7 Chinese AI Stocks to Watch: Top Picks & Investment Insights

Name	Why Selected as AI-Related Stock
Alibaba	- Large-Scale AI Investments - AI-Driven Strategy - Integration of Cloud Computing and AI - Full-Scenario AI Applications - Self-Developed AI Models
Baidu	- Long-Term Strategic Focus on AI - Continuous and Significant R&D Investment - Full-Stack AI Technology Layout - Comprehensive AI Product Matrix - Market Leadership in Multiple AI Segments
JD.com	- Active Investment in and Application of AI - Integration of AI into Core Business Operations - Development of Large Language Models - Establishment of Dedicated AI Research Department - Opening up of AI Capabilities to Other Enterprises
NetEase	- Continuous Investment and Innovation in AI - Deep Application of AI in Core Businesses - Layout in Key AI Fields like Large Models, NLP, Computer Vision - Using AI for Product Development and Service Optimization
XPENG Motors	- Innovation and Technological Investment in Intelligent Electric Vehicles - Application of AI in Autonomous Driving, Intelligent Cockpits, and In-Vehicle Operating Systems - Significant Resource Allocation to AI R&D and Application
NIO	- Full-Stack AI Technology Layout - Self-Developed AI Chips - AI-Driven Intelligent Systems - Development of Intelligent Driving Technologies - In-Vehicle AI Assistant NOMI
Li Auto	- Heavy Investment in Autonomous Driving Technology R&D - Development of an Intelligent Cockpit with a Self-Developed Large Model - Application of AI in R&D and Production - Strategic Focus on AI as a Core Direction

The Chinese AI company DeepSeek has caused significant disruption in the global stock market, particularly affecting tech and AI-related stocks. On January 27, 2025, DeepSeek announced the development of a large language model that can compete with U.S. giants but at a fraction of the cost. This revelation led to a sharp decline in U.S. and European tech stocks, as investors reassessed the competitive landscape of the AI industry.

DeepSeek's AI model, called R1, reportedly matches the capabilities of state-of-the-art chatbots while utilizing only a small fraction of the specialized chips essential for leading AI companies. The company claims to have developed this model for under $6 million, a stark contrast to the billions invested by major U.S. tech firms in their AI initiatives. This cost-efficiency has challenged the prevailing assumption that substantial financial resources are necessary to develop advanced AI models.

The impact on the stock market was immediate and significant. The tech-heavy Nasdaq Composite plummeted by 3.6%, marking its worst performance since September 2022. The S&P 500 fell by 1.9%, while the Dow Jones Industrial Average experienced a more modest decline of 0.1%, reflecting the concentrated impact on tech stocks.

Nvidia, the foremost supplier of AI chips, saw its stock price drop by 16.9%, wiping out over $100 billion in market capitalization. Other major tech companies also faced substantial losses, with Microsoft and Amazon each declining by 3%, and Meta Platforms dropping by 1%. The selloff extended beyond traditional tech companies, affecting firms involved in AI infrastructure. For instance, Constellation Energy, which had plans to restart a nuclear power plant to supply energy for Microsoft's data centers, lost over 20% of its value.

The impact of DeepSeek's announcement was felt globally. In Europe, semiconductor-related stocks experienced significant declines. ASML, a Dutch manufacturer of chip equipment, saw its shares drop by nearly 9%. BE Semiconductor Industries and ASM International faced even steeper declines of over 11% and 13%, respectively. In Asia, Japan's SoftBank Group, which recently announced a major AI infrastructure investment, lost 8.3% of its value.

The market reaction reflects growing concerns about the sustainability of massive investments in AI infrastructure by U.S. tech giants. Investors are reassessing the need for extensive chip purchases and data center expansions in light of DeepSeek's more cost-effective approach. This development has also raised questions about the U.S.'s ability to maintain its perceived dominance in the AI sector, especially considering the restrictions placed on the sale of advanced chips to China.

