Li Auto, the Chinese electric-car maker, has announced its turnaround to profitability in the second quarter, driven by strong sales and improved profit margins.
Financial Performance
Li Auto posted a net profit of 2.29 billion yuan ($318.3 million) for the April-June period, a significant improvement from the loss of CNY618.0 million in the previous year.
The company’s revenue soared to CNY28.65 billion, compared to CNY8.73 billion in the same period last year. This remarkable growth can be attributed to a threefold increase in vehicle sales.
Furthermore, Li Auto’s gross profit margin witnessed an upward trend, rising from 21.5% in last year’s Q2 to 21.8% in this year’s Q2. It also showed improvement from 20.4% recorded in the first quarter of 2023.
Future Outlook
Li Auto is optimistic about its future performance and has provided guidance for the third quarter. The company expects to deliver between 100,000 and 103,000 units of cars during Q3.
Moreover, Li Auto projects its third-quarter revenue to range from CNY32.33 billion to CNY33.30 billion. Both figures represent triple the growth achieved in the same period last year.
