Li Auto Inc. (NASDAQ: LI) is a Chinese new-energy vehicle manufacturer headquartered in Beijing that specializes in premium “smart” electric vehicles. Founded in 2015 by Li Xiang, the company began as Leading Ideal Inc. and adopted the name Li Auto Inc. in July 2020. Its core business covers the full ...Li Auto Inc. (NASDAQ: LI) is a Chinese new-energy vehicle manufacturer headquartered in Beijing that specializes in premium “smart” electric vehicles. Founded in 2015 by Li Xiang, the company began as Leading Ideal Inc. and adopted the name Li Auto Inc. in July 2020. Its core business covers the full vehicle lifecycle—vehicle design and development, manufacturing, sales, and post-purchase customer management—positioning the brand around family mobility needs.
Product-wise, Li Auto is best known for its range-extended electric vehicle approach, combining electric drive with an onboard range-extender to reduce range anxiety and improve day-to-day usability for customers. The company’s portfolio includes multi-purpose vehicles (MPVs) and sport utility vehicles (SUVs), including the company’s “REV” (Range-Extended Electric Vehicle) lineup and the broader vehicle family commonly referenced as Li L series (SUVs) and other model series introduced over time. The company markets these vehicles as technologically advanced and customer-experience-driven, emphasizing comfort, convenience, and connected features typical of the “smart electric vehicle” segment.
From a go-to-market perspective, Li Auto sells directly to consumers using a hybrid approach: digital platforms for discovery and ordering, complemented by brick-and-mortar experiences for sales and service. This direct model is intended to improve customer acquisition, reduce friction in the buying process, and strengthen after-sales support. The manufacturing footprint is associated with production facilities in Changzhou, supporting vehicle scale-up and supply of its premium models.
Financially, the provided TTM metrics indicate profitability has been pressured (e.g., negative operating/net margins and negative free cash flow measures). The company also appears to be in a capital- and development-intensive phase typical for automakers expanding models and manufacturing capabilities; valuation multiples derived from earnings can therefore be negative when losses persist. Dividend activity is shown as zero in the dataset.
Key people include Li Xiang (Founder, Chairman, and CEO) and other senior executives such as Donghui Ma (President & Executive Director). Overall, Li Auto aims to remain a competitive player in China’s rapidly evolving electric vehicle market by iterating on its range-extended technology, expanding its smart-vehicle ecosystem, and continuing to scale manufacturing and customer service capabilities.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$109.3B
-24.4%
+12.0%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$1.1B
-86.4%
+25.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+18.7%
-9.0%
+40.5%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-0.9%
-120.1%
+33.0%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+1.0%
-82.0%
+33.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-12.8B
-256.2%
+82.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-11.7%
-306.7%
+84.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
24.5%
+6.4%
+79.7%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.81x
-0.6%
-3.8%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello, ladies and gentlemen. Thank you for standing by for Li Auto's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded. I will now turn the call over to your host, Ms. Janet Chang, Investor Relations Director of Li Auto. Please go ahead, Janet.
Janet Chang: Thank you, operator. Good evening, and good morning, everyone. Welcome to Li Auto's Second Quarter 2026 Earnings Conference Call. The company's financial and operating results were published in a press release earlier today and were posted on the company's IR website. On today's call, we will have our Chairman and CEO, Mr. Xiang Li; and our CFO, Mr. Johnny Tie Li, to begin with prepared remarks. Our President, Mr. Donghui Ma; and CTO, Mr. Yan Xie, will join for the Q&A discussion. Before we continue, please be reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding risks and uncertainties is included in certain company filings with the SEC and the Stock Exchange of Hong Kong Limited. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that Li Auto's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to Li Auto's disclosure documents on the IR section of our website, which contain a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures. Our CEO will start his remarks in Chinese. There will be English translation after he finishes all his remarks. With that, I will now turn the call over to our CEO, Mr. Xiang Li. Please go ahead.
Xiang Li: [Interpreted] Hi, everyone. This is Li Xiang, and thank you for joining our earnings conference call today. In the first half of this year, in the midst of intense market competition and a complete product refresh, Li Auto remains the top-selling Chinese automotive brand in the RMB 200,000 and above NEV market. The continued rollout of our dual energy strategy has resulted in a healthy product mix with EREV and BEV each accounting for 50% of total sales. Since Q2, we have updated the entire Li L-Series showcasing our latest technologies. Key updates include our in-house MACH M100 chip running MACH VLA model, 800-volt active suspension and drive-by-wire chassis, and our third-generation range extender with 5C supercharging battery. The hardware and software upgrades set new standards for the technology and user experience once again. Turning over to our BEV lineup. The Li i6 has been one of our top 3 selling models priced over RMB 200,000 for 6 …
