Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2020 |
Entity Registrant Name | Li Auto Inc. |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0001791706 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Class A Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,453,476,230 |
Class B Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 355,812,080 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Current assets: | |||
Cash and cash equivalents | $ 1,369,861 | ¥ 8,938,341 | ¥ 1,296,215 |
Restricted cash | 189,146 | 1,234,178 | 140,027 |
Time deposits and short-term investments | 3,019,369 | 19,701,382 | 2,272,653 |
Trade receivable | 17,709 | 115,549 | 8,303 |
Inventories | 160,614 | 1,048,004 | 518,086 |
Prepayments and other current assets | 54,200 | 353,655 | 812,956 |
Assets held for sale, current | 17,599 | ||
Total current assets | 4,810,899 | 31,391,109 | 5,065,839 |
Non-current assets: | |||
Long-term investments | 24,958 | 162,853 | 126,181 |
Property, plant and equipment, net | 379,875 | 2,478,687 | 2,795,122 |
Operating lease right-of-use assets, net | 195,710 | 1,277,006 | 510,227 |
Intangible assets, net | 104,717 | 683,281 | 673,867 |
Other non-current assets | 49,224 | 321,184 | 311,933 |
Deferred tax assets | 9,066 | 59,156 | |
Assets held for sale, non-current | 30,253 | ||
Total non-current assets | 763,550 | 4,982,167 | 4,447,583 |
Total assets | 5,574,449 | 36,373,276 | 9,513,422 |
Current liabilities: | |||
Short-term borrowings | 238,957 | ||
Trade and notes payable | 484,370 | 3,160,515 | 624,666 |
Amounts due to related parties | 2,943 | 19,206 | 9,764 |
Deferred revenue, current | 41,611 | 271,510 | 56,695 |
Operating lease liabilities, current | 32,265 | 210,531 | 177,526 |
Finance lease liabilities, current | 360,781 | ||
Warrants and derivative liabilities | 1,648,690 | ||
Accruals and other current liabilities | 99,227 | 647,459 | 867,259 |
Convertible debts, current | 692,520 | ||
Liabilities held for sale, current | 2,862 | ||
Total current liabilities | 660,416 | 4,309,221 | 4,679,720 |
Non-current liabilities: | |||
Long-term borrowings | 78,412 | 511,638 | |
Deferred revenue, non-current | 20,790 | 135,658 | 5,943 |
Operating lease liabilities, non-current | 157,127 | 1,025,253 | 241,109 |
Finance lease liabilities, non-current | 56,227 | 366,883 | |
Deferred tax liabilities | 5,565 | 36,309 | |
Other non-current liabilities | 28,309 | 184,717 | 5,519 |
Total non-current liabilities | 346,430 | 2,260,458 | 252,571 |
Total liabilities | 1,006,846 | 6,569,679 | 4,932,291 |
Commitments and contingencies (Note 28) | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 10,255,662 | ||
SHAREHOLDERS' (DEFICIT)/EQUITY | |||
Additional paid-in capital | 5,714,907 | 37,289,761 | |
Accumulated other comprehensive income/(loss) | (154,041) | (1,005,184) | 15,544 |
Accumulated deficit | (993,444) | (6,482,225) | (5,690,240) |
Total shareholders' (deficit)/equity | 4,567,603 | 29,803,597 | (5,674,531) |
Total liabilities, mezzanine equity and shareholders' (deficit)/equity | 5,574,449 | 36,373,276 | 9,513,422 |
Series Pre-A convertible redeemable preferred shares | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 434,886 | ||
Series A1 convertible redeemable preferred shares | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 980,949 | ||
Series A2 convertible redeemable preferred shares | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 1,074,959 | ||
Series A3 convertible redeemable preferred shares | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 619,770 | ||
Series B1 convertible redeemable preferred shares | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 1,347,607 | ||
Series B2 convertible redeemable preferred shares | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 710,303 | ||
Series B3 convertible redeemable preferred shares | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 1,551,080 | ||
Series C Convertible Redeemable Preferred Shares | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 3,536,108 | ||
Class A Ordinary Shares | |||
SHAREHOLDERS' (DEFICIT)/EQUITY | |||
Ordinary shares | 145 | 1,010 | 10 |
Class B Ordinary Shares | |||
SHAREHOLDERS' (DEFICIT)/EQUITY | |||
Ordinary shares | $ 36 | ¥ 235 | ¥ 155 |
CONSOLIDATED BALANCE SHEETS(Par
CONSOLIDATED BALANCE SHEETS(Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Mezzanine equity, shares outstanding | 910,926,266 | |
Ordinary shares, shares issued | 1,809,288,310 | 255,000,000 |
Ordinary shares, shares outstanding | 1,809,288,310 | 255,000,000 |
Series Pre-A convertible redeemable preferred shares | ||
Mezzanine equity, par value | $ 0.0001 | $ 0.0001 |
Mezzanine equity, shares authorized | 0 | 50,000,000 |
Mezzanine equity, shares issued | 0 | 50,000,000 |
Mezzanine equity, shares outstanding | 0 | 50,000,000 |
Series A1 convertible redeemable preferred shares | ||
Mezzanine equity, par value | $ 0.0001 | $ 0.0001 |
Mezzanine equity, shares authorized | 0 | 129,409,092 |
Mezzanine equity, shares issued | 0 | 129,409,092 |
Mezzanine equity, shares outstanding | 0 | 129,409,092 |
Series A2 convertible redeemable preferred shares | ||
Mezzanine equity, par value | $ 0.0001 | $ 0.0001 |
Mezzanine equity, shares authorized | 0 | 126,771,562 |
Mezzanine equity, shares issued | 0 | 126,771,562 |
Mezzanine equity, shares outstanding | 0 | 126,771,562 |
Series A3 convertible redeemable preferred shares | ||
Mezzanine equity, par value | $ 0.0001 | $ 0.0001 |
Mezzanine equity, shares authorized | 0 | 65,498,640 |
Mezzanine equity, shares issued | 0 | 65,498,640 |
Mezzanine equity, shares outstanding | 0 | 65,498,640 |
Series B1 convertible redeemable preferred shares | ||
Mezzanine equity, par value | $ 0.0001 | $ 0.0001 |
Mezzanine equity, shares authorized | 0 | 115,209,526 |
Mezzanine equity, shares issued | 0 | 115,209,526 |
Mezzanine equity, shares outstanding | 0 | 115,209,526 |
Series B2 convertible redeemable preferred shares | ||
Mezzanine equity, par value | $ 0.0001 | $ 0.0001 |
Mezzanine equity, shares authorized | 0 | 55,804,773 |
Mezzanine equity, shares issued | 0 | 55,804,773 |
Mezzanine equity, shares outstanding | 0 | 55,804,773 |
Series B3 convertible redeemable preferred shares | ||
Mezzanine equity, par value | $ 0.0001 | $ 0.0001 |
Mezzanine equity, shares authorized | 0 | 119,950,686 |
Mezzanine equity, shares issued | 0 | 119,950,686 |
Mezzanine equity, shares outstanding | 0 | 119,950,686 |
Series C Convertible Redeemable Preferred Shares | ||
Mezzanine equity, par value | $ 0.0001 | $ 0.0001 |
Mezzanine equity, shares authorized | 0 | 249,971,721 |
Mezzanine equity, shares issued | 0 | 244,172,860 |
Mezzanine equity, shares outstanding | 0 | 244,172,860 |
Class A Ordinary Shares | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 4,000,000,000 | 3,847,384,000 |
Ordinary shares, shares issued | 1,453,476,230 | 15,000,000 |
Ordinary shares, shares outstanding | 1,453,476,230 | 15,000,000 |
Class B Ordinary Shares | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 500,000,000 | 240,000,000 |
Ordinary shares, shares issued | 355,812,080 | 240,000,000 |
Ordinary shares, shares outstanding | 355,812,080 | 240,000,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Revenues: | ||||
Total revenues | $ 1,449,288 | ¥ 9,456,609 | ¥ 284,367 | |
Cost of sales: | ||||
Total cost of sales | (1,211,842) | (7,907,270) | (284,462) | |
Gross (loss)/ income | 237,446 | 1,549,339 | (95) | |
Operating expenses: | ||||
Research and development | (168,560) | (1,099,857) | (1,169,140) | ¥ (793,717) |
Selling, general and administrative | (171,467) | (1,118,819) | (689,379) | (337,200) |
Total operating expenses | (340,027) | (2,218,676) | (1,858,519) | (1,130,917) |
Loss from operations | (102,581) | (669,337) | (1,858,614) | (1,130,917) |
Other (expense)/income | ||||
Interest expense | (10,255) | (66,916) | (83,667) | (63,467) |
Interest income | 6,332 | 41,316 | 30,256 | 3,582 |
Investment income, net | 32,736 | 213,600 | 49,375 | 68,135 |
Share of loss of equity method investees | (386) | (2,520) | (162,725) | (35,826) |
Foreign exchange (loss)/gain, net | (1,030) | (6,719) | 31,977 | (3,726) |
Changes in fair value of warrants and derivative liabilities | 41,736 | 272,327 | (426,425) | |
Others, net | 4,501 | 29,372 | 1,949 | (3,077) |
Loss before income tax expense | (28,947) | (188,877) | (2,417,874) | (1,165,296) |
Income tax benefit | (3,501) | (22,847) | ||
Net loss from continuing operations | (25,446) | (166,030) | (2,417,874) | (1,165,296) |
Net (loss)/income from discontinued operations, net of tax | 2,203 | 14,373 | (20,662) | (367,022) |
Net loss | (23,243) | (151,657) | (2,438,536) | (1,532,318) |
Accretion on convertible redeemable preferred shares to redemption value | (99,799) | (651,190) | (743,100) | (317,320) |
Deemed dividend to preferred shareholders upon extinguishment, net (Note 23) | (217,362) | |||
Effect of exchange rate changes on convertible redeemable preferred shares | 1,665 | 10,862 | 117,391 | |
Net loss attributable to ordinary shareholders of Li Auto Inc. | (121,377) | (791,985) | (3,281,607) | (1,849,638) |
Net loss from continuing operations attributable to ordinary shareholders of Li Auto Inc | (123,580) | (806,358) | (3,260,945) | (1,482,616) |
Net (loss)/income from discontinued operations attributable to ordinary shareholders | $ 2,203 | ¥ 14,373 | ¥ (20,662) | ¥ (367,022) |
Weighted average number of ordinary shares used in computing net loss per share | ||||
Basic and diluted | shares | 870,003,278 | 870,003,278 | 255,000,000 | 255,000,000 |
Net (loss)/income per share attributable to ordinary shareholders - Basic and diluted | ||||
Continuing operations | (per share) | $ (0.14) | ¥ (0.93) | ¥ (12.79) | ¥ (5.81) |
Discontinued operations | ¥ / shares | 0.02 | (0.08) | (1.44) | |
Net loss per share | (per share) | $ (0.14) | ¥ (0.91) | ¥ (12.87) | ¥ (7.25) |
Net loss | $ (23,243) | ¥ (151,657) | ¥ (2,438,536) | ¥ (1,532,318) |
Other comprehensive income/(loss), net of tax | ||||
Foreign currency translation adjustment, net of tax | 156,423 | 1,020,728 | (2,851) | (12,954) |
Total other comprehensive income/(loss), net of tax | (156,423) | (1,020,728) | 2,851 | 12,954 |
Total comprehensive loss, net of tax | (179,666) | (1,172,385) | (2,435,685) | (1,519,364) |
Accretion on convertible redeemable preferred shares to redemption value | (99,799) | (651,190) | (743,100) | (317,320) |
Deemed dividend to preferred shareholders upon extinguishment, net (Note 23) | (217,362) | |||
Effect of exchange rate changes on convertible redeemable preferred shares | 1,665 | 10,862 | 117,391 | |
Comprehensive loss attributable to ordinary shareholders of Li Auto Inc. | (277,800) | (1,812,713) | (3,278,756) | ¥ (1,836,684) |
Vehicle sales | ||||
Revenues: | ||||
Total revenues | 1,422,636 | 9,282,703 | 280,967 | |
Cost of sales: | ||||
Total cost of sales | (1,189,828) | (7,763,628) | (279,555) | |
Other sales and services | ||||
Revenues: | ||||
Total revenues | 26,652 | 173,906 | 3,400 | |
Cost of sales: | ||||
Total cost of sales | $ (22,014) | ¥ (143,642) | ¥ (4,907) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/DEFICIT ¥ in Thousands | Ordinary SharesClass A Ordinary SharesIPO and concurrent private placementCNY (¥)shares | Ordinary SharesClass A Ordinary SharesFollow-on offeringCNY (¥)shares | Ordinary SharesClass A Ordinary SharesCNY (¥)shares | Ordinary SharesClass B Ordinary SharesUSD ($)shares | Ordinary SharesClass B Ordinary SharesCNY (¥)shares | Additional Paid-in CapitalIPO and concurrent private placementCNY (¥) | Additional Paid-in CapitalFollow-on offeringCNY (¥) | Additional Paid-in CapitalCNY (¥) | Accumulated Other Comprehensive (Loss)/IncomeCNY (¥) | Accumulated DeficitCNY (¥) | Class A Ordinary Sharesshares | Class B Ordinary Sharesshares | IPO and concurrent private placementCNY (¥) | Follow-on offeringCNY (¥) | USD ($)shares | CNY (¥)shares |
Balance at the beginning of period at Dec. 31, 2017 | ¥ 10 | ¥ 155 | ¥ 106,080 | ¥ (261) | ¥ (665,075) | ¥ (559,091) | ||||||||||
Balance at the beginning of period (in shares) at Dec. 31, 2017 | shares | 15,000,000 | 240,000,000 | 240,000,000 | |||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY | ||||||||||||||||
Accretion on convertible redeemable preferred shares to redemption value | (106,080) | (211,240) | (317,320) | |||||||||||||
Foreign currency translation adjustment, net of tax | (12,954) | (12,954) | ||||||||||||||
Net loss | (1,532,318) | (1,532,318) | ||||||||||||||
Balance at the end of period at Dec. 31, 2018 | ¥ 10 | ¥ 155 | 12,693 | (2,408,633) | (2,395,775) | |||||||||||
Balance at the end of period (in shares) at Dec. 31, 2018 | shares | 15,000,000 | 240,000,000 | 240,000,000 | |||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY | ||||||||||||||||
Accretion on convertible redeemable preferred shares to redemption value | (743,100) | (743,100) | ||||||||||||||
Effect of exchange rate changes on convertible redeemable preferred shares | 117,391 | 117,391 | ||||||||||||||
Foreign currency translation adjustment, net of tax | (2,851) | (2,851) | ||||||||||||||
Deemed dividend to preferred shareholders upon extinguishment, net (Note 23) | (217,362) | (217,362) | ||||||||||||||
Net loss | (2,438,536) | (2,438,536) | ||||||||||||||
Balance at the end of period at Dec. 31, 2019 | ¥ 10 | ¥ 155 | 15,544 | (5,690,240) | ¥ (5,674,531) | |||||||||||
Balance at the end of period (in shares) at Dec. 31, 2019 | shares | 15,000,000 | 240,000,000 | 240,000,000 | 15,000,000 | 240,000,000 | 255,000,000 | 255,000,000 | |||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY | ||||||||||||||||
Accretion on convertible redeemable preferred shares to redemption value | (651,190) | $ (99,799,000) | ¥ (651,190) | |||||||||||||
Effect of exchange rate changes on convertible redeemable preferred shares | 10,862 | 1,665,000 | 10,862 | |||||||||||||
Foreign currency translation adjustment, net of tax | 1,020,728 | 156,423,000 | 1,020,728 | |||||||||||||
Share issuance, net of issuance costs | ¥ 199 | ¥ 71 | ¥ 11,023,348 | ¥ 9,999,862 | ¥ 11,023,547 | ¥ 9,999,933 | ||||||||||
Share issuance, net of issuance costs (in shares) | shares | 284,586,955 | 108,100,000 | ||||||||||||||
Share issuance upon the conversion and re-designation of preferred shares into Class A and Class B ordinary shares | ¥ 730 | $ 115,812,080 | ¥ 80 | 14,723,086 | 14,723,896 | |||||||||||
Share issuance upon the conversion and re-designation of preferred shares into Class A and Class B ordinary shares (in shares) | shares | 1,045,789,275 | |||||||||||||||
Exercise of conversion features of preferred shares upon the consummation of IPO | 1,400,670 | 1,400,670 | ||||||||||||||
Share-based compensation | 142,795 | 142,795 | ||||||||||||||
Net loss | (151,657) | (23,243,000) | (151,657) | |||||||||||||
Balance at the end of period at Dec. 31, 2020 | ¥ 1,010 | ¥ 235 | ¥ 37,289,761 | ¥ (1,005,184) | ¥ (6,482,225) | $ 4,567,603,000 | ¥ 29,803,597 | |||||||||
Balance at the end of period (in shares) at Dec. 31, 2020 | shares | 1,453,476,230 | 355,812,080 | 355,812,080 | 1,453,476,230 | 355,812,080 | 1,809,288,310 | 1,809,288,310 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net loss | $ (23,243) | ¥ (151,657) | ¥ (2,438,536) | ¥ (1,532,318) |
Net loss/(income) from discontinued operations, net of tax | (2,203) | (14,373) | 20,662 | 367,022 |
Adjustments to reconcile net loss to net cash (used in)/ provided by operating activities: | ||||
Depreciation and amortization | 49,195 | 320,996 | 116,391 | 60,496 |
Share-based compensation expenses | 21,884 | 142,795 | ||
Foreign exchange loss/(gain) | 569 | 3,710 | (31,977) | 3,726 |
Unrealized investment loss/(income) | (5,059) | (33,008) | 13,221 | 28,781 |
Interest expense | 10,000 | 65,249 | 83,667 | 63,467 |
Share of loss of equity method investees | 386 | 2,520 | 162,725 | 35,826 |
Impairment loss | 4,656 | 30,381 | 18,066 | |
Changes in fair value of warrants and derivative liabilities | (41,736) | (272,327) | 426,425 | |
Deferred income tax | (3,501) | (22,847) | ||
Loss on disposal of property, plant and equipment | 58 | 379 | 602 | 2,563 |
Changes in operating assets and liabilities: | ||||
Prepayments and other current assets | 70,391 | 459,301 | (442,745) | (200,408) |
Inventories | (79,213) | (516,867) | (510,546) | 3,127 |
Changes of operating lease right-of-use assets | (117,514) | (766,779) | (144,693) | (206,764) |
Changes of operating lease liabilities | 125,234 | 817,149 | 153,415 | 107,894 |
Other non-current assets | 254 | 1,656 | 8,512 | (116,515) |
Trade receivable | (16,437) | (107,246) | (8,303) | |
Deferred revenue | 52,801 | 344,530 | 62,638 | |
Trade and notes payable | 387,793 | 2,530,350 | 602,276 | (62,500) |
Amounts due to related parties | 1,447 | 9,442 | 4,017 | 3,049 |
Accruals and other current liabilities | 20,094 | 131,111 | 116,349 | 161,674 |
Other non-current liabilities | 25,317 | 165,191 | 5,519 | |
Net cash (used in)/provided by continuing operating activities | 481,173 | 3,139,656 | (1,782,315) | (1,280,880) |
Net cash (used in)/provided by discontinued operating activities | 23 | 148 | (11,395) | (65,925) |
Net cash (used in)/provided by operating activities | 481,196 | 3,139,804 | (1,793,710) | (1,346,805) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of property, plant and equipment and intangible assets | (103,477) | (675,187) | (952,901) | (970,733) |
Disposal of property, plant and equipment | 82 | 535 | 1,648 | 413 |
Purchase of long-term investments | (9,962) | (65,000) | (98,000) | (213,303) |
Placement of time deposits | (159,083) | (1,038,017) | (1,725,148) | |
Withdraw of time deposits | 92,256 | 601,968 | 1,265,877 | |
Placement of short-term investments | (16,134,783) | (105,279,461) | (7,998,736) | (5,737,600) |
Withdraw of short-term investments | 13,440,487 | 87,699,180 | 7,020,989 | 7,278,670 |
Loan to Chongqing Lifan Holdings Ltd. ("Lifan Holdings") and a supplier | (920) | (6,000) | (8,000) | (490,000) |
Collection of loan principal from Lifan Holdings | 490,000 | |||
Cash paid related to acquisition of Chongqing Zhizao Automobile Co., Ltd. ("Chongqing Zhizao"), net of cash acquired | (5,433) | (35,448) | (560,000) | 25,004 |
Net cash used in continuing investing activities | (2,880,833) | (18,797,430) | (2,564,271) | (107,549) |
Net cash (used in)/provided by discontinued investing activities | 9,150 | 59,705 | (10,565) | (83,963) |
Net cash used in investing activities | (2,871,683) | (18,737,725) | (2,574,836) | (191,512) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from borrowings | 233,287 | |||
Repayment of short-term borrowings | (22,176) | (144,700) | ||
Payment of convertible redeemable preferred shares issuance costs | (3,791) | (15,142) | ||
Proceeds from issuance of convertible debts | 168,070 | 150,000 | ||
Proceeds from IPO and concurrent private placements, net of issuance cost | 1,691,139 | 11,034,685 | ||
Proceeds from follow-on offering, net of issuance cost | 1,531,181 | 9,990,955 | ||
Net cash provided by continuing financing activities | 3,787,080 | 24,710,697 | 5,655,690 | 1,108,658 |
Net cash provided by financing activities | 3,787,080 | 24,710,697 | 5,655,690 | 1,108,658 |
Effects of exchange rate changes on cash and cash equivalents and restricted cash | (57,722) | (376,646) | 53,722 | 3,299 |
Net (decrease)/ increase in cash, cash equivalents and restricted cash | 1,338,871 | 8,736,130 | 1,340,866 | (426,360) |
Cash, cash equivalents and restricted cash at beginning of the year | 220,136 | 1,436,389 | 95,523 | 521,883 |
Cash, cash equivalents and restricted cash at end of the year | 1,559,007 | 10,172,519 | 1,436,389 | 95,523 |
Supplemental schedule of noncash investing and financing activities | ||||
Payable related to acquisition of Chongqing Zhizao | (12,192) | (79,552) | (115,000) | (650,000) |
Receivable from holders of Series B2 convertible redeemable preferred shares | 101,200 | |||
Payable related to purchase of property, plant and equipment | (18,112) | (118,181) | (403,761) | (346,602) |
Payables for issuance costs | (20,929) | |||
Series B1 convertible redeemable preferred shares | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from collection of receivables from holders of convertible redeemable preferred shares | 285,000 | |||
Proceeds from issuance of convertible redeemable preferred shares | 1,510,000 | |||
Series B2 convertible redeemable preferred shares | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from collection of receivables from holders of convertible redeemable preferred shares | 101,200 | |||
Proceeds from issuance of convertible redeemable preferred shares | 790,000 | ¥ 688,800 | ||
Series B3 convertible redeemable preferred shares | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of convertible redeemable preferred shares | 1,701,283 | 1,530,000 | ||
Series C Convertible Redeemable Preferred Shares | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of convertible redeemable preferred shares | 3,626,924 | ¥ 3,626,924 | ||
Series D Convertible Redeemable Preferred Shares | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of convertible redeemable preferred shares | $ 586,936 | ¥ 3,829,757 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
Cash, cash equivalents and restricted cash at end of the year | $ 1,559,007 | ¥ 10,172,519 | $ 220,136 | ¥ 1,436,389 | ¥ 95,523 | ¥ 521,883 |
Less: Cash, cash equivalents and restricted cash of discontinued operations at end of the year | 147 | 331 | ||||
Cash, cash equivalents and restricted cash of continuing operations at end of the year | $ 1,559,007 | ¥ 10,172,519 | ¥ 1,436,242 | ¥ 95,192 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2020 | |
Organization and Nature of Operations | |
Organization and Nature of Operations | 1. Organization and Nature of Operations (a) Li Auto Inc. (“Li Auto”, or the “Company”) was incorporated under the laws of the Cayman Islands in April 2017 as an exempted company with limited liability. The Company, through its consolidated subsidiaries and consolidated variable interest entities (the “VIEs”) and VIEs’ subsidiaries (collectively, the “Group”), is primarily engaged in the design, development, manufacturing, and sales of new energy vehicles in the People’s Republic of China (the “PRC”). (b) Prior to the incorporation of the Company and starting in April 2015, the Group’s business was carried out under Beijing CHJ Information Technology Co., Ltd. (or “Beijing CHJ”) and its subsidiaries. Concurrently with the incorporation of the Company in April 2017, Beijing CHJ, through one of its wholly‑owned subsidiaries, entered into a shareholding entrustment agreement with the management team (the legal owners of the Company at that time) to obtain full control over the Company (the “Cayman Shareholding Entrustment Agreement”). In the same year, the Company set up its subsidiaries Leading Ideal HK Limited (“Leading Ideal HK”), Beijing Co Wheels Technology Co., Ltd. (“Wheels Technology” or “WOFE”), and a consolidated VIE, Beijing Xindian Transport Information Technology Co., Ltd. (“Xindian Information”). The Company, together with its subsidiaries and VIE, were controlled and consolidated by Beijing CHJ prior to the Reorganization. The Group underwent a reorganization (the “Reorganization”) in July 2019. The major reorganization steps are described as follows: · Beijing CHJ terminated the Cayman Shareholding Entrustment Agreement, and concurrently the WOFE entered into contractual agreements with Beijing CHJ and its legal shareholders so that Beijing CHJ became a consolidated VIE of the WOFE; · the Company issued ordinary shares and Series Pre‑A, A‑1, A‑2, A‑3, B‑1, B‑2 and B‑3 convertible redeemable preferred shares to shareholders of Beijing CHJ in exchange for respective equity interests that they held in Beijing CHJ immediately before the Reorganization. All Reorganization related contracts were signed by all relevant parties on July 2, 2019, and all administrative procedures of the Reorganization, including but not limited to remitting share capital of Beijing CHJ overseas for reinjecting into the Company were completed by December 31, 2019. As the shareholdings in the Company and Beijing CHJ were with a high degree of common ownership immediately before and after the Reorganization, even though no single investor controlled Beijing CHJ or Li Auto, the transaction of the Reorganization was determined to be a recapitalization with lack of economic substance, and was accounted for in a manner similar to a common control transaction. Consequently, the financial information of the Group is presented on a carryover basis for all periods presented. The number of outstanding shares in the consolidated balance sheets, the consolidated statements of changes in shareholders’ deficit, and per share information including the net loss per share have been presented retrospectively as of the beginning of the earliest period presented on the consolidated financial statements to be comparable with the final number of shares issued in the Reorganization. Accordingly, the effect of the ordinary shares and the preferred shares issued by the Company pursuant to the Reorganization have been presented retrospectively as of the beginning of the earliest period presented in the consolidated financial statement or the original issue date, whichever is later, as if such shares were issued by the Company when the Group issued such interests. The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries, consolidated VIEs and VIEs’ subsidiaries. As of December 31, 2020, the Company’s principal subsidiaries, consolidated VIEs and VIEs’ subsidiaries are as follows: Equity Interest Held Date of Incorporation or Date of Acquisition Place of Incorporation Principal Activities Subsidiaries: Leading Ideal HK Limited (“Leading Ideal HK”) 100 % May 15, 2017 Hong Kong, China Investment holding Beijing Co Wheels Technology Co., Ltd. (“Wheels Technology”) 100 % December 19, 2017 Beijing, PRC Technology development and corporate management Leading (Xiamen) Private Equity Investment Co., Ltd.(“Xiamen Leading”) 100 % May 14, 2019 Xiamen, PRC Investment holding Beijing Leading Automobile Sales Co., Ltd.(“Beijing Leading”) 100 % August 6, 2019 Beijing, PRC Sales and after sales management VIEs Beijing CHJ Information Technology Co., Ltd. (“Beijing CHJ”) 100 % April 10, 2015 Beijing, PRC Technology development Beijing Xindian Transport Information Technology Co., Ltd. (“Xindian Information”) 100 % March 27, 2017 Beijing, PRC Technology development VIEs’ subsidiaries Jiangsu CHJ Automobile Co., Ltd. (“Jiangsu CHJ”) 100 % June 23, 2016 Changzhou, PRC Purchase of manufacturing equipment Beijing Xindian Intelligence Technology Co., Ltd. (“Beijing XDIT”) 100 % January 05, 2017 Beijing, PRC Technology development Jiangsu Xindian Interactive Sales and Services Co., Ltd. (“Jiangsu XD”) 100 % May 08, 2017 Changzhou, PRC Sales and after sales management Beijing Chelixing Information Technology Co., Ltd. (“Beijing Chelixing”) 100 % June 25, 2018 Beijing, PRC Technology development Chongqing Lixiang Automobile Co., Ltd. (“Chongqing Lixiang Automobile”) 100 % October 11, 2019 Chongqing, PRC Manufacturing of automobile (c) The Company’s subsidiary Wheels Technology has entered into contractual arrangements with Beijing CHJ, Xindian Information (collectively the “VIEs”) and their respective shareholders, through which, the Company exercises control over the operations of the VIEs and receives substantially all of their economic benefits and residual returns. The following is a summary of the contractual arrangements by and among Wheels Technology, the VIEs, and their respective shareholders. Powers of Attorney and Business Operation Agreement. Each shareholder of Beijing CHJ signed a power of attorney to irrevocably authorize Wheels Technology to act as his or her attorney in‑fact to exercise all of his or her rights as a shareholder of Beijing CHJ, including the right to convene shareholder meetings, the right to vote and sign any resolution as a shareholder, the right to appoint directors, supervisors, and officers, and the right to sell, transfer, pledge, and dispose of all or a portion of the equity interest held by such shareholder. These powers of attorney will remain in force for 10 years. Upon request by Wheels Technology, each shareholder of Beijing CHJ shall extend the term of its authorization prior to its expiration. Pursuant to the Business Operation Agreement by and among Wheels Technology, Xindian Information, and each of the shareholders of Xindian Information, Xindian Information will not take any action that may have a material adverse effect on its assets, businesses, human resources, rights, obligations, or business operations without prior written consent of Wheels Technology. Xindian Information and its shareholders further agreed to accept and strictly follow Wheels Technology’s instructions relating to Xindian Information’s daily operations, financial management, and election of directors appointed by Wheels Technology. The shareholders of Xindian Information agree to transfer any dividends or any other income or interests they receive as the shareholders of Xindian Information immediately and unconditionally to Wheels Technology. Unless Wheels Technology terminates this agreement in advance, this agreement will remain effective for 10 years and can be renewed upon request by Wheels Technology prior to its expiration. Xindian Information and its shareholders have no right to terminate this agreement unilaterally. Pursuant to the Business Operation Agreement, each shareholder of Xindian Information has executed a power of attorney to irrevocably authorize Wheels Technology to act as his or her attorney‑in‑fact to exercise all of his or her rights as a shareholder of Xindian Information. The terms of these powers of attorney are substantially similar to the powers of attorney executed by the shareholders of Beijing CHJ described above. Spousal Consent Letters. Spouses of nine shareholders of Beijing CHJ, who collectively hold 100% of equity interests in Beijing CHJ, have each signed a spousal consent letter. Each signing spouse of the relevant shareholder acknowledges that the equity interests in Beijing CHJ held by the relevant shareholder of Beijing CHJ are the personal assets of that shareholder and not jointly owned by the married couple. Each signing spouse also has unconditionally and irrevocably disclaimed his or her rights to the relevant equity interests and any associated economic rights or interests to which he or she may be entitled pursuant to applicable laws, and has undertaken not to make any assertion of rights to such equity interests and the underlying assets. Each signing spouse has agreed and undertaken that he or she will not carry out in any circumstances any conducts that are contradictory to the contractual arrangements and the spousal consent letter. Spouses of nine shareholders of Xindian Information, who collectively hold 98.1% equity interests in Xindian Information, have each signed a spousal consent letter, which includes terms substantially similar to the spousal consent letter relating to Beijing CHJ described above. Exclusive Consultation and Service Agreements. Pursuant to the Exclusive Consultation and Service Agreement by and between Wheels Technology and Beijing CHJ, Wheels Technology has the exclusive right to provide Beijing CHJ with software technology development, technology consulting, and technical services required by Beijing CHJ’s business. Without Wheels Technology’s prior written consent, Beijing CHJ cannot accept any same or similar services subject to this agreement from any third party. Beijing CHJ agrees to pay Wheels Technology an annual service fee at an amount that is equal to 100% of its quarterly net income or an amount that is adjusted in accordance with Wheels Technology’s sole discretion for the relevant quarter and also the mutually agreed amount for certain other technical services, both of which should be paid within 10 days after Wheels Technology sends invoice within 30 days after the end of the relevant calendar quarter. Wheels Technology has exclusive ownership of all the intellectual property rights created as a result of the performance of the Exclusive Consultation and Service Agreement, to the extent permitted by applicable PRC laws. To guarantee Beijing CHJ’s performance of its obligations thereunder, the shareholders have agreed to pledge their equity interests in Beijing CHJ to Wheels Technology pursuant to the Equity Pledge Agreement. The Exclusive Consultation and Service Agreement will remain effective for 10 years, unless otherwise terminated by Wheels Technology. Upon request by Wheels Technology, the term of this agreement can be renewed prior to its expiration. The Exclusive Consultation and Service Agreement by and between Wheels Technology and Xindian Information includes terms substantially similar to the Exclusive Consultation and Service Agreement relating to Beijing CHJ described above. Equity Option Agreements. Pursuant to the Equity Option Agreement by and among Wheels Technology, Beijing CHJ, and each of the shareholders of Beijing CHJ, the shareholders of Beijing CHJ have irrevocably granted Wheels Technology an exclusive option to purchase all or part of their equity interests in Beijing CHJ, and Beijing CHJ has irrevocably granted Wheels Technology an exclusive option to purchase all or part of its assets. Wheels Technology or its designated person may exercise such options to purchase equity interests at the lower of the amount of their respective paid‑in capital in Beijing CHJ and the lowest price permitted under applicable PRC laws. Wheels Technology or its designated person may exercise the options to purchase assets at the lowest price permitted under applicable PRC laws. The shareholders of Beijing CHJ have undertaken that, without Wheels Technology’s prior written consent, they will not, among other things, (i) transfer or otherwise dispose of their equity interests in Beijing CHJ, (ii) create any pledge or encumbrance on their equity interests in Beijing CHJ, (iii) change Beijing CHJ’s registered capital, (iv) merge Beijing CHJ with any other entity, (v) dispose of Beijing CHJ’s material assets (except in the ordinary course of business), or (vi) amend Beijing CHJ’s articles of association. The Exclusive Option Agreement will remain effective for 10 years and can be renewed upon request by Wheels Technology. The Equity Option Agreement by and between Wheels Technology, Xindian Information, and each of the shareholders of Xindian Information includes terms substantially similar to the Equity Option Agreement relating to Beijing CHJ described above. Equity Pledge Agreements. Pursuant to the Equity Pledge Agreement by and between Wheels Technology and the shareholders of Beijing CHJ, the shareholders of Beijing CHJ have agreed to pledge 100% of equity interests in Beijing CHJ to Wheels Technology to guarantee the performance by the shareholders of their obligations under the Exclusive Option Agreement and the Powers of Attorney, as well as the performance by Beijing CHJ of its obligations under the Exclusive Option Agreement, the Powers of Attorney, and payment of services fees to Wheels Technology under the Exclusive Consultation and Service Agreement. In the event of a breach by Beijing CHJ or any shareholder of contractual obligations under the Equity Pledge Agreement, Wheels Technology, as pledgee, will have the right to dispose of the pledged equity interests in Beijing CHJ and will have priority in receiving the proceeds from such disposal. The shareholders of Beijing CHJ also have undertaken that, without prior written consent of Wheels Technology, they will not dispose of, create, or allow any encumbrance on the pledged equity interests. Wheels Technology and the shareholders of Xindian Information entered into an Equity Pledge Agreement, which includes terms substantially similar to the Equity Pledge Agreement relating to Beijing CHJ described above. Registration of the equity pledge relating to Beijing CHJ and Xindian Information with the local branch of the SAMR in accordance with the PRC Property Law has been completed. (d) According to the Guidance Catalogue of Industries for Foreign Investment promulgated in 2017, or the Catalogue, foreign ownership of certain areas of businesses are subject to restrictions under current PRC laws and regulations. For example, foreign investors are not allowed to own more than 50% of the equity interests in a value‑added telecommunication service provider (except for e‑commerce) or in an automaker that manufactures whole vehicles. The Catalogue was amended in 2018 to lift restrictions on foreign investment in new energy vehicle manufacturers. Part of the Group’s business is conducted through the VIEs of the Group, of which the Company is the ultimate primary beneficiary. In the opinion of the management, the contractual arrangements with the VIEs and the nominee shareholders are in compliance with PRC laws and regulations and are legally binding and enforceable. The nominee shareholders indicate they will not act contrary to the contractual arrangements. However, there are substantial uncertainties regarding the interpretation and application of the PRC laws and regulations including those that govern the contractual arrangements, which could limit the Group’s ability to enforce these contractual arrangements and if the nominee shareholders of the VIEs were to reduce their interests in the Group, their interest may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual arrangements. It is possible that the Group’s operations of certain of its businesses through the VIEs could be found by the PRC authorities to be in violation of the PRC laws and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. While the Group’s management considers the possibility of such a finding by PRC regulatory authorities under current PRC law and regulations to be remote, on March 15, 2019, the National People’s Congress adopted the Foreign Investment Law of the PRC, which came into effect on January 1, 2020 and replaced the trio of existing laws regulating foreign investment in China, namely, the Sino‑foreign Equity Joint Venture Enterprise Law, the Sino‑foreign Cooperative Joint Venture Enterprise Law, and the Wholly Foreign‑invested Enterprise Law, together with their implementation rules and ancillary regulations. The Foreign Investment Law of the PRC embodies an expected PRC regulatory trend to rationalize its foreign investment regulatory regime in line with prevailing international practice and the legislative efforts to unify the corporate legal requirements for both foreign and domestic investments. However, since it is relatively new, uncertainties still exist in relation to its interpretation and implementation. For example, the Foreign Investment Law of the PRC adds a catch‑all clause to the definition of “foreign investment” so that foreign investment, by its definition, includes “investments made by foreign investors in China through other means defined by other laws or administrative regulations or provisions promulgated by the State Council” without further elaboration on the meaning of “other means”. It leaves leeway for the future legislations promulgated by the State Council to provide for contractual arrangements as a form of foreign investment. It is therefore uncertain whether the Group’s corporate structure will be seen as violating the foreign investment rules as the Group are currently leveraging the contractual arrangements to operate certain businesses in which foreign investors are prohibited from or restricted to investing. Furthermore, if future legislations prescribed by the State Council mandate further actions to be taken by companies with respect to existing contractual arrangement, the Group may face substantial uncertainties as to whether the Group can complete such actions in a timely manner, or at all. If the Group fail to take appropriate and timely measures to comply with any of these or similar regulatory compliance requirements, the Group’s current corporate structure, corporate governance and business operations could be materially and adversely affected. If the Group’s corporate structure or the contractual arrangements with the VIEs were found to be in violation of any existing or future PRC laws and regulations, the PRC regulatory authorities could, within their respective jurisdictions: · revoke the business licenses and/or operating licenses of such entities; · discontinue or place restrictions or onerous conditions on the Group’s operation through any transactions between the PRC subsidiaries and the VIEs; · impose fines, confiscate the income from the PRC subsidiaries or the VIEs, or imposing other requirements with which the VIEs may not be able to comply; · require the Group to restructure the ownership structure or operations, including terminating the contractual arrangements with the VIEs and deregistering the equity pledges of the VIEs, which in turn would affect the Group’s ability to consolidate, derive economic interests from, or exert effective control over the VIEs; · restrict or prohibit the Group’s use of the proceeds of this offering to finance the Group’s business and operations in China; or · take other regulatory or enforcement actions that could be harmful to the Group’s business. The imposition of any of these penalties may result in a material and adverse effect on the Group’s ability to conduct the Group’s businesses. In addition, if the imposition of any of these penalties causes the Group to lose the right to direct the activities of any of the VIEs (through its equity interests in its subsidiaries) or the right to receive their economic benefits, the Group will no longer be able to consolidate the relevant VIEs and its subsidiaries, if any. In the opinion of management, the likelihood of loss in respect of the Group’s current ownership structure or the contractual arrangements with its VIEs is remote. The Group’s operations depend on the VIEs and their nominee shareholders to honor their contractual arrangements with the Group. These contractual arrangements are governed by PRC law and disputes arising out of these agreements are expected to be decided by arbitration in the PRC. The management believes that each of the contractual arrangements constitutes valid and legally binding obligations of each party to such contractual arrangements under the PRC laws. However, the interpretation and implementation of the laws and regulations in the PRC and their application on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIEs or the nominee shareholders of the VIEs fail to perform their obligations under those arrangements. The following consolidated financial information of the Group's VIEs and VIEs' subsidiaries as of December 31, 2019 and 2020 and for the years ended December 31, 2018, 2019 and 2020 were included in the accompanying Group's consolidated financial statements as follows: As of December 31, 2019 2020 RMB RMB Current assets: Cash and cash equivalents 240,933 1,546,193 Restricted cash 14,455 1,234,178 Short‑term investments 1,278,153 2,581,690 Trade receivable 8,303 103,271 Intra‑group receivables 1,927,560 7,704,630 Inventories 389,031 271,379 Prepayments and other current assets 556,112 254,061 Assets held for sale, current 17,599 — Non‑current assets: Long‑term investments 600,615 707,685 Property, plant and equipment, net 1,755,686 2,335,824 Operating lease right‑of‑use assets, net 508,871 1,182,134 Intangible assets, net 673,517 682,083 Other non‑current assets 130,749 218,531 Assets held for sale, non‑current 30,253 — Total assets 8,131,837 18,821,659 Current liabilities: Short‑term borrowings 238,957 — Trade and notes payable 616,340 3,107,646 Intra‑group payable 3,732,883 12,203,705 Amounts due to related parties 5,469 19,206 Operating lease liabilities, current 176,669 170,033 Finance lease liabilities, current 360,781 — Deferred revenue, current 56,695 230,720 Accruals and other current liabilities 660,010 453,731 Convertible debts, current 692,520 — Liabilities held for sale, current 2,862 — Non‑current liabilities: Long-term borrowings — 511,638 Deferred revenue, non‑current 5,943 102,898 Operating lease liabilities, non‑current 241,109 973,455 Finance lease liabilities, non‑current — 366,883 Deferred tax liabilities — 36,309 Other non‑current liabilities 5,519 157,907 Total liabilities 6,795,757 18,334,131 These balances have been reflected in the Group’s consolidated financial statements with intercompany transactions eliminated. For the Year Ended December 31, 2018 2019 2020 Net loss from continuing operations (1,076,613) (1,234,283) (495,209) Net (loss)/income from discontinued operations (367,022) (20,662) 14,373 For the Year Ended December 31, 2018 2019 2020 Net cash (used in)/provided by operating activities (1,223,050) (1,607,435) 3,540,411 Net cash used in investing activities (214,027) (1,976,964) (1,665,982) Net cash provided by financing activities 1,019,824 3,782,378 650,595 Effects of exchange rate changes on cash, cash equivalents and restricted cash (1,320) 19,746 (188) Net (decrease)/increase in cash, cash equivalents and restricted cash (418,573) 217,725 2,524,836 Cash, cash equivalents and restricted cash at beginning of the year 456,383 37,810 255,535 Cash, cash equivalents and restricted cash at end of the year 37,810 255,535 2,780,371 Less: Cash, cash equivalents and restricted cash of discontinued operations at end of the year 331 147 — Cash, cash equivalents and restricted cash of continuing operations at end of the year 37,479 255,388 2,780,371 The Company’s involvement with the VIEs is through the contractual arrangements disclosed in Note 1(c). All recognized assets held by the VIEs are disclosed in the table above. In accordance with the contractual arrangements between Wheels Technology, the VIEs and the VIEs’ shareholders, Wheels Technology has the power to direct activities of the Group’s consolidated VIEs and VIEs’ subsidiaries and can have assets transferred out of the Group’s consolidated VIEs and VIEs’ subsidiaries. Therefore, it is considered that there is no asset in the Group’s consolidated VIEs and VIEs’ subsidiaries that can be used only to settle their obligations except for registered capitals and PRC statutory reserves of the Group’s consolidated VIEs amounting to RMB6,429,134 and RMB7,930,831 as of December 31, 2019 and 2020, respectively. As the Group’s consolidated VIEs and VIEs’ subsidiaries are incorporated as limited liability companies under the PRC Company Law, the creditors do not have recourse to the general credit of Wheels Technology for all the liabilities of the Group’s consolidated VIEs and VIEs’ subsidiaries. The total shareholders’ deficit of the Group’s consolidated VIEs and VIEs’ subsidiaries was RMB3,296,997 and RMB3,772,758 as of December 31, 2019 and 2020, respectively. Currently there is no contractual arrangement that could require the Company, Wheels Technology or other subsidiaries of the Company to provide additional financial support to the Group’s consolidated VIEs and VIEs’ subsidiaries. As the Company is conducting certain businesses in the PRC through the consolidated VIEs and VIEs’ subsidiaries, the Company may provide additional financial support on a discretionary basis in the future, which could expose the Group to a loss. (e) Due to the COVID-19 pandemic and the related nationwide precautionary and control measures that were adopted in China starting in January 2020, the Company postponed the production in its Changzhou manufacturing facility after the Chinese New Year holiday in February 2020, and also experienced short term delays in the suppliers' delivery of certain raw materials needed for production. Subsequent to March 31, 2020, the Group continuously increased their production capacity and delivery to normal level as the Group had recovered from the adverse impact of COVID-19 across China. The Group concluded that there would be no material impact on the Group's long-term forecast . