Shanghai (ZXZC)- Chinese new energy vehicle manufacturer Li Auto today reported total revenues of 34.68 billion yuan (US$4.75 billion) for the third quarter of 2023, representing a 271.2% spike compared to the same quarter last year and a 21% growth from the second quarter of 2023.

Li Auto's quarterly revenue breakdown; photo credit: Li Auto

The company said the revenue hit the highest-ever level on a quarterly basis.

Of the revenue recorded in the third quarter, 33.62 billion yuan (US$4.61 billion) were contributed by vehicles sales, reflecting a 271.6% hike year-on-year (YoY) and a 20.2% growth quarter-on-quarter (QoQ). Li Auto attributed the YoY and QoQ growth mainly to the increase in vehicle deliveries, which came in at 105,108 units in the third quarter.

Li Auto also reported income from operations of 2.34 billion yuan (US$320.6 million) for the third quarter of 2023, versus a loss from operations of 2.13 billion yuan in the same quarter last year and representing an increase of 43.9% from the previous quarter.

In the same quarter, Li Auto saw its net income reach 2.81 billion yuan (US$385.5 million) in the Jul.-Sept. period this year, showing a turnaround from the net loss of 1.65 billion yuan recorded in the previous-year period and indicating a QoQ increase of 21.8%.

Li L7; photo credit: Li Auto

Li Auto's operational efficiency continued to improve in the third quarter, with costs decreasing as scale expanded. The company's gross margin remained healthy at 22.0% for the quarter, compared with 12.7% in the same span of last year and 21.8% in the second quarter of 2023. Meanwhile, its free cash flow reached 13.22 billion yuan (US$18.1 billion), while cash position stood at 88.52 billion yuan (US$12.13 billion) as of September 30, 2023. 

R&D expenses were 2.82 billion yuan (US$386.1 million) in the third quarter of 2023, representing a leap of 56.1% from the prior-year period and a rise of 16.1% from a quarter earlier. The growth in R&D expenses was primarily driven by increased employee compensation as a result of our growing number of staff as well as increased expenses to support our expanding product portfolios and technologies, said Li Auto.

As of September 30, 2023, Li Auto had deployed 361 retail stores covering 131 cities, as well as 318 after-sale service centers and Li Auto-authorized body and paint shops operating in 213 cities.