However, skepticism remains about the long-term implications of DeepSeek's announcement. Some analysts question whether the Chinese company has found a way to circumvent chip restrictions and what specific chips they used in their model. The true impact of this development on the AI industry's economic structure, from chip manufacturers to utility companies, is yet to be fully understood.

As the market adjusts to this new reality, investors are closely watching how major U.S. tech companies will respond to this challenge in their upcoming earnings reports. The DeepSeek revelation has undoubtedly added a new dimension to the global AI race, potentially reshaping investment strategies and competitive dynamics in the tech sector.

Alibaba

Why It's Considered an AI-Related Stock

Alibaba is considered an AI-related stock primarily due to the following reasons:

1. Large-Scale AI Investments: The company continues to increase its investment in AI technology, including self-developed large models and investments in AI startups.
2. AI-Driven Strategy: Clearly proposes a "user-first, AI-driven" development strategy, using AI as the core driving force.
3. Integration of Cloud Computing and AI: Alibaba Cloud business is deeply integrated with AI, providing customers with AI infrastructure and services.
4. Full-Scenario AI Applications: Widely applies AI technology in multiple business scenarios such as e-commerce, logistics, and finance.
5. Self-Developed AI Models: Launches large language models like "Tongyi Qianwen" and continuously optimizes and upgrades them.

Company Overview

Founded in 1999, Alibaba Group is one of the world's leading technology companies. Its main businesses include e-commerce, cloud computing, digital media and entertainment, etc. The company has a broad user base in China and globally, owning well-known brands such as Taobao, Tmall, and Alibaba Cloud. Alibaba is committed to promoting the digital transformation of business and society through technological innovation.

Key Technologies/Products/Services

1. E-commerce Platforms: Taobao, Tmall, AliExpress, etc.
2. Cloud Computing: Alibaba Cloud
3. Artificial Intelligence: Tongyi Qianwen large language model
4. Logistics: Cainiao Network
5. Digital Payment: Alipay (through affiliated company Ant Group)
6. Digital Media: Youku, Alibaba Pictures, etc.

Market Position

• Leader in China's e-commerce market, with the largest user base and transaction volume.
• One of the world's leading cloud service providers, with a leading market share in the Asia-Pacific region.
• A leading company in AI technology research, development, and application, with competitiveness in multiple AI fields.
• Also holds an important position in cross-border e-commerce, digital payment, and other fields.

Financial Performance

• Key Metrics
  • Q2 FY2024 Revenue: 236.5 billion RMB
  • Active Consumers: Over 900 million (China retail market)
  • Cloud Computing Revenue: 26.5 billion RMB (Q1 FY2024)
• Revenue Trends
  • Stable growth in recent years, but the growth rate has slowed down.
  • International commerce and cloud computing businesses have become new growth points.
  • AI-related revenue shows rapid growth.
• Profitability
  • Overall profitable, but subject to fluctuations due to investment and competition.
  • Core e-commerce business has strong profitability.
  • Cloud computing business profitability is gradually improving.

Future Outlook and Challenges

Outlook:

1. Continued innovation and application of AI technology will bring new growth opportunities to the company.
2. Internationalization strategy is expected to expand new market space.
3. Synergistic development of cloud computing and AI businesses is expected to become a new profit growth point.
4. Enhance user experience through technological innovation and consolidate core business advantages.

Challenges:

1. Uncertainty in domestic and international regulatory environments.
2. Intensified market competition, especially in emerging fields such as short video e-commerce.
3. Large investment in technology research and development may affect profitability in the short term.
4. Geopolitical risks and cultural differences faced during internationalization.
5. Continuous challenges of maintaining innovation vitality and attracting top talent.

