理想汽車 (LI) 2022 Q2 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for Li Auto's Second Quarter 2022 Earnings Conference Call. At this time, all participants are in listen only mode. Today's conference call is being recorded. I will now turn the call over to your host, Janet Zhang, Investor Relations Director of Li Auto. Please go ahead, Janet.

你好，女士們，先生們。感謝您等待理想汽車 2022 年第二季度收益電話會議。此時，所有參與者都處於只聽模式。今天的電話會議正在錄音中。我現在將把電話轉給主持人，理想汽車投資者關係總監張珍妮特。請繼續，珍妮特。

Thank you, Jason. Good evening and good morning, everyone. Welcome to Li Auto's Second Quarter 2022 Earnings Conference Call. The Company's financial and operating results were published in the press release earlier today and were posted on the Company's IR website.

謝謝你，傑森。大家晚上好，早上好。歡迎來到理想汽車2022年第二季度財報電話會議。公司的財務和經營業績已於今天早些時候發佈在新聞稿中，並發佈在公司的投資者關係網站上。

On today's call, we have our President, Mr Kevin Yanan Shen, and our CFO, Mr Johnny Tie Li begin with prepared remarks. Our founder and CEO, Mr Xiang Li, will join for the Q&A discussion.

在今天的電話會議上，我們的總裁 Kevin Yanan Shen 先生和我們的首席財務官 Johnny Tie Li 先生首先發表了準備好的講話。我們的創始人兼首席執行官李向先生將參加問答討論。

Before I continue, please be reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Company's actual results may be materially different from the views expressed today.

在我繼續之前，請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款作出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。因此，本公司的實際結果可能與今天所表達的觀點存在重大差異。

Further information regarding risks and uncertainties is included in certain filings of the Company with the US Securities and Exchange Commission and the Hong Kong Stock Exchange. The Company does not assume any obligation to update any forward-looking statements except as required under applicable law.

有關風險和不確定性的進一步信息包含在公司向美國證券交易委員會和香港聯交所提交的某些文件中。除適用法律要求外，本公司不承擔更新任何前瞻性陳述的任何義務。

Please also note that Li Auto's Earnings Press Release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial matters. Please refer to Li Auto's disclosure documents on the IR section of our website, which contains a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures. With that, I will now turn the call over to our President. Please go ahead, Kevin.

另請注意，理想汽車的收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務信息以及未經審計的非 GAAP 財務事項的討論。請參閱理想汽車在我們網站投資者關係部分的披露文件，其中包含未經審計的非公認會計原則措施與可比公認會計原則措施的對賬。有了這個，我現在將把電話轉給我們的總統。請繼續，凱文。

Thank you, Janet. Hello, everyone, and thank you for joining our call today. I will review the key highlights of the second quarter and discuss our Flagship Smart SUV, Li L9, which has received highly positive feedback from family users for its best-in-class combination of drivability, safety, comfort and intelligence.

謝謝你，珍妮特。大家好，感謝您今天加入我們的電話會議。我將回顧第二季度的主要亮點，並討論我們的旗艦智能SUV Li L9，它以一流的駕駛性能、安全性、舒適性和智能性組合獲得了家庭用戶的高度好評。

We witnessed the continued consumer adoption of EVs in the second quarter. China's retail sales of new energy passenger vehicles surpassed 1.17 million during this quarter, more than doubled year over year according to the China Passenger Car Association, with penetration rates climbing to 27.1% from 21.8% in the first quarter. We believe it will continue to rise, supported by more NEV model launches, continuous iterations of smart features and the increasing user preference for clean mobility.

我們見證了第二季度消費者對電動汽車的持續採用。根據中國乘用車協會的數據，本季度中國新能源乘用車零售量超過117萬輛，同比增長一倍多，滲透率從一季度的21.8%攀升至27.1%。我們相信，在更多新能源車型推出、智能功能不斷迭代以及用戶對清潔出行日益增加的偏好的支持下，它將繼續上升。

We remain focused on offering state-of-art product to our family users. Despite the challenges posed by the COVID-19 resurgence across cities nationwide from March to May, we delivered 28,687 vehicles during the second quarter, representing a 63.2% year-over-year increase. These strong delivery results contributed to a 73.3% year over year increase in total revenues, which totaled RMB8.73 billion. Our deliveries in July reached 10,422, up 21.3% year over year.

