Ideal Q4 conference call: 2024 will be an unprecedented year for product launches, with no models priced below 200,000 yuan in the next five-year plan.

Before the U.S. stock market opens on February 26th, Li Auto released its fourth-quarter earnings report for the period ending on December 31, 2023.

According to the financial report, the revenue for the fourth quarter was 41.73 billion RMB, exceeding market expectations of 39.8 billion RMB. This marks a significant increase of 136.4% compared to the same period last year, which was 17.65 billion RMB. The net profit for Q4 reached 5.75 billion RMB, soaring by 2068.2% year-on-year and increasing by 104.5% quarter-on-quarter. The non-GAAP net profit was 4.49 billion RMB.

The total revenue for the full year of 2023 amounted to 123.85 billion RMB, a 173.5% increase from 45.29 billion RMB in 2022. The full-year net profit for 2023 reached 11.81 billion RMB, compared to a net loss of 2.03 billion RMB in 2022, marking the first annual profit.

Looking ahead to the first quarter of 2024, Li Auto expects a revenue of 31.25 billion to 32.19 billion RMB, a year-on-year growth of 66.3% to 71.3%. The estimated delivery volume for the first quarter is between 100,000 and 103,000 vehicles, lower than the market expectation of 116,604.

During Li Auto's 2023 earnings report meeting, Chairman Li Xiang introduced the product plan for 2024, stating that it will be an unprecedented year for Li Auto in terms of product launches. In March, Li Auto will unveil and deliver the family tech flagship MPV - Li Auto MEGA. The 2024 models of Li Auto L7, L8, and L9 will also commence large-scale user deliveries.

Furthermore, Li Auto will launch multiple new models including Li Auto L6 this year to further expand its product lineup. By the end of the year, Li Auto's product line will consist of 4 extended-range and 4 pure electric models, totaling 8 models to meet the diverse needs of family users.

In March, Li Auto will introduce the MPV Li Auto MEGA and commence deliveries. During the same month, the 2024 models of Li Auto L7, L8, and L9 will also start large-scale user deliveries. Li Auto anticipates that the delivery volume in March will exceed 50,000 vehicles and will surpass 70,000 vehicles in June.

Li Xiang revealed that the AD MAX 3.0 intelligent driving system has enabled all AD Max users to access the "highway + city" full-scene intelligent driving NOA, covering national highways, urban loops, and roads in over 110 cities.

Li Xiang predicts that in the second quarter of this year, the imageless city NOA will be fully open nationwide, with no restrictions on the number of cities, and will be upgraded via OTA to all AD Max vehicles.

Li Xiang emphasized that in the company's entire product planning, Li Auto will not produce vehicles priced below 200,000 RMB in the next five years. By 2030, capturing just one-third of the Chinese family user market above 200,000 RMB will enable Li Auto to achieve over a trillion RMB in revenue. By 2030, if Li Auto can perform well overseas, Li Xiang predicts that in the market of households with an income of over 200,000 RMB, Li Auto alone can achieve global revenue close to that of the iPhone.

Li Xiang stated that this is a huge gold mine. Currently, Li Auto only has a small share of this gold mine. There is no need to spread out energy. Li Auto will focus and delve deeper into the global market of households with an income of over 200,000 RMB.

Competition in the smart electric vehicle market will concentrate on the top players

Li Xiang mentioned that competition in the smart electric vehicle market will concentrate on the top players. By the fourth quarter of 2024, Li Xiang predicts that the top three companies in the market of new energy vehicles priced over 200,000 RMB will obtain close to 70% market share.

To achieve this, Li Xiang pointed out that regardless of changes in the market environment, Li Auto will focus more on producing excellent products to enhance the company's competitiveness in the market. 2024 will be an important year for Li Auto in terms of product development. Every product, from details to delivery, must be done well. There will also be a significant increase in research and development investment to enhance capabilities in smart driving, intelligent space, and other areas, and to translate these capabilities into user value.

In 2024, Li Auto will aim to deliver 800,000 vehicles and achieve the goal of becoming the top-selling luxury car brand in the Chinese market. To achieve this, all teams within the company are prepared.