Baidu

Why It's Considered an AI-Related Stock

Baidu is considered an AI-related stock primarily due to the following reasons:

1. Long-Term Strategic Focus: Baidu began to lay out its AI business in 2010, making AI the company's core strategic direction.
2. Continuous and Significant R&D Investment: Baidu's R&D investment in the AI field exceeds 170 billion RMB, with R&D expenses accounting for 22.4% of revenue.
3. Full-Stack AI Technology Layout: Has independently developed key technologies from chips, frameworks, models to application levels.
4. AI Product Matrix: Launched important products in multiple AI fields, such as the Ernie Bot large model, intelligent cloud, and autonomous driving.
5. Market Leadership: Holds a leading market position in several AI segments such as intelligent cloud and autonomous driving.

Company Overview

Founded in 2000, Baidu is a leading Internet and AI company in China. The company's main businesses include mobile ecosystem, intelligent cloud, and intelligent driving. Baidu is listed on both Nasdaq and the Hong Kong Stock Exchange and is one of the earliest Chinese tech giants to lay out AI.

Key Technologies/Products/Services

1. Ernie Bot Large Model: Baidu's self-developed large-scale pre-trained model, which is the core of the company's AI strategy.
2. Baidu Intelligent Cloud: Provides AI cloud services, ranking first in China's AI public cloud market share.
3. Apollo Autonomous Driving Platform: A world-leading open autonomous driving platform.
4. Apollo Go: An autonomous driving mobility service platform with over 2 million cumulative orders.
5. PaddlePaddle Deep Learning Framework: An AI development platform that has gathered 5.35 million developers.
6. Xiaodu Smart Devices: Leads the market share of smart speakers and smart screens.

Market Position

1. Has been the number one in the AI public cloud service market for four consecutive years.
2. The world's largest provider of autonomous driving mobility services.
3. The number one in shipments of smart speakers and smart screens in the Chinese market.
4. In the global AI ecosystem landscape, it is listed as an AI-Native Giant alongside Google and OpenAI.

Financial Performance

• Key Metrics
  • Total Revenue in 2022: 123.675 billion RMB
  • Net Income Attributable to Baidu (Non-GAAP): 20.68 billion RMB, a year-on-year increase of 10%
  • R&D Expenses as a Percentage of Revenue: 22.4%
• Revenue Trends
  • Q4 2022 Revenue: 33.077 billion RMB
  • Rapid growth in AI-related business revenue, such as the average daily calls of the Ernie Bot large model increasing 30 times within a year.
• Profitability
  • Q4 2022 Net Income Attributable to Baidu: 5.371 billion RMB, a year-on-year increase of 32%
  • Intelligent cloud business has been profitable for multiple consecutive quarters.

Future Outlook and Challenges

Outlook:

1. AI applications will experience explosive growth in 2025.
2. Ernie Bot will be integrated with multiple mainstream businesses, opening up new business opportunities.
3. The intelligent cloud business is expected to increase its market share with the help of AI advantages.
4. Autonomous driving technology continues to advance commercialization and reduce operating costs.

Challenges:

1. The AI field is becoming increasingly competitive, and the pace of technological iteration is accelerating.
2. The AI commercialization model is still being explored, and there is uncertainty in revenue conversion.
3. Uncertainty in the global economic environment may affect revenue from traditional businesses such as advertising.
4. Changes in regulatory policies may affect the application and promotion of AI technology.

JD.com

Why It's Considered an AI-Related Stock

JD.com actively invests in and applies artificial intelligence technology, integrating AI into its core business operations. The company widely uses AI technology in smart supply chains, personalized recommendations, intelligent customer service, and intelligent logistics to improve operational efficiency and user experience. JD.com has also established a dedicated AI research department, developed several large language models, and opened up its AI capabilities to empower other enterprises.

Company Overview

JD.com is a leading e-commerce platform and technology service provider in China, covering retail, logistics, fintech, and other fields. The company positions itself as a "technology and service enterprise based on supply chain" and provides comprehensive services to consumers and enterprise customers through its self-operated and platform models. JD.com has a strong self-built logistics network and is the largest self-operated e-commerce platform in China.