我們仍然專注於為我們的家庭用戶提供最先進的產品。儘管從 3 月到 5 月，COVID-19 在全國各城市的死灰復燃帶來了挑戰，但我們在第二季度交付了 28,687 輛汽車，同比增長 63.2%。這些強勁的交付業績推動總收入同比增長 73.3%，達到 87.3 億元人民幣。我們 7 月份的交付量達到 10,422 輛，同比增長 21.3%。

On August 1, we proudly rode the 200,000th Li ONE off the production line at our Changzhou manufacturing base. It took us just 986 days to reach this production milestone, once again setting a record speed among China's emerging EV manufacturers, following our historic speed in reaching the 100,000th unit mark. Li ONE is also the first domestic branded premium model priced above RMB300,000 to achieve this production milestone.

8月1日，第20萬輛李ONE在常州生產基地隆重下線。我們僅用了 986 天的時間就達到了這一生產里程碑，繼我們達到 10 萬輛的歷史速度之後，再次刷新了中國新興電動汽車製造商的創紀錄速度。力一ONE也是實現這一生產里程碑的首款售價30萬元以上的國產品牌高端車型。

Moving to our supply chain, the COVID-19 resurgence severely affected the auto supply chain in the second quarter. Currently, there are remaining disruptions and difficulties, but they moderated as the pandemic became more contained. Although we are cautiously optimistic that our supply chain will normalize in the second half of the year, we should highlight that potential volatility remains and will require us to constantly stay on high alert, especially given the ongoing pandemic.

轉向我們的供應鏈，COVID-19 的複蘇嚴重影響了第二季度的汽車供應鏈。目前，仍然存在中斷和困難，但隨著大流行變得更加可控，它們有所緩和。儘管我們對我們的供應鏈將在下半年恢復正常持謹慎樂觀的態度，但我們應該強調潛在的波動仍然存在，並且需要我們不斷保持高度警惕，特別是考慮到持續的大流行。

As we navigate the continuous unpredictability, we focus on reinforcing our supply chain system, strengthening our partnership with past suppliers to tackle parts shortage and cost inflation and at the same time redouble our emphasis on auto parts quality control.

隨著我們應對持續的不可預測性，我們專注於加強我們的供應鏈系統，加強與過去供應商的合作夥伴關係，以解決零部件短缺和成本上漲問題，同時加倍重視汽車零部件的質量控制。

Moving to profitability, in the second quarter we continued to see that the power of our product, our execution consistency and our operational resilience enabled us to mitigate the cost inflation that we have been experiencing along with the rest of the industry. As a result, our second quarter gross margin remained relatively solid at 21.5%, up 2.6% year over year. As we remain devoted to R&D and network expansion to fuel our future growth, our operating expense increased by 91.9% year over year.

轉向盈利能力，在第二季度，我們繼續看到我們產品的力量、我們的執行一致性和我們的運營彈性使我們能夠緩解我們與行業其他公司一起經歷的成本膨脹。因此，我們第二季度的毛利率保持相對穩定，為 21.5%，同比增長 2.6%。由於我們繼續致力於研發和網絡擴張以推動我們未來的增長，我們的運營費用同比增長了 91.9%。

Meanwhile, we continued to optimize our cost structure and manage our cashflow effectively. Despite the pandemic's impact, we achieved another quarter of positive operating cashflow of RMB1.13 billion and free cashflow of RMB451.7 million.

同時，我們不斷優化成本結構，有效管理現金流。儘管受到大流行的影響，我們又實現了11.3億元人民幣的正經營現金流和4.517億元人民幣的自由現金流。

As part of our effort to accelerate growth and accommodate additional user demand with new model launches, we continued to expand our direct sales and servicing network. As of July 31, we have 259 retail stores covering 118 cities as well as 311 servicing centers and Li Auto's authorized body and paint shops operating in 226 cities.

作為我們通過推出新車型來加速增長和滿足額外用戶需求的努力的一部分，我們繼續擴大我們的直銷和服務網絡。截至 7 月 31 日，我們在 118 個城市擁有 259 家零售店，在 226 個城市擁有 311 個維修中心和理想汽車的授權車身和油漆店。

While the pace of our sales network expansion has been challenged by the COVID-19 resurgence, we will strive to further extend our reach to users by upgrading our existing stores. In order to optimize charging experience for our users, we also rolled out the charging map function in our Li Auto application on August 17.

雖然我們的銷售網絡擴張步伐受到 COVID-19 復甦的挑戰，但我們將努力通過升級現有商店來進一步擴大我們對用戶的影響。為了優化用戶的充電體驗，我們也於8月17日在Li Auto應用中推出了充電地圖功能。

The map covers over 30,000 charging stations and 300,000 charging posts in 31 provinces and over 300 cities, from six main charging station operators, including State Grid, Star Charge and others, providing convenient energy replenishment options for our users.

