Market Insight | LI AUTO-W opens nearly 12% lower after earnings, second-quarter net profit halved, automotive gross margin down 2.3 percentage points

LI AUTO-W opened nearly 12% lower after the performance report, falling by 11.78% to HKD 71.5 as of the time of publication, with a turnover of HKD 96.6077 million. On the news front, LI AUTO released its second-quarter and interim results for 2024. In the first half of the year, LI AUTO's total revenue was RMB 57.312 billion, up 20.81% year-on-year; net profit was RMB 1.695 billion, down 47.4% year-on-year; non-GAAP net profit was RMB 2.779 billion, down 32.9% year-on-year; gross profit margin was 20%, down 1.2 percentage points year-on-year, mainly due to the decrease in vehicle gross profit margin. In the second quarter of this year, LI AUTO's revenue was RMB 31.678 billion, up 10.6% year-on-year; net profit was RMB 1.1 billion, down 52.3% year-on-year; adjusted net profit was RMB 1.503 billion, down 44.9% year-on-year. The vehicle gross profit margin was 18.7%, down 2.3 percentage points year-on-year. The company expects to deliver 145,000 to 155,000 vehicles in the third quarter, with an estimated 137,725 vehicles; expected total revenue for the third quarter is RMB 39.4 billion to 42.2 billion, up 13.7% to 21.6% year-on-year