Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
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, 2021 |
Entity File Number | 001-39407 |
Entity Registrant Name | Li Auto Inc. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 11 Wenliang Street |
Entity Address, Adress Line Two | Shunyi District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 101399 |
Entity Address, Country | CN |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Beijing, the People’s Republic of China |
Entity Central Index Key | 0001791706 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 11 Wenliang Street |
Entity Address, Adress Line Two | Shunyi District |
Contact Personnel Name | Tie Li |
Contact Personnel Email Address | ir@lixiang.com |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 101399 |
Entity Address, Country | CN |
Country Region | 86 |
City Area Code | 10 |
Local Phone Number | 8742-7209 |
American depository shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares, each representing two Class A ordinary shares, par value US$0.0001 per share |
Trading Symbol | LI |
Security Exchange Name | NASDAQ |
Class A Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,682,307,746 |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 27,854,224 | $ 4,370,936 | ¥ 8,938,341 |
Restricted cash | 2,638,840 | 414,092 | 1,234,178 |
Time deposits and short-term investments | 19,668,239 | 3,086,376 | 19,701,382 |
Trade receivable, net of allowance for credit losses of nil, and RMB467 as of December 31, 2020 and 2021, respectively | 120,541 | 18,916 | 115,549 |
Inventories | 1,617,890 | 253,882 | 1,048,004 |
Prepayments and other current assets, net of allowance for credit losses of nil, and RMB2,192 as of December 31, 2020 and 2021, respectively | 480,680 | 75,429 | 353,655 |
Total current assets | 52,380,414 | 8,219,631 | 31,391,109 |
Non-current assets: | |||
Long-term investments | 156,306 | 24,528 | 162,853 |
Property, plant and equipment, net | 4,498,269 | 705,877 | 2,478,687 |
Operating lease right-of-use assets, net | 2,061,492 | 323,493 | 1,277,006 |
Intangible assets, net | 751,460 | 117,920 | 683,281 |
Other noncurrent assets, net of allowance for credit losses of nil, and RMB3,757 as of December 31, 2020 and 2021, respectively | 1,981,076 | 310,872 | 321,184 |
Deferred tax assets | 19,896 | 3,122 | 59,156 |
Total non-current assets | 9,468,499 | 1,485,812 | 4,982,167 |
Total assets | 61,848,913 | 9,705,443 | 36,373,276 |
Current liabilities: | |||
Short-term borrowings | 37,042 | 5,813 | |
Trade and notes payable | 9,376,050 | 1,471,307 | 3,160,515 |
Amounts due to related parties | 37,455 | 5,878 | 19,206 |
Deferred revenue, current | 305,092 | 47,876 | 271,510 |
Operating lease liabilities, current | 473,245 | 74,262 | 210,531 |
Accruals and other current liabilities | 1,879,368 | 294,914 | 647,459 |
Total current liabilities | 12,108,252 | 1,900,050 | 4,309,221 |
Noncurrent liabilities: | |||
Long-term borrowings | 5,960,899 | 935,395 | 511,638 |
Deferred revenue, noncurrent | 389,653 | 61,145 | 135,658 |
Operating lease liabilities, noncurrent | 1,369,825 | 214,955 | 1,025,253 |
Finance lease liabilities, noncurrent | 366,883 | ||
Deferred tax liabilities | 153,723 | 24,122 | 36,309 |
Other noncurrent liabilities | 802,259 | 125,891 | 184,717 |
Total noncurrent liabilities | 8,676,359 | 1,361,508 | 2,260,458 |
Total liabilities | 20,784,611 | 3,261,558 | 6,569,679 |
Commitments and contingencies (Note 29) | |||
SHAREHOLDERS' EQUITY | |||
Treasury Shares | (89) | (14) | |
Additional paid-in capital | 49,390,486 | 7,750,445 | 37,289,761 |
Accumulated other comprehensive loss | (1,521,871) | (238,815) | (1,005,184) |
Accumulated deficit | (6,805,635) | (1,067,953) | (6,482,225) |
Total shareholders' equity | 41,064,302 | 6,443,885 | 29,803,597 |
Total liabilities and shareholders' equity | 61,848,913 | 9,705,443 | 36,373,276 |
Class A Ordinary Shares | |||
SHAREHOLDERS' EQUITY | |||
Ordinary shares | 1,176 | 185 | 1,010 |
Class B Ordinary Shares | |||
SHAREHOLDERS' EQUITY | |||
Ordinary shares | ¥ 235 | $ 37 | ¥ 235 |
CONSOLIDATED BALANCE SHEETS(Par
CONSOLIDATED BALANCE SHEETS(Parentheticals) ¥ in Thousands | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021$ / shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020$ / shares |
Accounts receivable, allowance for credit loss | ¥ | ¥ 467 | ¥ 0 | ||
Prepayments and other current assets, allowance for credit losses | ¥ | 2,192 | 0 | ||
Other noncurrent assets, allowance for credit losses | ¥ | ¥ 3,757 | ¥ 0 | ||
Ordinary shares, shares issued | 1,929,562,426 | 1,809,288,310 | ||
Ordinary shares, shares outstanding | 1,929,562,426 | 1,809,288,310 | ||
Class A Ordinary Shares | ||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 4,500,000,000 | 4,000,000,000 | ||
Ordinary shares, shares issued | 1,709,903,330 | 1,453,476,230 | ||
Ordinary shares, shares outstanding | 1,573,750,346 | 1,453,476,230 | ||
Class B Ordinary Shares | ||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | ||
Ordinary shares, shares issued | 355,812,080 | 355,812,080 | ||
Ordinary shares, shares outstanding | 355,812,080 | 355,812,080 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Revenues: | ||||
Total revenues | ¥ 27,009,779 | $ 4,238,424 | ¥ 9,456,609 | ¥ 284,367 |
Cost of sales: | ||||
Total cost of sales | (21,248,325) | (3,334,326) | (7,907,270) | (284,462) |
Gross (loss)/profit | 5,761,454 | 904,098 | 1,549,339 | (95) |
Operating expenses: | ||||
Research and development | (3,286,389) | (515,706) | (1,099,857) | (1,169,140) |
Selling, general and administrative | (3,492,385) | (548,031) | (1,118,819) | (689,379) |
Total operating expenses | (6,778,774) | (1,063,737) | (2,218,676) | (1,858,519) |
Loss from operations | (1,017,320) | (159,639) | (669,337) | (1,858,614) |
Other (expense)/income | ||||
Interest expense | (63,244) | (9,924) | (66,916) | (83,667) |
Interest income and investment income, net | 740,432 | 116,190 | 254,916 | 79,631 |
Changes in fair value of warrants and derivative liabilities | 272,327 | (426,425) | ||
Others, net | 187,320 | 29,395 | 20,133 | (128,799) |
(Loss)/Income before income tax expenses | (152,812) | (23,978) | (188,877) | (2,417,874) |
Income tax benefit/(expense) | 168,643 | 26,464 | (22,847) | |
Net (loss)/income from continuing operations | (321,455) | (50,442) | (166,030) | (2,417,874) |
Net (loss)/income from discontinued operations, net of tax | 14,373 | (20,662) | ||
Net loss | (321,455) | (50,442) | (151,657) | (2,438,536) |
Accretion on convertible redeemable preferred shares to redemption value | 0 | (651,190) | (743,100) | |
Deemed dividend to preferred shareholders upon extinguishment, net | (217,362) | |||
Effect of exchange rate changes on convertible redeemable preferred shares | 10,862 | 117,391 | ||
Net loss attributable to ordinary shareholders of Li Auto Inc. | (321,455) | (50,442) | (791,985) | (3,281,607) |
Including: Net loss from continuing operations attributable to ordinary shareholders | ¥ (321,455) | $ (50,442) | (806,358) | (3,260,945) |
Net (loss)/income from discontinued operations attributable to ordinary shareholders | ¥ 14,373 | ¥ (20,662) | ||
Weighted average number of ordinary shares used in computing net loss per share - Basic | ||||
Basic | shares | 1,853,320,448 | 1,853,320,448 | 870,003,278 | 255,000,000 |
Weighted average number of ordinary shares used in computing net loss per share - Diluted | ||||
Diluted | shares | 1,853,320,448 | 1,853,320,448 | 870,003,278 | 255,000,000 |
Net (loss)/income per share attributable to ordinary shareholders - Basic | ||||
Continuing operations | (per share) | ¥ (0.17) | $ (0.03) | ¥ (0.93) | ¥ (12.79) |
Discontinued operations | ¥ / shares | 0.02 | (0.08) | ||
Net loss per share | (per share) | (0.17) | (0.03) | (0.91) | (12.87) |
Net (loss)/income per share attributable to ordinary shareholders - Diluted | ||||
Continuing operations | (per share) | (0.17) | (0.03) | (0.93) | (12.79) |
Discontinued operations | ¥ / shares | 0.02 | (0.08) | ||
Net loss per share | (per share) | ¥ (0.17) | $ (0.03) | ¥ (0.91) | ¥ (12.87) |
Net loss | ¥ (321,455) | $ (50,442) | ¥ (151,657) | ¥ (2,438,536) |
Other comprehensive income/(loss), net of tax | ||||
Foreign currency translation adjustment, net of tax | (516,687) | (81,079) | (1,020,728) | 2,851 |
Total other comprehensive income/(loss), net of tax | (516,687) | (81,079) | (1,020,728) | 2,851 |
Total comprehensive loss, net of tax | (838,142) | (131,521) | (1,172,385) | (2,435,685) |
Accretion on convertible redeemable preferred shares to redemption value | 0 | (651,190) | (743,100) | |
Deemed dividend to preferred shareholders upon extinguishment, net | (217,362) | |||
Effect of exchange rate changes on convertible redeemable preferred shares | 10,862 | 117,391 | ||
Comprehensive loss attributable to ordinary shareholders of Li Auto Inc. | (838,142) | (131,521) | (1,812,713) | (3,278,756) |
Vehicle sales | ||||
Revenues: | ||||
Total revenues | 26,128,469 | 4,100,127 | 9,282,703 | 280,967 |
Cost of sales: | ||||
Total cost of sales | (20,755,578) | (3,257,003) | (7,763,628) | (279,555) |
Other sales and services | ||||
Revenues: | ||||
Total revenues | 881,310 | 138,297 | 173,906 | 3,400 |
Cost of sales: | ||||
Total cost of sales | ¥ (492,747) | $ (77,323) | ¥ (143,642) | ¥ (4,907) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/DEFICIT ¥ in Thousands, $ in Thousands | Treasury SharesCNY (¥)shares | 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 SharesCNY (¥)shares | Additional Paid-in CapitalIPO and concurrent private placementCNY (¥) | Additional Paid-in CapitalFollow-on offeringCNY (¥) | Additional Paid-in CapitalCNY (¥) | Accumulated Other Comprehensive Income/(Loss)CNY (¥) | Accumulated DeficitCumulative effect of adoption of credit loss guidanceCNY (¥) | Accumulated DeficitCNY (¥) | Cumulative effect of adoption of credit loss guidanceCNY (¥) | Class A Ordinary Sharesshares | Class B Ordinary Sharesshares | IPO and concurrent private placementCNY (¥) | Follow-on offeringCNY (¥) | CNY (¥)shares | USD ($)shares |
Balance at the beginning of period at Dec. 31, 2018 | ¥ 10 | ¥ 155 | ¥ 12,693 | ¥ (2,408,633) | ¥ (2,395,775) | |||||||||||||
Balance at the beginning of period (in shares) at Dec. 31, 2018 | shares | 15,000,000 | 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 | (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 | ||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY | ||||||||||||||||||
Accretion on convertible redeemable preferred shares to redemption value | (651,190) | (651,190) | ||||||||||||||||
Effect of exchange rate changes on convertible redeemable preferred shares | 10,862 | 10,862 | ||||||||||||||||
Foreign currency translation adjustment, net of tax | (1,020,728) | (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 | ¥ 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 | 115,812,080 | ||||||||||||||||
Exercise of conversion features of preferred shares upon the consummation of US IPO | 1,400,670 | 1,400,670 | ||||||||||||||||
Share-based compensation | 142,795 | 142,795 | ||||||||||||||||
Net loss | (151,657) | (151,657) | ||||||||||||||||
Balance at the end of period at Dec. 31, 2020 | ¥ 1,010 | ¥ 235 | 37,289,761 | (1,005,184) | ¥ (1,955) | (6,482,225) | ¥ (1,955) | ¥ 29,803,597 | ||||||||||
Balance at the end of period (in shares) at Dec. 31, 2020 | shares | 1,453,476,230 | 355,812,080 | 1,453,476,230 | 355,812,080 | 1,809,288,310 | 1,809,288,310 | ||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY | ||||||||||||||||||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 0 | |||||||||||||||||
Foreign currency translation adjustment, net of tax | (516,687) | (516,687) | $ (81,079) | |||||||||||||||
Share issuance, net of issuance costs | ¥ 74 | 10,995,213 | ¥ 10,995,287 | |||||||||||||||
Share issuance, net of issuance costs (in shares) | shares | 113,869,700 | |||||||||||||||||
Issuance of ordinary shares as treasury shares | ¥ (22) | ¥ 22 | ||||||||||||||||
Issuance of ordinary shares as treasury shares ( Shares) | shares | (34,000,000) | 34,000,000 | 6,404,416 | 6,404,416 | ||||||||||||||
Issuance of ordinary shares for granting Award Shares to CEO | ¥ (70) | ¥ 70 | 70 | ¥ 70 | ||||||||||||||
Issuance of ordinary shares for granting Award Shares to CEO (Shares) | shares | (108,557,400) | 108,557,400 | ||||||||||||||||
Exercise of share options | ¥ 3 | 4,086 | 4,089 | |||||||||||||||
Exercise of share options (Shares) | shares | 6,404,416 | |||||||||||||||||
Share-based compensation | 1,101,356 | 1,101,356 | ||||||||||||||||
Net loss | (321,455) | (321,455) | $ (50,442) | |||||||||||||||
Balance at the end of period at Dec. 31, 2021 | ¥ (89) | ¥ 1,176 | ¥ 235 | ¥ 49,390,486 | ¥ (1,521,871) | ¥ (6,805,635) | ¥ 41,064,302 | $ 6,443,885 | ||||||||||
Balance at the end of period (in shares) at Dec. 31, 2021 | shares | (136,152,984) | 1,709,903,330 | 355,812,080 | 1,709,903,330 | 355,812,080 | 1,929,562,426 | 1,929,562,426 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net loss | ¥ (321,455) | $ (50,442) | ¥ (151,657) | ¥ (2,438,536) |
Net income/(loss) from discontinued operations, net of tax | (14,373) | 20,662 | ||
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | ||||
Depreciation and amortization | 590,397 | 92,646 | 320,996 | 116,391 |
Share-based compensation expenses | 1,101,356 | 172,827 | 142,795 | |
Foreign exchange (gain)/loss | 46,593 | 7,311 | 3,710 | (31,977) |
Unrealized investment loss/(income) | 13,797 | 2,165 | (33,008) | 13,221 |
Interest expense | 60,628 | 9,514 | 65,249 | 83,667 |
Share of loss of equity method investees | 83 | 13 | 2,520 | 162,725 |
Impairment loss related to property, plant and equipment and loss on inventory obsolescence | 38,163 | 5,989 | 30,381 | 18,066 |
Allowance for credit losses | 6,415 | 1,007 | 0 | 0 |
Changes in fair value of warrants and derivative liabilities | (272,327) | 426,425 | ||
Deferred income tax, net | 168,643 | 26,464 | (22,847) | |
Loss on disposal of property, plant and equipment | 19,843 | 3,114 | 379 | 602 |
Changes in operating assets and liabilities: | ||||
Prepayments and other current assets | (99,421) | (15,601) | 459,301 | (442,745) |
Inventories | (611,557) | (95,967) | (516,867) | (510,546) |
Operating lease rightofuse assets | (675,322) | (105,973) | (766,779) | (144,693) |
Operating lease liabilities | 695,940 | 109,208 | 817,149 | 153,415 |
Other non-current assets | (633,307) | (99,380) | 1,656 | 8,512 |
Trade receivable | (5,459) | (857) | (107,246) | (8,303) |
Deferred revenue | 287,577 | 45,127 | 344,530 | 62,638 |
Trade and notes payable | 6,213,265 | 974,995 | 2,530,350 | 602,276 |
Amounts due to related parties | (11,751) | (1,844) | 9,442 | 4,017 |
Accruals and other current liabilities | 932,119 | 146,270 | 131,111 | 116,349 |
Other noncurrent liabilities | 523,838 | 82,202 | 165,191 | 5,519 |
Net cash (used in)/provided by continuing operating activities | 8,340,385 | 1,308,788 | 3,139,656 | (1,782,315) |
Net cash (used in)/provided by discontinued operating activities | 148 | (11,395) | ||
Net cash (used in)/provided by operating activities | 8,340,385 | 1,308,788 | 3,139,804 | (1,793,710) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of property, plant and equipment and intangible assets | (3,444,573) | (540,529) | (675,187) | (952,901) |
Disposal of property, plant and equipment | 38 | 6 | 535 | 1,648 |
Purchase of long-term investments | (65,000) | (98,000) | ||
Placement of time deposits | (1,308,296) | (205,300) | (1,038,017) | (1,725,148) |
Redemption of time deposits | 1,630,773 | 255,904 | 601,968 | 1,265,877 |
Placement of short-term investments | (220,850,351) | (34,656,239) | (105,279,461) | (7,998,736) |
Redemption of short-term investments | 220,345,863 | 34,577,074 | 87,699,180 | 7,020,989 |
Loan to a supplier | (6,000) | (8,000) | ||
Collection of loan principal from Lifan Holdings | 490,000 | |||
Net cash used in continuing investing activities | (4,257,244) | (668,054) | (18,797,430) | (2,564,271) |
Net cash (used in)/provided by discontinued investing activities | 59,705 | (10,565) | ||
Net cash used in investing activities | (4,257,244) | (668,054) | (18,737,725) | (2,574,836) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from borrowings | 600,000 | 94,153 | 233,287 | |
Repayment of short-term borrowings | (144,700) | |||
Repayment of unsecured corporate loan | (429,692) | (67,428) | ||
Proceeds from collection of receivables from holders of Series B2 convertible redeemable preferred shares | 101,200 | |||
Payment of convertible redeemable preferred shares issuance costs | (3,791) | |||
Proceeds from issuance of convertible debts | 5,533,238 | 868,286 | 168,070 | |
Proceeds from US IPO and concurrent private placements, net of issuance cost | 11,034,685 | |||
Proceeds from HK IPO, net of issuance cost | 11,004,778 | 1,726,889 | ||
Proceeds from exercise of share options | 1,139 | 179 | ||
Proceeds from issuance of ordinary shares | 70 | 11 | ||
Proceeds from follow-on offering, net of issuance cost | 9,990,955 | |||
Net cash provided by continuing financing activities | 16,709,533 | 2,622,090 | 24,710,697 | 5,655,690 |
Net cash provided by financing activities | 16,709,533 | 2,622,090 | 24,710,697 | 5,655,690 |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (472,129) | (74,086) | (376,646) | 53,722 |
Net increase in cash, cash equivalents and restricted cash | 20,320,545 | 3,188,738 | 8,736,130 | 1,340,866 |
Cash, cash equivalents and restricted cash at beginning of the year | 10,172,519 | 1,596,290 | 1,436,389 | 95,523 |
Cash, cash equivalents and restricted cash at end of the year | 30,493,064 | 4,785,028 | 10,172,519 | 1,436,389 |
Supplemental schedule of noncash investing and financing activities | ||||
Payable related to acquisition of Chongqing Zhizao | (2,000) | (314) | (79,552) | (115,000) |
Payable related to purchase of property, plant and equipment | (456,395) | (71,618) | (118,181) | (403,761) |
Payables for issuance costs | (20,929) | |||
Changzhou Chehejin | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Cash paid related to acquisition, net of cash acquired | (563,118) | (88,365) | ||
Chongqing Zhizao | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Cash paid related to acquisition, net of cash acquired | ¥ (67,580) | $ (10,605) | (35,448) | (560,000) |
Series B3 convertible redeemable preferred shares | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of convertible redeemable preferred shares | 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 | |||
Series D Convertible Redeemable Preferred Shares | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of convertible redeemable preferred shares | ¥ 3,829,757 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
Cash, cash equivalents and restricted cash at end of the year | ¥ 30,493,064 | $ 4,785,028 | ¥ 10,172,519 | $ 1,596,290 | ¥ 1,436,389 | ¥ 95,523 |
Less: Cash, cash equivalents and restricted cash of discontinued operations at end of the year | 147 | |||||
Cash, cash equivalents and restricted cash of continuing operations at end of the year | ¥ 30,493,064 | $ 4,785,028 | ¥ 10,172,519 | ¥ 1,436,242 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2021 | |
Organization and Nature of Operations | |
Organization and Nature of Operations | 1. Organization and Nature of Operations (a) Principal activities 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) History of the Group and basis of presentation for the Reorganization 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 “2019 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 2019 Reorganization. All 2019 Reorganization related contracts were signed by all relevant parties on July 2, 2019, and all administrative procedures of the 2019 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 2019 Reorganization, even though no single investor controlled Beijing CHJ or Li Auto, the transaction of the 2019 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)/equity, 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 2019 Reorganization. Accordingly, the effect of the ordinary shares and the preferred shares issued by the Company pursuant to the 2019 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. 1. Organization and Nature of Operations (Continued) In preparation for the Listing on the main board of the Stock Exchange of Hong Kong Limited (“HKEx”), the Group underwent reorganization of its corporate structure (the “2021 Reorganization”) in the second quarter of 2021. The major reorganization steps are described as follows: ● In accordance with the requirements under the Listing Decision LD43-3 of HKEx to the extent practicable, the Company underwent reorganization of the holding structure of its onshore subsidiaries and consolidated affiliated entities. The 2021 Reorganization mainly involved changing certain consolidated affiliated entities controlled through contractual arrangements to wholly owned or partly-owned subsidiaries of the Company, to the extent permitted under the relevant PRC laws and regulations. Please refer to Note 1 (b) (i) and (ii). ● In April, 2021, the certain new contractual arrangements were entered into to replace the original contractual arrangements in place before the completion of 2021 Reorganization. The transactions of 2021 Reorganization was accounted for a common control transaction within the Group. The financial information of the Group at the consolidation level does not have a material impact accordingly. The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries, consolidated VIEs and VIEs’ subsidiaries. 1. Organization and Nature of Operations (Continued) As of December 31, 2021, 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 Notes 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 Beijing Leading Automobile Sales Co., Ltd.(“Beijing Leading”) 100 % August 6, 2019 Beijing, PRC Sales and after sales management Jiangsu Xindian Interactive Sales and Services Co., Ltd. (“Jiangsu XD”) 100 % May 08, 2017 Changzhou, PRC Sales and after sales management (i) Jiangsu CHJ Automobile Co., Ltd. (“Jiangsu CHJ”) 100 % June 23, 2016 Changzhou, PRC Purchase of manufacturing equipment (i) Lixiang Zhizao Automobile Sales & Services (Beijing) Co., Ltd 100 % July 13, 2018 Beijing, PRC Sales and after sales management (i) Lixiang Zhixing Automobile Sales & Services (Shanghai) Co., Ltd 100 % April 12, 2019 Shanghai, PRC Sales and after sales management (i) Lixiang Zhizao Automobile Sales & Services (Chengdu) Co., Ltd 100 % July 9, 2018 Chengdu, PRC Sales and after sales management (i) Date of Incorporation Place of Incorporation Principal Activities Notes VIEs Beijing CHJ Information Technology Co., Ltd. (“Beijing CHJ”) April 10, 2015 Beijing, PRC Technology development Beijing Xindian Transport Information Technology Co., Ltd. (“Xindian Information”) March 27, 2017 Beijing, PRC Technology development VIEs’ subsidiary Chongqing Lixiang Automobile Co., Ltd. (“Chongqing Lixiang Automobile”) October 11, 2019 Chongqing, PRC Manufacturing of automobile (ii) Notes: (i) All the subsidiaries were VIE’s subsidiaries before the 2021 Reorganization. (ii) Upon the completion of 2021 Reorganization, Beijing CHJ and Leading Ideal HK’s subsidiary each held 50% of equity interest of Chongqing Lixiang Automobile which was previously a wholly owned subsidiary of Beijing CHJ. 1. Organization and Nature of Operations (Continued) (c) Variable interest entity 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 Agreements entered into in April 2021 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. 1. Organization and Nature of Operations (Continued) Exclusive Consultation and Service Agreements. Pursuant to the Exclusive Consultation and Service Agreement entered into in April 2021 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, after making up losses from previous years, 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. In April 2021, Wheels Technology, Xindian Information, and each of the shareholders of Xindian Information entered into an exclusive consultation and service agreement, which 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 entered into in April 2021 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. In April 2021, Wheels Technology, Xindian Information, and each of the shareholders of Xindian Information entered into an equity option agreement, which includes terms substantially similar to the equity option agreement relating to Beijing CHJ described above. Equity Pledge Agreements. Pursuant to the Equity Pledge Agreement entered into in April 2021 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. 1. Organization and Nature of Operations (Continued) In April 2021, Wheels Technology, Xindian Information, and each of 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. The registration of the equity pledge relating to Beijing CHJ and Xindian Information with the competent office of the SAMR in accordance with the PRC Property Law has been completed. (d) Risks in relations to the VIE structure 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. Pursuant to the 2021 Negative List, foreign investors are not allowed to own more than 50% of the equity interests in a value-added telecommunication service provider (excluding e-commerce, domestic multiparty communications, store-and-forward, and call centers). In addition, foreign investors are prohibited from investing in companies engaging in internet culture businesses (except for music) and radio and television program production businesses. 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. 1. Organization and Nature of Operations (Continued) If the Company’s ownership structure, contractual arrangements, and businesses of the Company’s PRC subsidiaries or VIEs are found to be in violation of any existing or future PRC laws or regulations, or PRC subsidiaries or VIEs fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion to take action in dealing with such violations or failures, including: ● revoke the business licenses and/or operating licenses of such entities; ● shut down our servers or blocking the website or mobile application, or 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 enforceability, and therefore the benefits, of the contractual agreements between the Company and the VIE depend on nominee shareholders enforcing the contracts. There is a risk that nominee shareholders of the VIEs, who in some cases are also shareholders of the Company, may have conflicts of interest with the Company in the future or fails to perform their contractual obligations. Given the significance and importance of the VIEs, there would be a significant negative impact to the Company if these contracts were not enforced. The Group’s operations depend on the VIEs to honour their contractual agreements with the Group and the Company’s ability to control the VIEs also depends on the authorization by the shareholders of the VIEs to exercise voting rights on all matters requiring shareholder approval in the VIEs. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable and the possibility that it will no longer be able to control and consolidate the VIEs as a result of the aforementioned risks and uncertainties is remote. 1. Organization and Nature of Operations (Continued) The following consolidated financial information of the Group’s VIEs and VIEs’ subsidiaries as of December 31, 2020 and 2021 and for the years ended December 31, 2019, 2020 and 2021 were included in the accompanying Group’s consolidated financial statements as follows: As of December 31, 2020 2021 RMB RMB Current assets: Cash and cash equivalents 1,546,193 5,311,800 Restricted cash 1,234,178 2,415,941 Time deposits and short-term investments 2,581,690 8,326,541 Trade receivable 103,271 103,056 Amounts due from the Group companies 7,704,630 23,402,104 Inventories 271,379 1,396,992 Prepayments and other current assets 254,061 220,402 Non ‑ current assets: Investment in subsidiaries 609,748 — Long‑term investments 97,937 97,854 Property, plant and equipment, net 2,335,824 2,329,507 Operating lease right‑of‑use assets, net 1,182,134 731,874 Intangible assets, net 682,083 703,274 Other non‑current assets 218,531 1,107,674 Total assets 18,821,659 46,147,019 Current liabilities: Short‑term borrowings — 31,547 Trade and notes payable 3,107,646 8,547,181 Amounts due to the Group companies 12,203,705 31,999,140 Amounts due to related parties 19,206 1,277 Operating lease liabilities, current 170,033 80,606 Deferred revenue, current 230,720 — Accruals and other current liabilities 453,731 515,036 Non ‑ current liabilities: Long-term borrowings 511,638 479,453 Deferred revenue, non‑current 102,898 8,704 Operating lease liabilities, non‑current 973,455 719,628 Finance lease liabilities, non‑current 366,883 — Deferred tax liabilities, non-current 36,309 153,723 Other non‑current liabilities 157,907 14,333 Total liabilities 18,334,131 42,550,628 Total shareholders’ equity 487,528 3,596,391 Total liabilities and shareholders’ equity 18,821,659 46,147,019 These balances have been reflected in the Group’s consolidated financial statements with intercompany transactions eliminated. 1. Organization and Nature of Operations (Continued) For the Year Ended December 31, 2019 2020 2021 Third-party revenues 284,367 8,001,067 6,294,675 Inter-company revenues 974,313 8,553,798 22,287,788 Third-party cost (284,462) (7,790,586) (20,171,861) Inter-company cost (352,672) (7,877,944) (5,891,611) Third-party expenses (1,675,643) (1,358,507) (2,401,187) Inter-company expenses — (25,858) (65,750) Share of loss from subsidiaries (5,783) (1,179) (13) Other (expense)/income (174,403) 40,309 2,610,121 (Loss)/Income before income tax expenses (1,234,283) (458,900) 2,662,162 Less: income tax expenses — (36,309) (117,413) Net (loss)/income from continuing operations (1,234,283) (495,209) 2,544,749 Net (loss)/income from discontinued operations (20,662) 14,373 — Net (loss)/income (1,254,945) (480,836) 2,544,749 Less: Net (loss)/income attributable to non-controlling interests (5,971) 5,075 — Net (loss)/income attributable to ordinary shareholders of Li Auto Inc. (1,260,916) (475,761) 2,544,749 For the Year Ended December 31, 2019 2020 2021 Net cash provided by inter-company transactions — 2,194,342 7,341,282 Net cash (used in)/provided by other transactions (1,607,435) 1,346,069 (8,693,141) Net cash (used in)/provided by operating activities (1,607,435) 3,540,411 (1,351,859) Inter-company loan financing to Group companies — — — Other investing activities with external entities (1,976,964) (1,665,982) (8,641,045) Net cash used in investing activities (1,976,964) (1,665,982) (8,641,045) Inter-company loan financing from Group companies 3,782,378 795,295 14,858,966 Other financing activities with external entities — (144,700) 81,308 Net cash provided by financing activities 3,782,378 650,595 14,940,274 Effects of exchange rate changes on cash, cash equivalents and restricted cash 19,746 (188) — Net increase in cash, cash equivalents and restricted cash 217,725 2,524,836 4,947,370 Cash, cash equivalents and restricted cash at beginning of the year 37,810 255,535 2,780,371 Cash, cash equivalents and restricted cash at end of the year 255,535 2,780,371 7,727,741 Less: Cash, cash equivalents and restricted cash of discontinued operations at end of the year 147 — — Cash, cash equivalents and restricted cash of continuing operations at end of the year 255,388 2,780,371 7,727,741 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. 