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Li Auto (LI) swings from profit to Q2 loss as margins slide

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(Neutral)
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Form Type
6-K

Rhea-AI Filing Summary

Li Auto Inc. (LI) reported unaudited second-quarter 2026 results showing lower year-on-year revenue and profit but sequential operational improvement. Total revenues were RMB25.7 billion (US$3.8 billion), down 15.1% year over year but up 11.7% from the first quarter. Vehicle deliveries reached 98,330 units amid what management described as intense market competition and a major model refresh cycle.

Gross profit was RMB2.84 billion, with gross margin of 11.0%, compared with 20.1% a year earlier and 7.9% in the prior quarter, helped by the launch of the all-new Li L9. The company recorded a net loss of RMB1.71 billion, versus net income of RMB1.10 billion a year ago and a net loss of RMB2.28 billion in the first quarter. Free cash flow was negative RMB1.30 billion, a substantial improvement from negative RMB7.39 billion in the prior quarter.

Management highlighted completion of upgrades to the Li L series, ongoing refresh of its BEV lineup, and what it described as robust orders for the new Li L6. The CFO pointed to expected further gross margin expansion in the second half of 2026 and gradual bottom-line improvement, supported by product mix optimization, refreshed BEV models, and continued cost discipline. The company also referenced a US$1.0 billion share repurchase program and reiterated its focus on product innovation, in-house technologies, and global expansion.

Positive

  • Free cash flow improved to negative RMB1.30 billion from negative RMB7.39 billion in Q1 2026 and negative RMB3.84 billion a year earlier, indicating a much smaller cash outflow in the quarter.
  • Gross margin rose sequentially to 11.0% from 7.9% in Q1 2026, supported by the launch of the all-new Li L9 and product mix changes.
  • The company cited a US$1.0 billion share repurchase program, signaling a commitment to returning capital using its balance sheet capacity.
  • Quarterly revenues grew 11.7% versus Q1 2026 to RMB25.7 billion, reflecting sequential recovery from the prior quarter’s weaker sales.

Negative

  • Total revenues declined 15.1% year over year to RMB25.7 billion, reflecting softer demand compared with the same quarter in 2025.
  • Net results swung from profit to loss: net loss was RMB1.71 billion versus net income of RMB1.10 billion in Q2 2025, with non-GAAP net loss at RMB1.50 billion.
  • Gross margin compressed sharply year over year to 11.0% from 20.1% in Q2 2025, indicating lower profitability per vehicle despite sequential improvement.
  • Vehicle deliveries were 98,330, down from 111,074 in Q2 2025 and 158,696 in Q4 2024, highlighting a decline from prior peaks during the refresh cycle.

Filing Explained

At June 30, 2026, current assets were RMB98,469,987 thousand versus RMB54,477,556 thousand of current liabilities, with RMB65,961,615 thousand in total equity.

At June 30, 2026, Li Auto reported cash and cash equivalents of RMB40,117,782 thousand and time deposits and short-term investments of RMB45,474,274 thousand, alongside total liabilities of RMB74,717,985 thousand.

Current assets were RMB98,469,987 thousand versus current liabilities of RMB54,477,556 thousand, while total shareholders’ equity was RMB65,961,615 thousand.

The balance sheet separately reports short-term borrowings of RMB286,205 thousand and long-term borrowings of RMB6,863,999 thousand, distinguishing the disclosed borrowing categories by maturity.

Total revenues RMB25,666.9 million For the three months ended June 30, 2026; down 15.1% YoY, up 11.7% QoQ
Vehicle deliveries 98,330 vehicles For the second quarter of 2026
Gross margin 11.0% Q2 2026; compared with 20.1% in Q2 2025 and 7.9% in Q1 2026
Net income/(loss) RMB(1,705.3) million For the three months ended June 30, 2026; net loss vs RMB1,096.9 million profit a year earlier
Free cash flow (non-GAAP) RMB(1,300.8) million Q2 2026; versus RMB(7,388.3) million in Q1 2026 and RMB(3,841.8) million in Q2 2025
Cash, cash equivalents and restricted cash RMB40,132,564 thousand Balance at June 30, 2026
Diluted net earnings/(loss) per ADS RMB(1.69) For Q2 2026 attributable to ordinary shareholders
Non-GAAP diluted net earnings/(loss) per ADS RMB(1.49) For Q2 2026 attributable to ordinary shareholders
vehicle margin financial
"Vehicle margin is the margin of vehicle sales, which is calculated based"
free cash flow financial
"Free cash flow represents operating cash flow less capital expenditures"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
non-GAAP financial
"The Company uses non-GAAP financial measures, such as non-GAAP cost of sales"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
extended-range electric vehicles technical
"Li Auto is a pioneer in successfully commercializing extended-range electric vehicles"
ADS financial
"Each ADS represents two Class A ordinary shares"
Ads are paid promotional messages a company places across media — online, on TV, in print, or on social platforms — to attract customers, explain products, or shape public perception. For investors, ads matter because they drive sales growth, affect how much a company must spend to win customers, and influence brand strength and long-term value. Ads can also create regulatory or reputational risk if claims are misleading, which can affect profits and stock price.
forward-looking statements regulatory
"This press release contains statements that may constitute “forward-looking” statements"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Total revenues RMB25,666.9 million Down 15.1% year over year; up 11.7% quarter over quarter
Net income/(loss) RMB(1,705.3) million Swing from RMB1,096.9 million profit in Q2 2025; loss narrowed vs RMB(2,276.0) million in Q1 2026
Gross margin 11.0% Down from 20.1% a year earlier; up from 7.9% in Q1 2026
Vehicle deliveries 98,330 vehicles Down from 111,074 in Q2 2025; slightly above 95,142 in Q1 2026
Free cash flow RMB(1,300.8) million Improved from RMB(7,388.3) million in Q1 2026 and RMB(3,841.8) million in Q2 2025
Guidance

