Company Participants
Kobe Wang - Head of Capital Markets
资本市场主管
Xiang Li - Chairman and CEO
向莉 - 主席兼首席执行官
Johnny Tie Li - Chief Financial Officer
Johnny - 首席财务官
Donghui Ma - President
董辉马 - 总裁
James Liangjun Zou - Senior Vice President
周良军-高级副总裁
Conference Call Participants
Conference Call Participants
Tim Hsiao - Morgan Stanley
Yingbo Xu - CITIC Securities
卫尔的名字已经翻译过，"CITIC Securities" 这个词翻译为中信证券。
Tina Hou - Goldman Sachs
Tina Hou - 高盛
Ming Hsun Lee - Bank of America
李明勋 - 美国银行
Yuqian Ding - HSBC
Yuqian Ding - 汇丰银行
Operator
Operator
Hello, ladies and gentlemen. Thank you for standing by for Li Auto's Fourth Quarter and Full-Year 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. Today's call is being recorded.
大家好，女士们，先生们。感谢您们参加理想汽车2023年第四季度和全年业绩电话会议。 现在所有与会者都处于听取状态。 今天的通话正在录音。
I will now turn the call over to your host, Kobe Wang, the Head of Capital Markets of Li Auto. Please go ahead, Kobe.
我现在将通话转给您的主持人，Li Auto的资本市场负责人Kobe Wang。请您发言，Kobe。
Kobe Wang
Kobe Wang
Thank you, operator. Good evening, and good morning everyone. Welcome to the Li Auto's fourth quarter and full-year 2023 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.
谢谢你，接线员。晚上好，大家早上好。欢迎参加上汽李飞的2023年第四季度和全年收益电话会议。公司的财务和运营结果已于今天早些时候发布在新闻稿中，并在公司的IR网站上发布。
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 present, Mr. Donghui Ma; and the Senior VP, Mr. James Liangjun Zou will join for the Q&A discussion.
今天的电话会议上，我们将有我们的董事长兼首席执行官，先生 Xiang Li；还有我们的首席财务官，Johnny Tie Li。在准备好的发言之前，我们的总裁，Donghui Ma 先生；以及高级副总裁，James Liangjun Zou 先生，将参加问答讨论。
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 informed inherent risk 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 U.S. SEC and the Hong Kong Stock Exchange. The company does not assume any obligation to update any forward-looking statements except as required under applicable law.
在我们继续之前，请注意，今天的讨论将包含根据美国《私人证券诉讼改革法》1995年的安全港条款作出的展望性陈述。展望性陈述涉及固有风险和不确定性。因此，公司的实际结果可能与今天所表达的观点有实质性不同。有关风险和不确定性的进一步信息已包含在公司向美国证券交易委员会和香港证券交易所提交的某些文件中。公司不承担更新任何展望性陈述的义务，除非法律有规定要求。
Please also note that Li Auto's earnings press release and this conference call include discussion of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to Li Auto's disclosure document on our IR website which contains a reconciliation of unaudited non-GAAP measures to comparable GAAP measures. Our CEO will start his remarks in Chinese. There will be English translation after he finished all his remarks.
请注意，理想汽车的收益发布会以及本次电话会议涉及未经审计的美国通用会计准则财务信息，以及未经审计的非美国通用会计准则财务指标的讨论。请查阅我们IR网站上的理想汽车披露文件，其中包含未经审计非美国通用会计准则指标与可比美国通用会计准则指标之间的调和。我们的首席执行官将用中文开始他的讲话。在他完成所有讲话后将有英文翻译。
With that, I will now turn the call over to our CEO, Mr. Xiang Li. Please go ahead.
随着这一点，我现在将电话转给我们的CEO，向先生。请继续。
Xiang Li
Xiang Li
[Foreign Language]. Welcome to today's earnings conference call. 2023 was a year of accelerated growth for Li Auto. We delivered a total of 376,000 vehicles for the entire year, exceeding our target setting at the beginning -- set at the beginning of 2023 and also making us the first emerging new energy automaker in China to exceed the 300,000 annual deliveries mark.
