06:37 AM EDT, 08/28/2024 (MT Newswires) -- Li Auto's ( LI ) second-quarter earnings fell year over year while the Chinese automaker's revenue rose amid higher vehicle deliveries.

The company posted adjusted earnings of 1.42 renminbi ($0.20) per American depositary share for the June quarter, down from 2.58 renminbi a year ago, it said early Wednesday. Four analysts polled by Capital IQ expected normalized EPS of 1.36 renminbi. Operating expenses rose to 5.71 billion renminbi from 4.61 billion renminbi in the prior-year period.

Revenue advanced to 31.68 billion renminbi from 28.65 billion renminbi last year, while six analysts polled by Capital IQ estimated 31.59 billion renminbi. Vehicle sales inclined 8.4% year over year to 30.32 billion renminbi, mainly driven by higher deliveries, partially offset by lower average selling prices primarily due to "different product mix" and pricing strategy changes, according to the company.

Li Auto ( LI ) delivered 108,581 vehicles in the second quarter, reflecting a roughly 26% annual jump. The automaker's Nasdaq-listed shares were up 1.7% in premarket activity.

"Amid intense market competition during the second quarter, we focused on creating user value and improving operating efficiency," Chief Financial Officer Tie Li said in a statement. "Our solid second-quarter deliveries drove revenues."

Gross margin stood at 19.5%, down from 21.8% the year before, primarily due to a decrease in vehicle margin, the company said. "As Li L6 production stabilizes and our cost reduction and efficiency enhancement measures take full effect, we expect an increase in both our margins and cash flow in the second half of the year," according to Tie Li.

For the third quarter, the maker of electric vehicles expects revenue to be in a range of 39.4 billion renminbi to 42.2 billion renminbi, representing a year-over-year growth of about 14% to 22%. Five analysts polled by Capital IQ expect revenue of 39.41 billion renminbi. Li Auto ( LI ) anticipates delivering between 145,000 and 155,000 vehicles for the quarter, having distributed 51,000 units in July.

"Looking ahead, we are committed to investing in technological and product advancements to drive steady business growth, while simultaneously optimizing our cost structure," Tie Li said.

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