 Months Ended

Dec. 31, 2022

Fair Value Measurement

Fair Value Measurement

26. Fair Value Measurement

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis include: short-term investments and investment in equity securities with readily determinable fair values.

The following table presents the major financial instruments measured at fair value, by level within the fair value hierarchy as of December 31, 2021 and 2022.


		Fair Value Measurement at Reporting Date Using
		Quoted Prices
	Fair Value as of	in Active Markets for	Significant Other	Significant
	December 31,	Identical Assets	Observable Inputs	Unobservable Inputs
	2021	(Level 1)	(Level 2)	(Level 3)
Assets
Short-term investments	19,157,428	—	19,157,428	—
Equity securities with readily determinable fair value	28,452	28,452	—	—
Total assets	19,185,880	28,452	19,157,428	—


		Fair Value Measurement at Reporting Date Using
		Quoted Prices
	Fair Value as of	in Active Markets for	Significant Other	Significant
	December 31,	Identical Assets	Observable Inputs	Unobservable Inputs
	2022	(Level 1)	(Level 2)	(Level 3)
Assets
Short-term investments	18,026,310	—	18,026,310	—
Long-term financial instruments	50,615	—	50,615	—
Equity securities with readily determinable fair value	12,966	12,966	—	—
Total assets	18,089,891	12,966	18,076,925	—

26. Fair Value Measurement (Continued)

Valuation Techniques

Short-term investments: Short-term investments are investments in financial instruments with variable interest rates and maturity dates within one year. Long-term financial instruments: Long-term financial instruments are investments in financial instruments with variable interest rates and maturity dates greater than one year. Fair value is estimated based on quoted prices of similar financial products provided by the banks at the end of each period (Level 2). The related gain/(loss) amounts are recognized in “interest income and investment income, net” in the consolidated statements of comprehensive income/(loss).

Equity securities with readily determinable fair value: Equity securities with readily determinable fair values are marketable equity securities which are publicly traded stocks measured at fair value. These securities are valued using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. The related gain/(loss) amounts are recognized in “interest income and investment income, net” in the consolidated statements of comprehensive income/(loss).

Assets measured at fair value on a nonrecurring basis

Assets measured at fair value on a non-recurring basis include: investments in equity securities without readily determinable fair value and equity method investments, as well as property, plant and equipment and inventory. For investments in equity securities without readily determinable fair value, no measurement event occurred during the periods presented. The equity securities without readily determinable fair value were RMB93,150 and RMB558,004 as of December 31, 2021 and 2022. Nil, nil and RMB7,200 impairment charges were recognized for the years ended December 31, 2020, 2021 and 2022. For equity method investments, no impairment loss was recognized for all periods presented. The Group recorded RMB30,381, RMB27,388 and nil impairment loss of property, plant and equipment, and nil, nil and RMB592,545 inventory write-downs for the years ended December 31, 2020, 2021 and 2022, respectively.

Assets and liabilities not measured at fair value but fair value disclosure is required

Financial assets and liabilities not measured at fair value include cash equivalents, time deposits, restricted cash, trade receivable, amounts due from related parties, prepayments and other current assets, short-term borrowings, trade and notes payable, amounts due to related parties, accruals and other current liabilities, other non-current assets, other non-current liabilities, and long-term borrowings.

The Group values its time deposits held in certain bank accounts using quoted prices for securities with similar characteristics and other observable inputs, and accordingly, the Group classifies the valuation techniques that use these inputs as Level 2. The Group classifies the valuation techniques that use the inputs as Level 2 for short-term borrowing as the rates of interest under the loan agreements with the lending banks were determined based on the prevailing interest rates in the market.

Trade receivable, amounts due from related parties, prepayments and other current assets, trade and notes payable, amounts due to related parties and accruals and other current liabilities are measured at amortized cost, their fair values approximate their carrying values given their short maturities.

Borrowings and convertible debt are measured at amortized cost. Their fair values were estimated by discounting the scheduled cash flows through to estimated maturity using estimated discount rates based on current offering rates of comparable institutions with similar services. The fair value of these borrowings obligations approximate their carrying value as the borrowing rates are similar to the market rates that are currently available to the Group for financing obligations with similar terms and credit risks and represent a level 2 measurement.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies

Commitments and Contingencies

27. Commitments and Contingencies

(a)Capital commitments

The Group’s capital commitments primarily relate to commitments on construction and purchase of production facilities, equipment and tooling. Total capital commitments contracted but not yet reflected in the consolidated financial statements as of December 31, 2022 were as follows:


	Total	Less than One Year	1‑3 Years	3‑5 Years	Over 5 Years
Capital commitments	4,281,420	3,807,656	473,764	—	—

(b)Purchase obligations

The Group’s purchase obligations primarily relate to commitments on purchase of raw materials. Total purchase obligations contracted but not yet reflected in the consolidated financial statements as of December 31, 2022 were as follows:


	Total	Less than One Year	1‑3 Years	3‑5 Years	Over 5 Years
Purchase obligations	10,238,626	10,238,626	—	—	—

(c)Legal proceedings

The Group records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis.

Chongqing Zhizao was subject to ongoing legal proceedings arising from disputes of contracts entered into prior to the Group’s acquisition of Chongqing Zhizao in December 2018. Most of these legal proceedings were still at preliminary stages, and the Group was unable to predict the outcome of these cases, or reasonably estimate a range of the possible loss, if any, given the current status of the proceedings. Other than the unpaid contract amount that the Group assumed from Lifan Acquisition and included as the Retained Assets and Liabilities, the Group did not record any accrual for expected loss payments with respect to these cases as of December 26, 2019. The unpaid contract amounts were immaterial as of December 31, 2021 and 2022. In addition to the indemnification of the Retained Assets and Liabilities the Group obtained from Lifan Passenger Vehicle, Lifan Industry also agreed in the Lifan Acquisition Agreement that, it will indemnify any damages and loss arising from disputes of contracts entered into by Chongqing Zhizao prior to the Group’s acquisition of Chongqing Zhizao, including but not limited to above legal proceedings.

On December 26, 2019, the Group disposed 100% equity interest of Chongqing Zhizao, and the ongoing legal proceedings of Chongqing Zhizao were transferred out to Lifan Industry and Lifan Passenger Vehicle.

Other than the above legal proceedings, the Group does not have any material litigation, and has not recorded any material liabilities in this regard as of December 31, 2021 and 2022.

Related Party Balances and Transactions

12 Months Ended

Dec. 31, 2022

Related Party Balances and Transactions

28. Related Party Balances and Transactions

The principal related parties with which the Group had transactions during the years presented are as follows:


Name of Entity or Individual		Relationship with the Company
Beijing Yihang Intelligent Technology Co., Ltd. (“Beijing Yihang”)		Affiliate
Neolix Technologies Co., Ltd. (“Neolix Technologies”)		Affiliate
Airx (Beijing) Technology Co., Ltd. (“Airx”)		Affiliate
Beijing Judianchuxing Technology Limited (“Beijing Judianchuxing”)		Affiliate
Suzhou Yihang Intelligent Technology Co., Ltd. (“Suzhou Yihang”)		Affiliate
Changzhou Huixiang New Energy Auto Parts Co., Ltd. (“Changzhou Huixiang”)		Affiliate before October 2022 (which became a subsidiary since then (Note 5))
Beijing Sankuai Online Technology Co., Ltd. (“Beijing Sankuai ”)		Controlled by Principal Shareholder
Hanhai Information Technology (Shanghai) Co., Ltd. (“Hanhai”)		Controlled by Principal Shareholder

The Group entered into the following related party transactions:


	For the Year Ended December 31,
	2020	2021	2022
Purchase service from Beijing Sankuai	—	969	5,521
Purchase services from Hanhai	—	—	1,190
Purchase materials from Changzhou Huixiang	—	—	811
Purchase R&D service from Beijing Yihang	4,368	12,176	281
Purchase materials from Beijing Yihang	58,361	31,692	73
Purchase R&D service from Suzhou Yihang	—	3,772	—

The Group had the following related party balances:


	As of December 31,
	2021	2022
Due from Neolix Technologies	678	678
Due from Beijing Yihang	334	—
Total	1,012	678


	As of December 31,
	2021	2022
Due to Beijing Yihang	7,102	5,921
Due to Beijing Sankuai	330	1,185
Due to Hanhai	—	61
Due to Airx	23	23
Due to Changzhou Huixiang	30,000	—
Total	37,455	7,190

Restricted Net Assets

12 Months Ended

Dec. 31, 2022

Restricted Net Assets

Restricted Net Assets

29. Restricted Net Assets

The Group’s ability to pay dividends is primarily dependent on the Group receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s subsidiaries, consolidated VIEs and VIEs’ subsidiaries incorporated in PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with US GAAP differ from those reflected in the statutory financial statements of the Group’s subsidiaries.

In accordance with the PRC Regulations on Enterprises with Foreign Investment, a foreign invested enterprise established in the PRC is required to provide certain statutory reserve funds, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profits as reported in the enterprise’s PRC statutory financial statements. A foreign invested enterprise is required to allocate at least 10% of its annual after-tax profits to the general reserve fund until such reserve fund has reached 50% of its registered capital based on the enterprise’s PRC statutory financial statements. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserved funds can only be used for specific purposes and are not distributable as cash dividends.

Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide statutory surplus fund at least 10% of its annual after-tax profits until such statutory surplus fund has reached 50% of its registered capital based on the enterprise’s PRC statutory financial statements. A domestic enterprise is also required to provide discretionary surplus fund, at the discretion of the board of directors, from the net profits reported in the enterprise’s PRC statutory financial statements. The aforementioned reserve funds can only be used for specific purposes and are not distributable as cash dividends.

As a result of these PRC laws and regulations that require annual appropriations of 10% of net after-tax profits to be set aside prior to payment of dividends as general reserve fund or statutory surplus fund, the Group’s PRC subsidiaries, consolidated VIEs and VIEs’ subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company.

Amounts restricted include paid-in capital and statutory reserve funds, less accumulate deficit if as determined pursuant to PRC GAAP, totaling approximately RMB11,417,468 and RMB 9,492,844 as of December 31, 2021 and 2022, respectively; therefore in accordance with Rules 4-08 (e) (3) of Regulation S-X, the condensed parent company only financial statements as of December 31, 2021 and 2022 and for the years ended December 31, 2020, 2021 and 2022 are disclosed in Note 30.

Parent Company Only Condensed Financial Information

12 Months Ended

Dec. 31, 2022

Parent Company Only Condensed Financial Information

Parent Company Only Condensed Financial Information

30. Parent Company Only Condensed Financial Information

The Company performed a test on the restricted net assets of its consolidated subsidiaries and VIEs in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), General Notes to Financial Statements and concluded that it was applicable for the Company to disclose the financial information for the Company only.

The subsidiaries did not pay any dividend to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with US GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements are not the general-purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Company.

The Company did not have significant capital and other commitments, or guarantees as of December 31, 2021 and 2022.

30. Parent Company Only Condensed Financial Information (Continued)

Condensed balance sheets


	As of December 31,
	2021	2022
	RMB	RMB

ASSETS
Current assets:
Cash and cash equivalents	14,762,875	974,224
Time deposits and short-term investments	7,020,662	2,195,952
Amounts due from subsidiaries of the Group	23,763,053	47,993,884
Prepayments and other current assets	10,211	3,132
Total current assets	45,556,801	51,167,192
Non-current assets:
Investments in subsidiaries, VIEs and VIEs' subsidiaries	890,788	—
Long-term investments	28,452	12,968
Property, plant and equipment, net	—	18
Total non-current assets	919,240	12,986
Total assets	46,476,041	51,180,178
LIABILITIES
Current liabilities:
Short-term borrowings	—	6,965
Accruals and other current liabilities	13,798	59,533
Total current liabilities	13,798	66,498
Non-current liabilities:
Long-term borrowings	5,397,941	6,254,979
Total non-current liabilities	5,397,941	6,254,979
Total liabilities	5,411,739	6,321,477
SHAREHOLDERS’ EQUITY
Class A Ordinary Shares	1,176	1,188
Class B Ordinary Shares	235	235
Treasury shares	(89)	(84)
Additional paid-in capital	49,390,486	53,869,322
Accumulated other comprehensive loss	(1,521,871)	(194,110)
Accumulated deficit	(6,805,635)	(8,817,850)
Total shareholders' equity	41,064,302	44,858,701
Total liabilities and shareholders' equity	46,476,041	51,180,178

30. Parent Company Only Condensed Financial Information (Continued)

Condensed statements of comprehensive loss


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB

Operating expenses:
Selling, general and administrative	(9,424)	(27,288)	(35,642)
Research and development	—	(852)	(629)
Total operating expenses	(9,424)	(28,140)	(36,271)
Loss from operations	(9,424)	(28,140)	(36,271)
Other income/(expense)
Interest expense	—	(21,369)	(43,096)
Interest income and investment income, net	111,290	283,737	190,528
Equity in loss of subsidiaries, VIEs and VIEs’ subsidiaries	(520,093)	(563,106)	(2,300,538)
Change in fair value of warrants and derivative liabilities	272,327	—	—
Others, net	(5,757)	7,423	177,165
Loss before income tax expense	(151,657)	(321,455)	(2,012,212)
Income tax expense	—	—	(3)
Net loss	(151,657)	(321,455)	(2,012,215)
Accretion on convertible redeemable preferred shares to redemption value	(651,190)	—	—
Effect of exchange rate changes on convertible redeemable preferred shares	10,862	—	—
Net loss attributable to ordinary shareholders of Li Auto Inc.	(791,985)	(321,455)	(2,012,215)
Net loss	(151,657)	(321,455)	(2,012,215)
Other comprehensive income/(loss), net of tax
Foreign currency translation adjustment, net of tax	(1,020,728)	(516,687)	1,327,761
Total comprehensive loss, net of tax	(1,172,385)	(838,142)	(684,454)

30. Parent Company Only Condensed Financial Information (Continued)

Condensed statements of cash flows


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB

CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by operating activities	109,961	367,063	450,517
CASH FLOWS FROM INVESTING ACTIVITIES
Payments to, and investments in subsidiaries, VIEs and VIEs' subsidiaries	(10,006,889)	(10,157,678)	(23,397,234)
Placement of time deposits	—	(298,284)	—
Redemption of time deposits	463,527	297,654	—
Placement of short-term investments	(75,367,086)	(173,133,568)	(2,609,767)
Redemption of short-term investments	60,452,428	180,386,757	8,036,663
Purchase of property, plant and equipment and intangible assets	—	—	(25)
Net cash used in investing activities	(24,458,020)	(2,905,119)	(17,970,363)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings and long-term borrowings	—	—	669,913
Repayment of long-term borrowings	—	—	(349,163)
Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs	3,851,034	—	—
Proceeds from issuance of convertible debts	—	5,533,238	—
Proceeds from IPOs and concurrent private placements, net of issuance cost	11,034,685	11,004,778	—
Proceeds from follow-on offering, net of issuance costs	9,990,955	—	—
Proceeds from exercise of share options	—	1,139	6,728
Proceeds from issuance of ordinary shares	—	70	2,462,300
Net cash provided by financing activities	24,876,674	16,539,225	2,789,778
Effects of exchange rate changes on cash and cash equivalents	(20,248)	(387,668)	941,417
Net increase in cash, cash equivalents	508,367	13,613,501	(13,788,651)
Cash, cash equivalents at beginning of the year	641,007	1,149,374	14,762,875
Cash, cash equivalents at end of the year	1,149,374	14,762,875	974,224

Basis of presentation

The Company’s accounting policies are the same as the Group’s accounting policies with the exception of the accounting for the investments in subsidiaries and VIEs.

For the Company only condensed financial information, the Company records its investments in subsidiaries and VIEs under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures.

Such investments are presented on the condensed balance sheets as “investments in subsidiaries, VIEs and VIEs’ subsidiaries” and shares in the subsidiaries and VIEs’ loss are presented as “equity in loss of subsidiaries, VIEs and VIEs’ subsidiaries” in the condensed statements of comprehensive loss. The parent company only condensed financial information should be read in conjunction with the Group’ consolidated financial statements.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Summary of Significant Accounting Policies

Basis of presentation

(a)Basis of presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

Significant accounting policies followed by the Group in the preparation of its accompanying consolidated financial statements are summarized below.

Principles of consolidation

(b)Principles of consolidation

All significant transactions and balances between the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation.

Use of estimates

(c)Use of estimates

Functional currency and foreign currency translation

(d)Functional currency and foreign currency translation

Convenience translation

(e)Convenience translation

Cash, cash equivalents and restricted cash

(f)Cash, cash equivalents and restricted cash

2. Summary of Significant Accounting Policies (Continued)

Cash, cash equivalents and restricted cash as reported in the consolidated statements of cash flows are presented separately on our consolidated balance sheets as follows:


	As of December 31,
	2021	2022
Cash and cash equivalents	27,854,224	38,478,016
Restricted cash	2,638,840	1,940,142
Total cash, cash equivalents and restricted cash	30,493,064	40,418,158

Time deposits and short-term investments

(g)Time deposits and short-term investments

Trade receivables and current expected credit losses

(h)Trade receivables and current expected credit losses


	For the Years Ended December 31,
	2021	2022
Balance as of the beginning of the year	1,955	6,416
Provisions	6,415	24,163
Reversals	(1,954)	(21,253)
Balance as of the end of the year	6,416	9,326

Derivative instruments

(i)Derivative instruments

Inventories

(j)Inventories

Property, plant and equipment, net

(k)Property, plant and equipment, net

The estimated useful lives are as follows:


		Useful Lives
Buildings		20 years
Buildings improvements		5 to 10 years
Production machineries and facilities		3 to 10 years
Equipment		3 to 5 years
Motor vehicles		2 to 4 years
Mold and tooling		Unit-of-production
Leasehold improvements		Shorter of the estimated useful life or lease term

Intangible assets, net

(l)Intangible assets, net


		Useful Lives
Software and Patents		5 to 10 years

Goodwill

(m)Goodwill

Impairment of long lived assets and intangible assets

(n)Impairment of long-lived assets and intangible assets

Long-term investments

(o)Long-term investments

Long-term investments are comprised of investments in publicly traded companies and privately-held companies, as well as long-term time deposits and long-term financial instruments.

Equity Investments with Readily Determinable Fair Values

Equity Investments without Readily Determinable Fair Values

Equity investments accounted for using the equity method

Long-term time deposits

Long-term time deposits are those balances placed with the banks with original maturities longer than one year.

Long-term financial instruments

Employee benefits

(p)Employee benefits

Product warranties

(q)Product warranties

2. Summary of Significant Accounting Policies (Continued)

The accrued warranty activity consists of the following:


	For the Years Ended December 31,
	2021	2022
Accrued warranty at beginning of the year	233,366	842,345
Warranty cost incurred	(22,558)	(48,963)
Provision for warranty	631,537	800,930
Accrued warranty at end of the year	842,345	1,594,312
Including: Accrued warranty, current	154,276	141,832
Accrued warranty, non-current	688,069	1,452,480

Revenue recognition

(r)Revenue recognition

The Group adopted ASC 606, Revenue from Contracts with Customers, on January 1, 2018 by applying the full retrospective method.

