Benefiting from strong delivery volumes in the fourth quarter, Li Auto's revenue in the fourth quarter of 2024 reached a new quarterly high, but net profit for the fourth quarter and the entire year declined year-on-year due to the impact of the "price war." On Friday, March 14, Li Auto announced its financial report for the fourth quarter and the entire year of 2024. 1) Key Financial Data Revenue: Fourth quarter revenue was 44.3 billion yuan, exceeding the estimated 44.21 billion yuan, a year-on-year increase of 6.1% and a quarter-on-quarter increase of 3.3%; total revenue for the year was 144.5 billion yuan, a year-on-year increase of 16.6%. Profit: Fourth quarter net profit was 3.5 billion yuan, a year-on-year decrease of 38.6%, exceeding analyst expectations; total net profit for the year was 8 billion yuan, a year-on-year decrease of 31.9%. Operating Profit Margin: Fourth quarter was 8.4%, higher than 7.3% in the same period last year; for the year, it was 4.9%, lower than last year's 6.0%. Vehicle Sales Revenue: Fourth quarter vehicle sales revenue was 42.6 billion yuan (5.8 billion USD), a year-on-year increase of 5.6% and a quarter-on-quarter increase of 3.2%; total for the year was 138.5 billion yuan, a year-on-year increase of 15.2%. Additionally, Li Auto's gross margin decreased from 23.5% in the same period last year to 20.3%, lower than the third quarter's 21.5%. The company stated that the year-on-year decline in gross margin was due to changes in product mix, while the quarter-on-quarter decline was due to procurement commitment losses and falling sales prices. 2) Operational Situation: In terms of delivery volume, Li Auto delivered 158,696 vehicles in the fourth quarter, a year-on-year increase of 20.4%, slightly below expectations; in 2024, Li Auto's total delivery volume reached 500,508 vehicles, a year-on-year increase of 33.1%. Analysis indicates that while the company's vehicle delivery volume grew by 20% in the fourth quarter, the revenue growth was less than one-third of the delivery volume increase, reflecting significant price-cutting pressure faced by the company. Furthermore, the financial report mentioned that as of December 31, 2024, Li Auto had 502 retail stores in the domestic market, covering 150 cities. At the same time, it operated 478 service centers and authorized body and paint shops in 225 cities; 1,727 supercharging stations were in operation, equipped with 9,100 charging piles. In terms of performance outlook, the company expects that in the first quarter of 2025, delivery volume will be between 88,000 and 93,000 vehicles, a year-on-year increase of 9.5% to 15.7%; total revenue is expected to be between 23.4 billion yuan and 24.7 billion yuan, a year-on-year decrease of 8.7% to 3.5%. Li Xiang, Chairman and CEO of Li Auto, stated: "We drove record performance in the fourth quarter, pushing our annual delivery volume to over 500,000 units, becoming the first Chinese luxury car brand to achieve this milestone." Li Tie, Chief Financial Officer of Li Auto, mentioned that we ended 2024 with outstanding financial performance. Strong vehicle delivery volume in the fourth quarter drove quarterly revenue to a new high, also leading to a 16.6% year-on-year increase in total revenue for 2024. Li Auto's U.S. stock fell nearly 5% in pre-market trading.