For the third quarter of 2026, the company stated expectations for further gross margin expansion and gradual bottom-line improvement, reflecting its current and preliminary views, which are subject to change.

FAQ

How much revenue did Li Auto (LI) generate in Q2 2026?
Li Auto generated RMB25.67 billion (US$3.78 billion) in total revenues in Q2 2026, down 15.1% year over year but up 11.7% from Q1 2026, mainly driven by vehicle sales of RMB24.07 billion and other sales and services of RMB1.60 billion.

What was Li Auto’s (LI) profitability in Q2 2026?
Li Auto reported a net loss of RMB1.71 billion in Q2 2026, compared with net income of RMB1.10 billion a year earlier and a net loss of RMB2.28 billion in Q1 2026. Non-GAAP net loss was RMB1.50 billion after excluding share-based compensation.

How many vehicles did Li Auto (LI) deliver in Q2 2026?
Li Auto delivered 98,330 vehicles in Q2 2026. This compares with 95,142 deliveries in Q1 2026 and 111,074 deliveries in Q2 2025, reflecting modest sequential growth but a decline versus the same period last year.

What was Li Auto’s (LI) gross margin in Q2 2026?
Gross margin in Q2 2026 was 11.0%, up from 7.9% in Q1 2026 but down from 20.1% in Q2 2025. Gross profit reached RMB2.84 billion, benefiting sequentially from the launch of the all-new Li L9 and changes in product mix.

How did Li Auto’s (LI) free cash flow change in Q2 2026?
Free cash flow was negative RMB1.30 billion in Q2 2026, compared with negative RMB7.39 billion in Q1 2026 and negative RMB3.84 billion in Q2 2025, indicating a significantly reduced cash outflow versus prior periods.

What is the size of Li Auto’s (LI) share repurchase program?
Li Auto referenced a US$1.0 billion share repurchase program. The disclosure associates this program with the company’s broader capital allocation approach alongside its focus on growth, profitability, and long-term competitiveness.

What guidance did Li Auto (LI) give for the second half of 2026?
Management stated it anticipates further margin expansion in the second half of 2026 as product mix optimizes, with higher sales from the Livis trim and refreshed BEV models, and expects the bottom line to improve gradually alongside continued operational efficiency efforts.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 6-K

 

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2026

 

Commission File Number: 001-39407

 

 

 

Li Auto Inc.

(Registrant’s Name)

 

 

 

11 Wenliang Street

Shunyi District, Beijing 101399

People’s Republic of China

(Address of Principal Executive Offices)

 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F x      Form 40-F o

 

 

 

 

 

EXHIBIT INDEX

 

Exhibit No.

  

Description

99.1   Press Release—Li Auto Inc. Announces Unaudited Second Quarter 2026 Financial Results
99.2   Announcement—Interim Results Announcement for the Six Months Ended June 30, 2026

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  

  Li Auto Inc.
       
       
  By  

/s/ Tie Li

  Name : Tie Li
  Title : Director and Chief Financial Officer

 

 

Date: August 26, 2026

 

 

 

Exhibit 99.1

 

 

 

Li Auto Inc. Announces Unaudited Second Quarter 2026 Financial Results

 

Quarterly total revenues reached RMB25.7 billion (US$3.8 billion)1

Quarterly deliveries were 98,330 vehicles

 

BEIJING, China, August 26, 2026 — Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq: LI; HKEX: 2015), a leader in China’s new energy vehicle market, today announced its unaudited financial results for the quarter ended June 30, 2026.

 

Operating Highlights for the Second Quarter of 2026

 

·Total deliveries for the second quarter of 2026 were 98,330 vehicles, representing an 11.5% year-over-year decrease.

 

    2026 Q2   2026 Q1   2025 Q4   2025 Q3  
Deliveries   98,330   95,142   109,194   93,211  
                   
    2025 Q2   2025 Q1   2024 Q4   2024 Q3  
Deliveries   111,074   92,864   158,696   152,831  

 

·As of June 30, 2026, in China, the Company had 495 retail stores in 160 cities, 536 servicing centers and Li Auto-authorized servicing shops operating in 220 cities, and 4,097 super charging stations in operation equipped with 22,593 charging stalls.

 

Financial Highlights for the Second Quarter of 2026

 

·Vehicle sales were RMB24.1 billion (US$3.5 billion) in the second quarter of 2026, representing a decrease of 16.7% from RMB28.9 billion in the second quarter of 2025 and an increase of 11.8% from RMB21.5 billion in the first quarter of 2026.