●

provides all of the benefits received and consumed simultaneously by the customer;

●

creates and enhances an asset that the customer controls as the Group performs; or

●

does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date.

Vehicle sales

Sales of Li Plus Membership

Customer loyalty points

Beginning in January 2020, the Group offers customer loyalty points, which can be used in the Group’s online store to redeem the

Sales of Automotive Regulatory Credits

Practical expedients and exemptions

Cost of sales

(s)Cost of sales

Vehicle sales

Other sales and services

Research and development expenses

(t)Research and development expenses

Sales and marketing expenses

(u)Sales and marketing expenses

General and administrative expenses

(v)General and administrative expenses

Government grants

(w)Government grants

Fair value

(x)Fair value

Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2—Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities.

Level 3—Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Share-based compensation

(y)Share-based compensation

The Company grants share options and RSUs to eligible employees, directors and consultants and accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation.

Taxation

(z)Taxation

Discontinued operations

(aa)Discontinued operations

Leases

(ab)Leases

An option for the seller-lessee to repurchase the asset would preclude accounting for the transfer of the asset as a sale of the asset unless both of the following criteria are met:

The exercise price of the option is the fair value of the asset at the time the option is exercised.

There are alternative assets, substantially the same as the transferred asset, readily available in the marketplace.

Loss per share

(ac)Loss per share

Comprehensive loss

(ad)Comprehensive loss

Segment reporting

(ae)Segment reporting

Organization and Nature of Operations (Tables)

12 Months Ended

Dec. 31, 2022

Variable Interest Entity [Line Items]

Schedule of Company's principal subsidiaries, consolidated VIEs and VIEs' subsidiaries



	Equity Interest Held		Date of Incorporation or Date of Acquisition	Place of Incorporation	Principal Activities	Notes
Subsidiaries
Leading Ideal HK Limited (“Leading Ideal HK”)	100	%	May 15, 2017	Hong Kong, China	Investment holding
Beijing Co Wheels Technology Co., Ltd. (“Wheels Technology”)	100	%	December 19, 2017	Beijing, PRC	Technology development and corporate management
Beijing Leading Automobile Sales Co., Ltd.(“Beijing Leading”)	100	%	August 6, 2019	Beijing, PRC	Sales and after sales management
Jiangsu Xindian Interactive Sales and Services Co., Ltd. (“Jiangsu XD”)	100	%	May 8, 2017	Changzhou, PRC	Sales and after sales management	(i)
Chongqing Lixiang Automobile Co., Ltd. (“Chongqing Lixiang Automobile”)	100	%	October 11, 2019	Chongqing, PRC	Manufacturing of automobile and purchase of manufacturing equipment	(ii)
			Date of Incorporation	Place of Incorporation	Principal Activities	Notes
The VIEs
Beijing CHJ Information Technology Co., Ltd. (“Beijing CHJ”)			April 10, 2015	Beijing, PRC	Technology development
Beijing Xindian Transport Information Technology Co., Ltd. (“Xindian Information”)			March 27, 2017	Beijing, PRC	Technology development

Notes:

(i)

Jiangsu XD was Beijing CHJ’s subsidiary before the 2021 Reorganization.

(ii)

VIEs and VIEs' subsidiaries

Variable Interest Entity [Line Items]

Schedule of consolidated financial information of the Group's VIEs and VIEs' subsidiaries


	As of December 31,
	2021	2022
	RMB	RMB
Current assets:
Cash and cash equivalents	5,311,800	18,529,655
Restricted cash	2,415,941	977,346
Time deposits and short-term investments	8,326,541	8,344,332
Trade receivable	103,056	—
Amounts due from the Group companies⁽¹⁾	23,402,104	37,885,882
Inventories	1,396,992	254
Prepayments and other current assets	220,402	168,160
Total current assets	41,176,836	65,905,629
Non‑current assets:
Long‑term investments	97,854	142,539
Property, plant and equipment, net⁽²⁾	2,329,507	101,577
Operating lease right‑of‑use assets, net	731,874	693,111
Intangible assets, net	703,274	740,570
Other non‑current assets	1,107,674	583,967
Total non-current assets	4,970,183	2,261,764
Total assets	46,147,019	68,167,393
Current liabilities:
Short‑term borrowings	31,547	—
Trade and notes payable⁽²⁾	8,547,181	1,323,196
Amounts due to the Group companies⁽¹⁾	31,999,140	60,539,514
Amounts due to related parties	1,277	23
Operating lease liabilities, current	80,606	40,707
Accruals and other current liabilities	515,036	334,333
Total current liabilities	41,174,787	62,237,773
Non‑current liabilities:
Long-term borrowings	479,453	500,000
Deferred revenue, non‑current	8,704	—
Operating lease liabilities, non‑current	719,628	738,673
Deferred tax liabilities, non-current	153,723	2,979
Other non‑current liabilities	14,333	7,720
Total non-current liabilities	1,375,841	1,249,372
Total liabilities	42,550,628	63,487,145
Total shareholders’ equity	3,596,391	4,680,248
Total liabilities and shareholders’ equity	46,147,019	68,167,393


	For the Year Ended December 31,
	2020	2021	2022

Third-party revenues⁽³⁾	8,001,067	6,294,675	—
Inter-company revenues⁽⁴⁾	8,553,798	22,287,788	7,211,082

Third-party cost	(7,790,586)	(20,171,861)	(4,534,351)
Inter-company cost⁽⁴⁾	(7,877,944)	(5,891,611)	(8,290)

Third-party expenses	(1,358,507)	(2,401,187)	(1,638,834)
Inter-company expenses	(25,858)	(65,750)	(302)

Share of loss from subsidiaries	(1,179)	(13)	—
Other income / (expense)	40,309	2,610,121	(358,394)
(Loss)/Income before income tax expense	(458,900)	2,662,162	670,911
Income tax (expense) / benefit	(36,309)	(117,413)	8,701
Net (loss)/income from continuing operations	(495,209)	2,544,749	679,612
Net income from discontinued operations	14,373	—	—
Net (loss)/income	(480,836)	2,544,749	679,612
Less: Net loss attributable to noncontrolling interests	(5,075)	—	—
Net (loss)/income attributable to ordinary shareholders of Li Auto Inc.	(475,761)	2,544,749	679,612


	For the Year Ended December 31,
	2020	2021	2022
Net cash provided by inter-company transactions⁽⁵⁾	2,194,342	7,341,282	2,834,408
Net cash provided by/(used in) other transactions	1,346,069	(8,693,141)	(10,922,189)
Net cash provided by/(used in) operating activities	3,540,411	(1,351,859)	(8,087,781)

Other investing activities with external entities	(1,665,982)	(8,641,045)	(2,149,494)
Net cash used in investing activities	(1,665,982)	(8,641,045)	(2,149,494)

Inter-company loan financing from Group companies	795,295	14,858,966	20,417,626
Other financing activities with external entities	(144,700)	81,308	1,598,877
Net cash provided by financing activities	650,595	14,940,274	22,016,503
Effects of exchange rate changes on cash, cash equivalents and restricted cash	(188)	—	32
Net increase in cash, cash equivalents and restricted cash	2,524,836	4,947,370	11,779,260
Cash, cash equivalents and restricted cash at beginning of the year	255,535	2,780,371	7,727,741
Cash, cash equivalents and restricted cash at end of the year	2,780,371	7,727,741	19,507,001

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Summary of Significant Accounting Policies

Schedule of cash, cash equivalents and restricted cash


	As of December 31,
	2021	2022
Cash and cash equivalents	27,854,224	38,478,016
Restricted cash	2,638,840	1,940,142
Total cash, cash equivalents and restricted cash	30,493,064	40,418,158

Schedule of accounts notes loans and financing receivable


	For the Years Ended December 31,
	2021	2022
Balance as of the beginning of the year	1,955	6,416
Provisions	6,415	24,163
Reversals	(1,954)	(21,253)
Balance as of the end of the year	6,416	9,326

Schedule of estimated useful lives of property, plant and equipment


		Useful Lives
Buildings		20 years
Buildings improvements		5 to 10 years
Production machineries and facilities		3 to 10 years
Equipment		3 to 5 years
Motor vehicles		2 to 4 years
Mold and tooling		Unit-of-production
Leasehold improvements		Shorter of the estimated useful life or lease term

Schedule of estimated useful lives of intangible assets


		Useful Lives
Software and Patents		5 to 10 years

Schedule of accrued warranty activity


	For the Years Ended December 31,
	2021	2022
Accrued warranty at beginning of the year	233,366	842,345
Warranty cost incurred	(22,558)	(48,963)
Provision for warranty	631,537	800,930
Accrued warranty at end of the year	842,345	1,594,312
Including: Accrued warranty, current	154,276	141,832
Accrued warranty, non-current	688,069	1,452,480

Trade receivables (Tables)

12 Months Ended

Dec. 31, 2022

Trade receivable

Schedule of aging analysis of trade receivable


	As of December 31,
	2021	2022
Within 3 months	16,462	35,065
Between 3 months and 6 months	890	41
Between 6 months and 1 year	—	1
More than 1 year	103,189	13,274
Total	120,541	48,381

Inventories (Tables)

12 Months Ended

Dec. 31, 2022

Inventories

Summary of inventories


	As of December 31,
	2021	2022
Finished products	149,089	3,477,457
Raw materials, work in process and supplies	1,468,801	3,327,236
Total	1,617,890	6,804,693

Property, Plant and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment, Net.

Summary of property, plant and equipment and related accumulated depreciation


	As of December 31,
	2021	2022
Production machineries and facilities⁽ⁱ⁾	804,281	3,226,785
Construction in process ⁽ⁱⁱ⁾	1,942,953	2,748,697
Mold and tooling	1,098,392	2,721,990
Buildings	409,123	2,046,472
Leasehold improvements	660,902	1,070,995
Equipment	266,745	626,502
Motor vehicles	59,702	615,231
Buildings improvements	297,163	314,987
Total	5,539,261	13,371,659
Less: Accumulated depreciation⁽ⁱⁱⁱ⁾	(983,222)	(2,156,225)
Less: Accumulated impairment loss ^(iv)	(57,770)	(27,536)
Total property, plant and equipment, net	4,498,269	11,187,898

The Group recorded depreciation expense of RMB312,011, RMB579,097 and RMB1,194,781 for the years ended December 31, 2020, 2021 and 2022, respectively.

(i)

(ii)

8. Property, Plant and Equipment, Net (Continued)

(iii)

(iv)

Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2022

Intangible Assets, Net

Summary of intangible assets and related accumulated amortization


	As of December 31,
	2021	2022
Automotive Manufacturing Permission (Note 5)	647,174	647,174
Insurance Agent License	—	35,000
Indefinite‑lived intangible assets, net	647,174	682,174
Software	137,576	202,848
Patents	694	694
Definite‑lived intangible assets	138,270	203,542
Less: Accumulated amortization
Software	(33,290)	(52,402)
Patents	(694)	(694)
Accumulated amortization	(33,984)	(53,096)
Definite‑lived intangible assets, net	104,286	150,446
Total intangible assets, net	751,460	832,620

Summary of amortization expenses related to intangible assets for future periods


		As of December 31,
2023		21,310
2024		18,558
2025		16,500
2026		15,674
2027 and thereafter		78,404
Total		150,446

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases

Schedule of components of lease expenses


	For the Year Ended December 31,
	2020	2021	2022
Lease cost
Finance lease cost:
Amortization of assets	15,346	12,122	—
Interest of lease liabilities	21,851	19,322	—
Operating lease cost	176,788	367,375	698,280
Short‑term lease cost	4,937	15,559	54,683
Total	218,922	414,378	752,963

Supplemental cash flows information related to leases


	For the Year Ended December 31,
	2020	2021	2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows payments for operating leases	126,418	346,757	610,490
Right-of-use assets obtained in exchange for lease liabilities:
Right-of-use assets obtained in exchange for new operating lease liabilities	896,804	1,120,392	2,071,200

Supplemental balance sheet information related to operating leases


	As of December 31,
	2021	2022
Operating Leases
Land use rights, net	289,810	1,010,640
Operating lease right-of-use assets, net (excluding land use rights)	1,771,682	2,528,271
Total operating lease assets	2,061,492	3,538,911
Operating lease liabilities, current	473,245	696,454
Operating lease liabilities, non-current	1,369,825	1,946,367
Total operating lease liabilities	1,843,070	2,642,821

Schedule of weighted-average remaining lease term and discount rate


	As of December 31,
	2021		2022
Weighted-average remaining lease term
Land use rights	47 years		49 years
Operating leases	8 years		7 years
Weighted-average discount rate
Land use rights	—		—
Operating leases	5.8	%	5.8	%

Schedule of maturities of operating lease liabilities


		As of December 31, 2022
		Operating leases
2023		824,247
2024		584,377
2025		377,332
2026		263,142
2027		195,680
Thereafter		965,491
Total undiscounted lease payments		3,210,269
Less: imputed interest		(567,448)
Total lease liabilities		2,642,821

Other Non-current Assets (Tables)

12 Months Ended

Dec. 31, 2022

Other Non-current Assets

Schedule of other non-current assets


	As of December 31,
	2021	2022
Long-term deposits paid to vendors	653,030	1,319,816
Prepayments for purchase of property, plant and equipment ⁽ⁱ⁾	1,051,415	641,748
Deductible VAT input, non-current	263,390	454,359
Others	16,998	9,942
Less: Allowance for credit losses	(3,757)	(4,572)
Total	1,981,076	2,421,293

(i)

Long term Investments (Tables)

12 Months Ended

Dec. 31, 2022

Long-term Investments.

Schedule of long-term investments


	As of December 31,
	2021	2022
Equity investments:
Equity Securities Without Readily Determinable Fair Values	93,150	558,004
Equity investments accounted for using the equity method	34,704	155,053
Equity Security With Readily Determinable Fair Values	28,452	12,966
Long-term held-to-maturity investments:
Long-term time deposits	—	707,853
Long-term financial instruments	—	50,615
Total Long-term Investments	156,306	1,484,491

Schedule of carrying amount and fair value of equity securities with readily determinable fair values


			Foreign Currency
Cango Inc.	Cost Basis	Unrealized Loss	Translation	Fair Value
As of December 31, 2021	100,303	(73,535)	1,684	28,452
As of December 31, 2022	100,303	(91,063)	3,726	12,966

Short-term Borrowings and Long-term Borrowings (Tables)

12 Months Ended

Dec. 31, 2022

Short-term Borrowings and Long-term Borrowings

Schedule of short-term and long-term borrowings

Borrowings consist of the following:

Interest Rate

As of December 31,

Maturity Date

Classification

Principal Amount

Per Annum

2021

2022

Convertible debt⁽¹⁾

May 1, 2028

Non-current

US$

862,500

0.25

5,397,941

5,913,715

Secured borrowing⁽²⁾

February 15, 2027

Current and Non-current

RMB

900,000

5-year LPR - 0.40

—

900,000

Secured borrowing⁽³⁾

June 21, 2034

Non-current

RMB

625,383

5-year LPR - 0.80

—

625,383

Secured borrowing⁽⁴⁾

September 28, 2029

Current and Non-current

RMB

600,000

5-year LPR - 0.31

600,000

Credit guaranteed borrowing⁽⁵⁾

June 29, 2024

Current and Non-current

US$

50,000

SOFR

—

348,230

Credit guaranteed borrowing⁽⁶⁾

July 26, 2025

Current and Non-current

RMB

300,000

1-year LPR

—

300,000

Unsecured borrowing⁽⁷⁾

March 8, 2024

Non-current

RMB

260,000

1-year LPR - 0.70

—

260,000

Unsecured borrowing⁽⁸⁾

June 15, 2024

Non-current

RMB

240,000

1-year LPR - 0.70

—

240,000

Secured borrowing⁽⁹⁾

March 25, 2025

Current and Non-current

RMB

224,329

5-year LPR - 0.60

—

224,329

Credit guaranteed borrowing⁽¹⁰⁾

December 26, 2025

Non-current

RMB

209,900

1-year LPR - 0.90

—

209,900

Total borrowings

5,997,941

9,621,557

The total borrowings are classified as short-term borrowings and long-term borrowings:


	As of December 31,
	2021	2022
Short-term borrowings:
Current portion of secured borrowing	37,042	283,785
Current portion of credit guaranteed borrowing	—	106,965
Total short-term borrowings	37,042	390,750

13. Short-term Borrowings and Long-term Borrowings (Continued)


	As of December 31,
	2021	2022
Long-term borrowings:
Convertible debt	5,397,941	5,913,715
Non-current portion of secured borrowing	562,958	1,440,544
Secured borrowing	—	625,383
Non-current portion of credit guaranteed borrowing	—	541,265
Unsecured borrowing	—	500,000
Credit guaranteed borrowing	—	209,900
Total long-term borrowings	5,960,899	9,230,807
Total borrowings	5,997,941	9,621,557

(1)

13. Short-term Borrowings and Long-term Borrowings (Continued)

The Company assessed the convertible debt under ASC 815 and concluded that:

(i)

(ii)

The repurchase option is considered clearly and closely related to its debt host and does not meet the requirement for bifurcation.

(2)

(3)

13. Short term Borrowings and Long-term Borrowings (Continued)

(4)

(5)

(6)

(7)

(8)

(9)

13. Short-term Borrowings and Long-term Borrowings (Continued)

(10)

Trade and Notes Payable (Tables)

12 Months Ended

Dec. 31, 2022

Trade and Notes Payable

Schedule of trade and notes payable


	As of December 31,
	2021	2022
Trade payable for raw materials	7,089,370	15,410,150
Notes payable	2,286,680	4,614,179
Total	9,376,050	20,024,329

Schedule of maturity of trade and notes payable


	As of December 31,
	2021	2022
Within 3 months	7,539,833	19,806,395
Between 3 months and 6 months	1,639,286	124,122
Between 6 months and 1 year	161,913	31,051
More than 1 year	35,018	62,761
Total	9,376,050	20,024,329

Accruals and Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Accruals and Other Current Liabilities

Schedule of accruals and other current liabilities


	As of December 31,
	2021	2022
Payables for purchase of property, plant and equipment	456,395	2,335,084
Salaries and benefits payable	417,449	633,215
Payables for research and development expenses	94,517	525,667
Accrued costs of purchase commitments relating to inventory	—	498,060
Tax payable	277,233	445,853
Payables for logistics expenses	143,632	414,353
Payables for marketing and promotional expenses	96,945	150,706
Accrued warranty	154,276	141,832
Deposits from vendors	27,716	32,013
Advances from customers	10,262	10,500
Other payables	200,943	497,361
Total	1,879,368	5,684,644

Revenue Disaggregation (Tables)

12 Months Ended

Dec. 31, 2022

Revenue Disaggregation

Schedule of revenue disaggregation


	For the Years Ended December 31
	2020	2021	2022
Vehicle sales	9,282,703	26,128,469	44,106,434
Other sales and services	173,906	881,310	1,180,382
Total	9,456,609	27,009,779	45,286,816

Schedule of revenue by timing of recognition


	For the Years Ended December 31,
	2020	2021	2022
Revenue recognized at a point in time	9,436,095	26,917,836	45,150,485
Including: Vehicle sales	9,282,703	26,128,469	44,106,434
Other sales and services	153,392	789,367	1,044,051
Revenue recognized over time	20,514	91,943	136,331
Total	9,456,609	27,009,779	45,286,816

Deferred Revenue (Tables)

12 Months Ended

Dec. 31, 2022

Deferred Revenue

Schedule of rollforward of deferred revenue


	For the Years Ended December 31,
	2020	2021	2022
Deferred revenue—at beginning of the year	62,638	407,168	694,745
Additions	9,687,382	27,377,563	45,614,278
Recognition	(9,342,852)	(27,089,986)	(45,158,191)
Deferred revenue—at end of the year	407,168	694,745	1,150,832
Including: Deferred revenue, current	271,510	305,092	569,234
Deferred revenue, non‑current	135,658	389,653	581,598

Research and Development Expenses (Tables)

12 Months Ended

Dec. 31, 2022

Research and Development Expenses.

