HK Stock Market Move | LI AUTO (02015) rose more than 2% after earnings release, MEGA recall incident impacts performance, will bet on autonomous driving intelligence.

LI AUTO-W (02015) rose more than 2% after the performance report. As of the release, it rose by 1.95% to HK$73.1, with a turnover of HK$674 million. On the news side, ideal car released its third quarter financial report. In the third quarter, the company's revenue was 27.4 billion yuan, a year-on-year decrease of 36.2%; net loss was 620 million yuan, compared to a net profit of 2.8 billion yuan in the same period last year, turning from profit to loss. According to the financial report, the company's gross profit margin in the third quarter was 16.3%, with a gross profit of 4.469 billion yuan; if excluding the impact of MEGA recall expenses, the gross profit margin was 20.4%. Therefore, the MEGA recall event led to an estimated loss of about 1.13 billion yuan for ideal car in the third quarter. At the end of October this year, ideal car announced the recall of 11,411 MEGA vehicles to replace coolant, power batteries, and other components, mainly due to the insufficient corrosion resistance of the coolant, which may cause the risk of power battery thermal runaway. CEO Li Xiang said during this financial report conference call that in the next ten years, ideal's products will no longer be electric vehicles or smart terminals, but will be embodied as Siasun Robot & Automation. Li Xiang announced during the conference call that ideal car will firmly return to the "startup company management model" in the second decade, abandoning the professional manager system; redefining products as "embodied intelligence" Siasun Robot & Automation, focusing on the understanding of AI in the physical world and active service capabilities. Li Xiang clearly stated that the AI system with the self-developed M100 chip will be delivered in 2026, with the core transformation changing the car from "passive functional stacking" to "active automation service".