Page 1

Li Auto Li Auto Inc. Announces Unaudited First Quarter 2021 Financial Results Quarterly total revenues reached RMB3.58 billion ( US $ 545.7 million ) ¹ Quarterly deliveries were 12,579 vehicles Quarterly gross margin reached 17.3 % BEIJING , China , May 26 , 2021 — Li Auto Inc. ( “ Li Auto ” or the “ Company ” ) ( Nasdaq : LI ) , an innovator in China's new energy vehicle market , today announced its unaudited financial results for the first quarter ended March 31 , 2021 . Operating Highlights for the First Quarter of 2021 • Deliveries of Li ONEs were 12,579 vehicles in the first quarter of 2021 , representing a 334.4 % year - over - year increase . 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 Deliveries 2,896 6,604 8,660 14,464 12,579 • As of March 31 , 2021 , the Company had 65 retail stores covering 49 cities and 135 servicing centers and Li Auto - authorized body and paint shops operating in 98 cities . Financial Highlights for the First Quarter of 2021 • • • • • • • Vehicle sales were RMB3.46 billion ( US $ 528.7 million ) in the first quarter of 2021 , representing an increase of 311.8 % from RMB841.1 million in the first quarter of 2020 and a decrease of 14.6 % from RMB4.06 billion in the fourth quarter of 2020 . Vehicle margin² was 16.9 % in the first quarter of 2021 , compared with 8.4 % in the first quarter of 2020 and 17.1 % in the fourth quarter of 2020 . Total revenues were RMB3.58 billion ( US $ 545.7 million ) in the first quarter of 2021 , representing an increase of 319.8 % from RMB851.7 million in the first quarter of 2020 and a decrease of 13.8 % from RMB4.15 billion in the fourth quarter of 2020 . Gross profit was RMB616.7 million ( US $ 94.1 million ) in the first quarter of 2021 , representing an increase of 802.9 % from RMB68.3 million in the first quarter of 2020 and a decrease of 14.9 % from RMB724.6 million in the fourth quarter of 2020 . Gross margin was 17.3 % in the first quarter of 2021 , compared with 8.0 % in the first quarter of 2020 and 17.5 % in the fourth quarter of 2020 . Loss from operations was RMB407.7 million ( US $ 62.2 million ) in the first quarter of 2021 , representing an increase of 74.1 % from RMB234.2 million in the first quarter of 2020 and an increase of 416.7 % from RMB78.9 million in the fourth quarter of 2020 . Non - GAAP loss from operations³ was RMB224.8 million ( US $ 34.3 million ) in the first quarter of 2021 , representing a decrease of 4.0 % from RMB234.2 million in the first quarter of 2020 and an increase of 216.2 % from RMB71.1 million in the fourth quarter of 2020 . Net loss was RMB360.0 million ( US $ 54.9 million ) in the first quarter of 2021 , compared with RMB77.1 million net loss in the first quarter of 2020 and RMB107.5 million net income in the fourth quarter of 2020. Non - GAAP net loss³ was RMB177.0 million ( US $ 27.0 million ) in the first quarter of 2021 , compared with RMB253.4 million net loss in the first quarter of 2020 and RMB 115.4 million net income in the fourth quarter of 2020 . Operating cash flow was RMB926.3 million ( US $ 141.4 million ) in the first quarter of 2021 , representing an increase of RMB989.3 million from negative net cash flow of RMB63.0 million in the first quarter of 2020 and a decrease of 49.1 % from RMB1.82 billion in the fourth quarter of 2020 . Free cash flow was RMB570.2 million ( US $ 87.0 million ) in the first quarter of 2021 , representing an increase of RMB755.4 million from negative net cash flow of RMB185.2 million in the first quarter of 2020 and a decrease of 64.3 % from RMB 1.60 billion in the fourth quarter of 2020 . 1 All translations from Renminbi ( " RMB " ) to U.S. dollar ( " US $ " ) are made at a rate of RMB 6.5518 to US $ 1.00 , the noon buying rate in effect on March 31 , 2021 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 . 3 The Company's Non - GAAP financial measures exclude share - based compensation expenses , changes in fair value of warrants and derivative liabilities , accretion on convertible redeemable preferred shares to redemption value , and the effect of exchange rate changes on convertible redeemable preferred shares . See " Unaudited Reconciliation of GAAP and Non - GAAP Results " set forth at the end of this press release . 4 Free cash flow represents operating cash flow less capital expenditures . 1