Li Auto reports narrowed Q2 net loss of 1.7 billion yuan

Li Auto reported a second-quarter net loss of 1.7 billion yuan ($251 million), marking a narrowing of losses compared to the 2.3 billion yuan lost in the first quarter. Despite the improvement from the previous quarter, the company's performance remains below the previous year, where it had recorded a net income of 1.1 billion yuan.

Revenue for the second quarter fell 15.1% year-on-year to 25.7 billion yuan, though it represented an 11.7% increase from the first quarter. Vehicle sales revenue declined 16.7% year-on-year to 24.1 billion yuan, which the company attributed to lower deliveries and decreased average selling prices resulting from changes in its product mix.

The company delivered 98,330 vehicles during the quarter, a 11.5% decrease year-on-year but a 3.4% increase from the first quarter. The overall gross margin rose to 11.0%, up from 7.9% in the first quarter, but remained significantly lower than the 20.1% recorded in the same period last year.