Just tonight, as the leader of the current new car-making forces, Li Auto released its fourth quarter and annual performance report for 2023, which attracted widespread attention from the market for a while. What exactly are the highlights? What is the reason behind it? What signal is released? Xiaocai will give you an in-depth analysis today.
Highlight 1:Positive profit for four consecutive quarters, with an annual net profit of more than 10 billion yuan.
Li Auto's full-year net profit in 2023 will reach 118100 million yuan, this figure is still a loss of 20 in 2022300 million yuan.
This turnaround performance undoubtedly shows the strong profitability and steady business strategy of Li Auto. With the continuous increase in deliveries, the scale effect of Li Auto has begun to appear, which is also an important reason why it can achieve continuous profitability.
Highlight 2:The gross profit margin of vehicles is comparable to that of BYD and Tesla.
Li Auto's vehicle gross margin for the full year of 2023 is 215%。Many small partners don't know what the level of this gross profit margin is.
At present, the gross profit margin of Tesla, the global leader in new energy vehicles, is only 182%。According to the data currently released by BYD, BYD's comprehensive gross profit margin in 2023 will be about 19%.
The sales volume of these two car companies is far greater than that of Li Auto, and Li Auto can compete with Tesla and BYD in this indicator, which is enough to show its superb skills in cost control and product pricing.
Highlight 3:Bicycle revenue gradually declined, and the sales strategy was adjusted.
Although Li Auto's delivery volume and revenue are growing, the revenue of a single vehicle is showing a gradual downward trend. Behind this, in fact, Li Auto took the initiative to adjust its sales strategy. In order to cope with the increasingly fierce competition in the new energy vehicle market, Li Auto has begun to pay more attention to the cost-effectiveness of its products and attract more consumers by reducing the price of a single vehicle. Although this strategy may sacrifice some profits in the short term, it will help increase brand influence and market share in the long run.
Why can Li Auto achieve such amazing results in 2023?
The reason why Li Auto has been able to achieve such outstanding resultsThe important reason behind this is the initial appearance of the scale effect.
With the continuous increase in deliveries, Li Auto's cost control ability has been greatly improved, which also provides it with more chips in the future battle. In the face of increasingly fierce competition in the new energy vehicle market, the first war may become the norm.
Li Auto is undoubtedly a wise choice to meet this challenge by adjusting its sales strategy and reducing the price of its vehicles.
So,What signal does this send?
On the one hand,Competition in the new energy vehicle market has intensified。The decline in Li Auto's single vehicle revenue and the adjustment of its sales strategy reflect the intensifying competition in the new energy vehicle market. In the face of fierce market competition and consumers' increasing attention to cost performance, the new energy vehicle market may fall into a first-class war in the future. In the future, car companies may need to pay more attention to the cost-effectiveness and differentiated competition of products in order to stand out in the market.
On the other hand,Scale is key。The comparison of the gross profit margin level of Li Auto and Tesla and BYD fully illustrates the importance of scale effect to the profitability of car companies. Only by achieving large-scale production and sales can we effectively reduce costs, improve gross profit margins, and then achieve profitability.
fromMarket reactionLook, after the release of the earnings report, Li Auto's U.S. stock price rose more than 10% in pre-market trading, which also reflects the market's optimistic expectations for the future development prospects of Li Auto.
To sum up, Xiaocai believes that Li Auto's 2023 financial report shows its strong profitability and stable business strategy, and its positive profitability and vehicle gross profit margin are the highlights of the industry giants for four consecutive quarters. The reason behind this is the initial appearance of the scale effect and the adjustment of the sales strategy. This releases a key signal that the competition in the new energy vehicle market is intensifying and the scale effect has become a key signal.