BEIJING, August 16 (TMTPOST) -- Li Auto posted operating revenue of RMB 8.73 billion ($1.29 billion) in the second quarter of 2022, down 8.7% from the first quarter. Its net loss was RMB 640 million ($94.65 million), which was 172.2% more than that in the same period of 2021.
As one of China's top car makers, Li Auto is currently selling Li ONE. The new model L9 was launched in June. The company posted a gross margin of 21.5% in the second quarter. Li Auto's operating cash flow was $1.13 billion in the second quarter, which decreased 19.8% year on year.
Li Auto's financial indicators declined in the second quarter, primarily due to the impact of the lockdown of Shanghai amid the pandemic. Li Auto delivered 28,686 vehicles in the second quarter, a drop from the previous quarter. Only 4,167 cars were delivered in April, representing a 62% plunge from the last quarter.
Summer is the off-peak season for auto sales and auto factories usually suspended production due to high temperatures in July. Economic slowdown in China may also affect demand.
Li Auto is accelerating the production of new products to improve the cash flow. L9 was scheduled for delivery in September, but delivery time will be advanced to the end of August. The orders for L9 exceeded 30,000 units, and deliveries were expected to surpass 10,000 units in September, according to Li Auto.
Li Auto has plans for extended-range electric vehicles and has decided to launch an all-electric model in 2023.
On June 28, Li Auto announced plans to raise $2 billion in American Depositary Receipts (ADSs) to support new model development and expansion needs. As of Monday, $336.5 million had been raised. Li Auto's CFO Li Tie said the secondary public offering was expected to be completed within a few months. As of the end of the second quarter, Li Auto had cash and cash equivalents of $53.65 billion.