By ZHOU Shuqi
Chinese EV startup Li Auto’s revenue last year grew 67.7 percent to 45.3 billion yuan (US$6.5 billion). At the same time, its net loss yawned from 320 million yuan in 2021 to 2 billion yuan last year, according to the company’s financial report released Monday. For each car sold last year, Li Auto lost 27,400 yuan.
Li Auto is considered one of the leaders in China’s NEV market. The company designs, develops, manufactures, and sells premium smart electric vehicles. Its lineup includes two six-seater and one five-seater family SUVs.
Founded by LI Xiang in 2015, the company has manufacturing, engineering, and design bases in Changzhou, Jiangsu Province, with corporate headquarters and R&D stationed in Beijing.
Li auto was one of the first to commercialize extended-range electric vehicles in China, beginning production in earnest in 2019.
The company debuted on the Nasdaq in 2020, priced higher than its target at $11.5 per share, giving it a market value of US$10 billion. It also raised an additional $380 million in a concurrent private placement of shares to existing investors. Backers of the company include delivery giant Meituan and Source Code Capital.
CFO LI Tie said in a conference call that the gross margin of Li Auto last year is expected to reach 25 percent, an impressive return in the auto-making industry. Tesla’s gross margin last year was 26 percent, the highest in the world. BYD, the largest EV maker in the world, recorded only 16 percent last year.
"With sustained R&D investment and business expansion supported by our strong cashflow and ample cash reserves, we continue to be excited about our growth trajectory as a leader in China's booming NEV market," said Li.