1. Organization and Nature of Operations (Continued) 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 RMB7,930,831 and RMB7,103,472 as of December 31, 2020 and 2021, 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 accumulated deficit of the Group’s consolidated VIEs and VIEs’ subsidiaries was RMB3,772,758 and RMB1,229,463 as of December 31, 2020 and 2021, respectively. For the years ended December 31, 2019, 2020 and 2021, no management fees were paid by VIEs to the WOFEs as each of the VIEs was in accumulated deficit as of December 31, 2021 (pursuant to each management fee arrangement with the VIEs). 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, |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies (a) Basis of presentation 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) Principles of consolidation 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) Use of estimates 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 and derivative instruments, 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 and intangible assets with indefinite lives, the provision for credit losses of financial assets, inventory valuation for excess and obsolete inventories, lower of cost and net realizable value of inventories, product warranties, determination of vendor rebates, assessment of variable lease payments, and valuation allowance for deferred tax assets. Actual results could differ from those estimates. 2. Summary of Significant Accounting Policies (Continued) (d) Functional currency and foreign currency translation 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 (“RMB”). 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. Exchange gains or losses arising from foreign currency transactions are included in the consolidated statements of comprehensive loss. 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/(loss) in the consolidated statements of comprehensive loss, and the accumulated foreign currency translation adjustments are presented as a component of accumulated other comprehensive income/(loss) in the consolidated statements of shareholders’ (deficit)/equity. Total foreign currency translation adjustment income was RMB2,851 for the year ended December 31, 2019 and the foreign currency translation adjustment loss were RMB1,020,728 and RMB516,687 for the years ended December 31, 2020 and 2021 respectively. (e) Convenience translation 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, 2021 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.3726, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 30, 2021. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2021, or at any other rate. (f) Cash, cash equivalents and restricted cash 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, 2020 and 2021, 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 RMB17,844 and RMB33,540, 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 15). 2. Summary of Significant Accounting Policies (Continued) 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, 2020 2021 Cash and cash equivalents 8,938,341 27,854,224 Restricted cash 1,234,178 2,638,840 Total cash, cash equivalents and restricted cash 10,172,519 30,493,064 (g) Time deposits and short-term investments 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 “Interest income and investment income, net.” (h) Trade receivables and current expected credit losses Trade receivable primarily include amounts of vehicle sales related to government subsidies to be collected from the government on behalf of customers. The Group provides an allowance against trade receivable based on the expected credit loss approach (see below) and writes off trade receivable when they are deemed uncollectible. No material allowance for doubtful accounts for trade receivable was recognized for the years ended December 31, 2019 and 2020. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses The Group adopted this ASC 326 and several associated ASUs on January 1, 2021 using a modified retrospective approach with a cumulative effect recorded as an increase of accumulated deficit in the amount of RMB1,955. As of January 1, 2021, upon the adoption, the expected credit loss provision for the current assets and non-current assets were RMB972 and RMB983, respectively. For the year ended December 31, 2021, the Group recorded RMB6,415 in expected credit losses in selling, general and administrative expenses. As of December 31, 2021, the expected credit loss provision recorded in current assets and non-current assets were RMB2,659 and RMB3,757, respectively. 2. Summary of Significant Accounting Policies (Continued) The Group typically does not carry significant trade receivable related to vehicle sales and related sales as customer payments are due prior to vehicle delivery, except for amounts of vehicle sales in relation to government subsidies to be collected from the government on behalf of customers. Other current assets and other non-current assets primarily consist of other receivables and deposits. The following table summarizes the activity in the allowance for credit losses related to trade receivable, other current assets and other non-current assets for the year ended December 31, 2021: For the year ended December 31, 2021 Balance as of December 31, 2020 — Impact of adoption of ASC 326 1,955 Balance as of January 1, 2021 1,955 Provisions 6,415 Write-offs (1,954) Balance as of December 31, 2021 6,416 (i) Derivative instruments Derivative instruments are measured at fair value and recognized as either assets or liabilities on the consolidated balance sheets in either other current or non-current assets or other current liabilities or non-current liabilities depending upon maturity and commitment. Changes in the fair value of derivatives are either recognized periodically in the consolidated statements of comprehensive loss or in other comprehensive income/(loss) depending on the use of the derivatives and whether they qualify for hedge accounting. The Group selectively uses financial instruments to manage market risk associated with exposure to fluctuations in foreign currency rates with foreign exchange forwards and option contracts. These financial exposures are monitored and managed by the Group as an integral part of its risk management program. The Group does not engage in derivative instruments for speculative or trading purposes. The Group’s derivative instruments are not qualified for hedge accounting, thus changes in fair value are recognized in “Interest income and investment income, net” in the consolidated statements of comprehensive loss. The cash flows of derivative financial instruments are classified in the same category as the cash flows from the items subject to the economic hedging relationships. The estimated fair value of the derivatives is determined based on relevant market information. These estimates are calculated with reference to the market rates using industry standard valuation techniques. Derivative instruments are presented as net if rights of setoff exist, with all of the following conditions met: (a) each of two parties owes the other determinable amounts; (b) the reporting party has the right to set off the amount owed with the amount owed by the other party; (c) the reporting party intends to set off; and (d) the right of setoff is enforceable at law. As of December 31, 2021, the outstanding balance of derivative instruments was nil due to maturity of derivative instruments. The Company recorded the fair value gain of RMB73,824 in Interest income and investment income, net on the consolidated statement of comprehensive loss for the year ended December 31, 2021. 2. Summary of Significant Accounting Policies (Continued) (j) Inventories 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, 2019 and 2020. The inventory write-downs for the year ended December 31, 2021 were immaterial. (k) Property, plant and equipment, net 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. Interest expense on specific outstanding debt is capitalized during the period of significant capital asset construction. Capitalized interest expense on construction-in-progress is included within property, plant and equipment and is amortized over the life of the related assets. Motor vehicles represent vehicles used for the Group’s daily operation, including driving testing purpose. 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 2 to 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. 2. Summary of Significant Accounting Policies (Continued) (m) Intangible assets, net Definite lived intangible assets are carried at cost less accumulated amortization and impairment, if any. Definite lived intangible assets are amortized using the straight-line method over the estimated useful lives as below: Useful Lives Software and Patents 5 to 10 years The Company estimates the useful life of the software and patents to be 5 to 10 years based on the contract terms, expected technical obsolescence and innovations and industry experience of such intangible assets. Intangible assets that have indefinite useful life represent the automotive manufacturing permission, which is necessary to produce the passenger vehicles. No useful life was determined in the contract terms when the Company acquired the automotive manufacturing permission. The Company expects that the automotive manufacturing permission is unlikely to be terminated based on industry experience and will continue to contribute revenue in the future. Therefore, the Company considers the useful life of this intangible assets to be indefinite. (n) Impairment of long-lived assets and intangible assets with indefinite lives 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 ASC 360. 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. RMB18,066, RMB30,381 and RMB27,389 impairment of long-lived assets were recognized for the years ended December 31, 2019, 2020 and 2021, respectively. 2. Summary of Significant Accounting Policies (Continued) 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. In consideration of the growing electric vehicle industry in China, the Group’s improving financial performance, the stable macroeconomic conditions in China and the Group’s future manufacturing plans, the Company determined that it is not likely that the indefinite-lived intangible assets was impaired as of December 31, 2019, 2020 and 2021. (o) 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 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. 2. Summary of Significant Accounting Policies (Continued) (p) Employee benefits 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 RMB168,019, RMB133,162 and RMB482,536 for the years ended December 31, 2019, 2020 and 2021, respectively. (q) Product warranties 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 by multiplying the expected unit costs for warranty services by the sales volume, 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. In November 2020, the Group initiated the voluntary recall for vehicles produced on or before June 1, 2020 and communicated its intention to replace, free of charge, the control arm ball joint of the front suspension of Li ONEs in accordance with necessary safety measures. In addition to product warranties, the Company recognized the estimated costs of the recall as incurred. The accrued warranty activity consists of the following: For the Year Ended December 31, 2019 2020 2021 Accrued warranty at beginning of the year — 6,996 233,366 Warranty cost incurred (163) (8,258) (22,558) Provision for warranty 7,159 234,628 631,537 Accrued warranty at end of the year 6,996 233,366 842,345 Including: Accrued warranty, current 1,477 55,138 154,276 Accrued warranty, non-current 5,519 178,228 688,069 (r) Revenue recognition 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. The Group released the 2021 Li ONE in May 2021, which is upgraded version of Li ONE and terminated the production of the first model Li ONE in May, 2021(Note 9). Revenues of the Group are primarily derived from sales of vehicle, along with multiple distinct performance obligations within each sale of vehicle, as well as the sales of Li Plus Membership. The Group adopted ASC 606, Revenue from Contracts with Customers 2. Summary of Significant Accounting Policies (Continued) 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 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 2. Summary of Significant Accounting Policies (Continued) 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. Since July 2020, the Group was no longer eligible for the government subsidies as the Group’s selling price of vehicles is higher than theshold in the circular issued by the certain PRC authorities. 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 Customers or users of the mobile |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Recently adopted accounting pronouncements In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes In January 2020, the FASB issued Accounting Standards Update No. 2020-01, Investments — Equity Securities (Topic 321), Investments — Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments clarified that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The amendments also clarified that for the purpose of applying paragraph 815-10-15-141(a) an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. An entity also would evaluate the remaining characteristics in paragraph 815-10-15-141 to determine the accounting for those forward contracts and purchased options. The Company adopted ASU No. 2020-01 from January 1, 2021, which did not have a material impact on the Company’s consolidated financial statements. |
Concentration and Risks
Concentration and Risks | 12 Months Ended |
Dec. 31, 2021 | |
Concentration and Risks | |
Concentration and Risks | 4. Concentration and Risks (a) Concentration of credit risk 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, 2020 and 2021, 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. On May 1, 2015, China’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. This Deposit Insurance Regulation would not be effective in providing complete protection for the Group’s accounts, as its aggregate deposits are much higher than the compensation limit. However, the Group believes that the risk of failure of any of these PRC banks is remote. The Group expects that there is no significant credit risk associated with cash and cash equivalents and short-term investments which are held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries and VIEs are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Group has no significant concentrations of credit risk with respect to the assets mentioned above. The Group relies on a limited number of third parties to provide payment processing services (“payment service providers”) to collect amounts due from customers. Payment service providers are financial institutions, credit card companies and mobile payment platforms such as Alipay and WeChat Pay, which the Company believes are of high credit quality. (b) Currency convertibility risk 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 RMB5,384,769 and RMB24,509,656 as of December 31, 2020 and 2021, 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) Foreign currency exchange rate risk The conversion of Renminbi into foreign currencies, including U.S. dollars, is based on rates set by the People’s Bank of China. The Renminbi has fluctuated against the U.S. dollar, at times significantly and unpredictably. The value of Renminbi against the U.S. dollar and other currencies is affected by changes in China’s political and economic conditions and by China’s foreign exchange policies, among other things. The depreciation of the RMB against the US$ was approximately 1.6% in 2019. The appreciation of the RMB against the US$ was approximately 6.5% and 2.3%in 2020 and 2021, respectively. 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, 2021 | |
Acquisition of Chongqing Zhizao | |
Acquisition of Chongqing Zhizao | 5. Acquisition of Chongqing Zhizao 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 an 100% equity interest in 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 capital 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. As of December 31, 2021, the Group settled the aggregate amount of RMB648,000, of which RMB8,000 was settled with the outstanding loan receivable from Chongqing Lifan Holdings Ltd. (“Lifan Holdings”) (Note 8). On December 19, 2019, Xinfan entered into a share transfer agreement (the “Lifan Disposal Agreement”) to dispose of its 100% equity interest in 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 to Lifan Industry and Lifan Passenger Vehicle 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. |
Trade receivable
Trade receivable | 12 Months Ended |
Dec. 31, 2021 | |
Trade receivable | |
Trade receivable | 6. Trade receivable An aging analysis of the trade receivable as of December 31, 2020 and 2021, based on the invoice date and net of provisions, is as follows: As of December 31, 2020 2021 Within 3 months 10,429 16,462 Between 3 months and 6 months 18,914 890 Between 6 months and 1 year 77,903 — More than 1 year 8,303 103,189 Total 115,549 120,541 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Inventories | 7. Inventories Inventories consist of the following: As of December 31, 2020 2021 Raw materials, work in process and supplies 227,836 1,468,801 Finished products 820,168 149,089 Total 1,048,004 1,617,890 Raw materials, work in process and supplies as of December 31, 2020 and 2021 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, 2021 | |
Prepayments and Other Current Assets | |
Prepayments and Other Current Assets | 8. Prepayments and Other Current Assets Prepayments and other current assets consist of the following: As of December 31, 2020 2021 Prepayments to vendors 104,271 218,660 Deductible VAT input 196,021 118,177 Prepaid rental and deposits 30,357 48,929 Receivables related to rebate — 28,491 Loan receivable from Lifan Holdings (i) 8,000 — Others 15,006 68,615 Less:Allowance for Credit Losses — (2,192) Total 353,655 480,680 (i) Loan receivable from Lifan Holdings represents the uncollected loan principal under the loan agreements entered into between Beijing CHJ and Lifan Holdings in 2018 (the “2018 Lifan Loan”) and 2019 (the “2019 Lifan Loan”). The outstanding loan receivable from Lifan Holdings was settled against the payables for consideration payble for the acquistion of Chongqing Zhizao in April 2021 (Note 5). |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment, Net. | |
Property, Plant and Equipment, Net | 9. Property, Plant and Equipment, Net Property, plant and equipment and related accumulated depreciation were as follows: As of December 31, 2020 2021 Construction in process (i) 53,579 1,942,953 Mold and tooling 987,316 1,098,392 Production facilities 787,970 804,281 Leasehold improvements 249,879 660,902 Buildings 404,772 409,123 Buildings improvements 311,947 297,163 Equipment 175,887 266,745 Motor vehicles 36,409 59,702 Total 3,007,759 5,539,261 Less: Accumulated depreciation (498,691) (983,222) Less: Accumulated impairment loss (ii) (30,381) (57,770) Total property, plant and equipment, net 2,478,687 4,498,269 The Group recorded depreciation expenses of RMB107,173, RMB312,011 and RMB579,097 for the years ended December 31, 2019, 2020 and 2021, respectively. (i) Construction in process is primarily comprised of production facilities, equipment and mold and tooling related to manufacturing of the extended-range eletric SUV vehicles and BEV models and a portion of Changzhou Manufacturing Base construction. In July 2021, the Group signed a memorandum and a series of agreements (collectively “Beijing Manufacturing Base Agreements”) for collaboration in a construction and expansion project of an automobile manufacturing plant in Shunyi District, Beijing with an enterprise affiliated with Beijing local government. In October 2021, the Group officially commenced construction of Beijing Manufacturing Base which is scheduled to be operational in 2023. As of December 31, 2021, RMB (ii) Impairments of RMB18,066, RMB30,381 and RMB27,389 were recognized for property, plant and equipment for the years ended December 31, 2019, 2020 and 2021, respectively. As of December 31, 2019, 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. Furthermore, the Group launched 2021 Li ONE in May 2021, consequently, the production volume of the first model Li ONE is expected to gradually decrease in line with sales volume. As of December 31, 2021, the Group recorded an impairment loss on the production facilities and mold and tooling in connection with the production of the first model Li ONE accordingly as the carrying value of these assets are not expected to be recovered in the foreseeable future. The impairment loss for the year ended December 31, 2021 is immaterial. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net | |
Intangible Assets, Net | 10. Intangible Assets, Net Intangible assets and related accumulated amortization were as follows: As of December 31, 2020 2021 Automotive Manufacturing Permission (Note 5) 647,174 647,174 Indefinite ‑ lived intangible assets, net 647,174 647,174 Software 58,097 137,576 Patents 694 694 Definite ‑ lived intangible assets 58,791 138,270 Less: Accumulated amortization Software (21,990) (33,290) Patents (694) (694) Accumulated amortization (22,684) (33,984) Definite ‑ lived intangible assets, net 36,107 104,286 Total intangible assets, net 683,281 751,460 The Group recorded amortization expenses of RMB9,218, RMB8,985 and RMB11,300 for the years ended December 31, 2019, 2020 and 2021, respectively. As of December 31, 2021, amortization expenses related to intangible assets for future periods are estimated to be as follows: As of December 31, 2021 2022 16,540 2023 14,121 2024 11,348 2025 9,815 2026 and thereafter 52,462 Total 104,286 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Leases | 11. 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 Changzhou manufacturing base production plants. The components of lease expenses were as follows: For the Year Ended December 31, 2019 2020 2021 Lease cost Finance lease cost: Amortization of assets 15,501 15,346 12,122 Interest of lease liabilities 19,943 21,851 19,322 Operating lease cost 86,365 176,788 367,375 Short‑term lease cost 6,801 4,937 15,559 Total 128,610 218,922 414,378 Operating lease cost is recognized as rental expenses in consolidated statements of comprehensive loss. 11. Leases (Continued) 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, 2019 2020 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows payments for operating leases 77,643 126,418 346,757 Right-of-use assets obtained in exchange for lease liabilities: Right-of-use assets obtained in exchange for new operating lease liabilities 207,902 896,804 1,120,392 Supplemental balance sheet information related to leases was as follows (in thousands, except lease terms and discount rate): As of December 31, 2020 2021 Operating Leases Land use rights, net (i, ii) 181,505 289,810 Operating lease right-of-use assets, net (excluding land use rights) 1,095,501 1,771,682 Total operating lease assets 1,277,006 2,061,492 Operating lease liabilities, current 210,531 473,245 Operating lease liabilities, non-current 1,025,253 1,369,825 Total operating lease liabilities 1,235,784 1,843,070 As of December 31, 2020 2021 Finance Leases Property, plant and equipment, at cost (i, iv) 294,269 — Accumulated depreciation (56,682) — Property, plant and equipment, net 237,587 — Finance lease liabilities, non-current 366,883 — Total finance leases liabilities 366,883 — As of December 31, 2020 2021 Weighted-average remaining lease term Land use rights 47 years 47 years Operating leases 11 years 8 years Finance leases 16 years — Weighted-average discount rate Land use rights 6.2 % — Operating leases 5.8 % 5.8 % Finance leases 6.2 % — 11. Leases (Continued) Maturities of lease liabilities were as follows: As of December 31, 2021 Operating leases Finance leases 2021 — — 2022 473,477 — 2023 372,077 — 2024 242,358 — 2025 178,605 — 2026 155,296 — Thereafter 953,835 — Total undiscounted lease payments 2,375,648 — Less: imputed interest (532,578) — Total lease liabilities 1,843,070 — 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 Manufacturing Base with the Changzhou Wujin District People’s Government and two enterprises affiliated with it ((“Changzhou Wunan New Energy Vehicle Investment Co., Ltd” and its According to the Changzhou Cooperation Agreement, the Developer will be responsible to construct the Changzhou Manufacturing 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 Manufacturing 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 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 and recognized as property, plant and equipment of the Group. 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. 11. Leases (Continued) ii) Changzhou Manufacturing 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 Manufacturing Phase II was completed on January 1, 2019. In August 2019, the Group entered into an asset transfer agreement to sell the Manufacturing 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 Manufacturing 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 consideration from the third-party Developer and recorded as the short-term borrowing in the consolidated balance sheets. iii) Modification of lease agreements in connection to Changzhou Manufacturing Base- Phase I and Phase II In June 2020, the Group entered into a series of supplemental agreements in connection to Changzhou Manufacturing Base Phase I and Phase II 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. 11. Leases (Continued) iv) Acquisition of Changzhou Manufacturing Base Phase I and Phase II and termination of lease agreements In November 2021, Jiangsu CHJ, as a subsidary of the Group, entered into an equity transfer agreement to acquire 100% equity interests of Changzhou Chehejin which owns the legal title of Changzhou Manufacturing Base Phase I and Phase II Land use rights and Plants. According to the equity transfer agreement, the total consideration for this transaction was RMB567,118 in cash, of which RMB565,500 was paid as of December 31, 2021, and RMB28,491 was settled in January 2022. Upon the completion of the transaction, the legal titles of Changzhou Manufacturing Base Phase I and II, including Land use rights and Plants, were transferred to the Group, and the original lease agreements were terminated accordingly. There were no inputs and susbstantive processes acquired to siginificantly contribute to the ability to creat the output. No system, standard, protocol, convention, or rule that can create or has the ability to contribute to the creation of outputs were obtained by Jiangsu CHJ. Therefore, this transaction is determined to be an asset acquisition as no sufficient inputs and processes were acquired to produce outputs. According to ASC 842-20-40-2 |
Other Non-current Assets
Other Non-current Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Non-current Assets | |
Other Non-current Assets | 12. Other Non-current Assets Other non-current assets consist of the following: As of December 31, 2020 2021 Prepayments for purchase of property, plant and equipment (i) 126,006 1,051,415 Long-term deposits 149,235 653,030 Deductible VAT input, non-current — 263,390 Others 45,943 16,998 Less: Allowance for credit losses — (3,757) Total 321,184 1,981,076 (i) Prepayments for purchase of property, plants and equipment primarily consists of production facilities, leasehold improvements, equipment and mold and tooling related to manufacturing of the extended-range eletric SUV vehicles and BEV models and a portion of Beijing Manufacturing Base construction. |
Long-term Investments
Long-term Investments | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Investments. | |
Long-term Investments | 13. Long-term Investments The Group’s long-term investments on the consolidated balance sheets consisted of the following: Equity Security With Equity Securities Without Readily Determinable Readily Determinable Fair Equity Method Fair Values Values Total 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 Additions 30,000 — — 30,000 Shares of loss of equity method investees (83) — — (83) Fair value change through earnings — (35,330) — (35,330) Foreign currency translation — (1,134) — (1,134) Balance at December 31, 2021 34,704 28,452 93,150 156,306 Equity Method On September 11, 2018, the Group acquired 49% entity interest in Investee A, which is a joint venture with the other shareholder holding 51% interest established to design, develop and produce BEV equipped with vehicle intelligence and 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 “Others, net” in the consolidated statements of comprehensive loss. As of December 31, 2021, the carrying value of equity method investment in Investee A was reduced to zero. In July 2021, the Group entered into an agreement with Suzhou Huichuan United Power System Co., LTD (“Suzhou Huichuan” or “Investor B”) to establish Changzhou Huixiang New Energy Auto Parts Co., LTD (“Changzhou Huixiang” or “Joint Venture”). The Group was obligated to pay RMB73,500 registered capital, representing 49% of Changzhou Huixiang equity interests, while Suzhou Huichuan is obligated to contribute RMB76,500 registered capital, representing 51% Changzhou Huixiang equity interests. Upon completion of the business registration procedures as of December 31, 2021, the Group obtained the shareholder rights and obligation based on its respective shareholding ownership. The Group has significant influence in Changzhou Huixiang and therefore the investment is accounted for using the equity method. Subsequent to December 31, 2021, the Group paid RMB30,000 out of the total RMB73,500 registered capital. 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, 2019, 2020 and 2021. 13. Long-term Investments (Continued) 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 Currency Cango Inc. Cost Basis Unrealized Loss Translation Fair Value As of December 31, 2020 100,303 (38,205) 2,818 64,916 As of December 31, 2021 100,303 (73,535) 1,684 28,452 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 22). 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 5,000, nil and nil were recorded in investment income, net in the consolidated statements of comprehensive loss for the years ended December 31, 2019, 2020 and 2021, respectively. |
Short-term Borrowings and Long-
Short-term Borrowings and Long-term Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Borrowings and Long-term Borrowings | |