Key Technologies/Products/Services

• Smart Supply Chain Management System
• JD Cloud Platform
• Large Language Models (such as Yanxi, K-plug, Vega, etc.)
• Intelligent Warehousing and Distribution Systems
• Personalized Recommendation Engine
• Intelligent Customer Service System
• AR/VR Shopping Experience

Market Position

JD.com is the second-largest e-commerce platform in China and has a leading advantage in 3C electronics and home appliances. The company is an industry leader in self-operated e-commerce, intelligent logistics, and supply chain services. JD.com's technological innovation capabilities and AI application level are among the best in China's Internet industry.

Financial Performance

• Key Metrics
  • Q3 2024 Net Revenue: 260 billion RMB, a year-on-year increase of 5%
  • Active User Count: Double-digit growth for four consecutive quarters
  • Significant improvement in gross margin and non-GAAP net margin
• Revenue Trends JD.com has maintained steady growth in recent years, especially in electronic products, home appliances, and supermarket categories. The company actively expands new businesses, such as JD Logistics and JD Health, to provide new impetus for revenue growth.
• Profitability The company's profitability continues to improve. By improving operational efficiency and optimizing cost structure, it has achieved rapid profit growth. In Q3 2024, JD.com achieved a double improvement in gross margin and net margin.

Future Outlook and Challenges

Outlook:

• Continue to deepen the application of AI technology in various business segments to improve operational efficiency.
• Expand cross-border e-commerce business and expand into international markets.
• Strengthen the new retail layout and integrate online and offline resources.
• Develop the industrial internet and provide digital solutions for more enterprises.

Challenges:

• The domestic e-commerce market is highly competitive, requiring continuous innovation to maintain competitiveness.
• International expansion faces cultural differences and regulatory challenges.
• The rapid pace of technological updates requires continuous R&D investment.
• Data security and user privacy protection are increasingly important, requiring stronger measures.

NetEase

Why It's Considered an AI-Related Stock

NetEase is considered an AI-related stock mainly because of its continuous investment and innovation in the AI field. The company not only deeply applies AI technology in core businesses such as gaming, music, and education, but also promotes the intelligent upgrade of various business lines through self-developed AI technology. NetEase has layouts in key AI fields such as large models, natural language processing, and computer vision, and applies these technologies to product development and service optimization.

Company Overview

Founded in 1997, NetEase is a leading Internet technology company in China, with businesses covering online games, music streaming, online education, e-commerce, and other fields. The company was listed on Nasdaq in the United States in 2000 and had a secondary listing in Hong Kong in 2020. NetEase is driven by technological innovation and continues to invest and research in cutting-edge technology fields such as artificial intelligence, cloud computing, and big data.

Key Technologies/Products/Services

• Gaming AI: NetEase widely applies AI technology in game development to enhance gaming experience and operational efficiency.
• Music AI: NetEase Cloud Music uses AI technology for personalized recommendations, music creation assistance, etc.
• Education AI: NetEase Youdao developed the "Ziyue" education large model and launched products such as AI oral English coaches.
• Enterprise Service AI: NetEase Intelligent Enterprise launched the "Shanghe" large model, which is used in customer service, marketing, and other scenarios.
• AI R&D Platform: NetEase Fuxi provides an AI technology R&D and application platform.

Market Position

NetEase occupies a leading position in China's Internet and gaming industry and is one of the world's top seven gaming companies. It also has a high market share in music streaming, online education, and other fields. The company is at the forefront of AI technology application, especially in gaming AI, music AI, and other segments.

Financial Performance

• Key Metrics
  • 2023 Total Revenue: 103.5 billion RMB
  • R&D Investment: 16.5 billion RMB
  • Gaming Business Revenue: Approximately 70% of total revenue
• Revenue Trends NetEase has maintained stable growth in recent years, especially in gaming and innovative businesses.
• Profitability The company maintains a high level of profitability, with a gross margin of over 50%. Businesses such as NetEase Cloud Music have also turned profitable, showing good profitability.

