Summary of Core Information for Conference Calls
About the New Car
- AIWAYS will launch the next model in 2022, and two models per year after that;
- AIWAYS has started to renovate the Changzhou plant to adapt it to the production of the subsequent model;
- Currently, AIWAYS does not plan to introduce lithium iron phosphate batteries into the extended-range vehicle model, and it is not excluded that the pure electric vehicle model in the research and development stage may use lithium iron phosphate batteries;
- The first pure electric vehicle model of AIWAYS will be launched in 2023;
- AIWAYS has two high-voltage pure electric platforms, the Whale platform focuses on space, and the Shark platform focuses on performance;
- The company has entered the second strategic cycle, that is, to release more models. As a result, the sales target for a single store is no longer the top priority. The main work this year is to prepare for the new models in 2022.
About Financial Report Data Explanation
- AIWAYS stated that the average sales volume of December 2020 and January 2021 was consistent with expectations. It is expected that the first-quarter data will be affected by the Spring Festival holiday in February and the northern epidemic. However, with the improvement of the epidemic and the opening of retail stores, sales are expected to increase;
- AIWAYS stated that the decrease in Q4 gross profit is mainly due to the reduction in supplier rebates and the increase in marketing and R&D expenses.
Attitude Toward Policies
Regarding the policy that plug-in hybrids will no longer be given green license plates in Shanghai from 2023, AIWAYS accounted for 9% of the delivery volume in Shanghai in 2020 and 55% of the sales volume in non-restricting license plate cities across China.
AIWAYS stated that they are in close contact with the Shanghai government. Under the encouragement of policies, it is believed that the sales of extended-range, hybrid, and pure electric vehicles will significantly increase in 2022.
AIWAYS’ Views on the Entry of Technology Giants into the Automobile Industry
Li Xiang stated that for domestic technology companies to enter the automotive industry, it takes at least three years for team, market research, project approval, R&D, production, manufacturing, and delivery. In addition, it still needs to undergo one year of market validation. By that time, AIWAYS will have taken the lead in market share.
In 2024, AIWAYS will have thousands of service network points, factories and supply chains to provide support, and the company will enter the second strategic cycle, with product pricing ranging from 150,000 to 500,000 yuan and mature technology. AIWAYS welcomes technology companies to enter and believes that the timing is favorable for AIWAYS, which will have entered a period of rapid growth.
About Future Planning
- This year, AIWAYS’ stores will reach 200, covering 100 cities, to support the sales of X01 in the future;
- AIWAYS’ gross profit will be maintained between 19-20% in the future;
- It is expected that half of the R&D expenses will be used in autonomous driving in the next two years;
- AIWAYS stated that the company has always focused on the domestic market while paying attention to foreign markets.
Core Information of Financial Report
Delivery and Retail Store Data2020Q4 total deliveries were 14,464 vehicles, up 67% compared to the previous quarter. The total deliveries in 2020 were 32,624 vehicles.
- 8,660 vehicles were delivered in 2020Q3
- 6,604 vehicles were delivered in 2020Q2
- 2,896 vehicles were delivered in 2020Q1
As of December 31, 2020, Li Auto had 52 retail stores in 41 cities across China.
Li Auto’s automotive sales revenue was RMB 4.06 billion in 2020Q4, an increase of 64.6% from RMB 2.46 billion in 2020Q3. The company’s total revenue for 2020Q4 was RMB 4.15 billion, a 65.2% increase from 2020Q3’s RMB 2.51 billion.
The total gross profit for 2020Q4 was RMB 724.6 million, a 45.9% increase from RMB 496.8 million in 2020Q3.
The gross profit margin for vehicle sales in 2020Q4 was 17.1% (19.8% in 2020Q3). The company’s total gross profit margin for 2020Q4 was 17.5% (19.8% in 2020Q3).
The net profit for 2020Q4 was RMB 107.5 million, a turnaround from a loss of RMB 106.9 million in 2020Q3. This was Li Auto’s first profitable quarter.
Li Auto plans to deliver 10,500-11,500 vehicles and generate revenue of RMB 2.94-3.22 billion in 2021Q1.
As of December 31, 2020, Li Auto had 4,181 employees.
As of 2020Q4, Li Auto’s cash reserve was RMB 29.87 billion.
Li Auto’s CEO, Li Xiang, stated in the financial report that they will accelerate the development of the second-generation platform and high-voltage BEV platform. Currently, Li Auto is renovating its factory in Changzhou to accommodate the production of the new X01 full-size SUV model, which will be launched in 2022. Meanwhile, Li Auto has established a research and development center in Shanghai.
🔗Source: Li Auto
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email email@example.com.