Li Auto Inc. (NASDAQ:LI) Q4 2022 Earnings Call Transcript

Xiang Li: In fact, in practice, we’ve seen very clear user base differentiation between L7 and L9, L8. There hasn’t been as much overlap as we have been expecting. As we’ve seen in showrooms, the L7 is really attracting families with two to three members, one kid, and L8 is attracting either families with two kids or those that are three generations under the same roof. And another good thing is that the interest in L7 has also helped a few orders for L8. So with L8, L7 and L9 we really formed is not just a product line, but in fact, the product network. We want any family who is willing to buy an SUV will come to our network and find and think about whether it’s L7 or L8 or L8 or L9 that they should buy rather than comparing us to other brands and pick which brand to buy. That has been our core product philosophy with the product lineup about L7, L8, and L9.

Tie Li: Okay. For the gross margin, as we just mentioned for L-Series platform with all this product offering and with some scalability, the design gross profit is profit margin is 35%. Considering this year’s battery price and also the macroeconomics, we still want to keep our presence just about 20%.

Yuqian Ding: Thank you.

Operator: There are no further questions at this time. I’ll now hand back to Ms. Chang for any closing remarks.

Janet Chang: Thank you once again for joining us today. If you have further questions, please feel free to contact Li Auto Investor Relations team. You may then — that’s off for today. You may disconnect your lines. Thank you.

Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.