Short-term Borrowings and Long-term Borrowings | 14. Short-term Borrowings and Long-term Borrowings Borrowings consist of the following: Interest Rate As of December 31, Maturity Date Principal Amount Per Annum 2020 2021 Secured borrowing (1) December 31, 2022 RMB 94,550 6.1750 % 98,717 — Unsecured corporate loan (2) June 30, 2022 RMB 401,073 6.1750 % 412,921 — Convertible debt (3) May 1, 2028 US$ 862,500 0.2500 % — 5,397,941 Secured bank loan (4) September 28, 2029 RMB 600,000 4.8000 % — 600,000 Total borrowings 511,638 5,997,941 Classified as: As of December 31, 2020 2021 – Short-term borrowings — 37,042 – Long-term borrowings 511,638 5,960,899 Total 511,638 5,997,941 (1) As the transaction in relation to Changzhou Manufacturing 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. Upon the completion of acquisition of Changzhou Manufacturing Base Phase I and Phase II (See Note 11), the balance of secured borrowing of RMB 101,882 was settled as the lease agreements were terminated in November 2021. (2) Pursuant to the supplemental agreements of the convertible loan in June 2020 (Note 17), 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. The balance of unsecured corporate loan and accrued interest was RMB 412,921 as of December 31, 2020. The Company fully repaid the outstanding principal and accrued interest of RMB 429,692 in August 2021. (3) In April 2021, the Company issued and sold convertible debt in an aggregate principal of US $862,500 through a private placement (Note 17). The convertible debt will mature in 2028, bearing the interest at a rate of 0.25% per annum. The related interest is payable semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2021. The net proceeds from this offering were approximately US $844,876 , equivalent to RMB 5,533,238 . The convertible debt may be converted, at an initial conversion rate of 35.2818 ADS per US$1,000 principal amount (which represents an initial conversion price of approximately US$28.34 per ADS) at each holder’s option at any time on or after November 1, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date of May 1, 2028. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, either cash, ADSs, or a combination of cash and ADSs, at its election. Holders of the convertible debt have the rights to require the Company to repurchase all or a portion for their convertible debt on May 1, 2024 and May 1, 2026 or in the event of certain fundamental changes, at a repurchase price equal to 100% of the principal amount of the convertible debt to be repurchased, plus accrued and unpaid interest. 14. Short-term Borrowings and Long-term Borrowings (Continued) The Company accounted for the convertible debt as single instruments measured at its amortized cost as long-term borrowings on the consolidated balance sheets. The issuance costs were recorded as an adjustment to the long-term borrowings and are amortized as interest expense using the effective interest method over the contractual life to the maturity date (i.e., May 1, 2028). For the year ended December 31, 2021, the convertible debt related interest expense was US$3,353 (RMB21,369). As of December 31, 2021, the principal amount of the convertible debt was RMB5,499,041 and the unamortized debt issuance cost was RMB101,100, respectively. (4) In September 2021, the Group entered into a loan facility agreement with a commercial bank in the PRC, which allows the Group to draw borrowings up to RMB 1,009,900 as of periods ended September 28, 2029. The borrowings bear annual interest rate of 4.8% and were guaranteed by certain production facilities and toolings of the Group. As of December 31, 2021, the outstanding loan principal was RMB 600,000 , of which RMB 37,042 will be due in 2022 and the remaining RMB 562,958 will be due in 2023 and thereafter. The unused credit limits under these facilities was RMB 409,900 as of December 31, 2021. As of December 31, 2020 and 2021, the secured bank loan was classified as follows: As of December 31, 2020 2021 Secured bank loan – Current portion — 37,042 – Non-current portion — 562,958 Total — 600,000 |
Trade and Notes Payable
Trade and Notes Payable | 12 Months Ended |
Dec. 31, 2021 | |
Trade and Notes Payable | |
Trade and Notes Payable | 15. Trade and Notes Payable Trade and notes payable consist of the following: As of December 31, 2020 2021 Trade payable for raw materials 2,991,538 7,089,370 Notes payable 168,977 2,286,680 Total 3,160,515 9,376,050 An aging analysis of the trade and notes payable as at December 31, 2020 and 2021, based on the invoice date, is as follows: As of December 31, 2020 2021 Within 3 months 3,118,840 7,539,833 Between 3 months and 6 months 18,537 1,639,286 Between 6 months and 1 year 10,676 161,913 More than 1 year 12,462 35,018 Total 3,160,515 9,376,050 |
Accruals and Other Current Liab
Accruals and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accruals and Other Current Liabilities | |
Accruals and Other Current Liabilities | 16. Accruals and Other Current Liabilities Accruals and other current liabilities consist of the following: As of December 31, 2020 2021 Payables for purchase of property, plant and equipment 118,181 456,395 Salaries and benefits payable 187,972 417,449 Tax payable 50,088 277,233 Accrued warranty 55,138 154,276 Payables for logistics expenses 43,571 143,632 Payables for research and development expenses 35,032 94,517 Deposits from vendors 9,120 27,716 Advance from customers 9,285 10,262 Payables for acquisition of Chongqing Zhizao (Note 5) 79,552 2,000 Other payables 59,520 295,888 Total 647,459 1,879,368 |
Convertible Debts
Convertible Debts | 12 Months Ended |
Dec. 31, 2021 | |
Convertible Debts. | |
Convertible Debts | 17. Convertible Debts The Group recognized unsecured corporate loan issued in 2017, Convertible Promissory Notes issued in 2019 and Convertible Senior Notes issued in 2021 in the short-term borrowings and long-term borrowings on the consolidated balance sheets as of December 31, 2020 and 2021. Unsecured corporate 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. The Group fully repaid the outstanding principal and accrued interest RMB429,692 in August 2021 (Note 14). 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. 17. Convertible Debts (Continued) 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. Convertible Senior Notes (“2028 Notes”) In April 2021, the Company issued and sold convertible debt in an aggregate principal of US$862,500, through a private placement. The convertible debt will mature in 2028, bearing the interest at a rate of 0.25% per annum. The related interest is payable semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2021. The net proceeds from this offering were approximately US$844,876, equivalent to RMB5,533,238. The convertible debt may be converted, at an initial conversion rate of 35.2818 ADSs per US$1,000 principal amount (which represents an initial conversion price of approximately US$28.34 per ADS) at each holder’s option at any time on or after November 1, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date of May 1, 2028. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, either cash, ADSs, or a combination of cash and ADSs, at its election. The initial conversion price of US$28.34 per ADS, or US$14.17 per Class A Ordinary Share (the latter represents the effective cost per Class A Ordinary Share), represents a discount of approximately 26.56% to the maximum Public Offer Price of HK$150.00 per Class A Ordinary Share. The initial conversion rate may be adjusted in certain circumstances, including but not limited to when our Company effects a share split or share combination. As of the Latest Practicable Date, no adjustment had been made to the initial conversion rate. Holders of the convertible debt have the rights to require the Company to repurchase all or partial for their convertible debt on May 1, 2024 and May 1, 2026 or in the event of certain fundamental changes, at a repurchase price equal to 100% of the principal amount of the convertible debt to be repurchased, plus accrued and unpaid interest. 17. Convertible Debts (Continued) The Company assessed the convertible debt under ASC 815 and concluded that: (i) Since the conversion option is considered indexed to the Company’s own stock and classified in shareholders’ (deficit)/ equity, bifurcation of conversion option from the convertible debt is not required as the scope exception prescribed in ASC 815-10-15-74 is met; (ii) The repurchase option is considered clearly and closely related to its debt host and does not meet the requirement for bifurcation. In August 2020, the FASB issued ASU 2020-06 Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)(the “ASU 2020-06”). The Company determined to early adopt ASU 2020-06 from January 1, 2021. Since the ASU 2020-06 amended the guidance on convertible debt instruments by removing accounting models for the instruments with beneficial conversion features and cash conversion features. Accordingly, there is no need to consider beneficial conversion feature or cash conversion features for the convertible debt. Therefore, the Company accounted for the convertible debt as single instruments measured at its amortized cost as long-term borrowings on the consolidated balance sheets (Note 14). The issuance costs were recorded as an adjustment to the long-term borrowings and are amortized as interest expense using the effective interest method over the contractual life to the maturity date (i.e., May 1, 2028). For the year ended December 31, 2021, the convertible debt related interest expense was RMB21,369 (US$3,353). As of December 31, 2021, the principal amount of the convertible debt was RMB5,499,041 and the unamortized debt issuance cost was RMB101,100, respectively. |
Revenue Disaggregation
Revenue Disaggregation | 12 Months Ended |
Dec. 31, 2021 | |
Revenue Disaggregation | |
Revenue Disaggregation | 18. Revenue Disaggregation Revenues by source consist of the following: For the Year Ended December 31, 2019 2020 2021 Vehicle sales 280,967 9,282,703 26,128,469 Other sales and services 3,400 173,906 881,310 Total 284,367 9,456,609 27,009,779 18. Revenue Disaggregation (Continued) Revenue by timing of recognition is analyzed as follows: For the Year Ended December 31, 2019 2020 2021 Revenue recognized at a point in time 284,195 9,436,095 26,917,836 Including: Vehicle sales 280,967 9,282,703 26,128,469 Other sales and services 3,228 153,392 789,367 Revenue recognized over time 172 20,514 91,943 Total 284,367 9,456,609 27,009,779 Revenues arising from vehicle sales are recognized at a point in time when the control of the products are transferred to the users. Revenues from other sales and services are recognized at a point in time include (i) sales and installment of charging piles, (ii) sales of goods from online store, (iii) certain services under the Li Plus Membership, and (iv) sales of Automotive Regulatory Credits which revenue are recognized at a point in time when the control of the products and services are transferred to the users. Certain revenue arising from other sales and services is recognized over time, including vehicle internet connection services, FOTA upgrades and certain services under the Li Plus Membership. |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Revenue | |
Deferred Revenue | 19. 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, 2019 2020 2021 Deferred revenue—at beginning of the year — 62,638 407,168 Additions 338,702 9,687,382 27,377,563 Recognition (276,064) (9,342,852) (27,089,986) Deferred revenue—at end of the year 62,638 407,168 694,745 Including: Deferred revenue, current 56,695 271,510 305,092 Deferred revenue, non‑current 5,943 135,658 389,653 Deferred revenue are contract liabilities allocated to the performance obligations that are unsatisfied, or partially satisfied which primarily resulted from the undelivered vehicles, uninstalled charging piles and other performance obligations idenfied in the vehicle sales contracts. The Group expects that RMB305,092 of the transaction price allocated to unsatisfied performance obligation as of December 31, 2021 will be recognized as revenue during the period from January 1, 2022 2023 |
Research and Development Expens
Research and Development Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Research and Development Expenses. | |
Research and Development Expenses | 20. Research and Development Expenses Research and development expenses consist of the following: For the Year Ended December 31, 2019 2020 2021 Employee compensation 461,922 580,157 2,079,948 Design and development expenses 603,332 431,996 1,003,567 Depreciation and amortization expenses 39,648 44,977 54,110 Rental and related expenses 14,269 18,818 52,985 Travel expenses 21,815 9,360 52,307 Others 28,154 14,549 43,472 Total 1,169,140 1,099,857 3,286,389 |
Selling, General and Administra
Selling, General and Administrative Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Selling, General and Administrative Expenses. | |
Selling, General and Administrative Expenses | 21. Selling, General and Administrative Expenses Selling, general and administrative expenses consist of the following: For the Year Ended December 31, 2019 2020 2021 Employee compensation 238,368 449,109 1,414,177 Marketing and promotional expenses 176,383 264,814 1,100,769 Rental and related expenses 78,897 162,907 324,655 Depreciation and amortization expenses 57,650 37,923 82,777 Travel expenses 20,171 20,806 69,079 Expected credit losses — — 6,415 Impairment of property, plant and equipment 18,066 30,381 — Others 99,844 152,879 494,513 Total 689,379 1,118,819 3,492,385 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations | |
Discontinued Operations | 22. Discontinued Operations Historically, the Group had a strategy of developing Low-Speed 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. 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. Accordingly, the Company concluded that as of September 30, 2019, the SEV battery packs business met all of the held for sale criteria. 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. The following tables set forth the results of operations and cash flows of the discontinued operations, which were included in the Group’s consolidated financial statements. 22. Discontinued Operations (Continued) For the Year Ended December 31, 2019 2020 Revenues 9,654 870 Cost of sales (18,981) (2,437) Gross loss (9,327) (1,567) Operating expenses (11,359) (1,423) Impairment of long‑lived assets — — Loss from operations of discontinued operations (20,686) (2,990) Others, net 24 — Loss from discontinued operations before income tax expense (20,662) (2,990) Income tax expense — — Net loss from discontinued operations, net of tax (20,662) (2,990) For the Year Ended December 31, 2019 2020 Net cash (used in)/provided by discontinued operating activities (11,395) 148 Net cash (used in)/provided by discontinued investing activities (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, 2021 | |
Ordinary Shares | |
Ordinary Shares | 23. 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. 23. Ordinary Shares (Continued) 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 US 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. Li Xiang, 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. Li Xiang 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. In February 2021, the Company issued 34,000,000 Class A Ordinary Shares as treasury shares for future exercise of share options. In May 2021, the Company issued 108,557,400 Class B Ordinary Shares as treasury shares to Mr. Li Xiang, the Company’s founder and chief executive officer, pursuant to the Company’s 2021 Share Incentive Plan. In August 2021, the Company completed its HK IPO and 100,000,000 Class A Ordinary Shares were issued with proceeds of HK$11,633,130, net of underwriter commissions and relevant offering expenses. In September 2021, the Company issued an additional 13,869,700 Class A Ordinary Shares upon the exercise of underwriters’ over-allotment option for a consideration of HK$1,634,462. As of December 31, 2021, 6,404,416 share options that fulfilled the vesting conditions were exercised. As of December 31, 2020 and 2021, the Company had issued outstanding |
Convertible Redeemable Preferre
Convertible Redeemable Preferred Shares and Warrants | 12 Months Ended |
Dec. 31, 2021 | |
Convertible Redeemable Preferred Shares and Warrants | |
Convertible Redeemable Preferred Shares and Warrants | 24. Convertible Redeemable Preferred Shares and Warrants Prior to the US IPO in August 2020, the Company issued convertible redeemable preferred shares, which are summarized in the following table: 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 231,758,541 US$2.64/ US$2.35 3,851,034 (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 23). (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 17). 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 RMB 1,022,045 , or RMB 13.02 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. 24. Convertible Redeemable Preferred Shares and Warrants (Continued) The Series Pre-A A-1 A-2 A-3 B-1 B-2 B-3 D All of the Preferred Shares (other than those beneficially owned by Mr. Li Xiang, the founder and the chief executive officer of the Company) were automatically converted to 1,045,789,275 Class A Ordinary Shares immediately upon the completion of the US IPO in August 2020. Concurrently, all Preferred Shares beneficially owned by Mr. Li Xiang were automatically converted to 115,812,080 Class B Ordinary Shares. 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. 24. Convertible Redeemable Preferred Shares and Warrants (Continued) Upon the 2019 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, 2021 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. 24. Convertible Redeemable Preferred Shares and Warrants (Continued) Conversion upon US IPO In August 2020, in connection with the completion of US 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 RMB743,100, RMB651,190 and nil for the years ended December 31, 2019, 2020 and 2021, respectively. Prior to the 2019 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 2019 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 2019 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 2019 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. 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 US 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. 24. Convertible Redeemable Preferred Shares and Warrants (Continued) The movement of the warrants and conversion feature derivative liabilities are summarized below: Warrants Derivative Liabilities Liabilities Total Balance at January 1, 2019 — — — 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 — — — (*) Upon the completion of the issuance of the Series C Preferred Shares in December 2019, the unvested Series B-3 Additional Warrant to acquire additional Series C Preferred Shares at a 15% discount of purchase price expired, as such the fair value of such Series B-3 Additional Warrant reduced to zero accordingly. 24. Convertible Redeemable Preferred Shares and Warrants (Continued) The Company’s convertible redeemable preferred shares activities for the years ended December 31, 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, 2019 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 — 63,363 — 46,738 — 136,567 — 64,859 — 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, 2021 | |
Loss Per Share | |
Loss Per Share | 25. 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, 2019, 2020 and 2021 as follows: For the Year Ended December 31, 2019 2020 2021 Numerator: Net loss (2,438,536) (151,657) (321,455) Accretion on convertible redeemable preferred shares to redemption value (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. (3,281,607) (791,985) (321,455) Including: Net loss from continuing operations attributable to ordinary shareholders of Li Auto Inc. (3,260,945) (806,358) (321,455) Net (loss)/income from discontinued operations attributable to ordinary shareholders of Li Auto Inc. (20,662) 14,373 — Denominator: Weighted average ordinary shares outstanding—basic and diluted 255,000,000 870,003,278 1,853,320,448 Basic and diluted net loss per share from continuing operations attributable to ordinary shareholders of Li Auto Inc. (12.79) (0.93) (0.17) Basic and diluted net (loss)/income per share from discontinued operations attributable to ordinary shareholders of Li Auto Inc. (0.08) 0.02 — Basic and diluted net loss per share attributable to ordinary shareholders of Li Auto Inc. (12.87) (0.91) (0.17) For the years ended December 31, 2019, 2020 and 2021, the Company had ordinary equivalent shares, including preferred shares, options granted, unsecured corporate loan issued in November 2017 and convertible debt issued in April 2021 (Note 17). As the Group incurred loss for the years ended December 31, 2019, 2020 and 2021, 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, unsecurred corporate loan and convertible debt excluded from the calculation of diluted loss per share of the Company were 669,666,355, 54,605,925, 22,639,154 and |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share based Compensation | |
Share based Compensation | 26. Share-based Compensation Compensation expenses recognized for share-based awards granted by the Company were as follows: For the Year Ended December 31, 2019 2020 2021 Cost of sales — 1,515 26,713 Research and development expenses — 60,789 741,793 Selling, general and administrative expenses — 80,491 332,850 Total — 142,795 1,101,356 26. Share-based Compensation (Continued) (a) 2019 and 2020 Share Incentive Plan 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, 2021, 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 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 US 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 and RSUs of the Group to its employees, directors and consultants. As of December 31, 2021, the maximum number of Class A ordinary shares that may be issued under the 2020 Plan is 165,696,625. The Group began to grant share options and RSUs from 2021 under 2020 Plan. The contractual term is ten years from the grant date and the options and RSUs granted only have service condition. The options and RSUs are generally scheduled to be vested over five years, one-fifth 26. Share-based Compensation (Continued) The following table summarizes activities of the Company’s share options and RSUs under the 2019 Plan and 2020 Plan for the years ended December 31, 2019, 2020 and 2021: Weighted Number of Weighted Average Aggregate Options Average Remaining Intrinsic and Shares Exercise Price Contractual Life Value US$ In Years US$ 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 4,224,000 0.10 Forfeited (2,070,000) 0.10 Outstanding as of December 31, 2020 56,914,000 0.10 5.95 814,724 Granted 36,996,286 0.10 Exercised (6,404,416) 0.10 Forfeited (4,106,000) 0.10 Outstanding as of December 31, 2021 83,399,870 0.10 7.66 1,330,228 Vested and expected to vest as of December 31, 2020 55,413,520 0.10 5.90 793,245 Exercisable as of December 31, 2020 40,410,000 0.10 5.34 578,469 Vested and expected to vest as of December 31, 2021 79,915,157 0.10 6.60 1,274,647 Exercisable as of December 31, 2021 40,251,584 0.10 4.55 642,013 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 and RSUs granted under the Company’s 2019 Plan and 2020 Plan for the years ended December 31, 2019, 2020 and 2021 was US$ 0.99 , US$ 1.71 and US$ 15.78 respectively, computed using the binomial option pricing model. 26. Share-based Compensation (Continued) The fair value of each option granted under the Company’s 2019 Plan and 2020 Plan for the years ended December 31, 2019, 2020 and 2021 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, 2019 2020 2021 Exercise price (US$) 0.10 0.10 0.10 Fair value of the ordinary shares on the date of option grant (US$) 0.90 - 1.45 1.35 - 1.90 14.42-17.35 Risk‑free interest rate 1.98% - 3.17% 0.69% - 1.92% 0.93% - 1.48% Expected term (in years) 10.00 10.00 10.00 Expected dividend yield 0% 0% 0% Expected volatility 47% - 48% 45% - 46% 47% - 48% The 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, 2021, there were US$250,946 of unrecognized compensation expenses related to the share options and RSUs granted to the Group’s employees, which are expected to be recognized over a weighted-average period of 4.28 years and may be adjusted for future changes in forfeitures. (b) 2021 Share Incentive Plan In March 2021, the Group adopted the 2021 Share Incentive Plan (the “2021 Plan”), which granted options to purchase 108,557,400 Class B ordinary shares to Mr. Li Xiang, the Company’s founder and chief executive officer. The exercise price of the options is US$14.63 per share, or US$29.26 per ADS. The date of expiration for this grant is March 8, 2031. The granted options are subject to performance-based vesting conditions. The granted options are divided into six equal tranches, or 18,092,900 each. The first tranche will become vested when the aggregate number of the Group’s vehicle deliveries in any 12 consecutive months exceeds 500,000. The second to sixth tranches will become vested when the aggregate number of vehicle deliveries in any 12 consecutive months exceeds 1,000,000, 1,500,000, 2,000,000, 2,500,000 and 3,000,000, respectively. On May 5, 2021, the board of directors of the Company approved to replace the options to purchase 108,557,400 Class B ordinary shares of the Company under the Company’s 2021 Share Incentive Plan previously granted to Mr. Li Xiang on March 8, 2021 with the same amount of restricted Class B ordinary shares (the ”Award Shares”) under the same plan, all of which will immediately become vested upon grant on May 5, 2021. Mr. Li Xiang has agreed, undertaken, and covenanted not to transfer or dispose of, directly or indirectly, any interest in the Class B ordinary shares acquired upon vesting of the Award Shares, which are subject to certain performance conditions substantially similar to the vesting conditions of the options being replaced. In addition to the performance conditions, Mr. Li Xiang is required to pay US$14.63 per share, which is equal to the exercise price of the options being replaced, to have the relevant tranche of the Award Shares released from the restrictions. Mr. Li Xiang also has agreed, undertaken, and covenanted not to cast any vote or claim any dividend paid on any Award Shares before such number of Award Shares are released from the restrictions. Any Award Shares that are not released from the restrictions by March 8, 2031 are subject to compulsory repurchase by the Company at their par value. 26. Share-based Compensation (Continued) In July 2021, all such 108,557,400 Award Shares were converted from Class B Ordinary Shares (10 votes per share) to Class A Ordinary Shares (1 vote per share) on one-to-one basis with effect immediately upon the Company’s listng on the Main Board of HKEx in August 2021. The modification is solely subjected to satisfy HKEx’s requirement from legal perspective. Pursuant to the grant of the Award shares, Mr. Li Xiang has undertaken and covenanted that unless and until, in respect of any tranche of Award Shares,(a) the relevant performance condition has been met and (b) the relevant exercise price (US$14.63) has been paid, Mr. Li Xiang will not offer, pledge, sell any relating award shares and claim dividend or voting rights in respect of the Award Shares. As of December 31, 2021, the Group did not recognized any compensation expenses for shares granted to Mr. Li Xiang, because the Group considers it is not probable that the performance-based vesting conditions will be satisfied as of December 31, 2021. Therefore, there were US$538,445 of unrecognized compensation expenses related to the restricted shares granted under 2021 Plan as of December 31, 2021. The following table summarizes activities of the Company’s performance-based restricted shares under the 2021 Plan for the year ended December 31, 2021: Number of Weighted Weighted Average Shares Average Exercise Remaining Aggregate Granted Price Contractual Life Intrinsic Value US$ In Years US$ December 31, 2020 — — — — Granted 108,557,400 14.63 December 31, 2021 108,557,400 14.63 9.19 — The weighted-average grant date fair value for restricted shares granted under the Company’s 2021 Plan for the year ended December 31, 2021 was US$4.96, computed using the binomial pricing model. The fair value of the restricted shares granted under the Company’s 2021 Plan was estimated on the date of grant using the binomial pricing model with the assumptions (or ranges thereof) in the following table: For the Year Ended December 31, 2021 Exercise price (US$) 14.63 Fair value of the ordinary shares on the date of restricted shares grant (US$) 10.67 Risk-free interest rate 1.59 % Expected term (in years) 10.00 Expected dividend yield 0 % Expected volatility 47 % Risk-free interest rate is estimated based on the yield curve of US Sovereign Bond as of the valuation date. The expected volatility at the grant date and each 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 restricted shares. 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 restricted shares. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2021 | |
Taxation | |
