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Beijing – Lee Auto Co., Ltd. . The company (NASDAQ: NASDAQ:), a leader in China's new energy vehicle market, reported strong financial results for the fourth quarter ended December 31, 2023, with sales of RMB 41.73 billion (58 800 million), beating the consensus estimate of RMB 39 million. 8 billion. Adjusted earnings per share (EPS) for the quarter was RMB4.23.
The strong sales growth was the main driver behind Li Auto's stock price soaring more than 7% following the announcement following a strong and optimistic market reaction.
In the fourth quarter, Li Auto reported a 136.4% year-over-year increase in total revenue and a 133.8% increase in auto sales to RMB40.38 billion ($5.69 billion). The company's vehicle margin improved to 22.7% from 20.0% in the fourth quarter of 2022, contributing to gross margin of 23.5% compared to 20.2% in the same period last year.
Commenting on the company's performance, Chairman and CEO Xiang Li said, “Deliveries for the year totaled 376,030 units, an increase of 182.2%, making it the largest among NEVs priced above RMB 300,000 in China. It has become the best-selling brand.”
He attributed the strong performance to the expansion of the company's size, advances in research and development, and improvements in operational efficiency.
Looking ahead, Li Auto provides guidance for Q1 2024 and expects vehicle deliveries to be between 100,000 and 103,000 vehicles, which represents a significant increase from Q1 2023 . However, his 2024 Q1 revenue forecast for the company is set at between his RMB31. 25 billion ($4.4 billion) and RMB 32.19 billion ($4.53 billion), falling short of the consensus estimate of RMB 36.37 billion.
Chief Financial Officer Tie Li noted that record-high deliveries boosted fourth-quarter revenue, and the company's financial health was healthy with full-year net profit reaching RMB 11.81 billion. expressed confidence. He emphasized that the company's profitability and strong capital reserves will support further research and development and business expansion in 2024.
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