 

·Vehicle margin2 was 9.4% in the second quarter of 2026, compared with 19.4% in the second quarter of 2025 and 6.1% in the first quarter of 2026.

 

·Total revenues were RMB25.7 billion (US$3.8 billion) in the second quarter of 2026, representing a decrease of 15.1% from RMB30.2 billion in the second quarter of 2025 and an increase of 11.7% from RMB23.0 billion in the first quarter of 2026.

 

·Gross profit was RMB2.8 billion (US$418.0 million) in the second quarter of 2026, representing a decrease of 53.3% from RMB6.1 billion in the second quarter of 2025 and an increase of 56.9% from RMB1.8 billion in the first quarter of 2026.

 

·Gross margin was 11.0% in the second quarter of 2026, compared with 20.1% in the second quarter of 2025 and 7.9% in the first quarter of 2026.

 

·Operating expenses were RMB5.1 billion (US$757.1 million) in the second quarter of 2026, representing a decrease of 2.0% from RMB5.2 billion in the second quarter of 2025 and an increase of 6.9% from RMB4.8 billion in the first quarter of 2026.

 

 

1 All translations from Renminbi (“RMB”) to U.S. dollars (“US$”) are made at a rate of RMB6.7851 to US$1.00, the exchange rate on June 30, 2026 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

2 Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of sales derived from vehicle sales only.

 

1

 

 

·Loss from operations was RMB2.3 billion (US$339.1 million) in the second quarter of 2026, compared with RMB827.0 million income from operations in the second quarter of 2025 and RMB3.0 billion loss from operations in the first quarter of 2026.

 

·Operating margin was negative 9.0% in the second quarter of 2026, compared with 2.7% in the second quarter of 2025 and negative 13.0% in the first quarter of 2026.

 

·Net loss was RMB1.7 billion (US$251.3 million) in the second quarter of 2026, compared with RMB1.1 billion net income in the second quarter of 2025 and RMB2.3 billion net loss in the first quarter of 2026. Non-GAAP net loss3 was RMB1.5 billion (US$220.9 million) in the second quarter of 2026, compared with RMB1.5 billion non-GAAP net income in the second quarter of 2025 and RMB2.1 billion non-GAAP net loss in the first quarter of 2026.

 

·Diluted net loss per ADS4 attributable to ordinary shareholders was RMB1.69 (US$0.25) in the second quarter of 2026, compared with RMB1.03 diluted net earnings per ADS attributable to ordinary shareholders in the second quarter of 2025 and RMB2.26 diluted net loss per ADS attributable to ordinary shareholders in the first quarter of 2026. Non-GAAP diluted net loss per ADS attributable to ordinary shareholders was RMB1.49 (US$0.22) in the second quarter of 2026, compared with RMB1.37 non-GAAP diluted net earnings per ADS attributable to ordinary shareholders in the second quarter of 2025 and RMB2.09 non-GAAP diluted net loss per ADS attributable to ordinary shareholders in the first quarter of 2026.

 

·Net cash provided by operating activities was RMB15.0 million (US$2.2 million) in the second quarter of 2026, compared with RMB3.0 billion net cash used in operating activities in the second quarter of 2025 and RMB6.1 billion net cash used in operating activities in the first quarter of 2026.

 

·Free cash flow5 was negative RMB1.3 billion (US$191.7 million) in the second quarter of 2026, compared with negative RMB3.8 billion in the second quarter of 2025 and negative RMB7.4 billion in the first quarter of 2026.

 

 

3 The Company’s non-GAAP financial measures exclude share-based compensation expenses. See “Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results” set forth at the end of this press release.

 

4 Each ADS represents two Class A ordinary shares.

 

5 Free cash flow represents operating cash flow less capital expenditures, which is considered a non-GAAP financial measure.

 

2

 

 

Key Financial Results

 

(in millions, except for percentages and per ADS data)

 

   For the Three Months Ended   % Change6 
  

June 30,

2025

  

March 31,

2026

  

June 30,

2026

   YoY   QoQ 
   RMB   RMB   RMB         
Vehicle sales   28,885.1    21,533.2    24,066.5    (16.7)%   11.8%
Vehicle margin   19.4%   6.1%   9.4%   (10.0)pts   3.3pts
                          
Total revenues   30,245.6    22,982.9    25,666.9    (15.1)%   11.7%
Gross profit   6,067.0    1,808.0    2,836.1    (53.3)%   56.9%
Gross margin   20.1%   7.9%   11.0%   (9.1)pts   3.1pts
                          
Operating expenses   (5,240.0)   (4,806.8)   (5,136.9)   (2.0)%   6.9%
Income/(Loss) from operations   827.0    (2,998.8)   (2,300.9)   N/A    (23.3)%
Operating margin   2.7%   (13.0)%   (9.0)%   (11.7)pts   4.0pts
                          
Net income/(loss)   1,096.9    (2,276.0)   (1,705.3)   N/A    (25.1)%
Non-GAAP net income/(loss)   1,468.2    (2,108.0)   (1,498.5)   N/A    (28.9)%
                          
Diluted net earnings/(loss) per ADS attributable to ordinary shareholders   1.03    (2.26)   (1.69)   

N/A

    (25.2)%
Non-GAAP diluted net earnings/(loss) per ADS attributable to ordinary shareholders   1.37    (2.09)   (1.49)   

N/A

    (28.7)%
                          
Net cash (used in)/provided by operating activities   (3,036.2)   (6,091.0)   15.0    N/A    N/A 
Free cash flow (non-GAAP)   (3,841.8)   (7,388.3)   (1,300.8)   (66.1)%   (82.4)%
                          

 

 

6 Except for vehicle margin, gross margin, and operating margin, where absolute changes instead of percentage changes are presented.