[Chinese]. 欢迎参加今天的收益电话会议。2023年是理想汽车快速增长的一年。我们整年交付了376,000辆汽车，超出了我们在2023年初设定的目标，也使我们成为中国首家超过30万辆年度交付量的新兴新能源汽车制造商。
Our total deliveries for the fourth quarter reached 131,805 vehicles, an increase of 184.6% year-over-year. In December, we reached another significant milestone of 50,000 monthly deliveries, setting a new record for Chinese premium car brands. According to China Automotive Technology and Research Centers insurance registration data in China's NEV market of RMB200,000 and higher, Li Auto's market share increased from 10.9% in Q1 2023 to 16.0% in Q4, making us a leading Chinese automotive brand by market share, the growth will continue in 2024. I would like to take this opportunity to express our sincere gratitude to all of our family users, business partners and our team for your unwavering trust, support and tireless efforts.
我们第四季度的总交付量达到了131,805辆车，同比增长了184.6%。在12月，我们又实现了另一个重要的里程碑，每月交付量达到了50,000辆，创下了中国高端汽车品牌的新纪录。根据中国汽车技术研究中心的保险登记数据显示，在中国新能源汽车市场的售价超过人民币200,000元的领域，理想汽车的市场份额从2023年第一季度的10.9%增长到了2024年第四季度的16.0%，使我们成为市场份额领先的中国汽车品牌，增长将在2024年继续。我想借此机会向所有的家庭用户、商业伙伴和我们的团队表达最诚挚的感谢，感谢您们始终如一的信任、支持和不懈努力。
Moving on to our financial performance. Our scale expansion, effective cost control and increasing operating efficiency have continuously improved our financial performance. Q4 total revenues reached RMB41.73 billion and annual revenues surpassed RMB100 billion mark at RMB123.85 billion. Additionally, we achieved full-year profitability for the first time in 2023, recording a healthy net income of RMB11.81 billion. By the end of 2023, our cash position reached RMB103.67 billion.
转向我们的财务表现。我们的规模扩张、有效成本控制和不断提高的运营效率持续改善了我们的财务表现。第四季度总收入达到了417.3亿元人民币，全年收入突破了1000亿元人民币的大关，达到了1238.5亿元人民币。此外，我们在2023年首次实现全年盈利，录得了118.1亿元人民币的良好净利润。到2023年底，我们的现金余额达到了1036.7亿元人民币。
In 2024, the virtuous cycle of our business growth will solidify our long-term profitability, cash generation -- generating capabilities and capital base. This trajectory will further deepen our R&D efforts across products, platforms and systems, ensuring consistent delivery of exceptional products and services to our users in the long run. 2024 will be an unprecedented year of new product launches for Li Auto, beginning in March with the launch of our high-tech flagship and family MPV, Li MEGA, developed on a pure BEV platform, Li MEGA integrates the latest technological advancements in 5C BEV technologies, smart space and autonomous driving.
2024 年，公司发展的良性循环将巩固我们的长期盈利能力、现金生成能力和资本基础。这一轨迹将进一步加深我们在产品、平台和系统方面的研发工作，确保长期向用户提供优质产品和服务。 2024 年将是理想汽车的新产品发布历史上的一个空前之年，从 3 月开始，我们将推出我们的高科技旗舰和家庭多用途车型 Li MEGA，这是在纯 BEV 平台上开发的。Li MEGA 融合了最新的 5C BEV 技术、智能空间以及自动驾驶技术的进步。
We also plan to begin mass delivery of 2024 model year Li L7, L8 and L9 models starting in March. You're all welcome to tune into our Li Auto 2024 Spring product launch event, this Friday, March 1, where we'll be unveiling more exciting vehicles about Li MEGA and our 2024 model year L Series.