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies (a) The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Significant accounting policies followed by the Group in the preparation of its accompanying consolidated financial statements are summarized below. (b) The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIEs and VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power; has the power to appoint or remove the majority of the members of the board of directors (the “Board”); to cast majority of votes at the meeting of the Board or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All significant transactions and balances between the Company, its subsidiaries, VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. (c) The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenue and expenses during the reported period in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group's consolidated financial statements mainly include, but are not limited to, standalone selling price of each distinct performance obligation in revenue recognition and determination of the amortization period of these obligations, the valuation of share-based compensation arrangements, fair value of investments, fair value of warrant liabilities and derivative liabilities, useful lives of property, plant and equipment, useful lives of intangible assets, assessment for impairment of long-lived assets, the collectability of financial assets, lower of cost and net realizable value of inventories, product warranties, determination of vendor rebate, assessment of variable lease payment, and valuation allowance for deferred tax assets. Actual results could differ from those estimates . (d) The Group’s reporting currency is the Renminbi (“RMB”). The functional currency of the Company and its subsidiary which is incorporated in Hong Kong is United States dollars (“US $ ”). The functional currencies of the other subsidiaries, the VIEs and VIEs’ subsidiaries are their respective local currencies. The determination of the respective functional currency is based on the criteria set out by ASC 830, Foreign Currency Matters . Transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated into functional currency using the applicable exchange rates at the balance sheet date. Non‑monetary items that are measured in terms of historical cost in foreign currency are measured using the exchange rates at the dates of the initial transactions. The financial statements of the Group’s entities of which the functional currency is not RMB are translated from their respective functional currency into RMB. Assets and liabilities denominated in foreign currencies are translated into RMB at the exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Income and expense items are translated into RMB using the periodic average exchange rates. The resulting foreign currency translation adjustments are recorded in other comprehensive income in the consolidated statements of comprehensive loss, and the accumulated foreign currency translation adjustments are presented as a component of accumulated other comprehensive income in the consolidated statements of shareholders’ deficit. Total foreign currency translation adjustment income were RMB12,954, and RMB2,851 for the years ended December 31, 2018 and 2019, respectively, and the foreign currency translation adjustment loss was RMB1,020,728 for the year ended December 31, 2020. (e) Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive loss and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2020 are solely for the convenience of the reader and were calculated at the rate of US$ 1.00 = RMB6.5250, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2020. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. (f) Cash and cash equivalents represent cash on hand, time deposits and highly liquid investments placed with banks or other financial institutions, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less. As of December 31, 2019 and 2020, the Group had cash held in accounts managed by online payment platforms such as China Union Pay in connection with the collection of vehicle sales for a total amount of RMB5,243 and RMB17,844, respectively, which have been classified as cash and cash equivalents on the consolidated financial statements. Cash that is restricted as to withdrawal for use or pledged as security is reported separately on the face of the consolidated balance sheets and is not included in the total cash and cash equivalents in the consolidated statements of cash flows. The Group’s restricted cash mainly represents (a) the secured deposits held in designated bank accounts for issuance of letter of credit, bank guarantee and bank acceptance bill; (b) the deposits held in designated bank accounts for security of the repayment of the notes payable (Note 13). Cash, cash equivalents and restricted cash as reported in the consolidated statements of cash flows are presented separately on our consolidated balance sheets as follows: As of December 31, 2019 2020 Cash and cash equivalents 1,296,215 8,938,341 Restricted cash 140,027 1,234,178 Total cash, cash equivalents and restricted cash of continuing operations 1,436,242 10,172,519 (g) Time deposits are those balances placed with the banks with original maturities longer than three months but less than one year. Short‑term investments are investments in financial instruments with variable interest rates. These financial instruments have maturity dates within one year and are classified as short‑term investments. The Group elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Fair value is estimated based on quoted prices of similar financial products provided by financial institutions at the end of each period. Changes in the fair value are reflected in the consolidated statements of comprehensive loss as “Investment income, net”. (h) Trade receivable primarily include amounts of vehicle sales related to government subsidy to be collected from government on behalf of customers. The Group provides an allowance against trade receivable to the amount we reasonably believe will be collected. The Group writes off trade receivable when they are deemed uncollectible. No allowance for doubtful accounts were recognized for the years ended December 31, 2018, 2019 and 2020. (i) Inventories are stated at the lower of cost or net realizable value. Cost is calculated on the weighted average basis and includes all costs to acquire and other costs to bring the inventories to their present location and condition. The Group records inventory write‑downs for excess or obsolete inventories based upon assumptions on current and future demand forecasts. If the inventory on hand is in excess of future demand forecast, the excess amounts are written off. The Group also reviews inventory to determine whether its carrying value exceeds the net amount realizable upon the ultimate sale of the inventory. This requires the determination of the estimated selling price of the vehicles less the estimated cost to convert inventory on hand into a finished product. Once inventory is written‑down, a new, lower‑cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. No inventory write‑downs were recognized for the years ended December 31, 2018, 2019 and 2020. (j) The Group classifies long‑lived assets as held for sale in the period that (i) it has approved and committed to a plan to sell the asset or asset group (“asset”), (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated, (iv) the sale of the asset is probable and transfer of the asset is expected to qualify for recognition as a completed sale within one year (subject to certain events or circumstances), (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Group initially and subsequently measures a long‑lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in impairment of long‑lived assets in the period in which the held for sale criteria are met. Conversely, gains are generally not recognized on the sale of a long‑lived asset until the date of sale. Upon designation as an asset held for sale, the Group stops recording depreciation expense on the asset. The Group assesses the fair value of assets held for sale less any costs to sell at each reporting period until the asset is no longer classified as held for sale. (k) Property, plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any. Property, plant and equipment are depreciated at rates sufficient to write off their costs less impairment and residual value, if any, over their estimated useful lives on a straight‑line basis. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Direct costs that are related to the construction of property, equipment and software and incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property, equipment and software items and the depreciation of these assets commences when the assets are ready for their intended use. The estimated useful lives are as follows: Useful Lives Buildings 20 years Buildings improvements 5 to 10 years Production facilities 5 to 10 years Equipment 3 to 5 years Motor vehicles 4 years Mold and tooling Unit-of-production Leasehold improvements Shorter of the estimated useful life or lease term The cost of maintenance and repairs is expensed as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, plant and equipment is capitalized as additions to the related assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from their respective accounts, and any gain or loss on such sale or disposal is reflected in the consolidated statements of comprehensive loss. (l) Intangible assets are carried at cost less accumulated amortization and impairment, if any. Intangible assets are amortized using the straight‑line method over the estimated useful lives as below: Useful Lives Automotive Manufacturing Permission Indefinite Software and Patents 5 to 10 years (m) Long‑lived assets include property, plant and equipment and intangible assets with definite lives. Long‑lived assets are assessed for impairment, whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate the carrying value of an asset may not be recoverable in accordance with ASC360. The Company measures the carrying amount of long‑lived assets against the estimated undiscounted future cash flows associated with it. The impairment exists when the estimated undiscounted future cash flows are less than the carrying value of the asset being evaluated. Impairment loss is calculated as the amount by which the carrying value of the asset exceeds its fair value. Nil, RMB18,066 and RMB30,381 impairment of long‑lived assets were recognized for the years ended December 31, 2018, 2019 and 2020, respectively. Intangible assets with indefinite lives are tested for impairment at least annually and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired in accordance with ASC 350. The Company first performs a qualitative assessment to assess all relevant events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite‑lived intangible asset. If after performing the qualitative assessment, the Company determines that it is more likely than not that the indefinite‑lived intangible asset is impaired, the Company calculates the fair value of the intangible asset and perform the quantitative impairment test by comparing the fair value of the asset with its carrying amount. If the carrying amount of an indefinite‑lived intangible asset exceeds its fair value, the Company recognizes an impairment loss in an amount equal to that excess. No impairment of indefinite‑lived intangible assets was recognized for the years ended December 31, 2018, 2019 and 2020. (n) Long‑term investments Long‑term investments are comprised of investments in publicly traded companies and privately‑held companies. The Group adopted ASU 2016‑01 on January 1, 2018. The Group measures equity investments other than equity method investments at fair value through earnings. For those equity investments without readily determinable fair values, the Group elects to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Under this measurement alternative, changes in the carrying value of the equity investment are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The implementation guidance notes that an entity should make a “reasonable efforts” to identify price changes that are known or that can reasonably be known. Pursuant to ASC 321, for equity investments measured at fair value with changes in fair value recorded in earnings, the Group does not assess whether those securities are impaired. For those equity investments that the Group elects to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss equal to the difference between the carrying value and fair value. Investments in entities over which the Group can exercise significant influence and hold an investment in common shares or in‑substance common shares (or both) of the investee but do not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC topic 323, Investment—Equity Method and Joint Ventures (“ASC 323”). Under the equity method, the Group initially records its investments at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill, which is included in the equity method investment on our consolidated balance sheets. The Group subsequently adjusts the carrying amount of the investments to recognize our proportionate share of each equity investee’s net income or loss into earnings after the date of investment. The Group evaluates the equity method investments for impairment under ASC 323. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other‑than‑temporary. The Group assesses its investments in privately‑held companies for impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the companies, including current earnings trends and undiscounted cash flows, and other company‑specific information, such as recent financing rounds. The fair value determination, particularly for investments in privately‑held companies whose revenue model is still unclear, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments. If this assessment indicates that an impairment exists, the Group estimates the fair value of the investment and writes down the investment to its fair value, taking the corresponding charge to the consolidated statements of comprehensive loss. (o) Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries and VIEs and VIEs’ subsidiaries of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. Total amounts of such employee benefit expenses, which were expensed as incurred, were approximately RMB110,800, RMB168,019 and RMB133,162 for the years ended December 31, 2018, 2019 and 2020, respectively. (p) The Group provides product warranties on all new vehicles based on the contracts with its customers at the time of sale of vehicles. The Group accrues a warranty reserve for the vehicles sold, which includes the best estimate of projected costs to repair or replace items under warranties. These estimates are primarily based on the estimates of the nature, frequency and average costs of future claims. These estimates are inherently uncertain given the Group’s relatively short history of sales, and changes to the historical or projected warranty experience may cause material changes to the warranty reserve in the future. The portion of the warranty reserve expected to be incurred within the next 12 months is included within the accrued and other current liabilities while the remaining balance is included within other non‑current liabilities in the consolidated balance sheets. Warranty cost is recorded as a component of cost of sales in the consolidated statements of comprehensive loss. The Group reevaluates the adequacy of the warranty accrual on a regular basis. The Group recognizes the benefit from a recovery of the costs associated with the warranty when specifics of the recovery have been agreed with the Group’s suppliers and the amount of the recovery is virtually certain. The accrued warranty activity consists of the following (in thousands): For the Year Ended December 31, 2018 2019 2020 Accrued warranty at beginning of the year — — 6,996 Warranty cost incurred — (163) (8,258) Provision for warranty — 7,159 234,628 Accrued warranty at end of the year — 6,996 233,366 Including: Accrued warranty, current — 1,477 55,138 Accrued warranty, non-current — 5,519 178,228 (q) The Group launched the first volume manufactured extended‑range electric vehicle, Li ONE, to the public in October 2018 and started making deliveries to customers in the fourth quarter of 2019. Revenues of the Group is primarily derived from sales of vehicle and embedded products and services, as well as the sales of Li Plus Membership. The Group adopted ASC 606, Revenue from Contracts with Customers , on January 1, 2018 by applying the full retrospective method. Revenue is recognized when or as the control of the goods or services is transferred to a customer. Depending on the terms of the contract and the laws that apply to the contract, control of the goods and services may be transferred over time or at a point in time. Control of the goods and services is transferred over time if the Group’s performance: · provides all of the benefits received and consumed simultaneously by the customer; · creates and enhances an asset that the customer controls as the Group performs; or · does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. If control of the goods and services transfers over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the goods and services. Contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenue to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices based on the prices charged to customers. If the standalone selling price is not directly observable, it is estimated using expected cost plus a margin, depending on the availability of observable information. Assumptions and estimations have been made in estimating the relative selling price of each distinct performance obligation, and changes in judgments on these assumptions and estimates may impact the revenue recognition. When either party to a contract has performed, the Group presents the contract in the statement of financial position as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment. A contract asset is the Group’s right to consideration in exchange for goods and services that the Group has transferred to a customer. A receivable is recorded when the Group has an unconditional right to consideration. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. If a customer pays consideration or the Group has a right to an amount of consideration that is unconditional, before the Group transfers a good or service to the customer, the Group presents the contract liability when the payment is made, or a receivable is recorded (whichever is earlier). A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. Vehicle sales The Group generates revenue from sales of vehicles, currently the Li ONE, together with a number of embedded products and services. There are multiple distinct performance obligations explicitly stated in the sales contracts including sales of Li ONE, charging stalls, vehicle internet connection services, firmware over‑the‑air upgrades (or “FOTA upgrades”) and initial owner extended lifetime warranty subject to certain conditions, which are accounted for in accordance with ASC 606. The standard warranty provided by the Group is accounted for in accordance with ASC 460, Guarantees , and the estimated costs are recorded as a liability when the Group transfers the control of Li ONE to a customer. Customers only pay the amount after deducting the government subsidies to which they are entitled for the purchase of new energy vehicles, which is applied on their behalf and collected by the Group from the government according to the applicable government policy. The Group has concluded that government subsidies should be considered as a part of the transaction price it charges the customers for the new energy vehicles, as the subsidy is granted to the purchaser of the new energy vehicles and the purchaser remains liable for such amount in the event the subsidies were not received by the Group due to his fault such as refusal or delay of providing application information. The overall contract price is allocated to each distinct performance obligation based on the relative estimated standalone selling price in accordance with ASC 606. The revenue for sales of the Li ONE and charging stalls are recognized at a point in time when the control of the product is transferred to the customer. For the vehicle internet connection service and FOTA upgrades, the Group recognizes the revenue using a straight‑line method over the service period. As for the initial owner extended lifetime warranty, given the limited operating history and lack of historical data, the Group recognizes the revenue over time based on a straight‑line method over the extended warranty period initially, and will continue monitoring the cost pattern periodically and adjust the revenue recognition pattern to reflect the actual cost pattern as it becomes available. As the contract price for the vehicle and all embedded products and services must be paid in advance, which means the payments are received prior to the transfer of goods or services by the Group, the Group records a contract liability (deferred revenue) for the allocated amount regarding those unperformed obligations. Sales of Li Plus Membership The Group also sells the Li Plus Membership to enrich the ownership experience of customers. Total Li Plus Membership fee is allocated to each performance obligation based on the relative estimated standalone selling price. And the revenue for each performance obligation is recognized either over the service period or at a point in time when the relevant goods or service is delivered or when the membership expired, whichever is earlier. Customer loyalty points Beginning in January 2020, the Group offers customer loyalty points, which can be used in the Group's online store to redeem the Group's merchandise or services. The Group determines the value of each customer loyalty point based on cost of the Group's merchandise or service that can be obtained through redemption of customer loyalty points. The Group concludes the customer loyalty points offered to customers in connection with the purchase of the Li ONE is a material right and is considered as a separate performance obligation according to ASC 606 , and should be taken into consideration when allocating the transaction price of the sales of vehicle. The amount allocated to the customer loyalty points as separate performance obligation is recorded as contract liability (deferred revenue) and revenue should be recognized when the customer loyalty points are used or expired. Customers or users of the mobile application can also obtain customer loyalty points through other ways, such as referring new customers to purchase the vehicles via the mobile application. The Group offers these customer loyalty points to encourage user engagement and generate market awareness. As a result, the Group accounts for such points as selling and marketing expenses with a corresponding liability recorded under accruals and other current liabilities upon the points offering. Practical expedients and exemptions The Group elects to expense the costs to obtain a contract as incurred given the majority of the contract considerations for vehicle sales are allocated to the sales of Li ONE and recognized as revenue upon transfer of control of the vehicles, which is within one year after entering the sales contracts. (r) Cost of sales consists of direct production and material costs, labor costs, manufacturing overhead (including depreciation of assets associated with the production), shipping and logistic costs and reserves for estimated warranty costs. The cost of sales also includes adjustments to warranty costs and charges to write‑down the carrying value of the inventory when it exceeds its estimated net realizable value and to provide for on‑hand inventory that is either obsolete or in excess of forecasted demand. (s) Research and development ("R&D") expenses are primary comprised of salaries, bonuses and benefits for those employees engaged in research, design and development activities; design and development expenses, primarily including consultation fees, validation and testing fees; depreciation and amortization expenses of equipment and software of R&D activities and other expenses. R&D costs are expensed as incurred . (t) Sales and marketing expenses consist primarily of salaries and other compensation related expenses for sales and marketing personnel, marketing and promotional expenses, rental and related expenses for retail stores and delivery and servicing centers and other expenses. (u) General and administrative expenses consist primarily of salaries, bonuses and benefits for employees involved in general corporate functions, including finance, legal and human resources, depreciation and amortization expenses primarily relating to leasehold improvements, factory buildings, facilities, and equipment prior to the start of production, rental and other general corporate related expenses. (v) Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be either recorded or disclosed at fair value, the Group considers the principal or most advantageous market in which it would transact, and it also considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2—Observable, market‑based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3—Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market‑based or independently sourced market parameters, such as interest rates and currency rates. (w) The Company grants share options to eligible employees, directors and consultants and accounts for share‑based compensation in accordance with ASC 718, Compensation—Stock Compensation . Employees' share-based compensation awards granted with service conditions and the occurrence of an IPO as performance condition, are measured at the grant date fair value. Cumulative share-based compensation expenses for the options that have satisfied the service condition should be recorded upon the completion of the IPO, using the graded-vesting method. This performance condition was met upon the completion of the Company’ IPO in August 2020 and the associated share-based compensation expense for awards vested as of that date were r |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 (ASU 2016-13), Financial Instruments-Credit Losses, which introduces new guidance for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments, including, but not limited to, trade and other receivables, held-to-maturity debt securities, loans and net investments in leases. The new guidance also modifies the impairment model for available-for-sale debt securities and requires the entities to determine whether all or a portion of the unrealized loss on an available-for-sale debt security is a credit loss. The standard also indicates that entities may not use the length of time a security has been in an unrealized loss position as a factor in concluding whether a credit loss exists. In October 2019, the FASB issued ASU No. 2019-10 (ASU 2019-10), Financial Instruments-Credit Losses, which amends the effective date for Credit Losses as follows. Public business entities that meet the definition of an SEC filer, excluding entities eligible to be SRCs as defined by the SEC, for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All other entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for all entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Group will adopt the ASU 2016-13 on January 1, 2021 using a modified retrospective method for all financial assets measured at amortized cost. The Group assessed that trade receivable, prepayments and other current assets, and other non-current assets are within the scope of ASC Topic 326. The Group has identified the relevant risk characteristics of trade receivables, prepayments and other current assets, and other non-current assets which include size, type of the services or the products the Group provides, or a combination of these characteristics, the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the lifetime expected credit losses, etc. The Group assessed there were no significant expected credit losses identified to impact the consolidated financial statements from January 1, 2021 . In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, to remove specific exceptions to the general principles in Topic 740 and to simplify accounting for income taxes. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Group will adopt this ASU from January 1, 2021. The ASU is currently not expected to have a material impact on the consolidated financial statements. |
Concentration and Risks
Concentration and Risks | 12 Months Ended |
Dec. 31, 2020 | |
Concentration and Risks | |
Concentration and Risks | 4. Concentration and Risks (a) Assets that potentially subject the Group to significant concentrations of credit risk primarily consist of cash and cash equivalents, restricted cash, time deposits and short-term investments . The maximum exposure of such assets to credit risk is their carrying amounts as of the balance sheet dates. As of December 31, 2019 and 2020, most of the Group’s cash and cash equivalents, restricted cash and time deposits and short‑term investments were held by major financial institutions located in the PRC and Hong Kong which management believes are of high credit quality. The PRC does not have an official deposit insurance program, nor does it have an agency similar to the Federal Deposit Insurance Corporation (“FDIC”) in the United States. However, the Group believes that the risk of failure of any of these PRC banks is remote. Bank failure is uncommon in China and the Group believes that those Chinese banks that hold the Group’s cash and cash equivalents, restricted cash and time deposits and short‑term investments are financially sound based on publicly available information. (b) The PRC government imposes controls on the convertibility of RMB into foreign currencies. The Group’s cash and cash equivalents, restricted cash and time deposits and short‑term investments denominated in RMB that are subject to such government controls amounted to RMB1,646,275 and RMB 5,384,769 as of December 31, 2019 and 2020, respectively. The value of RMB is subject to changes in the central government policies and to international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (the “PBOC”). Remittances in currencies other than RMB by the Group in the PRC must be processed through PBOC or other Chinese foreign exchange regulatory bodies which require certain supporting documentation in order to process the remittance. (c) Since July 21, 2005, the RMB has been permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies, and the RMB appreciated more than 15% against the US$ over the following three years. Between July 2008 and June 2010, this appreciation halted and the exchange rate between the RMB and the US$ remained within a narrow band. Since June 2010, the RMB has fluctuated against the US$, at times significantly and unpredictably. The appreciation of the RMB against the US$ was approximately 5.8% in 2017. The depreciation of the RMB against the US$ was approximately 5.0% and 1.6% in 2018 and 2019, respectively and the appreciation of the RMB against the US$ was approximately 6.5% in 2020. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the US$ in the future. |
Acquisition of Chongqing Zhizao
Acquisition of Chongqing Zhizao | 12 Months Ended |
Dec. 31, 2020 | |
Acquisition of Chongqing Zhizao | |
Acquisition of Chongqing Zhizao | 5. Acquisition of Chongqing Zhizao On December 28, 2018, the Company, through a wholly‑owned subsidiary of Beijing CHJ, Chongqing Xinfan Machinery Co., Ltd. (the “Buyer” or “Xinfan”), entered into an acquisition agreement (the “Lifan Acquisition Agreement”) with Lifan Industry (Group) Co., Ltd. (“Lifan Industry” or the “Seller”) and its two wholly‑owned subsidiaries Chongqing Zhizao (the “Target”) and Chongqing Lifan Passenger Vehicle Co., Ltd. (“Lifan Passenger Vehicle” or the “Divestiture Recipient”), to acquire 100% equity interest of Chongqing Zhizao (the “Acquisition”). Chongqing Zhizao was formerly known as Chongqing Lifan Automobile Co., Ltd. Prior to the completion of the Acquisition, Chongqing Zhizao transferred most of its assets and liabilities and the related rights and obligations to Lifan Passenger Vehicle in November 2018 (the “Divestiture”). After the Divestiture, Chongqing Zhizao still retained its Automotive Manufacturing Permission, working capitals and certain lease contracts, and other financial assets or liabilities (hereinafter referred to as “Retained Assets and Liabilities”). Key operating assets including plants, equipment, vehicle design and development technologies and raw materials had been transferred out from Chongqing Zhizao to Lifan Industry or Lifan Passenger Vehicle prior to the Acquisition. All employee contracts, operational systems and processes have also been transferred to Lifan Passenger Vehicle. No system, standard, protocol, convention, or rule that can create or has the ability to contribute to the creation of outputs were obtained by Xinfan. This Acquisition is determined to be an asset acquisition as no sufficient inputs and processes were acquired to produce outputs. The Acquisition was completed on December 29, 2018 (the “Acquisition Date”) when the legal procedures were completed. Total consideration for the Acquisition was RMB650,000 in cash, of which RMB535,000 was paid in 2019 and RMB35,448 was paid in August 2020. The remaining consideration of RMB79,552 will be paid in 2021. On December 19, 2019, Xinfan entered into a share transfer agreement (the “Lifan Disposal Agreement”) to dispose 100% equity interest of Chongqing Zhizao, with cash consideration of RMB0.001. The Retained Assets and Liabilities of Chongqing Zhizao not related to the manufacturing of Li ONE were transferred out upon the completion of the disposal of Chongqing Zhizao. A disposal loss of RMB4,503 was recognized on December 26, 2019, the disposal date of the transaction. The following table summarizes the balance of the assets acquired and liabilities assumed as of the date of acquisition and disposed as of the date of disposal, respectively: As of the Date As of the Date of Acquisition of Disposal Cash and cash equivalents and restricted cash 25,004 119 Short‑term borrowing(1) (20,000) (18,115) Working capital(2) (382,350) (177,231) Finance lease liabilities, current(3) (66,111) (76,654) Finance lease liabilities, non‑current(3) (19,547) — Indemnification Receivables(4) 465,830 276,384 Net assets acquired/disposed 2,826 4,503 Intangible assets: Automotive Manufacturing Permission(5) 647,174 — Total 650,000 4,503 (1) Short‑term borrowing represents the outstanding bank loan principal, with the amount of RMB20,000 due by February 7, 2019, of which RMB1,885 has been repaid as of December 26, 2019. (2) Working capital primarily included prepayments, trade payables, notes payable and accrued liabilities. (3) Chongqing Zhizao had existing lease agreements with two third‑party lessors for certain manufacturing equipment, which had been accounted for as finance lease. (4) The balance represents the receivables from Lifan Passenger Vehicle intended to indemnify for all the Retained Assets and Liabilities that could not be legally transferred out before the Acquisition. (5) As there’s no limit to the valid period of the Automotive Manufacturing Permission, the Automotive Manufacturing Permission was classified as an intangible asset with indefinite lives. As of December 31, 2019 and 2020, no impairment was recognized for the Automotive Manufacturing Permission. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventories | |
Inventories | 6. Inventories Inventories consist of the following: As of December 31, 2019 2020 Finished products 144,543 820,168 Raw materials, work in process and supplies 373,543 227,836 Total 518,086 1,048,004 Raw materials, work in process and supplies as of December 31, 2019 and 2020 primarily consist of materials for volume production which will be transferred into production cost when incurred as well as spare parts used for after sales services. Finished products included vehicles ready for transit at production plants, vehicles in transit to fulfil customers’ orders, new vehicles available for immediate sales at the Group’s sales and servicing center locations. |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepayments and Other Current Assets | |
Prepayments and Other Current Assets | 7. Prepayments and Other Current Assets Prepayments and other current assets consist of the following: As of December 31, 2019 2020 Deductible VAT input 495,150 196,021 Prepayments to vendors 217,883 104,271 Prepaid rental and deposits 67,969 30,357 Loan receivable from Lifan Holdings(1) 8,000 8,000 Others 23,954 15,006 Total 812,956 353,655 (1) Loan receivable from Lifan Holdings will be repaid when the Group pays the remaining consideration of the Acquisition, as stipulated in the loan agreement. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment, Net. | |