 

3

 

 

Recent Developments

 

Delivery Update

 

·In July 2026, the Company delivered 30,468 vehicles. As of July 31, 2026, in China, the Company had 490 retail stores in 159 cities, 536 servicing centers and Li Auto-authorized servicing shops operating in 219 cities, and 4,141 super charging stations in operation equipped with 22,841 charging stalls.

 

Product Refresh

 

·In June 2026, the Company launched and commenced deliveries of its all-new Li L8. This model is available in two trims: Ultra and Livis. Both trims come standard with four zero-gravity seats, a 72.7 kWh 5C battery, Li Auto’s third-generation range extender, and the Qualcomm Snapdragon 8797 chip, alongside steer-by-wire and rear-wheel steering. Li L8 Ultra features Li Auto’s third-generation dual-chamber, dual-valve Magic Carpet Air Suspension and a proprietary MACH M100 chip, while Li L8 Livis features a proprietary 800V active suspension system, electro-mechanical brake, and dual MACH M100 chips. The Li L8 Ultra and Li L8 Livis are priced at RMB369,800 and RMB429,800, respectively.

 

·In July 2026, the Company launched and commenced deliveries of the new Li L6. The model features a new-generation all-aluminum suspension and dual-valve CDC for its chassis, the MACH M100 chip and fully upgraded perception hardware for its assisted driving system, and an EREV-dedicated 51 kWh LFP super charging battery. The new Li L6 is priced at RMB249,800.

 

Livis Day

 

·In June 2026, the Company hosted Livis Day, a launch event for software and embodied AI, systematically showcasing Li Auto’s new-generation cabin interaction experience alongside a series of proprietary breakthroughs. These included the language intelligence models MACH Mind-Pro and MACH Mind-Edge, the machine intelligence model MACH VLA, and the world’s first dynamic dataflow AI chip, the MACH M100.

 

US$1.0 Billion Share Repurchase Program

 

·Pursuant to its US$1.0 billion share repurchase program announced on March 24, 2026, the Company repurchased a total of 41,232,100 Class A ordinary shares at an aggregate consideration of HK$2.1 billion on the HKEX and a total of 9,487,026 ADSs (representing 18,974,052 Class A ordinary shares) at an aggregate consideration of US$150.9 million on the Nasdaq in the second quarter of 2026. As of the date of this press release, the Company has repurchased a total of approximately 91.7 million Class A ordinary shares (including approximately 23.7 million ADSs) for an aggregate consideration of approximately US$631.5 million.

 

CEO and CFO Comments

 

Mr. Xiang Li, chairman and chief executive officer of Li Auto, commented, “Amid intense market competition and a major model refresh cycle, Li Auto remained the best-selling domestic automotive brand in China’s RMB200,000-and-above NEV market in the first half of 2026. We have completed the upgrade of Li L series and are now refreshing our BEV lineup. Notably, the new Li L6 generated robust order flow, and we are confident that it will carry on the success of the Li i6 and reinforce our leading position in the RMB200,000-to-300,000 SUV market. Our enhanced product portfolio positions us well for growth. Backed by our unwavering user-centric product philosophy and leading in-house technologies, we will continue to pursue product excellence, expand our global footprint, and forge a sustainable path toward long-term value creation.”

 

Mr. Tie Li, chief financial officer of Li Auto, added, “In the second quarter of 2026, our gross margin improved sequentially to 11.0%, benefiting from the launch of the all-new Li L9. We anticipate further margin expansion for the second half of the year as our product mix optimizes, with a higher sales contribution from the Livis trim and the launch of refreshed BEV models and Li i9. Coupled with a sustained focus on operational efficiency, we expect our bottom-line to improve gradually. Balancing growth and profitability through disciplined capital allocation, we will steadfastly execute our core strategies in product innovation, technological advancement, and global expansion to secure our future competitiveness.”

 

4

 

 

Financial Results for the Second Quarter of 2026

 

Revenues

 

·Total revenues were RMB25.7 billion (US$3.8 billion) in the second quarter of 2026, representing a decrease of 15.1% from RMB30.2 billion in the second quarter of 2025 and an increase of 11.7% from RMB23.0 billion in the first quarter of 2026.

 

·Vehicle sales were RMB24.1 billion (US$3.5 billion) in the second quarter of 2026, representing a decrease of 16.7% from RMB28.9 billion in the second quarter of 2025 and an increase of 11.8% from RMB21.5 billion in the first quarter of 2026. The decrease in revenue from vehicle sales over the second quarter of 2025 was primarily due to the decrease in vehicle deliveries and a lower average selling price due to a different product mix. The increase in revenue from vehicle sales over the first quarter of 2026 was primarily attributable to a higher average selling price due to a different product mix and the increase in vehicle deliveries.

