By Clarence Leong
Li Auto Inc. posted a wider quarterly loss despite a 20% rise in revenue, as the Chinese electric-car maker spent more on developing new car models.
Li Auto's third-quarter net loss widened to 1.65 billion yuan ($236.8 million) from CNY21.5 million a year earlier, it said Friday.
Revenue was CNY9.34 billion, as vehicle sales rose 23% on higher average selling prices, with the delivery of the Li L9 model beginning in late August, Li Auto said.
But the 73% jump in Li Auto's operating expenses more than offset stronger sales. Part of the increase was due to higher research and development expenses, which more than doubled to CNY1.80 billion on a higher staff count, it said.
Li Auto guided for fourth-quarter revenue to rise between 55% and 66% to CNY16.51 billion-CNY17.61 billion. It forecast deliveries of between 45,000 and 48,000 vehicles, representing a rise of 28%-36%.
Chief Financial Officer Tie Li said the company navigated "a challenging macro environment and cost inflation" in the quarter but he is optimistic that "with rapid production ramp-up, rigorous execution, and responsible cost management, we will realize greater economies of scale and further drive down costs."
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(END) Dow Jones Newswires