Schedule of research and development expenses


	For the Years Ended December 31,
	2020	2021	2022
Employee compensation	580,157	2,079,948	3,801,960
Design and development expenses	431,996	1,003,567	2,566,567
Rental and related expenses	18,818	52,985	99,324
Depreciation and amortization expenses	44,977	54,110	94,134
Travel expenses	9,360	52,307	76,714
Others	14,549	43,472	141,333
Total	1,099,857	3,286,389	6,780,032

Selling, General and Administrative Expenses (Tables)

12 Months Ended

Dec. 31, 2022

Selling, General and Administrative Expenses.

Schedule of selling, general and administrative expenses


	For the Years Ended December 31,
	2020	2021	2022
Employee compensation	449,109	1,414,177	2,873,397
Marketing and promotional expenses	264,814	1,100,769	1,010,227
Rental and related expenses	162,907	324,655	645,792
Depreciation and amortization expenses	37,923	82,777	228,790
Travel expenses	20,806	69,079	99,246
Expected credit losses	—	6,415	2,910
Others	183,260	494,513	804,939
Total	1,118,819	3,492,385	5,665,301

Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2022

Discontinued Operations

Schedule of results of operations and cash flows of the discontinued operations and gain on disposal of discontinued operations


		For the Year Ended December 31,
		2020
Revenues		870
Cost of sales		(2,437)
Gross loss		(1,567)
Operating expenses		(1,423)
Loss from operations of discontinued operations		(2,990)
Loss from discontinued operations before income tax expense		(2,990)
Net loss from discontinued operations, net of tax		(2,990)


		For the Year Ended December 31,
		2020
Net cash provided by discontinued operating activities		148
Net cash provided by discontinued investing activities		59,705

The following table presents the gain on disposal of discontinued operations related to the disposal of SEV battery packs business for the year ended December 31, 2020:


		For the Year Ended
		December 31, 2020
Cash consideration received for sale of SEV battery packs business		60,000
Carrying value of net assets transferred		(42,637)
Gain on disposal of discontinued operations		17,363

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

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-Name Accounting Standards Codification
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI https://asc.fasb.org/extlink&oid=109222650&loc=d3e1361-107760

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721663-107760

+ Details

Convertible Redeemable Preferred Shares and Warrants (Tables)

12 Months Ended

Dec. 31, 2022

Convertible Redeemable Preferred Shares and Warrants

Schedule of the issuances of convertible redeemable preferred shares


Series	Issuance Date	Shares Issued	Issue Price per Share	Proceeds from Issuance
			RMB	RMB
Pre-A⁽¹⁾	July 21, 2017	50,000,000	RMB2.00	100,000
A-1	July 4, 2016	129,409,092	RMB6.03	780,000
A-2	July 21, 2017	126,771,562	RMB7.89	1,000,000
A-3	September 5, 2017	65,498,640	RMB9.47	620,000
B-1	November 28, 2017	115,209,526	RMB13.11	1,510,000
B-2	June 6, 2018	55,804,773	RMB14.16	790,000
B-3⁽²⁾	January 7/July 2, 2019	119,950,686	RMB14.16	1,701,283
C⁽³⁾	July 2/December 2,2019/January 23, 2020	267,198,535	US$2.23/ US$1.89	3,626,924
D	July 1, 2020	231,758,541	US$2.64/ US$2.35	3,851,034

(1)

Upon the issuance of Series A-2 Preferred Shares, Series Pre-A Ordinary Shares were re-designated to Series Pre-A Preferred Shares (see Note 21).

(2)

22. Convertible Redeemable Preferred Shares and Warrants (Continued)

(3)

On January 23, 2020, 18,916,548 shares of Series C Preferred Shares were issued upon the exercise of the Series B-3 Anti-Dilution Warrant.

Schedule of movement of the warrants and conversion feature derivative liabilities


	Warrants	Derivative
	Liabilities	Liabilities	Total
Balance at January 1, 2020	351,750	1,296,940	1,648,690
Issuance	—	328,461	328,461
Fair value change	(46,812)	(225,515)	(272,327)
Exercise	(305,333)	(1,400,670)	(1,706,003)
Translation to reporting currency	395	784	1,179
Balance at December 31, 2020	—	—	—

Schedule of convertible redeemable preferred shares activities


	Series Pre‑A		Series A‑1		Series A‑2		Series A‑3		Series B‑1		Series B‑2		Series B‑3		Series C		Series D		Total
	Number	Amount	Number	Amount	Number	Amount	Number	Amount	Number	Amount	Number	Amount	Number	Amount	Number	Amount	Number	Amount	Number	Amount
	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)	of shares	(RMB)
Balances as of January 1, 2020	50,000,000	434,886	129,409,092	980,949	126,771,562	1,074,959	65,498,640	619,770	115,209,526	1,347,607	55,804,773	710,303	119,950,686	1,551,080	248,281,987	3,536,108	—	—	910,926,266	10,255,662
Exercise of Series B-3 Anti-Dilution Warrant	—	—	—	—	—	—	—	—	—	—	—	—	—	—	18,916,548	305,333	—	—	18,916,548	305,333
Bifurcation of conversion feature	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	(81,082)	—	—	—	(81,082)
Issuance of preferred shares-Series D	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	231,758,541	3,603,655	231,758,541	3,603,655
Accretion on convertible redeemable preferred shares to redemption value	—	—	—	34,229	—	63,363	—	46,738	—	136,567	—	64,859	—	80,635	—	178,007	—	46,792	—	651,190
Effect of exchange rate changes on preferred shares	—	(858)	—	(1,746)	—	(1,770)	—	(964)	—	(1,899)	—	(1,040)	—	(2,613)	—	28	—	—	—	(10,862)
Conversion of preferred shares to ordinary shares	(50,000,000)	(434,028)	(129,409,092)	(1,013,432)	(126,771,562)	(1,136,552)	(65,498,640)	(665,544)	(115,209,526)	(1,482,275)	(55,804,773)	(774,122)	(119,950,686)	(1,629,102)	(267,198,535)	(3,938,394)	(231,758,541)	(3,650,447)	(1,161,601,355)	(14,723,896)
Balances as of December 31, 2020	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2022

Loss Per Share

Schedule of basic and diluted loss per share


	For the Years Ended December 31,
	2020	2021	2022
Numerator:
Net loss	(151,657)	(321,455)	(2,032,348)
Accretion on convertible redeemable preferred shares to redemption value	(651,190)	—	—
Effect of exchange rate changes on convertible redeemable preferred shares	10,862	—	—
Less: Net loss attributable to noncontrolling interests	—	—	(20,133)
Net loss attributable to ordinary shareholders of Li Auto Inc.	(791,985)	(321,455)	(2,012,215)
Including: Net loss from continuing operations attributable to ordinary shareholders of Li Auto Inc.	(806,358)	(321,455)	(2,012,215)
Net income from discontinued operations attributable to ordinary shareholders of Li Auto Inc.	14,373	—	—

Denominator:
Weighted average ordinary shares outstanding—basic and diluted	870,003,278	1,853,320,448	1,941,230,998

Basic and diluted net loss per share from continuing operations attributable to ordinary shareholders of Li Auto Inc.	(0.93)	(0.17)	(1.04)
Basic and diluted net income per share from discontinued operations attributable to ordinary shareholders of Li Auto Inc.	0.02	—	—
Basic and diluted net loss per share attributable to ordinary shareholders of Li Auto Inc.	(0.91)	(0.17)	(1.04)

Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-based Compensation Arrangement by Share-based Payment Award

Schedule of compensation expenses recognized for share-based awards


	For the Year Ended December 31,
	2020	2021	2022
Research and development expenses	60,789	741,793	1,333,710
Selling, general and administrative expenses	80,491	332,850	674,610
Cost of sales	1,515	26,713	44,845
Total	142,795	1,101,356	2,053,165

2019 and 2020 Share Incentive Plan

Share-based Compensation Arrangement by Share-based Payment Award

Schedule of stock option activities


			Weighted
	Number of	Weighted	Average	Aggregate
	Options	Average	Remaining	Intrinsic
	and Shares	Exercise Price	Contractual Life	Value
		US$	In Years	US$
Outstanding as of December 31, 2019	54,760,000	0.10	6.73	73,926
Granted	4,224,000	0.10
Forfeited	(2,070,000)	0.10
Outstanding as of December 31, 2020	56,914,000	0.10	5.95	814,724
Granted	36,987,700	0.10
Exercised	(6,404,416)	0.10
Forfeited	(4,106,000)	0.10
Outstanding as of December 31, 2021	83,391,284	0.10	6.70	1,330,091
Granted	579,600	0.10
Exercised	(5,801,840)	0.10
Forfeited	(3,832,800)	0.10
Outstanding as of December 31, 2022	74,336,244	0.10	5.56	750,796

Vested and expected to vest as of December 31, 2021	79,915,157	0.10	6.60	1,274,647
Exercisable as of December 31, 2021	40,251,584	0.10	4.55	642,013
Vested and expected to vest as of December 31, 2022	71,370,113	0.10	5.46	720,838
Exercisable as of December 31, 2022	46,292,444	0.10	4.06	467,554

Schedule of options fair value assumptions


	For the Year Ended December 31,	For the Year Ended December 31,	For the Year Ended December 31,
	2020	2021	2022
Exercise price (US$)	0.10	0.10	0.10
Fair value of the ordinary shares on the date of option grant (US$)	1.35-1.90	14.42-17.35	16.05
Risk‑free interest rate	0.69%-1.92%	0.93%-1.48%	1.51%
Expected term (in years)	10.00	10.00	10.00
Expected dividend yield	0%	0%	0%
Expected volatility	45%-46%	47%-48%	48%

Schedule of RSU activity


		Weighted Average	Weighted Average
	Number of	Grant Date	Remaining
	Shares	Fair Value	Contractual Life
		US$
Unvested as of December 31, 2020	—	—	—
Granted	8,586	17.25
Unvested as of December 31, 2021	8,586	17.25	9.50
Granted	36,199,400	17.13
Vested	(127,062)	18.76
Forfeited	(5,087,800)	16.74
Unvested as of December 31, 2022	30,993,124	17.20	9.21

2021 Share Incentive Plan

Share-based Compensation Arrangement by Share-based Payment Award

Schedule of stock option activities


	Number of	Weighted	Weighted Average
	Shares	Average Exercise	Remaining
	Granted	Price	Contractual Life
		US$	In Years
December 31, 2020	—	—	—
Granted	108,557,400	14.63	—
December 31, 2021	108,557,400	14.63	9.19
Granted	—	—
December 31, 2022	108,557,400	14.63	8.19

Schedule of options fair value assumptions


	For the Year Ended December 31,
	2021
Exercise price (US$)	14.63
Fair value of the ordinary shares on the date of restricted shares grant (US$)	10.67
Risk-free interest rate	1.59	%
Expected term (in years)	10.00
Expected dividend yield	0	%
Expected volatility	47	%

Taxation (Tables)

12 Months Ended

Dec. 31, 2022

Taxation

Schedule of composition of income tax benefit


	For the Years Ended December 31,
	2020	2021	2022
Current income tax expense	—	—	1,331
Deferred income tax expense/(benefit)	(22,847)	168,643	(128,338)
Income tax (benefit)/expense	(22,847)	168,643	(127,007)

Schedule of reconciliations of the income tax expenses


	For the Years Ended December 31,
	2020	2021	2022
Loss before income tax expense	(188,877)	(152,812)	(2,159,355)
Income tax credit computed at PRC statutory income tax rate of 25%	(47,219)	(38,203)	(539,839)
Tax effect of tax‑exempt entity and preferential tax rate	30,140	(89,928)	(321,507)
Tax effect of R&D Deduction and others	(144,503)	(314,141)	(648,317)
Non‑deductible expenses	21,511	318,185	566,597
Change in valuation allowance	117,224	292,730	816,059
Income tax (benefit)/expense	(22,847)	168,643	(127,007)

Schedule of components of the group's deferred tax assets (liabilities)


	For the Years Ended December 31,
	2020	2021	2022
Deferred tax assets
Net operating loss carryforwards	1,144,397	1,119,659	1,522,412
Accrued expenses and others	66,773	228,734	416,517
Inventory write-downs and losses on inventory purchase commitments	—	—	219,518
Impairment of long-lived assets and allowance for credit losses	7,694	13,224	15,093
Acquisition of Changzhou Manufacturing Base Phase I and Phase II (Note 10) and Changzhou Huixiang (Note 5)	—	11,969	13,782
Depreciation and amortization	16,220	190	—
Unrealized financing cost and investment loss	13,125	—	900
Total deferred tax assets	1,248,209	1,373,776	2,188,222
Less: Valuation allowance	(1,004,665)	(1,297,395)	(2,113,455)
Deferred tax assets, net of valuation allowance	243,544	76,381	74,767
Deferred tax liabilities
Accelerated tax depreciation and others	(215,030)	(195,121)	(68,652)
Fair value change of certain investments	(5,667)	(15,087)	(9,157)
Total deferred tax liabilities	(220,697)	(210,208)	(77,809)
Deferred tax assets/(liabilities), net	22,847	(133,827)	(3,042)

Schedule of movement of valuation allowance


	For the Years Ended December 31,
	2020	2021	2022
Valuation allowance
Balance at beginning of the year	887,441	1,004,665	1,297,395
Additions	148,458	395,955	1,147,602
Reversals	(31,234)	(103,225)	(331,542)
Balance at ending of the year	1,004,665	1,297,395	2,113,455

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Measurement

Schedule of major financial instruments measured at fair value, by level within the fair value hierarchy


		Fair Value Measurement at Reporting Date Using
		Quoted Prices
	Fair Value as of	in Active Markets for	Significant Other	Significant
	December 31,	Identical Assets	Observable Inputs	Unobservable Inputs
	2021	(Level 1)	(Level 2)	(Level 3)
Assets
Short-term investments	19,157,428	—	19,157,428	—
Equity securities with readily determinable fair value	28,452	28,452	—	—
Total assets	19,185,880	28,452	19,157,428	—


		Fair Value Measurement at Reporting Date Using
		Quoted Prices
	Fair Value as of	in Active Markets for	Significant Other	Significant
	December 31,	Identical Assets	Observable Inputs	Unobservable Inputs
	2022	(Level 1)	(Level 2)	(Level 3)
Assets
Short-term investments	18,026,310	—	18,026,310	—
Long-term financial instruments	50,615	—	50,615	—
Equity securities with readily determinable fair value	12,966	12,966	—	—
Total assets	18,089,891	12,966	18,076,925	—

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies

Schedule of capital commitments


	Total	Less than One Year	1‑3 Years	3‑5 Years	Over 5 Years
Capital commitments	4,281,420	3,807,656	473,764	—	—

Schedule of purchase obligations


	Total	Less than One Year	1‑3 Years	3‑5 Years	Over 5 Years
Purchase obligations	10,238,626	10,238,626	—	—	—

Related Party Balances and Transactions (Tables)

12 Months Ended

Dec. 31, 2022

The principal related parties with which the Group had transactions during the years presented are as follows:


Name of Entity or Individual		Relationship with the Company
Beijing Yihang Intelligent Technology Co., Ltd. (“Beijing Yihang”)		Affiliate
Neolix Technologies Co., Ltd. (“Neolix Technologies”)		Affiliate
Airx (Beijing) Technology Co., Ltd. (“Airx”)		Affiliate
Beijing Judianchuxing Technology Limited (“Beijing Judianchuxing”)		Affiliate
Suzhou Yihang Intelligent Technology Co., Ltd. (“Suzhou Yihang”)		Affiliate
Changzhou Huixiang New Energy Auto Parts Co., Ltd. (“Changzhou Huixiang”)		Affiliate before October 2022 (which became a subsidiary since then (Note 5))
Beijing Sankuai Online Technology Co., Ltd. (“Beijing Sankuai ”)		Controlled by Principal Shareholder
Hanhai Information Technology (Shanghai) Co., Ltd. (“Hanhai”)		Controlled by Principal Shareholder

The Group entered into the following related party transactions:


	For the Year Ended December 31,
	2020	2021	2022
Purchase service from Beijing Sankuai	—	969	5,521
Purchase services from Hanhai	—	—	1,190
Purchase materials from Changzhou Huixiang	—	—	811
Purchase R&D service from Beijing Yihang	4,368	12,176	281
Purchase materials from Beijing Yihang	58,361	31,692	73
Purchase R&D service from Suzhou Yihang	—	3,772	—

The Group had the following related party balances:


	As of December 31,
	2021	2022
Due from Neolix Technologies	678	678
Due from Beijing Yihang	334	—
Total	1,012	678


	As of December 31,
	2021	2022
Due to Beijing Yihang	7,102	5,921
Due to Beijing Sankuai	330	1,185
Due to Hanhai	—	61
Due to Airx	23	23
Due to Changzhou Huixiang	30,000	—
Total	37,455	7,190

Parent Company Only Condensed Financial Information (Tables)

12 Months Ended

Dec. 31, 2022

Parent Company Only Condensed Financial Information

Condensed balance sheets of parent company


	As of December 31,
	2021	2022
	RMB	RMB

ASSETS
Current assets:
Cash and cash equivalents	14,762,875	974,224
Time deposits and short-term investments	7,020,662	2,195,952
Amounts due from subsidiaries of the Group	23,763,053	47,993,884
Prepayments and other current assets	10,211	3,132
Total current assets	45,556,801	51,167,192
Non-current assets:
Investments in subsidiaries, VIEs and VIEs' subsidiaries	890,788	—
Long-term investments	28,452	12,968
Property, plant and equipment, net	—	18
Total non-current assets	919,240	12,986
Total assets	46,476,041	51,180,178
LIABILITIES
Current liabilities:
Short-term borrowings	—	6,965
Accruals and other current liabilities	13,798	59,533
Total current liabilities	13,798	66,498
Non-current liabilities:
Long-term borrowings	5,397,941	6,254,979
Total non-current liabilities	5,397,941	6,254,979
Total liabilities	5,411,739	6,321,477
SHAREHOLDERS’ EQUITY
Class A Ordinary Shares	1,176	1,188
Class B Ordinary Shares	235	235
Treasury shares	(89)	(84)
Additional paid-in capital	49,390,486	53,869,322
Accumulated other comprehensive loss	(1,521,871)	(194,110)
Accumulated deficit	(6,805,635)	(8,817,850)
Total shareholders' equity	41,064,302	44,858,701
Total liabilities and shareholders' equity	46,476,041	51,180,178