Taxation | 27. Taxation (a) Value added tax The Group is subject to statutory VAT rate of 13% for revenue from sales of vehicles and spare parts in the PRC. (b) Income taxes 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 and Wheels Technology are qualified as a “high and new technology enterprise” under the EIT Law and are eligible for a preferential enterprise income tax rate of 15%, respectively. The high and new technology enterprise certificate is effective for a period of three years. 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, enterprises engaging in research and development activities were entitled to claim 150% of their research and development expenses incurred as tax deductible expenses when determining their assessable profits for that year (the “R&D Deduction”). The State Taxation Administration of the PRC announced in September 2018 that enterprises engaging in research and development activities would be entitled to claim 175% of their research and development expenses as R&D Deduction from January 1, 2018 to December 31, 2023. Withholding tax on undistributed dividends According to the current EIT Law and its implementation rules, foreign enterprises, which have no establishment or place in China but derive dividends, interest, rents, royalties and other income (including capital gains) from sources in China or which have an establishment or place in China but the aforementioned incomes are not connected with the establishment or place shall be subject to the PRC withholding tax (“WHT”) at 10% (a further reduced WHT rate may be available according to the applicable double tax treaty or arrangement provided that the foreign enterprise is the tax resident of the jurisdiction where it is located and it is the beneficial owner of the dividends, interest and royalties income). 27. Taxation (Continued) The Group does not intend to have any of its PRC subsidiaries or VIEs distribute any undistributed profits of such subsidiaries or VIEs to their direct overseas parent companies, but rather intends that such profits will be permanently reinvested by such subsidiaries and VIEs for their PRC operations. As of December 31, 2020 and 2021, the total amount of undistributed earnings from the Company’s PRC subsidiaries and VIEs that are considered to be permanently reinvested was RMB13,288 and RMB540,906 respectively. As of December 31, 2020 and 2021, determination of the amount of unrecognized deferred tax liability related to the earnings that are indefinitely reinvested is not practical. The tax years ended December 31, 2017 through 2021 for the Company’s PRC subsidiaries and VIEs remain subject to examination by the PRC 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 and income tax expense for the periods presented is as follows: For the Year Ended December 31, 2019 2020 2021 Deferred income tax (benefit)/expense — (22,847) 168,643 Reconciliations of the income tax expense computed by applying the PRC statutory income tax rate of 25% to the Group’s income tax expense for each of the years presented are as follows: For the Year Ended December 31, 2019 2020 2021 Loss before income tax expense (2,417,874) (188,877) (152,812) Income tax credit computed at PRC statutory income tax rate of 25% (604,468) (47,219) (38,203) Tax effect of tax‑exempt entity and preferential tax rate 230,669 30,140 (89,928) Tax effect of R&D Deduction and others (121,177) (144,503) (314,141) Non‑deductible expenses 27,031 21,511 318,185 Change in valuation allowance 467,945 117,224 292,730 Income tax (benefit)/ expenses — (22,847) 168,643 27. Taxation (Continued) (c) Deferred tax 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, 2019 2020 2021 Deferred tax assets Net operating loss carryforwards 717,495 1,144,397 1,119,659 Accrued expenses and others 12,545 66,773 228,734 Impairment of long-lived assets and allowance for credit losses 73,271 7,694 13,224 Acquisition of Changzhou Manufacturing Base Phase I and Phase II (Note 11) — — 11,969 Depreciation and amortization 26,946 16,220 190 Unrealized financing cost 27,520 13,125 — Unrealized investment loss 29,664 — — Total deferred tax assets 887,441 1,248,209 1,373,776 Less: Valuation allowance (887,441) (1,004,665) (1,297,395) Deferred tax assets, net of valuation allowance — 243,544 76,381 Deferred tax liabilities Accelerated tax depreciation and others — (215,030) (195,121) Fair value change of certain investments — (5,667) (15,087) Total deferred tax liabilities — (220,697) (210,208) Deferred tax assets/(liabilities), net — 22,847 (133,827) 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, 2019 2020 2021 Valuation allowance Balance at beginning of the year 419,496 887,441 1,004,665 Additions 467,945 148,458 395,955 Reversal — (31,234) (103,225) Balance at ending of the year 887,441 1,004,665 1,297,395 For the year ended December 31, 2021, 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 2022. 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). 27. Taxation (Continued) As of December 31, 2021, the Group had net operating loss carryforwards of approximately RMB5,624,288 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 2022 to 2031. As of December 31, 2021, deferred tax assets arose from the net operating loss carryforwards amounting to RMB1,083,508 were provided for full valuation allowance, while the remaining RMB36,151 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, 2021. (d) Consumption tax Chongqing Lixiang Automobile, as a subsidiary of the Company, is eligible for consumption tax rate of 3% and related surcharge. The consumption tax is calculated based on the sales price of its self-manufactured vehicles and 3% consumption tax rate from August 2021 and is recorded in cost of sales. As of December 31, 2021, the Group paid RMB287,891 comsumption tax and related surcharge. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurement | |
Fair Value Measurement | 28. 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 and investment in equity securities with readily determinable fair values. The following table presents the major financial instruments measured at fair value, by level within the fair value hierarchy as of December 31, 2020 and 2021. Fair Value Measurement at Reporting Date Using Quoted Prices Fair Value as of in Active Markets for Significant Other Significant December 31, Identical Assets Observable Inputs Unobservable 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 — Fair Value Measurement at Reporting Date Using Quoted Prices Fair Value as of in Active Markets for Significant Other Significant December 31, Identical Assets Observable Inputs Unobservable Inputs 2021 (Level 1) (Level 2) (Level 3) Assets Short-term investments 19,157,428 — 19,157,428 — Equity securities with readily determinable fair value 28,452 28,452 — — Total assets 19,185,880 28,452 19,157,428 — 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 related gain/(loss) amounts are recognized in “interest income and investment income, net” in the consolidated statements of comprehensive loss. Equity securities with readily determinable fair value: Equity securities with readily determinable fair values are marketable equity securities which are 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 related gain/(loss) amounts are recognized in “interest income and investment income, net” in the consolidated statements of comprehensive loss. 28. Fair Value Measurement (Continued) 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 and equity method investments. For investments in equity securities without readily determinable fair value, no measurement event occurred during the periods presented. Impairment charges of 5,000, nil and nil were recognized for the years ended December 31, 2019, 2020 and 2021, respectively. For equity method investments, no impairment loss was recognized for all years presented. The Group recorded RMB18,066, RMB30,381 and RMB38,163 impairment loss of property, plant and equipment and loss on inventory obsolescence for the years ended December 31, 2019, 2020 and 2021, 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 equivalents, 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, and long-term borrowings. 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. Secured borrowing, unsecured corporate loan and convertible debts are measured at amortized cost. Their fair values were 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, 2021 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 29. Commitments and Contingencies (a) Capital commitments 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, 2021 were as follows: Total Less than One Year 1 ‑ 3 Years 3 ‑ 5 Years Over 5 Years Capital commitments 2,920,561 2,798,736 121,825 — — 29. Commitments and Contingencies (Continued) (b) Purchase obligations The Group’s purchase obligations primarily relate to commitments on purchase of raw materials. Total purchase obligations contracted but not yet reflected in the consolidated financial statements as of December 31, 2021 were as follows: Total Less than One Year 1 ‑ 3 Years 3 ‑ 5 Years Over 5 Years Purchase obligations 11,798,199 11,798,199 — — — (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. The unpaid contract amounts were immaterial as of December 31, 2020 and 2021. 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 to Lifan Industry and Lifan Passenger Vehicle. 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, 2020 and 2021. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Balances and Transactions | |
Related Party Balances and Transactions | 30. 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 Beijing Judianchuxing Technology Limited (“Beijing Judianchuxing”) Affiliate Beijing Sankuai Online Technology Co., Ltd. (“Beijing Sankuai ”) Controlled by Principal Shareholder Suzhou Yihang Intelligent Technology Co., Ltd. (“Suzhou Yihang”) Affiliate Changzhou Huixiang New Energy Auto Parts Co., Ltd. (“Changzhou Huixiang”) Affiliate 30. Related Party Balances and Transactions (Continued) The Group entered into the following significant related party transactions: For the Year Ended December 31, 2019 2020 2021 Purchase materials from Beijing Yihang 6,914 58,361 31,692 Purchase R&D service from Beijing Yihang 25,106 4,368 12,176 Purchase R&D service from Suzhou Yihang — — 3,772 Purchase service from Beijing Sankuai — — 969 Purchase equipment and installation service from Airx 1,994 — — Sales of battery packs and materials to Neolix Technologies 1,943 — — The Group had the following significant related party balances: As of December 31, 2020 2021 Due from Neolix Technologies 678 678 Due from Beijing Yihang — 334 Total 678 1,012 As of December 31, 2020 2021 Due to Changzhou Huixiang (See Note 13) — 30,000 Due to Beijing Yihang 19,183 7,102 Due to Beijing Sankuai — 330 Due to Airx 23 23 Total 19,206 37,455 |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2021 | |
Restricted Net Assets. | |
Restricted Net Assets | 31. 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 US 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. 31. Restricted Net Assets (Continued) 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 RMB7,644,467 and RMB11,417,468 as of December 31, 2020 and 2021, 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, 2020 and 2021 and for the years ended December 31, 2019, 2020 and 2021 are disclosed in Note 32. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2021 | |
Parent Company Only Condensed Financial Information | |
Parent Company Only Condensed Financial Information | 32. 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 US 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, 2020 and 2021. 32. Parent Company Only Condensed Financial Information (Continued) Condensed balance sheets As of December 31, 2020 2021 RMB RMB ASSETS Current assets: Cash and cash equivalents 1,149,374 14,762,875 Time deposits and short-term investments 14,486,070 7,020,662 Amounts due from subsidiaries of the Group 14,065,341 23,763,053 Prepayments and other current assets — 10,211 Total current assets 29,700,785 45,556,801 Non-current assets: Investments in subsidiaries, VIEs and VIEs' subsidiaries 42,754 890,788 Long-term investments 64,916 28,452 Total non-current assets 107,670 919,240 Total assets 29,808,455 46,476,041 LIABILITIES Current liabilities: Accruals and other current liabilities 4,858 13,798 Total current liabilities 4,858 13,798 Non-current liabilities: Long-term borrowings — 5,397,941 Total non-current liabilities — 5,397,941 Total liabilities 4,858 5,411,739 SHAREHOLDERS' (DEFICIT)/EQUITY Class A Ordinary Shares 1,010 1,176 Class B Ordinary Shares 235 235 Treasury shares — (89) Additional paid-in capital 37,289,761 49,390,486 Accumulated other comprehensive loss (1,005,184) (1,521,871) Accumulated deficit (6,482,225) (6,805,635) Total shareholders' equity 29,803,597 41,064,302 Total liabilities and shareholders' equity 29,808,455 46,476,041 32. Parent Company Only Condensed Financial Information (Continued) Condensed statements of comprehensive loss For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Operating expenses: Selling, general and administrative (5,114) (9,424) (27,288) Research and development — — (852) Total operating expenses (5,114) (9,424) (28,140) Loss from operations (5,114) (9,424) (28,140) Other income/(expense) Interest expense (9,332) — (21,369) Interest income 20,505 4,467 10,746 Equity in loss of subsidiaries, VIEs and VIEs’ subsidiaries (2,031,371) (520,093) (563,106) Change in fair value of warrants and derivative liabilities (426,425) 272,327 — Investment income, net 14,880 106,823 272,991 Foreign exchange loss (1,084) (5,861) (3,023) Others, net (595) 104 10,446 Loss before income tax expense (2,438,536) (151,657) (321,455) Income tax expense — — — Net loss (2,438,536) (151,657) (321,455) Accretion on convertible redeemable preferred shares to redemption value (743,100) (651,190) — 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 — Net loss attributable to ordinary shareholders of Li Auto Inc. (3,281,607) (791,985) (321,455) Net loss (2,438,536) (151,657) (321,455) Other comprehensive income/(loss), net of tax Foreign currency translation adjustment, net of tax 2,851 (1,020,728) (516,687) Total comprehensive loss, net of tax (2,435,685) (1,172,385) (838,142) 32. Parent Company Only Condensed Financial Information (Continued) Condensed statements of cash flows For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB CASH FLOWS FROM OPERATING ACTIVITIES Net cash provided by operating activities 26,492 109,961 367,063 CASH FLOWS FROM INVESTING ACTIVITIES Payments to, and investments in subsidiaries, VIEs and VIEs' subsidiaries (4,384,396) (10,006,889) (10,157,678) Placement of time deposits (1,725,148) — (298,284) Redemption of time deposits 1,265,877 463,527 297,654 Placement of short-term investments (35,157) (75,367,086) (173,133,568) Redemption of short-term investments — 60,452,428 180,386,757 Net cash used in investing activities (4,878,824) (24,458,020) (2,905,119) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs 5,254,333 3,851,034 — Proceeds from issuance of convertible debts 168,070 — 5,533,238 Proceeds from IPOs and concurrent private placements, net of issuance cost — 11,034,685 11,004,778 Proceeds from follow-on offering, net of issuance costs — 9,990,955 — Proceeds from exercise of share options — — 1,139 Proceeds from issuance of ordinary shares — — 70 Net cash provided by financing activities 5,422,403 24,876,674 16,539,225 Effects of exchange rate changes on cash and cash equivalents 25,595 (20,248) (387,668) Net increase in cash, cash equivalents 595,666 508,367 13,613,501 Cash, cash equivalents at beginning of the year 45,341 641,007 1,149,374 Cash, cash equivalents at end of the year 641,007 1,149,374 14,762,875 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 Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Event | |
Subsequent Event | 33. Subsequent Event In December 2021, one of the Group’s subsidiaries, entered into an agreement to invest a 70% equity interest in a joint venture (another shareholder holding the remaining 30% equity interest) established to design, produce and sell automotive power module and electronics products. In April 2022, this transaction was closed (cash consideration in the amount of RMB210,000) and the Group obtained control over the joint venture. Upon obtaining contol, the Group consolidated the joint venture with a non-controlling interest. 33. Subsequent Event (Continued) In March 2022, one of the Group’s subsidiaries, entered into an agreement with Xin Wang Da Eletronic Limited (“Xin Wang Da Eletronic”) to purchase certain series Pre-A preferred shares of Xin Wang Da Electric Vehicle and Battery Limited, a subsidiary of Xin Wang Da Eletronic. This tranaction (cash consideration in the amount of RMB400,000), resulted in the Group’s approximately 3.2% equity ownership in the Xin Wang Da Electric Vehicle and Battery Limited. The Group accounted for the investment using the measurement alternative, recording the investment at cost, adjusted for subsequent observable price changes and impairments, if any. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Basis of presentation | (a) Basis of presentation 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) Principles of consolidation 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) Use of estimates 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 and derivative instruments, 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 and intangible assets with indefinite lives, the provision for credit losses of financial assets, inventory valuation for excess and obsolete inventories, lower of cost and net realizable value of inventories, product warranties, determination of vendor rebates, assessment of variable lease payments, and valuation allowance for deferred tax assets. Actual results could differ from those estimates. |
Functional currency and foreign currency translation | (d) Functional currency and foreign currency translation 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 (“RMB”). 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. Exchange gains or losses arising from foreign currency transactions are included in the consolidated statements of comprehensive loss. 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/(loss) in the consolidated statements of comprehensive loss, and the accumulated foreign currency translation adjustments are presented as a component of accumulated other comprehensive income/(loss) in the consolidated statements of shareholders’ (deficit)/equity. Total foreign currency translation adjustment income was RMB2,851 for the year ended December 31, 2019 and the foreign currency translation adjustment loss were RMB1,020,728 and RMB516,687 for the years ended December 31, 2020 and 2021 respectively. |
Convenience translation | (e) Convenience translation 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, 2021 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.3726, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 30, 2021. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2021, or at any other rate. |
Cash, cash equivalents and restricted cash | (f) Cash, cash equivalents and restricted cash 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, 2020 and 2021, 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 RMB17,844 and RMB33,540, 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 15). 2. Summary of Significant Accounting Policies (Continued) 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, 2020 2021 Cash and cash equivalents 8,938,341 27,854,224 Restricted cash 1,234,178 2,638,840 Total cash, cash equivalents and restricted cash 10,172,519 30,493,064 |
Time deposits and short-term investments | (g) Time deposits and short-term investments 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 “Interest income and investment income, net.” |
Trade receivables and current expected credit losses | (h) Trade receivables and current expected credit losses Trade receivable primarily include amounts of vehicle sales related to government subsidies to be collected from the government on behalf of customers. The Group provides an allowance against trade receivable based on the expected credit loss approach (see below) and writes off trade receivable when they are deemed uncollectible. No material allowance for doubtful accounts for trade receivable was recognized for the years ended December 31, 2019 and 2020. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses The Group adopted this ASC 326 and several associated ASUs on January 1, 2021 using a modified retrospective approach with a cumulative effect recorded as an increase of accumulated deficit in the amount of RMB1,955. As of January 1, 2021, upon the adoption, the expected credit loss provision for the current assets and non-current assets were RMB972 and RMB983, respectively. For the year ended December 31, 2021, the Group recorded RMB6,415 in expected credit losses in selling, general and administrative expenses. As of December 31, 2021, the expected credit loss provision recorded in current assets and non-current assets were RMB2,659 and RMB3,757, respectively. 2. Summary of Significant Accounting Policies (Continued) The Group typically does not carry significant trade receivable related to vehicle sales and related sales as customer payments are due prior to vehicle delivery, except for amounts of vehicle sales in relation to government subsidies to be collected from the government on behalf of customers. Other current assets and other non-current assets primarily consist of other receivables and deposits. The following table summarizes the activity in the allowance for credit losses related to trade receivable, other current assets and other non-current assets for the year ended December 31, 2021: For the year ended December 31, 2021 Balance as of December 31, 2020 — Impact of adoption of ASC 326 1,955 Balance as of January 1, 2021 1,955 Provisions 6,415 Write-offs (1,954) Balance as of December 31, 2021 6,416 |
Derivative instruments | (i) Derivative instruments Derivative instruments are measured at fair value and recognized as either assets or liabilities on the consolidated balance sheets in either other current or non-current assets or other current liabilities or non-current liabilities depending upon maturity and commitment. Changes in the fair value of derivatives are either recognized periodically in the consolidated statements of comprehensive loss or in other comprehensive income/(loss) depending on the use of the derivatives and whether they qualify for hedge accounting. The Group selectively uses financial instruments to manage market risk associated with exposure to fluctuations in foreign currency rates with foreign exchange forwards and option contracts. These financial exposures are monitored and managed by the Group as an integral part of its risk management program. The Group does not engage in derivative instruments for speculative or trading purposes. The Group’s derivative instruments are not qualified for hedge accounting, thus changes in fair value are recognized in “Interest income and investment income, net” in the consolidated statements of comprehensive loss. The cash flows of derivative financial instruments are classified in the same category as the cash flows from the items subject to the economic hedging relationships. The estimated fair value of the derivatives is determined based on relevant market information. These estimates are calculated with reference to the market rates using industry standard valuation techniques. Derivative instruments are presented as net if rights of setoff exist, with all of the following conditions met: (a) each of two parties owes the other determinable amounts; (b) the reporting party has the right to set off the amount owed with the amount owed by the other party; (c) the reporting party intends to set off; and (d) the right of setoff is enforceable at law. As of December 31, 2021, the outstanding balance of derivative instruments was nil due to maturity of derivative instruments. The Company recorded the fair value gain of RMB73,824 in Interest income and investment income, net on the consolidated statement of comprehensive loss for the year ended December 31, 2021. |
Inventories | (j) Inventories 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, 2019 and 2020. The inventory write-downs for the year ended December 31, 2021 were immaterial. |
Property, plant and equipment, net | (k) Property, plant and equipment, net 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. Interest expense on specific outstanding debt is capitalized during the period of significant capital asset construction. Capitalized interest expense on construction-in-progress is included within property, plant and equipment and is amortized over the life of the related assets. Motor vehicles represent vehicles used for the Group’s daily operation, including driving testing purpose. 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 2 to 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 | (m) Intangible assets, net Definite lived intangible assets are carried at cost less accumulated amortization and impairment, if any. Definite lived intangible assets are amortized using the straight-line method over the estimated useful lives as below: Useful Lives Software and Patents 5 to 10 years The Company estimates the useful life of the software and patents to be 5 to 10 years based on the contract terms, expected technical obsolescence and innovations and industry experience of such intangible assets. Intangible assets that have indefinite useful life represent the automotive manufacturing permission, which is necessary to produce the passenger vehicles. No useful life was determined in the contract terms when the Company acquired the automotive manufacturing permission. The Company expects that the automotive manufacturing permission is unlikely to be terminated based on industry experience and will continue to contribute revenue in the future. Therefore, the Company considers the useful life of this intangible assets to be indefinite. |
Impairment of long-lived assets and intangible assets with indefinite lives | (n) Impairment of long-lived assets and intangible assets with indefinite lives 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 ASC 360. 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. RMB18,066, RMB30,381 and RMB27,389 impairment of long-lived assets were recognized for the years ended December 31, 2019, 2020 and 2021, respectively. 2. Summary of Significant Accounting Policies (Continued) 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. In consideration of the growing electric vehicle industry in China, the Group’s improving financial performance, the stable macroeconomic conditions in China and the Group’s future manufacturing plans, the Company determined that it is not likely that the indefinite-lived intangible assets was impaired as of December 31, 2019, 2020 and 2021. |
Long-term investments | (o) 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 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 | (p) Employee benefits 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 RMB168,019, RMB133,162 and RMB482,536 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Product warranties | (q) Product warranties 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 by multiplying the expected unit costs for warranty services by the sales volume, 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. In November 2020, the Group initiated the voluntary recall for vehicles produced on or before June 1, 2020 and communicated its intention to replace, free of charge, the control arm ball joint of the front suspension of Li ONEs in accordance with necessary safety measures. In addition to product warranties, the Company recognized the estimated costs of the recall as incurred. The accrued warranty activity consists of the following: For the Year Ended December 31, 2019 2020 2021 Accrued warranty at beginning of the year — 6,996 233,366 Warranty cost incurred (163) (8,258) (22,558) Provision for warranty 7,159 234,628 631,537 Accrued warranty at end of the year 6,996 233,366 842,345 Including: Accrued warranty, current 1,477 55,138 154,276 Accrued warranty, non-current 5,519 178,228 688,069 |
Revenue recognition | (r) Revenue recognition 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. The Group released the 2021 Li ONE in May 2021, which is upgraded version of Li ONE and terminated the production of the first model Li ONE in May, 2021(Note 9). Revenues of the Group are primarily derived from sales of vehicle, along with multiple distinct performance obligations within each sale of vehicle, as well as the sales of Li Plus Membership. The Group adopted ASC 606, Revenue from Contracts with Customers 2. Summary of Significant Accounting Policies (Continued) 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 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 2. Summary of Significant Accounting Policies (Continued) 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. Since July 2020, the Group was no longer eligible for the government subsidies as the Group’s selling price of vehicles is higher than theshold in the circular issued by the certain PRC authorities. 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 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. 2.Summary of Significant Accounting Policies (Continued) Sales of Automotive Regulatory Credits Pursuant to the measurements and policies promulgated by China’s Ministry of Industry and Information Technology (“MIIT”), each of the vehicle manufacturers or importers above a certain scale is able to earn Automotive Regulatory Credits by manufacturing or importing New Energy Vehicle (“NEV”). The Automotive Regulatory Credits are tradable and sold to other companies through a credit management system established by MIIT. The Company earns the tradable new energy vehicle credits from the production of the Company’s electric vehicles. The Company sells these credits at agreed price to other regulated entities who can use the credits to comply with the regulatory requirements. The Company recognized revenue on the sale of Automotive Regulatory Credits at the time control of the Automotive Regulatory Credits were transferred to the purchasing party in September 2021 as MIIT has completed the review and approved the sale of Automotive Regulatory Credits, the related NEV Credits have been transferred to purchasing party. The full consideration for sale of Automotive Regulatory Credits was collected by the Company in the fourth quarter of 2021. 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 | (s) Cost of sales 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 | (t) Research and development expenses Research and development (“R&D”) expenses are primary comprised of salaries, bonuses, benefits and share-based compensation for those employees engaged in research, design and development activities; design and development expenses, primarily includes 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 | (u) Sales and marketing expenses 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 | (v) General and administrative expenses General and administrative expenses consist primarily of salaries, bonuses, benefits and share-based compensation 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 | (w) Fair value 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 | (x) Share-based compensation 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 qualified 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 US IPO, using the graded-vesting method. This performance condition was met upon the completion of the Company’ US 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 graded 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 | (y) Taxation 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 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, 2020 and 2021. |
Discontinued operations | (z) Discontinued operations 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 22. 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 | (aa) Leases The Group accounts for leases in accordance with ASC 842, Leases 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 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) Loss per share Basic net loss per share is computed using the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net loss is not allocated to other participating securities if based on their contractual terms they are not obligated to share in the loss. 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 US IPO, and ordinary shares issuable upon the exercise of outstanding share options using the treasury stock method and ordinary shares issuable upon the conversion of convertible debt using the if-converted method. Potential ordinary shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive. |
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 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, 2021 | |
Variable Interest Entity [Line Items] | |
Schedule of Company's principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | Equity Interest Held Date of Incorporation or Date of Acquisition Place of Incorporation Principal Activities Notes 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 Beijing Leading Automobile Sales Co., Ltd.(“Beijing Leading”) 100 % August 6, 2019 Beijing, PRC Sales and after sales management Jiangsu Xindian Interactive Sales and Services Co., Ltd. (“Jiangsu XD”) 100 % May 08, 2017 Changzhou, PRC Sales and after sales management (i) Jiangsu CHJ Automobile Co., Ltd. (“Jiangsu CHJ”) 100 % June 23, 2016 Changzhou, PRC Purchase of manufacturing equipment (i) Lixiang Zhizao Automobile Sales & Services (Beijing) Co., Ltd 100 % July 13, 2018 Beijing, PRC Sales and after sales management (i) Lixiang Zhixing Automobile Sales & Services (Shanghai) Co., Ltd 100 % April 12, 2019 Shanghai, PRC Sales and after sales management (i) Lixiang Zhizao Automobile Sales & Services (Chengdu) Co., Ltd 100 % July 9, 2018 Chengdu, PRC Sales and after sales management (i) Date of Incorporation Place of Incorporation Principal Activities Notes VIEs Beijing CHJ Information Technology Co., Ltd. (“Beijing CHJ”) April 10, 2015 Beijing, PRC Technology development Beijing Xindian Transport Information Technology Co., Ltd. (“Xindian Information”) March 27, 2017 Beijing, PRC Technology development VIEs’ subsidiary Chongqing Lixiang Automobile Co., Ltd. (“Chongqing Lixiang Automobile”) October 11, 2019 Chongqing, PRC Manufacturing of automobile (ii) Notes: (i) All the subsidiaries were VIE’s subsidiaries before the 2021 Reorganization. (ii) Upon the completion of 2021 Reorganization, Beijing CHJ and Leading Ideal HK’s subsidiary each held 50% of equity interest of Chongqing Lixiang Automobile which was previously a wholly owned subsidiary of Beijing CHJ. |
