Key Takeaways:
- Revenue fell 11.4% to RMB23 billion, missing prior-year levels
- Vehicle margin collapsed to 6.1% from 19.8% a year earlier
- Deliveries edged up 2.5% to 95,142 but fell short of Q4 2025
Back
Li Auto swings to RMB2.3B loss on slowing hybrid demand
Li Auto swung to a net loss of RMB2.28 billion in the first quarter as the Chinese EV maker discounted hybrid models and pushed into battery EVs.
"Our first-quarter gross margin reflected our user-centric measures related to Li i6 deliveries, as well as raw material price fluctuations and our model refresh cycle," Tie Li, chief financial officer of Li Auto, said.
Total revenue fell 11.4% from a year earlier to RMB22.98 billion (US$3.3 billion), the company said Wednesday. Vehicle margin — the percentage of revenue left after direct production costs — narrowed to 6.1%, down from 19.8% in the same period last year and 16.8% in the fourth quarter. The company reported a GAAP net loss of RMB2.28 billion, compared with a net profit of RMB646.6 million a year ago. On a non-GAAP basis, the loss was RMB2.11 billion.
The results show the challenge facing Li Auto as it navigates a transition from the plug-in hybrids it pioneered toward pure battery EVs, a segment already crowded with rivals such as Nio and XPeng cutting prices. The company burned through RMB6.09 billion in operating cash during the quarter, compared with a RMB1.7 billion outflow a year earlier. Free cash flow was negative RMB7.39 billion.
Deliveries reached 95,142 vehicles in the quarter, up 2.5% from 92,864 a year earlier but down from 109,194 in the fourth quarter. The company's gross margin fell to 7.9% from 20.5% a year ago, squeezed by discounting on older models and higher costs tied to its battery EV ramp-up.
Chairman and Chief Executive Officer Xiang Li said the company reclaimed the top spot among domestic automotive brands in China's RMB200,000 and above new energy vehicle market during the quarter. He pointed to the all-new Li L9, launched in mid-May, and the upcoming Li L8 at the end of June as catalysts for a rebound.
The loss puts pressure on Li Auto's profitability narrative after years of being one of the few Chinese EV startups to post consistent profits. Investors will watch second-quarter delivery numbers for signs that the refreshed product lineup can restore margins.
This article is for informational purposes only and does not constitute investment advice.
[1] LI AUTO-W Swings to Non-GAAP Net Loss of RMB2.108B in 1Q[2] Li Auto Suffers Loss as Hybrid Sales Slow, Shrinking Margins[3] Li Auto Inc. Announces Unaudited First Quarter 2026 Financial Results[4] Niu (NIU) Q1 2026 Earnings Call Transcript[5] LI AUTO-W Swings to Non-GAAP Net Loss of RMB2.108B in 1Q - AASTOCKS.com
© 2026 Edgen Powered by