地圖覆蓋全國31個省、300多個城市的3萬多個充電站和30萬個充電樁，來自國家電網、星充等六家主要充電站運營商，為用戶提供便捷的能源補充選擇。

On June 21, we unveiled Li L9, our Flagship Smart SUV. Reflecting our intense focus on family users, we developed Li L9 to, Create a Mobile Home, Create Happiness. Thanks to our relentless R&D efforts and outstanding product definition capabilities, Li L9 [boasts](corrected by company after the call) cutting-edge premium features to provide outstanding handling and automated comfort and safety.

6 月 21 日，我們發布了旗艦智能 SUV Li L9。反映我們對家庭用戶的高度關注，我們開發了 Li L9 以，創建移動房屋，創造幸福。由於我們不懈的研發努力和出色的產品定義能力，Li L9 [吹噓]（由公司在電話後更正）尖端的高級功能，以提供出色的操控性和自動化的舒適性和安全性。

Every Li L9 comes standard with our flagship full-stack self-developed autonomous driving system, Li AD Max. Its enhanced functionality bolstered by upgraded perception and vehicle control capability was highly recognized by users in the test drives. As the first volume production vehicle with redundancy design applied to its powertrain, steering system, braking system and the power supply system for the computing platform, it offers enhanced reliability and safety. Supported by a computing platform composed of two Qualcomm Snapdragon automotive-grade 8155 chips and our inhouse deep-learning-based [multimodule](corrected by company after the call) interactive technology, Li L9 provides a smart interior space featuring five-screen, three-dimensional interactions for family members of all ages.

每輛Li L9都標配我們的旗艦全棧自主駕駛系統Li AD Max。通過升級的感知和車輛控制能力支持的增強功能在試駕中得到了用戶的高度認可。作為首款在動力總成、轉向系統、制動系統和計算平台供電系統採用冗餘設計的量產車，它提供了更高的可靠性和安全性。由兩顆高通驍龍車規級8155芯片組成的計算平台和自主研發的基於深度學習的【多模塊】（來電後修正）交互技術支持，李L9提供五屏三屏的智能車內空間所有年齡段的家庭成員的維度互動。

We have received positive feedback along with very strong order intake for Li L9, particularly from our target family users. We will commence delivery of Li L9 by the end of August.

我們收到了積極的反饋以及非常強勁的 Li L9 訂單量，特別是來自我們的目標家庭用戶。我們將在 8 月底開始交付 Li L9。

While we forge ahead with our new model launches, we also continued to pursue our optimization for our existing products. In June, we released the OTA 3.1 update for Li ONE, taking the Li ONE user experience to the next level. This update features a highly anticipated remote vehicle control function, allowing users to move the vehicle forward and backward in a straight line through our mobile application. This remote capability greatly increases users' convenience and improves their ability to park in narrow spaces.

在我們繼續推出新車型的同時，我們也繼續對現有產品進行優化。 6 月，我們發布了 Li ONE 的 OTA 3.1 更新，將 Li ONE 的用戶體驗提升到了一個新的水平。本次更新具有備受期待的遠程車輛控制功能，允許用戶通過我們的移動應用程序直線向前和向後移動車輛。這種遠程功能大大增加了用戶的便利性，並提高了他們在狹窄空間停車的能力。

The update also includes an audio equalizer function and further optimization of our fully self-developed NOA function with enhanced accuracy for recommended lane change and ramp entry or exit.

該更新還包括音頻均衡器功能，並進一步優化了我們完全自主開發的 NOA 功能，提高了建議的車道變換和匝道進出的準確性。

Furthermore, we are steadily working on our plan of launching high power charging BEV model next year. We're also working on deploying our HPC network to support our HPC BEV.

此外，我們正在穩步推進明年推出大功率充電 BEV 車型的計劃。我們還在努力部署我們的 HPC 網絡以支持我們的 HPC BEV。

Li L9 will be the first model in the industry to adopt the NVIDIA Orin platform to deliver advanced autonomous driving features, including NOA function, showcasing our strong R&D capability with high efficiency.

Li L9 將成為業內首款採用 NVIDIA Orin 平台提供包括 NOA 功能在內的先進自動駕駛功能的車型，展示了我們強大的研發能力和高效率。

Our self-developed autonomous driving algorithm has won much public recognition internationally. For example, we ranked first in the 2021 NuScenes 3D vision detection and tracking tasks and also won first place in the ICCV 2021 workshop INTERPRET Challenge.