 

·Other sales and services were RMB1.6 billion (US$235.9 million) in the second quarter of 2026, representing an increase of 17.6% from RMB1.4 billion in the second quarter of 2025 and an increase of 10.4% from RMB1.4 billion in the first quarter of 2026. The increase in revenue from other sales and services over the second quarter of 2025 and the first quarter of 2026 was mainly due to increased provision of services and sales of accessories, which is in line with higher accumulated vehicle sales.

 

Cost of Sales and Gross Margin

 

·Cost of sales was RMB22.8 billion (US$3.4 billion) in the second quarter of 2026, representing a decrease of 5.6% from RMB24.2 billion in the second quarter of 2025 and an increase of 7.8% from RMB21.2 billion in the first quarter of 2026. The decrease in cost of sales over the second quarter of 2025 was primarily due to the decrease in vehicle deliveries. The increase in cost of sales over the first quarter of 2026 was primarily attributable to a higher average cost of sales due to a different product mix and the increase in vehicle deliveries.

 

·Gross profit was RMB2.8 billion (US$418.0 million) in the second quarter of 2026, representing a decrease of 53.3% from RMB6.1 billion in the second quarter of 2025 and an increase of 56.9% from RMB1.8 billion in the first quarter of 2026.

 

·Vehicle margin was 9.4% in the second quarter of 2026, compared with 19.4% in the second quarter of 2025 and 6.1% in the first quarter of 2026. The change in vehicle margin over the second quarter of 2025 and the first quarter of 2026 was mainly attributable to a different product mix.

 

·Gross margin was 11.0% in the second quarter of 2026, compared with 20.1% in the second quarter of 2025 and 7.9% in the first quarter of 2026. The change in gross margin over the second quarter of 2025 and the first quarter of 2026 was mainly due to the change in vehicle margin.

 

Operating Expenses

 

·Operating expenses were RMB5.1 billion (US$757.1 million) in the second quarter of 2026, representing a decrease of 2.0% from RMB5.2 billion in the second quarter of 2025 and an increase of 6.9% from RMB4.8 billion in the first quarter of 2026.

 

·Research and development expenses were RMB2.8 billion (US$409.1 million) in the second quarter of 2026, representing a decrease of 1.2% from RMB2.8 billion in the second quarter of 2025 and an increase of 2.0% from RMB2.7 billion in the first quarter of 2026. Research and development expenses remained relatively stable compared with the second quarter of 2025 and the first quarter of 2026.

 

·Selling, general and administrative expenses were RMB2.3 billion (US$335.7 million) in the second quarter of 2026, representing a decrease of 16.2% from RMB2.7 billion in the second quarter of 2025 and an increase of 11.2% from RMB2.0 billion in the first quarter of 2026. The decrease in selling, general and administrative expenses over the second quarter of 2025 was primarily due to decreased employee compensation. The increase in selling, general and administrative expenses over the first quarter of 2026 was primarily due to increased expenses related to marketing and promotional activities.

 

5

 

 

Income/(Loss) from Operations

 

·Loss from operations was RMB2.3 billion (US$339.1 million) in the second quarter of 2026, compared with RMB827.0 million income from operations in the second quarter of 2025 and RMB3.0 billion loss from operations in the first quarter of 2026. Operating margin was negative 9.0% in the second quarter of 2026, compared with 2.7% in the second quarter of 2025 and negative 13.0% in the first quarter of 2026. Non-GAAP loss from operations was RMB2.1 billion (US$308.6 million) in the second quarter of 2026, compared with RMB1.2 billion non-GAAP income from operations in the second quarter of 2025 and RMB2.8 billion non-GAAP loss from operations in the first quarter of 2026.

 

Net Income/(Loss) and Net Earnings/(Loss) Per Share

 

·Net loss was RMB1.7 billion (US$251.3 million) in the second quarter of 2026, compared with RMB1.1 billion net income in the second quarter of 2025 and RMB2.3 billion net loss in the first quarter of 2026. Non-GAAP net loss was RMB1.5 billion (US$220.9 million) in the second quarter of 2026, compared with RMB1.5 billion non-GAAP net income in the second quarter of 2025 and RMB2.1 billion non-GAAP net loss in the first quarter of 2026.

 

·Basic and diluted net loss per ADS attributable to ordinary shareholders were both RMB1.69 (US$0.25) in the second quarter of 2026, compared with RMB1.09 and RMB1.03 basic and diluted net earnings per ADS attributable to ordinary shareholders in the second quarter of 2025, respectively, and RMB2.26 basic and diluted net loss per ADS attributable to ordinary shareholders in the first quarter of 2026. Non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders were both RMB1.49 (US$0.22) in the second quarter of 2026, compared with RMB1.46 and RMB1.37 non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders in the second quarter of 2025, respectively, and RMB2.09 non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders in the first quarter of 2026.

 

Cash Position, Operating Cash Flow and Free Cash Flow

 

·Cash position7 was RMB87.5 billion (US$12.9 billion) as of June 30, 2026.

 

·Net cash provided by operating activities was RMB15.0 million (US$2.2 million) in the second quarter of 2026, compared with RMB3.0 billion net cash used in operating activities in the second quarter of 2025 and RMB6.1 billion net cash used in operating activities in the first quarter of 2026. The change in net cash provided by operating activities over the second quarter of 2025 and the first quarter of 2026 was mainly due to the timing differences between cash received from customers and payments for inventory purchases.