Future Outlook and Challenges

Outlook:

• AI technology will be further integrated into various business lines, enhancing product competitiveness and operational efficiency.
• Internationalization strategy is expected to bring new growth points, especially in overseas gaming.
• Continued investment in AI R&D is expected to make breakthroughs in cutting-edge fields such as large models.

Challenges:

• Changes in regulatory policies in the gaming industry may affect business development.
• Intensified competition in the international market requires continuous improvement of product and service quality.
• Rapid iteration of AI technology requires high-intensity R&D investment to maintain competitiveness.
• Increased requirements for data security and privacy protection require strengthening related technologies and management measures.

XPENG Motors

Why It's Considered an AI-Related Stock

XPENG Motors is considered an AI-related stock primarily due to its innovation and technological investment in the field of intelligent electric vehicles. The company is committed to applying artificial intelligence technology to autonomous driving, intelligent cockpits, and in-vehicle operating systems, and continues to invest significant resources in the research, development, and application of AI technology.

Company Overview

Founded in 2015 and headquartered in Guangzhou, XPENG Motors is a leading intelligent electric vehicle company in China. The company focuses on the design, development, manufacturing, and sales of intelligent electric vehicles, targeting tech-savvy middle-class consumers. XPENG Motors was listed on the New York Stock Exchange in 2020 and on the Main Board of the Hong Kong Stock Exchange in 2021.

Key Technologies/Products/Services

1. Intelligent Driving System: XNGP advanced intelligent assisted driving system.
2. AI Tianji Operating System: Equipped with GPT-4 level dialogue capabilities and a tens of billions parameter model.
3. Self-Developed AI Chip: XPENG Turing chip, customized for AI large models.
4. Intelligent Electric Vehicle Product Line: Includes P7+, G6, MONA M03, and other models.
5. XPENG Kunpeng Super Electric System: Combines pure electric and extended-range technologies.
6. Flying Car Technology: XPENG AEROHT flying car project.
7. AI Robot: XPENG Iron humanoid robot.

Market Position

XPENG Motors occupies an important position in the Chinese intelligent electric vehicle market, particularly in the high-end segment. The company is at the forefront of the industry in autonomous driving and intelligent cockpit technology. In the first three quarters of 2024, XPENG Motors achieved the top sales of high-end pure electric vehicles from China in the European market, demonstrating the initial success of its internationalization strategy.

Financial Performance

• Key Metrics
  • Q3 2024 Total Revenue: 10.1 billion RMB
  • Q3 2024 Vehicle Deliveries: 46,533 units
  • Q3 2024 Gross Margin: 15.3% (a record high)
• Revenue Trends XPENG Motors' revenue is showing a rapid growth trend. Q3 2024 total revenue increased by 24.5% quarter-over-quarter and 18.4% year-over-year.
• Profitability Although the company is still in a loss-making state, the loss margin is gradually narrowing. The net loss in Q3 2024 was 1.81 billion RMB, a significant improvement from 3.89 billion RMB in the same period of 2023. The continuous improvement in gross margin also indicates that the company's profitability is strengthening.

Future Outlook and Challenges

Outlook:

1. Product Line Expansion: Plans to launch nearly 30 models in the next three years, including new models and upgrades of existing models.
2. Internationalization Strategy: Continue to expand into European, Middle Eastern, and Southeast Asian markets.
3. AI Technology Deepening: Further enhance the XNGP intelligent driving system and promote the application of end-to-end large models in the automotive field.
4. Diversified Development: Layout in cutting-edge fields such as flying cars and AI robots.

