Home Business Ideal Auto fell more than 4% before the market, and the third-quarter loss expanded by about 150% from the previous quarter. Supplied by Investing.com

Ideal Auto fell more than 4% before the market, and the third-quarter loss expanded by about 150% from the previous quarter. Supplied by Investing.com

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Ideal Auto fell more than 4% before the market, and the third-quarter loss expanded by about 150% from the previous quarter. Supplied by Investing.com
© Reuters Li Auto fell more than 4% in pre-market; losses in the third quarter widened by about 150% from the previous quarter

Investing.com reported on Friday (9th) that Li Auto (NASDAQ: ) US stock price fell more than 4% before the market, after the company released its third-quarter financial report. The financial report shows that the company recorded a huge loss in the quarter due to the increase in input costs and the negative impact of the epidemic.

Li Auto said that although the net loss narrowed compared with the same period last year, it still expanded significantly from the previous quarter, and the soaring cost of capital expenditures and key inputs was also dragged down.

Meanwhile, the third quarter reversed to a cash outflow of more than $71 million, “primarily due to higher payments related to inventory purchases,” compared to about $150 million in cash inflows from operating activities generated in the second quarter. The company also said that the new SUV, the L9, was successfully launched, but the increase in costs was only partially mitigated despite the higher selling price.

In addition, Li Auto made a provision for unsold Li Li One inventory as the new model cannibalized the customer base of its previous flagship model, the Li One. Inventory provisions dragged down auto sales margins to almost halving to 12.0 percent from 21.2 percent in the second quarter. Excluding the impact of reserves, auto margins fell modestly to 20.8%.

However, overall revenue rose 7% from the second quarter to 9.34 billion yuan, up 20% year-on-year, thanks to the rise of the new full-size SUV L9. However, the net loss widened 156.7% to 1.65 billion yuan from 645 million yuan in the second quarter, or 1.68 yuan per share.

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Ideal Auto expects to deliver 45,000 to 48,000 vehicles in the fourth quarter. Revenue is expected to be between RMB 16.5 billion and RMB 17.6 billion, representing a year-on-year growth rate of approximately 60%.

As of 19:21 Beijing time, the ADR of Ideal Auto fell 4.32% before the market.

[This article is from Yingwei Caiqing Investing.com, to read more, please log in to cn.investing.com or download Yingwei Caiqing App]

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Compiler: Liu Chuan

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