Property, Plant and Equipment, Net | 8. Property, Plant and Equipment, Net Property, plant and equipment and related accumulated depreciation were as follows: As of December 31, 2019 2020 Mold and tooling 950,140 987,316 Production facilities 904,239 787,970 Buildings 431,075 404,772 Buildings improvements 307,174 311,947 Leasehold improvements 139,118 249,879 Equipment 138,102 175,887 Construction in process 110,341 53,579 Motor vehicles 28,384 36,409 Total 3,008,573 3,007,759 Less: Accumulated depreciation (195,385) (498,691) Less: Accumulated impairment loss (18,066) (30,381) Total property, plant and equipment, net 2,795,122 2,478,687 The Group recorded depreciation expenses of RMB55,897, RMB107,173 and RMB312,011 for the years ended December 31, 2018, 2019 and 2020, respectively. An impairment of nil, RMB18,066 and RMB30,381 was recognized for property, plant and equipment for the years ended December 31, 2018, 2019 and 2020, respectively. The Group made a full impairment provision on the production facilities and leasehold improvements in connection with the production of electric battery as the Group determined to terminate the design, development and self-production of electric battery via one of the Group’s subsidiaries. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets, Net | |
Intangible Assets, Net | 9. Intangible Assets, Net Intangible assets and related accumulated amortization were as follows: As of December 31, 2019 2020 Automotive Manufacturing Permission (Note 5) 647,174 647,174 Indefinite‑lived intangible assets, net 647,174 647,174 Software 39,698 58,097 Patents 694 694 Definite‑lived intangible assets 40,392 58,791 Less: Accumulated amortization (13,699) (22,684) Definite‑lived intangible assets, net 26,693 36,107 Total intangible assets, net 673,867 683,281 The Group recorded amortization expenses of RMB4,599, RMB9,218 and RMB8,985 for the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2020, amortization expenses related to intangible assets for future periods are estimated to be as follows: As of December 31, 2020 2021 9,008 2022 8,415 2023 5,983 2024 3,203 2025 and thereafter 9,498 Total 36,107 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | 10. Leases Operating leases of the Group mainly include land use rights and leases of offices, retail stores and delivery and servicing centers and the finance lease was the lease of production plants . The components of lease expenses were as follows: For the Year Ended December 31, 2018 2019 2020 Lease cost Finance lease cost: Amortization of assets 15,501 15,501 15,346 Interest of lease liabilities 18,841 19,943 21,851 Operating lease cost 22,811 86,365 176,788 Short‑term lease cost 2,682 6,801 4,937 Total 59,835 128,610 218,922 Operating lease cost is recognized as rental expenses in consolidated statements of comprehensive loss. Short‑term lease cost is recognized as rental expenses in consolidated statements of comprehensive loss on a straight‑line basis over the lease term. Supplemental cash flows information related to leases was as follows: For the Year Ended December 31, 2018 2019 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows payment for operating leases 121,681 77,643 126,418 Right‑of‑use assets obtained in exchange for lease liabilities: Right‑of‑use assets obtained in exchange for new operating lease liabilities 114,322 207,902 896,804 Supplemental balance sheet information related to leases was as follows (in thousands, except lease terms and discount rate): As of December 31, 2019 2020 Operating Leases Land use rights, net (i, ii) 183,383 181,505 Operating lease right‑of‑use assets, net (excluding land use rights) 326,844 1,095,501 Total operating lease assets 510,227 1,277,006 Operating lease liabilities, current 177,526 210,531 Operating lease liabilities, non‑current 241,109 1,025,253 Total operating lease liabilities 418,635 1,235,784 As of December 31, 2019 2020 Finance Leases Property, plant and equipment, at cost (i) 310,018 294,269 Accumulated depreciation (41,336) (56,682) Property, plant and equipment, net 268,682 237,587 Finance lease liabilities, current 360,781 — Finance lease liabilities, non‑current — 366,883 Total finance leases liabilities 360,781 366,883 As of December 31, 2019 2020 Weighted‑average remaining lease term Land use rights 48 years 47 years Operating leases 5 years 11 years Finance leases 17 years 16 years Weighted‑average discount rate Land use rights 5.7 % % Operating leases 5.7 % % Finance leases 5.7 % % Maturities of lease liabilities were as follows: As of December 31, 2020 Operating Finance leases leases 2021 213,064 21,070 2022 274,457 392,378 2023 145,219 — 2024 104,132 — 2025 88,748 — Thereafter 882,938 — Total undiscounted lease payments 1,708,558 413,448 Less: imputed interest (472,774) (46,565) Total lease liabilities 1,235,784 366,883 The Group, through its VIEs and VIE’s subsidiaries, entered into a cooperation agreement and supplementary agreements (collectively “Changzhou Cooperation Agreements”) in February 2016 and September 2016 for the establishment of the Group’s Changzhou Production Base with the Changzhou Wujin District People’s Government and an enterprise affiliated with it (“the Developer”). The Company intends to establish the Production Base, which are used to design, develop, manufacture premium electric vehicle in China. According to the Changzhou Cooperation Agreement, the Developer will be responsible to construct the Changzhou Production Base which consists of manufacturing plants, the underlying land use right, and manufacturing equipment and facilities, etc. in accordance with the Group’s requirements. The Developer obtained the land use right from Changzhou government for both of Phase I and Phase II Land, and the lease term is from September 11, 2018 to March 14, 2067. i) Changzhou Production Base—Phase I The Group entered into a lease contract with the Developer to lease the Phase I Land and Plants from May 1, 2017 to December 31, 2020, and further obtained an option to purchase the Phase I Plant and underlying land use right at the construction cost before the end of lease term. Given the indefinite life of the land, the lease of the Phase I Land or a purchased land use right can only be classified as an operating lease. As the Company has an option to purchase the Phase I Plants at the cost and the assets are designed for the use of the Company, so the option is reasonably certain to be exercised, and accordingly, the lease of the Phase I Plants was classified as a financing lease. Hence, on the lease commerce date, the right of use assets for the Phase I Land and Plants were recorded with the amount of RMB70,508 and RMB310,018 respectively, being the present value of the lease payment and the exercise price of the purchase option. The initial direct cost, and lease payment made on or before the lease commerce date, and the incentive received prior to the lease commerce date were immaterial. ii) Changzhou Production Base—Phase II In September 2018, the Group and the Developer further entered into lease agreements for the Group to purchase the land use right of Phase II Land from the Developer to use and construct on Phase II Land. The lease term is from September 11, 2018 to March 14, 2067. The purchased land use right of the Phase II Land was also classified as an operating lease, for which total rental in the amount of RMB24,420 has been fully paid upfront in 2018. The right of use assets for the Phase II Land was RMB23,080 exclusive VAT. The Group then constructed another manufacturing plant (the “Phase II Plants”) located on the Phase II Land with the total amount of the construction of RMB102,251. Construction of the Production Phase II was completed on January 1, 2019. In August 2019, the Group entered into an asset transfer agreement to sell the Production Base‑Phase II (including the Phase II Land use right and the Phase II Plants) to the Developer with the total consideration of RMB103,060, including VAT. Immediately after the transfer, the Group enter into a lease agreement with the developer to lease back the Production Base‑Phase II for the period starting from September 1, 2019 (the actual lease commencement date is the date of change of ownership) to December 31, 2020, and further obtain an option to repurchase the Phase II Land use right and Plants with the amount of RMB103,060 prior to December 31, 2020. As the repurchase option is not at the fair value of the assets when the option is exercised, and the assets repurchased are designed for the use of the Company, so no alternative assets that are substantially the same as the transferred assets are readily available in the market, as a result, the transaction did not qualify for the sale accounting, and was accounted for as a financing transaction. As of December 31, 2019, the Group has fully received the sales consideration from the third-party Developer and recorded as the short-term borrowing in the consolidated balance sheets. In June 2020, the Group entered into a series of supplemental agreements with the lessor to extend the purchase option to December 31, 2022, and the purchase price remained the same as the original agreement. In addition, the annual lease payment from 2020 to 2022 are subject to achievement of annual sales volume of the Group. If the Group achieves the pre-determined annual sales volume of electric vehicle, the annual lease payment of that year will be waived (equal to zero) by the lessor. Otherwise, the Group will pay the rental fees as agreed in the modified contract. As the lessor did not provide the additional manufacturing land or plants to the Group, the modified lease contracts do not result in separate new leases, and the lease classifications remained as an operating lease for Phase I Land and a financing lease for Phase I Plants. Accordingly, the lease liabilities were re-measured based on the modified term and reclassified as long-term liabilities. The discount rate for the modified leases at the re-measurement was updated on the basis of the remaining lease term and lease payments. The lease of Phase II Plants remained classified as a financing transaction. Accordingly, the liabilities were re-measured based on the modified term and reclassified as a long-term borrowing. The discount rate for the modified borrowing at the re-measurement was updated on the basis of the remaining borrowing term and payments. For the year ended December 31, 2020, the pre-determined annual sales volume was achieved. And the Group considered it was similar to a negative variable lease payment, and therefore should be accounted for as a period item when the contingency was resolved (i.e. annual sales target would be achieved at the end of each year). Accordingly, the liabilities were re-measured base on the waived annual lease payment . |
Other Non-current Assets
Other Non-current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Other Non-current Assets | |
Other Non-current Assets | 11. Other Non‑current Assets Other non‑current assets consist of the following: As of December 31, 2019 2020 Long-term deposits 121,007 149,235 Prepayments for purchase of property, plant and equipment 11,754 126,006 Prepayment for purchase of land use rights 175,582 — Others 3,590 45,943 Total 311,933 321,184 |
Long-term Investments
Long-term Investments | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Investments. | |
Long-term Investments | 12. Long‑term Investments The Group’s long‑term investments on the consolidated balance sheets consisted of the following: Equity Security Equity With Securities Readily Without Readily Determinable Determinable Fair Equity Method Fair Values Values Total Balance at January 1, 2018 4,364 — 18,150 22,514 Additions 98,000 — 115,303 213,303 Shares of loss of equity method investees (35,826) — — (35,826) Changes from investments without readily determinable fair value to readily determinable fair value — 100,303 (100,303) — Fair value change through earnings — (28,780) — (28,780) Foreign currency translation — 5,930 — 5,930 Balance at December 31, 2018 66,538 77,453 33,150 177,141 Additions 98,000 — — 98,000 Shares of loss of equity method investees (162,725) — — (162,725) Fair value change through earnings — 12,550 — 12,550 Changes of interest in the equity method investees 5,494 — — 5,494 Impairment — — (5,000) (5,000) Foreign currency translation — 721 — 721 Balance at December 31, 2019 7,307 90,724 28,150 126,181 Additions — — 65,000 65,000 Shares of loss of equity method investees (2,520) — — (2,520) Fair value change through earnings — (21,975) — (21,975) Foreign currency translation — (3,833) — (3,833) Balance at December 31, 2020 4,787 64,916 93,150 162,853 Equity Method On September 11, 2018, the Group acquired 49% entity interest in Investee A, which is a joint venture established to design, develop and produce BEV optimized for ride sharing service, with cash consideration of RMB98,000. On January 30, 2019, the Group invested another RMB98,000 into Investee A proportionately with the other investor of Investee A, therefore kept the Group’s 49% shareholding percentage unchanged. The Group has significant influence in Investee A and therefore the investment is accounted for using the equity method. The proportionate share of the net loss of equity method investees are recorded in “Share of loss of equity method investees” in the consolidated statements of comprehensive loss. The Group performs impairment of its investment under equity method whenever events or changes in circumstances indicate that the carrying value of the investment may not be fully recoverable. No impairment of equity method investments was recognized for the years ended December 31, 2018, 2019 and 2020. Equity Security with Readily Determinable Fair Values Equity security with readily determinable fair values are marketable equity security which is publicly traded stocks measured at fair value. The following table shows the carrying amount and fair value of equity securities with readily determinable fair values: Foreign Unrealized Currency Cango Inc. Cost Basis Loss Translation Fair Value As of December 31, 2019 100,303 (16,230) 6,651 90,724 As of December 31, 2020 100,303 (38,205) 2,818 64,916 The Company purchased 2,633,644 shares of Series C preferred shares issued by Cango Inc. (“Cango”), with a total cash consideration of US$15,634 (RMB100,303) in 2018. This investment was initially recorded under the equity securities without readily determinable fair value given Cango was still a privately held company at that time. In July 2018, Cango completed its listing on the New York Stock Exchange (“Cango IPO”) and the Series C preferred shares held by the Company were converted to Class A ordinary shares of Cango. Upon the completion of Cango IPO, the Company reclassified this investment from equity securities without readily determinable fair value to equity securities with readily determinable fair value. These securities are valued using the market approach based on the quoted prices in active markets at the reporting date. The Company classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. The unrealized loss are recognized in investment income, net in the consolidated statements of comprehensive loss. Equity Securities without Readily Determinable Fair Values Equity securities without determinable fair value represent investments in privately held companies with no readily determinable fair value. The Group’s investments are not common stock or in substance common stock. Upon adoption of ASU 2016‑01 on January 1, 2018, the Group elected measurement alternative and recorded these investments at cost, less impairment, adjusted for subsequent observable price changes. In the first quarter of 2020, the Group sold the discontinued Low-Speed Small Electric Vehicles ("SEV") battery packs business to an affiliate of the Group with the total consideration of RMB60,000 (Note 21). The Group further invested RMB60,000 in cash in this affiliate, together with other investors. Therefore, the Group's equity interests in this affiliate increased from 12.24% to 19.82% on a fully diluted basis as a result of the additional investment. Impairment charges of nil, RMB5,000 and nil were recorded in investment income, net in the consolidated statements of comprehensive loss for the years ended December 31, 2018, 2019 and 2020, respectively. |
Short-term Borrowings and Long-
Short-term Borrowings and Long-term Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Short-term Borrowings and Long-term Borrowings | |
Short-term Borrowings and Long-term Borrowings | 13. Short‑term Borrowings and Long-term Borrowings Short‑term and long-term borrowings consist of the following: Maturity Principal Interest Rate As of December 31, Date Amount Per Annum 2019 2020 Secured borrowing(1) December 31, 2020 94,550 5.7000 % 95,022 — Unsecured bank loan(2) October 7, 2020 30,000 5.6550 % 30,000 — Secured note payable (3) February 11, 2020 108,737 5.5163 % 113,935 — Total short-term borrowings 238,957 — Maturity Principal Interest Rate As of December 31, Date Amount Per Annum 2019 2020 Secured borrowing (1) December 31, 2022 94,550 6.1750 % — 98,717 Unsecured corporate loan (4) June 30, 2022 401,073 6.1750 % — 412,921 Total long-term borrowings — 511,638 (1) As the transaction in relation to Changzhou Production Base II did not qualify the sales accounting, the consideration received excluding the related taxes was treated as a secured borrowing and recorded as a short-term borrowing as of December 31,2019. In June 2020, the Group entered into a series of supplemental agreements with the lessor. Pursuant to the supplemental agreements, the maturity date of the borrowing was extended to December 31, 2022. As a result, the borrowing was recorded as a long-term borrowing as of December 31, 2020. (2) On October 12, 2019, Beijing CHJ entered into a loan agreement with commercial bank A, with the amount of RMB30,000, which is repayable within one year. The interest rate for the outstanding borrowing was 5.6550%. The Group repaid the bank loan in the second quarter of 2020. (3) In February 2019, Leading Ideal HK pledged a deposit with the amount of US$18,000 (RMB114,700) and the same maturity date to secure the repayment of the note. The Company repaid the note with the amount of RMB114,700 in February 2020, and the deposit of US$18,000 (RMB114,700) pledged was released accordingly. (4) Pursuant to the supplemental agreements of the convertible loan in June 2020 (Note 16), the conversion right in relation to convert the outstanding principal of the convertible loan into equity interest of Beijing CHJ was waived. In addition, the maturity date of the convertible loan was extended to June 30, 2022. As a result, the convertible loan was extinguished, and a new loan was recorded as a long-term borrowing as of December 31, 2020. |
Trade and Notes Payable
Trade and Notes Payable | 12 Months Ended |
Dec. 31, 2020 | |
Trade and Notes Payable | |
Trade and Notes Payable | 14. Trade and Notes Payable Trade and notes payable consist of the following: As of December 31, 2019 2020 Trade payable for raw materials 624,666 2,991,538 Notes payable — 168,977 Total 624,666 3,160,515 |
Accruals and Other Current Liab
Accruals and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accruals and Other Current Liabilities | |
Accruals and Other Current Liabilities | 15. Accruals and Other Current Liabilities Accruals and other current liabilities consist of the following: As of December 31, 2019 2020 Salaries and benefits payable 129,657 187,972 Payables for purchase of property, plant and equipment 403,761 118,181 Payables for acquisition of Chongqing Zhizao (Note 5) 115,000 79,552 Accrued warranty 1,477 55,138 Tax payable 3,331 50,088 Payables for research and development expenses 94,222 35,032 Advance from customers 30,740 9,285 Deposits from vendors 18,150 9,120 Payables for issuance cost 20,929 — Other payables 49,992 103,091 Total 867,259 647,459 |
Convertible Debts
Convertible Debts | 12 Months Ended |
Dec. 31, 2020 | |
Convertible Debts | |
Convertible Debts | 16. Convertible Debts Convertible Loan In November 2017, Beijing CHJ entered into a convertible loan agreement with Changzhou Wunan New Energy Vehicle Investment Co., Ltd (“Wunan”) to obtain a convertible loan with aggregated principal amount of RMB600,000 at a simple interest of 8% per annum. RMB450,000 of the principal was received in December 2017, and RMB150,000 was received in January 2018. The principal and accrued interest shall be due and payable by Beijing CHJ on the earlier of (i) 3 years following the issuance date; or (ii) upon the reformation of Beijing CHJ from a limited liability company to a corporate. Pursuant to the convertible loan agreement, Wunan may convert the outstanding principal of the convertible loan into equity interest of Beijing CHJ, which effectively indicates a fixed conversion price equal to the issue price of Series B‑1 Preferred Shares, at any time before maturity date. Accrued interests shall be waived upon conversion. In June 2020, Beijing CHJ entered into a series of supplemental agreements with Wunan. Pursuant to the supplemental agreements, the maturity date of the convertible loan was extended to June 30, 2022, and the conversion right in relation to convert the outstanding principal of the convertible loan into equity interest of Beijing CHJ was waived by Wunan. In accordance with the supplemental contracts, Wunan also agreed to return the prepayment for purchase of land use right of RMB175,582 and reimburse certain eligible expenditures with the amount of RMB143,838. The return of the prepayment and the reimbursements were used as a settlement of the unpaid interests and part of the outstanding principal of the convertible loan. The outstanding loan principal was reduced to RMB401,073 with a revised interest rate of 6.175% per annum. As a result, the convertible loan was extinguished, and a new loan with the principle amount of RMB401,073, being the difference between the carrying value of the convertible loan and the settlement amount of RMB319,420, was recorded as a long-term borrowing. The balance of the new loan and accrued interest payable was RMB412,921 as of December 31, 2020. Convertible Promissory Notes In January and March 2019, the Company issued convertible promissory notes with the aggregated principal amount of US$25,000 (RMB168,070) with simple interest of 8% per annum. The principal and accrued interest shall be due and payable by the Company 12 months following the date of issuance. Pursuant to the convertible promissory notes agreements, the entire convertible promissory notes shall be converted into 11,873,086 shares of Series B‑3 Preferred Shares of the Company at the issuance price of Series B‑3 Preferred Shares upon the closing of the Reorganization. Holders have the right to convert any portion or the entire principal into Series B‑3 preferred equity interest of Beijing CHJ, if the Reorganization has not been completed before maturity, or if there occurs any change in control, disposition of all or substantially all of the assets or IPO of Beijing CHJ. Accrued interests shall be waived if the investors elect to exercise the conversion options. The convertible promissory notes documents provided that the existing indebtedness of the Company rank pari passu with the convertible promissory notes. If any future indebtedness of the Company shall rank senior to this convertible promissory notes, such future indebtedness shall subject to the convertible promissory notes holders’ prior written consent. Before conversion, the holders of the convertible promissory notes are entitled to all rights granted to Series B‑3 Preferred Shareholders, such as dividend rights, redemption rights, pre‑emptive right, right of first refusal, rights of co‑sale, right of anti‑dilution, liquidation preference rights. The convertible promissory notes holders were also granted: a) the right to obtain additional shares to be issued in the next round of new financing for free to keep their shareholding percentage (or as converted shareholding percentage for convertible promissory notes holders) unchanged (the “Series B‑3 Anti‑Dilution Warrant”); and b) the right to acquire additional shares to be issued in the next two rounds of financing at a 15% discount of purchase price, up to the subscription amount equal to the investment amount in their Series B‑3 Preferred Shares and convertible promissory notes (the “Series B‑3 Additional Warrant”). The Series B‑3 Anti‑Dilution Warrant and the Series B‑3 Additional Warrant issued together with the convertible promissory notes are considered freestanding financial liabilities under ASC 480, and are classified as a liability at their issuance date fair value in accordance with ASC 480‑10‑55, and are subsequently measured at fair value, with changes in fair value recorded in the consolidated statement of comprehensive loss. The initial fair value of the Series B‑3 Anti‑Dilution Warrant and the Series B‑3 Additional Warrant granted to holders of convertible promissory notes were RMB14,161. For details see Note 23. In the event of a change in control or disposition of all or substantially all of the Company’s assets, if so requested by the convertible promissory notes holders, the holders shall enjoy the same liquidation preference rights as Series B‑3 Preferred Shareholders as if the conversion has already occurred, the convertible promissory notes shall be deemed as fully repaid after paying such liquidation preference amount. On July 2, 2019, in conjunction with the Reorganization of the Group, all convertible promissory notes were converted into Series B‑3 Preferred Shares. The principal amount of US$25,000 and accrued interest of US$1,376 (RMB9,428) less the initial fair value of the Series B‑3 Anti‑Dilution Warrant and the Series B‑3 Additional Warrant granted to holders of convertible promissory notes, were recognized as the initial carrying value of related B‑3 Preferred Shares. |
Revenue Disaggregation
Revenue Disaggregation | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Disaggregation | |
Revenue Disaggregation | 17. Revenue Disaggregation Revenues by source consist of the following: For the Year Ended December 31, 2018 2019 2020 Vehicle sales — 280,967 9,282,703 Other sales and services — 3,400 173,906 Total — 284,367 9,456,609 |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Revenue | |
Deferred Revenue | 18. Deferred Revenue The following table shows a reconciliation in the current reporting period related to carried‑forward deferred revenue. For the Year Ended December 31, 2018 2019 2020 Deferred revenue—at beginning of the year — — 62,638 Additions — 338,702 9,687,382 Recognition — (276,064) (9,342,852) Deferred revenue—at end of the year — 62,638 407,168 Including: Deferred revenue, current — 56,695 271,510 Deferred revenue, non‑current — 5,943 135,658 Deferred revenue are contract liabilities allocated to the performance obligations that are unsatisfied, or partially satisfied. The Group expects that RMB271,510 of the transaction price allocated to unsatisfied performance obligation as of December 31, 2020 will be recognized as revenue during the period from January 1, 2021 to December 31, 2021. The remaining RMB135,658 will be recognized in 2022 and thereafter. |
Research and Development Expens
Research and Development Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Research and Development Expenses | |
Research and Development Expenses | 19. Research and Development Expenses Research and development expenses consist of the following: For the Year Ended December 31, 2018 2019 2020 Employee compensation 311,214 461,922 580,157 Design and development expenses 423,721 603,332 406,216 Depreciation and amortization expenses 19,461 39,648 44,977 Rental and related expenses 11,761 14,269 18,818 Travel expenses 12,827 21,815 9,360 Others 14,733 28,154 40,329 Total 793,717 1,169,140 1,099,857 |
Selling, General and Administra
Selling, General and Administrative Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Selling, General and Administrative Expenses | |
Selling, General and Administrative Expenses | 20. Selling, General and Administrative Expenses Selling, general and administrative expenses consist of the following: For the Year Ended December 31, 2018 2019 2020 Employee compensation 171,948 238,368 449,109 Marketing and promotional expenses 35,134 176,383 264,814 Rental and related expenses 13,732 78,897 162,907 Depreciation and amortization expenses 41,035 57,650 37,923 Impairment of property, plant and equipment — 18,066 30,381 Travel expenses 13,803 20,171 20,806 Others 61,548 99,844 152,879 Total 337,200 689,379 1,118,819 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations | |
Discontinued Operations | 21. Discontinued Operations Historically, the Group had a strategy of developing Low‑Speed Small Electric Vehicles (“SEV”) and producing and selling its related battery packs. In the first quarter of 2018, the Group determined to dispose the SEV business due to the shift on the Group’s business and product strategy. As a result, the long‑lived assets related to SEV production, including manufacturing facilities and IP, etc. have ceased to be used, and these assets were considered effectively abandoned. Accordingly, the related assets and liabilities of the SEV business were fully impaired with the impairment amount of RMB292,795 recognized in 2018. Subsequent to the termination of the SEV business, the Group still sold the SEV battery packs to external customers, and in September 2019, the Group further decided to dispose the SEV battery packs business and located a potential buyer. In the first quarter of 2020, the Company completed the sale of the SEV battery packs business to an affiliate of the Company for a total cash consideration of RMB60,000. The abandonment or the disposal of the SEV business and the related battery packs business represented strategic shifts of the Group and had a major impact on the Group’s financial results, and met the criteria for the discontinued operations. Therefore, the historical financial results of the SEV related business were classified as discontinued operation and the related assets and liabilities associated with the discontinued operations of the prior year were reclassified as assets/liabilities held for sale to provide comparable financial information. The following tables set forth the assets, liabilities, results of operations and cash flows of the discontinued operations, which were included in the Group’s consolidated financial statements. As of December 31, Disposal 2019 Date Cash and cash equivalents 147 295 Trade receivable 191 608 Amount due from related parties 832 832 Inventories 7,385 5,594 Prepayments and other current assets 9,044 9,066 Assets held for sale, current 17,599 16,395 Property, plant and equipment, net 29,539 29,010 Operating lease right‑of‑use assets, net 186 — Other non‑current assets 528 528 Assets held for sale, non‑current 30,253 29,538 Total assets held for sale 47,852 45,933 Trade and notes payable 423 542 Operating lease liabilities, current 47 — Accruals and other current liabilities 2,392 2,754 Total liabilities held for sale 2,862 3,296 For the Year Ended December 31, 2018 2019 2020 Revenues 8,376 9,654 870 Cost of sales (12,264) (18,981) (2,437) Gross loss (3,888) (9,327) (1,567) Operating expenses (70,401) (11,359) (1,423) Impairment of long‑lived assets (292,795) — — Loss from operations of discontinued operations (367,084) (20,686) (2,990) Others, net 62 24 — Loss from discontinued operations before income tax expense (367,022) (20,662) (2,990) Income tax expense — — — Net loss from discontinued operations, net of tax (367,022) (20,662) (2,990) For the Year Ended December 31, 2018 2019 2020 Net cash (used in)/provided by discontinued operating activities (65,925) (11,395) 148 Net cash (used in)/provided by discontinued investing activities (83,963) (10,565) 59,705 The following table presents the gain on disposal of discontinued operations related to the disposal of SEV battery packs business for the year ended December 31, 2020: For the Year Ended December 31, 2020 Cash consideration received for sale of SEV battery packs business 60,000 Carrying value of net assets transferred (42,637) Gain on disposal of discontinued operations 17,363 |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2020 | |
Ordinary Shares | |
Ordinary Shares | 22. Ordinary Shares In April 2017, the Company was incorporated as a limited liability company in the Cayman Islands. In July 2019, the Company became the holding company of the Group pursuant to the Reorganization described in Note 1. In connection with the Reorganization and issuance of Series C convertible redeemable preferred shares (“Series C Preferred Shares”), 3,830,157,186 authorized shares of the Company were designated as Class A Ordinary Shares, and 240,000,000 authorized shares were designated as Class B ordinary shares. Each Class A Ordinary Share is entitled to one vote, and is not convertible into Class B Ordinary Shares under any circumstances. Each Class B Ordinary Share is entitled to ten votes, subject to certain conditions, and is convertible into one Class A Ordinary Share at any time by the holder thereof. Upon the Reorganization, the Company issued ordinary shares and Series Pre‑A, A‑1, A‑2, A‑3, B‑1, B‑2 and B‑3 convertible redeemable preferred shares (the “Series Pre‑A, A‑1, A‑2, A‑3, B‑1, B‑2 and B‑3 Preferred Shares”) to shareholders of Beijing CHJ in exchange for respective equity interests that they held in Beijing CHJ immediately before the Reorganization. Series Pre‑A, A‑1, A‑2, A‑3, B‑1, B‑2 and B‑3 Preferred Shares would be converted into Class A Ordinary Shares based on the then‑effective conversion price. On July 4, 2016, Beijing CHJ issued Series Pre‑A shares (“Series Pre‑A Ordinary Shares”) with cash consideration of RMB100,000. Series Pre‑A Ordinary Shares were classified as equity as they were not redeemable. In July 2017, upon Series A‑2 financing, certain rights were granted to holders of Series Pre‑A Ordinary Shares, including contingent redemption rights. Series Pre‑A Ordinary Shares were effectively re-designated to Series Pre‑A Preferred Shares. Such re-designation was accounted for as a repurchase and cancellation of Series Pre‑A Ordinary Shares and a separate issuance of Series Pre‑A Preferred Shares. Accordingly, the excess of fair value of the Series Pre‑A Preferred Shares over the fair value of the Series Pre‑A Ordinary Shares repurchased from employee shareholders was recorded as an employee compensation. While for other non‑employee Series Pre‑A shareholders, such difference was recognized as a deemed dividend given to these shareholders. The excess of the fair value of all Series Pre‑A Ordinary Shares over the carrying value of these shares was accounted for as a retirement of the Series Pre‑A Ordinary Shares. The Company elected to charge the excess entirely to accumulated deficits. In August 2020, the Company completed its IPO and 190,000,000 Class A Ordinary Shares were issued with proceeds of US$1,042,137, net of underwriter commissions and relevant offering expenses. Concurrently with completion of the IPO, 66,086,955 Class A Ordinary Shares were issued for a consideration of US$380,000. On August 7, 2020, the Company issued an additional 28,500,000 Class A Ordinary Shares upon the exercise of underwriters' over-allotment option for a consideration of US$157,320. All of the Preferred Shares (other than those beneficially owned by Mr. Xiang Li, the founder and the CEO of the Company) were automatically converted to 1,045,789,275 Class A Ordinary Shares immediately upon the completion of the IPO. Concurrently, all Preferred Shares beneficially owned by Mr. Xiang Li were automatically converted to 115,812,080 Class B Ordinary Shares. In December 2020, the Company completed a follow-on offering of 108,100,000 Class A Ordinary Shares, which included 14,100,000 Class A Ordinary Shares issued in connection with the underwriters' full exercise of their over-allotment option. As of December 31, 2019 and 2020, the Company had issued and outstanding ordinary shares of 255,000,000 and 1,809,288,310, respectively. |
Convertible Redeemable Preferre
Convertible Redeemable Preferred Shares and Warrants | 12 Months Ended |
Dec. 31, 2020 | |
Convertible Redeemable Preferred Shares and Warrants | |