 

·Free cash flow was negative RMB1.3 billion (US$191.7 million) in the second quarter of 2026, compared with negative RMB3.8 billion in the second quarter of 2025 and negative RMB7.4 billion in the first quarter of 2026.

 

 

7 Cash position includes cash and cash equivalents, restricted cash, time deposits and short-term investments, and long-term time deposits and financial instruments included in long-term investments.

 

6

 

 

Business Outlook

 

For the third quarter of 2026, the Company expects:

 

·Deliveries of vehicles to be between 95,000 and 100,000 vehicles, representing a year-over-year increase of 1.9% to 7.3%.

 

·Total revenues to be between RMB26.6 billion (US$3.9 billion) and RMB28.0 billion (US$4.1 billion), representing a year-over-year change of -2.8% to +2.3%.

 

This business outlook reflects the Company’s current and preliminary views on its business situation and market conditions, which are subject to change.

 

Conference Call

 

Management will hold a conference call at 8:00 a.m. U.S. Eastern Time on Wednesday, August 26, 2026 (8:00 p.m. Beijing/Hong Kong Time on August 26, 2026) to discuss financial results and answer questions from investors and analysts.

 

For participants who wish to join the call, please complete online registration using the link provided below prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, passcode, and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference instantly.

 

Participant Online Registration: https://s1.c-conf.com/diamondpass/10056444-vrf1u8.html

 

A replay of the conference call will be accessible through September 2, 2026, by dialing the following numbers:

 

United States: +1-855-883-1031
Chinese Mainland: +86-400-1209-216
Hong Kong, China: +852-800-930-639
International: +61-7-3107-6325
Replay PIN: 10056444

 

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.lixiang.com.

 

7

 

 

Non-GAAP Financial Measures

 

The Company uses non-GAAP financial measures, such as non-GAAP cost of sales, non-GAAP research and development expenses, non-GAAP selling, general and administrative expenses, non-GAAP income/(loss) from operations, non-GAAP net income/(loss), non-GAAP net income/(loss) attributable to ordinary shareholders, non-GAAP basic and diluted net earnings/(loss) per ADS attributable to ordinary shareholders, non-GAAP basic and diluted net earnings/(loss) per share attributable to ordinary shareholders and free cash flow, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

 

The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for financial information prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

 

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

 

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results” set forth at the end of this press release.

 

Exchange Rate Information

 

This press release contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars and from U.S. dollars to Renminbi are made at a rate of RMB6.7851 to US$1.00, the exchange rate on June 30, 2026, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

 

About Li Auto Inc.

 

Li Auto Inc. is a leader in China’s new energy vehicle market. The Company designs, develops, manufactures, and sells premium smart electric vehicles. Its mission is: Be Proactive, Change the World. Through innovations in product, technology, and business model, the Company provides families with safe, convenient, and comfortable products and services. Li Auto is a pioneer in successfully commercializing extended-range electric vehicles in China. While firmly advancing along this technological route, it builds platforms for battery electric vehicles in parallel. The Company leverages technology to create value for users. It concentrates its in-house development efforts on proprietary range extension systems, innovative electric vehicle technologies, and smart vehicle solutions. The Company started volume production in November 2019. It offers high-tech flagship family MPVs, Li L series extended-range electric SUVs, and Li i series battery electric SUVs. The Company will continue to expand its product lineup to target a broader user base.

 

For more information, please visit: https://ir.lixiang.com.

 

8

 

 

Safe Harbor Statement

 

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “targets,” “likely to,” “challenges,” and similar statements. Li Auto may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “HKEX”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about Li Auto’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Li Auto’s strategies, future business development, and financial condition and results of operations; Li Auto’s limited operating history; risks associated with extended-range electric vehicles and high-power charging battery electric vehicles; Li Auto’s ability to develop, manufacture, and deliver vehicles of high quality and appeal to customers; Li Auto’s ability to generate positive cash flow and profits; product defects or any other failure of vehicles to perform as expected; Li Auto’s ability to compete successfully; Li Auto’s ability to build its brand and withstand negative publicity; cancellation of orders for Li Auto’s vehicles; Li Auto’s ability to develop new vehicles; and changes in consumer demand and government incentives, subsidies, or other favorable government policies. Further information regarding these and other risks is included in Li Auto’s filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and Li Auto does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

For investor and media inquiries, please contact:

 

Li Auto Inc.

Investor Relations

Email: ir@lixiang.com

 

Christensen Advisory

Tel: +86-10-5900-1548

Email: Li@christensencomms.com

 

9

 

 

Li Auto Inc.

Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss)

 

(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)

 

   For the Three Months Ended 
   June 30, 2025   March 31, 2026   June 30, 2026   June 30, 2026 
   RMB   RMB   RMB   US$ 
Revenues:                    
Vehicle sales   28,885,133    21,533,182    24,066,488    3,546,961 
Other sales and services   1,360,480    1,449,729    1,600,402    235,870 
Total revenues   30,245,613    22,982,911    25,666,890    3,782,831 
Cost of sales:                    
Vehicle sales   (23,273,292)   (20,225,885)   (21,795,419)   (3,212,247)
Other sales and services   (905,352)   (948,981)   (1,035,416)   (152,601)
Total cost of sales   (24,178,644)   (21,174,866)   (22,830,835)   (3,364,848)
Gross profit   6,066,969    1,808,045    2,836,055    417,983 
Operating expenses:                    
Research and development expenses   (2,810,170)   (2,722,159)   (2,775,633)   (409,078)
Selling, general and administrative expenses   (2,717,761)   (2,049,203)   (2,278,044)   (335,742)
Other operating income/(expense), net   287,980    (35,473)   (83,228)   (12,266)
Total operating expenses   (5,239,951)   (4,806,835)   (5,136,905)   (757,086)
Income/(Loss) from operations   827,018    (2,998,790)   (2,300,850)   (339,103)
Other (expense)/income:                    
Interest expense   (49,776)   (40,658)   (116,248)   (17,133)
Interest income and investment income, net   496,454    394,020    455,033    67,064 
Others, net   15,288    44,248    13,199    1,946 
Income/(Loss) before income tax   1,288,984    (2,601,180)   (1,948,866)   (287,226)
Income tax (expense)/benefit   (192,048)   325,148    243,609    35,904 
Net income/(loss)   1,096,936    (2,276,032)   (1,705,257)   (251,322)
Less: Net income/(loss) attributable to noncontrolling interests   4,365    13,499    (1,076)   (159)
Net income/(loss) attributable to ordinary shareholders of Li Auto Inc.   1,092,571    (2,289,531)   (1,704,181)   (251,163)
                     
Net income/(loss)   1,096,936    (2,276,032)   (1,705,257)   (251,322)
Other comprehensive loss, net of tax                    
Foreign currency translation adjustment, net of nil tax   (173,612)   (161,404)   (273,671)   (40,334)
Total other comprehensive loss, net of tax   (173,612)   (161,404)   (273,671)   (40,334)
Total comprehensive income/(loss)   923,324    (2,437,436)   (1,978,928)   (291,656)
Less: Comprehensive income/(loss) attributable to noncontrolling interests   4,365    13,499    (1,076)   (159)
Comprehensive income/(loss) attributable to ordinary shareholders of Li Auto Inc.   918,959    (2,450,935)   (1,977,852)   (291,497)
Weighted average number of ADSs                    
Basic   1,005,986,033    1,013,814,503    1,007,098,886    1,007,098,886 
Diluted   1,071,261,046    1,013,814,503    1,007,098,886    1,007,098,886 
Net earnings/(loss) per ADS attributable to ordinary shareholders                    
Basic   1.09    (2.26)   (1.69)   (0.25)
Diluted   1.03    (2.26)   (1.69)   (0.25)
Weighted average number of ordinary shares                    
Basic   2,011,972,066    2,027,629,006    2,014,197,771    2,014,197,771 
Diluted   2,142,522,091    2,027,629,006    2,014,197,771    2,014,197,771 
Net earnings/(loss) per share attributable to ordinary shareholders                    
Basic   0.54    (1.13)   (0.85)   (0.12)
Diluted   0.51    (1.13)   (0.85)   (0.12)

 

10

 

 

Li Auto Inc.

Unaudited Condensed Consolidated Balance Sheets

 

(All amounts in thousands)

 

   As of 
   December 31, 2025   June 30, 2026   June 30, 2026 
   RMB   RMB   US$ 
ASSETS               
Current assets:               
Cash and cash equivalents   56,691,765    40,117,782    5,912,629 
Restricted cash   216,314    14,782    2,179 
Time deposits and short-term investments   44,331,407    45,474,274    6,702,079 
Trade receivable   119,823    206,592    30,448 
Inventories   8,752,439    8,333,701    1,228,236 
Prepayments and other current assets   5,174,246    4,322,856    637,110 
Total current assets   115,285,994    98,469,987    14,512,681 
Non-current assets:               
Long-term investments   848,672    2,976,994    438,755 
Property, plant and equipment, net   22,774,938    22,893,313    3,374,057 
Operating lease right-of-use assets, net   9,099,313    7,890,346    1,162,893 
Intangible assets, net   1,191,974    1,165,561    171,782 
Goodwill   5,484    5,484    808 
Deferred tax assets   3,334,206    3,755,111    553,435 
Other non-current assets   1,755,237    3,522,804    519,197 
Total non-current assets   39,009,824    42,209,613    6,220,927 
Total assets   154,295,818    140,679,600    20,733,608 
LIABILITIES AND EQUITY               
Current liabilities:               
Short-term borrowings   6,217,745    286,205    42,181 
Trade and notes payable   40,579,219    38,756,080    5,711,939 
Amounts due to related parties   26,644    452,813    66,736 
Deferred revenue, current   1,621,429    1,208,610    178,127 
Operating lease liabilities, current   1,690,356    1,572,211    231,715 
Accruals and other current liabilities   13,412,260    12,201,637    1,798,301 
Total current liabilities   63,547,653    54,477,556    8,028,999 
Non-current liabilities:               
Long-term borrowings   3,299,203    6,863,999    1,011,628 
Deferred revenue, non-current   624,734    666,287    98,199 
Operating lease liabilities, non-current   6,258,957    5,620,164    828,310 
Finance lease liabilities, non-current   348,506    349,322    51,484 
Deferred tax liabilities   691,652    548,423    80,828 
Other non-current liabilities   6,385,370    6,192,234    912,622 
Total non-current liabilities   17,608,422    20,240,429    2,983,071 
Total liabilities   81,156,075    74,717,985    11,012,070 
Total Li Auto Inc. shareholders’ equity   72,619,255    65,428,704    9,642,997 
Noncontrolling interests   520,488    532,911    78,541 
Total shareholders’ equity   73,139,743    65,961,615    9,721,538 
Total liabilities and shareholders’ equity   154,295,818    140,679,600    20,733,608 