我们还计划自3月开始大规模交付2024年款Li L7，L8和L9车型。欢迎大家参加我们的Li Auto 2024年春季产品发布会，时间为本周五，3月1日。届时我们将发布更多关于Li MEGA和我们2024年款L系列的激动人心的车辆信息。
Furthermore, we will introduce several new models over the course of the year, including Li L6, to broaden our product lineup even further. By the end of 2024, we will have eight models on the market, featuring four EREVs and four BEV forming a highly competitive product matrix and satisfying the diverse needs of our family users.
此外，我们将在今年推出几款新产品，包括Li L6，以进一步扩大我们的产品阵容。到2024年底，我们将在市场上推出八款车型，其中四款为EREV，四款为BEV，形成一个竞争激烈的产品矩阵，满足我们家庭用户的多样化需求。
New vehicle launches are only the starting point. Since the initial delivery of our L Series, we have released over 20 over-the-year updates, operating over 700 features. Notably, the official release of our OTA 5.0 upgrades in December last year, further enhance product competitiveness of our vehicles.
新车型的推出只是一个起点。自从我们首次推出L系列以来，我们已经发布了20多个每年更新，涵盖了700多个功能。值得一提的是，去年12月我们官方发布了OTA 5.0升级，进一步增强了我们车辆的产品竞争力。
Moving to autonomous driving. With the latest release of AD Max 3.0, full scenario NOA now covers all highways and city ring roads nationwide as well as urban roads across over 110 cities. We anticipate to offer City NOA independent of AD Max in all of China by the end of the second quarter this year, and it will be delivered to all AD Max vehicles by NOA. As of today, our users have accumulated around 560 million kilometers on NOA during the 10-day Chinese New Year holiday from February 8th to 17th, over 220,000 users enjoy the convenience of NOA covering close to 50 million kilometers on NOA.
向自动驾驶迈进。随着 AD Max 3.0 的最新版本发布，全场景 NOA 现在覆盖了全国所有高速公路、环城公路以及 110 多个城市的城市道路。我们预计将在今年第二季度末前提供独立于 AD Max 的 City NOA 在中国所有地区，并且将向所有的 AD Max 车辆提供。截至今天，我们的用户在农历新年假期（2 月 8 日至 17 日）中在 NOA 上共积累了约 5.6 亿公里，超过 22 万用户享受了 NOA 的便利，其行驶的里程接近 5000 万公里。
In terms of our space, OTA 5.0 integrated Mind GPT into Lixiang Tongxue. Mind GPT is a full scenario multimodal large model with real-time connectivity. This development has significantly increased Lixiang Tongxue's understanding, generating, memorizing and reasoning capabilities. Since this release, there is a notable increase in user engagement and giving instructions and seeking text-based information and services through natural conversations.
就我们的空间而言，OTA 5.0将Mind GPT集成到理想同学中。Mind GPT是一个全场景多模态的大型模型，具有实时连接功能。这一发展显著提升了理想同学的理解、生成、记忆和推理能力。自此版本发布以来，用户参与度明显增加，通过自然对话给出指示、寻找基于文本的信息和服务。
During the 10-day Chinese New Year holiday, the percentage of such natural conversations among all effective communications reached 7.2%, twice the level before OTA 5.0. Amidst our remarkable sales growth in 2023, we accelerated the expansion of our direct sales network. In Q4 2023, we opened 106 new retail stores or over one store per day, creating the largest automobile direct sales network in China. As of January 31, 2024 we had 474 retail stores across 142 cities nationwide.
