Li Auto Reports Lower Q4 Profit Despite Revenue Growth

Li Auto's Q4 results show a profit decline but a revenue rise. The company's earnings per ADS fell 37.8%, while revenues increased by 6.1%, signaling mixed performance. Looking ahead, vehicle delivery expectations remain optimistic for Q1 2025.

Date: 14-03-2025

AI Rating: 5

Profit Decline and Revenue Growth
Li Auto experienced a significant decline in profit for the fourth quarter, with gross earnings falling by 38.6% to RMB 3.53 billion, down from RMB 5.75 billion a year ago. However, the company managed to post a revenue growth of 6.1%, totaling RMB 44.27 billion.

Earnings Per Share (EPS)
The earnings per ADS for Li Auto also showed a notable drop, declining by 37.8% to RMB 3.31 from RMB 5.32 in the prior-year quarter. This reflects a worrying trend for investors, as declining EPS can indicate reduced profitability and may impact investor confidence.

Vehicle Sales
Despite the declining profit and earnings, vehicle sales increased by 5.6% to RMB 42.6 billion, suggesting that the company is still able to grow its sales volume even as profitability pressures mount. This could serve as a positive sign of demand for the company’s products.

Outlook
For the first quarter of 2025, Li Auto is expecting vehicle deliveries to rise between 9.5% and 15.7%, with revenues projected to decrease year-over-year, indicating potential market fluctuations ahead. Investors will need to watch these forecasts closely, as a decline in revenue expectations could dampen market sentiment.

Stocks: LI