 

11

 

 

Li Auto Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

 

(All amounts in thousands)

 

   For the Three Months Ended 
  

June 30,

2025

  

March 31,

2026

  

June 30,

2026

  

June 30,

2026

 
   RMB   RMB   RMB   US$ 
Net cash (used in)/provided by operating activities   (3,036,219)   (6,090,994)   15,025    2,214 
Net cash (used in)/provided by investing activities   (226,724)   (8,181,439)   2,919,510    430,283 
Net cash (used in)/provided by financing activities   (70,037)   337,303    (5,487,924)   (808,820)
Effect of exchange rate changes on cash, cash equivalents and restricted cash   (108,393)   (102,382)   (184,614)   (27,209)
Net change in cash, cash equivalents and restricted cash   (3,441,373)   (14,037,512)   (2,738,003)   (403,532)
Cash, cash equivalents and restricted cash at beginning of period   53,238,339    56,908,079    42,870,567    6,318,340 
Cash, cash equivalents and restricted cash at end of period   49,796,966    42,870,567    40,132,564    5,914,808 
                     
Net cash (used in)/provided by operating activities   (3,036,219)   (6,090,994)   15,025    2,214 
Capital expenditures   (805,544)   (1,297,326)   (1,315,790)   (193,923)
Free cash flow (non-GAAP)   (3,841,763)   (7,388,320)   (1,300,765)   (191,709)

 

12

 

 

Li Auto Inc.

Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results

 

(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)

 

   For the Three Months Ended 
  

June 30,

2025

  

March 31,

2026

  

June 30,

2026

  

June 30,

2026

 
   RMB   RMB   RMB   US$ 
Cost of sales   (24,178,644)   (21,174,866)   (22,830,835)   (3,364,848)
Share-based compensation expenses   8,135    8,730    8,039    1,185 
Non-GAAP cost of sales   (24,170,509)   (21,166,136)   (22,822,796)   (3,363,663)
                     
Research and development expenses   (2,810,170)   (2,722,159)   (2,775,633)   (409,078)
Share-based compensation expenses   236,668    128,160    126,933    18,708 
Non-GAAP research and development expenses   (2,573,502)   (2,593,999)   (2,648,700)   (390,370)
                     
Selling, general and administrative expenses   (2,717,761)   (2,049,203)   (2,278,044)   (335,742)
Share-based compensation expenses   126,413    31,156    71,759    10,576 
Non-GAAP selling, general and administrative expenses   (2,591,348)   (2,018,047)   (2,206,285)   (325,166)
                     
Income/(Loss) from operations   827,018    (2,998,790)   (2,300,850)   (339,103)
Share-based compensation expenses   371,216    168,046    206,731    30,469 
Non-GAAP income/(loss) from operations   1,198,234    (2,830,744)   (2,094,119)   (308,634)
                     
Net income/(loss)   1,096,936    (2,276,032)   (1,705,257)   (251,322)
Share-based compensation expenses   371,216    168,046    206,731    30,469 
Non-GAAP net income/(loss)8   1,468,152    (2,107,986)   (1,498,526)   (220,853)
                     
Net income/(loss) attributable to ordinary shareholders of Li Auto Inc.   1,092,571    (2,289,531)   (1,704,181)   (251,163)
Share-based compensation expenses   371,216    168,046    206,731    30,469 
Non-GAAP net income/(loss) attributable to ordinary shareholders of Li Auto Inc.   1,463,787    (2,121,485)   (1,497,450)   (220,694)
                     
Weighted average number of ADSs                    
Basic   1,005,986,033    1,013,814,503    1,007,098,886    1,007,098,886 
Diluted   1,071,261,046    1,013,814,503    1,007,098,886    1,007,098,886 
Non-GAAP net earnings/(loss) per ADS attributable to ordinary shareholders                    
Basic   1.46    (2.09)   (1.49)   (0.22)
Diluted   1.37    (2.09)   (1.49)   (0.22)
Weighted average number of ordinary shares                    
Basic   2,011,972,066    2,027,629,006    2,014,197,771    2,014,197,771 
Diluted   2,142,522,091    2,027,629,006    2,014,197,771    2,014,197,771 
Non-GAAP net earnings/(loss) per share attributable to ordinary shareholders                    
Basic   0.73    (1.05)   (0.74)   (0.11)
Diluted   0.69    (1.05)   (0.74)   (0.11)

 

 

8 Non-GAAP items have no tax impact for all the periods presented.

 

13

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