Li Auto, Inc. Q3 FY2024 earnings call

• China's NEV penetration rate reached 50.3% in Q3, with Li Auto's deliveries up 45.4% y-o-y. Market share in RMB200,000+ NEV market was 17.3% in Q3.
• Li L-series had average monthly sales over 50,000 units in Q3, with ABMAc take rate growing due to R&D investments in autonomous driving.
• As of Sept 30, had 479 retail stores, 436 service centers, and 1,000 supercharging stations with 4,888 charging spots.
• Total revenues in Q3 were RMB42.9 billion, gross profit RMB9.2 billion, income from operations RMB3.4 billion. Cash position strong at RMB106.5 billion as of Sept 30.
• Received MSCI's highest AAA BSG rating for second consecutive year.

In the third quarter, Li Auto delivered over 152,000 vehicles, up 45.4% year-over-year. Total revenues in Q3 were RMB42.9 billion, with vehicle sales contributing RMB41.3 billion. The Li L-series had average monthly sales exceeding 50,000 units in Q3. The segment market share was 17.3% in Q3, up from 14.4% in Q2. Sales in China's overall RMB200,000 above PV market surpassed multiple European premium brands, making Li Auto top three in that segment and number one among Chinese brands.

• Q4 2024 vehicle deliveries expected 160,000-170,000 units, full-year deliveries 502,000-512,000 units.
• Q4 total revenues expected RMB43.2 billion-RMB45.9 billion, up 3.5%-10% y-o-y.

Q: About growth potential of L series and upside opportunities.

A: James Liangjun Zou said hope sales growth next year will be twice the growth rate of RMB200,000+ market.

Q: About autonomous driving function deployment.

A: Xiang Li said plan to launch point-to-point whole senior smart driving with one click to AD MAX users by end of Dec 2024, and release ETC pull station passing function.

Q: About new upcoming pure EV products.

A: Xiang Li said exact info will be released in formal product launch event.

Q: About CEO share-based compensation.

A: Johnny Tie Li said recognized RMB593 million in Q3, with additional RMB42 million in Q4.

Q: About sales policy and network expansion.

A: James Liangjun Zou said expect 500 retail stores by end 2024, total display spots over 3,600, and will share 2025 store target after Q1 earnings.

Q: About competition and product upgrade for L Series.

A: Xiang Li said Li Auto still leader in software, hardware, user experience, and AI will bring big changes.

Q: About overseas market strategy.

A: James Liangjun Zou said Middle East and Central Asia first target regions, not considering Western Europe and North America now.

Q: About user experience of new AD Max functions and charging station plan.

A: Xiang Li said AD Max take rate increased, James Liangjun Zou said plan to have over 2,000 charging stations by new BEV launch, scaling to 4,000 by end 2025.

Q: About competition in RMB200,000+ category and segment boundaries.

A: Xiang Li said confident in market share growth, and AI and large SUVs for family users are big opportunities.

Q: About self-driving progress and cost reduction.

A: Xiang Li said ongoing supervised autonomous driving iteration, and technology innovation and supplier collaboration for cost reduction.