Li Xiang, the founder of Li Auto, issued an internal letter to review the problems in March and propose solutions

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China Research Network

Li Xiang, the founder of Li Auto, sent an internal letter to review the problems in March and propose solutions

On March 21, Li Xiang, founder, chairman and CEO of Li Auto, released an internal letter to all employees, in-depth analysis of various problems encountered by Li Auto in March, and proposed targeted solutions.

In the internal letter, Li Xiang began by acknowledging a series of challenges the company faced in March. He pointed out that these challenges mainly come from the instability of the supply chain, the adjustment of the production process, and the rapid change of market demand. Due to the combined impact of these factors, Li Auto has a certain degree of lag and deficiency in delivery and after-sales service.

In response to these problems, Li Xiang proposed a series of specific solutions. First of all, he stressed the need to strengthen cooperation with suppliers, optimize supply chain management, and ensure a stable supply of parts. At the same time, the company will also make refined adjustments to the production process to improve production efficiency and product quality. In addition, in order to meet market demand, Li Auto will also increase R&D investment and launch more new products that meet the needs of consumers.

In terms of after-sales service, Li Xiang said that he would strengthen team building and enhance the professionalism and service awareness of service personnel. At the same time, the company will also establish a sound customer feedback mechanism to collect and process customer opinions and suggestions in a timely manner, so as to better meet customer needs.

Li Xiang also emphasized the importance of teamwork in an internal letter. He said that in the face of market competition and challenges, only by working together and working together can we promote the continuous development of Li Auto.

The release of this internal letter not only reflects Li Xiang's deep understanding and positive attitude towards the problem as the company's leader, but also demonstrates Li Auto's determination and confidence in the face of challenges. It is believed that with the joint efforts of all employees, Li Auto will be able to overcome the current difficulties and achieve more stable development.

On February 26, Li Auto announced its financial results for the fourth quarter and full year of 2023. Li Auto said that thanks to the expansion of scale and continuous improvement of operating efficiency, it achieved the best financial performance in history during the reporting period.

According to the financial report, Li Auto will achieve revenue of 123.85 billion yuan in 2023, a year-on-year increase of 173.5%, making it the first new power car company in China with revenue exceeding 100 billion yuan. The net profit in 2023 will be 11.81 billion yuan, while the net loss in 2022 will be 2.03 billion yuan, achieving a comprehensive profit since delivery, becoming the third new energy vehicle company in the world to achieve profitability after Tesla and BYD. Among them, the net profit in the fourth quarter of 2023 will be 5.75 billion yuan, a year-on-year increase of 2068.2%.

Behind Li Auto's turnaround is a strong increase in deliveries. In 2023, Li Auto will deliver 376,000 new vehicles, a year-on-year increase of 182.2%, exceeding the annual delivery target of 300,000 vehicles and winning the "sales crown" of new forces in 2023. Among them, 131,800 units were delivered in the fourth quarter, a year-on-year increase of 184.6%, exceeding the previous delivery guidance.

At the same time, Li Auto's gross profit margin continued to rise, with a gross profit margin of 22.2% in 2023, compared to 19.4% in 2022. Among them, the gross margin in the fourth quarter of 2023 was 23.5%, compared to 20.2% in the fourth quarter of 2022.

In 2023, Li Auto's net cash from operating activities will be 50.69 billion yuan, a year-on-year increase of 586.9%. Free cash flow in 2023 will be RMB44.19 billion, up 1861.8% year-on-year. As of the end of 2023, the company's cash reserves reached 103.67 billion yuan.

According to the report written by the China Research Institute of Puhua Research Institute:

As an important part of the new energy vehicle industry chain, the new energy auto parts industry is facing a series of challenges with the continuous expansion of the new energy vehicle market and the continuous innovation of technology.

First of all, from the perspective of market size, the new energy auto parts industry benefits from the rapid growth of the new energy vehicle market, and its market size is also expanding. With the improvement of consumers' acceptance of new energy vehicles and the support of government policies, the new energy vehicle market will continue to maintain rapid growth, providing a huge market space for the parts industry.