我們自主研發的自動駕駛算法在國際上獲得了廣泛的認可。例如，我們在 2021 NuScenes 3D 視覺檢測和跟踪任務中排名第一，在 ICCV 2021 研討會 INTERPRET Challenge 中也獲得第一名。

We also have the largest number of autonomous driving users in China. As of July 31 this year, users with access to NOA function exceeded 130,000. The technology, knowledge and insights accumulated through Li ONE give us the advantage by helping us enhance our R&D efficiency during Li L9's development process, refine products and further optimize the safety and performance of autonomous driving.

我們還擁有中國最多的自動駕駛用戶。截至今年7月31日，使用NOA功能的用戶超過13萬。通過 Li ONE 積累的技術、知識和洞察力為我們提供了優勢，幫助我們在 Li L9 的開發過程中提高研發效率，完善產品並進一步優化自動駕駛的安全性和性能。

In summary, we will continue to create happiness and value for our family users by honing our existing products and expanding our model line up while enhancing our brand recognition for family users. We will also execute on our technology roadmap to solidify our lead in EREVs and advance our HPC BEV development.

綜上所述，我們將繼續通過打磨現有產品和擴大車型陣容，為家庭用戶創造幸福和價值，同時提升我們對家庭用戶的品牌認知度。我們還將執行我們的技術路線圖，以鞏固我們在 EREV 方面的領先地位並推進我們的 HPC BEV 開發。

With that, I would like to turn it over to our CFO, Johnny, for a closer look at our financial performance. Please go ahead.

有了這個，我想把它交給我們的首席財務官約翰尼，以便更仔細地了解我們的財務業績。請繼續。

Thank you, Kevin. Hello, everyone. I will now go over some of our financial results for the second quarter of 2022. To be mindful of the length of this call, I will address our financial highlights here and encourage you to refer to our earnings press release, which is posted online for additional details.

謝謝你，凱文。大家好。現在，我將介紹我們 2022 年第二季度的一些財務業績。為了注意這次電話會議的時間，我將在這裡討論我們的財務亮點，並鼓勵您參考我們的收益新聞稿，該新聞稿在線發布額外細節。

Total revenues in the second quarter of 2022 were RMB8.73 billion or US$1.3 billion, representing an increase of 73.3% from RMB5.04 billion in the second quarter of last year. This included RMB8.48 billion or US$1.27 billion of vehicle sales in the second quarter of 2022, representing an increase of 73% from RMB4.9 billion in the second quarter of 2021.

2022年第二季度總收入為87.3億元人民幣或13億美元，比去年第二季度的50.4億元人民幣增長73.3%。其中包括 2022 年第二季度的 84.8 億元人民幣或 12.7 億美元的汽車銷售額，較 2021 年第二季度的 49 億元人民幣增長 73%。

The year-over-year increase in vehicle sales was mainly attributable to the increase in vehicle deliveries in the second quarter of this year. On a quarter-over-quarter basis, affected by supply shortage due to the COVID-19 in the second quarter of 2022, total revenues and vehicle sales decreased by 8.7% and 8.9% respectively.

汽車銷量同比增長主要是由於今年第二季度汽車交付量增加所致。與上一季度相比，受 2022 年第二季度 COVID-19 導致供應短缺的影響，總收入和汽車銷量分別下降 8.7% 和 8.9%。

Revenues from other sales and services were RMB249 million or US$37.2 million in the second quarter of 2022, representing an increase of 83.6% from RMB135.7 million in the second quarter of 2021 and a decrease of 1.7% from RMB253.4 million in the first quarter of 2022.

2022年第二季度其他銷售和服務收入為人民幣2.49億元或3720萬美元，較2021年二季度的人民幣1.357億元增長83.6%，較上一季度的人民幣2.534億元下降1.7% 2022 年第一季度。

The increase in revenue from other sales and services over the second quarter of 2021 was mainly attributable to the increased sales of charging stalls, accessories and services in line with higher accumulated vehicle sales.

2021年第二季度其他銷售和服務收入的增加主要是由於充電樁、配件和服務的銷售增加，與累計車輛銷售增加一致。

Cost of sales in the second quarter of 2022 was RMB6.85 billion or US$1.02 billion, representing an increase of 57.7% year over year and a decrease of 7.4% quarter over quarter.

2022年第二季度銷售成本為人民幣68.5億元或10.2億美元，同比增長57.7%，環比下降7.4%。

Gross profit in the second quarter of 2022 was RMB1.88 billion or US$280.4 million, representing an increase of 97.1% year over year and a decrease of 13.2% quarter over quarter.

