Li Auto's Net Profit Plummeted 85.8% Last Year, CEO Li Xiang Claims Need to Cultivate Store Managers with Million-Yuan Annual Income?

Operator Finance Network Li Guangyan / Text

On March 12, Li Auto released its Q4 and full-year 2025 financial performance report. Over the past year, although Li Auto remained profitable, its net profit experienced a significant decline, drawing attention.

The financial report shows that in Q4 2025, Li Auto achieved revenue of 28.8 billion yuan, down 35% year-over-year but up 5.2% quarter-over-quarter; net profit was 20.2 million yuan, a noticeable decrease from the same period last year, down 99.4%.

Overall, for the full year of 2025, Li Auto’s revenue was 112.3 billion yuan, a 22.3% decrease year-over-year; net profit was 1.139 billion yuan, down 85.8%; vehicle sales revenue was 106.7 billion yuan, a 23.0% decrease from the previous year. The company stated this was mainly due to a reduction in vehicle deliveries.

Public data shows that in 2025, Li Auto delivered a total of 406,300 new vehicles, an 18.81% decline year-over-year, no longer holding the top spot among emerging car manufacturers. In Q4, deliveries were 109,000 units, down 31.2% year-over-year.

Perhaps due to the decline in sales, Li Auto has made adjustments to its sales system. It is understood that in March this year, Li Auto officially launched the “Store Partner Program,” decentralizing operational decision-making and introducing profit sharing. Li Auto Chairman and CEO Li Xiang also stated at the earnings conference, “We aim to cultivate a large number of store managers earning over one million yuan annually, enabling outstanding managers to earn two to three times the industry average, and from a sales capability perspective, ensure the company’s order volume and deliveries remain in the top tier of premium vehicles.”

Regarding Q1 2026, Li Auto provided a cautious performance forecast, expecting deliveries of 85,000 to 90,000 units, a decrease of 3.1% to 8.5% year-over-year; revenue is projected to be between 20.4 billion and 21.6 billion yuan, down 16.7% to 21.3% year-over-year.

Liu Qing, Director of the Automotive Department at Operator Finance Network, stated that although last year’s performance declined, Li Auto still has a cash reserve of 101.2 billion yuan, indicating a healthy financial position.

(Edited by: Li Guangyan)