Convertible Redeemable Preferred Shares and Warrants | 23. Convertible Redeemable Preferred Shares and Warrants The following table summarizes the issuances of convertible redeemable preferred shares as of December 31, 2020: Series Issuance Date Shares Issued Issue Price per Share Proceeds from Issuance RMB RMB Pre-A (1) July 21, 2017 50,000,000 RMB2.00 100,000 A-1 July 4, 2016 129,409,092 RMB6.03 780,000 A-2 July 21, 2017 126,771,562 RMB7.89 1,000,000 A-3 September 5, 2017 65,498,640 RMB9.47 620,000 B-1 November 28, 2017 115,209,526 RMB13.11 1,510,000 B-2 June 6, 2018 55,804,773 RMB14.16 790,000 B-3 (2) January 7/July 2, 2019 119,950,686 RMB14.16 1,701,283 C (3) July 2/December 2,2019/January 23, 2020 267,198,535 US$2.23/ US$1.89 3,626,924 D July 1, 2020 US$2.64/ US$2.35 (1) Upon the issuance of Series A‑2 Preferred Shares, Series Pre‑A Ordinary Shares were re-designated to Series Pre‑A Preferred Shares (see Note 22). (2) Including 11,873,086 Series B‑3 Preferred Shares converted from the convertible promissory notes issued by the Company in January 2019 (see Note 16). The Series B‑3 Preferred Shareholders and convertible promissory notes holders were granted: a) the right to obtain additional shares to be issued in the next round of new financing for free to keep their shareholding percentage (or as converted shareholding percentage for convertible promissory notes holders) unchanged (the “Series B‑3 Anti‑Dilution Warrant”); and b) the right to acquire additional shares to be issued in next two rounds of financing at a 15% discount of purchase price, up to the subscription amount equal to the investment amount in their Series B‑3 Preferred Shares and convertible promissory notes (the “Series B‑3 Additional Warrant”). (3) Including 78,334,557 shares of Series C Preferred Shares issued upon the exercise of the Series B‑3 Additional Warrant by certain Series B‑3 Shareholders and all convertible promissory notes holders at a cash exercise price of RMB1,022,045, or RMB13.02 per share. The leading investor of Series C Preferred Shareholders was granted the right to acquire additional shares to be issued in next round of financing at a 15% discount of purchase price, up to the subscription amount equal to the investment amount in Series C Preferred Shares (the “Series C Additional Warrant”). All non‑refundable cash considerations for the issuance of Series C Preferred Shares, including 4,109,127 shares registered subsequently on January 3, 2020, were received in full as of December 31, 2019 and accordingly all shares are considered issued and outstanding from accounting perspective. On January 23, 2020, 18,916,548 shares of Series C Preferred Shares were issued upon the exercise of the Series B‑3 Anti‑Dilution Warrant. The Series B‑3 Anti‑Dilution Warrant, the Series B‑3 Additional Warrant and the Series C Additional Warrant (collectively referred as “Warrants”) were determined to be freestanding liability instruments and recorded at fair value upon initial recognition. Proceeds received from issuance of Series B‑3 Preferred Shares and convertible promissory notes, and Series C Preferred Shares were first allocated to the Warrants based on their initial fair values. The Warrants were marked to the market with the changes recorded in the consolidated statements of comprehensive loss in the applicable subsequent reporting period. The Warrants shall terminate upon the earlier of the consummation of an IPO or the occurrence of a Deemed Liquidation Event. The balance of Warrants was reduced to zero as the Warrants terminated upon the issuance of Series D. The Series Pre‑A, A‑1, A‑2, A‑3, B‑1, B‑2, B‑3, C and D Preferred Shares are collectively referred to as the “Preferred Shares”. All series of Preferred Shares have the same par value of US$0.0001 per share. The major rights, preferences and privileges of the Preferred Shares are as follows: Conversion Preferred Shares of the Company are convertible to Class A Ordinary Shares at any time at the option of the holders, and would automatically be converted into Class A Ordinary Shares 1) upon a Qualified IPO (“QIPO”); or 2) upon the written consent of the holders of a majority of the outstanding Preferred Shares of each class with respect to conversion of each class. The initial conversion ratio of Preferred Shares to ordinary shares shall be 1:1, and shall be subject to adjustment and readjustment from time to time for share splits and combinations, ordinary share (on an as converted basis) dividends and distributions, reorganizations, mergers, consolidations, reclassifications, exchanges, substitutions, and dilutive issuance. Redemption The Company shall redeem, at the option of any holder of outstanding Preferred Shares, all of the outstanding Preferred Shares (other than the unpaid shares) held by the requesting holder, at any time after the earliest to occur of (a) the Company fails to consummate a qualified IPO (“QIPO”) by June 30, 2023, or b) any occurrence of a material breach or any material change of the relevant laws or the occurrence of any other factors, which has resulted or is likely to result in the Company’s inability to control and consolidate the financial statements of any of the PRC subsidiaries or VIEs, each Preferred Share shall be redeemable at the option of such Preferred Shareholder, out of funds legally available therefor by the Company. The redemption amount payable for each Preferred Share (other than the unpaid shares) will be an amount equal to 100% of the Preferred Shares’ original issue price, plus all accrued but unpaid dividends thereon up to the date of redemption and simple interest on the Preferred Shares’ original issue price at the rate of 8% per annum, proportionally adjusted for share subdivisions, share dividends, reorganizations, reclassifications, consolidations, mergers or similar transactions. Upon the redemption, Series D Preferred Shares shall rank senior to Series C Preferred Shares, Series C Preferred Shares shall rank senior to Series B‑3 Preferred Shares, Series B‑3 Preferred Shares shall rank senior to Series B‑2 Preferred Shares, Series B‑2 Preferred Shares shall rank senior to Series B‑1 Preferred Shares, Series B‑1 Preferred Shares shall rank senior to Series A‑3 Preferred Shares, Series A‑3 Preferred Shares shall rank senior to Series A‑2 Preferred Shares, Series A‑2 Preferred Shares shall rank senior to Series A‑1 Preferred Shares, Series A‑1 Preferred Shares shall rank senior to Series Pre‑A Preferred Shares. Upon the Reorganization, QIPO definition of Series Pre‑A, A‑1, A‑2, A‑3, B‑1, B‑2 and B‑3 Preferred Shares was revised to be the same as Series C Preferred Shares, and all Preferred Shareholders (including Series D issued on July 1, 2020) were given the option to, in the event that the funds of the Company legally available for redemption on the redemption date are insufficient to redeem the total number of redeeming shares required to be redeemed, 1) request the Company to issue a convertible promissory note (“Redemption Note”) for the unpaid portion of the redemption price or 2) allow the Company to carry forward and redeem the shares when legally funds are sufficient to do so. Such Redemption Note shall be due and payable no later than 24 months of the redemption date with a simple rate of 8% per annum. Each holder of such Redemption Note shall have the right, at its option, to convert the unpaid principal amount of the Redemption Note and the accrued but unpaid interest thereon, into the same class of Preferred Shares requested to be redeemed at a per share conversion price equal to the applicable original issue price. Voting Rights The holders of the Preferred Shares shall have the right to one vote for each ordinary share into which each outstanding Preferred Share held could then be converted. The holders of the Preferred Shares vote together with the Ordinary Shareholders, and not as a separate class or series, on all matters put before the shareholders. Dividends Each Preferred Shareholder and Ordinary Shareholder shall be entitled to receive dividends for each share held by such holder, payable out of funds or assets when and as such funds or assets become legally available therefor pari passu with each other on a pro rata basis. Such dividends shall be payable only when, as, and if declared by the Board of Directors and shall be non‑cumulative. No dividends on preferred and ordinary shares have been declared since the issuance date until December 31, 2020. Liquidation In the event of any liquidation, the holders of Preferred Shares (except for Series Pre‑A Preferred Shares) have preference over holders of Series Pre‑A Preferred Shares and ordinary shares with respect to payment of dividends and distribution of assets. Upon Liquidation, Series D Preferred Shares shall rank senior to Series C Preferred Shares, Series C Preferred Shares shall rank senior to Series B‑3 Preferred Shares, Series B‑3 Preferred Shares shall rank senior to Series B‑2 Preferred Shares, Series B‑2 Preferred Shares shall rank senior to Series B‑1 Preferred Shares, Series B‑1 Preferred Shares shall rank senior to Series A‑3 Preferred Shares, Series A‑3 Preferred Shares shall rank senior to Series A‑2 Preferred Shares, Series A‑2 Preferred Shares shall rank senior to Series A‑1 Preferred Shares, Series A‑1 Preferred Shares shall rank senior to Series Pre‑A Preferred Shares and ordinary shares. The holders of Preferred Shares (exclusive of unpaid shares and Series Pre‑A Preferred Shares) shall be entitled to receive an amount per share equal to an amount equal to the higher of (1) 100% of the original issue price of such Preferred Shares, plus an aggregate interests calculated at a simple rate of 8% per annum and multiplied by a fraction and (2) the amount receivable by the Preferred Shareholders if all the assets of the Company available for distribution to shareholders is distributed ratably among all the Members on an as‑converted basis. If there are still assets of the Company legally available for distribution, such remaining assets of the Company shall be distributed to the holders of issued and outstanding Series Pre‑A Preferred Shares and ordinary shares. Conversion upon IPO In August 2020, in connection with the completion of IPO, all of the Preferred Shares were automatically converted to 1,045,789,275 Class A ordinary shares and 115,812,080 Class B ordinary shares based on the aforementioned conversion price. Accounting for Preferred Shares The Company classified the Preferred Shares as mezzanine equity in the consolidated balance sheets because they were redeemable at the holders’ option upon the occurrence of certain deemed liquidation events and certain event outside of the Company’s control. The Preferred Shares are recorded initially at fair value, net of issuance costs. The Company recognized accretion to the respective redemption value of the Preferred Shares over the period starting from issuance date to July 4, 2022, the earliest redemption date. The Company recognized accretion of the Preferred Shares amounted to RMB317,320, RMB743,100 and RMB651,190 for the years ended December 31, 2018, 2019 and 2020, respectively. Prior to the Reorganization, the Company has determined that host contract of the Series Pre‑A, A‑1, A‑2, A‑3, B‑1, B‑2 and B‑3 Preferred Shares were more akin to an equity host. The conversion feature embedded in the Preferred Shares is considered to meet the definition of derivative in accordance with ASC 815‑15‑25, due to the optional redemption settlement mechanism upon deemed liquidation could give rise to net settlement of the conversion provision in cash if the per share distribution amount is higher than the fixed redemption amount, instead of the settlement by delivery of the ordinary shares of the Company. This equity‑like conversion feature was considered clearly and closely related to the equity host, therefore does not warrant bifurcation. The Company also assessed the redemption features and liquidation feature and determined that these features as a freestanding instrument, would not meet the definition of a derivative, and therefore need not be bifurcated and separately accounted for. After the Reorganization, host contract of the Preferred Shares is more akin to a debt host, given the Preferred Shares holders have potential creditors’ right in the event of insufficient fund upon redemption, along with other debt‑like features in the terms of the Preferred Shares, including the redemption rights. Company considered extinguishment accounting should be applied for all Preferred Shares issued prior to the Reorganization from a qualitative perspective, although from quantitative perspective, the changes of these preferred shares’ fair value before and after the modification was immaterial. Hence, accumulated deficit was increased by the difference between the fair value of Series Pre‑A, A‑1, A‑2, A‑3, B‑1, B‑2 and B‑3 Preferred Shares after modification and the carrying amount of these Preferred Shares immediately before the modification. The Company also reassessed the conversion feature, redemption feature and liquidation preference of all Preferred Shares after the Reorganization. The equity‑like conversion feature is considered not clearly and closely related to the debt host, and therefore was bifurcated and separately accounted for using fair value. For redemption feature, as it would not result in any substantial premium or discount, nor would it accelerate the repayment of the contractual principal amount, it is clearly and closely related to the debt host, and therefore shall not be bifurcated and accounted for separately. The liquidation preference, on the other hand, may result in substantial premium and could accelerate repayment of the principal upon occurrence of contingent redemption events. Hence, the liquidation preference is considered not clearly and closely related to the debt host and should be bifurcated and accounted for separately. The Company determined the fair value of these derivative liabilities and concluded that the fair value of the bifurcated liquidation features was insignificant initially and as of December 31, 2020. The derivative liabilities of conversion features was bifurcated from the preferred shares initially at fair value, and subsequently was marked to market value with the fair value change recognized in the consolidated statements of comprehensive loss in the applicable subsequent reporting period. Upon the consummation of IPO and conversion of preferred shares, the conversion feature of preferred shares were automatically exercised, consequently, the derivative liabilities of conversion features was reduced to zero. The movement of the warrants and conversion feature derivative liabilities are summarized below: Warrants Derivative Liabilities Liabilities Total Balance at December 31, 2018 — — — Issuance 174,846 1,066,013 1,240,859 Fair value change 292,305 211,859 504,164 Exercise (45,858) — (45,858) Expire(*) (77,739) — (77,739) Translation to reporting currency 8,196 19,068 27,264 Balance at December 31, 2019 351,750 1,296,940 1,648,690 Issuance — 328,461 328,461 Fair value change (46,812) (225,515) (272,327) Exercise (305,333) (1,400,670) (1,706,003) Translation to reporting currency 395 784 1,179 Balance at December 31, 2020 — — — (*) The Company’s convertible redeemable preferred shares activities for the years ended December 31, 2018, 2019 and 2020 are summarized below: Series Pre‑A Series A‑1 Series A‑2 Series A‑3 Series B‑1 Series B‑2 Series B‑3 Series C Series D Total Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount of Shares (RMB) of Shares (RMB) of Shares (RMB) of Shares (RMB) of Shares (RMB) of Shares (RMB) of Shares (RMB) of Shares (RMB) of Shares (RMB) of Shares (RMB) Balances as of January 1, 2018 50,000,000 175,847 129,409,092 847,530 126,771,562 1,027,497 65,498,640 631,803 93,464,682 1,228,448 — — — — — — — — 465,143,976 3,911,125 Proceeds from Series B-1 Preferred Shares — — — — — — — — 21,744,844 285,000 — — — — — — — — 21,744,844 285,000 Issuance of preferred shares — — — — — — — — — — 48,656,111 685,594 — — — — — — 48,656,111 685,594 Accretion on convertible redeemable preferred shares to redemption value — — — 60,128 — 72,319 — 44,655 — 108,113 — 32,105 — — — — — — — 317,320 Balances as of December 31, 2018 50,000,000 175,847 129,409,092 907,658 126,771,562 1,099,816 65,498,640 676,458 115,209,526 1,621,561 48,656,111 717,699 — — — — — — 535,544,931 5,199,039 Proceeds from Series B-2 preferred shares — — — — — — — — — — 7,148,662 101,200 — — — — — — 7,148,662 101,200 Conversion of convertible promissory notes into Series B-3 Preferred Shares — — — — — — — — — — — — 11,873,086 166,549 — — — — 11,873,086 166,549 Issuance of Series B-3 Preferred Shares — — — — — — — — — — — — 108,077,600 1,395,015 — — — — 108,077,600 1,395,015 Issuance of Series C Preferred Shares — — — — — — — — — — — — — — 248,281,987 3,616,801 — — 248,281,987 3,616,801 Deemed dividend to/(contribution from) preferred shareholders upon extinguishment — 281,638 — 284,655 — 115,806 — (15,139) — (310,359) — (130,312) — (8,927) — — — — — 217,362 Bifurcation of conversion feature — (14,549) — (254,121) (212,055) — (92,256) — (105,702) — (47,231) — (108,190) — (231,909) — — — (1,066,013) Accretion on convertible redeemable preferred shares to redemption value — — — 60,249 — 90,077 — 61,299 — 164,540 — 80,891 — 133,798 — 152,246 — — — 743,100 Effect of exchange rate changes on preferred shares — (8,050) — (17,492) — (18,685) — (10,592) — (22,433) — (11,944) — (27,165) — (1,030) — — — (117,391) Balances as of December 31, 2019 50,000,000 434,886 129,409,092 980,949 126,771,562 1,074,959 65,498,640 619,770 115,209,526 1,347,607 55,804,773 710,303 119,950,686 1,551,080 248,281,987 3,536,108 — — 910,926,266 10,255,662 Exercise of Series B-3 Anti-Dilution Warrant — — — — — — — — — — — — — — 18,916,548 305,333 — — 18,916,548 305,333 Bifurcation of conversion feature — — — — — — — — — — — — — — — (81,082) — — — (81,082) Issuance of preferred shares-Series D — — — — — — — — — — — — — — — — 231,758,541 3,603,655 231,758,541 3,603,655 Accretion on convertible redeemable preferred shares to redemption value — — — 34,229 — — 46,738 — 136,567 — — 80,635 — 178,007 — 46,792 — 651,190 Effect of exchange rate changes on preferred shares — (858) — (1,746) — (1,770) — (964) — (1,899) — (1,040) — (2,613) — 28 — — — (10,862) Conversion of preferred shares to ordinary shares (50,000,000) (434,028) (129,409,092) (1,013,432) (126,771,562) (1,136,552) (65,498,640) (665,544) (115,209,526) (1,482,275) (55,804,773) (774,122) (119,950,686) (1,629,102) (267,198,535) (3,938,394) (231,758,541) (3,650,447) (1,161,601,355) (14,723,896) Balances as of December 31, 2020 — — — — — — — — — — — — — — — — — — — — |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Loss Per Share | |
Loss Per Share | 24. Loss Per Share Basic loss per share and diluted loss per share have been calculated in accordance with ASC 260 for the years ended December 31, 2018, 2019 and 2020 as follows: For the Year Ended December 31, 2018 2019 2020 Numerator: Net loss (1,532,318) (2,438,536) (151,657) Accretion on convertible redeemable preferred shares to redemption value (317,320) (743,100) (651,190) Deemed dividend to preferred shareholders upon extinguishment, net — (217,362) — Effect of exchange rate changes on convertible redeemable preferred shares — 117,391 10,862 Net loss attributable to ordinary shareholders of Li Auto Inc. (1,849,638) (3,281,607) (791,985) Including: Net loss from continuing operations attributable to ordinary shareholders of Li Auto Inc. (1,482,616) (3,260,945) (806,358) Net (loss)/income from discontinued operations attributable to ordinary shareholders of Li Auto Inc. (367,022) (20,662) 14,373 Denominator: Weighted average ordinary shares outstanding—basic and diluted 255,000,000 255,000,000 870,003,278 Basic and diluted net loss per share from continuing operations attributable to ordinary shareholders of Li Auto Inc. (5.81) (12.79) (0.93) Basic and diluted net (loss)/income per share from discontinued operations attributable to ordinary shareholders of Li Auto Inc. (1.44) (0.08) 0.02 Basic and diluted net loss per share attributable to ordinary shareholders of Li Auto Inc. (7.25) (12.87) (0.91) For the years ended December 31, 2018, 2019 and 2020, the Company had ordinary equivalent shares, including preferred shares, options granted and convertible debts. As the Group incurred loss for the years ended December 31, 2018, 2019 and 2020, these ordinary equivalent shares were anti‑dilutive and excluded from the calculation of diluted loss per share of the Company. The weighted‑average numbers of preferred shares, options granted and convertible debts excluded from the calculation of diluted loss per share of the Company were 518,689,896, 21,658,638 and 45,778,620 for the year ended December 31, 2018, 767,751,031, 30,434,096 and 51,503,724 for the year ended December 31, 2019, 669,666,355, 54,605,925 and 22,639,154 for the year ended December 31, 2020, respectively. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share based Compensation | |
Share based Compensation | 25. Share‑based Compensation Compensation expenses recognized for share-based awards granted by the Company were as follows: For the Year Ended December 31, 2018 2019 2020 Cost of sales — — 1,515 Research and development expenses — — 60,789 Selling, general and administrative expenses — — 80,491 Total — — 142,795 In July 2019, the Group adopted the 2019 Share Incentive Plan (the "2019 Plan"), which allows the Company to grant options of the Group to its employees, directors and consultants. As of December 31, 2020, the maximum number of Class A ordinary shares that may be issued under the 2019 Plan is 141,083,452. The Group began to grant share options to employees from 2015. In conjunction with the Company’s Reorganization in July 2019, the Group transferred share options from Beijing CHJ to the Company according to the 2019 Plan. The share options of the Group under the 2019 Plan have a contractual term of ten years from the grant date. The options granted have both service and performance condition. The options are generally scheduled to be vested over five years, one‑fifth of the awards shall be vested upon the end of the calendar year in which the awards were granted. Meanwhile, the options granted are only exercisable upon the occurrence of an IPO by the Group. These awards have a service condition and a performance condition related to an IPO. For share options granted with performance condition, the share-based compensation expenses are recorded when the performance condition is considered probable. As a result, the cumulative share-based compensation expenses for these options that have satisfied the service condition were recorded upon the completion of the IPO in the third quarter of 2020. The Group recognized the share options of the Company granted to the employees using graded-vesting method over the vesting term of the awards, net of estimated forfeitures. In July 2020, the Group adopted the 2020 Share Incentive Plan (the "2020 Plan"), which allows the Company to grant options of the Group to its employees, directors and consultants. The 2020 Plan allows the Company to grant share options units up to a maximum of 30,000,000 Shares, subject to automatic annual increase. As of December 31, 2020, no award has been granted under the 2020 Plan. The following table summarizes activities of the Company’s share options under the 2019 Plan for the years ended December 31, 2018, 2019 and 2020: Weighted Number of Weighted Average Aggregate Options Average Remaining Intrinsic Outstanding Exercise Price Contractual Life Value US$ In Years US$ Outstanding as of December 31, 2017 45,390,000 0.10 8.33 30,411 Granted 6,250,000 0.10 Forfeited — — Outstanding as of December 31, 2018 51,640,000 0.10 7.57 41,312 Granted 3,430,000 0.10 Forfeited (310,000) 0.10 Outstanding as of December 31, 2019 54,760,000 0.10 6.73 73,926 Granted 0.10 Forfeited (2,070,000) 0.10 Outstanding as of December 31, 2020 0.10 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the estimated fair value of the underlying stock at each reporting date. The weighted‑average grant date fair value for options granted under the Company’s 2019 Plan for the years ended December 31, 2018, 2019 and 2020 was US$0.75, US$0.99 and US$1.71 , respectively, computed using the binomial option pricing model. The number of vested and exercisable options as of December 31, 2020 was 40,410,000, with average exercise price of US$0.10 while none options were vested as of December 31, 2019. The fair value of each option granted under the Company’s 2019 Plan for the years ended December 31, 2018, 2019 and 2020 was estimated on the date of each grant using the binomial option pricing model with the assumptions (or ranges thereof) in the following table: For the Year Ended December 31, 2018 2019 2020 Exercise price (US$) 0.10 0.10 0.10 Fair value of the ordinary shares on the date of option grant (US$) 0.77 - 0.89 0.90 - 1.45 1.35 - 1.90 Risk‑free interest rate 3.69% - 3.92% 1.98% - 3.17% 0.69% - 1.92% Expected term (in years) 10.00 10.00 10.00 Expected dividend yield Expected volatility 50% - 51% 47% - 48% 45% - 46% Risk‑free interest rate is estimated based on the yield curve of US Sovereign Bond as of the option valuation date. The expected volatility at the grant date and each option valuation date is estimated based on annualized standard deviation of daily stock price return of comparable companies with a time horizon close to the expected expiry of the term of the options. The Group has never declared or paid any cash dividends on its capital stock, and the Group does not anticipate any dividend payments in the foreseeable future. Expected term is the contract life of the options. As of December 31, 2020, there were US$7,241 of unrecognized compensation expenses related to the share options granted to the Group’s employees, which are expected to be recognized over a weighted-average period of 3.94 years and may be adjusted for future changes in forfeitures. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2020 | |
Taxation | |
Taxation | 26. Taxation (a) The Group is subject to statutory VAT rate of 13% for revenue from sales of vehicles and spare parts in the PRC. (b) Cayman Islands The Company was incorporated in the Cayman Islands and conducts most of its business through its subsidiaries located in Mainland China and Hong Kong. Under the current laws of the Cayman Islands, the Company is not subject to tax on either income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. PRC Beijing CHJ is qualified as a “high and new technology enterprise” under the EIT Law and is eligible for a preferential enterprise income tax rate of 15%. Other chinese companies are subject to enterprise income tax (“EIT”) at a uniform rate of 25%. Under the EIT Law enacted by the National People’s Congress of PRC on March 16, 2007 and its implementation rules which became effective on January 1, 2008, dividends generated after January 1, 2008 and payable by a foreign investment enterprise in the PRC to its foreign investors who are non‑resident enterprises are subject to a 10% withholding tax, unless any such foreign investor’s jurisdiction of incorporation has a tax treaty with the PRC that provides for a different withholding arrangement. Under the taxation arrangement between the PRC and Hong Kong, a qualified Hong Kong tax resident which is the “beneficial owner” and directly holds 25% or more of the equity interest in a PRC resident enterprise is entitled to a reduced withholding tax rate of 5%. The Cayman Islands, where the Company was incorporated, does not have a tax treaty with PRC. The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non‑PRC company is located.” Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its operations outside of the PRC will be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history of the EIT Law, there is uncertainty as to the application of the EIT Law. Should the Company be treated as a resident enterprise for PRC tax purposes, the Company will be subject to PRC income tax on worldwide income at a uniform tax rate of 25%. According to relevant laws and regulations promulgated by the State Administration of Tax of the PRC effective from 2008 onwards, enterprises engaging in R&D activities are entitled to claim 175% of their qualified research and development expenses so incurred as tax deductible expenses when determining their assessable profits for the year (‘Super Deduction’). The additional deduction of 75% of qualified research and development expenses can only be claimed directly in the annual EIT filing and subject to the approval from the relevant tax authorities. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the subsidiaries of the Group incorporated in Hong Kong are subject to 16.5% Hong Kong profit tax on their taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiaries incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax. Composition of income tax benefit for the periods presented is as follows: For the Year Ended December 31, 2018 2019 2020 Deferred income tax benefit — — (22,847) Reconciliations of the income tax expense computed by applying the PRC statutory income tax rate of 25% to the Group’s income tax expense of the years presented are as follows: For the Year Ended December 31, 2018 2019 2020 Loss before income tax expense (1,165,296) (2,417,874) (188,877) Income tax credit computed at PRC statutory income tax rate of 25% (291,324) (604,468) (47,219) Tax effect of tax‑exempt entity and preferential tax rate 97,549 230,669 30,140 Tax effect of Super Deduction and others (139,331) (121,177) (144,503) Non‑deductible expenses 109 27,031 21,511 Change in valuation allowance 332,997 467,945 117,224 Income tax benefit — — (22,847) (c) The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will be more‑likely‑than‑not realized. This assessment considers, among other matters, the nature, frequency and severity of recent loss and forecasts of future profitability. These assumptions require significant judgment and the forecasts of future taxable income are consistent with the plans and estimates the Group is using to manage the underlying business. The statutory income tax rate of 25% or applicable preferential income tax rates were applied when calculating deferred tax assets. The Group's deferred tax assets (liabilities) consist of the following components : For the Year Ended December 31, 2018 2019 2020 Deferred tax assets Net operating loss carryforwards 321,077 717,495 1,144,397 Accrued expenses and others 7,385 12,545 66,773 Depreciation and amortization 5,549 26,946 16,220 Impairment of long‑lived assets 68,754 73,271 7,694 Unrealized financing cost 11,401 27,520 13,125 Unrealized investment loss 5,330 29,664 — Total deferred tax assets 419,496 887,441 1,248,209 Less: Valuation allowance (419,496) (887,441) (1,004,665) Deferred tax assets, net of valuation allowance — — 243,544 Deferred tax liabilities Accelerated tax depreciation and others — — (215,030) Fair value change of certain investments — — (5,667) Total deferred tax liabilities — — (220,697) Deferred tax assets, net of valuation allowance and deferred tax liabilities — — 22,847 A valuation allowance is provided against deferred tax assets when the Group determines that it is more-likely-than-not that the deferred tax assets will not be utilized in the future. Movement of valuation allowance is as follow : For the Year Ended December 31, 2018 2019 2020 Valuation allowance Balance at beginning of the year 86,499 419,496 887,441 Additions 332,997 467,945 148,458 Reversal — — (31,234) Balance at ending of the year 419,496 887,441 1,004,665 For the year ended December 31, 2020, Wheels Technology and Chongqing Lixiang Automobile had achieved pre-tax profit, and the Group forecasted these two subsidiaries are likely to continue to achieve pre-tax profit in 2021. As a result, the Group made an assessment and considered that the deferred tax assets for these two subsidiaries are more-likely-than-not to be utilized in the future, and therefore concluded that the previously recognized valuation allowance for these two subsidiaries should be reversed in income statement as an income tax benefit (i.e. a credit of income tax expense). As of December 31, 2020, the Group had net operating loss carryforwards of approximately RMB5,841,910 mainly arose from the Group’s certain subsidiaries, VIEs and the VIEs’ subsidiaries established in the PRC, which can be carried forward to offset future taxable income and will expire during the period from 2021 to 2030. As of December 31, 2020, deferred tax assets arose from the net operating loss carryforwards amounting to RMB908,888 were provided for full valuation allowance, while the remaining RMB235,509 were expected to be utilized prior to expiration considering future taxable income for respective entities. Uncertain Tax Position The Group did not identify any significant unrecognized tax benefits for each of the periods presented. The Group did not incur any interest related to unrecognized tax benefits, did not recognize any penalties as income tax expense and also does not anticipate any significant change in unrecognized tax benefits within 12 months from December 31, 2020. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurement | |
Fair Value Measurement | 27. Fair Value Measurement Assets and liabilities measured at fair value on a recurring basis Assets and liabilities measured at fair value on a recurring basis include: short‑term investments, investment in equity securities with readily determinable fair value, and warrants and derivative liabilities. The following table sets the major financial instruments measured at fair value, by level within the fair value hierarchy as of December 31, 2019 and 2020. Fair Value Measurement at Reporting Date Using Quoted Prices Fair Value in Active Significant as of Markets for Significant Other Unobservable December 31, Identical Assets Observable Inputs Inputs 2019 (Level 1) (Level 2) (Level 3) Assets Short-term investments 1,814,108 — 1,814,108 — Equity securities with readily determinable fair value 90,724 90,724 — — Total assets 1,904,832 90,724 1,814,108 — Liabilities Warrant liabilities 351,750 — — 351,750 Derivative liabilities 1,296,940 — — 1,296,940 Total liabilities 1,648,690 — — 1,648,690 Fair Value Measurement at Reporting Date Using Quoted Prices Fair Value in Active Significant as of Markets for Significant Other Unobservable December 31, Identical Assets Observable Inputs Inputs 2020 (Level 1) (Level 2) (Level 3) Assets Short-term investments 18,850,462 — 18,850,462 — Equity securities with readily determinable fair value 64,916 64,916 — — Total assets 18,915,378 64,916 18,850,462 — Valuation Techniques Short‑term investments: Short‑term investments are investments in financial instruments with variable interest rates and maturity dates within one year. Fair value is estimated based on quoted prices of similar financial products provided by the banks at the end of each period (Level 2). The gain/(loss) are recognized in “investment income, net” in the consolidated statements of comprehensive loss. Equity securities with readily determinable fair value: Equity security with readily determinable fair values are marketable equity security which is publicly traded stocks measured at fair value. These securities are valued using the market approach based on the quoted prices in active markets at the reporting date. The Company classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. The gain/(loss) are recognized in “investment income, net” in the consolidated statements of comprehensive loss. Warrants and derivative liabilities: as the Group’s warrants and derivative liabilities are not traded in an active market with readily observable quoted prices, the Group uses significant unobservable inputs (Level 3) to measure the fair value of these warrants and derivative liabilities at inception and at each subsequent balance sheet date. Significant factors, assumptions and methodologies used in determining the fair value of these warrants and derivative liabilities, include applying the discounted cash flow approach, and such approach involves certain significant estimates which are as follows: Discount rates Date Discount Rate January 7, 2019 March 31, 2019 June 30, 2019 July 2, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 The discount rates listed out in the table above were based on the cost of equity, which was calculated using the capital asset pricing model, or CAPM, the most commonly adopted method for estimating the required rate of return for equity. Under CAPM, the cost of equity was determined by considering a number of factors including risk‑free rate, systematic risk, equity market premium, size of our company and our ability to achieve forecasted projections. Comparable companies In deriving the cost of equity as the discount rates under the income approach, certain publicly traded companies were selected for reference as our guideline companies. The guideline companies were selected based on the following criteria: (i) they design, develop, manufacture and sell new energy vehicles and (ii) their shares are publicly traded in Hong Kong or the United States. The following summarizes the roll-forward of the beginning and ending balance of the Level 3 warrants and derivative liabilities: Total Fair value of Level 3 warrants and derivative liabilities as of December 31, 2018 — Issuance 1,240,859 Unrealized fair value change loss 504,164 Exercise (45,858) Expire (77,739) Translation to reporting currency 27,264 Fair value of Level 3 warrants and derivative liabilities as of December 31, 2019 1,648,690 Issuance 328,461 Unrealized fair value change gain (272,327) Exercise (1,706,003) Translation to reporting currency 1,179 Fair value of Level 3 warrants and derivative liabilities as of December 31, 2020 — Unrealized fair value change loss/(gain) and expire are recorded "Changes in fair value of warrants and derivative liabilities" in the consolidated statements of comprehensive loss . Assets measured at fair value on a nonrecurring basis Assets measured at fair value on a non‑recurring basis include: investments in equity securities without readily determinable fair value, equity method investments, long‑lived assets held for use and assets held for sale. For investments in equity securities without readily determinable fair value, no measurement event occurred during the periods presented. Impairment charges of nil, RMB5,000 and nil were recognized for the years ended December 31, 2018, 2019 and 2020, respectively. For equity method investments, no impairment loss is recognized for all years presented. The Group recorded RMB292,795 impairment loss of long‑lived assets of SEV business, which has been classified as discontinued operations, in the year ended December 31, 2018, and RMB18,066 and RMB30,381 impairment loss of property, plant and equipment for the year ended December 31, 2019 and 2020, respectively. Assets and liabilities not measured at fair value but fair value disclosure is required Financial assets and liabilities not measured at fair value include cash equivalent, time deposits, restricted cash, trade receivable, amounts due from related parties, prepayments and other current assets, short‑term borrowings, trade and notes payable, amounts due to related parties, accruals and other current liabilities, other non‑current assets, other non‑current liabilities, long‑term borrowings and convertible debts. The Group values its time deposits held in certain bank accounts using quoted prices for securities with similar characteristics and other observable inputs, and accordingly, the Group classifies the valuation techniques that use these inputs as Level 2. The Group classifies the valuation techniques that use the inputs as Level 2 for short‑term borrowing as the rates of interest under the loan agreements with the lending banks were determined based on the prevailing interest rates in the market. Trade receivable, amounts due from related parties, prepayments and other current assets, trade and notes payable, amounts due to related parties and accruals and other current liabilities are measured at amortized cost, their fair values approximate their carrying values given their short maturities. Long‑term borrowings and convertible debts are measured at amortized cost. Their fair value was estimated by discounting the scheduled cash flows through to estimated maturity using estimated discount rates based on current offering rates of comparable institutions with similar services. The fair value of these long‑term borrowings obligations approximate their carrying value as the borrowing rates are similar to the market rates that are currently available to the Group for financing obligations with similar terms and credit risks and represent a level 2 measurement. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 28. Commitments and Contingencies (a) The Group’s capital commitments primarily relate to commitments on construction and purchase of production facilities, equipment and tooling. Total capital commitments contracted but not yet reflected in the consolidated financial statements as of December 31, 2020 were as follows: Less than Total One Year 1‑3 Years 3‑5 Years Over 5 Years Capital commitments 259,234 233,002 26,232 — — (b) The Group’s purchase obligations primarily relate to commitments on purchase of raw material. Total purchase obligations contracted but not yet reflected in the consolidated financial statements as of December 31, 2020 were as follows: Less than Total One Year 1‑3 Years 3‑5 Years Over 5 Years Purchase obligations 2,547,799 2,547,799 — — — (c) Legal proceedings The Group records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis. Chongqing Zhizao was subject to ongoing legal proceedings arising from disputes of contracts entered into prior to the Company’s acquisition of Chongqing Zhizao in December 2018. Most of these legal proceedings were still at preliminary stages, and the Company was unable to predict the outcome of these cases, or reasonably estimate a range of the possible loss, if any, given the current status of the proceedings. Other than the unpaid contract amount that the Company assumed from Lifan Acquisition and included as the Retained Assets and Liabilities, the Company did not record any accrual for expected loss payments with respect to these cases as of December 26, 2019. In addition to the indemnification of the Retained Assets and Liabilities the Company obtained from Lifan Passenger Vehicle, Lifan Industry also agreed in the Lifan Acquisition Agreement that, it will indemnify any damages and loss arising from disputes of contracts entered into by Chongqing Zhizao prior to the Company’s acquisition of Chongqing Zhizao, including but not limited to above legal proceedings. On December 26, 2019, the Group disposed 100% equity interest of Chongqing Zhizao (Note 5), and the ongoing legal proceedings of Chongqing Zhizao were transferred out. Other than the above legal proceedings, the Group does not have any material litigation, and has not recorded any material liabilities in this regard as of December 31, 2019 and 2020. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Balances and Transactions | |
Related Party Balances and Transactions | 29. Related Party Balances and Transactions The principal related parties with which the Group had transactions during the years presented are as follows: Name of Entity or Individual Relationship with the Company Beijing Yihang Intelligent Technology Co., Ltd. (“Beijing Yihang”) Affiliate Neolix Technologies Co., Ltd. (“Neolix Technologies”) Affiliate Airx (Beijing) Technology Co., Ltd. (“Airx”) Affiliate The Group entered into the following significant related party transactions: For the Year Ended December 31, 2018 2019 2020 Purchase materials from Beijing Yihang 31 6,914 Purchase R&D service from Beijing Yihang 2,412 25,106 Purchase equipment and installation service from Airx 3,233 1,994 — Sales of battery packs and materials to Neolix Technologies 3,359 1,943 — The Group had the following significant related party balances: As of December 31, 2019 2020 Due from Neolix Technologies 1,510 678 As of December 31, 2019 2020 Due to Beijing Yihang 9,243 19,183 Due to Airx 521 23 Total 9,764 19,206 |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Net Assets. | |
Restricted Net Assets | 30. Restricted Net Assets The Group’s ability to pay dividends is primarily dependent on the Group receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s subsidiaries, consolidated VIEs and VIEs’ subsidiaries incorporated in PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Group’s subsidiaries. In accordance with the PRC Regulations on Enterprises with Foreign Investment, a foreign invested enterprise established in the PRC is required to provide certain statutory reserve funds, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profits as reported in the enterprise’s PRC statutory financial statements. A foreign invested enterprise is required to allocate at least 10% of its annual after‑tax profits to the general reserve fund until such reserve fund has reached 50% of its registered capital based on the enterprise’s PRC statutory financial statements. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserved funds can only be used for specific purposes and are not distributable as cash dividends. Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide statutory surplus fund at least 10% of its annual after‑tax profits until such statutory surplus fund has reached 50% of its registered capital based on the enterprise’s PRC statutory financial statements. A domestic enterprise is also required to provide discretionary surplus fund, at the discretion of the board of directors, from the net profits reported in the enterprise’s PRC statutory financial statements. The aforementioned reserve funds can only be used for specific purposes and are not distributable as cash dividends. As a result of these PRC laws and regulations that require annual appropriations of 10% of net after‑tax profits to be set aside prior to payment of dividends as general reserve fund or statutory surplus fund, the Group’s PRC subsidiaries, consolidated VIEs and VIEs’ subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. Amounts restricted include paid‑in capital and statutory reserve funds, less accumulate deficit if as determined pursuant to PRC GAAP, totaling approximately RMB8,288,297 and RMB7,644,467 as of December 31, 2019 and 2020, respectively; therefore in accordance with Rules 4‑08 (e) (3) of Regulation S‑X, the condensed parent company only financial statements as of December 31, 2019 and 2020 and for the years ended December 31, 2018, 2019 and 2020 are disclosed in Note 31. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Parent Company Only Condensed Financial Information | |