在为期10天的农历新年假期期间，所有有效沟通中这类自然对话所占比例达到了7.2%，是OTA 5.0推出前的两倍。在我们在2023年取得的显著销售增长中，我们加快了直销网络的扩张。2023年第四季度，我们新开了106家零售店，日均一家以上，形成了中国最大的汽车直销网络。截至2024年1月31日，我们在全国142个城市开设了474家零售店。
In 2024, we aim to further expand our direct sales and service network, targeting 800 retail stores by year-end. While expanding our presence in first and second-tier cities, we also plan to broaden our coverage in third and fourth tier cities. Turning over to our supercharging network. To date, we have over 340 supercharging networks in operation. Starting from the Chinese New Year holiday, throughout the entire holiday, we provided family users with free access to Li Auto's supercharging services. We delivered 57,000 free charging sections to Li Auto's users and over 120,000 sessions to all EV users, delivering over 2.81 million kilowatt hours of electricity.
在2024年，我们的目标是进一步扩大我们的直销和服务网络，计划在年底前开设800家零售店。在扩大我们在一、二线城市的存在的同时，我们也计划扩大在三、四线城市的覆盖范围。转到我们的超级充电网络。到目前为止，我们已经有超过340个超级充电站正在运营。从中国新年假期开始，整个假期期间，我们为家庭用户提供免费使用理想汽车超级充电服务。我们为理想汽车用户提供了57,000次免费充电，为所有电动车用户提供了超过120,000次的服务，提供了超过2.81百万千瓦时的电力。
Facing the exceptionally high demand during the holiday season, our superchargers maintained an online rate of over 99.3% providing uninterrupted access to high-quality and efficient charging experience to all users. In 2024, we will continue to accelerate our supercharging network expansion across highways and cities nationwide, targeting 2,000 supercharging stations by year-end.
在假期季节需求异常旺盛的情况下，我们的超级充电站保持了超过99.3%的在线率，为所有用户提供不间断的高质量和高效率的充电体验。到2024年，我们将继续加速我们在全国高速公路和城市的超级充电网络扩张，目标是到年底建成2,000个超级充电站。
On the production front, Li Auto's Beijing Green Intelligent Manufacturing base went into production towards the end of 2023, ready for volume production of Li MEGA and subsequent BEV models. With volume production delivery of Li MEGA and 2024 model year, L7, L8 and L9, we expect our total vehicle deliveries for Q1 2024 to range between 100,000 units to 103,000 units with March delivery exceeding 50,000 units. In 2024, we'll continue to learn from the best enterprises, iterate ourselves and surpass expectations as we create mobile homes and create happiness.
在生产方面，理想汽车的北京绿色智能制造基地于2023年年底投入生产，准备大量生产理想MEGA和随后的BEV车型。随着理想MEGA和2024年车型L7、L8和L9的大量生产交付，我们预计2024年第一季度的总交付量在10万至10.3万辆之间，其中3月交付量将超过5万辆。在2024年，我们将继续向最佳企业学习，不断自我迭代，并超越期望，创造移动家园，带来快乐。
With that, we will turn it over to our CFO, Johnny for a closer look at our financial performance.
随着这些，我们将把接下来的时间交给我们的首席财务官 Johnny，来更仔细地审视我们的财务表现。
Johnny Tie Li
Johnny Tie Li
Thank you, Xiang Li. Hello, everyone. I will now walk you through some of our 2023 fourth quarter financials. Due to time constraints, I will address financial highlights here and encourage you to refer to our earnings press release for further details. Total revenues in the fourth quarter were RMB41.73 billion or $5.88 billion, up 136.4% year-over-year and 23% quarter-over-quarter. This included RMB40.38 billion or $5.69 billion from vehicle sales, up 133.8% year-over-year and 20.1% quarter-over-quarter. The year-over-year increase was mainly attributable to the increase in vehicle deliveries, partially offset by the lower average selling price due to different product mix between the two quarters.