VIEs and VIEs' subsidiaries | |
Variable Interest Entity [Line Items] | |
Schedule of consolidated financial information of the Group's VIEs and VIEs' subsidiaries | As of December 31, 2020 2021 RMB RMB Current assets: Cash and cash equivalents 1,546,193 5,311,800 Restricted cash 1,234,178 2,415,941 Time deposits and short-term investments 2,581,690 8,326,541 Trade receivable 103,271 103,056 Amounts due from the Group companies 7,704,630 23,402,104 Inventories 271,379 1,396,992 Prepayments and other current assets 254,061 220,402 Non ‑ current assets: Investment in subsidiaries 609,748 — Long‑term investments 97,937 97,854 Property, plant and equipment, net 2,335,824 2,329,507 Operating lease right‑of‑use assets, net 1,182,134 731,874 Intangible assets, net 682,083 703,274 Other non‑current assets 218,531 1,107,674 Total assets 18,821,659 46,147,019 Current liabilities: Short‑term borrowings — 31,547 Trade and notes payable 3,107,646 8,547,181 Amounts due to the Group companies 12,203,705 31,999,140 Amounts due to related parties 19,206 1,277 Operating lease liabilities, current 170,033 80,606 Deferred revenue, current 230,720 — Accruals and other current liabilities 453,731 515,036 Non ‑ current liabilities: Long-term borrowings 511,638 479,453 Deferred revenue, non‑current 102,898 8,704 Operating lease liabilities, non‑current 973,455 719,628 Finance lease liabilities, non‑current 366,883 — Deferred tax liabilities, non-current 36,309 153,723 Other non‑current liabilities 157,907 14,333 Total liabilities 18,334,131 42,550,628 Total shareholders’ equity 487,528 3,596,391 Total liabilities and shareholders’ equity 18,821,659 46,147,019 For the Year Ended December 31, 2019 2020 2021 Third-party revenues 284,367 8,001,067 6,294,675 Inter-company revenues 974,313 8,553,798 22,287,788 Third-party cost (284,462) (7,790,586) (20,171,861) Inter-company cost (352,672) (7,877,944) (5,891,611) Third-party expenses (1,675,643) (1,358,507) (2,401,187) Inter-company expenses — (25,858) (65,750) Share of loss from subsidiaries (5,783) (1,179) (13) Other (expense)/income (174,403) 40,309 2,610,121 (Loss)/Income before income tax expenses (1,234,283) (458,900) 2,662,162 Less: income tax expenses — (36,309) (117,413) Net (loss)/income from continuing operations (1,234,283) (495,209) 2,544,749 Net (loss)/income from discontinued operations (20,662) 14,373 — Net (loss)/income (1,254,945) (480,836) 2,544,749 Less: Net (loss)/income attributable to non-controlling interests (5,971) 5,075 — Net (loss)/income attributable to ordinary shareholders of Li Auto Inc. (1,260,916) (475,761) 2,544,749 For the Year Ended December 31, 2019 2020 2021 Net cash provided by inter-company transactions — 2,194,342 7,341,282 Net cash (used in)/provided by other transactions (1,607,435) 1,346,069 (8,693,141) Net cash (used in)/provided by operating activities (1,607,435) 3,540,411 (1,351,859) Inter-company loan financing to Group companies — — — Other investing activities with external entities (1,976,964) (1,665,982) (8,641,045) Net cash used in investing activities (1,976,964) (1,665,982) (8,641,045) Inter-company loan financing from Group companies 3,782,378 795,295 14,858,966 Other financing activities with external entities — (144,700) 81,308 Net cash provided by financing activities 3,782,378 650,595 14,940,274 Effects of exchange rate changes on cash, cash equivalents and restricted cash 19,746 (188) — Net increase in cash, cash equivalents and restricted cash 217,725 2,524,836 4,947,370 Cash, cash equivalents and restricted cash at beginning of the year 37,810 255,535 2,780,371 Cash, cash equivalents and restricted cash at end of the year 255,535 2,780,371 7,727,741 Less: Cash, cash equivalents and restricted cash of discontinued operations at end of the year 147 — — Cash, cash equivalents and restricted cash of continuing operations at end of the year 255,388 2,780,371 7,727,741 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Schedule of cash, cash equivalents and restricted cash | As of December 31, 2020 2021 Cash and cash equivalents 8,938,341 27,854,224 Restricted cash 1,234,178 2,638,840 Total cash, cash equivalents and restricted cash 10,172,519 30,493,064 |
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 2 to 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 Software and Patents 5 to 10 years |
Schedule of accrued warranty activity | For the Year Ended December 31, 2019 2020 2021 Accrued warranty at beginning of the year — 6,996 233,366 Warranty cost incurred (163) (8,258) (22,558) Provision for warranty 7,159 234,628 631,537 Accrued warranty at end of the year 6,996 233,366 842,345 Including: Accrued warranty, current 1,477 55,138 154,276 Accrued warranty, non-current 5,519 178,228 688,069 |
Schedule of accounts notes loans and financing receivable | For the year ended December 31, 2021 Balance as of December 31, 2020 — Impact of adoption of ASC 326 1,955 Balance as of January 1, 2021 1,955 Provisions 6,415 Write-offs (1,954) Balance as of December 31, 2021 6,416 |
Trade receivable (Tables)
Trade receivable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade receivable | |
Schedule of aging analysis of trade receivable | As of December 31, 2020 2021 Within 3 months 10,429 16,462 Between 3 months and 6 months 18,914 890 Between 6 months and 1 year 77,903 — More than 1 year 8,303 103,189 Total 115,549 120,541 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Summary of inventories | As of December 31, 2020 2021 Raw materials, work in process and supplies 227,836 1,468,801 Finished products 820,168 149,089 Total 1,048,004 1,617,890 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments and Other Current Assets | |
Summary of prepayments and other current assets | As of December 31, 2020 2021 Prepayments to vendors 104,271 218,660 Deductible VAT input 196,021 118,177 Prepaid rental and deposits 30,357 48,929 Receivables related to rebate — 28,491 Loan receivable from Lifan Holdings (i) 8,000 — Others 15,006 68,615 Less:Allowance for Credit Losses — (2,192) Total 353,655 480,680 (i) Loan receivable from Lifan Holdings represents the uncollected loan principal under the loan agreements entered into between Beijing CHJ and Lifan Holdings in 2018 (the “2018 Lifan Loan”) and 2019 (the “2019 Lifan Loan”). The outstanding loan receivable from Lifan Holdings was settled against the payables for consideration payble for the acquistion of Chongqing Zhizao in April 2021 (Note 5). |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment, Net. | |
Summary of property, plant and equipment and related accumulated depreciation | As of December 31, 2020 2021 Construction in process (i) 53,579 1,942,953 Mold and tooling 987,316 1,098,392 Production facilities 787,970 804,281 Leasehold improvements 249,879 660,902 Buildings 404,772 409,123 Buildings improvements 311,947 297,163 Equipment 175,887 266,745 Motor vehicles 36,409 59,702 Total 3,007,759 5,539,261 Less: Accumulated depreciation (498,691) (983,222) Less: Accumulated impairment loss (ii) (30,381) (57,770) Total property, plant and equipment, net 2,478,687 4,498,269 The Group recorded depreciation expenses of RMB107,173, RMB312,011 and RMB579,097 for the years ended December 31, 2019, 2020 and 2021, respectively. (i) Construction in process is primarily comprised of production facilities, equipment and mold and tooling related to manufacturing of the extended-range eletric SUV vehicles and BEV models and a portion of Changzhou Manufacturing Base construction. In July 2021, the Group signed a memorandum and a series of agreements (collectively “Beijing Manufacturing Base Agreements”) for collaboration in a construction and expansion project of an automobile manufacturing plant in Shunyi District, Beijing with an enterprise affiliated with Beijing local government. In October 2021, the Group officially commenced construction of Beijing Manufacturing Base which is scheduled to be operational in 2023. As of December 31, 2021, RMB (ii) Impairments of RMB18,066, RMB30,381 and RMB27,389 were recognized for property, plant and equipment for the years ended December 31, 2019, 2020 and 2021, respectively. As of December 31, 2019, 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. Furthermore, the Group launched 2021 Li ONE in May 2021, consequently, the production volume of the first model Li ONE is expected to gradually decrease in line with sales volume. As of December 31, 2021, the Group recorded an impairment loss on the production facilities and mold and tooling in connection with the production of the first model Li ONE accordingly as the carrying value of these assets are not expected to be recovered in the foreseeable future. The impairment loss for the year ended December 31, 2021 is immaterial. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net | |
Summary of intangible assets and related accumulated amortization | As of December 31, 2020 2021 Automotive Manufacturing Permission (Note 5) 647,174 647,174 Indefinite ‑ lived intangible assets, net 647,174 647,174 Software 58,097 137,576 Patents 694 694 Definite ‑ lived intangible assets 58,791 138,270 Less: Accumulated amortization Software (21,990) (33,290) Patents (694) (694) Accumulated amortization (22,684) (33,984) Definite ‑ lived intangible assets, net 36,107 104,286 Total intangible assets, net 683,281 751,460 |
Summary of amortization expenses related to intangible assets for future periods | As of December 31, 2021 2022 16,540 2023 14,121 2024 11,348 2025 9,815 2026 and thereafter 52,462 Total 104,286 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Schedule of components of lease expenses | For the Year Ended December 31, 2019 2020 2021 Lease cost Finance lease cost: Amortization of assets 15,501 15,346 12,122 Interest of lease liabilities 19,943 21,851 19,322 Operating lease cost 86,365 176,788 367,375 Short‑term lease cost 6,801 4,937 15,559 Total 128,610 218,922 414,378 |
Supplemental cash flows information related to leases | For the Year Ended December 31, 2019 2020 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows payments for operating leases 77,643 126,418 346,757 Right-of-use assets obtained in exchange for lease liabilities: Right-of-use assets obtained in exchange for new operating lease liabilities 207,902 896,804 1,120,392 |
Supplemental balance sheet information related to operating leases | As of December 31, 2020 2021 Operating Leases Land use rights, net (i, ii) 181,505 289,810 Operating lease right-of-use assets, net (excluding land use rights) 1,095,501 1,771,682 Total operating lease assets 1,277,006 2,061,492 Operating lease liabilities, current 210,531 473,245 Operating lease liabilities, non-current 1,025,253 1,369,825 Total operating lease liabilities 1,235,784 1,843,070 i) Changzhou Manufacturing 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 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 and recognized as property, plant and equipment of the Group. 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. 11. Leases (Continued) ii) Changzhou Manufacturing 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 Manufacturing Phase II was completed on January 1, 2019. In August 2019, the Group entered into an asset transfer agreement to sell the Manufacturing 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 Manufacturing 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 consideration from the third-party Developer and recorded as the short-term borrowing in the consolidated balance sheets. |
Supplemental balance sheet information related to finance leases | As of December 31, 2020 2021 Finance Leases Property, plant and equipment, at cost (i, iv) 294,269 — Accumulated depreciation (56,682) — Property, plant and equipment, net 237,587 — Finance lease liabilities, non-current 366,883 — Total finance leases liabilities 366,883 — i) Changzhou Manufacturing 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 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 and recognized as property, plant and equipment of the Group. 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. iv) Acquisition of Changzhou Manufacturing Base Phase I and Phase II and termination of lease agreements In November 2021, Jiangsu CHJ, as a subsidary of the Group, entered into an equity transfer agreement to acquire 100% equity interests of Changzhou Chehejin which owns the legal title of Changzhou Manufacturing Base Phase I and Phase II Land use rights and Plants. According to the equity transfer agreement, the total consideration for this transaction was RMB567,118 in cash, of which RMB565,500 was paid as of December 31, 2021, and RMB28,491 was settled in January 2022. Upon the completion of the transaction, the legal titles of Changzhou Manufacturing Base Phase I and II, including Land use rights and Plants, were transferred to the Group, and the original lease agreements were terminated accordingly. There were no inputs and susbstantive processes acquired to siginificantly contribute to the ability to creat the output. No system, standard, protocol, convention, or rule that can create or has the ability to contribute to the creation of outputs were obtained by Jiangsu CHJ. Therefore, this transaction is determined to be an asset acquisition as no sufficient inputs and processes were acquired to produce outputs. According to ASC 842-20-40-2 |
Schedule of weighted-average remaining lease term and discount rate | As of December 31, 2020 2021 Weighted-average remaining lease term Land use rights 47 years 47 years Operating leases 11 years 8 years Finance leases 16 years — Weighted-average discount rate Land use rights 6.2 % — Operating leases 5.8 % 5.8 % Finance leases 6.2 % — |
Schedule of maturities of finance lease liabilities | As of December 31, 2021 Operating leases Finance leases 2021 — — 2022 473,477 — 2023 372,077 — 2024 242,358 — 2025 178,605 — 2026 155,296 — Thereafter 953,835 — Total undiscounted lease payments 2,375,648 — Less: imputed interest (532,578) — Total lease liabilities 1,843,070 — |
Schedule of maturities of operating lease liabilities | As of December 31, 2021 Operating leases Finance leases 2021 — — 2022 473,477 — 2023 372,077 — 2024 242,358 — 2025 178,605 — 2026 155,296 — Thereafter 953,835 — Total undiscounted lease payments 2,375,648 — Less: imputed interest (532,578) — Total lease liabilities 1,843,070 — |
Other Non-current Assets (Table
Other Non-current Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Non-current Assets | |
Schedule of other non-current assets | As of December 31, 2020 2021 Prepayments for purchase of property, plant and equipment (i) 126,006 1,051,415 Long-term deposits 149,235 653,030 Deductible VAT input, non-current — 263,390 Others 45,943 16,998 Less: Allowance for credit losses — (3,757) Total 321,184 1,981,076 (i) Prepayments for purchase of property, plants and equipment primarily consists of production facilities, leasehold improvements, equipment and mold and tooling related to manufacturing of the extended-range eletric SUV vehicles and BEV models and a portion of Beijing Manufacturing Base construction. |
Long term Investments (Tables)
Long term Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Investments. | |
Schedule of long-term investments | Equity Security With Equity Securities Without Readily Determinable Readily Determinable Fair Equity Method Fair Values Values Total 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 Additions 30,000 — — 30,000 Shares of loss of equity method investees (83) — — (83) Fair value change through earnings — (35,330) — (35,330) Foreign currency translation — (1,134) — (1,134) Balance at December 31, 2021 34,704 28,452 93,150 156,306 |
Schedule of carrying amount and fair value of equity securities with readily determinable fair values | Foreign Currency Cango Inc. Cost Basis Unrealized Loss Translation Fair Value As of December 31, 2020 100,303 (38,205) 2,818 64,916 As of December 31, 2021 100,303 (73,535) 1,684 28,452 |
Short-term Borrowings and Lon_2
Short-term Borrowings and Long-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Borrowings and Long-term Borrowings | |
Schedule of short-term and long-term borrowings | Borrowings consist of the following: Interest Rate As of December 31, Maturity Date Principal Amount Per Annum 2020 2021 Secured borrowing (1) December 31, 2022 RMB 94,550 6.1750 % 98,717 — Unsecured corporate loan (2) June 30, 2022 RMB 401,073 6.1750 % 412,921 — Convertible debt (3) May 1, 2028 US$ 862,500 0.2500 % — 5,397,941 Secured bank loan (4) September 28, 2029 RMB 600,000 4.8000 % — 600,000 Total borrowings 511,638 5,997,941 Classified as: As of December 31, 2020 2021 – Short-term borrowings — 37,042 – Long-term borrowings 511,638 5,960,899 Total 511,638 5,997,941 (1) As the transaction in relation to Changzhou Manufacturing 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. Upon the completion of acquisition of Changzhou Manufacturing Base Phase I and Phase II (See Note 11), the balance of secured borrowing of RMB 101,882 was settled as the lease agreements were terminated in November 2021. (2) Pursuant to the supplemental agreements of the convertible loan in June 2020 (Note 17), 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. The balance of unsecured corporate loan and accrued interest was RMB 412,921 as of December 31, 2020. The Company fully repaid the outstanding principal and accrued interest of RMB 429,692 in August 2021. (3) In April 2021, the Company issued and sold convertible debt in an aggregate principal of US $862,500 through a private placement (Note 17). The convertible debt will mature in 2028, bearing the interest at a rate of 0.25% per annum. The related interest is payable semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2021. The net proceeds from this offering were approximately US $844,876 , equivalent to RMB 5,533,238 . The convertible debt may be converted, at an initial conversion rate of 35.2818 ADS per US$1,000 principal amount (which represents an initial conversion price of approximately US$28.34 per ADS) at each holder’s option at any time on or after November 1, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date of May 1, 2028. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, either cash, ADSs, or a combination of cash and ADSs, at its election. Holders of the convertible debt have the rights to require the Company to repurchase all or a portion for their convertible debt on May 1, 2024 and May 1, 2026 or in the event of certain fundamental changes, at a repurchase price equal to 100% of the principal amount of the convertible debt to be repurchased, plus accrued and unpaid interest. 14. Short-term Borrowings and Long-term Borrowings (Continued) The Company accounted for the convertible debt as single instruments measured at its amortized cost as long-term borrowings on the consolidated balance sheets. The issuance costs were recorded as an adjustment to the long-term borrowings and are amortized as interest expense using the effective interest method over the contractual life to the maturity date (i.e., May 1, 2028). For the year ended December 31, 2021, the convertible debt related interest expense was US$3,353 (RMB21,369). As of December 31, 2021, the principal amount of the convertible debt was RMB5,499,041 and the unamortized debt issuance cost was RMB101,100, respectively. (4) In September 2021, the Group entered into a loan facility agreement with a commercial bank in the PRC, which allows the Group to draw borrowings up to RMB 1,009,900 as of periods ended September 28, 2029. The borrowings bear annual interest rate of 4.8% and were guaranteed by certain production facilities and toolings of the Group. As of December 31, 2021, the outstanding loan principal was RMB 600,000 , of which RMB 37,042 will be due in 2022 and the remaining RMB 562,958 will be due in 2023 and thereafter. The unused credit limits under these facilities was RMB 409,900 as of December 31, 2021. |
Schedule of secured bank loan | As of December 31, 2020 2021 Secured bank loan – Current portion — 37,042 – Non-current portion — 562,958 Total — 600,000 |
Trade and Notes Payable (Tables
Trade and Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade and Notes Payable | |
Schedule of trade and notes payable | As of December 31, 2020 2021 Trade payable for raw materials 2,991,538 7,089,370 Notes payable 168,977 2,286,680 Total 3,160,515 9,376,050 |
Schedule of maturity of trade and notes payable | As of December 31, 2020 2021 Within 3 months 3,118,840 7,539,833 Between 3 months and 6 months 18,537 1,639,286 Between 6 months and 1 year 10,676 161,913 More than 1 year 12,462 35,018 Total 3,160,515 9,376,050 |
Accruals and Other Current Li_2
Accruals and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accruals and Other Current Liabilities | |
Schedule of accruals and other current liabilities | As of December 31, 2020 2021 Payables for purchase of property, plant and equipment 118,181 456,395 Salaries and benefits payable 187,972 417,449 Tax payable 50,088 277,233 Accrued warranty 55,138 154,276 Payables for logistics expenses 43,571 143,632 Payables for research and development expenses 35,032 94,517 Deposits from vendors 9,120 27,716 Advance from customers 9,285 10,262 Payables for acquisition of Chongqing Zhizao (Note 5) 79,552 2,000 Other payables 59,520 295,888 Total 647,459 1,879,368 |
Revenue Disaggregation (Tables)
Revenue Disaggregation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue Disaggregation | |
Schedule of revenue disaggregation | For the Year Ended December 31, 2019 2020 2021 Vehicle sales 280,967 9,282,703 26,128,469 Other sales and services 3,400 173,906 881,310 Total 284,367 9,456,609 27,009,779 |
Schedule of revenue by timing of recognition | For the Year Ended December 31, 2019 2020 2021 Revenue recognized at a point in time 284,195 9,436,095 26,917,836 Including: Vehicle sales 280,967 9,282,703 26,128,469 Other sales and services 3,228 153,392 789,367 Revenue recognized over time 172 20,514 91,943 Total 284,367 9,456,609 27,009,779 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Revenue | |
Schedule of carried-forward deferred revenue | For the Year Ended December 31, 2019 2020 2021 Deferred revenue—at beginning of the year — 62,638 407,168 Additions 338,702 9,687,382 27,377,563 Recognition (276,064) (9,342,852) (27,089,986) Deferred revenue—at end of the year 62,638 407,168 694,745 Including: Deferred revenue, current 56,695 271,510 305,092 Deferred revenue, non‑current 5,943 135,658 389,653 |
Research and Development Expe_2
Research and Development Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Research and Development Expenses. | |
Schedule of research and development expenses | For the Year Ended December 31, 2019 2020 2021 Employee compensation 461,922 580,157 2,079,948 Design and development expenses 603,332 431,996 1,003,567 Depreciation and amortization expenses 39,648 44,977 54,110 Rental and related expenses 14,269 18,818 52,985 Travel expenses 21,815 9,360 52,307 Others 28,154 14,549 43,472 Total 1,169,140 1,099,857 3,286,389 |
Selling, General and Administ_2
Selling, General and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Selling, General and Administrative Expenses. | |
Schedule of selling, general and administrative expenses | For the Year Ended December 31, 2019 2020 2021 Employee compensation 238,368 449,109 1,414,177 Marketing and promotional expenses 176,383 264,814 1,100,769 Rental and related expenses 78,897 162,907 324,655 Depreciation and amortization expenses 57,650 37,923 82,777 Travel expenses 20,171 20,806 69,079 Expected credit losses — — 6,415 Impairment of property, plant and equipment 18,066 30,381 — Others 99,844 152,879 494,513 Total 689,379 1,118,819 3,492,385 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations | |
Schedule of results of operations and cash flows of the discontinued operations and gain on disposal of discontinued operations | For the Year Ended December 31, 2019 2020 Revenues 9,654 870 Cost of sales (18,981) (2,437) Gross loss (9,327) (1,567) Operating expenses (11,359) (1,423) Impairment of long‑lived assets — — Loss from operations of discontinued operations (20,686) (2,990) Others, net 24 — Loss from discontinued operations before income tax expense (20,662) (2,990) Income tax expense — — Net loss from discontinued operations, net of tax (20,662) (2,990) For the Year Ended December 31, 2019 2020 Net cash (used in)/provided by discontinued operating activities (11,395) 148 Net cash (used in)/provided by discontinued investing activities (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 |
Convertible Redeemable Prefer_2
Convertible Redeemable Preferred Shares and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 231,758,541 US$2.64/ US$2.35 3,851,034 (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 23). (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 17). 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 RMB 1,022,045 , or RMB 13.02 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. |
Schedule of movement of the warrants and conversion feature derivative liabilities | Warrants Derivative Liabilities Liabilities Total Balance at January 1, 2019 — — — 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 — — — (*) Upon the completion of the issuance of the Series C Preferred Shares in December 2019, the unvested Series B-3 Additional Warrant to acquire additional Series C Preferred Shares at a 15% discount of purchase price expired, as such the fair value of such Series B-3 Additional Warrant reduced to zero accordingly. |
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, 2019 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 — 63,363 — 46,738 — 136,567 — 64,859 — 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, 2021 | |
Loss Per Share | |
Schedule of basic and diluted loss per share | For the Year Ended December 31, 2019 2020 2021 Numerator: Net loss (2,438,536) (151,657) (321,455) Accretion on convertible redeemable preferred shares to redemption value (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. (3,281,607) (791,985) (321,455) Including: Net loss from continuing operations attributable to ordinary shareholders of Li Auto Inc. (3,260,945) (806,358) (321,455) Net (loss)/income from discontinued operations attributable to ordinary shareholders of Li Auto Inc. (20,662) 14,373 — Denominator: Weighted average ordinary shares outstanding—basic and diluted 255,000,000 870,003,278 1,853,320,448 Basic and diluted net loss per share from continuing operations attributable to ordinary shareholders of Li Auto Inc. (12.79) (0.93) (0.17) Basic and diluted net (loss)/income per share from discontinued operations attributable to ordinary shareholders of Li Auto Inc. (0.08) 0.02 — Basic and diluted net loss per share attributable to ordinary shareholders of Li Auto Inc. (12.87) (0.91) (0.17) |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Schedule of compensation expenses recognized for share-based awards | For the Year Ended December 31, 2019 2020 2021 Cost of sales — 1,515 26,713 Research and development expenses — 60,789 741,793 Selling, general and administrative expenses — 80,491 332,850 Total — 142,795 1,101,356 |
2019 and 2020 Share Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Schedule of stock option activities | Weighted Number of Weighted Average Aggregate Options Average Remaining Intrinsic and Shares Exercise Price Contractual Life Value US$ In Years US$ 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 4,224,000 0.10 Forfeited (2,070,000) 0.10 Outstanding as of December 31, 2020 56,914,000 0.10 5.95 814,724 Granted 36,996,286 0.10 Exercised (6,404,416) 0.10 Forfeited (4,106,000) 0.10 Outstanding as of December 31, 2021 83,399,870 0.10 7.66 1,330,228 Vested and expected to vest as of December 31, 2020 55,413,520 0.10 5.90 793,245 Exercisable as of December 31, 2020 40,410,000 0.10 5.34 578,469 Vested and expected to vest as of December 31, 2021 79,915,157 0.10 6.60 1,274,647 Exercisable as of December 31, 2021 40,251,584 0.10 4.55 642,013 |
Schedule of options fair value assumptions | For the Year Ended December 31, 2019 2020 2021 Exercise price (US$) 0.10 0.10 0.10 Fair value of the ordinary shares on the date of option grant (US$) 0.90 - 1.45 1.35 - 1.90 14.42-17.35 Risk‑free interest rate 1.98% - 3.17% 0.69% - 1.92% 0.93% - 1.48% Expected term (in years) 10.00 10.00 10.00 Expected dividend yield 0% 0% 0% Expected volatility 47% - 48% 45% - 46% 47% - 48% |
2021 Share Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Schedule of stock option activities | Number of Weighted Weighted Average Shares Average Exercise Remaining Aggregate Granted Price Contractual Life Intrinsic Value US$ In Years US$ December 31, 2020 — — — — Granted 108,557,400 14.63 December 31, 2021 108,557,400 14.63 9.19 — |
Schedule of options fair value assumptions | For the Year Ended December 31, 2021 Exercise price (US$) 14.63 Fair value of the ordinary shares on the date of restricted shares grant (US$) 10.67 Risk-free interest rate 1.59 % Expected term (in years) 10.00 Expected dividend yield 0 % Expected volatility 47 % |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Taxation | |
Schedule of composition of income tax benefit | For the Year Ended December 31, 2019 2020 2021 Deferred income tax (benefit)/expense — (22,847) 168,643 |
Schedule of reconciliations of the income tax expenses | For the Year Ended December 31, 2019 2020 2021 Loss before income tax expense (2,417,874) (188,877) (152,812) Income tax credit computed at PRC statutory income tax rate of 25% (604,468) (47,219) (38,203) Tax effect of tax‑exempt entity and preferential tax rate 230,669 30,140 (89,928) Tax effect of R&D Deduction and others (121,177) (144,503) (314,141) Non‑deductible expenses 27,031 21,511 318,185 Change in valuation allowance 467,945 117,224 292,730 Income tax (benefit)/ expenses — (22,847) 168,643 |
Schedule of components of the group's deferred tax assets (liabilities) | For the Year Ended December 31, 2019 2020 2021 Deferred tax assets Net operating loss carryforwards 717,495 1,144,397 1,119,659 Accrued expenses and others 12,545 66,773 228,734 Impairment of long-lived assets and allowance for credit losses 73,271 7,694 13,224 Acquisition of Changzhou Manufacturing Base Phase I and Phase II (Note 11) — — 11,969 Depreciation and amortization 26,946 16,220 190 Unrealized financing cost 27,520 13,125 — Unrealized investment loss 29,664 — — Total deferred tax assets 887,441 1,248,209 1,373,776 Less: Valuation allowance (887,441) (1,004,665) (1,297,395) Deferred tax assets, net of valuation allowance — 243,544 76,381 Deferred tax liabilities Accelerated tax depreciation and others — (215,030) (195,121) Fair value change of certain investments — (5,667) (15,087) Total deferred tax liabilities — (220,697) (210,208) Deferred tax assets/(liabilities), net — 22,847 (133,827) |
