BEIJING - Li Auto Inc . (NASDAQ: NASDAQ:LI), a leader in China's new energy vehicle market, reported robust financial results for the fourth quarter ended December 31, 2023, with revenue soaring to RMB41.73 billion ($5.88 billion), exceeding the consensus estimate of RMB39.8 billion. The company's adjusted earnings per share (EPS) for the quarter stood at RMB4.23.
The significant revenue beat is the primary driver behind Li Auto's stock jumping over 7% following the announcement, a strong and optimistic market response.
In the fourth quarter, Li Auto achieved a 136.4% increase in total revenues compared to the same period last year, while vehicle sales rose by 133.8% to RMB40.38 billion ($5.69 billion). The company's vehicle margin improved to 22.7%, up from 20.0% in the fourth quarter of 2022, contributing to a gross margin of 23.5%, compared to 20.2% in the prior year's quarter.
Chairman and CEO Xiang Li commented on the company's performance, stating, "Full-year deliveries grew by 182.2%, reaching 376,030 vehicles, making us the best-selling brand among NEVs priced above RMB300,000 in China."
He attributed the strong results to the company's scale increase, research and development advancements, and improved operating efficiency.
Looking ahead, Li Auto provided guidance for the first quarter of 2024, projecting vehicle deliveries between 100,000 and 103,000 units, which would represent a significant increase from the first quarter of 2023. However, the company's revenue forecast for Q1 2024 is set between RMB31.25 billion ($4.40 billion) and RMB32.19 billion ($4.53 billion), falling short of the consensus estimate of RMB36.37 billion.
Chief Financial Officer Tie Li expressed confidence in the company's financial health, noting a record-high vehicle delivery that fueled the fourth-quarter revenue and a healthy full-year net income reaching RMB11.81 billion. He emphasized the company's profitability and strong capital reserve, which will support further research and development and business expansion in 2024.
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