Parent Company Only Condensed Financial Information | 31. Parent Company Only Condensed Financial Information The Company performed a test on the restricted net assets of its consolidated subsidiaries and VIEs in accordance with Securities and Exchange Commission Regulation S‑X Rule 4‑08 (e) (3), General Notes to Financial Statements and concluded that it was applicable for the Company to disclose the financial information for the Company only. The subsidiaries did not pay any dividend to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements are not the general‑purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Company. The Company did not have significant capital and other commitments, or guarantees as of December 31, 2019 and 2020. Condensed balance sheets As of December 31, 2019 2020 2020 RMB RMB US$ Note 2(e) ASSETS Current assets: Cash and cash equivalents 641,007 1,149,374 176,149 Time deposits and short‑term investments 493,522 14,486,070 2,220,087 Amounts due from subsidiaries of the Group 4,917,305 14,065,341 2,155,609 Prepayments and other current assets 15,205 — — Total current assets 6,067,039 29,700,785 4,551,845 Non‑current assets: Investments in subsidiaries, VIEs and VIEs’ subsidiaries 81,077 42,754 6,553 Long‑term investments 90,724 64,916 9,949 Total non‑current assets 171,801 107,670 16,502 Total assets 6,238,840 29,808,455 4,568,347 LIABILITIES Current liabilities: Accruals and other current liabilities 9,019 4,858 744 Warrants and derivative liabilities 1,648,690 — — Total current liabilities 1,657,709 4,858 744 Total liabilities 1,657,709 4,858 744 As of December 31, 2019 2020 2020 RMB RMB US$ Note 2(e) MEZZANINE EQUITY Series Pre‑A convertible redeemable preferred shares 434,886 — — Series A‑1 convertible redeemable preferred shares 980,949 — — Series A‑2 convertible redeemable preferred shares 1,074,959 — — Series A‑3 convertible redeemable preferred shares 619,770 — — Series B‑1 convertible redeemable preferred shares 1,347,607 — — Series B‑2 convertible redeemable preferred shares 710,303 — — Series B‑3 convertible redeemable preferred shares 1,551,080 — — Series C convertible redeemable preferred shares 3,536,108 — — Total mezzanine equity 10,255,662 — — SHAREHOLDERS' (DEFICIT)/EQUITY Class A Ordinary shares 10 1,010 145 Class B Ordinary shares 155 235 36 Additional paid in capital — 37,289,761 5,714,907 Accumulated other comprehensive income/(loss) 15,544 (1,005,184) (154,041) Accumulated deficit (5,690,240) (6,482,225) (993,444) Total shareholders' (deficit)/equity (5,674,531) 29,803,597 4,567,603 Total liabilities, mezzanine equity and shareholders' (deficit)/equity 6,238,840 29,808,455 4,568,347 Condensed statements of comprehensive loss For the Year Ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Note 2(e) Operating expenses: Selling, general and administrative (14,643) (5,114) (9,424) (1,444) Total operating expenses (14,643) (5,114) (9,424) (1,444) Loss from operations (14,643) (5,114) (9,424) (1,444) Other income/(expense) Interest expense — (9,332) — — Interest income 598 20,505 4,467 685 Equity in loss of subsidiaries, VIEs and VIEs' subsidiaries (1,487,183) (2,031,371) (520,093) (79,708) Change in fair value of warrants and derivative liabilities — (426,425) 272,327 41,736 Investment (loss)/income, net (28,780) 14,880 106,823 16,371 Foreign exchange loss (2,310) (1,084) (5,861) (898) Others, net — (595) 104 15 Loss before income tax expense (1,532,318) (2,438,536) (151,657) (23,243) Income tax expense — — — — Net loss (1,532,318) (2,438,536) (151,657) (23,243) Accretion on convertible redeemable preferred shares to redemption value (317,320) (743,100) (651,190) (99,799) Deemed dividend to preferred shareholders upon extinguishment, net (Note 23) — (217,362) — — Effect of exchange rate changes on convertible redeemable preferred shares — 117,391 10,862 1,665 Net loss attributable to ordinary shareholders of Li Auto Inc. (1,849,638) (3,281,607) (791,985) (121,377) Net loss (1,532,318) (2,438,536) (151,657) (23,243) Other comprehensive income/(loss), net of tax Foreign currency translation adjustment, net of tax 12,954 2,851 (1,020,728) (156,423) Total comprehensive loss, net of tax (1,519,364) (2,435,685) (1,172,385) (179,666) Condensed statements of cash flows For the Year Ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Note 2(e) CASH FLOWS FROM OPERATING ACTIVITIES Net cash provided by operating activities 224,318 26,492 109,961 16,852 CASH FLOWS FROM INVESTING ACTIVITIES Payments to, and investments in subsidiaries, VIEs and VIEs’ subsidiaries (1,099,424) (4,384,396) (10,006,889) (1,533,623) Purchase of long‑term investments (100,303) — — — Placement of time deposit — (1,725,148) — — Withdraw of time deposit — 1,265,877 463,527 71,039 Placement of short‑term investments — (35,157) (75,367,086) (11,550,511) Withdraw of short-term investments — — 60,452,428 9,264,740 Net cash used in investing activities (1,199,727) (4,878,824) (24,458,020) (3,748,355) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs 958,658 5,254,333 3,851,034 590,197 Proceeds from issuance of convertible promissory notes — 168,070 — — Proceeds from IPO and concurrent private placements, net of issuance cost — — 11,034,685 1,691,139 Proceeds from follow-on offering, net of issuance costs — — 9,990,955 1,531,181 Net cash provided by financing activities 958,658 5,422,403 24,876,674 3,812,517 Effects of exchange rate changes on cash and cash equivalents 4,716 25,595 (20,248) (3,104) Net (decrease)/increase in cash, cash equivalents (12,035) 595,666 508,367 77,910 Cash, cash equivalents at beginning of the year 57,376 45,341 641,007 98,239 Cash, cash equivalents at end of the year 45,341 641,007 1,149,374 176,149 Basis of presentation The Company’s accounting policies are the same as the Group’s accounting policies with the exception of the accounting for the investments in subsidiaries and VIEs. For the Company only condensed financial information, the Company records its investments in subsidiaries and VIEs under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures. Such investments are presented on the condensed balance sheets as “investments in subsidiaries, VIEs and VIEs’ subsidiaries” and shares in the subsidiaries and VIEs’ loss are presented as “equity in loss of subsidiaries, VIEs and VIEs’ subsidiaries” in the condensed statements of comprehensive loss. The parent company only condensed financial information should be read in conjunction with the Group’ consolidated financial statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Event | |
Subsequent Events | 32. Subsequent Event In March 2021, the Group adopted 2021 Share Incentive Plan and granted options to purchase 108,557,400 Class B ordinary shares to Mr. Xiang Li, the founder and the CEO of the Company, with certain performance-based vesting conditions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Basis of presentation | (a) The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Significant accounting policies followed by the Group in the preparation of its accompanying consolidated financial statements are summarized below. |
Principles of consolidation | (b) The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIEs and VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power; has the power to appoint or remove the majority of the members of the board of directors (the “Board”); to cast majority of votes at the meeting of the Board or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All significant transactions and balances between the Company, its subsidiaries, VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. |
Use of estimates | (c) The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenue and expenses during the reported period in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group's consolidated financial statements mainly include, but are not limited to, standalone selling price of each distinct performance obligation in revenue recognition and determination of the amortization period of these obligations, the valuation of share-based compensation arrangements, fair value of investments, fair value of warrant liabilities and derivative liabilities, useful lives of property, plant and equipment, useful lives of intangible assets, assessment for impairment of long-lived assets, the collectability of financial assets, lower of cost and net realizable value of inventories, product warranties, determination of vendor rebate, assessment of variable lease payment, and valuation allowance for deferred tax assets. Actual results could differ from those estimates . |
Functional currency and foreign currency translation | (d) The Group’s reporting currency is the Renminbi (“RMB”). The functional currency of the Company and its subsidiary which is incorporated in Hong Kong is United States dollars (“US $ ”). The functional currencies of the other subsidiaries, the VIEs and VIEs’ subsidiaries are their respective local currencies. The determination of the respective functional currency is based on the criteria set out by ASC 830, Foreign Currency Matters . Transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated into functional currency using the applicable exchange rates at the balance sheet date. Non‑monetary items that are measured in terms of historical cost in foreign currency are measured using the exchange rates at the dates of the initial transactions. The financial statements of the Group’s entities of which the functional currency is not RMB are translated from their respective functional currency into RMB. Assets and liabilities denominated in foreign currencies are translated into RMB at the exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Income and expense items are translated into RMB using the periodic average exchange rates. The resulting foreign currency translation adjustments are recorded in other comprehensive income in the consolidated statements of comprehensive loss, and the accumulated foreign currency translation adjustments are presented as a component of accumulated other comprehensive income in the consolidated statements of shareholders’ deficit. Total foreign currency translation adjustment income were RMB12,954, and RMB2,851 for the years ended December 31, 2018 and 2019, respectively, and the foreign currency translation adjustment loss was RMB1,020,728 for the year ended December 31, 2020. |
Convenience translation | (e) Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive loss and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2020 are solely for the convenience of the reader and were calculated at the rate of US$ 1.00 = RMB6.5250, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2020. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. |
Cash, cash equivalents and restricted cash | (f) Cash and cash equivalents represent cash on hand, time deposits and highly liquid investments placed with banks or other financial institutions, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less. As of December 31, 2019 and 2020, the Group had cash held in accounts managed by online payment platforms such as China Union Pay in connection with the collection of vehicle sales for a total amount of RMB5,243 and RMB17,844, respectively, which have been classified as cash and cash equivalents on the consolidated financial statements. Cash that is restricted as to withdrawal for use or pledged as security is reported separately on the face of the consolidated balance sheets and is not included in the total cash and cash equivalents in the consolidated statements of cash flows. The Group’s restricted cash mainly represents (a) the secured deposits held in designated bank accounts for issuance of letter of credit, bank guarantee and bank acceptance bill; (b) the deposits held in designated bank accounts for security of the repayment of the notes payable (Note 13). Cash, cash equivalents and restricted cash as reported in the consolidated statements of cash flows are presented separately on our consolidated balance sheets as follows: As of December 31, 2019 2020 Cash and cash equivalents 1,296,215 8,938,341 Restricted cash 140,027 1,234,178 Total cash, cash equivalents and restricted cash of continuing operations 1,436,242 10,172,519 |
Time deposits and short-term investments | (g) Time deposits are those balances placed with the banks with original maturities longer than three months but less than one year. Short‑term investments are investments in financial instruments with variable interest rates. These financial instruments have maturity dates within one year and are classified as short‑term investments. The Group elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Fair value is estimated based on quoted prices of similar financial products provided by financial institutions at the end of each period. Changes in the fair value are reflected in the consolidated statements of comprehensive loss as “Investment income, net”. |
Trade Receivable and Allowance for Doubtful Accounts | (h) Trade receivable primarily include amounts of vehicle sales related to government subsidy to be collected from government on behalf of customers. The Group provides an allowance against trade receivable to the amount we reasonably believe will be collected. The Group writes off trade receivable when they are deemed uncollectible. No allowance for doubtful accounts were recognized for the years ended December 31, 2018, 2019 and 2020. |
Inventories | (i) Inventories are stated at the lower of cost or net realizable value. Cost is calculated on the weighted average basis and includes all costs to acquire and other costs to bring the inventories to their present location and condition. The Group records inventory write‑downs for excess or obsolete inventories based upon assumptions on current and future demand forecasts. If the inventory on hand is in excess of future demand forecast, the excess amounts are written off. The Group also reviews inventory to determine whether its carrying value exceeds the net amount realizable upon the ultimate sale of the inventory. This requires the determination of the estimated selling price of the vehicles less the estimated cost to convert inventory on hand into a finished product. Once inventory is written‑down, a new, lower‑cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. No inventory write‑downs were recognized for the years ended December 31, 2018, 2019 and 2020. |
Assets held for sale | (j) The Group classifies long‑lived assets as held for sale in the period that (i) it has approved and committed to a plan to sell the asset or asset group (“asset”), (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated, (iv) the sale of the asset is probable and transfer of the asset is expected to qualify for recognition as a completed sale within one year (subject to certain events or circumstances), (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Group initially and subsequently measures a long‑lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in impairment of long‑lived assets in the period in which the held for sale criteria are met. Conversely, gains are generally not recognized on the sale of a long‑lived asset until the date of sale. Upon designation as an asset held for sale, the Group stops recording depreciation expense on the asset. The Group assesses the fair value of assets held for sale less any costs to sell at each reporting period until the asset is no longer classified as held for sale. |
Property, plant and equipment, net | (k) Property, plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any. Property, plant and equipment are depreciated at rates sufficient to write off their costs less impairment and residual value, if any, over their estimated useful lives on a straight‑line basis. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Direct costs that are related to the construction of property, equipment and software and incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property, equipment and software items and the depreciation of these assets commences when the assets are ready for their intended use. The estimated useful lives are as follows: Useful Lives Buildings 20 years Buildings improvements 5 to 10 years Production facilities 5 to 10 years Equipment 3 to 5 years Motor vehicles 4 years Mold and tooling Unit-of-production Leasehold improvements Shorter of the estimated useful life or lease term The cost of maintenance and repairs is expensed as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, plant and equipment is capitalized as additions to the related assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from their respective accounts, and any gain or loss on such sale or disposal is reflected in the consolidated statements of comprehensive loss. |
Intangible assets, net | (l) Intangible assets are carried at cost less accumulated amortization and impairment, if any. Intangible assets are amortized using the straight‑line method over the estimated useful lives as below: Useful Lives Automotive Manufacturing Permission Indefinite Software and Patents 5 to 10 years |
Impairment of long-lived assets and intangible assets with indefinite lives | (m) Long‑lived assets include property, plant and equipment and intangible assets with definite lives. Long‑lived assets are assessed for impairment, whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate the carrying value of an asset may not be recoverable in accordance with ASC360. The Company measures the carrying amount of long‑lived assets against the estimated undiscounted future cash flows associated with it. The impairment exists when the estimated undiscounted future cash flows are less than the carrying value of the asset being evaluated. Impairment loss is calculated as the amount by which the carrying value of the asset exceeds its fair value. Nil, RMB18,066 and RMB30,381 impairment of long‑lived assets were recognized for the years ended December 31, 2018, 2019 and 2020, respectively. Intangible assets with indefinite lives are tested for impairment at least annually and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired in accordance with ASC 350. The Company first performs a qualitative assessment to assess all relevant events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite‑lived intangible asset. If after performing the qualitative assessment, the Company determines that it is more likely than not that the indefinite‑lived intangible asset is impaired, the Company calculates the fair value of the intangible asset and perform the quantitative impairment test by comparing the fair value of the asset with its carrying amount. If the carrying amount of an indefinite‑lived intangible asset exceeds its fair value, the Company recognizes an impairment loss in an amount equal to that excess. No impairment of indefinite‑lived intangible assets was recognized for the years ended December 31, 2018, 2019 and 2020. |
Long-term investments | (n) Long‑term investments Long‑term investments are comprised of investments in publicly traded companies and privately‑held companies. The Group adopted ASU 2016‑01 on January 1, 2018. The Group measures equity investments other than equity method investments at fair value through earnings. For those equity investments without readily determinable fair values, the Group elects to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Under this measurement alternative, changes in the carrying value of the equity investment are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The implementation guidance notes that an entity should make a “reasonable efforts” to identify price changes that are known or that can reasonably be known. Pursuant to ASC 321, for equity investments measured at fair value with changes in fair value recorded in earnings, the Group does not assess whether those securities are impaired. For those equity investments that the Group elects to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss equal to the difference between the carrying value and fair value. Investments in entities over which the Group can exercise significant influence and hold an investment in common shares or in‑substance common shares (or both) of the investee but do not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC topic 323, Investment—Equity Method and Joint Ventures (“ASC 323”). Under the equity method, the Group initially records its investments at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill, which is included in the equity method investment on our consolidated balance sheets. The Group subsequently adjusts the carrying amount of the investments to recognize our proportionate share of each equity investee’s net income or loss into earnings after the date of investment. The Group evaluates the equity method investments for impairment under ASC 323. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other‑than‑temporary. The Group assesses its investments in privately‑held companies for impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the companies, including current earnings trends and undiscounted cash flows, and other company‑specific information, such as recent financing rounds. The fair value determination, particularly for investments in privately‑held companies whose revenue model is still unclear, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments. If this assessment indicates that an impairment exists, the Group estimates the fair value of the investment and writes down the investment to its fair value, taking the corresponding charge to the consolidated statements of comprehensive loss. |
Employee benefits | (o) Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries and VIEs and VIEs’ subsidiaries of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. Total amounts of such employee benefit expenses, which were expensed as incurred, were approximately RMB110,800, RMB168,019 and RMB133,162 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Product warranties | (p) The Group provides product warranties on all new vehicles based on the contracts with its customers at the time of sale of vehicles. The Group accrues a warranty reserve for the vehicles sold, which includes the best estimate of projected costs to repair or replace items under warranties. These estimates are primarily based on the estimates of the nature, frequency and average costs of future claims. These estimates are inherently uncertain given the Group’s relatively short history of sales, and changes to the historical or projected warranty experience may cause material changes to the warranty reserve in the future. The portion of the warranty reserve expected to be incurred within the next 12 months is included within the accrued and other current liabilities while the remaining balance is included within other non‑current liabilities in the consolidated balance sheets. Warranty cost is recorded as a component of cost of sales in the consolidated statements of comprehensive loss. The Group reevaluates the adequacy of the warranty accrual on a regular basis. The Group recognizes the benefit from a recovery of the costs associated with the warranty when specifics of the recovery have been agreed with the Group’s suppliers and the amount of the recovery is virtually certain. The accrued warranty activity consists of the following (in thousands): For the Year Ended December 31, 2018 2019 2020 Accrued warranty at beginning of the year — — 6,996 Warranty cost incurred — (163) (8,258) Provision for warranty — 7,159 234,628 Accrued warranty at end of the year — 6,996 233,366 Including: Accrued warranty, current — 1,477 55,138 Accrued warranty, non-current — 5,519 178,228 |
Revenue recognition | (q) The Group launched the first volume manufactured extended‑range electric vehicle, Li ONE, to the public in October 2018 and started making deliveries to customers in the fourth quarter of 2019. Revenues of the Group is primarily derived from sales of vehicle and embedded products and services, as well as the sales of Li Plus Membership. The Group adopted ASC 606, Revenue from Contracts with Customers , on January 1, 2018 by applying the full retrospective method. Revenue is recognized when or as the control of the goods or services is transferred to a customer. Depending on the terms of the contract and the laws that apply to the contract, control of the goods and services may be transferred over time or at a point in time. Control of the goods and services is transferred over time if the Group’s performance: · provides all of the benefits received and consumed simultaneously by the customer; · creates and enhances an asset that the customer controls as the Group performs; or · does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. If control of the goods and services transfers over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the goods and services. Contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenue to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices based on the prices charged to customers. If the standalone selling price is not directly observable, it is estimated using expected cost plus a margin, depending on the availability of observable information. Assumptions and estimations have been made in estimating the relative selling price of each distinct performance obligation, and changes in judgments on these assumptions and estimates may impact the revenue recognition. When either party to a contract has performed, the Group presents the contract in the statement of financial position as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment. A contract asset is the Group’s right to consideration in exchange for goods and services that the Group has transferred to a customer. A receivable is recorded when the Group has an unconditional right to consideration. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. If a customer pays consideration or the Group has a right to an amount of consideration that is unconditional, before the Group transfers a good or service to the customer, the Group presents the contract liability when the payment is made, or a receivable is recorded (whichever is earlier). A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. Vehicle sales The Group generates revenue from sales of vehicles, currently the Li ONE, together with a number of embedded products and services. There are multiple distinct performance obligations explicitly stated in the sales contracts including sales of Li ONE, charging stalls, vehicle internet connection services, firmware over‑the‑air upgrades (or “FOTA upgrades”) and initial owner extended lifetime warranty subject to certain conditions, which are accounted for in accordance with ASC 606. The standard warranty provided by the Group is accounted for in accordance with ASC 460, Guarantees , and the estimated costs are recorded as a liability when the Group transfers the control of Li ONE to a customer. Customers only pay the amount after deducting the government subsidies to which they are entitled for the purchase of new energy vehicles, which is applied on their behalf and collected by the Group from the government according to the applicable government policy. The Group has concluded that government subsidies should be considered as a part of the transaction price it charges the customers for the new energy vehicles, as the subsidy is granted to the purchaser of the new energy vehicles and the purchaser remains liable for such amount in the event the subsidies were not received by the Group due to his fault such as refusal or delay of providing application information. The overall contract price is allocated to each distinct performance obligation based on the relative estimated standalone selling price in accordance with ASC 606. The revenue for sales of the Li ONE and charging stalls are recognized at a point in time when the control of the product is transferred to the customer. For the vehicle internet connection service and FOTA upgrades, the Group recognizes the revenue using a straight‑line method over the service period. As for the initial owner extended lifetime warranty, given the limited operating history and lack of historical data, the Group recognizes the revenue over time based on a straight‑line method over the extended warranty period initially, and will continue monitoring the cost pattern periodically and adjust the revenue recognition pattern to reflect the actual cost pattern as it becomes available. As the contract price for the vehicle and all embedded products and services must be paid in advance, which means the payments are received prior to the transfer of goods or services by the Group, the Group records a contract liability (deferred revenue) for the allocated amount regarding those unperformed obligations. Sales of Li Plus Membership The Group also sells the Li Plus Membership to enrich the ownership experience of customers. Total Li Plus Membership fee is allocated to each performance obligation based on the relative estimated standalone selling price. And the revenue for each performance obligation is recognized either over the service period or at a point in time when the relevant goods or service is delivered or when the membership expired, whichever is earlier. Customer loyalty points Beginning in January 2020, the Group offers customer loyalty points, which can be used in the Group's online store to redeem the Group's merchandise or services. The Group determines the value of each customer loyalty point based on cost of the Group's merchandise or service that can be obtained through redemption of customer loyalty points. The Group concludes the customer loyalty points offered to customers in connection with the purchase of the Li ONE is a material right and is considered as a separate performance obligation according to ASC 606 , and should be taken into consideration when allocating the transaction price of the sales of vehicle. The amount allocated to the customer loyalty points as separate performance obligation is recorded as contract liability (deferred revenue) and revenue should be recognized when the customer loyalty points are used or expired. Customers or users of the mobile application can also obtain customer loyalty points through other ways, such as referring new customers to purchase the vehicles via the mobile application. The Group offers these customer loyalty points to encourage user engagement and generate market awareness. As a result, the Group accounts for such points as selling and marketing expenses with a corresponding liability recorded under accruals and other current liabilities upon the points offering. Practical expedients and exemptions The Group elects to expense the costs to obtain a contract as incurred given the majority of the contract considerations for vehicle sales are allocated to the sales of Li ONE and recognized as revenue upon transfer of control of the vehicles, which is within one year after entering the sales contracts. |
Cost of sales | (r) Cost of sales consists of direct production and material costs, labor costs, manufacturing overhead (including depreciation of assets associated with the production), shipping and logistic costs and reserves for estimated warranty costs. The cost of sales also includes adjustments to warranty costs and charges to write‑down the carrying value of the inventory when it exceeds its estimated net realizable value and to provide for on‑hand inventory that is either obsolete or in excess of forecasted demand. |
Research and development expenses | (s) Research and development ("R&D") expenses are primary comprised of salaries, bonuses and benefits for those employees engaged in research, design and development activities; design and development expenses, primarily including consultation fees, validation and testing fees; depreciation and amortization expenses of equipment and software of R&D activities and other expenses. R&D costs are expensed as incurred . |
Sales and marketing expenses | (t) Sales and marketing expenses consist primarily of salaries and other compensation related expenses for sales and marketing personnel, marketing and promotional expenses, rental and related expenses for retail stores and delivery and servicing centers and other expenses. |
General and administrative expenses | (u) General and administrative expenses consist primarily of salaries, bonuses and benefits for employees involved in general corporate functions, including finance, legal and human resources, depreciation and amortization expenses primarily relating to leasehold improvements, factory buildings, facilities, and equipment prior to the start of production, rental and other general corporate related expenses. |
Fair value | (v) Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be either recorded or disclosed at fair value, the Group considers the principal or most advantageous market in which it would transact, and it also considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2—Observable, market‑based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3—Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market‑based or independently sourced market parameters, such as interest rates and currency rates. |
Share-based compensation | (w) The Company grants share options to eligible employees, directors and consultants and accounts for share‑based compensation in accordance with ASC 718, Compensation—Stock Compensation . Employees' share-based compensation awards granted with service conditions and the occurrence of an IPO as performance condition, are measured at the grant date fair value. Cumulative share-based compensation expenses for the options that have satisfied the service condition should be recorded upon the completion of the IPO, using the graded-vesting method. This performance condition was met upon the completion of the Company’ IPO in August 2020 and the associated share-based compensation expense for awards vested as of that date were recognized. Employees' share-based compensation awards granted with only service conditions are recognized as expenses over the vesting period, using the straight-line vesting method, net of estimated forfeitures. The binomial option‑pricing model is used to measure the value of share options. The determination of the fair value is affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk‑free interest rates and expected dividends. The fair value of these awards was determined taking into account these factors. The assumptions used in share‑based compensation expense recognition represent management’s best estimates, but these estimates involve inherent uncertainties and application of management judgment. If factors change or different assumptions are used, the share‑based compensation expenses could be materially different for any period. Moreover, the estimates of fair value of the awards are not intended to predict actual future events or the value that ultimately will be realized by grantees who receive share‑based awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company for accounting purposes. |
Taxation | (x) Current income taxes are recorded in accordance with the regulations of the relevant tax jurisdiction. The Group accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Tax . Under this method, deferred tax assets and liabilities are recognized for the tax consequences attributable to differences between carrying amounts of existing assets and liabilities in the financial statements and their respective tax basis, and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive loss in the period of change. Valuation allowances are established when necessary to reduce the amount of deferred tax assets if it is considered more likely than not that amount of the deferred tax assets will not be realized . The Group records liabilities related to uncertain tax positions when, despite the Group’s belief that the Group’s tax return positions are supportable, the Group believes that it is more likely than not that those positions may not be fully sustained upon review by tax authorities. Accrued interest and penalties related to unrecognized tax benefits are classified as income tax expense. The Group did not recognize uncertain tax positions as of December 31, 2019 and 2020. |
Discontinued operations | (y) Discontinued operations are reported when a component of the Group comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Group is classified as held for disposal or has been disposed of, if the disposal of the component (1) represents a strategic shift and (2) have a major impact on the Group’s financial results. In the consolidated statements of comprehensive loss, results from discontinued operations is reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. Cash flows for discontinuing operations are presented separately in the consolidated statements of cash flow and Note 21. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra‑group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. |
Leases | (z) The Group accounts for leases in accordance with ASC 842, Leases (“ASC 842”), which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. The Group adopted ASC 842 on January 1, 2018, along with all subsequent ASU clarifications and improvements that are applicable to the Group, to each lease that existed in the periods presented in the financial statements, using the modified retrospective transition method and used the commencement date of the leases as the date of initial application. Consequently, financial information and the disclosures required under ASC 842 are provided for dates and periods presented in the financial statements. The Company elected not to apply the recognition requirements of ASC 842 to short‑term leases. The Company also elected not to separate non‑lease components from lease components, therefore, it will account for lease component and the non‑lease components as a single lease component when there is only one vendor in the lease contract. The adoption of ASC 842 resulted in recognition of right of use (“ROU”) assets of RMB158,770, current operating lease liabilities of RMB14,575 and non‑current operating lease liabilities of RMB142,751 upon the adoption date. The Group determines if a contract contains a lease based on whether it has the right to obtain substantially all of the economic benefits from the use of an identified asset which the Group does not own and whether it has the right to direct the use of an identified asset in exchange for consideration. ROU assets represent the Group’s right to use an underlying asset for the lease term and lease liabilities represent the Group’s obligation to make lease payments arising from the lease. ROU assets are recognized as the amount of the lease liability, adjusted for lease incentives received. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the Group’s incremental borrowing rate (“IBR”), because the interest rate implicit in most of the Group’s leases is not readily determinable. The IBR is a hypothetical rate based on the Group’s understanding of what its credit rating would be to borrow and resulting interest the Group would pay to borrow an amount equal to the lease payments in a similar economic environment over the lease term on a collateralized basis. Lease payments may be fixed or variable, however, only fixed payments or in‑substance fixed payments are included in the Group’s lease liability calculation. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred. The land use rights are operating leases with term of about 50 years. Other than the land use rights, the lease terms of operating and finance leases vary from more than a year to 20 years. Operating leases are included in operating lease right of use assets, current and non‑current operating lease liabilities on the Group’s consolidated balance sheets. Finance leases are included in property, plant and equipment, net, current and non‑current finance lease liabilities on the Group’s consolidated balance sheets. As of December 31, 2020, all of the Group’s ROU assets were generated from leased assets in the PRC. In a sale and leaseback transaction, one party (the seller‑lessee) sells an asset it owns to another party (the buyer‑lessor) and simultaneously leases back all or a portion of the same asset for all, or part of, the asset’s remaining economic life. The seller‑lessee transfers legal ownership of the asset to the buyer‑lessor in exchange for consideration, and then makes periodic rental payments to the buyer‑lessor to retain the use of the asset. The Company applies requirements in Topic 606 on revenue from contracts with customers when determining whether the transfer of an asset shall be accounted for as a sale of the asset. An option for the seller‑lessee to repurchase the asset would preclude accounting for the transfer of the asset as a sale of the asset unless both of the following criteria are met: a. The exercise price of the option is the fair value of the asset at the time the option is exercised. b. There are alternative assets, substantially the same as the transferred asset, readily available in the marketplace. |
Loss per share | (aa) Basic net loss per share is computed using the weighted average number of ordinary shares outstanding during the period using the two-class method. Diluted net loss per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period. Potential ordinary shares include ordinary shares issuable upon the conversion of the Preferred Shares, using the if-converted method, for periods prior to the completion of the IPO, and ordinary shares issuable upon the exercise of outstanding share options using the treasury stock method. The computation of diluted net loss per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net loss per share. After the completion of the IPO, net loss per ordinary share is computed on Class A ordinary shares and Class B ordinary shares on the combined basis, because both classes have the same dividend rights in the Company's undistributed net income. |
Comprehensive loss | (ab) Comprehensive loss is defined to include all changes in equity/(deficit) of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Accumulated other comprehensive income, as presented in the consolidated balance sheets, consists of accumulated foreign currency translation adjustments. |
Segment reporting | (ac) ASC 280, Segment Reporting , establishes standards for companies to report in their financial statements information about operating segments, products, services, geographic areas, and major customers. Based on the criteria established by ASC 280, the Group’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole, and hence, the Group has only one reportable segment. The Group does not distinguish between markets or segments for the purpose of internal reporting. As the Group’s long‑lived assets are substantially located in the PRC, no geographical segments are presented. |
Organization and Nature of Op_2
Organization and Nature of Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |
Schedule of Company's principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | As of December 31, 2020, the Company’s principal subsidiaries, consolidated VIEs and VIEs’ subsidiaries are as follows: Equity Interest Held Date of Incorporation or Date of Acquisition Place of Incorporation Principal Activities Subsidiaries: Leading Ideal HK Limited (“Leading Ideal HK”) 100 % May 15, 2017 Hong Kong, China Investment holding Beijing Co Wheels Technology Co., Ltd. (“Wheels Technology”) 100 % December 19, 2017 Beijing, PRC Technology development and corporate management Leading (Xiamen) Private Equity Investment Co., Ltd.(“Xiamen Leading”) 100 % May 14, 2019 Xiamen, PRC Investment holding Beijing Leading Automobile Sales Co., Ltd.(“Beijing Leading”) 100 % August 6, 2019 Beijing, PRC Sales and after sales management VIEs Beijing CHJ Information Technology Co., Ltd. (“Beijing CHJ”) 100 % April 10, 2015 Beijing, PRC Technology development Beijing Xindian Transport Information Technology Co., Ltd. (“Xindian Information”) 100 % March 27, 2017 Beijing, PRC Technology development VIEs’ subsidiaries Jiangsu CHJ Automobile Co., Ltd. (“Jiangsu CHJ”) 100 % June 23, 2016 Changzhou, PRC Purchase of manufacturing equipment Beijing Xindian Intelligence Technology Co., Ltd. (“Beijing XDIT”) 100 % January 05, 2017 Beijing, PRC Technology development Jiangsu Xindian Interactive Sales and Services Co., Ltd. (“Jiangsu XD”) 100 % May 08, 2017 Changzhou, PRC Sales and after sales management Beijing Chelixing Information Technology Co., Ltd. (“Beijing Chelixing”) 100 % June 25, 2018 Beijing, PRC Technology development Chongqing Lixiang Automobile Co., Ltd. (“Chongqing Lixiang Automobile”) 100 % October 11, 2019 Chongqing, PRC Manufacturing of automobile |
