Li Auto beats on earnings, but stock moves lower

Li Auto Inc.
LI,
+1.77%
topped earnings expectations Tuesday, but shares of the Chinese electric-vehicle company were falling about 2% in premarket action. The company reported net income of RMB2.31 billion ($318.6 million), or RMB2.18 per American depositary share, whereas the company posted a net loss of RMB641.0 million, or RMB0.64 a share, in the year-earlier period. The company posted adjusted earnings of RMB2.58 per ADS, while the FactSet consensus was for RMB1.76 per ADS. Revenue rose to RMB28.65 billion from RMB8.73 billion a year before, while analysts were modeling RMB26.74 billion. “Facing the competitive market dynamics in China’s NEV [new electric vehicle] industry, in the second quarter we achieved our highest-ever profitability while continuing to strengthen our competitive advantage through ongoing investments in research and development and business expansion, as well as improvements in our organizational processes and operational capabilities,” Chief Executive Xiang Li said in a release. The company delivered 86,533 vehicles in the period, up more than 200% from a year before.