Condensed statements of comprehensive loss of parent company


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB

Operating expenses:
Selling, general and administrative	(9,424)	(27,288)	(35,642)
Research and development	—	(852)	(629)
Total operating expenses	(9,424)	(28,140)	(36,271)
Loss from operations	(9,424)	(28,140)	(36,271)
Other income/(expense)
Interest expense	—	(21,369)	(43,096)
Interest income and investment income, net	111,290	283,737	190,528
Equity in loss of subsidiaries, VIEs and VIEs’ subsidiaries	(520,093)	(563,106)	(2,300,538)
Change in fair value of warrants and derivative liabilities	272,327	—	—
Others, net	(5,757)	7,423	177,165
Loss before income tax expense	(151,657)	(321,455)	(2,012,212)
Income tax expense	—	—	(3)
Net loss	(151,657)	(321,455)	(2,012,215)
Accretion on convertible redeemable preferred shares to redemption value	(651,190)	—	—
Effect of exchange rate changes on convertible redeemable preferred shares	10,862	—	—
Net loss attributable to ordinary shareholders of Li Auto Inc.	(791,985)	(321,455)	(2,012,215)
Net loss	(151,657)	(321,455)	(2,012,215)
Other comprehensive income/(loss), net of tax
Foreign currency translation adjustment, net of tax	(1,020,728)	(516,687)	1,327,761
Total comprehensive loss, net of tax	(1,172,385)	(838,142)	(684,454)

Condensed statements of cash flows of parent company


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB

CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by operating activities	109,961	367,063	450,517
CASH FLOWS FROM INVESTING ACTIVITIES
Payments to, and investments in subsidiaries, VIEs and VIEs' subsidiaries	(10,006,889)	(10,157,678)	(23,397,234)
Placement of time deposits	—	(298,284)	—
Redemption of time deposits	463,527	297,654	—
Placement of short-term investments	(75,367,086)	(173,133,568)	(2,609,767)
Redemption of short-term investments	60,452,428	180,386,757	8,036,663
Purchase of property, plant and equipment and intangible assets	—	—	(25)
Net cash used in investing activities	(24,458,020)	(2,905,119)	(17,970,363)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings and long-term borrowings	—	—	669,913
Repayment of long-term borrowings	—	—	(349,163)
Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs	3,851,034	—	—
Proceeds from issuance of convertible debts	—	5,533,238	—
Proceeds from IPOs and concurrent private placements, net of issuance cost	11,034,685	11,004,778	—
Proceeds from follow-on offering, net of issuance costs	9,990,955	—	—
Proceeds from exercise of share options	—	1,139	6,728
Proceeds from issuance of ordinary shares	—	70	2,462,300
Net cash provided by financing activities	24,876,674	16,539,225	2,789,778
Effects of exchange rate changes on cash and cash equivalents	(20,248)	(387,668)	941,417
Net increase in cash, cash equivalents	508,367	13,613,501	(13,788,651)
Cash, cash equivalents at beginning of the year	641,007	1,149,374	14,762,875
Cash, cash equivalents at end of the year	1,149,374	14,762,875	974,224

Organization and Nature of Operations - Reorganization (Details)	1 Months Ended
	Apr. 30, 2022	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Leading Ideal HK
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries
Entity interest held in subsidiaries (as percent)			100.00%
Leading Ideal HK \| Chongqing Lixiang Automobile
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries
Entity interest held in subsidiaries (as percent)				50.00%
Wheels Technology
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries
Entity interest held in subsidiaries (as percent)			100.00%
Beijing Leading
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries
Entity interest held in subsidiaries (as percent)			100.00%
Jiangsu XD
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries
Entity interest held in subsidiaries (as percent)			100.00%
Leading Ideal Automobile Sales & Services (Shanghai) Co., Ltd
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries
Economic interest held in VIEs and VIEs' subsidiaries (as percent)	80.00%	80.00%
Beijing CHJ \| Leading Ideal HK
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries
Ownership percent				50.00%
Chongqing Lixiang Automobile
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries
Entity interest held in subsidiaries (as percent)			100.00%
Chongqing Lixiang Automobile \| Leading Ideal HK
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries
Ownership percent				50.00%

Organization and Nature of Operations - Variable interest entity (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Variable interest entity
Percent of equity interests in a value added telecommunication service provider	50.00%
Beijing CHJ
Variable interest entity
Power of attorney period (in years)	10 years
Beijing CHJ \| Spouses of shareholders
Variable interest entity
Number of shareholders' spousal consent letters	9
Ownership percent	100.00%
Xindian Information \| Spouses of shareholders
Variable interest entity
Number of shareholders' spousal consent letters	9
Ownership percent	98.10%
Leading Ideal Hk Limited [Member] \| Beijing CHJ
Variable interest entity
Ownership percent		50.00%
Leading Ideal Hk Limited [Member] \| Chongqing Lixiang Automobile
Variable interest entity
Ownership percent		50.00%
Wheels Technology
Variable interest entity
Power of attorney period (in years)	10 years
Wheels Technology \| Beijing CHJ \| Exclusive Consultation and Service Agreements
Variable interest entity
Annual service fee	100.00%
Service fee payment period (in days)	10 days
Service fee payment period with which after end of relevant calendar quarter (in days)	30 days
Contract term (in years)	10 years
Wheels Technology \| Beijing CHJ \| Equity Option Agreements
Variable interest entity
Contract term (in years)	10 years
Wheels Technology \| Beijing CHJ \| Equity Pledge Agreements
Variable interest entity
Equity interests agreed to pledge (as a percent)	100.00%

Organization and Nature of Operations - Balance sheet (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Feb. 28, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 38,478,016	$ 5,578,788		¥ 27,854,224
Restricted cash	1,940,142	281,294		2,638,840
Time deposits and short-term investments	18,031,395	2,614,307		19,668,239
Trade receivable, net of allowance for credit losses of RMB467, and RMB327 as of December 31, 2021 and 2022, respectively	48,381	7,015		120,541
Inventories	6,804,693	986,588		1,617,890
Prepayments and other current assets	1,689,860	245,007		480,680
Total current assets	66,992,487	9,712,999		52,380,414
Non-current assets:
Long-term investments	1,484,491	215,231		156,306
Property, plant and equipment, net	11,187,898	1,622,093		4,498,269
Operating lease right-of-use assets, net	3,538,911	513,094		2,061,492
Intangible assets, net	832,620	120,719		751,460
Other noncurrent assets, net of allowance for credit losses of RMB3,757, and RMB4,572 as of December 31, 2021 and 2022, respectively	2,421,293	351,054		1,981,076
Total non-current assets	19,545,464	2,833,826		9,468,499
Total assets	86,537,951	12,546,825		61,848,913
Current liabilities:
Short-term borrowings	390,750	56,653		37,042
Trade and notes payable	20,024,329	2,903,255		9,376,050
Amounts due to related parties	7,190	1,042		37,455
Operating lease liabilities, current	696,454	100,976		473,245
Deferred revenue, current	569,234	82,531		305,092	¥ 271,510
Accruals and other current liabilities	5,684,644	824,198		1,879,368
Total current liabilities	27,372,601	3,968,655		12,108,252
Noncurrent liabilities:
Long-term borrowings	9,230,807	1,338,341	¥ 790,000	5,960,899
Deferred revenue, noncurrent	581,598	84,324		389,653	¥ 135,658
Operating lease liabilities, noncurrent	1,946,367	282,197		1,369,825
Deferred tax liabilities, non-current	77,809	11,281		153,723
Other noncurrent liabilities	2,142,462	310,628		802,259
Total noncurrent liabilities	13,979,043	2,026,771		8,676,359
Total liabilities	41,351,644	5,995,426		20,784,611
Total shareholders' equity	44,858,701	6,503,901		41,064,302
Total liabilities and shareholders' equity	86,537,951	$ 12,546,825		61,848,913
VIEs and VIEs' subsidiaries
Current assets:
Cash and cash equivalents	18,529,655			5,311,800
Restricted cash	977,346			2,415,941
Time deposits and short-term investments	8,344,332			8,326,541
Trade receivable, net of allowance for credit losses of RMB467, and RMB327 as of December 31, 2021 and 2022, respectively				103,056
Amounts due from the Group companies	37,885,882			23,402,104
Inventories	254			1,396,992
Prepayments and other current assets	168,160			220,402
Total current assets	65,905,629			41,176,836
Non-current assets:
Long-term investments	142,539			97,854
Property, plant and equipment, net	101,577			2,329,507
Operating lease right-of-use assets, net	693,111			731,874
Intangible assets, net	740,570			703,274
Other noncurrent assets, net of allowance for credit losses of RMB3,757, and RMB4,572 as of December 31, 2021 and 2022, respectively	583,967			1,107,674
Total non-current assets	2,261,764			4,970,183
Total assets	68,167,393			46,147,019
Current liabilities:
Short-term borrowings				31,547
Trade and notes payable	1,323,196			8,547,181
Amounts due to the Group companies	60,539,514			31,999,140
Amounts due to related parties	23			1,277
Operating lease liabilities, current	40,707			80,606
Accruals and other current liabilities	334,333			515,036
Total current liabilities	62,237,773			41,174,787
Noncurrent liabilities:
Long-term borrowings	500,000			479,453
Deferred revenue, noncurrent				8,704
Operating lease liabilities, noncurrent	738,673			719,628
Deferred tax liabilities, non-current	2,979			153,723
Other noncurrent liabilities	7,720			14,333
Total noncurrent liabilities	1,249,372			1,375,841
Total liabilities	63,487,145			42,550,628
Total shareholders' equity	4,680,248			3,596,391
Total liabilities and shareholders' equity	¥ 68,167,393			¥ 46,147,019

Organization and Nature of Operations - Net (loss)/income (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Variable interest entity
Revenues	¥ 45,286,816	$ 6,565,971	¥ 27,009,779	¥ 9,456,609
Cost	(36,496,360)	(5,291,474)	(21,248,325)	(7,907,270)
Expenses	(12,445,333)	(1,804,403)	(6,778,774)	(2,218,676)
Other income / (expense)	625,633	90,708	187,320	20,133
Loss before income tax expense	(2,159,355)	(313,076)	(152,812)	(188,877)
Income tax benefit/(expense)	127,007	18,414	(168,643)	22,847
Net loss from continuing operations	(2,032,348)	(294,662)	(321,455)	(166,030)
Net income from discontinued operations				14,373
Net loss	(2,032,348)	(294,662)	(321,455)	(151,657)
Less: Net loss attributable to noncontrolling interests	20,133	2,919
Net loss attributable to ordinary shareholders of Li Auto Inc.	(2,012,215)	$ (291,743)	(321,455)	(791,985)
VIEs and VIEs' subsidiaries
Variable interest entity
Share of loss from subsidiaries			(13)	(1,179)
Other income / (expense)	(358,394)		2,610,121	40,309
Loss before income tax expense	670,911		2,662,162	(458,900)
Income tax benefit/(expense)	8,701		(117,413)	(36,309)
Net loss from continuing operations	679,612		2,544,749	(495,209)
Net income from discontinued operations				14,373
Net loss	679,612		2,544,749	(480,836)
Less: Net loss attributable to noncontrolling interests				(5,075)
Net loss attributable to ordinary shareholders of Li Auto Inc.	679,612		2,544,749	(475,761)
VIEs and VIEs' subsidiaries - Third-party
Variable interest entity
Revenues			6,294,675	8,001,067
Cost	(4,534,351)		(20,171,861)	(7,790,586)
Expenses	(1,638,834)		(2,401,187)	(1,358,507)
VIEs and VIEs' subsidiaries - Inter-company
Variable interest entity
Revenues	7,211,082		22,287,788	8,553,798
Cost	(8,290)		(5,891,611)	(7,877,944)
Expenses	¥ (302)		¥ (65,750)	¥ (25,858)

Organization and Nature of Operations - Cash, cash equivalents and restricted cash (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Variable interest entity
Net cash provided by/(used in) operating activities	¥ 7,380,266	$ 1,070,038	¥ 8,340,385	¥ 3,139,804
Net cash used in investing activities	(4,364,661)	(632,816)	(4,257,244)	(18,737,725)
Net cash provided by financing activities	5,639,392	817,635	16,709,533	24,710,697
Effects of exchange rate changes on cash and cash equivalents and restricted cash	1,270,097	184,146	(472,129)	(376,646)
Net increase in cash, cash equivalents and restricted cash	9,925,094	1,439,003	20,320,545	8,736,130
Cash, cash equivalents and restricted cash at beginning of the year	30,493,064	4,421,079	10,172,519	1,436,389
Cash, cash equivalents and restricted cash at end of the year	40,418,158	$ 5,860,082	30,493,064	10,172,519
VIEs and VIEs' subsidiaries
Variable interest entity
Net cash provided by/(used in) operating activities	(8,087,781)		(1,351,859)	3,540,411
Net cash used in investing activities	(2,149,494)		(8,641,045)	(1,665,982)
Net cash provided by financing activities	22,016,503		14,940,274	650,595
Effects of exchange rate changes on cash and cash equivalents and restricted cash	32			(188)
Net increase in cash, cash equivalents and restricted cash	11,779,260		4,947,370	2,524,836
Cash, cash equivalents and restricted cash at beginning of the year	7,727,741		2,780,371	255,535
Cash, cash equivalents and restricted cash at end of the year	19,507,001		7,727,741	2,780,371
VIEs and VIEs' subsidiaries - Inter-company
Variable interest entity
Net cash provided by/(used in) operating activities	2,834,408		7,341,282	2,194,342
Net cash provided by financing activities	20,417,626		14,858,966	795,295
VIEs and VIEs' subsidiaries - Other
Variable interest entity
Net cash provided by/(used in) operating activities	(10,922,189)		(8,693,141)	1,346,069
Net cash used in investing activities	(2,149,494)		(8,641,045)	(1,665,982)
Net cash provided by financing activities	¥ 1,598,877		¥ 81,308	¥ (144,700)

Organization and Nature of Operations - Additional information (Details) ¥ in Thousands, $ in Thousands	1 Months Ended		12 Months Ended
	Apr. 30, 2022	Mar. 31, 2022	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)
Variable interest entity
Accumulated deficit			¥ (8,817,850)		¥ (6,805,635)		$ (1,278,468)
Management fees paid			0		0	¥ 0
Shanghai
Variable interest entity
Economic interest held in VIEs and VIEs' subsidiaries (as percent)	80.00%	80.00%
VIEs and VIEs' subsidiaries
Variable interest entity
Registered capitals and PRC statutory reserves			5,230,100		7,103,472
VIEs and VIEs' subsidiaries \| Wheels Technology
Variable interest entity
Management fees paid			0	$ 0	0	¥ 0
VIEs and VIEs' subsidiaries \| PRC
Variable interest entity
Accumulated deficit			¥ 549,853		¥ 1,229,463

Summary of Significant Accounting Policies (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) $ / ¥	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($) $ / ¥
Summary of Significant Accounting Policies
Total foreign currency translation adjustment income/(loss)	¥ 1,327,761	¥ (516,687)	¥ (1,020,728)
Foreign currency exchange rate, translation \| $ / ¥	6.8972			6.8972
Cash held in online payments platform	¥ 68,824	33,540
Cash and cash equivalents	38,478,016	27,854,224		$ 5,578,788
Restricted cash	1,940,142	2,638,840		$ 281,294
Total cash, cash equivalents and restricted cash	¥ 40,418,158	¥ 30,493,064

Summary of Significant Accounting Policies - Trade receivables and current expected credit losses (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2020 CNY (¥)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses	¥ 2,910	$ 422	¥ 6,415
Accumulated deficit	(8,817,850)		(6,805,635)	$ (1,278,468)
Credit loss provision recorded in current assets	4,754		2,659
Credit loss provision recorded in non-current assets	4,572		3,757
Allowance for credit losses.
Beginning balance	6,416		1,955
Provisions	24,163		6,415
Reversals	(21,253)		(1,954)
Ending balance	9,326		6,416
Trade receivables
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses	¥ 0		¥ 0
ASU 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated deficit					¥ 1,955
ASU 2016-13 \| Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Credit loss provision recorded in current assets					972
Credit loss provision recorded in non-current assets					¥ 983

Summary of Significant Accounting Policies - Derivative instruments and Inventories (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary of Significant Accounting Policies
Fair value gain of derivative instruments	¥ 0	¥ 73,824
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration]	Investment Income, Net	Investment Income, Net
Inventory write-downs and losses on inventory purchase commitments	¥ 1,112,015	¥ 51,256	¥ 0

Summary of Significant Accounting Policies - Property, plant and equipment, net (Details) - CNY (¥) ¥ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Intangible asset, useful lives	3 years	10 years
Depreciation			¥ 1,194,781	¥ 579,097	¥ 312,011
Estimated useful lives
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	3 years	10 years
Estimated useful lives \| Adjustment
Property, Plant and Equipment [Line Items]
Depreciation			¥ 357,500
Buildings
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)			20 years
Minimum \| Buildings improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)			5 years
Minimum \| Production machineries and facilities
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)			3 years
Minimum \| Equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)			3 years
Minimum \| Vehicle sales
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)			2 years
Maximum \| Buildings improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)			10 years
Maximum \| Production machineries and facilities
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)			10 years
Maximum \| Equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)			5 years
Maximum \| Vehicle sales
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)			4 years

Summary of Significant Accounting Policies - Intangible assets, net, Impairment of long lived assets and intangible assets with indefinite lives and Employee benefits (Details) - CNY (¥) ¥ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible asset, useful lives	3 years	10 years
Impairment of long-lived assets			¥ 0	¥ 27,388	¥ 30,381
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income Extensible Enumeration not Disclosed Flag			true	true	true
Employee benefits
Employee benefit expenses			¥ 1,092,499	¥ 482,536	¥ 133,162
Software and Patents \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset, useful lives			5 years
Software and Patents \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset, useful lives			10 years

Summary of Significant Accounting Policies - Product warranties (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Summary of Significant Accounting Policies
Accrued warranty at beginning of the year	¥ 842,345	¥ 233,366
Warranty cost incurred	(48,963)	(22,558)
Provision for warranty	800,930	631,537
Accrued warranty at end of the year	¥ 1,594,312	¥ 842,345

Summary of Significant Accounting Policies - Product warranties, current and non-current and Revenue recognition, government grants (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)
Summary of Significant Accounting Policies
Accrued warranty	¥ 1,594,312		¥ 842,345	¥ 233,366
Including: Accrued warranty, current	141,832		154,276
Accrued warranty, non-current	1,452,480		688,069
Revenues	¥ 45,286,816	$ 6,565,971	27,009,779	¥ 9,456,609
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false]	true	true
Other noncurrent liabilities	¥ 2,142,462		802,259		$ 310,628
Government subsidies
Summary of Significant Accounting Policies
Other noncurrent liabilities	431,735		¥ 0
Automotive Regulatory Credits
Summary of Significant Accounting Policies
Revenues	¥ 0