VIEs and VIEs' subsidiaries | |
Variable Interest Entity [Line Items] | |
Schedule of consolidated financial information of the Group's VIEs and VIEs' subsidiaries | The following consolidated financial information of the Group's VIEs and VIEs' subsidiaries as of December 31, 2019 and 2020 and for the years ended December 31, 2018, 2019 and 2020 were included in the accompanying Group's consolidated financial statements as follows: As of December 31, 2019 2020 RMB RMB Current assets: Cash and cash equivalents 240,933 1,546,193 Restricted cash 14,455 1,234,178 Short‑term investments 1,278,153 2,581,690 Trade receivable 8,303 103,271 Intra‑group receivables 1,927,560 7,704,630 Inventories 389,031 271,379 Prepayments and other current assets 556,112 254,061 Assets held for sale, current 17,599 — Non‑current assets: Long‑term investments 600,615 707,685 Property, plant and equipment, net 1,755,686 2,335,824 Operating lease right‑of‑use assets, net 508,871 1,182,134 Intangible assets, net 673,517 682,083 Other non‑current assets 130,749 218,531 Assets held for sale, non‑current 30,253 — Total assets 8,131,837 18,821,659 Current liabilities: Short‑term borrowings 238,957 — Trade and notes payable 616,340 3,107,646 Intra‑group payable 3,732,883 12,203,705 Amounts due to related parties 5,469 19,206 Operating lease liabilities, current 176,669 170,033 Finance lease liabilities, current 360,781 — Deferred revenue, current 56,695 230,720 Accruals and other current liabilities 660,010 453,731 Convertible debts, current 692,520 — Liabilities held for sale, current 2,862 — Non‑current liabilities: Long-term borrowings — 511,638 Deferred revenue, non‑current 5,943 102,898 Operating lease liabilities, non‑current 241,109 973,455 Finance lease liabilities, non‑current — 366,883 Deferred tax liabilities — 36,309 Other non‑current liabilities 5,519 157,907 Total liabilities 6,795,757 18,334,131 These balances have been reflected in the Group’s consolidated financial statements with intercompany transactions eliminated. For the Year Ended December 31, 2018 2019 2020 Net loss from continuing operations (1,076,613) (1,234,283) (495,209) Net (loss)/income from discontinued operations (367,022) (20,662) 14,373 For the Year Ended December 31, 2018 2019 2020 Net cash (used in)/provided by operating activities (1,223,050) (1,607,435) 3,540,411 Net cash used in investing activities (214,027) (1,976,964) (1,665,982) Net cash provided by financing activities 1,019,824 3,782,378 650,595 Effects of exchange rate changes on cash, cash equivalents and restricted cash (1,320) 19,746 (188) Net (decrease)/increase in cash, cash equivalents and restricted cash (418,573) 217,725 2,524,836 Cash, cash equivalents and restricted cash at beginning of the year 456,383 37,810 255,535 Cash, cash equivalents and restricted cash at end of the year 37,810 255,535 2,780,371 Less: Cash, cash equivalents and restricted cash of discontinued operations at end of the year 331 147 — Cash, cash equivalents and restricted cash of continuing operations at end of the year 37,479 255,388 2,780,371 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Schedule of cash, cash equivalents and restricted cash | As of December 31, 2019 2020 Cash and cash equivalents 1,296,215 8,938,341 Restricted cash 140,027 1,234,178 Total cash, cash equivalents and restricted cash of continuing operations 1,436,242 10,172,519 |
Schedule of estimated useful lives of property, plant and equipment | Useful Lives Buildings 20 years Buildings improvements 5 to 10 years Production facilities 5 to 10 years Equipment 3 to 5 years Motor vehicles 4 years Mold and tooling Unit-of-production Leasehold improvements Shorter of the estimated useful life or lease term |
Schedule of estimated useful lives of intangible assets | Useful Lives Automotive Manufacturing Permission Indefinite Software and Patents 5 to 10 years |
Schedule of accrued warranty activity | For the Year Ended December 31, 2018 2019 2020 Accrued warranty at beginning of the year — — 6,996 Warranty cost incurred — (163) (8,258) Provision for warranty — 7,159 234,628 Accrued warranty at end of the year — 6,996 233,366 Including: Accrued warranty, current — 1,477 55,138 Accrued warranty, non-current — 5,519 178,228 |
Acquisition of Chongqing Zhiz_2
Acquisition of Chongqing Zhizao (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Acquisition of Chongqing Zhizao | |
Summary of balance of the assets acquired and liabilities assumed as of the date of acquisition and disposed as of the date of disposal | The following table summarizes the balance of the assets acquired and liabilities assumed as of the date of acquisition and disposed as of the date of disposal, respectively: As of the Date As of the Date of Acquisition of Disposal Cash and cash equivalents and restricted cash 25,004 119 Short‑term borrowing(1) (20,000) (18,115) Working capital(2) (382,350) (177,231) Finance lease liabilities, current(3) (66,111) (76,654) Finance lease liabilities, non‑current(3) (19,547) — Indemnification Receivables(4) 465,830 276,384 Net assets acquired/disposed 2,826 4,503 Intangible assets: Automotive Manufacturing Permission(5) 647,174 — Total 650,000 4,503 (1) Short‑term borrowing represents the outstanding bank loan principal, with the amount of RMB20,000 due by February 7, 2019, of which RMB1,885 has been repaid as of December 26, 2019. (2) Working capital primarily included prepayments, trade payables, notes payable and accrued liabilities. (3) Chongqing Zhizao had existing lease agreements with two third‑party lessors for certain manufacturing equipment, which had been accounted for as finance lease. (4) The balance represents the receivables from Lifan Passenger Vehicle intended to indemnify for all the Retained Assets and Liabilities that could not be legally transferred out before the Acquisition. (5) As there’s no limit to the valid period of the Automotive Manufacturing Permission, the Automotive Manufacturing Permission was classified as an intangible asset with indefinite lives. As of December 31, 2019 and 2020, no impairment was recognized for the Automotive Manufacturing Permission. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories | |
Summary of inventories | As of December 31, 2019 2020 Finished products 144,543 820,168 Raw materials, work in process and supplies 373,543 227,836 Total 518,086 1,048,004 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepayments and Other Current Assets | |
Summary of prepayments and other current assets | As of December 31, 2019 2020 Deductible VAT input 495,150 196,021 Prepayments to vendors 217,883 104,271 Prepaid rental and deposits 67,969 30,357 Loan receivable from Lifan Holdings(1) 8,000 8,000 Others 23,954 15,006 Total 812,956 353,655 (1) Loan receivable from Lifan Holdings will be repaid when the Group pays the remaining consideration of the Acquisition, as stipulated in the loan agreement. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment, Net. | |
Summary of property, plant and equipment and related accumulated depreciation | As of December 31, 2019 2020 Mold and tooling 950,140 987,316 Production facilities 904,239 787,970 Buildings 431,075 404,772 Buildings improvements 307,174 311,947 Leasehold improvements 139,118 249,879 Equipment 138,102 175,887 Construction in process 110,341 53,579 Motor vehicles 28,384 36,409 Total 3,008,573 3,007,759 Less: Accumulated depreciation (195,385) (498,691) Less: Accumulated impairment loss (18,066) (30,381) Total property, plant and equipment, net 2,795,122 2,478,687 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets, Net | |
Summary of intangible assets and related accumulated amortization | As of December 31, 2019 2020 Automotive Manufacturing Permission (Note 5) 647,174 647,174 Indefinite‑lived intangible assets, net 647,174 647,174 Software 39,698 58,097 Patents 694 694 Definite‑lived intangible assets 40,392 58,791 Less: Accumulated amortization (13,699) (22,684) Definite‑lived intangible assets, net 26,693 36,107 Total intangible assets, net 673,867 683,281 |
Summary of amortization expenses related to intangible assets for future periods | As of December 31, 2020 2021 9,008 2022 8,415 2023 5,983 2024 3,203 2025 and thereafter 9,498 Total 36,107 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Schedule of components of lease expenses | For the Year Ended December 31, 2018 2019 2020 Lease cost Finance lease cost: Amortization of assets 15,501 15,501 15,346 Interest of lease liabilities 18,841 19,943 21,851 Operating lease cost 22,811 86,365 176,788 Short‑term lease cost 2,682 6,801 4,937 Total 59,835 128,610 218,922 |
Supplemental cash flows information related to leases | For the Year Ended December 31, 2018 2019 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows payment for operating leases 121,681 77,643 126,418 Right‑of‑use assets obtained in exchange for lease liabilities: Right‑of‑use assets obtained in exchange for new operating lease liabilities 114,322 207,902 896,804 |
Supplemental balance sheet information related to operating leases | As of December 31, 2019 2020 Operating Leases Land use rights, net (i, ii) 183,383 181,505 Operating lease right‑of‑use assets, net (excluding land use rights) 326,844 1,095,501 Total operating lease assets 510,227 1,277,006 Operating lease liabilities, current 177,526 210,531 Operating lease liabilities, non‑current 241,109 1,025,253 Total operating lease liabilities 418,635 1,235,784 |
Supplemental balance sheet information related to finance leases | As of December 31, 2019 2020 Finance Leases Property, plant and equipment, at cost (i) 310,018 294,269 Accumulated depreciation (41,336) (56,682) Property, plant and equipment, net 268,682 237,587 Finance lease liabilities, current 360,781 — Finance lease liabilities, non‑current — 366,883 Total finance leases liabilities 360,781 366,883 |
Schedule of weighted-average remaining lease term and discount rate | As of December 31, 2019 2020 Weighted‑average remaining lease term Land use rights 48 years 47 years Operating leases 5 years 11 years Finance leases 17 years 16 years Weighted‑average discount rate Land use rights 5.7 % % Operating leases 5.7 % % Finance leases 5.7 % % |
Schedule of maturities of finance lease liabilities | As of December 31, 2020 Operating Finance leases leases 2021 213,064 21,070 2022 274,457 392,378 2023 145,219 — 2024 104,132 — 2025 88,748 — Thereafter 882,938 — Total undiscounted lease payments 1,708,558 413,448 Less: imputed interest (472,774) (46,565) Total lease liabilities 1,235,784 366,883 |
Schedule of maturities of operating lease liabilities | As of December 31, 2020 Operating Finance leases leases 2021 213,064 21,070 2022 274,457 392,378 2023 145,219 — 2024 104,132 — 2025 88,748 — Thereafter 882,938 — Total undiscounted lease payments 1,708,558 413,448 Less: imputed interest (472,774) (46,565) Total lease liabilities 1,235,784 366,883 |
Other Non-current Assets (Table
Other Non-current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Non-current Assets | |
Schedule of other non-current assets | As of December 31, 2019 2020 Long-term deposits 121,007 149,235 Prepayments for purchase of property, plant and equipment 11,754 126,006 Prepayment for purchase of land use rights 175,582 — Others 3,590 45,943 Total 311,933 321,184 |
Long term Investments (Tables)
Long term Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Investments. | |
Schedule of long-term investments | Equity Security Equity With Securities Readily Without Readily Determinable Determinable Fair Equity Method Fair Values Values Total Balance at January 1, 2018 4,364 — 18,150 22,514 Additions 98,000 — 115,303 213,303 Shares of loss of equity method investees (35,826) — — (35,826) Changes from investments without readily determinable fair value to readily determinable fair value — 100,303 (100,303) — Fair value change through earnings — (28,780) — (28,780) Foreign currency translation — 5,930 — 5,930 Balance at December 31, 2018 66,538 77,453 33,150 177,141 Additions 98,000 — — 98,000 Shares of loss of equity method investees (162,725) — — (162,725) Fair value change through earnings — 12,550 — 12,550 Changes of interest in the equity method investees 5,494 — — 5,494 Impairment — — (5,000) (5,000) Foreign currency translation — 721 — 721 Balance at December 31, 2019 7,307 90,724 28,150 126,181 Additions — — 65,000 65,000 Shares of loss of equity method investees (2,520) — — (2,520) Fair value change through earnings — (21,975) — (21,975) Foreign currency translation — (3,833) — (3,833) Balance at December 31, 2020 4,787 64,916 93,150 162,853 |
Schedule of carrying amount and fair value of equity securities with readily determinable fair values | Foreign Unrealized Currency Cango Inc. Cost Basis Loss Translation Fair Value As of December 31, 2019 100,303 (16,230) 6,651 90,724 As of December 31, 2020 100,303 (38,205) 2,818 64,916 |
Short-term Borrowings and Lon_2
Short-term Borrowings and Long-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short-term Borrowings and Long-term Borrowings | |
Schedule of short-term and long-term borrowings | Short‑term and long-term borrowings consist of the following: Maturity Principal Interest Rate As of December 31, Date Amount Per Annum 2019 2020 Secured borrowing(1) December 31, 2020 94,550 5.7000 % 95,022 — Unsecured bank loan(2) October 7, 2020 30,000 5.6550 % 30,000 — Secured note payable (3) February 11, 2020 108,737 5.5163 % 113,935 — Total short-term borrowings 238,957 — Maturity Principal Interest Rate As of December 31, Date Amount Per Annum 2019 2020 Secured borrowing (1) December 31, 2022 94,550 6.1750 % — 98,717 Unsecured corporate loan (4) June 30, 2022 401,073 6.1750 % — 412,921 Total long-term borrowings — 511,638 (1) As the transaction in relation to Changzhou Production Base II did not qualify the sales accounting, the consideration received excluding the related taxes was treated as a secured borrowing and recorded as a short-term borrowing as of December 31,2019. In June 2020, the Group entered into a series of supplemental agreements with the lessor. Pursuant to the supplemental agreements, the maturity date of the borrowing was extended to December 31, 2022. As a result, the borrowing was recorded as a long-term borrowing as of December 31, 2020. (2) On October 12, 2019, Beijing CHJ entered into a loan agreement with commercial bank A, with the amount of RMB30,000, which is repayable within one year. The interest rate for the outstanding borrowing was 5.6550%. The Group repaid the bank loan in the second quarter of 2020. (3) In February 2019, Leading Ideal HK pledged a deposit with the amount of US$18,000 (RMB114,700) and the same maturity date to secure the repayment of the note. The Company repaid the note with the amount of RMB114,700 in February 2020, and the deposit of US$18,000 (RMB114,700) pledged was released accordingly. (4) Pursuant to the supplemental agreements of the convertible loan in June 2020 (Note 16), the conversion right in relation to convert the outstanding principal of the convertible loan into equity interest of Beijing CHJ was waived. In addition, the maturity date of the convertible loan was extended to June 30, 2022. As a result, the convertible loan was extinguished, and a new loan was recorded as a long-term borrowing as of December 31, 2020. |
Trade and Notes Payable (Tables
Trade and Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and Notes Payable | |
Schedule of trade and notes payable | As of December 31, 2019 2020 Trade payable for raw materials 624,666 2,991,538 Notes payable — 168,977 Total 624,666 3,160,515 |
Accruals and Other Current Li_2
Accruals and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accruals and Other Current Liabilities | |
Schedule of accruals and other current liabilities | As of December 31, 2019 2020 Salaries and benefits payable 129,657 187,972 Payables for purchase of property, plant and equipment 403,761 118,181 Payables for acquisition of Chongqing Zhizao (Note 5) 115,000 79,552 Accrued warranty 1,477 55,138 Tax payable 3,331 50,088 Payables for research and development expenses 94,222 35,032 Advance from customers 30,740 9,285 Deposits from vendors 18,150 9,120 Payables for issuance cost 20,929 — Other payables 49,992 103,091 Total 867,259 647,459 |
Revenue Disaggregation (Tables)
Revenue Disaggregation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Disaggregation | |
Schedule of revenue disaggregation | For the Year Ended December 31, 2018 2019 2020 Vehicle sales — 280,967 9,282,703 Other sales and services — 3,400 173,906 Total — 284,367 9,456,609 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Revenue | |
Schedule of carried-forward deferred revenue | For the Year Ended December 31, 2018 2019 2020 Deferred revenue—at beginning of the year — — 62,638 Additions — 338,702 9,687,382 Recognition — (276,064) (9,342,852) Deferred revenue—at end of the year — 62,638 407,168 Including: Deferred revenue, current — 56,695 271,510 Deferred revenue, non‑current — 5,943 135,658 |
Research and Development Expe_2
Research and Development Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Research and Development Expenses | |
Schedule of research and development expenses | For the Year Ended December 31, 2018 2019 2020 Employee compensation 311,214 461,922 580,157 Design and development expenses 423,721 603,332 406,216 Depreciation and amortization expenses 19,461 39,648 44,977 Rental and related expenses 11,761 14,269 18,818 Travel expenses 12,827 21,815 9,360 Others 14,733 28,154 40,329 Total 793,717 1,169,140 1,099,857 |
Selling, General and Administ_2
Selling, General and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Selling, General and Administrative Expenses | |
Schedule of selling, general and administrative expenses | For the Year Ended December 31, 2018 2019 2020 Employee compensation 171,948 238,368 449,109 Marketing and promotional expenses 35,134 176,383 264,814 Rental and related expenses 13,732 78,897 162,907 Depreciation and amortization expenses 41,035 57,650 37,923 Impairment of property, plant and equipment — 18,066 30,381 Travel expenses 13,803 20,171 20,806 Others 61,548 99,844 152,879 Total 337,200 689,379 1,118,819 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations | |
Schedule of assets, liabilities, results of operations and cash flows of the discontinued operations | As of December 31, Disposal 2019 Date Cash and cash equivalents 147 295 Trade receivable 191 608 Amount due from related parties 832 832 Inventories 7,385 5,594 Prepayments and other current assets 9,044 9,066 Assets held for sale, current 17,599 16,395 Property, plant and equipment, net 29,539 29,010 Operating lease right‑of‑use assets, net 186 — Other non‑current assets 528 528 Assets held for sale, non‑current 30,253 29,538 Total assets held for sale 47,852 45,933 Trade and notes payable 423 542 Operating lease liabilities, current 47 — Accruals and other current liabilities 2,392 2,754 Total liabilities held for sale 2,862 3,296 For the Year Ended December 31, 2018 2019 2020 Revenues 8,376 9,654 870 Cost of sales (12,264) (18,981) (2,437) Gross loss (3,888) (9,327) (1,567) Operating expenses (70,401) (11,359) (1,423) Impairment of long‑lived assets (292,795) — — Loss from operations of discontinued operations (367,084) (20,686) (2,990) Others, net 62 24 — Loss from discontinued operations before income tax expense (367,022) (20,662) (2,990) Income tax expense — — — Net loss from discontinued operations, net of tax (367,022) (20,662) (2,990) For the Year Ended December 31, 2018 2019 2020 Net cash (used in)/provided by discontinued operating activities (65,925) (11,395) 148 Net cash (used in)/provided by discontinued investing activities (83,963) (10,565) 59,705 For the Year Ended December 31, 2020 Cash consideration received for sale of SEV battery packs business 60,000 Carrying value of net assets transferred (42,637) Gain on disposal of discontinued operations 17,363 |
Convertible Redeemable Prefer_2
Convertible Redeemable Preferred Shares and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Convertible Redeemable Preferred Shares and Warrants | |
Schedule of the issuances of convertible redeemable preferred shares | Series Issuance Date Shares Issued Issue Price per Share Proceeds from Issuance RMB RMB Pre-A (1) July 21, 2017 50,000,000 RMB2.00 100,000 A-1 July 4, 2016 129,409,092 RMB6.03 780,000 A-2 July 21, 2017 126,771,562 RMB7.89 1,000,000 A-3 September 5, 2017 65,498,640 RMB9.47 620,000 B-1 November 28, 2017 115,209,526 RMB13.11 1,510,000 B-2 June 6, 2018 55,804,773 RMB14.16 790,000 B-3 (2) January 7/July 2, 2019 119,950,686 RMB14.16 1,701,283 C (3) July 2/December 2,2019/January 23, 2020 267,198,535 US$2.23/ US$1.89 3,626,924 D July 1, 2020 US$2.64/ US$2.35 (1) Upon the issuance of Series A‑2 Preferred Shares, Series Pre‑A Ordinary Shares were re-designated to Series Pre‑A Preferred Shares (see Note 22). (2) Including 11,873,086 Series B‑3 Preferred Shares converted from the convertible promissory notes issued by the Company in January 2019 (see Note 16). The Series B‑3 Preferred Shareholders and convertible promissory notes holders were granted: a) the right to obtain additional shares to be issued in the next round of new financing for free to keep their shareholding percentage (or as converted shareholding percentage for convertible promissory notes holders) unchanged (the “Series B‑3 Anti‑Dilution Warrant”); and b) the right to acquire additional shares to be issued in next two rounds of financing at a 15% discount of purchase price, up to the subscription amount equal to the investment amount in their Series B‑3 Preferred Shares and convertible promissory notes (the “Series B‑3 Additional Warrant”). (3) Including 78,334,557 shares of Series C Preferred Shares issued upon the exercise of the Series B‑3 Additional Warrant by certain Series B‑3 Shareholders and all convertible promissory notes holders at a cash exercise price of RMB1,022,045, or RMB13.02 per share. The leading investor of Series C Preferred Shareholders was granted the right to acquire additional shares to be issued in next round of financing at a 15% discount of purchase price, up to the subscription amount equal to the investment amount in Series C Preferred Shares (the “Series C Additional Warrant”). All non‑refundable cash considerations for the issuance of Series C Preferred Shares, including 4,109,127 shares registered subsequently on January 3, 2020, were received in full as of December 31, 2019 and accordingly all shares are considered issued and outstanding from accounting perspective. |
Schedule of movement of the warrants and conversion feature derivative liabilities | Warrants Derivative Liabilities Liabilities Total Balance at December 31, 2018 — — — Issuance 174,846 1,066,013 1,240,859 Fair value change 292,305 211,859 504,164 Exercise (45,858) — (45,858) Expire(*) (77,739) — (77,739) Translation to reporting currency 8,196 19,068 27,264 Balance at December 31, 2019 351,750 1,296,940 1,648,690 Issuance — 328,461 328,461 Fair value change (46,812) (225,515) (272,327) Exercise (305,333) (1,400,670) (1,706,003) Translation to reporting currency 395 784 1,179 Balance at December 31, 2020 — — — (*) |
Schedule of convertible redeemable preferred shares activities | Series Pre‑A Series A‑1 Series A‑2 Series A‑3 Series B‑1 Series B‑2 Series B‑3 Series C Series D Total Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount of Shares (RMB) of Shares (RMB) of Shares (RMB) of Shares (RMB) of Shares (RMB) of Shares (RMB) of Shares (RMB) of Shares (RMB) of Shares (RMB) of Shares (RMB) Balances as of January 1, 2018 50,000,000 175,847 129,409,092 847,530 126,771,562 1,027,497 65,498,640 631,803 93,464,682 1,228,448 — — — — — — — — 465,143,976 3,911,125 Proceeds from Series B-1 Preferred Shares — — — — — — — — 21,744,844 285,000 — — — — — — — — 21,744,844 285,000 Issuance of preferred shares — — — — — — — — — — 48,656,111 685,594 — — — — — — 48,656,111 685,594 Accretion on convertible redeemable preferred shares to redemption value — — — 60,128 — 72,319 — 44,655 — 108,113 — 32,105 — — — — — — — 317,320 Balances as of December 31, 2018 50,000,000 175,847 129,409,092 907,658 126,771,562 1,099,816 65,498,640 676,458 115,209,526 1,621,561 48,656,111 717,699 — — — — — — 535,544,931 5,199,039 Proceeds from Series B-2 preferred shares — — — — — — — — — — 7,148,662 101,200 — — — — — — 7,148,662 101,200 Conversion of convertible promissory notes into Series B-3 Preferred Shares — — — — — — — — — — — — 11,873,086 166,549 — — — — 11,873,086 166,549 Issuance of Series B-3 Preferred Shares — — — — — — — — — — — — 108,077,600 1,395,015 — — — — 108,077,600 1,395,015 Issuance of Series C Preferred Shares — — — — — — — — — — — — — — 248,281,987 3,616,801 — — 248,281,987 3,616,801 Deemed dividend to/(contribution from) preferred shareholders upon extinguishment — 281,638 — 284,655 — 115,806 — (15,139) — (310,359) — (130,312) — (8,927) — — — — — 217,362 Bifurcation of conversion feature — (14,549) — (254,121) (212,055) — (92,256) — (105,702) — (47,231) — (108,190) — (231,909) — — — (1,066,013) Accretion on convertible redeemable preferred shares to redemption value — — — 60,249 — 90,077 — 61,299 — 164,540 — 80,891 — 133,798 — 152,246 — — — 743,100 Effect of exchange rate changes on preferred shares — (8,050) — (17,492) — (18,685) — (10,592) — (22,433) — (11,944) — (27,165) — (1,030) — — — (117,391) Balances as of December 31, 2019 50,000,000 434,886 129,409,092 980,949 126,771,562 1,074,959 65,498,640 619,770 115,209,526 1,347,607 55,804,773 710,303 119,950,686 1,551,080 248,281,987 3,536,108 — — 910,926,266 10,255,662 Exercise of Series B-3 Anti-Dilution Warrant — — — — — — — — — — — — — — 18,916,548 305,333 — — 18,916,548 305,333 Bifurcation of conversion feature — — — — — — — — — — — — — — — (81,082) — — — (81,082) Issuance of preferred shares-Series D — — — — — — — — — — — — — — — — 231,758,541 3,603,655 231,758,541 3,603,655 Accretion on convertible redeemable preferred shares to redemption value — — — 34,229 — — 46,738 — 136,567 — — 80,635 — 178,007 — 46,792 — 651,190 Effect of exchange rate changes on preferred shares — (858) — (1,746) — (1,770) — (964) — (1,899) — (1,040) — (2,613) — 28 — — — (10,862) Conversion of preferred shares to ordinary shares (50,000,000) (434,028) (129,409,092) (1,013,432) (126,771,562) (1,136,552) (65,498,640) (665,544) (115,209,526) (1,482,275) (55,804,773) (774,122) (119,950,686) (1,629,102) (267,198,535) (3,938,394) (231,758,541) (3,650,447) (1,161,601,355) (14,723,896) Balances as of December 31, 2020 — — — — — — — — — — — — — — — — — — — — |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loss Per Share | |
Schedule of basic and diluted loss per share | For the Year Ended December 31, 2018 2019 2020 Numerator: Net loss (1,532,318) (2,438,536) (151,657) Accretion on convertible redeemable preferred shares to redemption value (317,320) (743,100) (651,190) Deemed dividend to preferred shareholders upon extinguishment, net — (217,362) — Effect of exchange rate changes on convertible redeemable preferred shares — 117,391 10,862 Net loss attributable to ordinary shareholders of Li Auto Inc. (1,849,638) (3,281,607) (791,985) Including: Net loss from continuing operations attributable to ordinary shareholders of Li Auto Inc. (1,482,616) (3,260,945) (806,358) Net (loss)/income from discontinued operations attributable to ordinary shareholders of Li Auto Inc. (367,022) (20,662) 14,373 Denominator: Weighted average ordinary shares outstanding—basic and diluted 255,000,000 255,000,000 870,003,278 Basic and diluted net loss per share from continuing operations attributable to ordinary shareholders of Li Auto Inc. (5.81) (12.79) (0.93) Basic and diluted net (loss)/income per share from discontinued operations attributable to ordinary shareholders of Li Auto Inc. (1.44) (0.08) 0.02 Basic and diluted net loss per share attributable to ordinary shareholders of Li Auto Inc. (7.25) (12.87) (0.91) |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share based Compensation | |
Schedule of compensation expenses recognized for share-based awards | For the Year Ended December 31, 2018 2019 2020 Cost of sales — — 1,515 Research and development expenses — — 60,789 Selling, general and administrative expenses — — 80,491 Total — — 142,795 |
Schedule of stock option activities | Weighted Number of Weighted Average Aggregate Options Average Remaining Intrinsic Outstanding Exercise Price Contractual Life Value US$ In Years US$ Outstanding as of December 31, 2017 45,390,000 0.10 8.33 30,411 Granted 6,250,000 0.10 Forfeited — — Outstanding as of December 31, 2018 51,640,000 0.10 7.57 41,312 Granted 3,430,000 0.10 Forfeited (310,000) 0.10 Outstanding as of December 31, 2019 54,760,000 0.10 6.73 73,926 Granted 0.10 Forfeited (2,070,000) 0.10 Outstanding as of December 31, 2020 0.10 |
Schedule of options fair value assumptions | For the Year Ended December 31, 2018 2019 2020 Exercise price (US$) 0.10 0.10 0.10 Fair value of the ordinary shares on the date of option grant (US$) 0.77 - 0.89 0.90 - 1.45 1.35 - 1.90 Risk‑free interest rate 3.69% - 3.92% 1.98% - 3.17% 0.69% - 1.92% Expected term (in years) 10.00 10.00 10.00 Expected dividend yield Expected volatility 50% - 51% 47% - 48% 45% - 46% |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Taxation | |
Schedule of composition of income tax benefit | For the Year Ended December 31, 2018 2019 2020 Deferred income tax benefit — — (22,847) |
Schedule of reconciliations of the income tax expenses | For the Year Ended December 31, 2018 2019 2020 Loss before income tax expense (1,165,296) (2,417,874) (188,877) Income tax credit computed at PRC statutory income tax rate of 25% (291,324) (604,468) (47,219) Tax effect of tax‑exempt entity and preferential tax rate 97,549 230,669 30,140 Tax effect of Super Deduction and others (139,331) (121,177) (144,503) Non‑deductible expenses 109 27,031 21,511 Change in valuation allowance 332,997 467,945 117,224 Income tax benefit — — (22,847) |
Schedule of components of the group's deferred tax assets (liabilities) | For the Year Ended December 31, 2018 2019 2020 Deferred tax assets Net operating loss carryforwards 321,077 717,495 1,144,397 Accrued expenses and others 7,385 12,545 66,773 Depreciation and amortization 5,549 26,946 16,220 Impairment of long‑lived assets 68,754 73,271 7,694 Unrealized financing cost 11,401 27,520 13,125 Unrealized investment loss 5,330 29,664 — Total deferred tax assets 419,496 887,441 1,248,209 Less: Valuation allowance (419,496) (887,441) (1,004,665) Deferred tax assets, net of valuation allowance — — 243,544 Deferred tax liabilities Accelerated tax depreciation and others — — (215,030) Fair value change of certain investments — — (5,667) Total deferred tax liabilities — — (220,697) Deferred tax assets, net of valuation allowance and deferred tax liabilities — — 22,847 |
Schedule of movement of valuation allowance | For the Year Ended December 31, 2018 2019 2020 Valuation allowance Balance at beginning of the year 86,499 419,496 887,441 Additions 332,997 467,945 148,458 Reversal — — (31,234) Balance at ending of the year 419,496 887,441 1,004,665 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurement | |
Schedule of major financial instruments measured at fair value, by level within the fair value hierarchy | Fair Value Measurement at Reporting Date Using Quoted Prices Fair Value in Active Significant as of Markets for Significant Other Unobservable December 31, Identical Assets Observable Inputs Inputs 2019 (Level 1) (Level 2) (Level 3) Assets Short-term investments 1,814,108 — 1,814,108 — Equity securities with readily determinable fair value 90,724 90,724 — — Total assets 1,904,832 90,724 1,814,108 — Liabilities Warrant liabilities 351,750 — — 351,750 Derivative liabilities 1,296,940 — — 1,296,940 Total liabilities 1,648,690 — — 1,648,690 Fair Value Measurement at Reporting Date Using Quoted Prices Fair Value in Active Significant as of Markets for Significant Other Unobservable December 31, Identical Assets Observable Inputs Inputs 2020 (Level 1) (Level 2) (Level 3) Assets Short-term investments 18,850,462 — 18,850,462 — Equity securities with readily determinable fair value 64,916 64,916 — — Total assets 18,915,378 64,916 18,850,462 — |
Schedule of significant factors, assumptions and methodologies used in determining the fair value | Date Discount Rate January 7, 2019 March 31, 2019 June 30, 2019 July 2, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 |
Schedule of roll-forward of the beginning and ending balance of the Level 3 warrants and derivative liabilities | Total Fair value of Level 3 warrants and derivative liabilities as of December 31, 2018 — Issuance 1,240,859 Unrealized fair value change loss 504,164 Exercise (45,858) Expire (77,739) Translation to reporting currency 27,264 Fair value of Level 3 warrants and derivative liabilities as of December 31, 2019 1,648,690 Issuance 328,461 Unrealized fair value change gain (272,327) Exercise (1,706,003) Translation to reporting currency 1,179 Fair value of Level 3 warrants and derivative liabilities as of December 31, 2020 — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies. | |
Schedule of capital commitments | Less than Total One Year 1‑3 Years 3‑5 Years Over 5 Years Capital commitments 259,234 233,002 26,232 — — |
Schedule of purchase obligations | Less than Total One Year 1‑3 Years 3‑5 Years Over 5 Years Purchase obligations 2,547,799 2,547,799 — — — |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Balances and Transactions | |
Schedule of Related Party Balances and Transactions | Name of Entity or Individual Relationship with the Company Beijing Yihang Intelligent Technology Co., Ltd. (“Beijing Yihang”) Affiliate Neolix Technologies Co., Ltd. (“Neolix Technologies”) Affiliate Airx (Beijing) Technology Co., Ltd. (“Airx”) Affiliate The Group entered into the following significant related party transactions: For the Year Ended December 31, 2018 2019 2020 Purchase materials from Beijing Yihang 31 6,914 Purchase R&D service from Beijing Yihang 2,412 25,106 Purchase equipment and installation service from Airx 3,233 1,994 — Sales of battery packs and materials to Neolix Technologies 3,359 1,943 — The Group had the following significant related party balances: As of December 31, 2019 2020 Due from Neolix Technologies 1,510 678 As of December 31, 2019 2020 Due to Beijing Yihang 9,243 19,183 Due to Airx 521 23 Total 9,764 19,206 |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Parent Company Only Condensed Financial Information | |
Condensed balance sheets of parent company | As of December 31, 2019 2020 2020 RMB RMB US$ Note 2(e) ASSETS Current assets: Cash and cash equivalents 641,007 1,149,374 176,149 Time deposits and short‑term investments 493,522 14,486,070 2,220,087 Amounts due from subsidiaries of the Group 4,917,305 14,065,341 2,155,609 Prepayments and other current assets 15,205 — — Total current assets 6,067,039 29,700,785 4,551,845 Non‑current assets: Investments in subsidiaries, VIEs and VIEs’ subsidiaries 81,077 42,754 6,553 Long‑term investments 90,724 64,916 9,949 Total non‑current assets 171,801 107,670 16,502 Total assets 6,238,840 29,808,455 4,568,347 LIABILITIES Current liabilities: Accruals and other current liabilities 9,019 4,858 744 Warrants and derivative liabilities 1,648,690 — — Total current liabilities 1,657,709 4,858 744 Total liabilities 1,657,709 4,858 744 As of December 31, 2019 2020 2020 RMB RMB US$ Note 2(e) MEZZANINE EQUITY Series Pre‑A convertible redeemable preferred shares 434,886 — — Series A‑1 convertible redeemable preferred shares 980,949 — — Series A‑2 convertible redeemable preferred shares 1,074,959 — — Series A‑3 convertible redeemable preferred shares 619,770 — — Series B‑1 convertible redeemable preferred shares 1,347,607 — — Series B‑2 convertible redeemable preferred shares 710,303 — — Series B‑3 convertible redeemable preferred shares 1,551,080 — — Series C convertible redeemable preferred shares 3,536,108 — — Total mezzanine equity 10,255,662 — — SHAREHOLDERS' (DEFICIT)/EQUITY Class A Ordinary shares 10 1,010 145 Class B Ordinary shares 155 235 36 Additional paid in capital — 37,289,761 5,714,907 Accumulated other comprehensive income/(loss) 15,544 (1,005,184) (154,041) Accumulated deficit (5,690,240) (6,482,225) (993,444) Total shareholders' (deficit)/equity (5,674,531) 29,803,597 4,567,603 Total liabilities, mezzanine equity and shareholders' (deficit)/equity 6,238,840 29,808,455 4,568,347 |
Condensed statements of comprehensive loss of parent company | For the Year Ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Note 2(e) Operating expenses: Selling, general and administrative (14,643) (5,114) (9,424) (1,444) Total operating expenses (14,643) (5,114) (9,424) (1,444) Loss from operations (14,643) (5,114) (9,424) (1,444) Other income/(expense) Interest expense — (9,332) — — Interest income 598 20,505 4,467 685 Equity in loss of subsidiaries, VIEs and VIEs' subsidiaries (1,487,183) (2,031,371) (520,093) (79,708) Change in fair value of warrants and derivative liabilities — (426,425) 272,327 41,736 Investment (loss)/income, net (28,780) 14,880 106,823 16,371 Foreign exchange loss (2,310) (1,084) (5,861) (898) Others, net — (595) 104 15 Loss before income tax expense (1,532,318) (2,438,536) (151,657) (23,243) Income tax expense — — — — Net loss (1,532,318) (2,438,536) (151,657) (23,243) Accretion on convertible redeemable preferred shares to redemption value (317,320) (743,100) (651,190) (99,799) Deemed dividend to preferred shareholders upon extinguishment, net (Note 23) — (217,362) — — Effect of exchange rate changes on convertible redeemable preferred shares — 117,391 10,862 1,665 Net loss attributable to ordinary shareholders of Li Auto Inc. (1,849,638) (3,281,607) (791,985) (121,377) Net loss (1,532,318) (2,438,536) (151,657) (23,243) Other comprehensive income/(loss), net of tax Foreign currency translation adjustment, net of tax 12,954 2,851 (1,020,728) (156,423) Total comprehensive loss, net of tax (1,519,364) (2,435,685) (1,172,385) (179,666) |
Condensed statements of cash flows of parent company | For the Year Ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Note 2(e) CASH FLOWS FROM OPERATING ACTIVITIES Net cash provided by operating activities 224,318 26,492 109,961 16,852 CASH FLOWS FROM INVESTING ACTIVITIES Payments to, and investments in subsidiaries, VIEs and VIEs’ subsidiaries (1,099,424) (4,384,396) (10,006,889) (1,533,623) Purchase of long‑term investments (100,303) — — — Placement of time deposit — (1,725,148) — — Withdraw of time deposit — 1,265,877 463,527 71,039 Placement of short‑term investments — (35,157) (75,367,086) (11,550,511) Withdraw of short-term investments — — 60,452,428 9,264,740 Net cash used in investing activities (1,199,727) (4,878,824) (24,458,020) (3,748,355) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs 958,658 5,254,333 3,851,034 590,197 Proceeds from issuance of convertible promissory notes — 168,070 — — Proceeds from IPO and concurrent private placements, net of issuance cost — — 11,034,685 1,691,139 Proceeds from follow-on offering, net of issuance costs — — 9,990,955 1,531,181 Net cash provided by financing activities 958,658 5,422,403 24,876,674 3,812,517 Effects of exchange rate changes on cash and cash equivalents 4,716 25,595 (20,248) (3,104) Net (decrease)/increase in cash, cash equivalents (12,035) 595,666 508,367 77,910 Cash, cash equivalents at beginning of the year 57,376 45,341 641,007 98,239 Cash, cash equivalents at end of the year 45,341 641,007 1,149,374 176,149 |
Organization and Nature of Op_3
Organization and Nature of Operations - Reorganization (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Leading Ideal HK | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Entity interest held in subsidiaries (as percent) | 100.00% |
Wheels Technology | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Entity interest held in subsidiaries (as percent) | 100.00% |
Xiamen Leading | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Entity interest held in subsidiaries (as percent) | 100.00% |
Beijing Leading | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Entity interest held in subsidiaries (as percent) | 100.00% |
Beijing CHJ | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Economic interest held in VIEs and VIEs' subsidiaries (as percent) | 100.00% |
Xindian Information | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Economic interest held in VIEs and VIEs' subsidiaries (as percent) | 100.00% |
Jiangsu CHJ | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Economic interest held in VIEs and VIEs' subsidiaries (as percent) | 100.00% |
Beijing XDIT | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Economic interest held in VIEs and VIEs' subsidiaries (as percent) | 100.00% |
Jiangsu XD | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Economic interest held in VIEs and VIEs' subsidiaries (as percent) | 100.00% |
Organization and Nature of Op_4
Organization and Nature of Operations - Variable interest entity (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Variable interest entity | |
Percent of equity interests in a value added telecommunication service provider | 50.00% |
Beijing CHJ | |
Variable interest entity | |
Power of attorney period (in years) | 10 years |
Beijing CHJ | Spouses of shareholders | |
Variable interest entity | |
Number of shareholders' spousal consent letters | 9 |
Ownership percent | 100.00% |
Xindian Information | Spouses of shareholders | |
Variable interest entity | |
Number of shareholders' spousal consent letters | 9 |
Ownership percent | 98.10% |
Wheels Technology | |
Variable interest entity | |
Power of attorney period (in years) | 10 years |
Wheels Technology | Beijing CHJ | Exclusive Consultation and Service Agreements | |
Variable interest entity | |
Annual service fee | 100.00% |
Service fee payment period (in days) | 10 days |
Service fee payment period with which after end of relevant calendar quarter (in days) | 30 days |
Contract term (in years) | 10 years |
Wheels Technology | Beijing CHJ | Equity Option Agreements | |
Variable interest entity | |
Contract term (in years) | 10 years |
Wheels Technology | Beijing CHJ | Equity Pledge Agreements | |
