Shanghai (ZXZC)- Chinese new energy vehicle maker Li Auto announced its financial report for the second quarter of 2023 (Q2 2023), with record-breaking revenue and delivery volume.

The company reported total revenues of RMB28.65 billion (US$3.95 billion) for Q2 2023, marking an impressive surge of 228.1% from RMB8.73 billion in the same quarter of the previous year, and a robust 52.5% increase from RMB18.79 billion in Q1 2023.

Gross profit witnessed an impressive growth as well, reaching RMB6.24 billion (US$859.9 million) in Q2 2023. This remarkable increase of 232.0% from Q2 2022 and a substantial rise of 62.8% from Q1 2023 underscore Li Auto's ability to achieve sustained profitability.

Li Auto's commitment to financial achievements is also highlighted by its Q2 2023 gross margin of 21.8%, which exhibited growth compared to 21.5% in Q2 2022 and 20.4% in Q1 2023.

Li L9; photo credit: Li Auto

Vehicle sales emerged as a major driver of Li Auto's robust Q2 2023 performance. The company reported vehicle sales of RMB27.97 billion (US$3.86 billion) during the quarter, showcasing a remarkable year-over-year increase of 229.7%. This blooming growth was primarily attributed to an increase in vehicle deliveries. Additionally, a 52.6% quarter-on-quarter increase was largely fueled by enhanced vehicle deliveries, slightly offset by variations in the average selling price due to product mix changes between the two quarters.

Li Auto's vehicle margin for Q2 2023 stood at 21.0%, displaying a slight decrease from 21.2% in Q2 2022, but up from 19.8% in Q1 2023. Importantly, excluding the impact of the Li ONE's discontinued production, the vehicle margin of the Li L series remained steady throughout Q1 2023.

Demonstrating its market agility, Li Auto achieved a remarkable milestone in total vehicle deliveries, recording an impressive 86,533 units in Q2 2023, which soared 201.6% year over year.

Besides, Li Auto reported a notable net income of RMB2.31 billion (US$318.6 million) in Q2 2023. This represents a substantial turnaround from a net loss of RMB641.0 million in Q2 2022 and an spike of 147.4% from the previous quarter. Furthermore, the company's non-GAAP net income soared to RMB2.73 billion (US$376.1 million) in Q2 2023, marking a remarkable increase of 92.9% from Q1 2023.

The company's robust financial health is evident in its free cash flow, which reached RMB9.62 billion (US$1.33 billion) in Q2 2023, versus RMB451.7 million free cash flow in Q2 2022 and reflecting a 43.6% leap from Q1 2023.

Li Auto's dedication to innovation and development is further highlighted by its investment in research and development (R&D). The company allocated RMB2.43 billion (US$334.5 million) to R&D businesses in Q2 2023, indicating a noteworthy increase of 58.4% from Q2 2022 and a jump of 31.0% from Q1 2023. This investment was driven by the company's expanding workforce, growing product portfolios, and evolving technologies.

In addition, as of July 31, 2023, the company had deployed 337 retail stores spanning 128 cities, in addition to 323 servicing centers and Li Auto-authorized body and paint shops operating in 222 cities.

Looking ahead to Q3 2023, Li Auto forecasts significant growth. The company anticipates vehicle deliveries in Q3 to range between 100,000 and 103,000 vehicles, reflecting a soar of 277.0% to 288.3% compared to Q3 2022. Furthermore, Li Auto projects total revenues in the quarter to be between RMB32.33 billion (US$4.46 billion) and RMB33.30 billion (US$4.59 billion), representing a three-digit increase of 246.0% to 256.4% from the same period in the previous year.