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Summary of Significant Accounting Policies - Leases and Segment reporting (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Jan. 01, 2018 CNY (¥)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets, net	¥ 3,538,911	$ 513,094	¥ 2,061,492
Operating lease liabilities, current	696,454	100,976	473,245
Operating lease liabilities, noncurrent	¥ 1,946,367	$ 282,197	¥ 1,369,825
Operating lease term (in years)	50 years	50 years
Number of reportable segments \| segment	1
Minimum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Terms of operating and finance leases (in years)	1 year
Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Terms of operating and finance leases (in years)	20 years
Land use rights
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease term (in years)	50 years	50 years
ASU 2016-02 \| Cumulative Effect, Period of Adoption, Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets, net				¥ 158,770
Operating lease liabilities, current				14,575
Operating lease liabilities, noncurrent				¥ 142,751

Summary of Significant Accounting Policies - Additional information (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary of Significant Accounting Policies
Impairment loss of goodwill	¥ 0
Impairment of equity method investments	¥ 0	¥ 0	¥ 0

Concentration and Risks (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
Concentration and Risks (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Concentration and Risks
Cash and cash equivalents, restricted cash and time deposits and short term investments subject to such government controls.	¥ 55,065,266	¥ 24,509,656
Percentage of appreciation of domestic currency (RMB) against foreign currency(US$)		2.30%	6.50%
Percentage of depreciation of peoples domestic currency (RMB) against foreign currency(US$)	8.20%

Acquisition of Chongqing Zhizao and Changzhou Huixiang (Details) ¥ in Thousands			12 Months Ended
	Dec. 29, 2018 CNY (¥)	Dec. 28, 2018 subsidiary	Dec. 31, 2021 CNY (¥)
Chongqing Zhizao [Member]
Business acquisition
Equity interest (as a percent)		100.00%
Total consideration	¥ 650,000
Total consideration in cash paid			¥ 648,000
Settled with outstanding loan receivable			¥ 8,000
Lifan Industry
Business acquisition
Number of wholly owned subsidiaries with whom acquisition agreement is entered into \| subsidiary		2

Acquisition of Chongqing Zhizao and Changzhou Huixiang - Disposal agreement (Details) - CNY (¥)	Dec. 26, 2019	Mar. 31, 2022	Dec. 19, 2019
Discontinued Operations
Cash consideration		¥ 400,000,000
Chongqing Zhizao [Member] \| Disposal by sale
Discontinued Operations
Equity interest disposed	100.00%		100.00%
Cash consideration			¥ 1.000
Disposal loss	¥ 4,503,000

Acquisition of Chongqing Zhizao and Changzhou Huixiang - Acquisition of Changzhou Huixiang (Details) ¥ in Thousands	1 Months Ended
	Sep. 30, 2022 CNY (¥) item	Jan. 31, 2022 CNY (¥)	Jul. 31, 2021 CNY (¥)
Changzhou Huixiang New Energy Auto Parts Co., Ltd
Business acquisition
Amount contributed	¥ 87,040		¥ 73,500
Interest acquired (in percent)	87.34%		49.00%
Amount of capital injected		¥ 30,000
Number of seats in Board of Directors attained \| item	4
Number of seats in Board of Directors \| item	5
Changzhou Huixiang New Energy Auto Parts Co., Ltd \| Suzhou Huichuan United Power System Co., Ltd
Business acquisition
Amount contributed	¥ 0
Number of seats in Board of Directors attained \| item	1
Changzhou Huixiang New Energy Auto Parts Co., Ltd
Business acquisition
Registered capital			¥ 150,000

Trade receivables (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
Trade receivables (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Accounts, Notes, Loans and Financing Receivable
Total	¥ 48,381	$ 7,015	¥ 120,541
Government subsidies received on behalf of customers for purchases of new energy vehicles	89,840
Within 3 months
Accounts, Notes, Loans and Financing Receivable
Total	35,065		16,462
Between 3 months and 6 months
Accounts, Notes, Loans and Financing Receivable
Total	41		890
Between 6 months and 1 year
Accounts, Notes, Loans and Financing Receivable
Total	1
More than 1 year
Accounts, Notes, Loans and Financing Receivable
Total	¥ 13,274		¥ 103,189

Inventories (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
Inventories (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)
Inventories
Finished products	¥ 3,477,457	¥ 149,089
Raw materials, work in process and supplies	3,327,236	1,468,801
Total	6,804,693	1,617,890		$ 986,588
Inventory write-downs	592,545	0	¥ 0
Production Related Impairments or Charges	¥ 519,470	¥ 51,256

Property, Plant and Equipment, Net (Details) ¥ in Thousands, $ in Thousands		3 Months Ended	9 Months Ended	12 Months Ended
	Aug. 27, 2021 item	Dec. 31, 2022 CNY (¥)	Sep. 30, 2022	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 CNY (¥)
Property, plant and equipment
Total property, plant and equipment, gross		¥ 13,371,659		¥ 13,371,659	¥ 5,539,261
Less: Accumulated depreciation		(2,156,225)		(2,156,225)	(983,222)
Less: Accumulated impairment loss		(27,536)		(27,536)	(57,770)
Total property, plant and equipment, net		11,187,898		11,187,898	4,498,269		$ 1,622,093
Depreciation expenses				1,194,781	579,097	¥ 312,011
Impairment recognized for property, plant and equipment				0	27,388	¥ 30,381
Other noncurrent assets		¥ 2,421,293		2,421,293	1,981,076		$ 351,054
Estimated useful lives
Property, plant and equipment
Estimated useful lives (in years)		3 years	10 years
Estimated useful lives \| Adjustment
Property, plant and equipment
Depreciation expenses				357,500
Investment agreement [Member] \| Sichuan Li Xinchen Technology Co., Ltd
Property, plant and equipment
Number of board members right to nominate \| item	3
Total number of board members \| item	5
Capital contribution of long-lived assets								¥ 228,668
Investment agreement [Member] \| Sichuan Li Xinchen Technology Co., Ltd \| Beijing CHJ
Property, plant and equipment
Noncontrolling equity interest	51.00%
Investment agreement [Member] \| Bejing CHJ \| Beijing CHJ
Property, plant and equipment
Noncontrolling equity interest								51.00%
Beijing Manufacturing Base Agreements
Property, plant and equipment
Construction in process		¥ 469,317		469,317
Other noncurrent assets		214,092		214,092
Production machineries and facilities
Property, plant and equipment
Total property, plant and equipment, gross		3,226,785		¥ 3,226,785	804,281
Production machineries and facilities \| Minimum
Property, plant and equipment
Estimated useful lives (in years)				3 years
Production machineries and facilities \| Maximum
Property, plant and equipment
Estimated useful lives (in years)				10 years
Construction in process
Property, plant and equipment
Total property, plant and equipment, gross		2,748,697		¥ 2,748,697	1,942,953
Mold and tooling
Property, plant and equipment
Total property, plant and equipment, gross		2,721,990		2,721,990	1,098,392
Buildings
Property, plant and equipment
Total property, plant and equipment, gross		2,046,472		¥ 2,046,472	409,123
Estimated useful lives (in years)				20 years
Leasehold improvements
Property, plant and equipment
Total property, plant and equipment, gross		1,070,995		¥ 1,070,995	660,902
Equipment
Property, plant and equipment
Total property, plant and equipment, gross		626,502		¥ 626,502	266,745
Equipment \| Minimum
Property, plant and equipment
Estimated useful lives (in years)				3 years
Equipment \| Maximum
Property, plant and equipment
Estimated useful lives (in years)				5 years
Vehicle sales
Property, plant and equipment
Total property, plant and equipment, gross		615,231		¥ 615,231	59,702
Vehicle sales \| Minimum
Property, plant and equipment
Estimated useful lives (in years)				2 years
Vehicle sales \| Maximum
Property, plant and equipment
Estimated useful lives (in years)				4 years
Buildings improvements
Property, plant and equipment
Total property, plant and equipment, gross		¥ 314,987		¥ 314,987	¥ 297,163
Buildings improvements \| Minimum
Property, plant and equipment
Estimated useful lives (in years)				5 years
Buildings improvements \| Maximum
Property, plant and equipment
Estimated useful lives (in years)				10 years

Intangible Assets, Net (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]
Indefinite-lived intangible assets, net	¥ 682,174	¥ 647,174
Definite-lived intangible assets	203,542	138,270
Accumulated amortization	(53,096)	(33,984)
Definite-lived intangible assets, net	150,446	104,286
Total intangible assets, net	832,620	751,460		$ 120,719
Amortization expenses	19,074	11,300	¥ 8,985
Software
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]
Definite-lived intangible assets	202,848	137,576
Accumulated amortization	(52,402)	(33,290)
Patents
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]
Definite-lived intangible assets	694	694
Accumulated amortization	(694)	(694)
Automotive Manufacturing Permission
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]
Indefinite-lived intangible assets, net	647,174	¥ 647,174
Insurance Agent License [Member]
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]
Indefinite-lived intangible assets, net	¥ 35,000

Intangible Assets, Net - Amortization expenses (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Intangible assets, net
2023	¥ 21,310
2024	18,558
2025	16,500
2026	15,674
2027 and Thereafter	78,404
Definite-lived intangible assets, net	¥ 150,446	¥ 104,286

Leases - Components of lease expenses (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Lease cost
Amortization of assets		¥ 12,122	¥ 15,346
Interest of lease liabilities		19,322	21,851
Operating lease cost	¥ 698,280	367,375	176,788
Short-term lease cost	54,683	15,559	4,937
Total	¥ 752,963	¥ 414,378	¥ 218,922

Leases - Supplemental cash flows information (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows payment for operating leases	¥ 610,490	¥ 346,757	¥ 126,418
Right-of-use assets obtained in exchange for lease liabilities:
Right-of-use assets obtained in exchange for new operating lease liabilities	¥ 2,071,200	¥ 1,120,392	¥ 896,804

Leases - Supplemental balance sheet information - Operating lease (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Leases
Land use rights, net	¥ 1,010,640		¥ 289,810
Operating lease right-of-use assets, net (excluding land use rights)	2,528,271		1,771,682
Total operating lease assets	3,538,911	$ 513,094	2,061,492
Operating lease liabilities, current	696,454	100,976	473,245
Operating lease liabilities, noncurrent	1,946,367	$ 282,197	1,369,825
Total lease liabilities	¥ 2,642,821		¥ 1,843,070

Leases - Weighted-average remaining lease term and discount rate (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Weighted-average remaining lease term
Land use rights	49 years	47 years
Operating leases	7 years	8 years
Weighted-average discount rate
Operating leases	5.80%	5.80%

Leases - Maturities of lease liabilities (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Operating leases
2023	¥ 824,247
2024	584,377
2025	377,332
2026	263,142
2027	195,680
Thereafter	965,491
Total undiscounted lease payments	3,210,269
Less: imputed interest	(567,448)
Total lease liabilities	¥ 2,642,821	¥ 1,843,070

Leases - Additional information (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Nov. 30, 2021
Lessee Lease
Total consideration of land use rights	¥ 766,662
Operating lease term (in years)	50 years
Amortization of land use rights	¥ 12,807
Jiangsu CHJ \| Changzhou Chehejin [Member]
Lessee Lease
Equity interest (as a percent)		100.00%
Total consideration in cash paid	537,009
Total consideration	567,118
Changzhou Chehejin [Member]
Lessee Lease
Business combination recognized identifiable assets acquired and liabilities assumed property plant and equipment	¥ 47,876

Other Non-current Assets (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Other Non-current Assets
Long-term deposits paid to vendors	¥ 1,319,816		¥ 653,030
Prepayments for purchase of property, plant and equipment	641,748		1,051,415
Deductible VAT input, non-current	454,359		263,390
Others	9,942		16,998
Less: Allowance for credit losses	(4,572)		(3,757)
Total	¥ 2,421,293	$ 351,054	¥ 1,981,076

Long term Investments (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Equity investments:
Total Long-term Investments	¥ 1,484,491	¥ 156,306
Equity investments accounted for using the equity method
Equity investments:
Total Long-term Investments	155,053	34,704
Equity Security With Readily Determinable Fair Values
Equity investments:
Total Long-term Investments	12,966	28,452
Equity Securities Without Readily Determinable Fair Values
Equity investments:
Total Long-term Investments	558,004	¥ 93,150
Long-term time deposits
Equity investments:
Total Long-term Investments	707,853
Long-term financial instruments
Equity investments:
Total Long-term Investments	¥ 50,615

Long-term Investments- Equity Method Investments (Details) - CNY (¥) ¥ in Thousands	1 Months Ended		12 Months Ended
	Sep. 30, 2022	Jul. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Equity investments:
Impairment of equity method investments			¥ 0	¥ 0	¥ 0
Changzhou Huixiang New Energy Auto Parts Co., Ltd [Member]
Equity investments:
Equity interest (as a percent)	87.34%	49.00%
Total consideration	¥ 87,040	¥ 73,500

Long-term Investments - Equity Security with Or without Readily Determinable Fair Values (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2018 CNY (¥) shares	Dec. 31, 2018 USD ($) shares	Oct. 31, 2022	Mar. 31, 2022 CNY (¥)	Mar. 31, 2020 CNY (¥)
Equity Security with Readily Determinable Fair Values
Cost Basis	¥ 100,303		¥ 100,303
Unrealized Loss	(91,063)		(73,535)
Foreign Currency Translation	3,726		1,684
Fair Value	12,966		28,452
Total cash consideration for purchase of Series C preferred shares	¥ 713,775	$ 103,488		¥ 65,000
Equity Securities without Readily Determinable Fair Values
Total consideration								¥ 400,000
Equity interests in affiliate (as a percent)	400000.00%						2.40%	3.20%
Impairment	¥ 7,200		¥ 0	0
Disposal by sale \| SEV related business
Equity Securities without Readily Determinable Fair Values
Total consideration				¥ 60,000					¥ 60,000
Cango Inc.
Equity Security with Readily Determinable Fair Values
Number of Series C preferred shares purchased \| shares					2,633,644	2,633,644
Total cash consideration for purchase of Series C preferred shares					¥ 100,303	$ 15,634

Short-term Borrowings and Long-term Borrowings - Borrowings (Details) ¥ in Thousands, $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2022 USD ($)	Feb. 28, 2022 CNY (¥)	Dec. 31, 2021 USD ($)	Apr. 30, 2021 USD ($)
Short term Borrowings and Long-term Borrowings
Principal amount					¥ 900,000		$ 862,500
Short-term borrowings	¥ 390,750	¥ 390,750	¥ 37,042		110,000
Long-term borrowings	9,230,807	9,230,807	5,960,899	$ 1,338,341	¥ 790,000
Total borrowings	¥ 9,621,557	9,621,557	¥ 5,997,941	9,621,557		$ 5,997,941
5-year LPR
Short term Borrowings and Long-term Borrowings
Interest rate per annum (as a percent)	(0.40%)
1-year LPR
Short term Borrowings and Long-term Borrowings
Interest rate per annum (as a percent)	(0.90%)
Secured borrowing matures February 15, 2027
Short term Borrowings and Long-term Borrowings
Principal amount	¥ 900,000	900,000
Total borrowings	900,000	¥ 900,000
Secured borrowing matures February 15, 2027 \| 5-year LPR
Short term Borrowings and Long-term Borrowings
Interest rate per annum (as a percent)		0.40%	0.40%
Secured borrowing matures September 28, 2029
Short term Borrowings and Long-term Borrowings
Principal amount	600,000	¥ 600,000
Total borrowings	600,000	¥ 600,000	¥ 600,000
Secured borrowing matures September 28, 2029 \| 5-year LPR
Short term Borrowings and Long-term Borrowings
Interest rate per annum (as a percent)		0.31%	0.31%
Secured borrowing
Short term Borrowings and Long-term Borrowings
Short-term borrowings	283,785	¥ 283,785	¥ 37,042
Long-term borrowings	1,440,544	1,440,544	562,958
Convertible debt
Short term Borrowings and Long-term Borrowings
Principal amount \| $				$ 862,500
Long-term borrowings	¥ 5,913,715	¥ 5,913,715	¥ 5,397,941
Interest rate per annum (as a percent)	0.25%	0.25%	0.25%	0.25%		0.25%
Total borrowings \| $				$ 5,913,715		$ 5,397,941
Secured bank loan 2
Short term Borrowings and Long-term Borrowings
Long-term borrowings	¥ 541,265	¥ 541,265
Secured borrowing 1
Short term Borrowings and Long-term Borrowings
Principal amount	625,383	625,383
Long-term borrowings	625,383	625,383
Total borrowings	625,383	¥ 625,383
Secured borrowing 1 \| 5-year LPR
Short term Borrowings and Long-term Borrowings
Interest rate per annum (as a percent)		0.80%	0.80%
Secured borrowing 2
Short term Borrowings and Long-term Borrowings
Principal amount	224,329	¥ 224,329
Total borrowings	224,329	¥ 224,329
Secured borrowing 2 \| 5-year LPR
Short term Borrowings and Long-term Borrowings
Interest rate per annum (as a percent)		(0.60%)	(0.60%)
Credit guaranteed borrowing 1
Short term Borrowings and Long-term Borrowings
Principal amount \| $				50,000
Long-term borrowings	500,000	¥ 500,000
Total borrowings \| $				$ 348,230
Credit guaranteed borrowing 2
Short term Borrowings and Long-term Borrowings
Principal amount	300,000	300,000
Short-term borrowings	106,965	106,965
Total borrowings	300,000	300,000
Credit guaranteed borrowing 3
Short term Borrowings and Long-term Borrowings
Principal amount	209,900	209,900
Total borrowings	209,900	¥ 209,900
Credit guaranteed borrowing 3 \| 1-year LPR
Short term Borrowings and Long-term Borrowings
Interest rate per annum (as a percent)		(0.90%)	(0.90%)
Unsecured borrowing 1
Short term Borrowings and Long-term Borrowings
Principal amount	260,000	¥ 260,000
Long-term borrowings	209,900	209,900
Total borrowings	260,000	¥ 260,000
Unsecured borrowing 1 \| 1-year LPR
Short term Borrowings and Long-term Borrowings
Interest rate per annum (as a percent)		0.70%	0.70%
Unsecured borrowing 2
Short term Borrowings and Long-term Borrowings
Principal amount	240,000	¥ 240,000
Total borrowings	¥ 240,000	¥ 240,000
Unsecured borrowing 2 \| 1-year LPR
Short term Borrowings and Long-term Borrowings
Interest rate per annum (as a percent)		(0.70%)	(0.70%)