谢谢，向丽。大家好。我将为大家介绍我们2023年第四季度的一些财务数据。由于时间有限，我将在这里强调财务亮点，并鼓励大家参考我们的盈利新闻稿以获取更多详细信息。第四季度总收入为417.3亿人民币或58.8亿美元，同比增长136.4%，环比增长23%。其中，来自汽车销售的收入为403.8亿人民币或56.9亿美元，同比增长133.8%，环比增长20.1%。同比增长主要归因于交付量的增加，部分抵消了由于两个季度之间产品组合不同导致的平均销售价格下降。
The quarter-over-quarter increase was mainly attributable to the increase in vehicle deliveries. Cost of sales in the fourth quarter was RMB31.95 billion or $4.5 billion, up 126.8% year-over-year and 18.2% quarter-over-quarter. Gross profit in the fourth quarter was RMB9.79 billion or $1.38 billion, up 174.4% year-over-year and 28% quarter-over-quarter. Vehicle margin in the fourth quarter was 22.7% compared with 20% in the same period last year and 21.2% in the prior quarter. Excluding the impact of inventory provision related to true-up in the fourth quarter of last year and the true-up adjustments of warranty reserves in the fourth quarter of 2023 based on updated estimates of cost of further claims. The vehicle market remained relatively stable over the fourth quarter of 2022.
季度同比增长主要归因于交付量的增加。第四季度销售成本为319.5亿元人民币或45亿美元，同比增长126.8%，环比增长18.2%。第四季度毛利润为97.9亿元人民币或13.8亿美元，同比增长174.4%，环比增长28%。第四季度车辆毛利率为22.7%，去年同期为20%，前一个季度为21.2%。不包括去年第四季度库存准备相关影响以及2023年第四季度基于继续索赔成本更新估算而进行的保修准备对账调整的影响。车辆市场在2022年第四季度保持相对稳定。
The increase in vehicle margin over the third quarter of 2023 was mainly due to the aforementioned true-up adjustments of warranty reserves in the fourth quarter. Gross margin in the fourth quarter was 23.5% compared with 20.2% in the same period of last year and 22% in the third quarter. Operating expenses in the fourth quarter were RMB6.75 billion or $950.8 million, up 82.4% year-over-year and 27.2% quarter-over-quarter. R&D expenses in the fourth quarter were RMB3.49 billion or $491.7 million, up 68.6% year-over-year and 23.9% quarter-over-quarter, primarily driven by increased expense to support our expanding product portfolios and technologies as well as increased employee compensation as a result of our growing number of staff.
2023 年第三季度车辆毛利增加主要是因为上述保修准备金在第四季度的调整。第四季度的毛利率为 23.5%，相比去年同期的 20.2% 和第三季度的 22%。第四季度的运营费用为 67.5 亿元人民币或 9.508 亿美元，同比增长 82.4%，环比增长 27.2%。第四季度的研发费用为 34.9 亿元人民币或 4.917 亿美元，同比增长 68.6%，环比增长 23.9%，主要是由于支持产品组合和技术的增加支出增加，同时由于员工人数增加导致员工薪酬增加。
SG&A expenses in the fourth quarter were RMB3.27 billion or $460.5 million, up 100.6% year-over-year and 28.5% quarter-over-quarter, primarily driven by increased employee compensation as a result of our growing number of staff as well as increased rental expenses associated with the expansion of our sales and servicing network. Income from operations in the fourth quarter was RMB3.04 billion or $427.7 million compared with RMB133.6 million loss from operations in the same period last year and up 29.8% quarter-over-quarter.
第四季度的销售、一般和管理费用为人民币32.7亿元或4.605亿美元，同比增长100.6％，环比增长28.5％，主要原因是由于员工人数增加以及销售和服务网络扩张所致的员工补偿和租金支出增加。第四季度的营业收入为人民币30.4亿元或4.277亿美元，相比去年同期的营业亏损13.36亿元，环比增长29.8％。
Operating margin in the fourth quarter was 7.3% compared with negative 0.8% in the same period last year and 6.7% in the third quarter attributable to the increase of income from operations and the recognition of noncash tax benefit for the release of valuation allowance on certain deferred tax assets.
第四季度的营运利润率为7.3%，去年同期为-0.8%，第三季度为6.7%，这是因为营运收入增加和对特定递延税项释放评估准备金而确认的非现金税收益。