Variable interest entity | |
Equity interests agreed to pledge (as a percent) | 100.00% |
Organization and Nature of Op_5
Organization and Nature of Operations - Balance sheet (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets: | |||||
Cash and cash equivalents | $ 1,369,861 | ¥ 8,938,341 | ¥ 1,296,215 | ||
Restricted cash | 189,146 | 1,234,178 | 140,027 | ||
Trade receivable | 17,709 | 115,549 | 8,303 | ||
Inventories | 160,614 | 1,048,004 | 518,086 | ||
Prepayments and other current assets | 54,200 | 353,655 | 812,956 | ||
Assets held for sale, current | 17,599 | ||||
Non-current assets: | |||||
Long-term investments | 24,958 | 162,853 | 126,181 | ¥ 177,141 | ¥ 22,514 |
Property, plant and equipment, net | 379,875 | 2,478,687 | 2,795,122 | ||
Operating lease right-of-use assets, net | 195,710 | 1,277,006 | 510,227 | ||
Intangible assets, net | 104,717 | 683,281 | 673,867 | ||
Other non-current assets | 49,224 | 321,184 | 311,933 | ||
Assets held for sale, non-current | 30,253 | ||||
Total assets | 5,574,449 | 36,373,276 | 9,513,422 | ||
Current liabilities: | |||||
Short-term borrowings | 238,957 | ||||
Trade and notes payable | 484,370 | 3,160,515 | 624,666 | ||
Amounts due to related parties | 2,943 | 19,206 | 9,764 | ||
Operating lease liabilities, current | 32,265 | 210,531 | 177,526 | ||
Finance lease liabilities, current | 360,781 | ||||
Deferred revenue, current | 41,611 | 271,510 | 56,695 | ||
Accruals and other current liabilities | 99,227 | 647,459 | 867,259 | ||
Convertible debts, current | 692,520 | ||||
Liabilities held for sale, current | 2,862 | ||||
Non-current liabilities: | |||||
Long-term borrowings | 78,412 | 511,638 | |||
Deferred revenue, non-current | 20,790 | 135,658 | 5,943 | ||
Operating lease liabilities, non-current | 157,127 | 1,025,253 | 241,109 | ||
Finance lease liabilities, non-current | 56,227 | 366,883 | |||
Deferred tax liabilities | 5,565 | 36,309 | |||
Other non-current liabilities | 28,309 | 184,717 | 5,519 | ||
Total liabilities | $ 1,006,846 | 6,569,679 | 4,932,291 | ||
VIEs and VIEs' subsidiaries | |||||
Current assets: | |||||
Cash and cash equivalents | 1,546,193 | 240,933 | |||
Restricted cash | 1,234,178 | 14,455 | |||
Short-term investments | 2,581,690 | 1,278,153 | |||
Trade receivable | 103,271 | 8,303 | |||
Intragroup receivables | 7,704,630 | 1,927,560 | |||
Inventories | 271,379 | 389,031 | |||
Prepayments and other current assets | 254,061 | 556,112 | |||
Assets held for sale, current | 17,599 | ||||
Non-current assets: | |||||
Long-term investments | 707,685 | 600,615 | |||
Property, plant and equipment, net | 2,335,824 | 1,755,686 | |||
Operating lease right-of-use assets, net | 1,182,134 | 508,871 | |||
Intangible assets, net | 682,083 | 673,517 | |||
Other non-current assets | 218,531 | 130,749 | |||
Assets held for sale, non-current | 30,253 | ||||
Total assets | 18,821,659 | 8,131,837 | |||
Current liabilities: | |||||
Short-term borrowings | 238,957 | ||||
Trade and notes payable | 3,107,646 | 616,340 | |||
Intra group payable | 12,203,705 | 3,732,883 | |||
Amounts due to related parties | 19,206 | 5,469 | |||
Operating lease liabilities, current | 170,033 | 176,669 | |||
Finance lease liabilities, current | 360,781 | ||||
Deferred revenue, current | 230,720 | 56,695 | |||
Accruals and other current liabilities | 453,731 | 660,010 | |||
Convertible debts, current | 692,520 | ||||
Liabilities held for sale, current | 2,862 | ||||
Non-current liabilities: | |||||
Long-term borrowings | 511,638 | ||||
Deferred revenue, non-current | 102,898 | 5,943 | |||
Operating lease liabilities, non-current | 973,455 | 241,109 | |||
Finance lease liabilities, non-current | 366,883 | ||||
Deferred tax liabilities | 36,309 | ||||
Other non-current liabilities | 157,907 | 5,519 | |||
Total liabilities | ¥ 18,334,131 | ¥ 6,795,757 |
Organization and Nature of Op_6
Organization and Nature of Operations - Net (loss)/income (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Variable interest entity | ||||
Net loss from continuing operations | $ (25,446) | ¥ (166,030) | ¥ (2,417,874) | ¥ (1,165,296) |
Net (loss)/income from discontinued operations | $ 2,203 | 14,373 | (20,662) | (367,022) |
VIEs and VIEs' subsidiaries | ||||
Variable interest entity | ||||
Net loss from continuing operations | (495,209) | (1,234,283) | (1,076,613) | |
Net (loss)/income from discontinued operations | ¥ 14,373 | ¥ (20,662) | ¥ (367,022) |
Organization and Nature of Op_7
Organization and Nature of Operations - Cash, cash equivalents and restricted cash (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Variable interest entity | ||||
Net cash (used in)/provided by operating activities | $ 481,196 | ¥ 3,139,804 | ¥ (1,793,710) | ¥ (1,346,805) |
Net cash used in investing activities | (2,871,683) | (18,737,725) | (2,574,836) | (191,512) |
Net cash provided by financing activities | 3,787,080 | 24,710,697 | 5,655,690 | 1,108,658 |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (57,722) | (376,646) | 53,722 | 3,299 |
Net (decrease)/increase in cash, cash equivalents and restricted cash | 1,338,871 | 8,736,130 | 1,340,866 | (426,360) |
Cash, cash equivalents and restricted cash at beginning of the year | 220,136 | 1,436,389 | 95,523 | 521,883 |
Cash, cash equivalents and restricted cash at end of the year | 1,559,007 | 10,172,519 | 1,436,389 | 95,523 |
Less: Cash, cash equivalents and restricted cash of discontinued operations at end of the year | 147 | 331 | ||
Cash, cash equivalents and restricted cash of continuing operations at end of the year | $ 1,559,007 | 10,172,519 | 1,436,242 | 95,192 |
VIEs and VIEs' subsidiaries | ||||
Variable interest entity | ||||
Net cash (used in)/provided by operating activities | 3,540,411 | (1,607,435) | (1,223,050) | |
Net cash used in investing activities | (1,665,982) | (1,976,964) | (214,027) | |
Net cash provided by financing activities | 650,595 | 3,782,378 | 1,019,824 | |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (188) | 19,746 | (1,320) | |
Net (decrease)/increase in cash, cash equivalents and restricted cash | 2,524,836 | 217,725 | (418,573) | |
Cash, cash equivalents and restricted cash at beginning of the year | 255,535 | 37,810 | 456,383 | |
Cash, cash equivalents and restricted cash at end of the year | 2,780,371 | 255,535 | 37,810 | |
Less: Cash, cash equivalents and restricted cash of discontinued operations at end of the year | 147 | 331 | ||
Cash, cash equivalents and restricted cash of continuing operations at end of the year | ¥ 2,780,371 | ¥ 255,388 | ¥ 37,479 |
Organization and Nature of Op_8
Organization and Nature of Operations - Additional information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Variable interest entity | |||||
Total shareholders' deficit | $ 4,567,603 | ¥ 29,803,597 | ¥ (5,674,531) | ¥ (2,395,775) | ¥ (559,091) |
VIEs and VIEs' subsidiaries | |||||
Variable interest entity | |||||
Registered capitals and PRC statutory reserves | 7,930,831 | 6,429,134 | |||
Total shareholders' deficit | ¥ (3,772,758) | ¥ (3,296,997) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($)$ / ¥ | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020CNY (¥)$ / ¥ | |
Summary of Significant Accounting Policies | |||||
Total foreign currency translation adjustment income/(loss) | $ (156,423) | ¥ (1,020,728) | ¥ 2,851 | ¥ 12,954 | |
Foreign currency exchange rate, translation | $ / ¥ | 6.5250 | 6.5250 | |||
Cash held in online payments platform | 5,243 | ¥ 17,844 | |||
Cash and cash equivalents | $ 1,369,861 | 1,296,215 | 8,938,341 | ||
Restricted cash | 189,146 | 140,027 | 1,234,178 | ||
Total cash, cash equivalents and restricted cash of continuing operations | $ 1,559,007 | 1,436,242 | 95,192 | ¥ 10,172,519 | |
Allowance for doubtful accounts | 0 | 0 | 0 | ||
Inventory write downs | ¥ 0 | ¥ 0 | ¥ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, plant and equipment, net (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 20 years |
Vehicle sales | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 4 years |
Minimum | Buildings improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 5 years |
Minimum | Production facilities | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 5 years |
Minimum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 3 years |
Maximum | Buildings improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 10 years |
Maximum | Production facilities | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 10 years |
Maximum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Intangible assets, net, Impairment of long lived assets and intangible assets with indefinite lives and Employee benefits (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of longlived assets | ¥ 30,381 | ¥ 18,066 | ¥ 0 |
Impairment of indefinite lived intangible assets | 0 | 0 | 0 |
Employee benefits | |||
Employee benefit expenses | ¥ 133,162 | ¥ 168,019 | ¥ 110,800 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful lives | 5 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful lives | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Product warranties (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies | ||
Accrued warranty at beginning of the year | ¥ 6,996 | |
Warranty cost incurred | (8,258) | ¥ (163) |
Provision for warranty | 234,628 | 7,159 |
Accrued warranty at end of the year | ¥ 233,366 | ¥ 6,996 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Product warranties, current and non-current (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of Significant Accounting Policies | ||
Accrued warranty | ¥ 233,366 | ¥ 6,996 |
Including: Accrued warranty, current | 55,138 | 1,477 |
Accrued warranty, non-current | ¥ 178,228 | ¥ 5,519 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Leases and Segment reporting (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)segment | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2017CNY (¥) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets, net | $ 195,710 | ¥ 1,277,006 | ¥ 510,227 | |
Operating lease liabilities, current | 32,265 | 210,531 | 177,526 | |
Operating lease liabilities, non-current | $ 157,127 | ¥ 1,025,253 | ¥ 241,109 | |
Number of reportable segments | segment | 1 | |||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Terms of operating and finance leases (in years) | 1 year | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Terms of operating and finance leases (in years) | 20 years | |||
Land use rights | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease term (in years) | 50 years | 50 years | ||
ASU 2016-02 | Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets, net | ¥ 158,770 | |||
Operating lease liabilities, current | 14,575 | |||
Operating lease liabilities, non-current | ¥ 142,751 |
Concentration and Risks (Detail
Concentration and Risks (Details) - CNY (¥) ¥ in Thousands | Jul. 21, 2005 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Concentration and Risks | |||||
Cash and cash equivalents, restricted cash and time deposits and short term investments subject to such government controls. | ¥ 5,384,769 | ¥ 1,646,275 | |||
Percentage of minimum appreciation of domestic currency against foreign currency | 15.00% | ||||
Minimum term of appreciation of domestic currency against foreign currency | 3 years | ||||
Percentage of appreciation of domestic currency (RMB) against foreign currency(US$) | 6.50% | 5.80% | |||
Percentage of depreciation of peoples domestic currency (RMB) against foreign currency(US$) | 1.60% | 5.00% |
Acquisition of Chongqing Zhiz_3
Acquisition of Chongqing Zhizao (Details) ¥ in Thousands | Dec. 29, 2018CNY (¥) | Dec. 28, 2018subsidiary | Aug. 31, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2019CNY (¥) |
Chongqing Zhizao | |||||
Business acquisition | |||||
Equity interest (as a percent) | 100.00% | ||||
Total consideration | ¥ 650,000 | ||||
Total consideration in cash paid | ¥ 35,448 | ¥ 79,552 | ¥ 535,000 | ||
Lifan Industry | |||||
Business acquisition | |||||
Number of wholly owned subsidiaries with whom acquisition agreement is entered into | subsidiary | 2 |
Acquisition of Chongqing Zhiz_4
Acquisition of Chongqing Zhizao - Disposal agreement (Details) - Chongqing Zhizao - Disposal by sale - CNY (¥) | Dec. 26, 2019 | Dec. 19, 2019 |
Discontinued Operations | ||
Equity interest disposed | 100.00% | 100.00% |
Cash consideration received for sale of SEV battery packs business | ¥ 1 | |
Disposal loss | ¥ 4,503,000 |
Acquisition of Chongqing Zhiz_5
Acquisition of Chongqing Zhizao - Acquisition (Details) ¥ in Thousands, $ in Thousands | Dec. 26, 2019CNY (¥) | Feb. 07, 2019CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 29, 2018CNY (¥) |
Balance of the assets acquired and liabilities assumed, as of the date of acquisition | |||||||
Repayments of short term debt | $ 22,176 | ¥ 144,700 | |||||
Impairment for the Automotive Manufacturing Permission | 0 | ¥ 0 | ¥ 0 | ||||
Chongqing Zhizao | |||||||
Balance of the assets acquired and liabilities assumed, as of the date of acquisition | |||||||
Cash and cash equivalents and restricted cash | ¥ 25,004 | ||||||
Short-term borrowing | (20,000) | ||||||
Working capital | (382,350) | ||||||
Finance lease liabilities, current | (66,111) | ||||||
Finance lease liabilities, noncurrent | (19,547) | ||||||
Indemnification Receivables | 465,830 | ||||||
Net assets acquired/disposed | 2,826 | ||||||
Automotive Manufacturing Permission | 647,174 | ||||||
Total | ¥ 650,000 | ||||||
Repayments of short term debt | ¥ 1,885 | ¥ 20,000 | |||||
Impairment for the Automotive Manufacturing Permission | ¥ 0 | ¥ 0 |
Acquisition of Chongqing Zhiz_6
Acquisition of Chongqing Zhizao - Disposal (Details) - Chongqing Zhizao - Disposal by sale ¥ in Thousands | Dec. 26, 2019CNY (¥) |
Balance of the assets acquired and liabilities assumed, disposed as of the date of disposal | |
Cash and cash equivalents and restricted cash | ¥ 119 |
Short-term borrowing | (18,115) |
Working capital | (177,231) |
Finance lease liabilities, current | (76,654) |
Indemnification Receivables | 276,384 |
Net assets disposed | ¥ 4,503 |
Inventories (Details)
Inventories (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Inventories | |||
Finished products | ¥ 820,168 | ¥ 144,543 | |
Raw materials, work in process and supplies | 227,836 | 373,543 | |
Total | $ 160,614 | ¥ 1,048,004 | ¥ 518,086 |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Prepayments and Other Current Assets | |||
Deductible VAT input | ¥ 196,021 | ¥ 495,150 | |
Prepayments to vendors | 104,271 | 217,883 | |
Prepaid rental and deposits | 30,357 | 67,969 | |
Loan receivable from Lifan Holdings | 8,000 | 8,000 | |
Others | 15,006 | 23,954 | |
Total | $ 54,200 | ¥ 353,655 | ¥ 812,956 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | |
Property, plant and equipment | |||||
Total property, plant and equipment, gross | ¥ 3,008,573 | ¥ 3,007,759 | |||
Less: Accumulated depreciation | (195,385) | (498,691) | |||
Less: Accumulated impairment loss | (18,066) | (30,381) | |||
Total property, plant and equipment, net | 2,795,122 | $ 379,875 | 2,478,687 | ||
Depreciation expenses | ¥ 312,011 | 107,173 | ¥ 55,897 | ||
Impairment recognized for property, plant and equipment | ¥ 30,381 | 18,066 | ¥ 0 | ||
Mold and tooling | |||||
Property, plant and equipment | |||||
Total property, plant and equipment, gross | 950,140 | 987,316 | |||
Production facilities | |||||
Property, plant and equipment | |||||
Total property, plant and equipment, gross | 904,239 | 787,970 | |||
Buildings | |||||
Property, plant and equipment | |||||
Total property, plant and equipment, gross | 431,075 | 404,772 | |||
Buildings improvements | |||||
Property, plant and equipment | |||||
Total property, plant and equipment, gross | 307,174 | 311,947 | |||
Leasehold improvements | |||||
Property, plant and equipment | |||||
Total property, plant and equipment, gross | 139,118 | 249,879 | |||
Equipment | |||||
Property, plant and equipment | |||||
Total property, plant and equipment, gross | 138,102 | 175,887 | |||
Construction in process | |||||
Property, plant and equipment | |||||
Total property, plant and equipment, gross | 110,341 | 53,579 | |||
Vehicle sales | |||||
Property, plant and equipment | |||||
Total property, plant and equipment, gross | ¥ 28,384 | ¥ 36,409 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Indefinitelived intangible assets, net | ¥ 647,174 | ¥ 647,174 | |||
Definite-lived intangible assets | 40,392 | 58,791 | |||
Less: Accumulated amortization | (13,699) | (22,684) | |||
Definite-lived intangible assets, net | 26,693 | 36,107 | |||
Total intangible assets, net | 673,867 | $ 104,717 | 683,281 | ||
Amortization expenses | ¥ 8,985 | 9,218 | ¥ 4,599 | ||
Software | |||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Definite-lived intangible assets | 39,698 | 58,097 | |||
Patents | |||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Definite-lived intangible assets | 694 | 694 | |||
Automotive Manufacturing Permission | |||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Indefinitelived intangible assets, net | ¥ 647,174 | ¥ 647,174 |
Intangible Assets, Net - Amorti
Intangible Assets, Net - Amortization expenses (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Intangible assets, net | ||
2021 | ¥ 9,008 | |
2022 | 8,415 | |
2023 | 5,983 | |
2024 | 3,203 | |
2025 and thereafter | 9,498 | |
Definite-lived intangible assets, net | ¥ 36,107 | ¥ 26,693 |
Leases - Components of lease ex
Leases - Components of lease expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finance lease cost: | |||
Amortization of assets | ¥ 15,346 | ¥ 15,501 | ¥ 15,501 |
Interest of lease liabilities | 21,851 | 19,943 | 18,841 |
Operating lease cost | 176,788 | 86,365 | 22,811 |
Short-term lease cost | 4,937 | 6,801 | 2,682 |
Total | ¥ 218,922 | ¥ 128,610 | ¥ 59,835 |
Leases - Supplemental cash flow
Leases - Supplemental cash flows information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows payment for operating leases | ¥ 126,418 | ¥ 77,643 | ¥ 121,681 |
Rightofuse assets obtained in exchange for lease liabilities: | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | ¥ 896,804 | ¥ 207,902 | ¥ 114,322 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information - Operating lease (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Leases | |||
Land use rights, net | ¥ 181,505 | ¥ 183,383 | |
Operating lease right-of-use assets, net (excluding land use rights) | 1,095,501 | 326,844 | |
Total operating lease assets | $ 195,710 | 1,277,006 | 510,227 |
Operating lease liabilities, current | 32,265 | 210,531 | 177,526 |
Operating lease liabilities, non-current | $ 157,127 | 1,025,253 | 241,109 |
Total lease liabilities | ¥ 1,235,784 | ¥ 418,635 |
Leases - Supplemental balance_2
Leases - Supplemental balance sheet information - Finance lease (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Leases | |||
Property, plant and equipment, at cost | ¥ 294,269 | ¥ 310,018 | |
Accumulated depreciation | 56,682 | 41,336 | |
Property, plant and equipment, net | 237,587 | 268,682 | |
Finance lease liabilities, current | 360,781 | ||
Finance lease liabilities, non-current | $ 56,227 | 366,883 | |
Total lease liabilities | ¥ 366,883 | ¥ 360,781 |
Leases - Weighted-average remai
Leases - Weighted-average remaining lease term and discount rate (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted-average remaining lease term | ||
Land use rights | 47 years | 48 years |
Operating leases | 11 years | 5 years |
Finance leases | 16 years | 17 years |
Weighted-average discount rate | ||
Land use rights | 6.20% | 5.70% |
Operating leases | 5.80% | 5.70% |
Finance leases | 6.20% | 5.70% |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating leases | ||
2021 | ¥ 213,064 | |
2022 | 274,457 | |
2023 | 145,219 | |
2024 | 104,132 | |
2025 | 88,748 | |
Thereafter | 882,938 | |
Total undiscounted lease payments | 1,708,558 | |
Less: imputed interest | (472,774) | |
Total lease liabilities | 1,235,784 | ¥ 418,635 |
Finance leases | ||
2021 | 21,070 | |
2022 | 392,378 | |
Total undiscounted lease payments | 413,448 | |
Less: imputed interest | (46,565) | |
Total lease liabilities | ¥ 366,883 | ¥ 360,781 |
Leases - Additional information
Leases - Additional information (Details) ¥ in Thousands, $ in Thousands | Jan. 01, 2019CNY (¥) | Aug. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Sep. 11, 2018CNY (¥) | May 01, 2017CNY (¥) |
Lessee Lease | ||||||||||
Operating lease, right of use assets for land | ¥ 510,227 | $ 195,710 | ¥ 1,277,006 | |||||||
Financing lease, right of use assets for plants | 310,018 | ¥ 294,269 | ||||||||
Total rental fully paid upfront | ¥ 126,418 | ¥ 77,643 | ¥ 121,681 | |||||||
Changzhou Production Base-Phase I | ||||||||||
Lessee Lease | ||||||||||
Operating lease, right of use assets for land | ¥ 70,508 | |||||||||
Financing lease, right of use assets for plants | ¥ 310,018 | |||||||||
Changzhou Production Base-Phase II | ||||||||||
Lessee Lease | ||||||||||
Operating lease, right of use assets for land | ¥ 23,080 | |||||||||
Total rental fully paid upfront | ¥ 24,420 | |||||||||
Total amount of construction of Phase II Plants | ¥ 102,251 | |||||||||
Total consideration | ¥ 103,060 | |||||||||
Option to repurchase asset transferred prior to December 31, 2020, amount | ¥ 103,060 |
Other Non-current Assets (Detai
Other Non-current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Other Non-current Assets | |||
Long-term deposits | ¥ 149,235 | ¥ 121,007 | |
Prepayments for purchase of property, plant and equipment | 126,006 | 11,754 | |
Prepayments for purchase of land use rights | 175,582 | ||
Others | 45,943 | 3,590 | |
Total | $ 49,224 | ¥ 321,184 | ¥ 311,933 |
Long term Investments (Details)
Long term Investments (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Long term Investments | |||||
Balance | ¥ 126,181 | ¥ 126,181 | ¥ 177,141 | ¥ 22,514 | |
Additions | 65,000 | 98,000 | 213,303 | ||
Share of loss of equity method investees | $ (386) | (2,520) | (162,725) | (35,826) | |
Fair value change through earnings | (21,975) | 12,550 | (28,780) | ||
Changes of interest in the equity method investees | 5,494 | ||||
Impairment | 0 | (5,000) | 0 | ||
Foreign currency translation | (3,833) | 721 | 5,930 | ||
Balance | $ 24,958 | 162,853 | 126,181 | 177,141 | |
Equity Method Investments | |||||
Long term Investments | |||||
Balance | 7,307 | 7,307 | 66,538 | 4,364 | |
Additions | 98,000 | 98,000 | |||
Share of loss of equity method investees | (2,520) | (162,725) | (35,826) | ||
Changes of interest in the equity method investees | 5,494 | ||||
Balance | 4,787 | 7,307 | 66,538 | ||
Equity Security With Readily Determinable Fair Values | |||||
Long term Investments | |||||
Balance | 90,724 | 90,724 | 77,453 | ||
Changes from investments without readily determinable fair value to readily determinable fair value | 100,303 | ||||
Fair value change through earnings | (21,975) | 12,550 | (28,780) | ||
Foreign currency translation | (3,833) | 721 | 5,930 | ||
Balance | 64,916 | 90,724 | 77,453 | ||
Equity Securities Without Readily Determinable Fair Values | |||||
Long term Investments | |||||
Balance | 28,150 | 28,150 | 33,150 | 18,150 | |
Additions | ¥ 60,000 | 65,000 | 115,303 | ||
Changes from investments without readily determinable fair value to readily determinable fair value | (100,303) | ||||
Impairment | (5,000) | ||||
Balance | ¥ 93,150 | ¥ 28,150 | ¥ 33,150 |
Long-term Investments- Equity M
Long-term Investments- Equity Method Investments (Details) - CNY (¥) ¥ in Thousands | Jan. 30, 2019 | Sep. 11, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Long-term Investments. | |||||
Equity method ownership percent | 49.00% | 49.00% | |||
Cash consideration | ¥ 98,000 | ¥ 98,000 | |||
Impairment of equity method investments | ¥ 0 | ¥ 0 | ¥ 0 |
Long-term Investments - Equity
Long-term Investments - Equity Security with/without Readily Determinable Fair Values (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($)shares | Dec. 31, 2018CNY (¥)shares | Mar. 31, 2020USD ($) | Mar. 31, 2020CNY (¥) | |
Equity Security with Readily Determinable Fair Values | ||||||||
Cost Basis | ¥ 100,303 | ¥ 100,303 | ||||||
Unrealized Loss | (38,205) | (16,230) | ||||||
Foreign Currency Translation | 2,818 | 6,651 | ||||||
Fair Value | 64,916 | 90,724 | ||||||
Total cash consideration for purchase of Series C preferred shares | $ 9,962 | 65,000 | 98,000 | ¥ 213,303 | ||||
Equity Securities without Readily Determinable Fair Values | ||||||||
Investment in affiliate | 65,000 | ¥ 98,000 | 213,303 | |||||
Equity interests in affiliate (as a percent) | 12.24% | 19.82% | 19.82% | |||||
Impairment | 0 | ¥ 5,000 | 0 | |||||
Disposal by sale | SEV related business | ||||||||
Equity Securities without Readily Determinable Fair Values | ||||||||
Total consideration | 60,000 | $ 60,000 | ¥ 60,000 | |||||
Equity Securities Without Readily Determinable Fair Values | ||||||||
Equity Securities without Readily Determinable Fair Values | ||||||||
Investment in affiliate | ¥ 60,000 | ¥ 65,000 | ¥ 115,303 | |||||
Impairment | ¥ 5,000 | |||||||
Cango Inc. | ||||||||
Equity Security with Readily Determinable Fair Values | ||||||||
Number of Series C preferred shares purchased | shares | 2,633,644 | 2,633,644 | ||||||
Total cash consideration for purchase of Series C preferred shares | $ 15,634 | ¥ 100,303 |
Short-term Borrowings and Lon_3
Short-term Borrowings and Long-term Borrowings - Total short-term borrowings (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 12, 2019 |
Short Term Debt Line Items | |||
Short term borrowings | ¥ 238,957 | ||
Secured borrowing | |||
Short Term Debt Line Items | |||
Principal Amount | ¥ 94,550 | ||
Interest rate | 5.70% | ||
Short term borrowings | 95,022 | ||
Unsecured bank loan | |||
Short Term Debt Line Items | |||
Principal Amount | ¥ 30,000 | ||
Interest rate | 5.655% | 5.655% | |
Short term borrowings | 30,000 | ||
Secured note payable | |||
Short Term Debt Line Items | |||
Principal Amount | ¥ 108,737 | ||
Interest rate | 5.5163% | ||
Short term borrowings | ¥ 113,935 |
Short-term Borrowings and Lon_4
Short-term Borrowings and Long-term Borrowings - Total long-term borrowings (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 78,412 | ¥ 511,638 |
Secured borrowing | ||
Debt Instrument [Line Items] | ||
Principal Amount | ¥ 94,550 | |
Interest Rate Per Annum | 6.175% | 6.175% |
Long-term borrowings | ¥ 98,717 | |
Unsecured corporate loan | ||
Debt Instrument [Line Items] | ||
Principal Amount | ¥ 401,073 | |
Interest Rate Per Annum | 6.175% | 6.175% |
Long-term borrowings | ¥ 412,921 |
Short-term Borrowings and Lon_5
Short-term Borrowings and Long-term Borrowings - Additional information (Details) ¥ in Thousands, $ in Thousands | Oct. 12, 2019CNY (¥) | Feb. 29, 2020USD ($) | Feb. 29, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Feb. 28, 2019USD ($) | Feb. 28, 2019CNY (¥) |
Short term borrowings | |||||||
Repayments of short term debt | $ 22,176 | ¥ 144,700 | |||||
Unsecured bank loan | |||||||
Short term borrowings | |||||||
Interest rate (as a percent) | 5.655% | 5.655% | 5.655% | ||||
Unsecured bank loan | Commercial Bank A | |||||||
Short term borrowings | |||||||
Principal Amount | ¥ 30,000 | ||||||
Term of short term borrowings (in years) | 1 year | ||||||
Secured note payable | |||||||
Short term borrowings | |||||||
Interest rate (as a percent) | 5.5163% | 5.5163% | |||||
Repayments of short term debt | ¥ 114,700 | ||||||
Secured note payable | Leading Ideal HK | |||||||
Short term borrowings | |||||||
Deposit given as collateral | $ 18,000 | ¥ 114,700 | |||||
Release of deposit pledged | $ 18,000 | ¥ 114,700 |
Trade and Notes Payable (Detail
Trade and Notes Payable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Trade and Notes Payable | |||
Trade payable for raw materials | ¥ 2,991,538 | ¥ 624,666 | |
Notes payable | 168,977 | ||
Total | $ 484,370 | ¥ 3,160,515 | ¥ 624,666 |
Accruals and Other Current Li_3
Accruals and Other Current Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Accruals and Other Current Liabilities | |||
Salaries and benefits payable | ¥ 187,972 | ¥ 129,657 | |
Payables for purchase of property, plant and equipment | 118,181 | 403,761 | |
Payables for acquisition of Chongqing Zhizao (Note 5) | 79,552 | 115,000 | |
Accrued warranty | 55,138 | 1,477 | |
Tax payable | 50,088 | 3,331 | |
Payables for research and development expenses | 35,032 | 94,222 | |
Advance from customers | 9,285 | 30,740 | |
Deposits from vendors | 9,120 | 18,150 | |
Payables for issuance cost | 20,929 | ||
Other payables | 103,091 | 49,992 | |
Total | $ 99,227 | ¥ 647,459 | ¥ 867,259 |
Convertible Debts (Details)
Convertible Debts (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2019USD ($)shares | Jan. 31, 2019USD ($)shares | Jan. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Nov. 30, 2017CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | Jun. 30, 2020CNY (¥) | Jul. 02, 2019USD ($) | Jul. 02, 2019CNY (¥) | Mar. 31, 2019CNY (¥) | Jan. 31, 2019CNY (¥) | |
Debt Instrument | ||||||||||||||
Balance of new loan and accrued interest payable | $ 78,412 | ¥ 511,638 | ||||||||||||
Proceeds from issuance of convertible debts | ¥ 168,070 | ¥ 150,000 | ||||||||||||
Supplemental Agreements With Wunan | ||||||||||||||
Debt Instrument | ||||||||||||||
Outstanding loan principal | ¥ 401,073 | |||||||||||||
Interest rate (as a percent) | 6.175% | |||||||||||||
Refund of prepayments of land use right | ¥ 175,582 | |||||||||||||
Reimbursement on certain eligible expenditures | 143,838 | |||||||||||||
Settlement amount of convertible loan | ¥ 319,420 | |||||||||||||
Balance of new loan and accrued interest payable | ¥ 412,921 | |||||||||||||
Series B-3 Preferred Stock | ||||||||||||||
Debt Instrument | ||||||||||||||
Discount on purchase price | 15.00% | |||||||||||||
Fair value of Series B-3 Warrant granted to convertible promissory notes | ¥ 14,161 | |||||||||||||
Convertible Loan | ||||||||||||||
Debt Instrument | ||||||||||||||
Outstanding loan principal | ¥ 600,000 | |||||||||||||
Interest rate (as a percent) | 8.00% | |||||||||||||
Proceeds from issuance of convertible debts | ¥ 150,000 | ¥ 450,000 | ||||||||||||
Term of short term borrowings (in years) | 3 years | |||||||||||||
Convertible Promissory Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Outstanding loan principal | $ 25,000 | $ 25,000 | $ 25,000 | ¥ 168,070 | ¥ 168,070 | |||||||||
Interest rate (as a percent) | 8.00% | 8.00% | 8.00% | 8.00% | ||||||||||
Term of short term borrowings (in years) | 12 months | 12 months | ||||||||||||
Accrued interest | $ 1,376 | ¥ 9,428 | ||||||||||||
Convertible Promissory Notes | Series B-3 Preferred Stock | ||||||||||||||
Debt Instrument | ||||||||||||||
Preferred shares converted from the convertible promissory notes | shares | 11,873,086 | 11,873,086 |
Revenue Disaggregation (Details
Revenue Disaggregation (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Revenue Disaggregation | |||
Total Revenue | $ 1,449,288 | ¥ 9,456,609 | ¥ 284,367 |
Vehicle sales | |||
Revenue Disaggregation | |||
Total Revenue | 1,422,636 | 9,282,703 | 280,967 |
Other sales and services | |||
Revenue Disaggregation | |||
Total Revenue | $ 26,652 | ¥ 173,906 | ¥ 3,400 |
Deferred Revenue (Details)
Deferred Revenue (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue-at beginning of the year | ¥ 62,638 | |
Additions | 9,687,382 | ¥ 338,702 |
Recognition | (9,342,852) | (276,064) |
Deferred revenue-at end of the year | ¥ 407,168 | ¥ 62,638 |
Deferred Revenue - Additional i
Deferred Revenue - Additional information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Deferred revenue | ¥ 407,168 | ¥ 62,638 | |
Deferred revenue, current | $ 41,611 | 271,510 | 56,695 |
Deferred revenue, noncurrent | $ 20,790 | 135,658 | ¥ 5,943 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligation expected to be recognized | ¥ 271,510 | ||
Period of performance obligation expected to be recognized | 12 months | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligation expected to be recognized | ¥ 135,658 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Minimum | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Period of performance obligation expected to be recognized | 12 months | 12 months |
Research and Development Expe_3
Research and Development Expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Research and Development Expenses | ||||
Employee compensation | ¥ 580,157 | ¥ 461,922 | ¥ 311,214 | |
Design and development expenses | 406,216 | 603,332 | 423,721 | |
Depreciation and amortization expenses | 44,977 | 39,648 | 19,461 | |
Rental and related expenses | 18,818 | 14,269 | 11,761 | |
Travel expenses | 9,360 | 21,815 | 12,827 | |
Others | 40,329 | 28,154 | 14,733 | |
Total | $ 168,560 | ¥ 1,099,857 | ¥ 1,169,140 | ¥ 793,717 |
Selling, General and Administ_3
Selling, General and Administrative Expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Selling, General and Administrative Expenses | ||||
Employee compensation | ¥ 449,109 | ¥ 238,368 | ¥ 171,948 | |
Marketing and promotional expenses | 264,814 | 176,383 | 35,134 | |
Rental and related expenses | 162,907 | 78,897 | 13,732 | |
Depreciation and amortization expenses | 37,923 | 57,650 | 41,035 | |
Impairment of property, plant and equipment | 30,381 | 18,066 | ||
Travel expenses | 20,806 | 20,171 | 13,803 | |
Others | 152,879 | 99,844 | 61,548 | |
Selling, General and Administrative Expense, Total | $ 171,467 | ¥ 1,118,819 | ¥ 689,379 | ¥ 337,200 |
Discontinued Operations - Asset
Discontinued Operations - Assets and liabilities (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Mar. 31, 2020USD ($) | Mar. 31, 2020CNY (¥) | |
Assets and Liabilities | |||||
Assets held for sale, current | ¥ 17,599 | ||||
Assets held for sale, non-current | 30,253 | ||||
Total liabilities held for sale | 2,862 | ||||
Impairment of Long-Lived Assets Held-for-use | ¥ 30,381 | 18,066 | ¥ 0 | ||
SEV related business | Discontinued Operations, Held-for-sale | |||||
Assets and Liabilities | |||||
Cash and cash equivalents | 295 | 147 | |||
Trade receivable | 608 | 191 | |||
Amount due from related parties | 832 | 832 | |||
Inventories | 5,594 | 7,385 | |||
Prepayments and other current assets | 9,066 | 9,044 | |||
Assets held for sale, current | 16,395 | 17,599 | |||
Property, plant and equipment, net | 29,010 | 29,539 | |||
Operating lease right-of-use assets, net | 186 | ||||
Other non-current assets | 528 | 528 | |||
Assets held for sale, non-current | 29,538 | 30,253 | |||
Total assets held for sale | 45,933 | 47,852 | |||
Trade and notes payable | 542 | 423 | |||
Operating lease liabilities, current | 47 | ||||
Accruals and other current liabilities | 2,754 | 2,392 | |||
Total liabilities held for sale | 3,296 | ¥ 2,862 | |||
Impairment of Long-Lived Assets Held-for-use | ¥ 292,795 | ||||
SEV related business | Disposal by sale | |||||
Assets and Liabilities | |||||
Total consideration | ¥ 60,000 | $ 60,000 | ¥ 60,000 |
Discontinued Operations - Resul
Discontinued Operations - Results of operations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Results of operations | ||||
Impairment of long-lived assets | ¥ (292,795) | |||
Net loss from discontinued operations, net of tax | $ 2,203 | ¥ 14,373 | ¥ (20,662) | (367,022) |
Discontinued Operations, Held-for-sale | SEV related business | ||||
Results of operations | ||||
Revenues | 870 | 9,654 | 8,376 | |
Cost of sales | (2,437) | (18,981) | (12,264) | |
Gross loss | (1,567) | (9,327) | (3,888) | |
Operating expenses | (1,423) | (11,359) | (70,401) | |
Impairment of long-lived assets | (292,795) | |||
Loss from operations of discontinued operations | (2,990) | (20,686) | (367,084) | |
Others, net | 24 | 62 | ||
Loss from discontinued operations before income tax expense | (2,990) | (20,662) | (367,022) | |
Net loss from discontinued operations, net of tax | ¥ (2,990) | ¥ (20,662) | ¥ (367,022) |
Discontinued Operations - Cash
Discontinued Operations - Cash flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Cash flows | ||||
Net cash (used in)/provided by discontinued operating activities | $ 23 | ¥ 148 | ¥ (11,395) | ¥ (65,925) |
Net cash (used in)/provided by discontinued investing activities | $ 9,150 | 59,705 | (10,565) | (83,963) |
Discontinued Operations, Held-for-sale | SEV related business | ||||
Cash flows | ||||
Net cash (used in)/provided by discontinued operating activities | 148 | (11,395) | (65,925) | |
Net cash (used in)/provided by discontinued investing activities | ¥ 59,705 | ¥ (10,565) | ¥ (83,963) |
Discontinued Operations - Gain
Discontinued Operations - Gain on disposal of discontinued operations (Details) - Disposal by sale - SEV related business ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Mar. 31, 2020USD ($) | Mar. 31, 2020CNY (¥) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash consideration received for sale of SEV battery packs business | ¥ 60,000 | $ 60,000 | ¥ 60,000 |
Carrying value of net assets transferred | (42,637) | ||
Gain on disposal of discontinued operations | ¥ 17,363 |
Ordinary Shares (Details)
Ordinary Shares (Details) ¥ in Thousands, $ in Thousands | Aug. 07, 2020USD ($)shares | Jul. 04, 2016CNY (¥) | Dec. 31, 2020shares | Aug. 31, 2020USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019shares | Jul. 31, 2019Voteshares |
Ordinary Shares | ||||||||
Cash consideration | $ 1,531,181 | ¥ 9,990,955 | ||||||
Number of shares issued (in shares) | 1,809,288,310 | 1,809,288,310 | 1,809,288,310 | 255,000,000 | ||||
Number of shares outstanding (in shares) | 1,809,288,310 | 1,809,288,310 | 1,809,288,310 | 255,000,000 | ||||
Class A Ordinary Shares | ||||||||
Ordinary Shares | ||||||||
Ordinary shares, shares authorized | 4,000,000,000 | 4,000,000,000 | 4,000,000,000 | 3,847,384,000 | 3,830,157,186 | |||
Number of votes entitled | Vote | 1 | |||||||
Cash consideration | $ | $ 380,000 | |||||||
Share issuance, net of issuance costs (in shares) | 66,086,955 | |||||||
Shares issued upon conversion of preferred shares (in shares) | 1,045,789,275 | |||||||
Number of shares issued (in shares) | 1,453,476,230 | 1,453,476,230 | 1,453,476,230 | 15,000,000 | ||||
Number of shares outstanding (in shares) | 1,453,476,230 | 1,453,476,230 | 1,453,476,230 | 15,000,000 | ||||
Class A Ordinary Shares | IPO | ||||||||
Ordinary Shares | ||||||||
Share issuance, net of issuance costs (in shares) | 190,000,000 | |||||||
Net proceeds | $ | $ 1,042,137 | |||||||
Shares issued upon conversion of preferred shares (in shares) | 1,045,789,275 | |||||||
Class A Ordinary Shares | Over-allotment option | ||||||||
Ordinary Shares | ||||||||
Cash consideration | $ | $ 157,320 | |||||||
Share issuance, net of issuance costs (in shares) | 28,500,000 | 14,100,000 | ||||||
Class A Ordinary Shares | Follow-on offering | ||||||||
Ordinary Shares | ||||||||
Share issuance, net of issuance costs (in shares) | 108,100,000 | |||||||
Class B Ordinary Shares | ||||||||
Ordinary Shares | ||||||||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 240,000,000 | 240,000,000 | |||
Number of votes entitled | Vote | 10 | |||||||
Number of shares issued (in shares) | 355,812,080 | 355,812,080 | 355,812,080 | 240,000,000 | ||||
Number of shares outstanding (in shares) | 355,812,080 | 355,812,080 | 355,812,080 | 240,000,000 | ||||
Class B Ordinary Shares | Mr. Xiang Li | ||||||||
Ordinary Shares | ||||||||
Shares issued upon conversion of preferred shares (in shares) | 115,812,080 | |||||||
Class B Ordinary Shares | IPO | ||||||||
Ordinary Shares | ||||||||
Shares issued upon conversion of preferred shares (in shares) | 115,812,080 | |||||||
Series PreA shares | Beijing CHJ | ||||||||
Ordinary Shares | ||||||||
Cash consideration | ¥ | ¥ 100,000 |
Convertible Redeemable Prefer_3
Convertible Redeemable Preferred Shares and Warrants - Issuances of convertible redeemable preferred shares and major rights, preferences and privileges of the Preferred Shares (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | Jan. 23, 2020shares | Aug. 31, 2020shares | Dec. 31, 2019$ / shares | Jan. 31, 2019shares | Dec. 31, 2020USD ($)Vote$ / sharesshares | Dec. 31, 2020CNY (¥)Voteshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2020CNY (¥)¥ / sharesshares |
Issuances of convertible redeemable preferred shares | |||||||||
Shares Issued | 48,656,111 | ||||||||
Conversion ratio of preferred Shares to ordinary shares | 1 | ||||||||
Percentage of redemption amount payable on Preferred Shares' original issue price | 100.00% | 100.00% | |||||||
Percentage of simple interest on preferred shares' original issue price for accrued and unpaid dividends | 8.00% | 8.00% | |||||||
Vote per share | Vote | 1 | 1 | |||||||
Preferred stock dividends declared | ¥ | ¥ 0 | ||||||||
Common stock dividends declared | ¥ | ¥ 0 | ||||||||
Liquidation, percentage of amount on preferred shares original price | 100.00% | 100.00% | |||||||
Liquidation preference, simple non-compounded interest rate (as a percent) | 8.00% | 8.00% | |||||||
Accretion of the preferred shares | $ 99,799 | ¥ 651,190 | ¥ 743,100 | ¥ 317,320 | |||||
Series Pre-A convertible redeemable preferred shares | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Shares Issued | 50,000,000 | 50,000,000 | |||||||
Issue Price per Share | ¥ / shares | ¥ 2 | ||||||||
Proceeds from issuance of convertible redeemable preferred shares | ¥ | ¥ 100,000 | ||||||||
Preferred shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||||
Series A1 convertible redeemable preferred shares | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Shares Issued | 129,409,092 | 129,409,092 | |||||||
Issue Price per Share | ¥ / shares | 6.03 | ||||||||
Proceeds from issuance of convertible redeemable preferred shares | ¥ | ¥ 780,000 | ||||||||
Preferred shares, par value | $ / shares | 0.0001 | $ 0.0001 | |||||||
Series A2 convertible redeemable preferred shares | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Shares Issued | 126,771,562 | 126,771,562 | |||||||
Issue Price per Share | ¥ / shares | 7.89 | ||||||||
Proceeds from issuance of convertible redeemable preferred shares | ¥ | ¥ 1,000,000 | ||||||||
Preferred shares, par value | $ / shares | 0.0001 | $ 0.0001 | |||||||
Series A3 convertible redeemable preferred shares | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Shares Issued | 65,498,640 | 65,498,640 | |||||||
Issue Price per Share | ¥ / shares | 9.47 | ||||||||
Proceeds from issuance of convertible redeemable preferred shares | ¥ | ¥ 620,000 | ||||||||
Preferred shares, par value | $ / shares | 0.0001 | $ 0.0001 | |||||||
Series B1 convertible redeemable preferred shares | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Shares Issued | 115,209,526 | 115,209,526 | 21,744,844 | ||||||
