Li Auto Inc (NASDAQ:LI) stock rose 7.96% (As on May 11, 11:24:22 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 22. Li Auto’s (HKG:2015) losses narrowed in the first quarter of the year as the company’s revenue nearly tripled on strong sales of its electric vehicles despite the lockdowns in China. Quarterly net loss shrank considerably to 10.9 million yuan ($1.7 million) from 360 million yuan a year earlier. As of April 30th, 2022, we have 225 retail stores covering 106 cities and the 292 servicing center, and the Li Auto authorized body and paint workshops operating in 211 cities. The cash and cash equivalents, restricted cash, time deposits, and short-term investments totaled RMB 51.19 billion or $8.07 billion as of March 31st, 2022.
LI in the first quarter of FY 22 has reported the adjusted earnings per share of 4 cents, beating the analysts’ estimates for the adjusted earnings per share of 3 cents. The company had reported the adjusted revenue growth of 167.5 percent to 9.56 billion renminbi ($1.51 billion) in the first quarter of FY 22, beating the analysts’ estimates for revenue of 9.51 billion renminbi. This is as deliveries of its sole vehicle model, the Li ONE, jumped 152.1% to 31,716 units despite the lockdowns in Shanghai and Shenzhen during the period. On a quarter-over-quarter basis, total revenues and vehicles, vehicle sales decreased 10% and 10.3%, respectively primarily due to the decrease in vehicle deliveries in the first quarter of 2022. Revenues from other sales and services were RMB 253.4 million or $40 million in the first quarter of 2022, representing an increase of 127.2% from RMB 111.5 million in the first quarter of 2021, an increase of 3.6% from RMB 244.7 million in the fourth quarter of 2021. The increase in revenue from other sales and services over the first quarter of 2021 was mainly attributable to the increased sales of charging stalls, accessories, and services in line with higher accumulated vehicle sales. Gross profit in the first quarter of 2022 was RMB 2.16 billion or $341.3 million, representing an increase of 250.9% year over year and a decrease of 9.1% quarter over quarter. Vehicle margin in the first quarter of 2022 was 22.4%, compared with 16.9% in the same quarter of 2021 and 22.3% in the fourth quarter of 2021.
The company will proceed with the planned delivery of its second model, the L9, in the third quarter despite pandemic-related disruptions.
Li Auto expects revenue in the second quarter to jump by as much as 39.8% to 7.04 billion yuan and for deliveries to grow by up to 36.6% to 24,000 units. Four analysts surveyed by Capital IQ expects revenue to be 11.58 billion renminbi.