Schedule of movement of valuation allowance | For the Year Ended December 31, 2019 2020 2021 Valuation allowance Balance at beginning of the year 419,496 887,441 1,004,665 Additions 467,945 148,458 395,955 Reversal — (31,234) (103,225) Balance at ending of the year 887,441 1,004,665 1,297,395 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 as of in Active Markets for Significant Other Significant December 31, Identical Assets Observable Inputs Unobservable 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 — Fair Value Measurement at Reporting Date Using Quoted Prices Fair Value as of in Active Markets for Significant Other Significant December 31, Identical Assets Observable Inputs Unobservable Inputs 2021 (Level 1) (Level 2) (Level 3) Assets Short-term investments 19,157,428 — 19,157,428 — Equity securities with readily determinable fair value 28,452 28,452 — — Total assets 19,185,880 28,452 19,157,428 — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies. | |
Schedule of capital commitments | Total Less than One Year 1 ‑ 3 Years 3 ‑ 5 Years Over 5 Years Capital commitments 2,920,561 2,798,736 121,825 — — |
Schedule of purchase obligations | Total Less than One Year 1 ‑ 3 Years 3 ‑ 5 Years Over 5 Years Purchase obligations 11,798,199 11,798,199 — — — |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Balances and Transactions | |
Schedule of 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 Beijing Judianchuxing Technology Limited (“Beijing Judianchuxing”) Affiliate Beijing Sankuai Online Technology Co., Ltd. (“Beijing Sankuai ”) Controlled by Principal Shareholder Suzhou Yihang Intelligent Technology Co., Ltd. (“Suzhou Yihang”) Affiliate Changzhou Huixiang New Energy Auto Parts Co., Ltd. (“Changzhou Huixiang”) Affiliate 30. Related Party Balances and Transactions (Continued) The Group entered into the following significant related party transactions: For the Year Ended December 31, 2019 2020 2021 Purchase materials from Beijing Yihang 6,914 58,361 31,692 Purchase R&D service from Beijing Yihang 25,106 4,368 12,176 Purchase R&D service from Suzhou Yihang — — 3,772 Purchase service from Beijing Sankuai — — 969 Purchase equipment and installation service from Airx 1,994 — — Sales of battery packs and materials to Neolix Technologies 1,943 — — The Group had the following significant related party balances: As of December 31, 2020 2021 Due from Neolix Technologies 678 678 Due from Beijing Yihang — 334 Total 678 1,012 As of December 31, 2020 2021 Due to Changzhou Huixiang (See Note 13) — 30,000 Due to Beijing Yihang 19,183 7,102 Due to Beijing Sankuai — 330 Due to Airx 23 23 Total 19,206 37,455 |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Parent Company Only Condensed Financial Information | |
Condensed balance sheets of parent company | As of December 31, 2020 2021 RMB RMB ASSETS Current assets: Cash and cash equivalents 1,149,374 14,762,875 Time deposits and short-term investments 14,486,070 7,020,662 Amounts due from subsidiaries of the Group 14,065,341 23,763,053 Prepayments and other current assets — 10,211 Total current assets 29,700,785 45,556,801 Non-current assets: Investments in subsidiaries, VIEs and VIEs' subsidiaries 42,754 890,788 Long-term investments 64,916 28,452 Total non-current assets 107,670 919,240 Total assets 29,808,455 46,476,041 LIABILITIES Current liabilities: Accruals and other current liabilities 4,858 13,798 Total current liabilities 4,858 13,798 Non-current liabilities: Long-term borrowings — 5,397,941 Total non-current liabilities — 5,397,941 Total liabilities 4,858 5,411,739 SHAREHOLDERS' (DEFICIT)/EQUITY Class A Ordinary Shares 1,010 1,176 Class B Ordinary Shares 235 235 Treasury shares — (89) Additional paid-in capital 37,289,761 49,390,486 Accumulated other comprehensive loss (1,005,184) (1,521,871) Accumulated deficit (6,482,225) (6,805,635) Total shareholders' equity 29,803,597 41,064,302 Total liabilities and shareholders' equity 29,808,455 46,476,041 |
Condensed statements of comprehensive loss of parent company | For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Operating expenses: Selling, general and administrative (5,114) (9,424) (27,288) Research and development — — (852) Total operating expenses (5,114) (9,424) (28,140) Loss from operations (5,114) (9,424) (28,140) Other income/(expense) Interest expense (9,332) — (21,369) Interest income 20,505 4,467 10,746 Equity in loss of subsidiaries, VIEs and VIEs’ subsidiaries (2,031,371) (520,093) (563,106) Change in fair value of warrants and derivative liabilities (426,425) 272,327 — Investment income, net 14,880 106,823 272,991 Foreign exchange loss (1,084) (5,861) (3,023) Others, net (595) 104 10,446 Loss before income tax expense (2,438,536) (151,657) (321,455) Income tax expense — — — Net loss (2,438,536) (151,657) (321,455) Accretion on convertible redeemable preferred shares to redemption value (743,100) (651,190) — 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 — Net loss attributable to ordinary shareholders of Li Auto Inc. (3,281,607) (791,985) (321,455) Net loss (2,438,536) (151,657) (321,455) Other comprehensive income/(loss), net of tax Foreign currency translation adjustment, net of tax 2,851 (1,020,728) (516,687) Total comprehensive loss, net of tax (2,435,685) (1,172,385) (838,142) |
Condensed statements of cash flows of parent company | For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB CASH FLOWS FROM OPERATING ACTIVITIES Net cash provided by operating activities 26,492 109,961 367,063 CASH FLOWS FROM INVESTING ACTIVITIES Payments to, and investments in subsidiaries, VIEs and VIEs' subsidiaries (4,384,396) (10,006,889) (10,157,678) Placement of time deposits (1,725,148) — (298,284) Redemption of time deposits 1,265,877 463,527 297,654 Placement of short-term investments (35,157) (75,367,086) (173,133,568) Redemption of short-term investments — 60,452,428 180,386,757 Net cash used in investing activities (4,878,824) (24,458,020) (2,905,119) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs 5,254,333 3,851,034 — Proceeds from issuance of convertible debts 168,070 — 5,533,238 Proceeds from IPOs and concurrent private placements, net of issuance cost — 11,034,685 11,004,778 Proceeds from follow-on offering, net of issuance costs — 9,990,955 — Proceeds from exercise of share options — — 1,139 Proceeds from issuance of ordinary shares — — 70 Net cash provided by financing activities 5,422,403 24,876,674 16,539,225 Effects of exchange rate changes on cash and cash equivalents 25,595 (20,248) (387,668) Net increase in cash, cash equivalents 595,666 508,367 13,613,501 Cash, cash equivalents at beginning of the year 45,341 641,007 1,149,374 Cash, cash equivalents at end of the year 641,007 1,149,374 14,762,875 |
Organization and Nature of Op_3
Organization and Nature of Operations - Reorganization (Details) | Dec. 31, 2021 |
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% |
Beijing Leading | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Entity interest held in subsidiaries (as percent) | 100.00% |
Jiangsu XD | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Entity interest held in subsidiaries (as percent) | 100.00% |
Jiangsu CHJ | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Entity interest held in subsidiaries (as percent) | 100.00% |
Lixiang Zhizao Automobile Sales & Services (Beijing) Co., Ltd | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Entity interest held in subsidiaries (as percent) | 100.00% |
Lixiang Zhixing Automobile Sales & Services (Shanghai) Co., Ltd | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Entity interest held in subsidiaries (as percent) | 100.00% |
Lixiang Zhizao Automobile Sales & Services (Chengdu) Co., Ltd | |
Principal subsidiaries, consolidated VIEs and VIEs' subsidiaries | |
Entity interest held in 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, 2021 | |
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% |
Leading Ideal HK | Beijing CHJ | |
Variable interest entity | |
Ownership percent | 50.00% |
Leading Ideal HK | Chongqing Lixiang Automobile | |
Variable interest entity | |
Ownership percent | 50.00% |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets: | |||||
Cash and cash equivalents | ¥ 27,854,224 | $ 4,370,936 | ¥ 8,938,341 | ||
Restricted cash | 2,638,840 | 414,092 | 1,234,178 | ||
Time deposits and short-term investments | 19,668,239 | 3,086,376 | 19,701,382 | ||
Trade receivable, net of allowance for credit losses of nil, and RMB467 as of December 31, 2020 and 2021, respectively | 120,541 | 18,916 | 115,549 | ||
Inventories | 1,617,890 | 253,882 | 1,048,004 | ||
Prepayments and other current assets, net of allowance for credit losses of nil, and RMB2,192 as of December 31, 2020 and 2021, respectively | 480,680 | 75,429 | 353,655 | ||
Non-current assets: | |||||
Long-term investments | 156,306 | 24,528 | 162,853 | ¥ 126,181 | ¥ 177,141 |
Property, plant and equipment, net | 4,498,269 | 705,877 | 2,478,687 | ||
Operating lease right-of-use assets, net | 2,061,492 | 323,493 | 1,277,006 | ||
Intangible assets, net | 751,460 | 117,920 | 683,281 | ||
Other noncurrent assets, net of allowance for credit losses of nil, and RMB3,757 as of December 31, 2020 and 2021, respectively | 1,981,076 | 310,872 | 321,184 | ||
Total assets | 61,848,913 | 9,705,443 | 36,373,276 | ||
Current liabilities: | |||||
Short-term borrowings | 37,042 | 5,813 | |||
Trade and notes payable | 9,376,050 | 1,471,307 | 3,160,515 | ||
Amounts due to related parties | 37,455 | 5,878 | 19,206 | ||
Operating lease liabilities, current | 473,245 | 74,262 | 210,531 | ||
Deferred revenue, current | 305,092 | 47,876 | 271,510 | 56,695 | |
Accruals and other current liabilities | 1,879,368 | 294,914 | 647,459 | ||
Noncurrent liabilities: | |||||
Long-term borrowings | 5,960,899 | 935,395 | 511,638 | ||
Deferred revenue, noncurrent | 389,653 | 61,145 | 135,658 | 5,943 | |
Operating lease liabilities, noncurrent | 1,369,825 | 214,955 | 1,025,253 | ||
Finance lease liabilities, noncurrent | 366,883 | ||||
Deferred tax liabilities, non-current | 153,723 | 24,122 | 36,309 | ||
Other noncurrent liabilities | 802,259 | 125,891 | 184,717 | ||
Total liabilities | 20,784,611 | 3,261,558 | 6,569,679 | ||
Total shareholders' equity | 41,064,302 | 6,443,885 | 29,803,597 | ¥ (5,674,531) | ¥ (2,395,775) |
Total liabilities and shareholders' equity | 61,848,913 | $ 9,705,443 | 36,373,276 | ||
VIEs and VIEs' subsidiaries | |||||
Current assets: | |||||
Cash and cash equivalents | 5,311,800 | 1,546,193 | |||
Restricted cash | 2,415,941 | 1,234,178 | |||
Time deposits and short-term investments | 8,326,541 | 2,581,690 | |||
Trade receivable, net of allowance for credit losses of nil, and RMB467 as of December 31, 2020 and 2021, respectively | 103,056 | 103,271 | |||
Amounts due from the Group companies | 23,402,104 | 7,704,630 | |||
Inventories | 1,396,992 | 271,379 | |||
Prepayments and other current assets, net of allowance for credit losses of nil, and RMB2,192 as of December 31, 2020 and 2021, respectively | 220,402 | 254,061 | |||
Non-current assets: | |||||
Investment in subsidiaries | 609,748 | ||||
Long-term investments | 97,854 | 97,937 | |||
Property, plant and equipment, net | 2,329,507 | 2,335,824 | |||
Operating lease right-of-use assets, net | 731,874 | 1,182,134 | |||
Intangible assets, net | 703,274 | 682,083 | |||
Other noncurrent assets, net of allowance for credit losses of nil, and RMB3,757 as of December 31, 2020 and 2021, respectively | 1,107,674 | 218,531 | |||
Total assets | 46,147,019 | 18,821,659 | |||
Current liabilities: | |||||
Short-term borrowings | 31,547 | ||||
Trade and notes payable | 8,547,181 | 3,107,646 | |||
Amounts due to the Group companies | 31,999,140 | 12,203,705 | |||
Amounts due to related parties | 1,277 | 19,206 | |||
Operating lease liabilities, current | 80,606 | 170,033 | |||
Deferred revenue, current | 230,720 | ||||
Accruals and other current liabilities | 515,036 | 453,731 | |||
Noncurrent liabilities: | |||||
Long-term borrowings | 479,453 | 511,638 | |||
Deferred revenue, noncurrent | 8,704 | 102,898 | |||
Operating lease liabilities, noncurrent | 719,628 | 973,455 | |||
Finance lease liabilities, noncurrent | 366,883 | ||||
Deferred tax liabilities, non-current | 153,723 | 36,309 | |||
Other noncurrent liabilities | 14,333 | 157,907 | |||
Total liabilities | 42,550,628 | 18,334,131 | |||
Total shareholders' equity | 3,596,391 | 487,528 | |||
Total liabilities and shareholders' equity | ¥ 46,147,019 | ¥ 18,821,659 |
Organization and Nature of Op_6
Organization and Nature of Operations - Net (loss)/income (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Variable interest entity | ||||
Revenues | ¥ 27,009,779 | $ 4,238,424 | ¥ 9,456,609 | ¥ 284,367 |
Cost | (21,248,325) | (3,334,326) | (7,907,270) | (284,462) |
Expenses | (6,778,774) | (1,063,737) | (2,218,676) | (1,858,519) |
Other (expense)/income | 187,320 | 29,395 | 20,133 | (128,799) |
(Loss)/Income before income tax expenses | (152,812) | (23,978) | (188,877) | (2,417,874) |
Less: income tax expenses | (168,643) | (26,464) | 22,847 | |
Net (loss)/income from continuing operations | (321,455) | (50,442) | (166,030) | (2,417,874) |
Net (loss)/income from discontinued operations | 14,373 | (20,662) | ||
Net (loss)/income | (321,455) | (50,442) | (151,657) | (2,438,536) |
Net loss attributable to ordinary shareholders of Li Auto Inc. | (321,455) | $ (50,442) | (791,985) | (3,281,607) |
VIEs and VIEs' subsidiaries | ||||
Variable interest entity | ||||
Share of loss from subsidiaries | (13) | (1,179) | (5,783) | |
Other (expense)/income | 2,610,121 | 40,309 | (174,403) | |
(Loss)/Income before income tax expenses | 2,662,162 | (458,900) | (1,234,283) | |
Less: income tax expenses | (117,413) | (36,309) | ||
Net (loss)/income from continuing operations | 2,544,749 | (495,209) | (1,234,283) | |
Net (loss)/income from discontinued operations | 14,373 | (20,662) | ||
Net (loss)/income | 2,544,749 | (480,836) | (1,254,945) | |
Less: Net (loss)/income attributable to non- controlling interests | 5,075 | (5,971) | ||
Net loss attributable to ordinary shareholders of Li Auto Inc. | 2,544,749 | (475,761) | (1,260,916) | |
VIEs and VIEs' subsidiaries - Third-party | ||||
Variable interest entity | ||||
Revenues | 6,294,675 | 8,001,067 | 284,367 | |
Cost | (20,171,861) | (7,790,586) | (284,462) | |
Expenses | (2,401,187) | (1,358,507) | (1,675,643) | |
VIEs and VIEs' subsidiaries - Inter-company | ||||
Variable interest entity | ||||
Revenues | 22,287,788 | 8,553,798 | 974,313 | |
Cost | (5,891,611) | (7,877,944) | ¥ (352,672) | |
Expenses | ¥ (65,750) | ¥ (25,858) |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Variable interest entity | ||||
Net cash (used in)/provided by operating activities | ¥ 8,340,385 | $ 1,308,788 | ¥ 3,139,804 | ¥ (1,793,710) |
Net cash used in investing activities | (4,257,244) | (668,054) | (18,737,725) | (2,574,836) |
Net cash provided by financing activities | 16,709,533 | 2,622,090 | 24,710,697 | 5,655,690 |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (472,129) | (74,086) | (376,646) | 53,722 |
Net increase in cash, cash equivalents and restricted cash | 20,320,545 | 3,188,738 | 8,736,130 | 1,340,866 |
Cash, cash equivalents and restricted cash at beginning of the year | 10,172,519 | 1,596,290 | 1,436,389 | 95,523 |
Cash, cash equivalents and restricted cash at end of the year | 30,493,064 | 4,785,028 | 10,172,519 | 1,436,389 |
Less: Cash, cash equivalents and restricted cash of discontinued operations at end of the year | 147 | |||
Cash, cash equivalents and restricted cash of continuing operations at end of the year | 30,493,064 | $ 4,785,028 | 10,172,519 | 1,436,242 |
VIEs and VIEs' subsidiaries | ||||
Variable interest entity | ||||
Net cash (used in)/provided by operating activities | (1,351,859) | 3,540,411 | (1,607,435) | |
Net cash used in investing activities | (8,641,045) | (1,665,982) | (1,976,964) | |
Net cash provided by financing activities | 14,940,274 | 650,595 | 3,782,378 | |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (188) | 19,746 | ||
Net increase in cash, cash equivalents and restricted cash | 4,947,370 | 2,524,836 | 217,725 | |
Cash, cash equivalents and restricted cash at beginning of the year | 2,780,371 | 255,535 | 37,810 | |
Cash, cash equivalents and restricted cash at end of the year | 7,727,741 | 2,780,371 | 255,535 | |
Less: Cash, cash equivalents and restricted cash of discontinued operations at end of the year | 147 | |||
Cash, cash equivalents and restricted cash of continuing operations at end of the year | 7,727,741 | 2,780,371 | 255,388 | |
VIEs and VIEs' subsidiaries - Inter-company | ||||
Variable interest entity | ||||
Net cash (used in)/provided by operating activities | 7,341,282 | 2,194,342 | ||
Net cash provided by financing activities | 14,858,966 | 795,295 | 3,782,378 | |
VIEs and VIEs' subsidiaries - Other | ||||
Variable interest entity | ||||
Net cash (used in)/provided by operating activities | (8,693,141) | 1,346,069 | (1,607,435) | |
Net cash used in investing activities | (8,641,045) | (1,665,982) | ¥ (1,976,964) | |
Net cash provided by financing activities | ¥ 81,308 | ¥ (144,700) |
Organization and Nature of Op_8
Organization and Nature of Operations - Additional information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Variable interest entity | ||||
Accumulated deficit | ¥ (6,805,635) | ¥ (6,482,225) | $ (1,067,953) | |
Management fees paid | 0 | 0 | ¥ 0 | |
VIEs and VIEs' subsidiaries | ||||
Variable interest entity | ||||
Registered capitals and PRC statutory reserves | 7,103,472 | 7,930,831 | ||
VIEs and VIEs' subsidiaries | PRC | ||||
Variable interest entity | ||||
Accumulated deficit | ¥ 1,229,463 | ¥ 3,772,758 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥)$ / ¥ | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($)$ / ¥ | |
Summary of Significant Accounting Policies | |||||
Total foreign currency translation adjustment income/(loss) | ¥ (516,687) | $ (81,079) | ¥ (1,020,728) | ¥ 2,851 | |
Foreign currency exchange rate, translation | $ / ¥ | 6.3726 | 6.3726 | |||
Cash held in online payments platform | ¥ | ¥ 33,540 | 17,844 | |||
Cash and cash equivalents | 27,854,224 | 8,938,341 | $ 4,370,936 | ||
Restricted cash | 2,638,840 | 1,234,178 | 414,092 | ||
Total cash, cash equivalents and restricted cash | ¥ 30,493,064 | ¥ 10,172,519 | ¥ 1,436,242 | $ 4,785,028 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Trade receivables and current expected credit losses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | ¥ 6,415 | $ 1,007 | ¥ 0 | ¥ 0 | |
Accumulated deficit | (6,805,635) | (6,482,225) | $ (1,067,953) | ||
Credit loss provision recorded in current assets | 2,659 | ||||
Credit loss provision recorded in non-current assets | 3,757 | 0 | |||
Allowance for credit losses. | |||||
Provisions | 6,415 | $ 1,007 | 0 | ¥ 0 | |
Write-offs | (1,954) | ||||
Ending balance | 6,416 | ||||
ASU 2016-13 | Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accumulated deficit | 1,955 | ||||
Allowance for credit losses. | |||||
Beginning balance | 1,955 | ||||
Ending balance | 1,955 | ||||
ASU 2016-13 | Adjusted Balance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Credit loss provision recorded in current assets | 972 | ||||
Credit loss provision recorded in non-current assets | 983 | ||||
Allowance for credit losses. | |||||
Beginning balance | ¥ 1,955 | ||||
Ending balance | ¥ 1,955 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Derivative instruments and Inventories (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |||
Outstanding balance of derivative instruments | ¥ 0 | ||
Fair value gain of derivative instruments | 73,824 | ||
Inventory Write-down | ¥ 0 | ¥ 0 | ¥ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property, plant and equipment, net (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 20 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 |
Minimum | Vehicle sales | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 2 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 |
Maximum | Vehicle sales | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 4 years |
Summary of Significant Accoun_8
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of long-lived assets | ¥ 27,389 | ¥ 30,381 | ¥ 18,066 |
Employee benefits | |||
Employee benefit expenses | ¥ 482,536 | ¥ 133,162 | ¥ 168,019 |
Software and Patents | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful lives | 5 years | ||
Software and Patents | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful lives | 10 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Product warranties (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |||
Accrued warranty at beginning of the year | ¥ 233,366 | ¥ 6,996 | |
Warranty cost incurred | (22,558) | (8,258) | ¥ (163) |
Provision for warranty | 631,537 | 234,628 | 7,159 |
Accrued warranty at end of the year | ¥ 842,345 | ¥ 233,366 | ¥ 6,996 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Product warranties, current and non-current and Revenue recognition (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |||
Accrued warranty | ¥ 842,345 | ¥ 233,366 | ¥ 6,996 |
Including: Accrued warranty, current | 154,276 | 55,138 | 1,477 |
Accrued warranty, non-current | ¥ 688,069 | ¥ 178,228 | ¥ 5,519 |
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] | true |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Leases and Segment reporting (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)segment | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2017CNY (¥) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets, net | ¥ 2,061,492 | $ 323,493 | ¥ 1,277,006 | |
Operating lease liabilities, current | 473,245 | 74,262 | 210,531 | |
Operating lease liabilities, noncurrent | ¥ 1,369,825 | $ 214,955 | ¥ 1,025,253 | |
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, noncurrent | ¥ 142,751 |
Concentration and Risks (Detail
Concentration and Risks (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration and Risks | |||
Cash and cash equivalents, restricted cash and time deposits and short term investments subject to such government controls. | ¥ 24,509,656 | ¥ 5,384,769 | |
Percentage of appreciation of domestic currency (RMB) against foreign currency(US$) | 2.30% | 6.50% | |
Percentage of depreciation of peoples domestic currency (RMB) against foreign currency(US$) | 1.60% |
Acquisition of Chongqing Zhiz_2
Acquisition of Chongqing Zhizao (Details) ¥ in Thousands | Dec. 29, 2018CNY (¥) | Dec. 28, 2018subsidiary | Dec. 31, 2021CNY (¥) |
Chongqing Zhizao | |||
Business acquisition | |||
Equity interest (as a percent) | 100.00% | ||
Total consideration | ¥ 650,000 | ||
Total consideration in cash paid | ¥ 648,000 | ||
Settled with outstanding loan receivable | ¥ 8,000 | ||
Lifan Industry | |||
Business acquisition | |||
Number of wholly owned subsidiaries with whom acquisition agreement is entered into | subsidiary | 2 |
Acquisition of Chongqing Zhiz_3
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 |
Trade receivable (Details)
Trade receivable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Accounts, Notes, Loans and Financing Receivable | |||
Total | ¥ 120,541 | $ 18,916 | ¥ 115,549 |
Within 3 months | |||
Accounts, Notes, Loans and Financing Receivable | |||
Total | 16,462 | 10,429 | |
Between 3 months and 6 months | |||
Accounts, Notes, Loans and Financing Receivable | |||
Total | 890 | 18,914 | |
Between 6 months and 1 year | |||
Accounts, Notes, Loans and Financing Receivable | |||
Total | 77,903 | ||
More than 1 year | |||
Accounts, Notes, Loans and Financing Receivable | |||
Total | ¥ 103,189 | ¥ 8,303 |
Inventories (Details)
Inventories (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Inventories | |||
Raw materials, work in process and supplies | ¥ 149,089 | ¥ 820,168 | |
Finished products | 1,468,801 | 227,836 | |
Total | ¥ 1,617,890 | $ 253,882 | ¥ 1,048,004 |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Prepayments and Other Current Assets | |||
Prepayments to vendors | ¥ 218,660 | ¥ 104,271 | |
Deductible VAT input | 118,177 | 196,021 | |
Prepaid rental and deposits | 48,929 | 30,357 | |
Receivables related to rebate | 28,491 | ||
Loan receivable from Lifan Holdings | 8,000 | ||
Others | 68,615 | 15,006 | |
Less: Allowance for Credit Losses | (2,192) | 0 | |
Total | ¥ 480,680 | $ 75,429 | ¥ 353,655 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Property, plant and equipment | ||||
Total property, plant and equipment, gross | ¥ 5,539,261 | ¥ 3,007,759 | ||
Less: Accumulated depreciation | (983,222) | (498,691) | ||
Less: Accumulated impairment loss | (57,770) | (30,381) | ||
Total property, plant and equipment, net | 4,498,269 | 2,478,687 | $ 705,877 | |
Depreciation expenses | 579,097 | 312,011 | ¥ 107,173 | |
Impairment recognized for property, plant and equipment | 27,389 | 30,381 | ¥ 18,066 | |
Other noncurrent assets | 1,981,076 | 321,184 | 310,872 | |
Other noncurrent liabilities | 802,259 | 184,717 | $ 125,891 | |
Automotive Manufacturing Permission | ||||
Property, plant and equipment | ||||
Other noncurrent liabilities | 93,701 | |||
Beijing Manufacturing Base Agreements | ||||
Property, plant and equipment | ||||
Construction in process | 149,098 | |||
Other noncurrent assets | 11,606 | |||
Construction in process | ||||
Property, plant and equipment | ||||
Total property, plant and equipment, gross | 1,942,953 | 53,579 | ||
Mold and tooling | ||||
Property, plant and equipment | ||||
Total property, plant and equipment, gross | 1,098,392 | 987,316 | ||
Production facilities | ||||
Property, plant and equipment | ||||
Total property, plant and equipment, gross | 804,281 | 787,970 | ||
Leasehold improvements | ||||
Property, plant and equipment | ||||
Total property, plant and equipment, gross | 660,902 | 249,879 | ||
Buildings | ||||
Property, plant and equipment | ||||
Total property, plant and equipment, gross | 409,123 | 404,772 | ||
Buildings improvements | ||||
Property, plant and equipment | ||||
Total property, plant and equipment, gross | 297,163 | 311,947 | ||
Equipment | ||||
Property, plant and equipment | ||||
Total property, plant and equipment, gross | 266,745 | 175,887 | ||
Vehicle sales | ||||
Property, plant and equipment | ||||
Total property, plant and equipment, gross | ¥ 59,702 | ¥ 36,409 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Indefinite-lived intangible assets, net | ¥ 647,174 | ¥ 647,174 | ||
Definite-lived intangible assets | 138,270 | 58,791 | ||
Accumulated amortization | (33,984) | (22,684) | ||
Definite-lived intangible assets, net | 104,286 | 36,107 | ||
Total intangible assets, net | 751,460 | 683,281 | $ 117,920 | |
Amortization expenses | 11,300 | 8,985 | ¥ 9,218 | |
Software | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Definite-lived intangible assets | 137,576 | 58,097 | ||
Accumulated amortization | (33,290) | (21,990) | ||
Patents | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Definite-lived intangible assets | 694 | 694 | ||
Accumulated amortization | (694) | (694) | ||
Automotive Manufacturing Permission | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Indefinite-lived intangible assets, net | ¥ 647,174 | ¥ 647,174 |
Intangible Assets, Net - Amorti
Intangible Assets, Net - Amortization expenses (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Intangible assets, net | ||
2022 | ¥ 16,540 | |
2023 | 14,121 | |
2024 | 11,348 | |
2025 | 9,815 | |
2026 and thereafter | 52,462 | |
Definite-lived intangible assets, net | ¥ 104,286 | ¥ 36,107 |
Leases - Components of lease ex
Leases - Components of lease expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance lease cost: | |||
Amortization of assets | ¥ 12,122 | ¥ 15,346 | ¥ 15,501 |
Interest of lease liabilities | 19,322 | 21,851 | 19,943 |
Operating lease cost | 367,375 | 176,788 | 86,365 |
Short-term lease cost | 15,559 | 4,937 | 6,801 |
Total | ¥ 414,378 | ¥ 218,922 | ¥ 128,610 |
Leases - Supplemental cash flow
Leases - Supplemental cash flows information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows payment for operating leases | ¥ 346,757 | ¥ 126,418 | ¥ 77,643 |
Right-of-use assets obtained in exchange for lease liabilities: | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | ¥ 1,120,392 | ¥ 896,804 | ¥ 207,902 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information - Operating lease (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Leases | |||
Land use rights, net | ¥ 289,810 | ¥ 181,505 | |
Operating lease right-of-use assets, net (excluding land use rights) | 1,771,682 | 1,095,501 | |
Total operating lease assets | 2,061,492 | $ 323,493 | 1,277,006 |
Operating lease liabilities, current | 473,245 | 74,262 | 210,531 |
Operating lease liabilities, noncurrent | 1,369,825 | $ 214,955 | 1,025,253 |
Total lease liabilities | ¥ 1,843,070 | ¥ 1,235,784 |
Leases - Supplemental balance_2
Leases - Supplemental balance sheet information - Finance lease (Details) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Leases | |
Property, plant and equipment, at cost | ¥ 294,269 |
Accumulated depreciation | 56,682 |
Property, plant and equipment, net | ¥ 237,587 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net |
Finance lease liabilities, noncurrent | ¥ 366,883 |
Total lease liabilities | ¥ 366,883 |
Leases - Weighted-average remai
Leases - Weighted-average remaining lease term and discount rate (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted-average remaining lease term | ||
Land use rights | 47 years | 47 years |
Operating leases | 8 years | 11 years |
Finance leases | 16 years | |
Weighted-average discount rate | ||
Land use rights | 6.20% | |
Operating leases | 5.80% | 5.80% |
Finance leases | 6.20% |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating leases | ||
2022 | ¥ 473,477 | |
2023 | 372,077 | |
2024 | 242,358 | |
2025 | 178,605 | |
2026 | 155,296 | |
Thereafter | 953,835 | |
Total undiscounted lease payments | 2,375,648 | |
Less: imputed interest | (532,578) | |
Total lease liabilities | ¥ 1,843,070 | ¥ 1,235,784 |
Finance leases | ||
Total lease liabilities | ¥ 366,883 |
Leases - Additional information
Leases - Additional information (Details) ¥ in Thousands, $ in Thousands | Jan. 01, 2019CNY (¥) | Jan. 31, 2022CNY (¥) | Aug. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Nov. 30, 2021 | Sep. 11, 2018CNY (¥) | May 01, 2017CNY (¥) |
Lessee Lease | |||||||||||
Operating lease, right of use assets for land | ¥ 2,061,492 | ¥ 1,277,006 | $ 323,493 | ||||||||
Financing lease, right of use assets for plants | 294,269 | ||||||||||
Total rental fully paid upfront | 346,757 | ¥ 126,418 | ¥ 77,643 | ||||||||
Jiangsu CHJ | Changzhou Chehejin | |||||||||||
Lessee Lease | |||||||||||
Equity interest (as a percent) | 100.00% | ||||||||||
Total consideration in cash paid | 565,500 | ||||||||||
Total consideration | ¥ 567,118 | ||||||||||
Jiangsu CHJ | Changzhou Chehejin | Subsequent Event | |||||||||||
Lessee Lease | |||||||||||
Total consideration in cash paid | ¥ 28,491 | ||||||||||
Leading Ideal HK | |||||||||||
Lessee Lease | |||||||||||
