China’s Li Auto Inc. reported a bigger quarterly loss than expected after power outages in a key manufacturing region led to a shortage of parts, curtailing production, while a transition to new models hurt sales of an earlier electric vehicle.
(Bloomberg) — China’s Li Auto Inc. reported a bigger quarterly loss than expected after power outages in a key manufacturing region led to a shortage of parts, curtailing production, while a transition to new models hurt sales of an earlier electric vehicle.
Li’s net loss widened to 1.65 billion yuan ($237 million) in the three months through September, from a loss of 21.5 million yuan a year earlier, according to a statement Friday. Analysts had forecast on average a loss of 815 million yuan, according to data compiled by Bloomberg.
“With rapid production ramp-up, rigorous execution and responsible cost management, we will realize greater economies of scale and further drive down costs, putting us back on track,” Chief Financial Officer Li Tie said in the statement. Gross margin dropped to 12.7%, affected by a provision related to the company’s Li ONE vehicle, he said.
Li Auto, which is listed in Hong Kong and the US, delivered 26,524 cars last quarter, missing an August forecast that it would ship 27,000-29,000.
Revenue jumped 20% to 9.34 billion yuan in the third quarter, short of analysts’ expectations for 9.6 billion yuan, but beating the Beijing-based company’s earlier guidance of 8.96 billion yuan. It expects revenue of between 16.5 billion yuan and 17.6 billion yuan in the fourth quarter.
Li Auto was among carmakers hardest hit by power cuts in Sichuan province, which suffered its worst drought in more than half a century in the summer. With the forced closure of some factories, August deliveries fell to just 4,571 vehicles.
In a separate statement, the company said president and director Kevin Shen has resigned to “devote more time to his personal affairs.” He will be replaced by Chief Engineer Donghui Ma, with effect on Jan. 1.
Li Auto forecast fourth-quarter deliveries will rise to between 45,000 and 48,000 vehicles, helped by the introduction of two new models, including the L8 SUV. November deliveries jumped to a record 15,034 EVs.
The company’s US-listed shares rose 6.7% Thursday, trimming their loss this year to 25%. The stock added 1% in Hong Kong on Friday.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