Challenges:

1. Intense Market Competition: Faces dual competition from traditional automakers and emerging electric vehicle companies.
2. Maintaining Technological Leadership: Requires continuous and substantial R&D investment to maintain its technological advantages.
3. Profitability Pressure: Although gross margin has improved, further improvement in profitability is still needed.
4. Supply Chain Management: Global supply chain issues such as chip shortages may affect production and delivery.
5. Policy Risks: Changes in new energy vehicle subsidy policies may affect sales.

NIO

Why It's Considered an AI-Related Stock

NIO is considered an AI-related stock mainly due to the following:

1. Full-Stack AI Technology Layout: NIO has a comprehensive AI technology layout in multiple fields such as intelligent driving chips, vehicle operating systems, and intelligent systems.
2. Self-Developed AI Chips: Successfully developed the 5nm automotive-grade intelligent driving chip "Shenji NX9031".
3. AI-Driven Intelligent Systems: Launched the AI-based vehicle-wide operating system "SkyOS" and the intelligent system "Banyan 3".
4. Intelligent Driving Technology: Developed the intelligent driving world model "NIO WorldModel" and the intelligent driving technology architecture "NADArch 2.0".
5. AI Assistant NOMI: The in-vehicle AI assistant NOMI is NIO's signature AI product, with emotional intelligence and a multi-agent architecture.

Company Overview

Founded in 2014, NIO is a global intelligent electric vehicle company dedicated to providing users with high-performance intelligent electric vehicles and the ultimate user experience. The company has R&D, production, sales, and service organizations around the world and has begun to enter international markets. NIO was listed on the New York Stock Exchange in 2018 and had secondary listings on the Hong Kong and Singapore stock exchanges in 2022.

Key Technologies/Products/Services

1. Intelligent Electric Vehicles: Includes ES8, ES6, EC6, ET7, ET5, and other models.
2. Self-Developed AI Chip: 5nm automotive-grade intelligent driving chip "Shenji NX9031".
3. AI-Driven Operating System: Vehicle-wide operating system "SkyOS".
4. Intelligent System: AI-based "Banyan 3" intelligent system.
5. Intelligent Driving Technology: Intelligent driving world model "NIO WorldModel" and technology architecture "NADArch 2.0".
6. AI Assistant: In-vehicle AI assistant NOMI.
7. Battery Swapping Service: Unique "battery-vehicle separation" model and extensive battery swapping station network.

Market Position

NIO occupies a leading position in China's high-end intelligent electric vehicle market. In the pure electric vehicle market above 300,000 RMB, the NIO brand occupies more than 40% market share. The company not only performs strongly in the domestic market but has also begun to enter international markets such as Europe, demonstrating the potential for global development.

Financial Performance

• Key Metrics:
  • Q3 2024 Revenue: 18.6735 billion RMB
  • Q3 2024 Deliveries: 61,855 vehicles
  • Cumulative Deliveries as of October 31, 2024: 619,851 vehicles
• Revenue Trends: Q3 2024 revenue decreased by 2.1% year-over-year and increased by 7.0% quarter-over-quarter.
• Profitability: Q3 2024 net loss was 5.0597 billion RMB, an increase of 11.0% year-over-year. Vehicle gross margin continued to improve to 13.1%.

Future Outlook and Challenges

Outlook:

1. Technology Innovation: Continue to make technological breakthroughs in AI, intelligent driving, and other fields.
2. Product Line Expansion: Plans to launch more models, including the high-end flagship ET9 and a new brand targeting the mass market.
3. Internationalization Strategy: Continue to expand overseas markets, especially the European market.
4. Sales Target: Plans to double sales in 2025, reaching 440,000 vehicles.
5. Profitability Expectation: Aims to achieve profitability in 2026.

Challenges:

1. Intense Market Competition: Faces dual competition from traditional automakers and emerging electric vehicle companies.
2. Technology Catch-Up: Still needs to narrow the gap with international giants in core technologies and component manufacturing.
3. Infrastructure Construction: Needs to continue to improve the charging and battery swapping network.
4. Cost Control: Continued high R&D investment may affect short-term profitability.
5. Internationalization Process: Brand building and market expansion in overseas markets will still take time.