Short-term Borrowings and Long-term Borrowings - Additional information (Details) $ in Thousands	1 Months Ended											12 Months Ended
	Dec. 31, 2022 CNY (¥)	Sep. 30, 2022 USD ($)	Jul. 31, 2022 CNY (¥)	Jun. 30, 2022 CNY (¥)	Jun. 30, 2022 USD ($)	Apr. 30, 2022	Feb. 28, 2022 CNY (¥)	Sep. 30, 2021 CNY (¥)	Apr. 30, 2021 CNY (¥)	Apr. 30, 2021 USD ($)	Feb. 28, 2021	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)	Apr. 30, 2021 $ / shares	Apr. 30, 2021 USD ($)
Short term borrowings
Principal amount							¥ 900,000,000														$ 862,500
Share price \| $ / shares																				$ 150.00
Short-term borrowings	¥ 390,750,000						110,000,000					¥ 390,750,000		¥ 37,042,000
Term of short term borrowings (in years)	1 year										5 years
Term of borrowings (in years)	1 year										5 years
Total borrowings	¥ 9,621,557,000											9,621,557,000		5,997,941,000		$ 9,621,557		$ 5,997,941
Outstanding loan principal, current	74,083,000											74,083,000
Outstanding loan principal, non-current	525,917,000											525,917,000
Interest rate on loan (as a percent)								0.31%
Maximum borrowing capacity								¥ 1,009,900,000
Outstanding loan principal \| $																600
Repayments of Debt												74,777,000
Remaining borrowing capacity	409,900,000											409,900,000
Proceeds from borrowings												3,741,482,000	$ 542,464	600,000,000
Debt instrument convertible conversion ratio						28.34			14.17	14.17
Debt instrument principal amount									100.00%	100.00%
Current portion	390,750,000						110,000,000					390,750,000		37,042,000
Non-current portion	9,230,807,000						790,000,000					9,230,807,000		5,960,899,000		$ 1,338,341
Convertible debt
Short term borrowings
Interest expense debt												31,076,000	$ 4,506	21,369,000	$ 3,353
Principal amount	6,006,968,000											6,006,968,000		5,499,041,000
Unamortized debt issuance cost	93,253,000											93,253,000		¥ 101,100,000
Credit agreement
Short term borrowings
Principal amount				¥ 3,000,000,000
Debt carrying amount	625,383,000											625,383,000
Debt instrument carrying amount	625,383,000											625,383,000
Loan agreements
Short term borrowings
Outstanding loan principal, non-current	209,900,000											209,900,000
18-month loan agreement
Short term borrowings
Outstanding loan principal as long-term borrowing \| $		$ 260
3 Year loan agreement
Short term borrowings
Short-term borrowings	100,000,000											100,000,000
Current portion	100,000,000											100,000,000
Asset transfer agreement \| Changzhou Production Base
Short term borrowings
Short-term borrowings	99,702,000											99,702,000
Current portion	99,702,000											99,702,000
Non-current portion	124,627,000											124,627,000
Commercial bank \| Loan agreements
Short term borrowings
Principal amount \| $																	$ 200,000
Debt carrying amount				696,460,000													100,000
Repaid a portion of the principal amount				348,230,000	$ 50,000
Short-term borrowings	6,965,000											6,965,000
Outstanding loan principal as long-term borrowing	341,265,000											¥ 341,265,000
Term of short term borrowings (in years)												12 months	12 months
Term of borrowings (in years)												12 months	12 months
Debt instrument carrying amount				¥ 696,460,000													$ 100,000
Current portion	6,965,000											¥ 6,965,000
Commercial bank \| 18-month loan agreement
Short term borrowings
Principal amount \| $																			$ 260
Outstanding loan principal as long-term borrowing	¥ 240,000,000											240,000,000
Term of short term borrowings (in years)	18 months	18 months
Term of borrowings (in years)	18 months	18 months
Commercial bank \| 3 Year loan agreement
Short term borrowings
Principal amount			¥ 300,000,000
Term of short term borrowings (in years)			3 years
Term of borrowings (in years)			3 years
Non-current portion	¥ 200,000,000											¥ 200,000,000
Production facilities and equipment \| Asset transfer agreement \| Changzhou Production Base
Short term borrowings
Total consideration							299,106,000
Term of short term borrowings (in years)												12 months	12 months
Term of borrowings (in years)												12 months	12 months
Production facilities and equipment \| Asset transfer agreement \| Changzhou Production Base \| Lease agreement
Short term borrowings
Amount of repurchase of production facility and equipment notional amount.							¥ 1.000
USD
Short term borrowings
Debt instrument convertible conversion ratio									28.34	28.34
RMB
Short term borrowings
Debt instrument convertible conversion ratio									35.2818	35.2818
5-year LPR
Short term borrowings
Interest rate (as a percent)	(0.40%)
5-year LPR \| Credit agreement
Short term borrowings
Interest rate (as a percent)				(0.80%)	(0.80%)
1-year LPR
Short term borrowings
Interest rate (as a percent)	(0.90%)
1-year LPR \| Commercial bank \| 18-month loan agreement
Short term borrowings
Interest rate (as a percent)	(0.70%)
Convertible debt
Short term borrowings
Principal amount \| $																					$ 1,000
Percentage of discount on share issue price									26.56%	26.56%
Interest rate (as a percent)																					0.25%
Proceeds from borrowings									¥ 5,533,238,000	$ 844,876
Secured bank loan 2
Short term borrowings
Non-current portion	¥ 541,265,000											¥ 541,265,000

Trade and Notes Payable (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Trade and Notes Payable
Trade payable for raw materials	¥ 15,410,150		¥ 7,089,370
Notes payable	4,614,179		2,286,680
Total	¥ 20,024,329	$ 2,903,255	¥ 9,376,050

Trade and Notes Payable - Aging Analysis Of Trade and Notes Payable (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Trade and Notes Payable
Total	¥ 20,024,329	$ 2,903,255	¥ 9,376,050
Within 3 months
Trade and Notes Payable
Total	¥ 19,806,395		7,539,833
Trade and note payable period	3 months
Between 3 months and 6 months
Trade and Notes Payable
Total	¥ 124,122		1,639,286
Between 3 months and 6 months \| Maximum
Trade and Notes Payable
Trade and note payable period	6 months
Between 3 months and 6 months \| Minimum
Trade and Notes Payable
Trade and note payable period	3 months
Between 6 months and 1 year
Trade and Notes Payable
Total	¥ 31,051		161,913
Between 6 months and 1 year \| Maximum
Trade and Notes Payable
Trade and note payable period	1 year
Between 6 months and 1 year \| Minimum
Trade and Notes Payable
Trade and note payable period	6 months
More than 1 year
Trade and Notes Payable
Total	¥ 62,761		¥ 35,018
Trade and note payable period	1 year

Accruals and Other Current Liabilities (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Accruals and Other Current Liabilities
Payables for purchase of property, plant and equipment	¥ 2,335,084		¥ 456,395
Salaries and benefits payable	633,215		417,449
Payables for research and development expenses	525,667		94,517
Accrued costs of purchase commitments relating to inventory	498,060
Tax payable	445,853		277,233
Payables for logistics expenses	414,353		143,632
Payables for marketing and promotional expenses	150,706		96,945
Accrued warranty	141,832		154,276
Deposits from vendors	32,013		27,716
Advances from customers	10,500		10,262
Other payables	497,361		200,943
Total	¥ 5,684,644	$ 824,198	¥ 1,879,368

Revenue Disaggregation (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Revenue Disaggregation
Revenues	¥ 45,286,816	$ 6,565,971	¥ 27,009,779	¥ 9,456,609
Vehicle sales [Member]
Revenue Disaggregation
Revenues	44,106,434	6,394,832	26,128,469	9,282,703
Other Sales And Services [Member]
Revenue Disaggregation
Revenues	¥ 1,180,382	$ 171,139	¥ 881,310	¥ 173,906

- Definition

+ References

+ Details

Revenue Disaggregation - Revenue By Timing of Recognition (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Revenue Disaggregation
Revenues	¥ 45,286,816	$ 6,565,971	¥ 27,009,779	¥ 9,456,609
Vehicle sales [Member]
Revenue Disaggregation
Revenues	44,106,434	6,394,832	26,128,469	9,282,703
Other Sales And Services [Member]
Revenue Disaggregation
Revenues	1,180,382	$ 171,139	881,310	173,906
Revenue recognized at a point in time
Revenue Disaggregation
Revenues	45,150,485		26,917,836	9,436,095
Revenue recognized at a point in time \| Vehicle sales [Member]
Revenue Disaggregation
Revenues	44,106,434		26,128,469	9,282,703
Revenue recognized at a point in time \| Other Sales And Services [Member]
Revenue Disaggregation
Revenues	1,044,051		789,367	153,392
Revenue recognized over time
Revenue Disaggregation
Revenues	¥ 136,331		¥ 91,943	¥ 20,514

- Definition

+ References

+ Details

Deferred Revenue (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
Deferred Revenue (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue-at beginning of the period	¥ 694,745	¥ 407,168	¥ 62,638
Additions	45,614,278	27,377,563	9,687,382
Recognition	(45,158,191)	(27,089,986)	(9,342,852)
Deferred revenue-at end of the period	1,150,832	694,745	407,168
Deferred revenue, current	569,234	305,092	271,510	$ 82,531
Deferred revenue, noncurrent	¥ 581,598	¥ 389,653	¥ 135,658	$ 84,324

Deferred Revenue - Additional information (Details) ¥ in Thousands	Dec. 31, 2022 CNY (¥)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation expected to be recognized	¥ 581,598
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation expected to be recognized	¥ 569,234
Period of performance obligation expected to be recognized	12 months

Research and Development Expenses (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Research and Development Expenses.
Employee compensation	¥ 3,801,960		¥ 2,079,948	¥ 580,157
Design and development expenses	2,566,567		1,003,567	431,996
Rental and related expenses	99,324		52,985	18,818
Depreciation and amortization expenses	94,134		54,110	44,977
Travel expenses	76,714		52,307	9,360
Others	141,333		43,472	14,549
Total	¥ 6,780,032	$ 983,012	¥ 3,286,389	¥ 1,099,857

Selling, General and Administrative Expenses (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Selling, General and Administrative Expenses.
Employee compensation	¥ 2,873,397		¥ 1,414,177	¥ 449,109
Marketing and promotional expenses	1,010,227		1,100,769	264,814
Rental and related expenses	645,792		324,655	162,907
Depreciation and amortization expenses	228,790		82,777	37,923
Travel expenses	99,246		69,079	20,806
Expected credit losses	2,910		6,415
Others	804,939		494,513	183,260
Total	¥ 5,665,301	$ 821,391	¥ 3,492,385	¥ 1,118,819

Discontinued Operations - Assets and liabilities (Details) - CNY (¥) ¥ in Thousands	Mar. 31, 2022	Dec. 31, 2020	Mar. 31, 2020
Assets and Liabilities
Total consideration	¥ 400,000
SEV related business \| Disposal by sale
Assets and Liabilities
Total consideration		¥ 60,000	¥ 60,000

Discontinued Operations - Results of operations (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020 CNY (¥)
Results of operations
Net loss from discontinued operations, net of tax	¥ 14,373
Discontinued Operations, Held-for-sale \| SEV related business
Results of operations
Revenues	870
Cost of sales	(2,437)
Gross loss	(1,567)
Operating expenses	(1,423)
Loss from operations of discontinued operations	(2,990)
Loss from discontinued operations before income tax expense	(2,990)
Net loss from discontinued operations, net of tax	¥ (2,990)

Discontinued Operations - Cash flows (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020 CNY (¥)
Cash flows
Net cash provided by discontinued operating activities	¥ 148
Net cash provided by discontinued investing activities	59,705
Discontinued Operations, Held-for-sale \| SEV related business
Cash flows
Net cash provided by discontinued operating activities	148
Net cash provided by discontinued investing activities	¥ 59,705

Discontinued Operations - Gain on disposal of discontinued operations (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Mar. 31, 2022	Mar. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration		¥ 400,000
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration]	Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent
Disposal by sale \| SEV related business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration	¥ 60,000		¥ 60,000
Carrying value of net assets transferred	(42,637)
Gain on disposal of discontinued operations	¥ 17,363

Ordinary Shares (Details) ¥ in Thousands, $ in Thousands				1 Months Ended							12 Months Ended
Ordinary Shares (Details) ¥ in Thousands, $ in Thousands	Jun. 28, 2022 USD ($) shares	Aug. 07, 2020 USD ($) shares	Jul. 04, 2016 CNY (¥)	Sep. 30, 2021 HKD ($) shares	Aug. 31, 2021 HKD ($) shares	May 31, 2021 shares	Feb. 28, 2021 shares	Dec. 31, 2020 shares	Aug. 31, 2020 USD ($) shares	Jul. 31, 2019 Vote shares	Dec. 31, 2022 shares	Dec. 31, 2021 CNY (¥) shares
Ordinary Shares
Class B to Class A Ordinary Shares, Conversion Ratio										1
Cash paid \| ¥												¥ 70
Share issuance, net of issuance costs (in shares)	18,862,564
Number of shares per ADS (in shares)	2
Number of shares issued (in shares)											1,954,353,892	1,929,562,426
Number of shares outstanding (in shares)											1,954,353,892	1,929,562,426
Issuance of ordinary shares as treasury shares ( Shares)											12,206,256
Options vested (in shares)											127,062
Prospectus Supplement \| $	$ 2,000,000
Share issuance, net of issuance costs (in shares)	18,862,564
Over-allotment option
Ordinary Shares
Net proceeds \| $					$ 11,633,130
Follow-on offering [Member]
Ordinary Shares
Net proceeds \| $				$ 1,634,462
Common Class A [Member]
Ordinary Shares
Ordinary shares, shares authorized										3,830,157,186	4,500,000,000	4,500,000,000
Number of votes entitled \| Vote										1
Cash paid \| $									$ 380,000,000
Share issuance, net of issuance costs (in shares)					100,000,000				66,086,955
Shares issued upon conversion of preferred shares (in shares)									1,045,789,275
Number of shares issued (in shares)											1,728,765,894	1,709,903,330
Number of shares outstanding (in shares)											1,598,541,812	1,573,750,346
Issuance of ordinary shares as treasury shares ( Shares)				13,869,700			34,000,000
Share issuance, net of issuance costs (in shares)					100,000,000				66,086,955
Common Class A [Member] \| IPO
Ordinary Shares
Share issuance, net of issuance costs (in shares)									190,000,000
Net proceeds \| $									$ 1,042,137,000
Shares issued upon conversion of preferred shares (in shares)									1,045,789,275
Share issuance, net of issuance costs (in shares)									190,000,000
Common Class A [Member] \| Over-allotment option
Ordinary Shares
Cash paid \| $		$ 157,320,000
Share issuance, net of issuance costs (in shares)		28,500,000						14,100,000
Share issuance, net of issuance costs (in shares)		28,500,000						14,100,000
Common Class A [Member] \| Follow-on offering [Member]
Ordinary Shares
Share issuance, net of issuance costs (in shares)								108,100,000
Share issuance, net of issuance costs (in shares)								108,100,000
Common Class B [Member]
Ordinary Shares
Ordinary shares, shares authorized										240,000,000	500,000,000	500,000,000
Number of votes entitled \| Vote										10
Number of shares issued (in shares)											355,812,080	355,812,080
Number of shares outstanding (in shares)											355,812,080	355,812,080
Common Class B [Member] \| Mr. Li Xiang
Ordinary Shares
Share issuance, net of issuance costs (in shares)						108,557,400
Shares issued upon conversion of preferred shares (in shares)									115,812,080
Share issuance, net of issuance costs (in shares)						108,557,400
Common Class B [Member] \| IPO
Ordinary Shares
Shares issued upon conversion of preferred shares (in shares)									115,812,080
Series PreA shares \| Beijing CHJ
Ordinary Shares
Cash paid \| ¥			¥ 100,000

Convertible Redeemable Preferred Shares and Warrants - Issuances of convertible redeemable preferred shares and major rights, preferences and privileges of the Preferred Shares (Details) ¥ / shares in Units, ¥ in Thousands								1 Months Ended			6 Months Ended	12 Months Ended
	Jul. 01, 2020 CNY (¥) ¥ / shares shares	Jan. 23, 2020 ¥ / shares shares	Jun. 06, 2018 CNY (¥) ¥ / shares shares	Nov. 28, 2017 CNY (¥) ¥ / shares shares	Sep. 05, 2017 CNY (¥) ¥ / shares shares	Jul. 21, 2017 CNY (¥) ¥ / shares shares	Jul. 04, 2016 CNY (¥) ¥ / shares shares	Aug. 31, 2020 shares	Jan. 23, 2020 CNY (¥) ¥ / shares shares	Jan. 31, 2019 shares	Jul. 02, 2019 CNY (¥) ¥ / shares shares	Dec. 31, 2022 CNY (¥) Vote ¥ / shares shares	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥) shares	Dec. 31, 2022 $ / shares	Jan. 23, 2020 $ / shares
Issuances of convertible redeemable preferred shares
Shares Issued														231,758,541
Conversion ratio of preferred Shares to ordinary shares												1
Percentage of redemption amount payable on Preferred Shares' original issue price												100.00%
Percentage of simple interest on preferred shares' original issue price for accrued and unpaid dividends												8.00%
Redemption Note due and payable												24 months
Vote per share \| Vote												1
Preferred stock dividends declared \| ¥												¥ 0
Common stock dividends declared \| ¥												¥ 0
Liquidation, percentage of amount on preferred shares original price												100.00%
Liquidation preference, simple non-compounded interest rate (as a percent)												8.00%
Accretion of the preferred shares \| ¥												¥ 0	¥ 0	¥ 651,190
Series Pre-A convertible redeemable preferred shares
Issuances of convertible redeemable preferred shares
Shares Issued						50,000,000
Issue Price per Share \| ¥ / shares						¥ 2.00
Proceeds from Issuance \| ¥						¥ 100,000
Preferred shares, par value \| $ / shares															$ 0.0001
Series A1 convertible redeemable preferred shares
Issuances of convertible redeemable preferred shares
Shares Issued							129,409,092
Issue Price per Share \| ¥ / shares							¥ 6.03
Proceeds from Issuance \| ¥							¥ 780,000
Preferred shares, par value \| $ / shares															0.0001
Series A2 convertible redeemable preferred shares
Issuances of convertible redeemable preferred shares
Shares Issued						126,771,562
Issue Price per Share \| ¥ / shares						¥ 7.89
Proceeds from Issuance \| ¥						¥ 1,000,000
Preferred shares, par value \| $ / shares															0.0001
Series A3 convertible redeemable preferred shares
Issuances of convertible redeemable preferred shares
Shares Issued					65,498,640
Issue Price per Share \| ¥ / shares					¥ 9.47
Proceeds from Issuance \| ¥					¥ 620,000
Preferred shares, par value \| $ / shares															0.0001
Series B1 convertible redeemable preferred shares
Issuances of convertible redeemable preferred shares
Shares Issued				115,209,526
Issue Price per Share \| ¥ / shares				¥ 13.11
Proceeds from Issuance \| ¥				¥ 1,510,000
Preferred shares, par value \| $ / shares															0.0001
Series B2 convertible redeemable preferred shares
Issuances of convertible redeemable preferred shares
Shares Issued			55,804,773
Issue Price per Share \| ¥ / shares			¥ 14.16
Proceeds from Issuance \| ¥			¥ 790,000
Preferred shares, par value \| $ / shares															0.0001
Series B3 convertible redeemable preferred shares
Issuances of convertible redeemable preferred shares
Shares Issued											119,950,686
Issue Price per Share \| ¥ / shares											¥ 14.16
Proceeds from Issuance \| ¥											¥ 1,701,283
Preferred shares converted from the convertible promissory notes										11,873,086
Discount on purchase price												15.00%
Preferred shares, par value \| $ / shares															0.0001
Series C Convertible Redeemable Preferred Shares
Issuances of convertible redeemable preferred shares
Shares Issued									267,198,535
Proceeds from Issuance \| ¥									¥ 3,626,924
Discount on purchase price												15.00%
Shares issued upon exercise of additional warrants		18,916,548										78,334,557
Cash exercise price \| ¥												¥ 1,022,045
Cash exercise price per share \| ¥ / shares												¥ 13.02
Shares issued for non- refundable cash considerations												4,109,127
Preferred shares, par value \| $ / shares															0.0001
Series D Convertible Redeemable Preferred Shares [Member]
Issuances of convertible redeemable preferred shares
Shares Issued	231,758,541													231,758,541
Proceeds from Issuance \| ¥	¥ 3,851,034
Preferred shares, par value \| $ / shares															$ 0.0001
Common Class A [Member]
Issuances of convertible redeemable preferred shares
Shares issued upon conversion of preferred shares (in shares)								1,045,789,275
Common Class A [Member] \| Mr. Li Xiang
Issuances of convertible redeemable preferred shares
Preferred stock convertible shares issuable								1,045,789,275
Common Class A [Member] \| IPO
Issuances of convertible redeemable preferred shares
Shares issued upon conversion of preferred shares (in shares)								1,045,789,275
Common Class B [Member] \| Mr. Li Xiang
Issuances of convertible redeemable preferred shares
Preferred stock convertible shares issuable								115,812,080
Common Class B [Member] \| IPO
Issuances of convertible redeemable preferred shares
Shares issued upon conversion of preferred shares (in shares)								115,812,080
Minimum [Member] \| Series C Convertible Redeemable Preferred Shares
Issuances of convertible redeemable preferred shares
Issue Price per Share \| $ / shares																$ 1.89
Minimum [Member] \| Series D Convertible Redeemable Preferred Shares [Member]
Issuances of convertible redeemable preferred shares
Issue Price per Share \| ¥ / shares	¥ 2.35
Maximum [Member] \| Series C Convertible Redeemable Preferred Shares
Issuances of convertible redeemable preferred shares
Issue Price per Share \| ¥ / shares		¥ 2.23							¥ 2.23
Maximum [Member] \| Series D Convertible Redeemable Preferred Shares [Member]
Issuances of convertible redeemable preferred shares
Issue Price per Share \| ¥ / shares	¥ 2.64