Entity interest held in subsidiaries (as percent) | 100.00% | 100.00% | |||||||||
Wheels Technology | |||||||||||
Lessee Lease | |||||||||||
Entity interest held in subsidiaries (as percent) | 100.00% | 100.00% | |||||||||
Beijing Leading | |||||||||||
Lessee Lease | |||||||||||
Entity interest held in subsidiaries (as percent) | 100.00% | 100.00% | |||||||||
Jiangsu CHJ | |||||||||||
Lessee Lease | |||||||||||
Entity interest held in subsidiaries (as percent) | 100.00% | 100.00% | |||||||||
Jiangsu XD | |||||||||||
Lessee Lease | |||||||||||
Entity interest held in subsidiaries (as percent) | 100.00% | 100.00% | |||||||||
Changzhou Chehejin | |||||||||||
Lessee Lease | |||||||||||
Entity interest held in subsidiaries (as percent) | 100.00% | 100.00% | |||||||||
Business combination recognized identifiable assets acquired and liabilities assumed property plant and equipment | ¥ 47,876 | ||||||||||
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Other Non-current Assets | |||
Prepayments for purchase of property, plant and equipment | ¥ 1,051,415 | ¥ 126,006 | |
Long-term deposits | 653,030 | 149,235 | |
Deductible VAT input, non-current | 263,390 | ||
Others | 16,998 | 45,943 | |
Less: Allowance for credit losses | (3,757) | ||
Total | ¥ 1,981,076 | $ 310,872 | ¥ 321,184 |
Long term Investments (Details)
Long term Investments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Long term Investments | ||||
Balance | ¥ 162,853 | ¥ 126,181 | ¥ 177,141 | |
Additions | 30,000 | 65,000 | 98,000 | |
Share of loss of equity method investees | (83) | $ (13) | (2,520) | (162,725) |
Fair value change through earnings | (35,330) | (21,975) | 12,550 | |
Changes of interest in the equity method investees | 5,494 | |||
Impairment | 0 | 0 | (5,000) | |
Foreign currency translation | (1,134) | (3,833) | 721 | |
Balance | 156,306 | $ 24,528 | 162,853 | 126,181 |
Equity Method Investments. | ||||
Long term Investments | ||||
Balance | 4,787 | 7,307 | 66,538 | |
Additions | 30,000 | 98,000 | ||
Share of loss of equity method investees | (83) | (2,520) | (162,725) | |
Changes of interest in the equity method investees | 5,494 | |||
Balance | 34,704 | 4,787 | 7,307 | |
Equity Security With Readily Determinable Fair Values | ||||
Long term Investments | ||||
Balance | 64,916 | 90,724 | 77,453 | |
Fair value change through earnings | (35,330) | (21,975) | 12,550 | |
Foreign currency translation | (1,134) | (3,833) | 721 | |
Balance | 28,452 | 64,916 | 90,724 | |
Equity Securities Without Readily Determinable Fair Values | ||||
Long term Investments | ||||
Balance | 93,150 | 28,150 | 33,150 | |
Additions | 65,000 | |||
Impairment | (5,000) | |||
Balance | ¥ 93,150 | ¥ 93,150 | ¥ 28,150 |
Long-term Investments- Equity M
Long-term Investments- Equity Method Investments (Details) - CNY (¥) ¥ in Thousands | Jan. 30, 2019 | Sep. 11, 2018 | Jan. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 31, 2021 |
Long Term Investments, Disclosure [Line Items] | |||||||
Equity method ownership percent | 49.00% | 49.00% | |||||
Cash consideration | ¥ 98,000 | ¥ 98,000 | |||||
Equity method investment | ¥ 0 | ||||||
Impairment of equity method investments | ¥ 0 | ¥ 0 | ¥ 0 | ||||
Changzhou Huixiang New Energy Auto Parts Co., Ltd | |||||||
Long Term Investments, Disclosure [Line Items] | |||||||
Cash consideration | ¥ 30,000 | ||||||
Equity method investment | ¥ 73,500 | ||||||
Investee A | |||||||
Long Term Investments, Disclosure [Line Items] | |||||||
Ownership percent | 51.00% |
Long-term Investments - Equity
Long-term Investments - Equity Security with Or without Readily Determinable Fair Values (Details) ¥ in Thousands, $ in Thousands | Jan. 30, 2019CNY (¥) | Sep. 11, 2018CNY (¥) | Mar. 31, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)shares | Jul. 31, 2021CNY (¥) |
Equity Security with Readily Determinable Fair Values | |||||||||
Cost Basis | ¥ 100,303 | ¥ 100,303 | |||||||
Unrealized Loss | (73,535) | (38,205) | |||||||
Foreign Currency Translation | 1,684 | 2,818 | |||||||
Fair Value | 28,452 | 64,916 | |||||||
Total cash consideration for purchase of Series C preferred shares | 65,000 | ¥ 98,000 | |||||||
Equity Securities without Readily Determinable Fair Values | |||||||||
Investment in affiliate | 30,000 | 65,000 | ¥ 98,000 | ||||||
Equity interests in affiliate (as a percent) | 19.82% | 12.24% | |||||||
Impairment | 0 | 0 | ¥ 5,000 | ||||||
Equity method investment | ¥ 0 | ||||||||
Payments to Acquire Equity Method Investments | ¥ 98,000 | ¥ 98,000 | |||||||
Equity method ownership percent | 49.00% | 49.00% | |||||||
Disposal by sale | SEV related business | |||||||||
Equity Securities without Readily Determinable Fair Values | |||||||||
Total consideration | ¥ 60,000 | 60,000 | |||||||
Equity Securities Without Readily Determinable Fair Values | |||||||||
Equity Securities without Readily Determinable Fair Values | |||||||||
Investment in affiliate | ¥ 65,000 | ||||||||
Impairment | ¥ 5,000 | ||||||||
Suzhou Huichuan United Power System Co., Ltd | |||||||||
Equity Securities without Readily Determinable Fair Values | |||||||||
Equity method investment | ¥ 76,500 | ||||||||
Equity method ownership percent | 51.00% | ||||||||
Changzhou Huixiang New Energy Auto Parts Co., Ltd | |||||||||
Equity Securities without Readily Determinable Fair Values | |||||||||
Equity method investment | ¥ 73,500 | ||||||||
Equity method ownership percent | 49.00% | ||||||||
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 | ¥ 100,303 | $ 15,634 | |||||||
Equity Securities without Readily Determinable Fair Values | |||||||||
Investment in affiliate | ¥ 60,000 |
Short-term Borrowings and Lon_3
Short-term Borrowings and Long-term Borrowings - Borrowings (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Sep. 30, 2021 | Dec. 31, 2020CNY (¥) |
Debt Instrument [Line Items] | ||||
Total | ¥ 5,997,941 | ¥ 511,638 | ||
Short-term borrowings | 37,042 | $ 5,813 | ||
Long-term borrowings | 5,960,899 | $ 935,395 | 511,638 | |
Secured borrowing | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | ¥ 94,550 | |||
Interest Rate Per Annum | 6.175% | |||
Total | ¥ 98,717 | |||
Unsecured corporate loan | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | ¥ 401,073 | |||
Interest Rate Per Annum | 6.175% | |||
Total | ¥ 412,921 | |||
Convertible debt | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | ¥ 862,500 | |||
Interest Rate Per Annum | 0.25% | 0.25% | ||
Total | ¥ 5,397,941 | |||
Secured bank loan | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | ¥ 600,000 | |||
Interest Rate Per Annum | 4.80% | 4.80% | 4.80% | |
Total | ¥ 600,000 | |||
Long-term borrowings | ¥ 562,958 |
Short-term Borrowings and Lon_4
Short-term Borrowings and Long-term Borrowings - Additional information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2021CNY (¥) | Aug. 31, 2021CNY (¥) | Apr. 30, 2021CNY (¥) | Apr. 30, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Sep. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | |
Short term borrowings | |||||||||
Debt instrument principal amount | 100.00% | 100.00% | |||||||
Interest expense debt | ¥ 21,369 | $ 3,353 | |||||||
Debt instrument carrying amount | 5,499,041 | ||||||||
Deferred finance costs net | 101,100 | ||||||||
Non-current portion | 5,960,899 | $ 935,395 | ¥ 511,638 | ||||||
USD | |||||||||
Short term borrowings | |||||||||
Debt instrument convertible conversion ratio | 28.34 | 28.34 | |||||||
RMB | |||||||||
Short term borrowings | |||||||||
Debt instrument convertible conversion ratio | 35.2818 | 35.2818 | |||||||
Secured Loan Matures December 31, 2022 | |||||||||
Short term borrowings | |||||||||
Repayments of Debt | ¥ 101,882 | ||||||||
Unsecured Loan Matures June 30, 2022 | |||||||||
Short term borrowings | |||||||||
Repayments of Debt | ¥ 429,692 | ||||||||
Non-current portion | ¥ 412,921 | ||||||||
Convertible Debt Matures May 1, 2028 | |||||||||
Short term borrowings | |||||||||
Principal Amount | $ | $ 862,500 | ||||||||
Interest rate (as a percent) | 0.25% | ||||||||
Proceeds from issuance of debt | ¥ 5,533,238 | $ 844,876 | |||||||
Debt instrument principal amount | 100.00% | 100.00% | |||||||
Interest expense debt | $ | $ 3,353 | ||||||||
Debt instrument carrying amount | 5,499,041 | ||||||||
Deferred finance costs net | 101,100 | ||||||||
Convertible Debt Matures May 1, 2028 | USD | |||||||||
Short term borrowings | |||||||||
Debt instrument convertible conversion ratio | 28.34 | 28.34 | |||||||
Convertible Debt Matures May 1, 2028 | RMB | |||||||||
Short term borrowings | |||||||||
Debt instrument convertible conversion ratio | 35.2818 | 35.2818 | |||||||
Secured bank loan | |||||||||
Short term borrowings | |||||||||
Principal Amount | ¥ 600,000 | ||||||||
Interest rate (as a percent) | 4.80% | 4.80% | 4.80% | ||||||
Maximum borrowing capacity | ¥ 1,009,900 | ||||||||
Remaining borrowing capacity | ¥ 409,900 | ||||||||
Current portion | 37,042 | ||||||||
Non-current portion | 562,958 | ||||||||
Total | ¥ 600,000 |
Trade and Notes Payable (Detail
Trade and Notes Payable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Trade and Notes Payable | |||
Trade payable for raw materials | ¥ 7,089,370 | ¥ 2,991,538 | |
Notes payable | 2,286,680 | 168,977 | |
Total | ¥ 9,376,050 | $ 1,471,307 | ¥ 3,160,515 |
Trade and Notes Payable -Aging
Trade and Notes Payable -Aging Analysis Of Trade and Notes Payable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Trade and Notes Payable | |||
Total | ¥ 9,376,050 | $ 1,471,307 | ¥ 3,160,515 |
Within 3 months | |||
Trade and Notes Payable | |||
Total | 7,539,833 | 3,118,840 | |
Between 3 months and 6 months | |||
Trade and Notes Payable | |||
Total | 1,639,286 | 18,537 | |
Between 6 months and 1 year | |||
Trade and Notes Payable | |||
Total | 161,913 | 10,676 | |
More than 1 year | |||
Trade and Notes Payable | |||
Total | ¥ 35,018 | ¥ 12,462 |
Accruals and Other Current Li_3
Accruals and Other Current Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Accruals and Other Current Liabilities | ||||
Payables for purchase of property, plant and equipment | ¥ 456,395 | ¥ 118,181 | ||
Salaries and benefits payable | 417,449 | 187,972 | ||
Tax payable | 277,233 | 50,088 | ||
Accrued warranty | 154,276 | 55,138 | ¥ 1,477 | |
Payables for logistics expenses | 143,632 | 43,571 | ||
Payables for research and development expenses | 94,517 | 35,032 | ||
Deposits from vendors | 27,716 | 9,120 | ||
Advance from customers | 10,262 | 9,285 | ||
Payables for acquisition of Chongqing Zhizao (Note 5) | 2,000 | 79,552 | ||
Other payables | 295,888 | 59,520 | ||
Total | ¥ 1,879,368 | $ 294,914 | ¥ 647,459 |
Convertible Debts (Details)
Convertible Debts (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Aug. 31, 2021CNY (¥) | Apr. 30, 2021CNY (¥) | Apr. 30, 2021USD ($)$ / shares | Mar. 31, 2019CNY (¥)shares | Jan. 31, 2019CNY (¥)shares | Jan. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Nov. 30, 2017CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jul. 02, 2019CNY (¥) | Jul. 02, 2019USD ($) | Mar. 31, 2019USD ($) | Jan. 31, 2019USD ($) | |
Debt Instrument | ||||||||||||||||||
Non-current portion | ¥ 5,960,899 | ¥ 511,638 | $ 935,395 | |||||||||||||||
Proceeds from issuance of convertible debts | 5,533,238 | $ 868,286 | ¥ 168,070 | |||||||||||||||
Repayments of convertible debt | ¥ 429,692 | |||||||||||||||||
Debt instrument principal amount | 100.00% | 100.00% | ||||||||||||||||
Interest expense debt | 21,369 | 3,353 | ||||||||||||||||
Debt instrument carrying amount | 5,499,041 | |||||||||||||||||
Deferred finance costs net | 101,100 | |||||||||||||||||
Convertible Loan | ||||||||||||||||||
Debt Instrument | ||||||||||||||||||
Outstanding loan principal | ¥ 600,000 | |||||||||||||||||
Proceeds from issuance of convertible debts | ¥ 150,000 | ¥ 450,000 | ||||||||||||||||
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 | |||||||||||||||||
Non-current portion | ¥ 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 | |||||||||||||||||
Class A Ordinary Shares | ||||||||||||||||||
Debt Instrument | ||||||||||||||||||
Share price | $ / shares | $ 150 | |||||||||||||||||
USD | ||||||||||||||||||
Debt Instrument | ||||||||||||||||||
Debt instrument convertible conversion ratio | 28.34 | 28.34 | ||||||||||||||||
RMB | ||||||||||||||||||
Debt Instrument | ||||||||||||||||||
Debt instrument convertible conversion ratio | 35.2818 | 35.2818 | ||||||||||||||||
Convertible Loan | ||||||||||||||||||
Debt Instrument | ||||||||||||||||||
Interest rate (as a percent) | 8.00% | |||||||||||||||||
Term of short term borrowings (in years) | 3 years | |||||||||||||||||
Convertible Promissory Notes | ||||||||||||||||||
Debt Instrument | ||||||||||||||||||
Outstanding loan principal | ¥ 168,070 | ¥ 168,070 | $ 25,000 | $ 25,000 | $ 25,000 | |||||||||||||
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 | ¥ 9,428 | $ 1,376 | ||||||||||||||||
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 | ||||||||||||||||
Convertible Debt Matures May 1, 2028 | ||||||||||||||||||
Debt Instrument | ||||||||||||||||||
Outstanding loan principal | $ | $ 862,500 | |||||||||||||||||
Interest rate (as a percent) | 0.25% | |||||||||||||||||
Proceeds from issuance of debt | ¥ 5,533,238 | $ 844,876 | ||||||||||||||||
Debt instrument principal amount | 100.00% | 100.00% | ||||||||||||||||
Interest expense debt | $ | $ 3,353 | |||||||||||||||||
Debt instrument carrying amount | 5,499,041 | |||||||||||||||||
Deferred finance costs net | ¥ 101,100 | |||||||||||||||||
Percentage of discount on share issue price | 26.56% | 26.56% | ||||||||||||||||
Convertible Debt Matures May 1, 2028 | Class A Ordinary Shares | ||||||||||||||||||
Debt Instrument | ||||||||||||||||||
Debt instrument convertible conversion ratio | 14.17 | 14.17 | ||||||||||||||||
Convertible Debt Matures May 1, 2028 | ADS | ||||||||||||||||||
Debt Instrument | ||||||||||||||||||
Debt instrument convertible conversion ratio | 28.34 | 28.34 | ||||||||||||||||
Convertible Debt Matures May 1, 2028 | USD | ||||||||||||||||||
Debt Instrument | ||||||||||||||||||
Debt instrument convertible conversion ratio | 28.34 | 28.34 | ||||||||||||||||
Convertible Debt Matures May 1, 2028 | RMB | ||||||||||||||||||
Debt Instrument | ||||||||||||||||||
Debt instrument convertible conversion ratio | 35.2818 | 35.2818 |
Revenue Disaggregation (Details
Revenue Disaggregation (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Revenue Disaggregation | ||||
Revenues | ¥ 27,009,779 | $ 4,238,424 | ¥ 9,456,609 | ¥ 284,367 |
Vehicle sales | ||||
Revenue Disaggregation | ||||
Revenues | 26,128,469 | 4,100,127 | 9,282,703 | 280,967 |
Other sales and services | ||||
Revenue Disaggregation | ||||
Revenues | ¥ 881,310 | $ 138,297 | ¥ 173,906 | ¥ 3,400 |
Revenue Disaggregation - Revenu
Revenue Disaggregation - Revenue By Timing of Recognition (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Revenue Disaggregation | ||||
Revenues | ¥ 27,009,779 | $ 4,238,424 | ¥ 9,456,609 | ¥ 284,367 |
Vehicle sales | ||||
Revenue Disaggregation | ||||
Revenues | 26,128,469 | 4,100,127 | 9,282,703 | 280,967 |
Other sales and services | ||||
Revenue Disaggregation | ||||
Revenues | 881,310 | $ 138,297 | 173,906 | 3,400 |
Revenue recognized at a point in time | ||||
Revenue Disaggregation | ||||
Revenues | 26,917,836 | 9,436,095 | 284,195 | |
Revenue recognized at a point in time | Vehicle sales | ||||
Revenue Disaggregation | ||||
Revenues | 26,128,469 | 9,282,703 | 280,967 | |
Revenue recognized at a point in time | Other sales and services | ||||
Revenue Disaggregation | ||||
Revenues | 789,367 | 153,392 | 3,228 | |
Revenue recognized over time | ||||
Revenue Disaggregation | ||||
Revenues | ¥ 91,943 | ¥ 20,514 | ¥ 172 |
Deferred Revenue (Details)
Deferred Revenue (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Deferred revenue-at beginning of the year | ¥ 407,168 | ¥ 62,638 | |
Additions | 27,377,563 | 9,687,382 | ¥ 338,702 |
Recognition | (27,089,986) | (9,342,852) | (276,064) |
Deferred revenue-at end of the year | ¥ 694,745 | ¥ 407,168 | ¥ 62,638 |
Deferred Revenue - Additional i
Deferred Revenue - Additional information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Deferred revenue | ¥ 694,745 | ¥ 407,168 | ¥ 62,638 | |
Deferred revenue, current | 305,092 | $ 47,876 | 271,510 | 56,695 |
Deferred revenue, noncurrent | 389,653 | $ 61,145 | ¥ 135,658 | ¥ 5,943 |
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 | ¥ 305,092 | |||
Period of performance obligation expected to be recognized | 12 months | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Performance obligation expected to be recognized | ¥ 389,653 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | 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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Research and Development Expenses. | ||||
Employee compensation | ¥ 2,079,948 | ¥ 580,157 | ¥ 461,922 | |
Design and development expenses | 1,003,567 | 431,996 | 603,332 | |
Depreciation and amortization expenses | 54,110 | 44,977 | 39,648 | |
Rental and related expenses | 52,985 | 18,818 | 14,269 | |
Travel expenses | 52,307 | 9,360 | 21,815 | |
Others | 43,472 | 14,549 | 28,154 | |
Total | ¥ 3,286,389 | $ 515,706 | ¥ 1,099,857 | ¥ 1,169,140 |
Selling, General and Administ_3
Selling, General and Administrative Expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Selling, General and Administrative Expenses. | ||||
Employee compensation | ¥ 1,414,177 | ¥ 449,109 | ¥ 238,368 | |
Marketing and promotional expenses | 1,100,769 | 264,814 | 176,383 | |
Rental and related expenses | 324,655 | 162,907 | 78,897 | |
Depreciation and amortization expenses | 82,777 | 37,923 | 57,650 | |
Travel expenses | 69,079 | 20,806 | 20,171 | |
Expected credit losses | 6,415 | |||
Impairment of property, plant and equipment | 30,381 | 18,066 | ||
Others | 494,513 | 152,879 | 99,844 | |
Total | ¥ 3,492,385 | $ 548,031 | ¥ 1,118,819 | ¥ 689,379 |
Discontinued Operations - Asset
Discontinued Operations - Assets and liabilities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | |
Assets and Liabilities | ||||
Impairment of Long-Lived Assets Held-for-use | ¥ 27,389 | ¥ 30,381 | ¥ 18,066 | |
SEV related business | Disposal by sale | ||||
Assets and Liabilities | ||||
Total consideration | ¥ 60,000 | ¥ 60,000 |
Discontinued Operations - Resul
Discontinued Operations - Results of operations (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Results of operations | ||
Net loss from discontinued operations, net of tax | ¥ 14,373 | ¥ (20,662) |
Discontinued Operations, Held-for-sale | SEV related business | ||
Results of operations | ||
Revenues | 870 | 9,654 |
Cost of sales | (2,437) | (18,981) |
Gross loss | (1,567) | (9,327) |
Operating expenses | (1,423) | (11,359) |
Loss from operations of discontinued operations | (2,990) | (20,686) |
Others, net | 24 | |
Loss from discontinued operations before income tax expense | (2,990) | (20,662) |
Net loss from discontinued operations, net of tax | ¥ (2,990) | ¥ (20,662) |
Discontinued Operations - Cash
Discontinued Operations - Cash flows (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows | ||
Net cash (used in)/provided by discontinued operating activities | ¥ 148 | ¥ (11,395) |
Net cash (used in)/provided by discontinued investing activities | 59,705 | (10,565) |
Discontinued Operations, Held-for-sale | SEV related business | ||
Cash flows | ||
Net cash (used in)/provided by discontinued operating activities | 148 | (11,395) |
Net cash (used in)/provided by discontinued investing activities | ¥ 59,705 | ¥ (10,565) |
Discontinued Operations - Gain
Discontinued Operations - Gain on disposal of discontinued operations (Details) - Disposal by sale - SEV related business - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | |
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 |
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, $ in Thousands | Aug. 07, 2020USD ($)shares | Jul. 04, 2016CNY (¥) | Sep. 30, 2021HKD ($)shares | Aug. 31, 2021HKD ($)shares | May 31, 2021shares | Feb. 28, 2021shares | Dec. 31, 2020shares | Aug. 31, 2020USD ($)shares | Jul. 31, 2019Voteshares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)shares |
Ordinary Shares | |||||||||||
Class B to Class A Ordinary Shares, Conversion Ratio | 1 | ||||||||||
Cash paid | ¥ 70 | $ 11 | |||||||||
Number of shares issued (in shares) | 1,809,288,310 | 1,929,562,426 | 1,929,562,426 | ||||||||
Number of shares outstanding (in shares) | 1,809,288,310 | 1,929,562,426 | 1,929,562,426 | ||||||||
Issuance of ordinary shares as treasury shares ( Shares) | 6,404,416 | 6,404,416 | |||||||||
Over-allotment option | |||||||||||
Ordinary Shares | |||||||||||
Net proceeds | $ | $ 11,633,130 | ||||||||||
Follow-on offering | |||||||||||
Ordinary Shares | |||||||||||
Net proceeds | $ | $ 1,634,462 | ||||||||||
Class A Ordinary Shares | |||||||||||
Ordinary Shares | |||||||||||
Ordinary shares, shares authorized | 4,000,000,000 | 3,830,157,186 | 4,500,000,000 | 4,500,000,000 | |||||||
Number of votes entitled | Vote | 1 | ||||||||||
Cash paid | $ | $ 380,000 | ||||||||||
Share issuance, net of issuance costs (in shares) | 100,000,000 | 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 | 1,709,903,330 | 1,709,903,330 | ||||||||
Number of shares outstanding (in shares) | 1,453,476,230 | 1,573,750,346 | 1,573,750,346 | ||||||||
Issuance of ordinary shares as treasury shares ( Shares) | 13,869,700 | 34,000,000 | |||||||||
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 paid | $ | $ 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 | 240,000,000 | 500,000,000 | 500,000,000 | |||||||
Number of votes entitled | Vote | 10 | ||||||||||
Number of shares issued (in shares) | 355,812,080 | 355,812,080 | 355,812,080 | ||||||||
Number of shares outstanding (in shares) | 355,812,080 | 355,812,080 | 355,812,080 | ||||||||
Class B Ordinary Shares | Mr. Li Xiang | |||||||||||
Ordinary Shares | |||||||||||
Share issuance, net of issuance costs (in shares) | 108,557,400 | ||||||||||
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 paid | ¥ | ¥ 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 | Jul. 01, 2020CNY (¥)¥ / sharesshares | Jan. 23, 2020$ / sharesshares | Jun. 06, 2018CNY (¥)¥ / sharesshares | Nov. 28, 2017CNY (¥)¥ / sharesshares | Sep. 05, 2017CNY (¥)¥ / sharesshares | Jul. 21, 2017CNY (¥)¥ / sharesshares | Jul. 04, 2016CNY (¥)¥ / sharesshares | Aug. 31, 2020shares | Jan. 23, 2020CNY (¥)shares | Dec. 31, 2019 | Jan. 31, 2019shares | Jul. 02, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2021CNY (¥)Voteshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2021$ / shares | Dec. 31, 2021CNY (¥)¥ / sharesshares | Jan. 23, 2020¥ / shares |
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Shares Issued | 231,758,541 | ||||||||||||||||||
Conversion ratio of preferred Shares to ordinary shares | 1 | ||||||||||||||||||
Percentage of redemption amount payable on Preferred Shares' original issue price | 100.00% | ||||||||||||||||||
Percentage of simple interest on preferred shares' original issue price for accrued and unpaid dividends | 8.00% | ||||||||||||||||||
Redemption Note due and payable | 24 months | ||||||||||||||||||
Vote per share | Vote | 1 | ||||||||||||||||||
Preferred stock dividends declared | ¥ | ¥ 0 | ||||||||||||||||||
Common stock dividends declared | ¥ | 0 | ||||||||||||||||||
Liquidation, percentage of amount on preferred shares original price | 100.00% | ||||||||||||||||||
Liquidation preference, simple non-compounded interest rate (as a percent) | 8.00% | ||||||||||||||||||
Accretion of the preferred shares | ¥ | ¥ 0 | ¥ 651,190 | ¥ 743,100 | ||||||||||||||||
Series Pre-A convertible redeemable preferred shares | |||||||||||||||||||
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Shares Issued | 50,000,000 | ||||||||||||||||||
Issue Price per Share | ¥ / shares | ¥ 2 | ||||||||||||||||||
Proceeds from Issuance | ¥ | ¥ 100,000 | ||||||||||||||||||
Preferred shares, par value | $ / shares | $ 0.0001 | ||||||||||||||||||
Series A1 convertible redeemable preferred shares | |||||||||||||||||||
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Shares Issued | 129,409,092 | ||||||||||||||||||
Issue Price per Share | ¥ / shares | ¥ 6.03 | ||||||||||||||||||
Proceeds from Issuance | ¥ | ¥ 780,000 | ||||||||||||||||||
Preferred shares, par value | $ / shares | 0.0001 | ||||||||||||||||||
Series A2 convertible redeemable preferred shares | |||||||||||||||||||
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Shares Issued | 126,771,562 | ||||||||||||||||||
Issue Price per Share | ¥ / shares | ¥ 7.89 | ||||||||||||||||||
Proceeds from Issuance | ¥ | ¥ 1,000,000 | ||||||||||||||||||
Preferred shares, par value | $ / shares | 0.0001 | ||||||||||||||||||
Series A3 convertible redeemable preferred shares | |||||||||||||||||||
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Shares Issued | 65,498,640 | ||||||||||||||||||
Issue Price per Share | ¥ / shares | ¥ 9.47 | ||||||||||||||||||
Proceeds from Issuance | ¥ | ¥ 620,000 | ||||||||||||||||||
Preferred shares, par value | $ / shares | 0.0001 | ||||||||||||||||||
Series B1 convertible redeemable preferred shares | |||||||||||||||||||
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Shares Issued | 115,209,526 | ||||||||||||||||||
Issue Price per Share | ¥ / shares | ¥ 13.11 | ||||||||||||||||||
Proceeds from Issuance | ¥ | ¥ 1,510,000 | ||||||||||||||||||
Preferred shares, par value | $ / shares | 0.0001 | ||||||||||||||||||
Series B2 convertible redeemable preferred shares | |||||||||||||||||||
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Shares Issued | 55,804,773 | ||||||||||||||||||
Issue Price per Share | ¥ / shares | ¥ 14.16 | ||||||||||||||||||
Proceeds from Issuance | ¥ 790,000 | ¥ 101,200 | $ 7,148,662 | ||||||||||||||||
Preferred shares, par value | $ / shares | 0.0001 | ||||||||||||||||||
Series B3 convertible redeemable preferred shares | |||||||||||||||||||
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Shares Issued | 119,950,686 | 108,077,600 | 108,077,600 | ||||||||||||||||
Issue Price per Share | ¥ / shares | ¥ 14.16 | ||||||||||||||||||
Proceeds from Issuance | ¥ | ¥ 1,701,283 | ||||||||||||||||||
Preferred shares converted from the convertible promissory notes | 11,873,086 | ||||||||||||||||||
Discount on purchase price | 15.00% | 15.00% | |||||||||||||||||
Preferred shares, par value | $ / shares | 0.0001 | ||||||||||||||||||
Series C Convertible Redeemable Preferred Shares | |||||||||||||||||||
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Shares Issued | 267,198,535 | 248,281,987 | 248,281,987 | ||||||||||||||||
Proceeds from Issuance | ¥ | ¥ 3,626,924 | ||||||||||||||||||
Discount on purchase price | 15.00% | ||||||||||||||||||
Shares issued upon exercise of additional warrants | 18,916,548 | 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 | ||||||||||||||||||
Series D Convertible Redeemable Preferred Shares | |||||||||||||||||||
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Shares Issued | 231,758,541 | 231,758,541 | |||||||||||||||||
Proceeds from Issuance | ¥ | ¥ 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 | Mr. Li Xiang | |||||||||||||||||||
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Preferred stock convertible shares issuable | 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 | Mr. Li Xiang | |||||||||||||||||||
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Preferred stock convertible shares issuable | 115,812,080 | ||||||||||||||||||
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 | $ 1.89 | ||||||||||||||||||
Minimum | Series D Convertible Redeemable Preferred Shares | |||||||||||||||||||
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Issue Price per Share | ¥ / shares | ¥ 2.35 | ||||||||||||||||||
Maximum | Series C Convertible Redeemable Preferred Shares | |||||||||||||||||||
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Issue Price per Share | ¥ / shares | ¥ 2.23 | ||||||||||||||||||
Maximum | Series D Convertible Redeemable Preferred Shares | |||||||||||||||||||
Issuances of convertible redeemable preferred shares | |||||||||||||||||||
Issue Price per Share | ¥ / shares | ¥ 2.64 |
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, 2021 | 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) - CNY (¥) ¥ in Thousands | Jul. 01, 2020 | Jun. 06, 2018 | Nov. 28, 2017 | Sep. 05, 2017 | Jul. 21, 2017 | Jul. 04, 2016 | Jan. 23, 2020 | Jul. 02, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Convertible redeemable preferred shares activities | ||||||||||
Beginning balance | ¥ 10,255,662 | ¥ 10,255,662 | ¥ 5,199,039 | |||||||
Beginning balance (in shares) | 910,926,266 | 910,926,266 | 535,544,931 | |||||||
Issuance of preferred shares | ¥ 3,603,655 | |||||||||
Issuance of preferred shares (in shares) | 231,758,541 | |||||||||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 651,190 | ¥ 743,100 | ||||||||
Conversion of convertible promissory notes into Series B3 Preferred Shares | ¥ 166,549 | |||||||||
Conversion of convertible promissory notes into Series B3 Preferred Shares (in shares) | 11,873,086 | |||||||||
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) | 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) | (1,161,601,355) | |||||||||
Ending balance | ¥ 10,255,662 | |||||||||
Ending balance (in shares) | 910,926,266 | |||||||||
Series Pre-A convertible redeemable preferred shares | ||||||||||
Convertible redeemable preferred shares activities | ||||||||||
Beginning balance | ¥ 434,886 | ¥ 434,886 | ¥ 175,847 | |||||||
Beginning balance (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | |||||||
Issuance of preferred shares (in shares) | 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) | (50,000,000) | |||||||||
Ending balance | ¥ 434,886 | |||||||||
Ending balance (in shares) | 50,000,000 | |||||||||
Series A1 convertible redeemable preferred shares | ||||||||||
Convertible redeemable preferred shares activities | ||||||||||
Beginning balance | ¥ 980,949 | ¥ 980,949 | ¥ 907,658 | |||||||
Beginning balance (in shares) | 129,409,092 | 129,409,092 | 129,409,092 | |||||||
Issuance of preferred shares (in shares) | 129,409,092 | |||||||||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 34,229 | ¥ 60,249 | ||||||||
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) | (129,409,092) | |||||||||
Ending balance | ¥ 980,949 | |||||||||
Ending balance (in shares) | 129,409,092 | |||||||||
Series A2 convertible redeemable preferred shares | ||||||||||
Convertible redeemable preferred shares activities | ||||||||||
Beginning balance | ¥ 1,074,959 | ¥ 1,074,959 | ¥ 1,099,816 | |||||||
Beginning balance (in shares) | 126,771,562 | 126,771,562 | 126,771,562 | |||||||
Issuance of preferred shares (in shares) | 126,771,562 | |||||||||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 63,363 | ¥ 90,077 | ||||||||
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) | (126,771,562) | |||||||||
Ending balance | ¥ 1,074,959 | |||||||||
Ending balance (in shares) | 126,771,562 | |||||||||
Series A3 convertible redeemable preferred shares | ||||||||||
Convertible redeemable preferred shares activities | ||||||||||
Beginning balance | ¥ 619,770 | ¥ 619,770 | ¥ 676,458 | |||||||
Beginning balance (in shares) | 65,498,640 | 65,498,640 | 65,498,640 | |||||||
Issuance of preferred shares (in shares) | 65,498,640 | |||||||||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 46,738 | ¥ 61,299 | ||||||||
