By Clarence Leong
Li Auto Inc. said its second-quarter net loss widened from a year earlier, despite a 73% jump in revenue, as operating expenses almost doubled.
The Chinese electric-car maker said Monday that net loss for the period was 618.0 million yuan ($91.7 million), compared with net loss of CNY235.5 million in the year-earlier period.
Revenue climbed to CNY8.73 billion from CNY5.04 billion, while gross margin rose 2.6 percentage points to 21.5%. The auto maker’s total operating expenses rose to CNY2.86 billion from CNY1.49 billion.
Li Auto’s vehicle deliveries in the quarter reached 28,687 vehicles, up from 17,575 vehicles during the same period last year.
For the third quarter, Li Auto expects to deliver between 27,000 and 29,000 vehicles, representing a rise of 7.5%-15.5% from the year-earlier period.
It also guided for third-quarter total revenue to range from CNY8.96 billion to CNY9.56 billion, 15%-23% higher than a year earlier.
“We are pleased with our solid second quarter results in the face of numerous pandemic-related challenges,” Li Auto Chief Financial Officer Tie Li said in a statement.
“In addition, with the ongoing at-the-market offering of up to US$2.0 billion of American depositary shares, we are further strengthening our capital base to support our robust growth trajectory going forward,” he said.
Mr. Li added that the strength of the company’s product and its operational resilience “enabled us to mitigate the cost inflation affecting the entire industry.”
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