Issue Price per Share | ¥ / shares | 13.11 | ||||||||
Proceeds from issuance of convertible redeemable preferred shares | ¥ | ¥ 1,510,000 | ||||||||
Preferred shares, par value | $ / shares | 0.0001 | $ 0.0001 | |||||||
Series B2 convertible redeemable preferred shares | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Shares Issued | 55,804,773 | 55,804,773 | 7,148,662 | 48,656,111 | |||||
Issue Price per Share | ¥ / shares | 14.16 | ||||||||
Proceeds from issuance of convertible redeemable preferred shares | ¥ | ¥ 790,000 | ¥ 688,800 | |||||||
Preferred shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||||
Series B3 convertible redeemable preferred shares | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Shares Issued | 119,950,686 | 119,950,686 | 108,077,600 | ||||||
Issue Price per Share | ¥ / shares | ¥ 14.16 | ||||||||
Proceeds from issuance of convertible redeemable preferred shares | ¥ | ¥ 1,701,283 | ¥ 1,530,000 | |||||||
Preferred shares converted from the convertible promissory notes | 11,873,086 | ||||||||
Discount on purchase price | 15.00% | 15.00% | 15.00% | ||||||
Preferred shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||||
Series C Convertible Redeemable Preferred Shares | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Shares Issued | 267,198,535 | 267,198,535 | 248,281,987 | ||||||
Proceeds from issuance of convertible redeemable preferred shares | ¥ | ¥ 3,626,924 | ¥ 3,626,924 | |||||||
Discount on purchase price | 15.00% | 15.00% | |||||||
Shares issued upon exercise of additional warrants | 18,916,548 | 78,334,557 | 78,334,557 | ||||||
Cash exercise price | ¥ | ¥ 1,022,045 | ||||||||
Cash exercise price per share | ¥ / shares | ¥ 13.02 | ||||||||
Shares issued for non- refundable cash considerations | 4,109,127 | ||||||||
Preferred shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||||
Series D Convertible Redeemable Preferred Shares | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Shares Issued | 231,758,541 | 231,758,541 | |||||||
Proceeds from issuance of convertible redeemable preferred shares | ¥ | ¥ 3,851,034 | ||||||||
Preferred shares, par value | $ / shares | $ 0.0001 | ||||||||
Class A Ordinary Shares | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Shares issued upon conversion of preferred shares (in shares) | 1,045,789,275 | ||||||||
Class A Ordinary Shares | IPO | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Shares issued upon conversion of preferred shares (in shares) | 1,045,789,275 | ||||||||
Class B Ordinary Shares | IPO | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Shares issued upon conversion of preferred shares (in shares) | 115,812,080 | ||||||||
Minimum | Series C Convertible Redeemable Preferred Shares | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Issue Price per Share | $ / shares | 2.23 | ||||||||
Minimum | Series D Convertible Redeemable Preferred Shares | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Issue Price per Share | $ / shares | 2.64 | ||||||||
Maximum | Series C Convertible Redeemable Preferred Shares | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Issue Price per Share | $ / shares | 1.89 | ||||||||
Maximum | Series D Convertible Redeemable Preferred Shares | |||||||||
Issuances of convertible redeemable preferred shares | |||||||||
Issue Price per Share | $ / shares | $ 2.35 |
Convertible Redeemable Prefer_4
Convertible Redeemable Preferred Shares and Warrants - Movement of the Warrants and conversion feature derivative liabilities (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement of the Warrants and conversion feature derivative liabilities | |||
Beginning balance | ¥ 1,648,690 | ||
Issuance | 328,461 | ¥ 1,240,859 | |
Fair value change | (272,327) | 504,164 | |
Exercise | (1,706,003) | (45,858) | |
Expire | (77,739) | ||
Translation to reporting currency | ¥ 1,179 | 27,264 | |
Ending balance | ¥ 1,648,690 | 1,648,690 | |
Series B3 convertible redeemable preferred shares | |||
Movement of the Warrants and conversion feature derivative liabilities | |||
Discount on purchase price | 15.00% | 15.00% | |
Warrant liabilities | |||
Movement of the Warrants and conversion feature derivative liabilities | |||
Beginning balance | ¥ 351,750 | ||
Issuance | 174,846 | ||
Fair value change | (46,812) | 292,305 | |
Exercise | (305,333) | (45,858) | |
Expire | (77,739) | ||
Translation to reporting currency | 395 | 8,196 | |
Ending balance | ¥ 351,750 | 351,750 | |
Derivative liabilities | |||
Movement of the Warrants and conversion feature derivative liabilities | |||
Beginning balance | 1,296,940 | ||
Issuance | 328,461 | 1,066,013 | |
Fair value change | (225,515) | 211,859 | |
Exercise | (1,400,670) | ||
Translation to reporting currency | ¥ 784 | 19,068 | |
Ending balance | ¥ 1,296,940 | ¥ 1,296,940 |
Convertible Redeemable Prefer_5
Convertible Redeemable Preferred Shares and Warrants - Convertible redeemable preferred shares activities (Details) ¥ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020USD ($)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018CNY (¥)shares | |
Convertible redeemable preferred shares activities | ||||||
Beginning balance | ¥ 10,255,662 | ¥ 5,199,039 | ¥ 3,911,125 | |||
Beginning balance (in shares) | shares | 910,926,266 | 910,926,266 | 535,544,931 | 535,544,931 | 465,143,976 | 465,143,976 |
Issuance of preferred shares | ¥ 685,594 | |||||
Issuance of preferred shares (in shares) | shares | 48,656,111 | 48,656,111 | ||||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 651,190 | ¥ 743,100 | ¥ 317,320 | |||
Conversion of convertible promissory notes into Series B3 Preferred Shares | $ | $ 11,873,086 | |||||
Exercise of Series B-3 Anti-Dilution Warrant | ¥ 305,333 | |||||
Exercise of Series B-3 Anti-Dilution Warrant (in shares) | shares | 18,916,548 | 18,916,548 | ||||
Bifurcation of conversion feature | ¥ (81,082) | (1,066,013) | ||||
Effect of exchange rate changes on preferred shares | (10,862) | (117,391) | ||||
Conversion of preferred shares to ordinary shares | ¥ (14,723,896) | |||||
Conversion of preferred shares to ordinary shares (in shares) | shares | (1,161,601,355) | (1,161,601,355) | ||||
Ending balance | ¥ 10,255,662 | ¥ 5,199,039 | ||||
Ending balance (in shares) | shares | 910,926,266 | 910,926,266 | 535,544,931 | 535,544,931 | ||
Series Pre-A convertible redeemable preferred shares | ||||||
Convertible redeemable preferred shares activities | ||||||
Beginning balance | ¥ 434,886 | ¥ 175,847 | ¥ 175,847 | |||
Beginning balance (in shares) | shares | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 |
Issuance of preferred shares (in shares) | shares | 50,000,000 | 50,000,000 | ||||
Deemed dividend to/(contribution from) preferred shareholders upon extinguishment | ¥ 281,638 | |||||
Bifurcation of conversion feature | (14,549) | |||||
Effect of exchange rate changes on preferred shares | ¥ (858) | (8,050) | ||||
Conversion of preferred shares to ordinary shares | ¥ (434,028) | |||||
Conversion of preferred shares to ordinary shares (in shares) | shares | (50,000,000) | (50,000,000) | ||||
Ending balance | ¥ 434,886 | ¥ 175,847 | ||||
Ending balance (in shares) | shares | 0 | 0 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 |
Series A1 convertible redeemable preferred shares | ||||||
Convertible redeemable preferred shares activities | ||||||
Beginning balance | ¥ 980,949 | ¥ 907,658 | ¥ 847,530 | |||
Beginning balance (in shares) | shares | 129,409,092 | 129,409,092 | 129,409,092 | 129,409,092 | 129,409,092 | 129,409,092 |
Issuance of preferred shares (in shares) | shares | 129,409,092 | 129,409,092 | ||||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 34,229 | ¥ 60,249 | ¥ 60,128 | |||
Deemed dividend to/(contribution from) preferred shareholders upon extinguishment | 284,655 | |||||
Bifurcation of conversion feature | (254,121) | |||||
Effect of exchange rate changes on preferred shares | (1,746) | (17,492) | ||||
Conversion of preferred shares to ordinary shares | ¥ (1,013,432) | |||||
Conversion of preferred shares to ordinary shares (in shares) | shares | (129,409,092) | (129,409,092) | ||||
Ending balance | ¥ 980,949 | ¥ 907,658 | ||||
Ending balance (in shares) | shares | 0 | 0 | 129,409,092 | 129,409,092 | 129,409,092 | 129,409,092 |
Series A2 convertible redeemable preferred shares | ||||||
Convertible redeemable preferred shares activities | ||||||
Beginning balance | ¥ 1,074,959 | ¥ 1,099,816 | ¥ 1,027,497 | |||
Beginning balance (in shares) | shares | 126,771,562 | 126,771,562 | 126,771,562 | 126,771,562 | 126,771,562 | 126,771,562 |
Issuance of preferred shares (in shares) | shares | 126,771,562 | 126,771,562 | ||||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 63,363 | ¥ 90,077 | ¥ 72,319 | |||
Deemed dividend to/(contribution from) preferred shareholders upon extinguishment | 115,806 | |||||
Bifurcation of conversion feature | (212,055) | |||||
Effect of exchange rate changes on preferred shares | (1,770) | (18,685) | ||||
Conversion of preferred shares to ordinary shares | ¥ (1,136,552) | |||||
Conversion of preferred shares to ordinary shares (in shares) | shares | (126,771,562) | (126,771,562) | ||||
Ending balance | ¥ 1,074,959 | ¥ 1,099,816 | ||||
Ending balance (in shares) | shares | 0 | 0 | 126,771,562 | 126,771,562 | 126,771,562 | 126,771,562 |
Series A3 convertible redeemable preferred shares | ||||||
Convertible redeemable preferred shares activities | ||||||
Beginning balance | ¥ 619,770 | ¥ 676,458 | ¥ 631,803 | |||
Beginning balance (in shares) | shares | 65,498,640 | 65,498,640 | 65,498,640 | 65,498,640 | 65,498,640 | 65,498,640 |
Issuance of preferred shares (in shares) | shares | 65,498,640 | 65,498,640 | ||||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 46,738 | ¥ 61,299 | ¥ 44,655 | |||
Deemed dividend to/(contribution from) preferred shareholders upon extinguishment | (15,139) | |||||
Bifurcation of conversion feature | (92,256) | |||||
Effect of exchange rate changes on preferred shares | (964) | (10,592) | ||||
Conversion of preferred shares to ordinary shares | ¥ (665,544) | |||||
Conversion of preferred shares to ordinary shares (in shares) | shares | (65,498,640) | (65,498,640) | ||||
Ending balance | ¥ 619,770 | ¥ 676,458 | ||||
Ending balance (in shares) | shares | 0 | 0 | 65,498,640 | 65,498,640 | 65,498,640 | 65,498,640 |
Series B1 convertible redeemable preferred shares | ||||||
Convertible redeemable preferred shares activities | ||||||
Beginning balance | ¥ 1,347,607 | ¥ 1,621,561 | ¥ 1,228,448 | |||
Beginning balance (in shares) | shares | 115,209,526 | 115,209,526 | 115,209,526 | 115,209,526 | 93,464,682 | 93,464,682 |
Issuance of preferred shares | $ 21,744,844 | ¥ 285,000 | ||||
Issuance of preferred shares (in shares) | shares | 115,209,526 | 115,209,526 | 21,744,844 | 21,744,844 | ||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 136,567 | ¥ 164,540 | ¥ 108,113 | |||
Deemed dividend to/(contribution from) preferred shareholders upon extinguishment | (310,359) | |||||
Bifurcation of conversion feature | (105,702) | |||||
Effect of exchange rate changes on preferred shares | (1,899) | (22,433) | ||||
Conversion of preferred shares to ordinary shares | ¥ (1,482,275) | |||||
Conversion of preferred shares to ordinary shares (in shares) | shares | (115,209,526) | (115,209,526) | ||||
Ending balance | ¥ 1,347,607 | ¥ 1,621,561 | ||||
Ending balance (in shares) | shares | 0 | 0 | 115,209,526 | 115,209,526 | 115,209,526 | 115,209,526 |
Series B2 convertible redeemable preferred shares | ||||||
Convertible redeemable preferred shares activities | ||||||
Beginning balance | ¥ 710,303 | ¥ 717,699 | ||||
Beginning balance (in shares) | shares | 55,804,773 | 55,804,773 | 48,656,111 | 48,656,111 | ||
Issuance of preferred shares | ¥ 101,200 | ¥ 685,594 | ||||
Issuance of preferred shares (in shares) | shares | 55,804,773 | 55,804,773 | 7,148,662 | 7,148,662 | 48,656,111 | 48,656,111 |
Accretion on convertible redeemable preferred shares to redemption value | ¥ 64,859 | ¥ 80,891 | ¥ 32,105 | |||
Conversion of convertible promissory notes into Series B3 Preferred Shares | 166,549 | |||||
Deemed dividend to/(contribution from) preferred shareholders upon extinguishment | (130,312) | |||||
Bifurcation of conversion feature | (47,231) | |||||
Effect of exchange rate changes on preferred shares | (1,040) | (11,944) | ||||
Conversion of preferred shares to ordinary shares | ¥ (774,122) | |||||
Conversion of preferred shares to ordinary shares (in shares) | shares | (55,804,773) | (55,804,773) | ||||
Ending balance | ¥ 710,303 | ¥ 717,699 | ||||
Ending balance (in shares) | shares | 0 | 0 | 55,804,773 | 55,804,773 | 48,656,111 | 48,656,111 |
Series B3 convertible redeemable preferred shares | ||||||
Convertible redeemable preferred shares activities | ||||||
Beginning balance | ¥ 1,551,080 | |||||
Beginning balance (in shares) | shares | 119,950,686 | 119,950,686 | ||||
Issuance of preferred shares | ¥ 1,395,015 | |||||
Issuance of preferred shares (in shares) | shares | 119,950,686 | 119,950,686 | 108,077,600 | 108,077,600 | ||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 80,635 | ¥ 133,798 | ||||
Conversion of convertible promissory notes into Series B3 Preferred Shares | ¥ 166,549 | |||||
Conversion of convertible promissory notes into Series B3 Preferred Shares (in shares) | shares | 11,873,086 | 11,873,086 | ||||
Deemed dividend to/(contribution from) preferred shareholders upon extinguishment | ¥ (8,927) | |||||
Bifurcation of conversion feature | (108,190) | |||||
Effect of exchange rate changes on preferred shares | (2,613) | (27,165) | ||||
Conversion of preferred shares to ordinary shares | ¥ (1,629,102) | |||||
Conversion of preferred shares to ordinary shares (in shares) | shares | (119,950,686) | (119,950,686) | ||||
Ending balance | ¥ 1,551,080 | |||||
Ending balance (in shares) | shares | 0 | 0 | 119,950,686 | 119,950,686 | ||
Series C Convertible Redeemable Preferred Shares | ||||||
Convertible redeemable preferred shares activities | ||||||
Beginning balance | ¥ 3,536,108 | |||||
Beginning balance (in shares) | shares | 244,172,860 | 244,172,860 | ||||
Beginning balance (in shares) | shares | 248,281,987 | 248,281,987 | ||||
Issuance of preferred shares | ¥ 3,616,801 | |||||
Issuance of preferred shares (in shares) | shares | 267,198,535 | 267,198,535 | 248,281,987 | 248,281,987 | ||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 178,007 | ¥ 152,246 | ||||
Deemed dividend to/(contribution from) preferred shareholders upon extinguishment | 217,362 | |||||
Exercise of Series B-3 Anti-Dilution Warrant | ¥ 305,333 | |||||
Exercise of Series B-3 Anti-Dilution Warrant (in shares) | shares | 18,916,548 | 18,916,548 | ||||
Bifurcation of conversion feature | ¥ (81,082) | (231,909) | ||||
Effect of exchange rate changes on preferred shares | 28 | (1,030) | ||||
Conversion of preferred shares to ordinary shares | ¥ (3,938,394) | |||||
Conversion of preferred shares to ordinary shares (in shares) | shares | (267,198,535) | (267,198,535) | ||||
Ending balance | ¥ 3,536,108 | |||||
Ending balance (in shares) | shares | 0 | 0 | 244,172,860 | 244,172,860 | ||
Ending balance (in shares) | shares | 248,281,987 | 248,281,987 | ||||
Series D Convertible Redeemable Preferred Shares | ||||||
Convertible redeemable preferred shares activities | ||||||
Issuance of preferred shares | $ 231,758,541 | ¥ 3,603,655 | ||||
Accretion on convertible redeemable preferred shares to redemption value | 46,792 | |||||
Conversion of preferred shares to ordinary shares | ¥ (3,650,447) | |||||
Conversion of preferred shares to ordinary shares (in shares) | shares | (231,758,541) | (231,758,541) |
Loss Per Share (Details)
Loss Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss | $ (23,243) | ¥ (151,657) | ¥ (2,438,536) | ¥ (1,532,318) |
Accretion on convertible redeemable preferred shares to redemption value | (99,799) | (651,190) | (743,100) | (317,320) |
Deemed dividend to preferred shareholders upon extinguishment, net | ¥ | (217,362) | |||
Effect of exchange rate changes on convertible redeemable preferred shares | 1,665 | 10,862 | 117,391 | |
Net loss attributable to ordinary shareholders of Li Auto Inc. | (121,377) | (791,985) | (3,281,607) | (1,849,638) |
Including: | ||||
Net loss from continuing operations attributable to ordinary shareholders of Li Auto Inc. | (123,580) | (806,358) | (3,260,945) | (1,482,616) |
Net (loss)/income from discontinued operations attributable to ordinary shareholders of Li Auto Inc. | $ 2,203 | ¥ 14,373 | ¥ (20,662) | ¥ (367,022) |
Denominator: | ||||
Weighted average ordinary shares outstanding-basic and diluted | shares | 870,003,278 | 870,003,278 | 255,000,000 | 255,000,000 |
Basic and diluted net loss per share from continuing operations attributable to ordinary shareholders of Li Auto Inc. | (per share) | $ (0.14) | ¥ (0.93) | ¥ (12.79) | ¥ (5.81) |
Basic and diluted net (loss)/income per share from discontinued operations attributable to ordinary shareholders of Li Auto Inc. | ¥ / shares | 0.02 | (0.08) | (1.44) | |
Net loss per share | (per share) | $ (0.14) | ¥ (0.91) | ¥ (12.87) | ¥ (7.25) |
Loss Per Share - Additional inf
Loss Per Share - Additional information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Preferred shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Weighted average numbers of shares excluded from the calculation of diluted loss per share | 669,666,355 | 767,751,031 | 518,689,896 |
Options granted | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Weighted average numbers of shares excluded from the calculation of diluted loss per share | 54,605,925 | 30,434,096 | 21,658,638 |
Convertible debts | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Weighted average numbers of shares excluded from the calculation of diluted loss per share | 22,639,154 | 51,503,724 | 45,778,620 |
Share-based Compensation - Comp
Share-based Compensation - Compensation expenses (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Total | ¥ 142,795 |
Cost of sales | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Total | 1,515 |
Research and development expenses | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Total | 60,789 |
Selling, general and administrative expenses | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Total | ¥ 80,491 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of stock option activity (Details) - 2019 Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Options Outstanding, Beginning balance | 54,760,000 | 51,640,000 | 45,390,000 | |
Number of Options Outstanding, Granted | 4,224,000 | 3,430,000 | 6,250,000 | |
Number of Options Outstanding, Forfeited | (2,070,000) | (310,000) | ||
Number of Options Outstanding, Ending balance | 56,914,000 | 54,760,000 | 51,640,000 | 45,390,000 |
Weighted average exercise price, Outstanding | $ 0.10 | $ 0.10 | $ 0.10 | |
Weighted average exercise price, Granted | 0.10 | 0.10 | 0.10 | |
Weighted average exercise price, Forfeited | 0.10 | 0.10 | ||
Weighted average exercise price, Outstanding | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 |
Weighted average remaining contractual life (in years) | 5 years 11 months 12 days | 6 years 8 months 23 days | 7 years 6 months 26 days | 8 years 3 months 29 days |
Aggregate intrinsic value, Outstanding | $ 814,724 | $ 73,926 | $ 41,312 | $ 30,411 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of options fair value assumptions (Details) - 2019 Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Exercise price (USD) | $ 0.10 | $ 0.10 | $ 0.10 |
Fair value of the ordinary shares on the date of option grant (USD) | $ 1.71 | $ 0.99 | $ 0.75 |
Expected term (in years) | 10 years | 10 years | 10 years |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Fair value of the ordinary shares on the date of option grant (USD) | $ 1.35 | $ 0.90 | $ 0.77 |
Risk-free interest rate | 0.69% | 1.98% | 3.69% |
Expected volatility | 45.00% | 47.00% | 50.00% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Fair value of the ordinary shares on the date of option grant (USD) | $ 1.90 | $ 1.45 | $ 0.89 |
Risk-free interest rate | 1.92% | 3.17% | 3.92% |
Expected volatility | 46.00% | 48.00% | 51.00% |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2019shares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Jul. 31, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expenses | ¥ | ¥ 7,241 | |||||
Weighted average period of unrecognized compensation cost | 3 years 11 months 9 days | |||||
Number of vested and exercisable options (in shares) | 40,410,000 | |||||
Average exercise price (in USD per share) | $ / shares | $ 0.10 | |||||
Options vested (in shares) | 0 | |||||
2019 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Contractual term (in years) | 10 years | |||||
Vesting period (in years) | 5 years | |||||
Vesting percentage | 20.00% | |||||
Granted (in shares) | 4,224,000 | 3,430,000 | 6,250,000 | |||
Weighted average grant date fair value of options granted | $ / shares | $ 1.71 | $ 0.99 | $ 0.75 | |||
2019 Plan | Class A Ordinary Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of shares authorized | 141,083,452 | |||||
2020 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of shares authorized | 30,000,000 | |||||
Granted (in shares) | 0 |
Taxation (Details)
Taxation (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | |
Income Tax Disclosure [Line Items] | ||
Enterprise income tax rate (as a percent) | 25.00% | 25.00% |
Current and deferred income tax expense | $ (3,501) | ¥ (22,847) |
Net operating loss carryforwards | 5,841,910 | |
Deferred tax assets, operating carryforwards, valuation allowance | 908,888 | |
Deferred tax assets, operating carryforwards, net of valuation allowance | ¥ 235,509 | |
Cayman Islands | ||
Income Tax Disclosure [Line Items] | ||
Withholding income tax rate (as a percent) | 0.00% | 0.00% |
Hong Kong | ||
Income Tax Disclosure [Line Items] | ||
Enterprise income tax rate (as a percent) | 16.50% | 16.50% |
PRC | ||
Income Tax Disclosure [Line Items] | ||
Statutory VAT rate (as a percent) | 13.00% | 13.00% |
Withholding income tax rate (as a percent) | 10.00% | 10.00% |
Enterprise income tax rate (as a percent) | 25.00% | 25.00% |
Minimum percentage of ownership interests held by investors in Hong Kong to qualify for lower withholding tax rate (as a percent) | 25.00% | 25.00% |
Reduced withholding tax rate (as a percent) | 5.00% | 5.00% |
Total deduction available on qualified research and development expenses (as a percent) | 175.00% | 175.00% |
Additional deduction on qualified research and development expenses (as a percent) | 75.00% | 75.00% |
PRC | High and New Technology Enterprises | ||
Income Tax Disclosure [Line Items] | ||
Preferential enterprise income tax rate (as a percent) | 15.00% | 15.00% |
Taxation - Composition of incom
Taxation - Composition of income tax benefit (Details) - 12 months ended Dec. 31, 2020 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Composition of income tax benefit | ||
Deferred income tax benefit | $ 3,501 | ¥ 22,847 |
Taxation - Reconciliations of i
Taxation - Reconciliations of income tax expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Reconciliations of the income tax expenses | ||||
Loss before income tax expense | $ (28,947) | ¥ (188,877) | ¥ (2,417,874) | ¥ (1,165,296) |
Income tax credit computed at PRC statutory income tax rate of 25% | (47,219) | (604,468) | (291,324) | |
Tax effect of tax-exempt entity and preferential tax rate | 30,140 | 230,669 | 97,549 | |
Tax effect of Super Deduction and others | (144,503) | (121,177) | (139,331) | |
Nondeductible expenses | 21,511 | 27,031 | 109 | |
Change in valuation allowance | 117,224 | ¥ 467,945 | ¥ 332,997 | |
Income tax benefit | $ (3,501) | ¥ (22,847) | ||
PRC statutory tax rate (in percent) | 25.00% | 25.00% |
Taxation - Components of deferr
Taxation - Components of deferred tax assets (liabilities) (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||||
Net operating loss carryforwards | ¥ 1,144,397 | ¥ 717,495 | ¥ 321,077 | |
Accrued expenses and others | 66,773 | 12,545 | 7,385 | |
Depreciation and amortization | 16,220 | 26,946 | 5,549 | |
Impairment of long-lived assets | 7,694 | 73,271 | 68,754 | |
Unrealized financing cost | 13,125 | 27,520 | 11,401 | |
Unrealized investment loss | 29,664 | 5,330 | ||
Total deferred tax assets | 1,248,209 | 887,441 | 419,496 | |
Less: Valuation allowance | (1,004,665) | ¥ (887,441) | ¥ (419,496) | ¥ (86,499) |
Deferred tax assets, net of valuation allowance | 243,544 | |||
Deferred tax liabilities | ||||
Accelerated tax depreciation and others | (215,030) | |||
Fair value change of certain investments | (5,667) | |||
Total deferred tax liabilities | (220,697) | |||
Deferred tax assets, net of valuation allowance and deferred tax liabilities | ¥ 22,847 |
Taxation - Movement of valuatio
Taxation - Movement of valuation allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation allowance | |||
Balance at beginning of the year | ¥ 887,441 | ¥ 419,496 | ¥ 86,499 |
Additions | 148,458 | 467,945 | 332,997 |
Reversal | (31,234) | ||
Balance at ending of the year | ¥ 1,004,665 | ¥ 887,441 | ¥ 419,496 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and liabilities measured at fair value on a recurring basis (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Equity securities with readily determinable fair value | ¥ 64,916 | ¥ 90,724 |
Recurring | ||
Assets | ||
Short-term investments | 18,850,462 | 1,814,108 |
Equity securities with readily determinable fair value | 64,916 | 90,724 |
Total assets | 18,915,378 | 1,904,832 |
Liabilities | ||
Warrant liabilities | 351,750 | |
Derivative liabilities | 1,296,940 | |
Total liabilities | 1,648,690 | |
Recurring | Level 1 | ||
Assets | ||
Equity securities with readily determinable fair value | 64,916 | 90,724 |
Total assets | 64,916 | 90,724 |
Recurring | Level 2 | ||
Assets | ||
Short-term investments | 18,850,462 | 1,814,108 |
Total assets | ¥ 18,850,462 | 1,814,108 |
Recurring | Level 3 | ||
Liabilities | ||
Warrant liabilities | 351,750 | |
Derivative liabilities | 1,296,940 | |
Total liabilities | ¥ 1,648,690 |
Fair Value Measurement - Valuat
Fair Value Measurement - Valuation Techniques (Details) | 6 Months Ended | |||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jul. 02, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 07, 2019 | |
Fair Value Measurement | ||||||||
Measurement input | 29 | 30 | 29 | 29 | 30 | 30 | 31 | 31 |
Warrant and Derivative Liability, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | |||||||
Warrant and Derivative Liability, Measurement Input [Extensible List] | us-gaap:MeasurementInputDiscountRateMember |
Fair Value Measurement - Roll-f
Fair Value Measurement - Roll-forward of the beginning and ending balance of the Level 3 warrants and derivative liabilities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Rollforward of the beginning and ending balance of the Level 3 warrants and derivative liabilities | ||
Beginning balance | ¥ 1,648,690 | |
Issuance | 328,461 | ¥ 1,240,859 |
Unrealized fair value change loss/(gain) | (272,327) | 504,164 |
Exercise | (1,706,003) | (45,858) |
Expire | (77,739) | |
Translation to reporting currency | ¥ (1,179) | (27,264) |
Ending balance | ¥ 1,648,690 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Measurement | |||
Equity securities without readily determinable fair value, impairment charges | ¥ 0 | ¥ 5,000 | ¥ 0 |
Equity method investments, impairment loss | 0 | 0 | 0 |
Impairment of longlived assets | 292,795 | ||
Impairment recognized for property, plant and equipment | ¥ 30,381 | ¥ 18,066 | ¥ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 26, 2019 | Dec. 19, 2019 |
Capital commitments | |||
Less than One Year | ¥ 233,002 | ||
1-3 Years | 26,232 | ||
Total | 259,234 | ||
Purchase obligations | |||
Less than One Year | 2,547,799 | ||
Total | ¥ 2,547,799 | ||
Disposal by sale | Chongqing Zhizao | |||
Purchase obligations | |||
Equity interest disposed | 100.00% | 100.00% |
Related Party Balances and Tr_3
Related Party Balances and Transactions - Significant related party transactions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Materials | Beijing Yihang | |||
Related Party Balances and Transactions | |||
Purchases from related party | ¥ 58,361 | ¥ 6,914 | ¥ 31 |
R&D service | Beijing Yihang | |||
Related Party Balances and Transactions | |||
Purchases from related party | ¥ 4,368 | 25,106 | 2,412 |
Equipment and installation service | Airx | |||
Related Party Balances and Transactions | |||
Purchases from related party | 1,994 | 3,233 | |
Battery packs and materials | Neolix Technologies | |||
Related Party Balances and Transactions | |||
Sales to related party | ¥ 1,943 | ¥ 3,359 |
Related Party Balances and Tr_4
Related Party Balances and Transactions - Significant related party balances (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Related Party Balances and Transactions | |||
Amount due to related parties | $ 2,943 | ¥ 19,206 | ¥ 9,764 |
Neolix Technologies | |||
Related Party Balances and Transactions | |||
Amount due from related parties | 678 | 1,510 | |
Beijing Yihang | |||
Related Party Balances and Transactions | |||
Amount due to related parties | 19,183 | 9,243 | |
Airx | |||
Related Party Balances and Transactions | |||
Amount due to related parties | ¥ 23 | ¥ 521 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory Reserves [Line Items] | ||
Restricted net assets | ¥ 7,644,467 | ¥ 8,288,297 |
PRC | ||
Statutory Reserves [Line Items] | ||
Required minimum percentage of annual appropriations to general reserve fund or statutory surplus fund | 10.00% | |
PRC | Foreign invested enterprise | General reserve fund | ||
Statutory Reserves [Line Items] | ||
Required minimum percentage of annual appropriations to general reserve fund | 10.00% | |
Maximum percentage of statutory general reserve related to entity's registered capital | 50.00% | |
PRC | Domestic enterprise | Statutory surplus reserve | ||
Statutory Reserves [Line Items] | ||
Required minimum percentage of annual appropriations to statutory surplus fund | 10.00% | |
Maximum percentage of statutory surplus reserve related to entity's registered capital | 50.00% |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information - Condensed balance sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | $ 1,369,861 | ¥ 8,938,341 | ¥ 1,296,215 | |||
Time deposits and short-term investments | 3,019,369 | 19,701,382 | 2,272,653 | |||
Prepayments and other current assets | 54,200 | 353,655 | 812,956 | |||
Total current assets | 4,810,899 | 31,391,109 | 5,065,839 | |||
Non-current assets: | ||||||
Long-term investments | 24,958 | 162,853 | 126,181 | ¥ 177,141 | ¥ 22,514 | |
Total non-current assets | 763,550 | 4,982,167 | 4,447,583 | |||
Total assets | 5,574,449 | 36,373,276 | 9,513,422 | |||
Current liabilities: | ||||||
Accruals and other current liabilities | 99,227 | 647,459 | 867,259 | |||
Warrants and derivative liabilities | 1,648,690 | |||||
Total current liabilities | 660,416 | 4,309,221 | 4,679,720 | |||
Total liabilities | 1,006,846 | 6,569,679 | 4,932,291 | |||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 10,255,662 | 5,199,039 | 3,911,125 | |||
SHAREHOLDERS' DEFICIT | ||||||
Additional paid-in capital | 5,714,907 | 37,289,761 | ||||
Accumulated other comprehensive income/(loss) | (154,041) | (1,005,184) | 15,544 | |||
Accumulated deficit | (993,444) | (6,482,225) | (5,690,240) | |||
Total shareholders' (deficit)/equity | 4,567,603 | 29,803,597 | (5,674,531) | (2,395,775) | (559,091) | |
Total liabilities, mezzanine equity and shareholders' (deficit)/equity | 5,574,449 | 36,373,276 | 9,513,422 | |||
Series Pre-A convertible redeemable preferred shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 434,886 | 175,847 | 175,847 | |||
Series A1 convertible redeemable preferred shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 980,949 | 907,658 | 847,530 | |||
Series A2 convertible redeemable preferred shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 1,074,959 | 1,099,816 | 1,027,497 | |||
Series A3 convertible redeemable preferred shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 619,770 | 676,458 | 631,803 | |||
Series B1 convertible redeemable preferred shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 1,347,607 | 1,621,561 | 1,228,448 | |||
Series B2 convertible redeemable preferred shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 710,303 | 717,699 | ||||
Series B3 convertible redeemable preferred shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 1,551,080 | |||||
Series C Convertible Redeemable Preferred Shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 3,536,108 | |||||
Class A Ordinary Shares | ||||||
SHAREHOLDERS' DEFICIT | ||||||
Class A/B Ordinary shares | 145 | 1,010 | 10 | |||
Class B Ordinary Shares | ||||||
SHAREHOLDERS' DEFICIT | ||||||
Class A/B Ordinary shares | 36 | 235 | 155 | |||
Parent company | Reportable legal entity | ||||||
Current assets: | ||||||
Cash and cash equivalents | 176,149 | 1,149,374 | $ 98,239 | 641,007 | ¥ 45,341 | ¥ 57,376 |
Time deposits and short-term investments | 2,220,087 | 14,486,070 | 493,522 | |||
Amounts due from subsidiaries of the Group | 2,155,609 | 14,065,341 | 4,917,305 | |||
Prepayments and other current assets | 15,205 | |||||
Total current assets | 4,551,845 | 29,700,785 | 6,067,039 | |||
Non-current assets: | ||||||
Investments in subsidiaries, VIEs and VIEs' subsidiaries | 6,553 | 42,754 | 81,077 | |||
Long-term investments | 9,949 | 64,916 | 90,724 | |||
Total non-current assets | 16,502 | 107,670 | 171,801 | |||
Total assets | 4,568,347 | 29,808,455 | 6,238,840 | |||
Current liabilities: | ||||||
Accruals and other current liabilities | 744 | 4,858 | 9,019 | |||
Warrants and derivative liabilities | 1,648,690 | |||||
Total current liabilities | 744 | 4,858 | 1,657,709 | |||
Total liabilities | 744 | 4,858 | 1,657,709 | |||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 10,255,662 | |||||
SHAREHOLDERS' DEFICIT | ||||||
Additional paid-in capital | 5,714,907 | 37,289,761 | ||||
Accumulated other comprehensive income/(loss) | (154,041) | (1,005,184) | 15,544 | |||
Accumulated deficit | (993,444) | (6,482,225) | (5,690,240) | |||
Total shareholders' (deficit)/equity | 4,567,603 | 29,803,597 | (5,674,531) | |||
Total liabilities, mezzanine equity and shareholders' (deficit)/equity | 4,568,347 | 29,808,455 | 6,238,840 | |||
Parent company | Reportable legal entity | Series Pre-A convertible redeemable preferred shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 434,886 | |||||
Parent company | Reportable legal entity | Series A1 convertible redeemable preferred shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 980,949 | |||||
Parent company | Reportable legal entity | Series A2 convertible redeemable preferred shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 1,074,959 | |||||
Parent company | Reportable legal entity | Series A3 convertible redeemable preferred shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 619,770 | |||||
Parent company | Reportable legal entity | Series B1 convertible redeemable preferred shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 1,347,607 | |||||
Parent company | Reportable legal entity | Series B2 convertible redeemable preferred shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 710,303 | |||||
Parent company | Reportable legal entity | Series B3 convertible redeemable preferred shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 1,551,080 | |||||
Parent company | Reportable legal entity | Series C Convertible Redeemable Preferred Shares | ||||||
MEZZANINE EQUITY | ||||||
Total mezzanine equity | 3,536,108 | |||||
Parent company | Reportable legal entity | Class A Ordinary Shares | ||||||
SHAREHOLDERS' DEFICIT | ||||||
Class A/B Ordinary shares | 145 | 1,010 | 10 | |||
Parent company | Reportable legal entity | Class B Ordinary Shares | ||||||
SHAREHOLDERS' DEFICIT | ||||||
Class A/B Ordinary shares | $ 36 | ¥ 235 | ¥ 155 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information - Condensed statements of comprehensive loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Operating expenses: | ||||
Selling, general and administrative | $ (171,467) | ¥ (1,118,819) | ¥ (689,379) | ¥ (337,200) |
Total operating expenses | (340,027) | (2,218,676) | (1,858,519) | (1,130,917) |
Loss from operations | (102,581) | (669,337) | (1,858,614) | (1,130,917) |
Other (expense)/income | ||||
Interest income | 6,332 | 41,316 | 30,256 | 3,582 |
Interest expense | 10,255 | 66,916 | 83,667 | 63,467 |
Equity in loss of subsidiaries, VIEs and VIEs' subsidiaries | (386) | (2,520) | (162,725) | (35,826) |
Change in fair value of warrants and derivative liabilities | (41,736) | (272,327) | 426,425 | |
Investment (loss)/income, net | 32,736 | 213,600 | 49,375 | 68,135 |
Foreign exchange loss | (1,030) | (6,719) | 31,977 | (3,726) |
Others, net | 4,501 | 29,372 | 1,949 | (3,077) |
Loss before income tax expense | (28,947) | (188,877) | (2,417,874) | (1,165,296) |
Income tax benefit | (3,501) | (22,847) | ||
Net loss | (23,243) | (151,657) | (2,438,536) | (1,532,318) |
Accretion on convertible redeemable preferred shares to redemption value | (99,799) | (651,190) | (743,100) | (317,320) |
Deemed dividend to preferred shareholders upon extinguishment, net (Note 23) | (217,362) | |||
Effect of exchange rate changes on convertible redeemable preferred shares | 1,665 | 10,862 | 117,391 | |
Net loss attributable to ordinary shareholders of Li Auto Inc. | (121,377) | (791,985) | (3,281,607) | (1,849,638) |
Net loss | (23,243) | (151,657) | (2,438,536) | (1,532,318) |
Other comprehensive income/(loss), net of tax | ||||
Foreign currency translation adjustment, net of tax | (156,423) | (1,020,728) | 2,851 | 12,954 |
Total comprehensive loss, net of tax | (179,666) | (1,172,385) | (2,435,685) | (1,519,364) |
Parent company | Reportable legal entity | ||||
Operating expenses: | ||||
Selling, general and administrative | (1,444) | (9,424) | (5,114) | (14,643) |
Total operating expenses | (1,444) | (9,424) | (5,114) | (14,643) |
Loss from operations | (1,444) | (9,424) | (5,114) | (14,643) |
Other (expense)/income | ||||
Interest income | 685 | 4,467 | 20,505 | 598 |
Interest expense | (9,332) | |||
Equity in loss of subsidiaries, VIEs and VIEs' subsidiaries | (79,708) | (520,093) | (2,031,371) | (1,487,183) |
Change in fair value of warrants and derivative liabilities | 41,736 | 272,327 | (426,425) | |
Investment (loss)/income, net | 16,371 | 106,823 | 14,880 | (28,780) |
Foreign exchange loss | (898) | (5,861) | (1,084) | (2,310) |
Others, net | 15 | 104 | (595) | |
Loss before income tax expense | (23,243) | (151,657) | (2,438,536) | (1,532,318) |
Net loss | (23,243) | (151,657) | (2,438,536) | (1,532,318) |
Accretion on convertible redeemable preferred shares to redemption value | (99,799) | (651,190) | (743,100) | (317,320) |
Deemed dividend to preferred shareholders upon extinguishment, net (Note 23) | (217,362) | |||
Effect of exchange rate changes on convertible redeemable preferred shares | 1,665 | 10,862 | 117,391 | |
Net loss attributable to ordinary shareholders of Li Auto Inc. | (121,377) | (791,985) | (3,281,607) | (1,849,638) |
Net loss | (23,243) | (151,657) | (2,438,536) | (1,532,318) |
Other comprehensive income/(loss), net of tax | ||||
Foreign currency translation adjustment, net of tax | (156,423) | (1,020,728) | 2,851 | 12,954 |
Total comprehensive loss, net of tax | $ (179,666) | ¥ (1,172,385) | ¥ (2,435,685) | ¥ (1,519,364) |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information - Condensed statements of cash flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net cash provided by operating activities | $ 481,196 | ¥ 3,139,804 | ¥ (1,793,710) | ¥ (1,346,805) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of long-term investments | (9,962) | (65,000) | (98,000) | (213,303) |
Placement of time deposits | (159,083) | (1,038,017) | (1,725,148) | |
Withdraw of time deposit | 92,256 | 601,968 | 1,265,877 | |
Placement of short-term investments | (16,134,783) | (105,279,461) | (7,998,736) | (5,737,600) |
Withdraw of short-term investments | 13,440,487 | 87,699,180 | 7,020,989 | 7,278,670 |
Net cash used in investing activities | (2,871,683) | (18,737,725) | (2,574,836) | (191,512) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of convertible promissory note | 168,070 | 150,000 | ||
Proceeds from IPO and concurrent private placements, net of issuance cost | 1,691,139 | 11,034,685 | ||
Proceeds from follow-on offering, net of issuance cost | 1,531,181 | 9,990,955 | ||
Net cash provided by financing activities | 3,787,080 | 24,710,697 | 5,655,690 | 1,108,658 |
Cash, cash equivalents at beginning of the year | 1,296,215 | |||
Cash, cash equivalents at end of the year | 1,369,861 | 8,938,341 | 1,296,215 | |
Parent company | Reportable legal entity | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net cash provided by operating activities | 16,852 | 109,961 | 26,492 | 224,318 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Payments to, and investments in subsidiaries, VIEs and VIEs' subsidiaries | (1,533,623) | (10,006,889) | (4,384,396) | (1,099,424) |
Purchase of long-term investments | (100,303) | |||
Placement of time deposits | (1,725,148) | |||
Withdraw of time deposit | 71,039 | 463,527 | 1,265,877 | |
Placement of short-term investments | (11,550,511) | (75,367,086) | (35,157) | |
Withdraw of short-term investments | 9,264,740 | 60,452,428 | ||
Net cash used in investing activities | (3,748,355) | (24,458,020) | (4,878,824) | (1,199,727) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs | 590,197 | 3,851,034 | 5,254,333 | 958,658 |
Proceeds from issuance of convertible promissory note | 168,070 | |||
Proceeds from IPO and concurrent private placements, net of issuance cost | 1,691,139 | 11,034,685 | ||
Proceeds from follow-on offering, net of issuance cost | 1,531,181 | 9,990,955 | ||
Net cash provided by financing activities | 3,812,517 | 24,876,674 | 5,422,403 | 958,658 |
Effects of exchange rate changes on cash and cash equivalents | (3,104) | (20,248) | 25,595 | 4,716 |
Net (decrease)/increase in cash, cash equivalents | 77,910 | 508,367 | 595,666 | (12,035) |
Cash, cash equivalents at beginning of the year | 98,239 | 641,007 | 45,341 | 57,376 |
Cash, cash equivalents at end of the year | $ 176,149 | ¥ 1,149,374 | ¥ 641,007 | ¥ 45,341 |
Subsequent Event (Details)
Subsequent Event (Details) | 1 Months Ended |
Mar. 31, 2021shares | |
Subsequent Event | 2021 Share Incentive Plan | Class B Ordinary Shares | Mr. Xiang Li | |
Subsequent Event [Line Items] | |
Granted (in shares) | 108,557,400 |