Secondly, from the perspective of technological innovation, the new energy auto parts industry is facing the dual challenges of technological innovation and industrial upgrading. On the one hand, with the continuous development of new energy vehicle technology, parts companies need to keep up with the pace of technological innovation and continuously introduce new products that meet market demand. On the other hand, with the intensification of competition in the new energy vehicle market, parts companies need to improve production efficiency, reduce costs, and achieve industrial upgrading and sustainable development.

In terms of technological innovation, battery technology, motor technology and electronic control technology are the three core technologies of the new energy auto parts industry. The development of battery technology is directly related to the cruising range and charging time of new energy vehicles, so the continuous innovation and progress of battery technology is an important development direction of the parts industry. Motor technology and electronic control technology are related to the power performance and driving experience of new energy vehicles, and they also need continuous innovation and upgrading.

In addition, with the development of intelligent and networked technology, the new energy auto parts industry is also gradually realizing intelligence and networking. The application of intelligent technology can improve the safety performance and driving convenience of automobiles, while the networking technology can realize the interconnection between vehicles, vehicles and roads, and vehicles and people, providing more possibilities for the development of new energy vehicles.

However, the new energy auto parts industry is also facing some challenges. First of all, the fluctuation of raw material prices and the instability of the supply chain will have a certain impact on the parts industry. Secondly, the competition in the new energy vehicle market is becoming increasingly fierce, and parts companies need to continuously improve product quality and service levels in order to win market share. In addition, with the increasingly stringent environmental protection regulations, parts companies need to increase environmental protection investment to achieve green production.

To sum up, the new energy auto parts industry has broad development prospects and huge market space, but at the same time, it also needs to face multiple challenges such as technological innovation, industrial upgrading, market competition and environmental protection regulations. Therefore, parts and components enterprises need to strengthen technology research and development and innovation capabilities, improve production efficiency and quality levels, and actively respond to market changes and regulatory requirements to achieve sustainable development.

With the rapid evolution of core technologies in the automotive industry and the reshaping of the supply chain pattern, the huge demand for auto parts transmitted by automobile production and sales has become an important support for the sustainable development of the auto parts industry in mainland China. At the same time, the rapid increase in the penetration rate of new energy vehicles has also driven the expansion of auto parts in the direction of electrification, intelligence and lightweight.

The development of the new energy auto parts industry has benefited from the rapid growth of the new energy vehicle market. With the promotion of policies and the improvement of consumers' awareness of new energy vehicles, the sales of new energy vehicles have shown a rapid growth trend. This growth trend has directly led to the expansion of the new energy auto parts market, providing a broad market space for parts companies.

Technological innovation in the new energy auto parts industry is also an important factor to promote its development. Compared with traditional vehicles, new energy vehicles have significant differences in power system and structure, therefore, parts companies need to carry out technological innovation and research and development according to the characteristics of new energy vehicles. For example, the R&D and production of key components such as battery management systems, motor controllers, and lightweight materials are important development directions for the new energy auto parts industry.

In the future, the development prospects of the new energy auto parts industry are broad. With the continuous expansion of the new energy vehicle market and the continuous progress of technology, parts companies will have more development opportunities. At the same time, with the continuous improvement of consumers' requirements for automobile performance and quality, parts companies need to continue to innovate and improve product quality to meet market demand.

In the fierce market competition, whether enterprises and investors can make timely and effective market decisions is the key to success. The new energy auto parts industry report written by China Research Network makes a specific analysis of the development status, competition pattern and market supply and demand situation of China's new energy auto parts industry, and analyzes the opportunities and challenges faced by the industry from the aspects of the industry's policy environment, economic environment, social environment and technical environment.

At the same time, it reveals the potential demand and potential opportunities of the market, provides accurate market intelligence information and scientific decision-making basis for strategic investors to choose the appropriate investment time and the company's leadership to make strategic planning, and also has great reference value for government departments.

If you want to know more about the professional analysis of the new energy auto parts industry, you can click to view the written by the China Research Institute of Puhua

Pay attention to the headline "China Research Institute of Puhua Research Institute" and send a private message to "Industry Report" to get an excerpt from the report and come to discuss!