Convertible Redeemable Preferred Shares and Warrants - Schedule of movement of the warrants and conversion feature derivative liabilities (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020 CNY (¥)
Rollforward of the beginning and ending balance of the Level 3 warrants and derivative liabilities
Beginning balance	¥ 1,648,690
Issuance	328,461
Unrealized fair value change loss/(gain)	(272,327)
Exercise	(1,706,003)
Translation to reporting currency	1,179
Warrant liabilities
Rollforward of the beginning and ending balance of the Level 3 warrants and derivative liabilities
Beginning balance	351,750
Unrealized fair value change loss/(gain)	(46,812)
Exercise	(305,333)
Translation to reporting currency	395
Derivative liabilities
Rollforward of the beginning and ending balance of the Level 3 warrants and derivative liabilities
Beginning balance	1,296,940
Issuance	328,461
Unrealized fair value change loss/(gain)	(225,515)
Exercise	(1,400,670)
Translation to reporting currency	¥ 784

Convertible Redeemable Preferred Shares and Warrants - Convertible redeemable preferred shares activities (Details) - CNY (¥) ¥ in Thousands							1 Months Ended	6 Months Ended	12 Months Ended
	Jul. 01, 2020	Jun. 06, 2018	Nov. 28, 2017	Sep. 05, 2017	Jul. 21, 2017	Jul. 04, 2016	Jan. 23, 2020	Jul. 02, 2019	Dec. 31, 2020
Convertible redeemable preferred shares activities
Beginning balance							¥ 10,255,662		¥ 10,255,662
Beginning balance (in shares)							910,926,266		910,926,266
Issuance of preferred shares									¥ 3,603,655
Issuance of preferred shares (in shares)									231,758,541
Accretion on convertible redeemable preferred shares to redemption value									¥ 651,190
Exercise of Series B-3 Anti-Dilution Warrant									¥ 305,333
Exercise of Series B-3 Anti-Dilution Warrant (in shares)									18,916,548
Bifurcation of conversion feature									¥ (81,082)
Effect of exchange rate changes on preferred shares									(10,862)
Conversion of preferred shares to ordinary shares									¥ (14,723,896)
Conversion of preferred shares to ordinary shares (in shares)									(1,161,601,355)
Series Pre-A convertible redeemable preferred shares
Convertible redeemable preferred shares activities
Beginning balance							¥ 434,886		¥ 434,886
Beginning balance (in shares)							50,000,000		50,000,000
Issuance of preferred shares (in shares)					50,000,000
Effect of exchange rate changes on preferred shares									¥ (858)
Conversion of preferred shares to ordinary shares									¥ (434,028)
Conversion of preferred shares to ordinary shares (in shares)									(50,000,000)
Series A1 convertible redeemable preferred shares
Convertible redeemable preferred shares activities
Beginning balance							¥ 980,949		¥ 980,949
Beginning balance (in shares)							129,409,092		129,409,092
Issuance of preferred shares (in shares)						129,409,092
Accretion on convertible redeemable preferred shares to redemption value									¥ 34,229
Effect of exchange rate changes on preferred shares									(1,746)
Conversion of preferred shares to ordinary shares									¥ (1,013,432)
Conversion of preferred shares to ordinary shares (in shares)									(129,409,092)
Series A2 convertible redeemable preferred shares
Convertible redeemable preferred shares activities
Beginning balance							¥ 1,074,959		¥ 1,074,959
Beginning balance (in shares)							126,771,562		126,771,562
Issuance of preferred shares (in shares)					126,771,562
Accretion on convertible redeemable preferred shares to redemption value									¥ 63,363
Effect of exchange rate changes on preferred shares									(1,770)
Conversion of preferred shares to ordinary shares									¥ (1,136,552)
Conversion of preferred shares to ordinary shares (in shares)									(126,771,562)
Series A3 convertible redeemable preferred shares
Convertible redeemable preferred shares activities
Beginning balance							¥ 619,770		¥ 619,770
Beginning balance (in shares)							65,498,640		65,498,640
Issuance of preferred shares (in shares)				65,498,640
Accretion on convertible redeemable preferred shares to redemption value									¥ 46,738
Effect of exchange rate changes on preferred shares									(964)
Conversion of preferred shares to ordinary shares									¥ (665,544)
Conversion of preferred shares to ordinary shares (in shares)									(65,498,640)
Series B1 convertible redeemable preferred shares
Convertible redeemable preferred shares activities
Beginning balance							¥ 1,347,607		¥ 1,347,607
Beginning balance (in shares)							115,209,526		115,209,526
Issuance of preferred shares (in shares)			115,209,526
Accretion on convertible redeemable preferred shares to redemption value									¥ 136,567
Effect of exchange rate changes on preferred shares									(1,899)
Conversion of preferred shares to ordinary shares									¥ (1,482,275)
Conversion of preferred shares to ordinary shares (in shares)									(115,209,526)
Series B2 convertible redeemable preferred shares
Convertible redeemable preferred shares activities
Beginning balance							¥ 710,303		¥ 710,303
Beginning balance (in shares)							55,804,773		55,804,773
Issuance of preferred shares (in shares)		55,804,773
Accretion on convertible redeemable preferred shares to redemption value									¥ 64,859
Effect of exchange rate changes on preferred shares									(1,040)
Conversion of preferred shares to ordinary shares									¥ (774,122)
Conversion of preferred shares to ordinary shares (in shares)									(55,804,773)
Series B3 convertible redeemable preferred shares
Convertible redeemable preferred shares activities
Beginning balance							¥ 1,551,080		¥ 1,551,080
Beginning balance (in shares)							119,950,686		119,950,686
Issuance of preferred shares (in shares)								119,950,686
Accretion on convertible redeemable preferred shares to redemption value									¥ 80,635
Effect of exchange rate changes on preferred shares									(2,613)
Conversion of preferred shares to ordinary shares									¥ (1,629,102)
Conversion of preferred shares to ordinary shares (in shares)									(119,950,686)
Series C Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares activities
Beginning balance							¥ 3,536,108		¥ 3,536,108
Beginning balance (in shares)							248,281,987		248,281,987
Issuance of preferred shares (in shares)							267,198,535
Accretion on convertible redeemable preferred shares to redemption value									¥ 178,007
Exercise of Series B-3 Anti-Dilution Warrant									¥ 305,333
Exercise of Series B-3 Anti-Dilution Warrant (in shares)									18,916,548
Bifurcation of conversion feature									¥ (81,082)
Effect of exchange rate changes on preferred shares									28
Conversion of preferred shares to ordinary shares									¥ (3,938,394)
Conversion of preferred shares to ordinary shares (in shares)									(267,198,535)
Series D Convertible Redeemable Preferred Shares [Member]
Convertible redeemable preferred shares activities
Issuance of preferred shares									¥ 3,603,655
Issuance of preferred shares (in shares)	231,758,541								231,758,541
Accretion on convertible redeemable preferred shares to redemption value									¥ 46,792
Conversion of preferred shares to ordinary shares									¥ (3,650,447)
Conversion of preferred shares to ordinary shares (in shares)									(231,758,541)

Loss Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares
Numerator:
Net loss	¥ (2,032,348)	$ (294,662)	¥ (321,455)	¥ (151,657)
Accretion on convertible redeemable preferred shares to redemption value	0		0	(651,190)
Effect of exchange rate changes on convertible redeemable preferred shares				10,862
Less: Net loss attributable to noncontrolling interests	(20,133)	(2,919)
Net loss attributable to ordinary shareholders of Li Auto Inc.	(2,012,215)	(291,743)	(321,455)	(791,985)
Including:
Net loss from continuing operations attributable to ordinary shareholders of Li Auto Inc.	¥ (2,012,215)	$ (291,743)	¥ (321,455)	(806,358)
Net income from discontinued operations attributable to ordinary shareholders of Li Auto Inc.				¥ 14,373
Denominator:
Weighted average ordinary shares outstanding-basic \| shares	1,941,230,998	1,941,230,998	1,853,320,448	870,003,278
Weighted average ordinary shares outstanding-diluted \| shares	1,941,230,998	1,941,230,998	1,853,320,448	870,003,278
Basic and diluted net loss per share from continuing operations attributable to ordinary shareholders of Li Auto Inc. \| (per share)	¥ (1.04)	$ (0.15)	¥ (0.17)	¥ (0.93)
Basic and diluted net (loss)/income per share from discontinued operations attributable to ordinary shareholders of Li Auto Inc. \| ¥ / shares				0.02
Net loss per share \| (per share)	(1.04)	(0.15)	(0.17)	(0.91)
Diluted net loss per share from continuing operations attributable to ordinary shareholders of Li Auto Inc. \| (per share)	(1.04)	(0.15)	(0.17)	(0.93)
Diluted net (loss)/income per share from discontinued operations attributable to ordinary shareholders of Li Auto Inc. \| ¥ / shares				0.02
Net loss per share \| (per share)	¥ (1.04)	$ (0.15)	¥ (0.17)	¥ (0.91)

Loss Per Share - Additional information (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share
Weighted average numbers of shares excluded from the calculation of diluted loss per share	60,861,105	44,853,801	0
Preferred shares
Antidilutive Securities Excluded from Computation of Earnings Per Share
Weighted average numbers of shares excluded from the calculation of diluted loss per share	0	0	669,666,355
Options granted
Antidilutive Securities Excluded from Computation of Earnings Per Share
Weighted average numbers of shares excluded from the calculation of diluted loss per share	91,499,552	72,791,430	54,605,925
Convertible debts
Antidilutive Securities Excluded from Computation of Earnings Per Share
Weighted average numbers of shares excluded from the calculation of diluted loss per share	0	0	22,639,154

Share-based Compensation - Compensation expenses (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	¥ 2,053,165	¥ 1,101,356	¥ 142,795
Cost of sales
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	44,845	26,713	1,515
Research and development expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	1,333,710	741,793	60,789
Selling, general and administrative expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	¥ 674,610	¥ 332,850	¥ 80,491

Share-based Compensation - Schedule of stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
2019 and 2020 Share Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of Options and Shares Outstanding, Beginning balance	83,391,284	56,914,000	54,760,000
Number of Options and Shares, Granted	579,600	36,987,700	4,224,000
Number of Options and Shares, Forfeited	(3,832,800)	(4,106,000)	(2,070,000)
Number of Options and Shares, Exercised	(5,801,840)	(6,404,416)
Number of Options and Shares Outstanding, Ending balance	74,336,244	83,391,284	56,914,000	54,760,000
Weighted average exercise price, Outstanding	$ 0.10	$ 0.10	$ 0.10
Weighted average exercise price, Granted	0.10	0.10	0.10
Weighted average exercise price, Exercised	0.10	0.10
Weighted average exercise price, Forfeited	0.10	0.10	0.10
Weighted average exercise price, Outstanding	$ 0.10	$ 0.10	$ 0.10	$ 0.10
Weighted average remaining contractual life (in years)	5 years 6 months 21 days	6 years 8 months 12 days	5 years 11 months 12 days	6 years 8 months 23 days
Aggregate intrinsic value, Outstanding	$ 750,796	$ 1,330,091	$ 814,724	$ 73,926
Number of Options Outstanding, Vested and expected	71,370,113	79,915,157
Weighted average exercise price, Vested and expected	$ 0.10	$ 0.10
Weighted average remaining contractual life , Vested and expected (in years)	5 years 5 months 15 days	6 years 7 months 6 days
Aggregate intrinsic value, Vested and expected	$ 720,838	$ 1,274,647
Number of Options Outstanding, Exercisable	46,292,444	40,251,584
Weighted average exercise price, Exercisable	$ 0.10	$ 0.10
Weighted average remaining contractual life , Exercisable (in years)	4 years 21 days	4 years 6 months 18 days
Aggregate intrinsic value, Exercisable	$ 467,554	$ 642,013
2021 Share Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of Options and Shares Outstanding, Beginning balance	108,557,400
Number of Options and Shares, Granted		108,557,400
Number of Options and Shares Outstanding, Ending balance	108,557,400	108,557,400
Weighted average exercise price, Outstanding	$ 14.63
Weighted average exercise price, Granted		$ 14.63
Weighted average exercise price, Outstanding	$ 14.63	$ 14.63
Weighted average remaining contractual life (in years)	8 years 2 months 8 days	9 years 2 months 8 days

Share-based Compensation - Schedule of options fair value assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
2019 and 2020 Share Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Exercise price (USD)	$ 0.10	$ 0.10	$ 0.10
Fair value of the ordinary shares on the date of grant	$ 16.05	$ 15.78	$ 1.71
Risk-free interest rate	1.51%
Expected term (in years)	10 years	10 years	10 years
Expected dividend yield	0.00%	0.00%	0.00%
Expected volatility	48.00%
2019 and 2020 Share Incentive Plan \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Fair value of the ordinary shares on the date of grant		$ 14.42	$ 1.35
Risk-free interest rate		1.48%	0.69%
Expected volatility		47.00%	45.00%
2019 and 2020 Share Incentive Plan \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Fair value of the ordinary shares on the date of grant		$ 17.35	$ 1.90
Risk-free interest rate		0.93%	1.92%
Expected volatility		48.00%	46.00%
2021 Share Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Exercise price (USD)	$ 14.63
Fair value of the ordinary shares on the date of grant	4.96	$ 4.96
Fair value of the ordinary shares on the date of option grant (USD)	$ 10.67
Risk-free interest rate	1.59%
Expected term (in years)	10 years
Expected dividend yield	0.00%
Expected volatility	47.00%

Share-based Compensation - Additional Information (Details)	1 Months Ended			12 Months Ended
	Jul. 31, 2021 Vote $ / shares shares	Jul. 31, 2020 shares	Jul. 31, 2019 shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 $ / shares shares	Dec. 31, 2020 $ / shares shares	May 31, 2021 $ / shares shares	Mar. 31, 2021 tranche $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award
Weighted average period of unrecognized compensation cost				4 years 2 months 15 days
Options vested (in shares) \| shares				127,062
Conversion Ratio, Class B to Class A Ordinary Shares	1
2019 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Contractual term (in years)			10 years
Vesting period (in years)			5 years
Vesting percentage			20.00%
Vested after service period (in years)			1 year
2019 Plan \| Common Class A [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Maximum number of shares authorized \| shares			141,083,452
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Contractual term (in years)		10 years
Vesting period (in years)		5 years
Vesting percentage		20.00%
Vested after service period (in years)		1 year
2020 Plan \| Common Class A [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Maximum number of shares authorized \| shares		165,696,625
2019 and 2020 Share Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Granted (in shares) \| shares				579,600	36,987,700	4,224,000
Weighted average grant date fair value of options granted \| $ / shares				$ 16.05	$ 15.78	$ 1.71
Unrecognized compensation expenses \| $				$ 76,430,000
Weighted average period of unrecognized compensation cost				3 years 3 months 25 days
Number of vested and exercisable options (in shares) \| shares				46,292,444	40,251,584
Average exercise price (in USD per share) \| $ / shares				$ 0.10	$ 0.10
2019 and 2020 Share Incentive Plan \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized compensation expenses \| $				$ 203,638
2019 and 2020 Share Incentive Plan \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Weighted average grant date fair value of options granted \| $ / shares					14.42	1.35
2019 and 2020 Share Incentive Plan \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Weighted average grant date fair value of options granted \| $ / shares					$ 17.35	$ 1.90
2021 Share Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Granted (in shares) \| shares					108,557,400
Weighted average grant date fair value of options granted \| $ / shares				$ 4.96	$ 4.96
Unrecognized compensation expenses \| $				$ 538,445,000
Exercise price per share \| $ / shares								$ 14.63
Exercise price per share ADS \| $ / shares								$ 29.26
Number of tranches								6
Number of option granted per tranche \| shares								18,092,900
Number of Votes \| Vote	10
2021 Share Incentive Plan \| Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award
Number of vehicle								500,000
Weighted Average Remaining Contractual Life								500,000
2021 Share Incentive Plan \| Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award
Number of vehicle								1,000,000
Weighted Average Remaining Contractual Life								1,000,000
2021 Share Incentive Plan \| Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award
Number of vehicle								1,500,000
Weighted Average Remaining Contractual Life								1,500,000
2021 Share Incentive Plan \| Share-based Payment Arrangement, Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award
Number of vehicle								2,000,000
Weighted Average Remaining Contractual Life								2,000,000
2021 Share Incentive Plan \| Share-based Payment Arrangement, Tranche Five
Share-based Compensation Arrangement by Share-based Payment Award
Number of vehicle								2,500,000
Weighted Average Remaining Contractual Life								2,500,000
2021 Share Incentive Plan \| Share-based Payment Arrangement, Tranche Six
Share-based Compensation Arrangement by Share-based Payment Award
Number of vehicle								3,000,000
Weighted Average Remaining Contractual Life								3,000,000
2021 Share Incentive Plan \| Common Class A [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Number of Votes \| Vote	1
2021 Share Incentive Plan \| Common Class B [Member] \| Mr. Li Xiang
Share-based Compensation Arrangement by Share-based Payment Award
Maximum number of shares authorized \| shares	108,557,400						108,557,400	108,557,400
Exercise price per share \| $ / shares	$ 14.63						$ 14.63