Li Auto

Why It's Considered an AI-Related Stock

Li Auto is considered an AI-related stock mainly due to the following:

1. Intelligent Driving Technology: Li Auto invests heavily in autonomous driving technology research and development, launched the industry's first end-to-end + VLM dual-system solution, and plans to achieve L3 level autonomous driving in 2025.

2. Intelligent Cockpit: The company developed the intelligent assistant "Li Auto Classmate" based on the self-developed large model Mind GPT, providing users with a highly intelligent in-car experience.

3. AI Application in R&D and Production: Li Auto widely applies AI technology in product research and development, intelligent manufacturing, and other links to improve efficiency and quality.

4. Strategic Transformation: The company clearly regards artificial intelligence as the core strategic direction and aims to become a global leading artificial intelligence enterprise.

Company Overview

Founded in 2015, Li Auto is a leading new energy vehicle manufacturer in China. The company focuses on the design, development, manufacturing, and sales of high-end intelligent electric vehicles, mainly for the family user market. Li Auto adopts a direct sales model and has established an extensive sales and service network in major Chinese cities. The company is headquartered in Beijing, and the production base is located in Changzhou.

Key Technologies/Products/Services

1. Extended-Range Electric Technology: One of Li Auto's core technologies, which solves the range anxiety problem of pure electric vehicles.

2. Intelligent Driving System: Adopts an end-to-end + VLM dual-system architecture and has achieved full-scenario NOA and mapless NOA functions.

3. Intelligent Cockpit: Equipped with the self-developed large model Mind GPT, providing a highly intelligent interactive experience.

4. Product Line: Includes Li L9, L8, L7, and other mid-to-large SUV models, as well as the upcoming pure electric MPV Li MEGA.

5. Direct Sales and Service Network: Covers major cities in China, providing one-stop car purchase and after-sales service.

Market Position

Li Auto occupies a leading position in China's high-end new energy SUV market. In 2023, the company's market share in the new energy vehicle market above 300,000 RMB exceeded 10%, becoming the sales champion in this segment. Among China's new car-making forces, Li Auto's cumulative delivery volume and revenue scale are in a leading position.

Financial Performance

• Key Metrics
  • 2023 Full-Year Deliveries: 376,030 vehicles, a year-on-year increase of 182.2%
  • 2023 Revenue: 123.85 billion RMB, a year-on-year increase of 173.5%
  • 2023 Net Profit: 11.81 billion RMB, turning profitable
• Revenue Trends Li Auto has maintained rapid growth in recent years, becoming the first Chinese new car-making force to exceed 100 billion in revenue in 2023. In the first three quarters of 2024, it continued to maintain a strong growth momentum, with revenue in the third quarter reaching 42.9 billion RMB, a record high.
• Profitability The company has been profitable for several consecutive quarters, and the gross margin has remained at a healthy level of over 20%. The net profit margin for the full year of 2023 reached 9.5%, showing good profitability.

Future Outlook and Challenges

Outlook:

1. Continue to expand the market share of high-end new energy vehicles.
2. Accelerate the layout of pure electric products and enrich the product matrix.
3. Deepen the application of AI technology and enhance intelligent driving and intelligent cockpit capabilities.
4. Explore overseas markets and achieve global layout.

Challenges:

1. Intensified market competition, especially the catch-up of traditional luxury brands and other new forces.
2. Fluctuations in raw material prices and supply chain risks.
3. Pressure on technological innovation, especially in the fields of AI and autonomous driving.
4. Uncertainty in consumer acceptance of new energy vehicles and policy support.

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Disclaimer: This post is for informational purposes only and is not investment advice. Stocks or financial products mentioned may carry significant risks. Please make investment decisions carefully and at your own risk.

Best of luck with your investments!