Li Auto Achieves 376,000 Vehicle Deliveries in 2023, Plans Expansion
2024-02-28
Li Auto, a prominent Chinese automotive brand, convened its Q4 2023 earnings call, with key executives sharing insights into the company's performance and future strategies. The meeting saw the presence of Mr. Xiang Li, the Founder, Chairman, and Chief Executive Officer, alongside Mr. Johnny Tie Li, the CFO, Mr. Donghui Ma, the President, Mr. James Liangjun Zou, the Senior VP, and Kobe Wang, the Head of Capital Markets.
During the call, it was disclosed that Li Auto successfully delivered a total of 376,000 vehicles throughout 2023, achieving a notable milestone of 50,000 monthly deliveries in December. The company's market share in China's NEV market segment of RMB 200,000 and above witnessed a rise from 10.9% in Q1 2023 to 16% by Q4 2023, solidifying Li Auto's position as a leading player in the Chinese automotive industry.
In terms of financial performance, Li Auto reported total revenues of RMB 41.73 billion in Q4 2023, contributing to a significant annual revenue for the year. The gross profit for the same quarter amounted to RMB 9.79 billion, with a vehicle margin of 22.7%.
Li Auto outlined key focus areas for future growth and development, emphasizing the importance of establishing long-term profitability, enhancing cash generation, and strengthening the capital base. The company also aims to deepen its research and development initiatives across various aspects such as products, platforms, and systems. Additionally, Li Auto unveiled plans to introduce several new products in 2024, including the high-tech flagship and family NPV, LI MEGA, as well as the 2024 model year Li L7, L8, and L9 models.
Furthermore, Li Auto has been actively improving its product offerings through updates and upgrades, with more than 20 over-the-air updates and the rollout of OTA 5.0 enhancements. The company expanded its sales and service network by opening 106 new retail stores in Q4 2023 and is targeting the establishment of 2,000 supercharging stations by the year's end.
Looking forward, Li Auto anticipates sustaining its robust performance, with a first-quarter volume guidance ranging from 100,000 to 103,000 units. The company is committed to maintaining a healthy gross profit margin and intends to expand its charging station network to cater to its expanding customer base.
In conclusion, Li Auto's Q4 2023 earnings call underscored the company's remarkable growth trajectory, market share expansion, and unwavering dedication to innovation and customer satisfaction. With a strategic focus on profitability, research and development, and the diversification of its product portfolio and infrastructure, Li Auto is well-positioned to continue its success within the Chinese automotive sector and potentially explore opportunities in international markets in the future.