Share-based Compensation - RSU activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share based Compensation
Beginning Balance	8,586
Beginning Balance	$ 17.25
Granted (in Shares)	36,199,400	8,586
Granted	$ 17.13	$ 17.25
Vested (in Shares)	(127,062)
Vested	$ 18.76
Forfeited (in shares)	(5,087,800)
Forfeited	$ 16.74
Ending Balance	30,993,124	8,586
Ending Balance	$ 17.20	$ 17.25
Weighted Average Grant Date Fair Value
Weighted Average Remaining Contractual Life	9 years 2 months 15 days	9 years 6 months

Taxation (Details) ¥ in Thousands, $ in Thousands	1 Months Ended	12 Months Ended
Taxation (Details) ¥ in Thousands, $ in Thousands	Aug. 31, 2021	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Taxation
Corporate income tax rate		25.00%	25.00%
Reduction in the standard statutory rate		50.00%	50.00%
Current and deferred income tax expense		¥ (127,007)	$ (18,414)	¥ 168,643	¥ (22,847)
Net operating loss carryforwards		6,993,136
Deferred tax assets, operating carryforwards, valuation allowance		1,458,980
Deferred tax assets, operating carryforwards, net of valuation allowance		¥ 63,432
Percentage of consumption tax	3.00%	3.00%	3.00%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		25.00%	25.00%
High and New Technology Enterprises
Taxation
VAT for software research and development and relevant services		13.00%	13.00%
VAT refund in excess		3.00%	3.00%
VAT refunds received		¥ 234,531		¥ 0	¥ 0
Cayman Islands
Taxation
Withholding income tax rate (as a percent)		0.00%	0.00%
Hong Kong
Taxation
Corporate income tax rate		16.50%	16.50%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		16.50%	16.50%
PRC
Taxation
Statutory VAT rate (as a percent)		13.00%	13.00%
Withholding income tax rate (as a percent)		10.00%	10.00%
Corporate income tax rate		25.00%	25.00%
Minimum percentage of ownership interests held by investors in Hong Kong to qualify for lower withholding tax rate (as a percent)		25.00%	25.00%
Reduced withholding tax rate (as a percent)		5.00%	5.00%
Total deduction available on qualified research and development expenses (as a percent)		150.00%	150.00%
Additional deduction on qualified research and development expenses (as a percent)		175.00%	175.00%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		25.00%	25.00%
PRC \| High and New Technology Enterprises
Taxation
Preferential enterprise income tax rate (as a percent)		15.00%	15.00%
Effective term		3 years	3 years
Singapore
Taxation
Corporate income tax rate		17.00%	17.00%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		17.00%	17.00%

Taxation - Composition of income tax benefit (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Composition of income tax benefit
Current income tax expense	¥ 1,331
Deferred income tax expense/(benefit)	(128,338)	$ (18,607)	¥ 168,643	¥ (22,847)
Income tax (benefit)/expense	¥ (127,007)	$ (18,414)	¥ 168,643	¥ (22,847)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Taxation - Reconciliations of income tax expenses (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Reconciliations of the income tax expenses
Loss before income tax expense	¥ (2,159,355)	$ (313,076)	¥ (152,812)	¥ (188,877)
Income tax credit computed at PRC statutory income tax rate of 25%	(539,839)		(38,203)	(47,219)
Tax effect of tax-exempt entity and preferential tax rate	(321,507)		(89,928)	30,140
Tax effect of R&D Deduction and others	(648,317)		(314,141)	(144,503)
Non-deductible expenses	566,597		318,185	21,511
Change in valuation allowance	816,059		292,730	117,224
Income tax (benefit)/expense	¥ (127,007)	$ (18,414)	¥ 168,643	¥ (22,847)
PRC statutory tax rate (in percent)	25.00%	25.00%

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Taxation - Components of deferred tax assets (liabilities) (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets
Net operating loss carryforwards	¥ 1,522,412	¥ 1,119,659	¥ 1,144,397
Accrued expenses and others	416,517	228,734	66,773
Inventory write-downs and losses on inventory purchase commitments	219,518
Impairment of long-lived assets and allowance for credit losses	15,093	13,224	7,694
Acquisition of Changzhou Manufacturing Base Phase I and Phase II (Note 10) and Changzhou Huixiang (Note 5)		11,969
Depreciation and amortization		190	16,220
Unrealized financing cost and investment loss	900		13,125
Total deferred tax assets	2,188,222	1,373,776	1,248,209
Less: Valuation allowance	(2,113,455)	(1,297,395)	(1,004,665)	¥ (887,441)
Deferred tax assets, net of valuation allowance	74,767	76,381	243,544
Deferred tax liabilities
Accelerated tax depreciation and others	(68,652)	(195,121)	(215,030)
Fair value change of certain investments	(9,157)	(15,087)	(5,667)
Total deferred tax liabilities	(77,809)	(210,208)	(220,697)
Deferred tax assets, net			¥ 22,847
Deferred tax liabilities, net	(3,042)	¥ (133,827)
Singapore
Deferred tax assets
Acquisition of Changzhou Manufacturing Base Phase I and Phase II (Note 10) and Changzhou Huixiang (Note 5)	¥ 13,782

Taxation - Movement of valuation allowance (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Valuation allowance
Balance at beginning of the year	¥ 1,297,395	¥ 1,004,665	¥ 887,441
Additions	1,147,602	395,955	148,458
Reversal	(331,542)	(103,225)	(31,234)
Balance at ending of the year	2,113,455	1,297,395	1,004,665
Deferred assets valuation allowance	2,113,455	¥ 1,297,395	¥ 1,004,665
Beijing CHJ Automobile Technology Co., Ltd.
Valuation allowance
Balance at ending of the year	63,432
Deferred assets valuation allowance	¥ 63,432

Fair Value Measurement - Assets and liabilities measured at fair value on a recurring basis (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets
Equity securities with readily determinable fair value	¥ 12,966	¥ 28,452
Recurring
Assets
Short-term investments	18,026,310	19,157,428
Long-term financial instruments	50,615
Equity securities with readily determinable fair value	12,966	28,452
Total assets	18,089,891	19,185,880
Recurring \| Level 1
Assets
Equity securities with readily determinable fair value	12,966	28,452
Total assets	12,966	28,452
Recurring \| Level 2
Assets
Short-term investments	18,026,310	19,157,428
Long-term financial instruments	50,615
Total assets	¥ 18,076,925	¥ 19,157,428

Fair Value Measurement - Additional information (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair Value Measurement
Equity securities without readily determinable fair value	¥ 558,004	¥ 93,150
Equity securities without readily determinable fair value, impairment charges	7,200	0	¥ 0
Equity method investments, impairment loss	0	0	0
Impairment loss of property, plant and equipment	0	27,388	30,381
Inventory Write-down	¥ 592,545	¥ 0	¥ 0

Commitments and Contingencies (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 26, 2019	Dec. 19, 2019
Capital commitments
Less than One Year	¥ 3,807,656
1-3 Years	473,764
Total	4,281,420
Purchase obligations
Less than One Year	10,238,626
Total	¥ 10,238,626
Disposal by sale \| Chongqing Zhizao [Member]
Purchase obligations
Equity interest disposed		100.00%	100.00%

Related Party Balances and Transactions - Significant related party transactions (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Services \| Beijing Sankuai
Related Party Balances and Transactions
Purchases from related party	¥ 5,521	¥ 969
Services \| Hanhai
Related Party Balances and Transactions
Purchases from related party	1,190
Materials \| Changzhou Huixiang
Related Party Balances and Transactions
Purchases from related party	811
Materials \| Beijing Yihang
Related Party Balances and Transactions
Purchases from related party	73	31,692	¥ 58,361
R&D services \| Beijing Yihang
Related Party Balances and Transactions
Purchases from related party	¥ 281	12,176	¥ 4,368
R&D services \| Suzhou Yihang
Related Party Balances and Transactions
Purchases from related party		¥ 3,772

Related Party Balances and Transactions - Significant related party balances (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Related Party Balances and Transactions
Due from related parties	¥ 678		¥ 1,012
Amounts due to related parties	7,190	$ 1,042	37,455
Neolix Technologies
Related Party Balances and Transactions
Due from related parties	678		678
Beijing Yihang
Related Party Balances and Transactions
Due from related parties			334
Amounts due to related parties	5,921		7,102
Beijing Sankuai
Related Party Balances and Transactions
Amounts due to related parties	1,185		330
Airx
Related Party Balances and Transactions
Amounts due to related parties	23		23
Hanhai
Related Party Balances and Transactions
Amounts due to related parties	¥ 61
Changzhou Huixiang
Related Party Balances and Transactions
Amounts due to related parties			¥ 30,000

- Definition

The aggregate amount of receivables to be collected from related parties where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth, at the financial statement date. which are usually due within one year (or one business cycle).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

- Definition

Carrying amount as of the balance sheet date of obligations due all related parties. For classified balance sheets, represents the current portion of such liabilities (due within one year or within the normal operating cycle if longer).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Restricted Net Assets (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
Restricted Net Assets (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Restricted Net Assets
Restricted net assets	¥ 9,492,844	¥ 11,417,468
PRC
Restricted Net Assets
Required minimum percentage of annual appropriations to general reserve fund or statutory surplus fund	10.00%
PRC \| Foreign invested enterprise \| General reserve fund
Restricted Net Assets
Required minimum percentage of annual appropriations to general reserve fund	10.00%
Maximum percentage of statutory general reserve related to entity's registered capital	50.00%
PRC \| Domestic enterprise \| Statutory surplus reserve
Restricted Net Assets
Required minimum percentage of annual appropriations to statutory surplus fund	10.00%
Maximum percentage of statutory surplus reserve related to entity's registered capital	50.00%

Parent Company Only Condensed Financial Information - Condensed balance sheets (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Feb. 28, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 38,478,016	$ 5,578,788		¥ 27,854,224
Time deposits and short-term investments	18,031,395	2,614,307		19,668,239
Prepayments and other current assets	1,689,860	245,007		480,680
Total current assets	66,992,487	9,712,999		52,380,414
Non-current assets:
Long-term investments	1,484,491	215,231		156,306
Property, Plant and Equipment, Net	11,187,898	1,622,093		4,498,269
Total non-current assets	19,545,464	2,833,826		9,468,499
Total assets	86,537,951	12,546,825		61,848,913
Current liabilities:
Short-term borrowings	390,750	56,653		37,042
Accruals and other current liabilities	5,684,644	824,198		1,879,368
Total current liabilities	27,372,601	3,968,655		12,108,252
Noncurrent liabilities:
Long-term borrowings	9,230,807	1,338,341	¥ 790,000	5,960,899
Total non-current liabilities	13,979,043	2,026,771		8,676,359
Total liabilities	41,351,644	5,995,426		20,784,611
SHAREHOLDERS' EQUITY
Treasury Shares	(84)	(12)		(89)
Additional paid-in capital	53,869,322	7,810,318		49,390,486
Accumulated other comprehensive loss	(194,110)	(28,143)		(1,521,871)
Accumulated deficit	(8,817,850)	(1,278,468)		(6,805,635)
Total Li Auto Inc. shareholders' equity	44,858,701	6,503,901		41,064,302
Total liabilities and shareholders' equity	86,537,951	12,546,825		61,848,913
Common Class A [Member]
SHAREHOLDERS' EQUITY
Ordinary Shares	1,188	172		1,176
Common Class B [Member]
SHAREHOLDERS' EQUITY
Ordinary Shares	235	$ 34		235
Parent company \| Reportable legal entity
Current assets:
Cash and cash equivalents	974,224			14,762,875	¥ 1,149,374	¥ 641,007
Time deposits and short-term investments	2,195,952			7,020,662
Amounts due from subsidiaries of the Group	47,993,884			23,763,053
Prepayments and other current assets	3,132			10,211
Total current assets	51,167,192			45,556,801
Non-current assets:
Investments in subsidiaries, VIEs and VIEs' subsidiaries				890,788
Long-term investments	12,968			28,452
Property, Plant and Equipment, Net	18
Total non-current assets	12,986			919,240
Total assets	51,180,178			46,476,041
Current liabilities:
Short-term borrowings	6,965
Accruals and other current liabilities	59,533			13,798
Total current liabilities	66,498			13,798
Noncurrent liabilities:
Long-term borrowings	6,254,979			5,397,941
Total non-current liabilities	6,254,979			5,397,941
Total liabilities	6,321,477			5,411,739
SHAREHOLDERS' EQUITY
Treasury Shares	(84)			(89)
Additional paid-in capital	53,869,322			49,390,486
Accumulated other comprehensive loss	(194,110)			(1,521,871)
Accumulated deficit	(8,817,850)			(6,805,635)
Total Li Auto Inc. shareholders' equity	44,858,701			41,064,302
Total liabilities and shareholders' equity	51,180,178			46,476,041
Parent company \| Reportable legal entity \| Common Class A [Member]
SHAREHOLDERS' EQUITY
Ordinary Shares	1,188			1,176
Parent company \| Reportable legal entity \| Common Class B [Member]
SHAREHOLDERS' EQUITY
Ordinary Shares	¥ 235			¥ 235

Parent Company Only Condensed Financial Information - Condensed statements of comprehensive loss (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Operating expenses:
Selling, general and administrative	¥ (5,665,301)	$ (821,391)	¥ (3,492,385)	¥ (1,118,819)
Research and development	(6,780,032)	(983,012)	(3,286,389)	(1,099,857)
Total operating expenses	(12,445,333)	(1,804,403)	(6,778,774)	(2,218,676)
Loss from operations	(3,654,877)	(529,906)	(1,017,320)	(669,337)
Other (expense)/income
Interest expense	(106,340)	(15,418)	(63,244)	(66,916)
Changes in fair value of warrants and derivative liabilities				272,327
Investment income, net	976,229	141,540	740,432	254,916
Others, net	625,633	90,708	187,320	20,133
Loss before income tax expense	(2,159,355)	(313,076)	(152,812)	(188,877)
Income tax benefit/(expense)	(127,007)	(18,414)	168,643	(22,847)
Net loss	(2,032,348)	(294,662)	(321,455)	(151,657)
Accretion on convertible redeemable preferred shares to redemption value	0		0	(651,190)
Effect of exchange rate changes on convertible redeemable preferred shares				10,862
Net loss attributable to ordinary shareholders of Li Auto Inc.	(2,012,215)	$ (291,743)	(321,455)	(791,985)
Other comprehensive income/(loss), net of tax
Foreign currency translation adjustment, net of tax	1,327,761		(516,687)	(1,020,728)
Parent company \| Reportable legal entity
Operating expenses:
Selling, general and administrative	(35,642)		(27,288)	(9,424)
Research and development	(629)		(852)
Total operating expenses	(36,271)		(28,140)	(9,424)
Loss from operations	(36,271)		(28,140)	(9,424)
Other (expense)/income
Interest expense	(43,096)		(21,369)
Interest income and investment income, net	190,528		283,737	111,290
Equity in loss of subsidiaries, VIEs and VIEs' subsidiaries	(2,300,538)		(563,106)	(520,093)
Changes in fair value of warrants and derivative liabilities				272,327
Others, net	177,165		7,423	(5,757)
Loss before income tax expense	(2,012,212)		(321,455)	(151,657)
Income tax benefit/(expense)	(3)
Net loss	(2,012,215)		(321,455)	(151,657)
Accretion on convertible redeemable preferred shares to redemption value				(651,190)
Effect of exchange rate changes on convertible redeemable preferred shares				10,862
Net loss attributable to ordinary shareholders of Li Auto Inc.	(2,012,215)		(321,455)	(791,985)
Other comprehensive income/(loss), net of tax
Foreign currency translation adjustment, net of tax	1,327,761		(516,687)	(1,020,728)
Comprehensive loss attributable to ordinary shareholders of Li Auto Inc.	¥ (684,454)		¥ (838,142)	¥ (1,172,385)

Parent Company Only Condensed Financial Information - Condensed statements of cash flows (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by operating activities	¥ 7,380,266	$ 1,070,038	¥ 8,340,385	¥ 3,139,804
CASH FLOWS FROM INVESTING ACTIVITIES
Placement of time deposits	(679,486)	(98,516)	(1,308,296)	(1,038,017)
Redemption of time deposits	514,242	74,558	1,630,773	601,968
Placement of short-term investments	(58,268,079)	(8,448,077)	(220,850,351)	(105,279,461)
Redemption of short-term investments	59,953,714	8,692,471	220,345,863	87,699,180
Purchase of property, plant and equipment and intangible assets	(5,127,899)	(743,475)	(3,444,573)	(675,187)
Net cash used in investing activities	(4,364,661)	(632,816)	(4,257,244)	(18,737,725)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings and long-term borrowings	3,741,482	542,464	600,000
Proceeds from issuance of convertible debt			5,533,238
Proceeds from follow-on offering, net of issuance costs				9,990,955
Proceeds from issuance of ordinary shares			70
Net cash provided by financing activities	5,639,392	817,635	16,709,533	24,710,697
Effects of exchange rate changes on cash and cash equivalents	1,270,097	184,146	(472,129)	(376,646)
Net increase in cash, cash equivalents and restricted cash	9,925,094	1,439,003	20,320,545	8,736,130
Cash, cash equivalents at beginning of the year	27,854,224
Cash, cash equivalents at end of the year	38,478,016	$ 5,578,788	27,854,224
Parent company \| Reportable legal entity
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by operating activities	450,517		367,063	109,961
CASH FLOWS FROM INVESTING ACTIVITIES
Payments to, and investments in subsidiaries, VIEs and VIEs' subsidiaries	(23,397,234)		(10,157,678)	(10,006,889)
Placement of time deposits			(298,284)
Redemption of time deposits			297,654	463,527
Placement of short-term investments	(2,609,767)		(173,133,568)	(75,367,086)
Redemption of short-term investments	8,036,663		180,386,757	60,452,428
Purchase of property, plant and equipment and intangible assets	(25)
Net cash used in investing activities	(17,970,363)		(2,905,119)	(24,458,020)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings and long-term borrowings	669,913
Repayment of long-term borrowings	(349,163)
Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs				3,851,034
Proceeds from issuance of convertible debt			5,533,238
Proceeds from IPOs and concurrent private placements, net of issuance cost			11,004,778	11,034,685
Proceeds from follow-on offering, net of issuance costs				9,990,955
Proceeds from exercise of share options	6,728		1,139
Proceeds from issuance of ordinary shares	2,462,300		70
Net cash provided by financing activities	2,789,778		16,539,225	24,876,674
Effects of exchange rate changes on cash and cash equivalents	941,417		(387,668)	(20,248)
Net increase in cash, cash equivalents and restricted cash	(13,788,651)		13,613,501	508,367
Cash, cash equivalents at beginning of the year	14,762,875		1,149,374	641,007
Cash, cash equivalents at end of the year	¥ 974,224		¥ 14,762,875	¥ 1,149,374