Li Auto's Q2 results show revenue decreased by 15.1% YoY, slightly above market estimates of RMB 24.96 billion. The company swung from a net profit of RMB 1.10 billion in the same period last year to a net loss of RMB 1.71 billion, with an adjusted net loss of RMB 1.50 billion, exceeding market estimates. Gross margin significantly narrowed from 20.1% in the same period last year to 11.0%. The company expects Q3 revenue to be between RMB 26.6 billion and RMB 28.0 billion, with the midpoint approximately 17% lower than market expectations; delivery volume is projected to be between 95,000 and 100,000 units, also significantly below market estimates. Despite pressure on profitability, Li Auto's net cash flow from operating activities turned positive to RMB 15 million in Q2, and it continues to advance its USD 1 billion share repurchase program, having already spent approximately USD 632 million.