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) | (65,498,640) | |||||||||
Ending balance | ¥ 619,770 | |||||||||
Ending balance (in shares) | 65,498,640 | |||||||||
Series B1 convertible redeemable preferred shares | ||||||||||
Convertible redeemable preferred shares activities | ||||||||||
Beginning balance | ¥ 1,347,607 | ¥ 1,347,607 | ¥ 1,621,561 | |||||||
Beginning balance (in shares) | 115,209,526 | 115,209,526 | 115,209,526 | |||||||
Issuance of preferred shares (in shares) | 115,209,526 | |||||||||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 136,567 | ¥ 164,540 | ||||||||
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) | (115,209,526) | |||||||||
Ending balance | ¥ 1,347,607 | |||||||||
Ending balance (in shares) | 115,209,526 | |||||||||
Series B2 convertible redeemable preferred shares | ||||||||||
Convertible redeemable preferred shares activities | ||||||||||
Beginning balance | ¥ 710,303 | ¥ 710,303 | ¥ 717,699 | |||||||
Beginning balance (in shares) | 55,804,773 | 55,804,773 | 48,656,111 | |||||||
Issuance of preferred shares (in shares) | 55,804,773 | |||||||||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 64,859 | ¥ 80,891 | ||||||||
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) | (55,804,773) | |||||||||
Ending balance | ¥ 710,303 | |||||||||
Ending balance (in shares) | 55,804,773 | |||||||||
Series B3 convertible redeemable preferred shares | ||||||||||
Convertible redeemable preferred shares activities | ||||||||||
Beginning balance | ¥ 1,551,080 | ¥ 1,551,080 | ||||||||
Beginning balance (in shares) | 119,950,686 | 119,950,686 | ||||||||
Issuance of preferred shares | ¥ 1,395,015 | |||||||||
Issuance of preferred shares (in shares) | 119,950,686 | 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) | 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) | (119,950,686) | |||||||||
Ending balance | ¥ 1,551,080 | |||||||||
Ending balance (in shares) | 119,950,686 | |||||||||
Series C Convertible Redeemable Preferred Shares | ||||||||||
Convertible redeemable preferred shares activities | ||||||||||
Beginning balance | ¥ 3,536,108 | ¥ 3,536,108 | ||||||||
Beginning balance (in shares) | 248,281,987 | 248,281,987 | ||||||||
Issuance of preferred shares | ¥ 3,616,801 | |||||||||
Issuance of preferred shares (in shares) | 267,198,535 | 248,281,987 | ||||||||
Accretion on convertible redeemable preferred shares to redemption value | ¥ 178,007 | ¥ 152,246 | ||||||||
Exercise of Series B-3 Anti-Dilution Warrant | ¥ 305,333 | |||||||||
Exercise of Series B-3 Anti-Dilution Warrant (in shares) | 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) | (267,198,535) | |||||||||
Ending balance | ¥ 3,536,108 | |||||||||
Ending balance (in shares) | 248,281,987 | |||||||||
Series D Convertible Redeemable Preferred Shares | ||||||||||
Convertible redeemable preferred shares activities | ||||||||||
Issuance of preferred shares | ¥ 3,603,655 | |||||||||
Issuance of preferred shares (in shares) | 231,758,541 | 231,758,541 | ||||||||
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) | (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, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss | ¥ (321,455) | $ (50,442) | ¥ (151,657) | ¥ (2,438,536) |
Accretion on convertible redeemable preferred shares to redemption value | 0 | (651,190) | (743,100) | |
Deemed dividend to preferred shareholders upon extinguishment, net | (217,362) | |||
Effect of exchange rate changes on convertible redeemable preferred shares | 10,862 | 117,391 | ||
Net loss attributable to ordinary shareholders of Li Auto Inc. | (321,455) | (50,442) | (791,985) | (3,281,607) |
Including: | ||||
Net loss from continuing operations attributable to ordinary shareholders of Li Auto Inc. | ¥ (321,455) | $ (50,442) | (806,358) | (3,260,945) |
Net (loss)/income from discontinued operations attributable to ordinary shareholders of Li Auto Inc. | ¥ 14,373 | ¥ (20,662) | ||
Denominator: | ||||
Weighted average ordinary shares outstanding-basic | shares | 1,853,320,448 | 1,853,320,448 | 870,003,278 | 255,000,000 |
Weighted average ordinary shares outstanding-diluted | shares | 1,853,320,448 | 1,853,320,448 | 870,003,278 | 255,000,000 |
Basic and diluted net loss per share from continuing operations attributable to ordinary shareholders of Li Auto Inc. | (per share) | ¥ (0.17) | $ (0.03) | ¥ (0.93) | ¥ (12.79) |
Basic and diluted net (loss)/income per share from discontinued operations attributable to ordinary shareholders of Li Auto Inc. | ¥ / shares | 0.02 | (0.08) | ||
Net loss per share | (per share) | (0.17) | (0.03) | (0.91) | (12.87) |
Diluted net loss per share from continuing operations attributable to ordinary shareholders of Li Auto Inc. | (per share) | (0.17) | (0.03) | (0.93) | (12.79) |
Diluted net (loss)/income per share from discontinued operations attributable to ordinary shareholders of Li Auto Inc. | ¥ / shares | 0.02 | (0.08) | ||
Net loss per share | (per share) | ¥ (0.17) | $ (0.03) | ¥ (0.91) | ¥ (12.87) |
Loss Per Share - Additional inf
Loss Per Share - Additional information (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Weighted average numbers of shares excluded from the calculation of diluted loss per share | 44,853,801 | 0 |
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 | 0 | 669,666,355 |
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 | 72,791,430 | 54,605,925 |
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 | 0 | 22,639,154 |
Share-based Compensation - Comp
Share-based Compensation - Compensation expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total | ¥ 1,101,356 | ¥ 142,795 |
Cost of sales | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total | 26,713 | 1,515 |
Research and development expenses | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total | 741,793 | 60,789 |
Selling, general and administrative expenses | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total | ¥ 332,850 | ¥ 80,491 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
2019 and 2020 Share Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Options and Shares Outstanding, Beginning balance | 56,914,000 | 54,760,000 | 51,640,000 | |
Number of Options and Shares, Granted | 36,996,286 | 4,224,000 | 3,430,000 | |
Number of Options and Shares, Forfeited | (4,106,000) | (2,070,000) | (310,000) | |
Number of Options and Shares, Exercised | (6,404,416) | |||
Number of Options and Shares Outstanding, Ending balance | 83,399,870 | 56,914,000 | 54,760,000 | 51,640,000 |
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, Exercised | 0.10 | |||
Weighted average exercise price, Forfeited | 0.10 | 0.10 | 0.10 | |
Weighted average exercise price, Outstanding | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 |
Weighted average remaining contractual life (in years) | 7 years 7 months 28 days | 5 years 11 months 12 days | 6 years 8 months 23 days | 7 years 6 months 25 days |
Aggregate intrinsic value, Outstanding | $ 1,330,228 | $ 814,724 | $ 73,926 | $ 41,312 |
Number of Options Outstanding, Vested and expected | 79,915,157 | 55,413,520 | ||
Weighted average exercise price, Vested and expected | $ 0.10 | $ 0.10 | ||
Weighted average remaining contractual life , Vested and expected (in years) | 6 years 7 months 6 days | 5 years 10 months 24 days | ||
Aggregate intrinsic value, Vested and expected | $ 1,274,647 | $ 793,245 | ||
Number of Options Outstanding, Exercisable | 40,251,584 | 40,410,000 | ||
Weighted average exercise price, Exercisable | $ 0.10 | $ 0.10 | ||
Weighted average remaining contractual life , Exercisable (in years) | 4 years 6 months 18 days | 5 years 4 months 2 days | ||
Aggregate intrinsic value, Exercisable | $ 642,013 | $ 578,469 | ||
2021 Share Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Options and Shares, Granted | 108,557,400 | |||
Number of Options and Shares Outstanding, Ending balance | 108,557,400 | |||
Weighted average exercise price, Granted | $ 14.63 | |||
Weighted average exercise price, Outstanding | $ 14.63 | |||
Weighted average remaining contractual life (in years) | 9 years 2 months 8 days |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of options fair value assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
2019 and 2020 Share Incentive Plan | |||
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 grant | $ 15.78 | $ 1.71 | $ 0.99 |
Expected term (in years) | 10 years | 10 years | 10 years |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
2019 and 2020 Share Incentive Plan | 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 grant | $ 14.42 | $ 1.35 | $ 0.90 |
Risk-free interest rate | 0.93% | 0.69% | 1.98% |
Expected volatility | 47.00% | 45.00% | 47.00% |
2019 and 2020 Share Incentive Plan | 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 grant | $ 17.35 | $ 1.90 | $ 1.45 |
Risk-free interest rate | 1.48% | 1.92% | 3.17% |
Expected volatility | 48.00% | 46.00% | 48.00% |
2021 Share Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Exercise price (USD) | $ 14.63 | ||
Fair value of the ordinary shares on the date of grant | 4.96 | ||
Fair value of the ordinary shares on the date of option grant (USD) | $ 10.67 | ||
Risk-free interest rate | 1.59% | ||
Expected term (in years) | 10 years | ||
Expected dividend yield | 0.00% | ||
Expected volatility | 47.00% |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2021Vote$ / sharesshares | Jul. 31, 2020shares | Jul. 31, 2019shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | May 31, 2021$ / sharesshares | Mar. 31, 2021tranche$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Conversion Ratio, Class B to Class A Ordinary Shares | 1 | |||||||
2019 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Contractual term (in years) | 10 years | |||||||
Vesting period (in years) | 5 years | |||||||
Vesting percentage | 20.00% | |||||||
2019 Plan | Class A Ordinary Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Maximum number of shares authorized | shares | 141,083,452 | |||||||
2020 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Contractual term (in years) | 10 years | |||||||
Vesting period (in years) | 5 years | |||||||
Vesting percentage | 20.00% | |||||||
2020 Plan | Class A Ordinary Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Maximum number of shares authorized | shares | 165,696,625 | |||||||
2019 and 2020 Share Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Granted (in shares) | shares | 36,996,286 | 4,224,000 | 3,430,000 | |||||
Weighted average grant date fair value of options granted | $ / shares | $ 15.78 | $ 1.71 | $ 0.99 | |||||
Unrecognized compensation expenses | $ | $ 250,946 | |||||||
Weighted average period of unrecognized compensation cost | 4 years 3 months 10 days | |||||||
Number of vested and exercisable options (in shares) | shares | 40,251,584 | 40,410,000 | ||||||
Average exercise price (in USD per share) | $ / shares | $ 0.10 | $ 0.10 | ||||||
2019 and 2020 Share Incentive Plan | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Weighted average grant date fair value of options granted | $ / shares | 14.42 | 1.35 | 0.90 | |||||
2019 and 2020 Share Incentive Plan | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Weighted average grant date fair value of options granted | $ / shares | $ 17.35 | $ 1.90 | $ 1.45 | |||||
2021 Share Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Granted (in shares) | shares | 108,557,400 | |||||||
Weighted average grant date fair value of options granted | $ / shares | $ 4.96 | |||||||
Unrecognized compensation expenses | $ | $ 538,445 | |||||||
Exercise price per share | $ / shares | $ 14.63 | |||||||
Exercise price per share ADS | $ / shares | $ 29.26 | |||||||
Number of tranches | 6 | |||||||
Number of option granted per tranche | shares | 18,092,900 | |||||||
Number of Votes | Vote | 10 | |||||||
2021 Share Incentive Plan | Share-based Payment Arrangement, Tranche One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Number of vehicle | 500,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Vehicle Deliveries in Consecutive 12 months to vest | 500,000 | |||||||
2021 Share Incentive Plan | Share-based Payment Arrangement, Tranche Two | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Number of vehicle | 1,000,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Vehicle Deliveries in Consecutive 12 months to vest | 1,000,000 | |||||||
2021 Share Incentive Plan | Share-based Payment Arrangement, Tranche Three | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Number of vehicle | 1,500,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Vehicle Deliveries in Consecutive 12 months to vest | 1,500,000 | |||||||
2021 Share Incentive Plan | Share-based Payment Arrangement, Tranche Four | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Number of vehicle | 2,000,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Vehicle Deliveries in Consecutive 12 months to vest | 2,000,000 | |||||||
2021 Share Incentive Plan | Share-based Payment Arrangement, Tranche Five | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Number of vehicle | 2,500,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Vehicle Deliveries in Consecutive 12 months to vest | 2,500,000 | |||||||
2021 Share Incentive Plan | Share-based Payment Arrangement, Tranche Six | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Number of vehicle | 3,000,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Vehicle Deliveries in Consecutive 12 months to vest | 3,000,000 | |||||||
2021 Share Incentive Plan | Class A Ordinary Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Number of Votes | Vote | 1 | |||||||
2021 Share Incentive Plan | Class B Ordinary Shares | Mr. Li Xiang | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Maximum number of shares authorized | shares | 108,557,400 | 108,557,400 | 108,557,400 | |||||
Exercise price per share | $ / shares | $ 14.63 | $ 14.63 |
Taxation (Details)
Taxation (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2021 | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | 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 | ¥ 168,643 | $ 26,464 | ¥ (22,847) | |
Net operating loss carryforwards | 5,624,288 | |||
Deferred tax assets, operating carryforwards, valuation allowance | 1,083,508 | |||
Deferred tax assets, operating carryforwards, net of valuation allowance | 36,151 | |||
Undistributed earnings of subsidiaries and variable interest entities | ¥ 540,906 | ¥ 13,288 | ||
Percentage of consumption tax | 3.00% | 3.00% | 3.00% | |
Payment of Consumption Tax | ¥ 287,891 | |||
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% | 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) | 150.00% | 150.00% | ||
Additional deduction on qualified research and development expenses (as a percent) | 175.00% | 175.00% | ||
PRC | High and New Technology Enterprises | ||||
Income Tax Disclosure [Line Items] | ||||
Preferential enterprise income tax rate (as a percent) | 15.00% | 15.00% | ||
Effective term | 3 years | 3 years |
Taxation - Composition of incom
Taxation - Composition of income tax benefit (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Composition of income tax benefit | |||
Deferred income tax (benefit)/expense | ¥ (168,643) | $ (26,464) | ¥ 22,847 |
Taxation - Reconciliations of i
Taxation - Reconciliations of income tax expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Reconciliations of the income tax expenses | ||||
Loss before income tax expense | ¥ (152,812) | $ (23,978) | ¥ (188,877) | ¥ (2,417,874) |
Income tax credit computed at PRC statutory income tax rate of 25% | (38,203) | (47,219) | (604,468) | |
Tax effect of tax-exempt entity and preferential tax rate | (89,928) | 30,140 | 230,669 | |
Tax effect of Super Deduction and others | (314,141) | (144,503) | (121,177) | |
Nondeductible expenses | 318,185 | 21,511 | 27,031 | |
Change in valuation allowance | 292,730 | 117,224 | ¥ 467,945 | |
Income tax (benefit)/ expenses | ¥ 168,643 | $ 26,464 | ¥ (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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||||
Net operating loss carryforwards | ¥ 1,119,659 | ¥ 1,144,397 | ¥ 717,495 | |
Accrued expenses and others | 228,734 | 66,773 | 12,545 | |
Impairment of long-lived assets and allowance for credit losses | 13,224 | 7,694 | 73,271 | |
Acquisition of Changzhou Manufacturing Base Phase I and Phase II (Note 11) | 11,969 | |||
Depreciation and amortization | 190 | 16,220 | 26,946 | |
Unrealized financing cost | 13,125 | 27,520 | ||
Unrealized investment loss | 29,664 | |||
Total deferred tax assets | 1,373,776 | 1,248,209 | 887,441 | |
Less: Valuation allowance | (1,297,395) | (1,004,665) | ¥ (887,441) | ¥ (419,496) |
Deferred tax assets, net of valuation allowance | 76,381 | 243,544 | ||
Deferred tax liabilities | ||||
Accelerated tax depreciation and others | (195,121) | (215,030) | ||
Fair value change of certain investments | (15,087) | (5,667) | ||
Total deferred tax liabilities | (210,208) | (220,697) | ||
Deferred tax assets, net | ¥ 22,847 | |||
Deferred tax liabilities, net | ¥ (133,827) |
Taxation - Movement of valuatio
Taxation - Movement of valuation allowance (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥)subsidiary | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Valuation allowance | |||
Balance at beginning of the year | ¥ 1,004,665 | ¥ 887,441 | ¥ 419,496 |
Additions | 395,955 | 148,458 | 467,945 |
Reversal | (103,225) | (31,234) | |
Balance at ending of the year | ¥ 1,297,395 | ¥ 1,004,665 | ¥ 887,441 |
Number of subsidiaries | subsidiary | 2 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and liabilities measured at fair value on a recurring basis (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Equity securities with readily determinable fair value | ¥ 28,452 | ¥ 64,916 |
Recurring | ||
Assets | ||
Short-term investments | 19,157,428 | 18,850,462 |
Equity securities with readily determinable fair value | 28,452 | 64,916 |
Total assets | 19,185,880 | 18,915,378 |
Recurring | Level 1 | ||
Assets | ||
Equity securities with readily determinable fair value | 28,452 | 64,916 |
Total assets | 28,452 | 64,916 |
Recurring | Level 2 | ||
Assets | ||
Short-term investments | 19,157,428 | 18,850,462 |
Total assets | ¥ 19,157,428 | ¥ 18,850,462 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Fair Value Measurement | ||||
Equity securities without readily determinable fair value, impairment charges | ¥ 0 | ¥ 0 | ¥ 5,000 | |
Equity method investments, impairment loss | 0 | 0 | 0 | |
Impairment loss of property, plant and equipment and loss on inventory obsolescence | ¥ 38,163 | $ 5,989 | ¥ 30,381 | ¥ 18,066 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 26, 2019 | Dec. 19, 2019 |
Capital commitments | |||
Less than One Year | ¥ 2,798,736 | ||
1-3 Years | 121,825 | ||
Total | 2,920,561 | ||
Purchase obligations | |||
Less than One Year | 11,798,199 | ||
Total | ¥ 11,798,199 | ||
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Materials | Beijing Yihang | |||
Related Party Balances and Transactions | |||
Purchases from related party | ¥ 31,692 | ¥ 58,361 | ¥ 6,914 |
R&D service | Beijing Yihang | |||
Related Party Balances and Transactions | |||
Purchases from related party | 12,176 | ¥ 4,368 | 25,106 |
R&D service | Suzhou Yihang Intelligent Technology Co., Ltd | |||
Related Party Balances and Transactions | |||
Purchases from related party | 3,772 | ||
Other sales and services | Beijing Sankuai | |||
Related Party Balances and Transactions | |||
Purchases from related party | ¥ 969 | ||
Equipment and installation service | Airx | |||
Related Party Balances and Transactions | |||
Purchases from related party | 1,994 | ||
Battery packs and materials | Neolix Technologies | |||
Related Party Balances and Transactions | |||
Sales to related party | ¥ 1,943 |
Related Party Balances and Tr_4
Related Party Balances and Transactions - Significant related party balances (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Related Party Balances and Transactions | |||
Amount due from related parties | ¥ 1,012 | ¥ 678 | |
Amount due to related parties | 37,455 | $ 5,878 | 19,206 |
Neolix Technologies | |||
Related Party Balances and Transactions | |||
Amount due from related parties | 678 | 678 | |
Changzhou Huixiang | |||
Related Party Balances and Transactions | |||
Amount due to related parties | 30,000 | ||
Beijing Sankuai | |||
Related Party Balances and Transactions | |||
Amount due to related parties | 330 | ||
Beijing Yihang | |||
Related Party Balances and Transactions | |||
Amount due from related parties | 334 | ||
Amount due to related parties | 7,102 | 19,183 | |
Airx | |||
Related Party Balances and Transactions | |||
Amount due to related parties | ¥ 23 | ¥ 23 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statutory Reserves [Line Items] | ||
Restricted net assets | ¥ 11,417,468 | ¥ 7,644,467 |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | ¥ 27,854,224 | $ 4,370,936 | ¥ 8,938,341 | |||
Time deposits and short-term investments | 19,668,239 | 3,086,376 | 19,701,382 | |||
Prepayments and other current assets, net of allowance for credit losses of nil, and RMB2,192 as of December 31, 2020 and 2021, respectively | 480,680 | 75,429 | 353,655 | |||
Total current assets | 52,380,414 | 8,219,631 | 31,391,109 | |||
Non-current assets: | ||||||
Investments in subsidiaries, VIEs and VIEs' subsidiaries | 0 | |||||
Long-term investments | 156,306 | 24,528 | 162,853 | ¥ 126,181 | ¥ 177,141 | |
Total non-current assets | 9,468,499 | 1,485,812 | 4,982,167 | |||
Total assets | 61,848,913 | 9,705,443 | 36,373,276 | |||
Current liabilities: | ||||||
Accruals and other current liabilities | 1,879,368 | 294,914 | 647,459 | |||
Total current liabilities | 12,108,252 | 1,900,050 | 4,309,221 | |||
Noncurrent liabilities: | ||||||
Long-term borrowings | 5,960,899 | 935,395 | 511,638 | |||
Total non-current liabilities | 8,676,359 | 1,361,508 | 2,260,458 | |||
Total liabilities | 20,784,611 | 3,261,558 | 6,569,679 | |||
SHAREHOLDERS' DEFICIT | ||||||
Treasury Shares | (89) | (14) | ||||
Additional paid-in capital | 49,390,486 | 7,750,445 | 37,289,761 | |||
Accumulated other comprehensive loss | (1,521,871) | (238,815) | (1,005,184) | |||
Accumulated deficit | (6,805,635) | (1,067,953) | (6,482,225) | |||
Total shareholders' equity | 41,064,302 | 6,443,885 | 29,803,597 | (5,674,531) | (2,395,775) | |
Total liabilities and shareholders' equity | 61,848,913 | 9,705,443 | 36,373,276 | |||
Class A Ordinary Shares | ||||||
SHAREHOLDERS' DEFICIT | ||||||
Class A/B Ordinary Shares | 1,176 | 185 | 1,010 | |||
Class B Ordinary Shares | ||||||
SHAREHOLDERS' DEFICIT | ||||||
Class A/B Ordinary Shares | 235 | $ 37 | 235 | |||
Parent company | Reportable legal entity | ||||||
Current assets: | ||||||
Cash and cash equivalents | 14,762,875 | 1,149,374 | ¥ 641,007 | ¥ 641,007 | ¥ 45,341 | |
Time deposits and short-term investments | 7,020,662 | 14,486,070 | ||||
Amounts due from subsidiaries of the Group | 23,763,053 | 14,065,341 | ||||
Prepayments and other current assets, net of allowance for credit losses of nil, and RMB2,192 as of December 31, 2020 and 2021, respectively | 10,211 | |||||
Total current assets | 45,556,801 | 29,700,785 | ||||
Non-current assets: | ||||||
Investments in subsidiaries, VIEs and VIEs' subsidiaries | 890,788 | 42,754 | ||||
Long-term investments | 28,452 | 64,916 | ||||
Total non-current assets | 919,240 | 107,670 | ||||
Total assets | 46,476,041 | 29,808,455 | ||||
Current liabilities: | ||||||
Accruals and other current liabilities | 13,798 | 4,858 | ||||
Total current liabilities | 13,798 | 4,858 | ||||
Noncurrent liabilities: | ||||||
Long-term borrowings | 5,397,941 | |||||
Total non-current liabilities | 5,397,941 | |||||
Total liabilities | 5,411,739 | 4,858 | ||||
SHAREHOLDERS' DEFICIT | ||||||
Treasury Shares | (89) | |||||
Additional paid-in capital | 49,390,486 | 37,289,761 | ||||
Accumulated other comprehensive loss | (1,521,871) | (1,005,184) | ||||
Accumulated deficit | (6,805,635) | (6,482,225) | ||||
Total shareholders' equity | 41,064,302 | 29,803,597 | ||||
Total liabilities and shareholders' equity | 46,476,041 | 29,808,455 | ||||
Parent company | Reportable legal entity | Class A Ordinary Shares | ||||||
SHAREHOLDERS' DEFICIT | ||||||
Class A/B Ordinary Shares | 1,176 | 1,010 | ||||
Parent company | Reportable legal entity | Class B Ordinary Shares | ||||||
SHAREHOLDERS' DEFICIT | ||||||
Class A/B Ordinary Shares | ¥ 235 | ¥ 235 |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Operating expenses: | ||||
Selling, general and administrative | ¥ (3,492,385) | $ (548,031) | ¥ (1,118,819) | ¥ (689,379) |
Research and development | (3,286,389) | (515,706) | (1,099,857) | (1,169,140) |
Total operating expenses | (6,778,774) | (1,063,737) | (2,218,676) | (1,858,519) |
Loss from operations | (1,017,320) | (159,639) | (669,337) | (1,858,614) |
Other (expense)/income | ||||
Interest expense | (63,244) | (9,924) | (66,916) | (83,667) |
Changes in fair value of warrants and derivative liabilities | 272,327 | (426,425) | ||
Investment income, net | 740,432 | 116,190 | 254,916 | 79,631 |
Others, net | 187,320 | 29,395 | 20,133 | (128,799) |
(Loss)/Income before income tax expenses | (152,812) | (23,978) | (188,877) | (2,417,874) |
Income tax benefit/(expense) | 168,643 | 26,464 | (22,847) | |
Net loss | (321,455) | (50,442) | (151,657) | (2,438,536) |
Accretion on convertible redeemable preferred shares to redemption value | 0 | (651,190) | (743,100) | |
Deemed dividend to preferred shareholders upon extinguishment, net | (217,362) | |||
Effect of exchange rate changes on convertible redeemable preferred shares | 10,862 | 117,391 | ||
Net loss attributable to ordinary shareholders of Li Auto Inc. | (321,455) | (50,442) | (791,985) | (3,281,607) |
Net loss | (321,455) | (50,442) | (151,657) | (2,438,536) |
Other comprehensive income/(loss), net of tax | ||||
Foreign currency translation adjustment, net of tax | (516,687) | (81,079) | (1,020,728) | 2,851 |
Total comprehensive loss, net of tax | (838,142) | $ (131,521) | (1,172,385) | (2,435,685) |
Parent company | Reportable legal entity | ||||
Operating expenses: | ||||
Selling, general and administrative | (27,288) | (9,424) | (5,114) | |
Research and development | (852) | |||
Total operating expenses | (28,140) | (9,424) | (5,114) | |
Loss from operations | (28,140) | (9,424) | (5,114) | |
Other (expense)/income | ||||
Interest expense | (21,369) | (9,332) | ||
Interest income | 10,746 | 4,467 | 20,505 | |
Equity in loss of subsidiaries, VIEs and VIEs' subsidiaries | (563,106) | (520,093) | (2,031,371) | |
Changes in fair value of warrants and derivative liabilities | 272,327 | (426,425) | ||
Investment income, net | 272,991 | 106,823 | 14,880 | |
Foreign exchange loss | (3,023) | (5,861) | (1,084) | |
Others, net | 10,446 | 104 | (595) | |
(Loss)/Income before income tax expenses | (321,455) | (151,657) | (2,438,536) | |
Net loss | (321,455) | (151,657) | (2,438,536) | |
Accretion on convertible redeemable preferred shares to redemption value | (651,190) | (743,100) | ||
Deemed dividend to preferred shareholders upon extinguishment, net | (217,362) | |||
Effect of exchange rate changes on convertible redeemable preferred shares | 10,862 | 117,391 | ||
Net loss attributable to ordinary shareholders of Li Auto Inc. | (321,455) | (791,985) | (3,281,607) | |
Net loss | (321,455) | (151,657) | (2,438,536) | |
Other comprehensive income/(loss), net of tax | ||||
Foreign currency translation adjustment, net of tax | (516,687) | (1,020,728) | 2,851 | |
Total comprehensive loss, net of tax | ¥ (838,142) | ¥ (1,172,385) | ¥ (2,435,685) |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information - Condensed statements of cash flows (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2018CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net cash provided by operating activities | ¥ 8,340,385 | $ 1,308,788 | ¥ 3,139,804 | ¥ (1,793,710) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Placement of time deposits | (1,308,296) | (205,300) | (1,038,017) | (1,725,148) | |
Redemption of time deposits | 1,630,773 | 255,904 | 601,968 | 1,265,877 | |
Placement of short-term investments | (220,850,351) | (34,656,239) | (105,279,461) | (7,998,736) | |
Redemption of short-term investments | 220,345,863 | 34,577,074 | 87,699,180 | 7,020,989 | |
Net cash used in investing activities | (4,257,244) | (668,054) | (18,737,725) | (2,574,836) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Proceeds from issuance of convertible debts | 5,533,238 | 868,286 | 168,070 | ||
Proceeds from follow-on offering, net of issuance cost | 9,990,955 | ||||
Proceeds from exercise of share options | 1,139 | 179 | |||
Proceeds from issuance of ordinary shares | 70 | 11 | |||
Net cash provided by financing activities | 16,709,533 | 2,622,090 | 24,710,697 | 5,655,690 | |
Effects of exchange rate changes on cash and cash equivalents | (472,129) | (74,086) | (376,646) | 53,722 | |
Net increase in cash, cash equivalents and restricted cash | 20,320,545 | 3,188,738 | 8,736,130 | 1,340,866 | |
Cash, cash equivalents at beginning of the year | 8,938,341 | ||||
Cash, cash equivalents at end of the year | 27,854,224 | $ 4,370,936 | 8,938,341 | ||
Parent company | Reportable legal entity | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net cash provided by operating activities | 367,063 | 109,961 | 26,492 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Payments to, and investments in subsidiaries, VIEs and VIEs' subsidiaries | (10,157,678) | (10,006,889) | (4,384,396) | ||
Placement of time deposits | (298,284) | (1,725,148) | |||
Redemption of time deposits | 297,654 | 463,527 | 1,265,877 | ||
Placement of short-term investments | (173,133,568) | (75,367,086) | (35,157) | ||
Redemption of short-term investments | 180,386,757 | 60,452,428 | |||
Net cash used in investing activities | (2,905,119) | (24,458,020) | (4,878,824) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs | 3,851,034 | 5,254,333 | |||
Proceeds from issuance of convertible debts | 5,533,238 | 168,070 | |||
Proceeds from IPOs and concurrent private placements, net of issuance cost | 11,004,778 | 11,034,685 | |||
Proceeds from follow-on offering, net of issuance cost | 9,990,955 | ||||
Proceeds from exercise of share options | 1,139 | ||||
Proceeds from issuance of ordinary shares | 70 | ||||
Net cash provided by financing activities | 16,539,225 | 24,876,674 | 5,422,403 | ||
Effects of exchange rate changes on cash and cash equivalents | (387,668) | (20,248) | 25,595 | ||
Net increase in cash, cash equivalents and restricted cash | 13,613,501 | 508,367 | 595,666 | ||
Cash, cash equivalents at beginning of the year | ¥ 45,341 | 1,149,374 | 641,007 | 641,007 | |
Cash, cash equivalents at end of the year | ¥ 14,762,875 | ¥ 1,149,374 | ¥ 641,007 |
Subsequent Event (Details)
Subsequent Event (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | ||
Apr. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Joint venture | |||
Subsequent Event [Line Items] | |||
Equity interest (as a percent) | 70.00% | ||
Equity interest held by another shareholder | 30.00% | ||
Subsequent Event | Xin Wang Da Electric Vehicle and Battery Limited | |||
Subsequent Event [Line Items] | |||
Cash consideration | ¥ 400,000 | ||
Equity ownership (as a percent) | 3.20% | ||
Subsequent Event | Joint venture | |||
Subsequent Event [Line Items] | |||
Cash consideration | ¥ 210,000 |