2022年第二季度毛利潤為18.8億元人民幣或2.804億美元，同比增長97.1%，環比下降13.2%。

Vehicle margin in the second quarter was 21.2% compared with 18.7% in the second quarter of last year and 22.4% in the first quarter of 2022. The increase in vehicle margin over the second quarter of 2021 was primarily driven by a higher average selling price attributable to the increase of vehicle deliveries of 2021 Li ONE since its release in May 2021.

第二季度汽車利潤率為 21.2%，而去年第二季度為 18.7%，2022 年第一季度為 22.4%。2021 年第二季度汽車利潤率的增長主要是由於平均售價較高原因是2021年李ONE自2021年5月發布以來，2021年的車輛交付量有所增加。

Gross margin in the second quarter of 2022 was 21.5% compared with 18.9% in the second quarter of last year and 22.6% in the first quarter of 2022.

2022年第二季度毛利率為21.5%，去年第二季度為18.9%，2022年第一季度為22.6%。

Operating expenses in the second quarter of 2022 were RMB2.86 billion or US$426.5 million, representing an increase of 91.9% year over year and increase of 10.9% quarter over quarter.

2022年第二季度營業費用為人民幣28.6億元或4.265億美元，同比增長91.9%，環比增長10.9%。

Research and development expenses in the second quarter of 2022 were RMB1.53 billion or US$228.7 million, representing an increase of 134.4% year over year and an increase of 11.5% quarter over quarter. The increase in R&D expenses over the second quarter of 2021 and first quarter of 2022 was primarily driven by increased employee compensation as a result of our growing number of R&D staff as well as increased expenses associated with new models to be introduced in the future.

2022年第二季度研發費用為人民幣15.3億元或2.287億美元，同比增長134.4%，環比增長11.5%。 2021 年第二季度和 2022 年第一季度研發費用的增加主要是由於我們的研發人員數量不斷增加以及與未來推出的新車型相關的費用增加導致員工薪酬增加。

Selling, general and administrative expenses in the second quarter of 2022 were RMB1.33 billion or US$197.8m, representing an increase of 58.6% year over year and an increase of 10.2% quarter over quarter. The increase in selling, general and administrative expenses over the second quarter of 2021 and the first quarter of 2022 was primarily driven by increased employee compensation as a result of our growing number of staff, as well as increased rental expenses associated with the expansion of the Company's sales network.

2022年第二季度銷售、一般及管理費用為人民幣13.3億元或1.978億美元，同比增長58.6%，環比增長10.2%。與 2021 年第二季度和 2022 年第一季度相比，銷售、一般和管理費用的增加主要是由於我們的員工人數增加導致員工薪酬增加，以及與擴張相關的租金費用增加公司的銷售網絡。

Losses from our operations was RMB978.5 million or US$146.1 million in the second quarter of 2022, representing an increase of 82.6% year over year and an increase of 136.9% quarter over quarter. Net loss was RMB641 million or US$95.7 million in the second quarter of 2022, representing an increase of 172.2% year over year and compared with RMB10.9 million net loss in the first quarter of 2022.

2022年第二季度，我們的經營虧損為人民幣9.785億元或1.461億美元，同比增長82.6%，環比增長136.9%。 2022年第二季度淨虧損為人民幣6.41億元或9,570萬美元，同比增長172.2%，而2022年第一季度淨虧損為人民幣1,090萬元。

Turning to our balance sheet and cashflow. Our cash and cash equivalents, restricted cash, time deposits and short-term investments totaled RMB53.65 billion or US$8.01 billion as of June 30, 2022.

轉向我們的資產負債表和現金流。截至 2022 年 6 月 30 日，我們的現金及現金等價物、受限現金、定期存款和短期投資總額為 536.5 億元人民幣或 80.1 億美元。

Operating cashflow in the second quarter of 2022 was RMB1.13 billion or US$168.6 million. Free cashflow was RMB451.7 million or US$67.4 million in the second quarter of 2022.

2022年第二季度經營現金流為11.3億元人民幣或1.686億美元。 2022 年第二季度的自由現金流為 4.517 億元人民幣或 6740 萬美元。

Now, for our business outlook. For third quarter of 2022, the Company expects the deliveries to be between 27,000 to 29,000 vehicles, representing an increase of 7.5% to 15.5% from the third quarter of 2021.

現在，對於我們的業務前景。公司預計 2022 年第三季度的交付量將在 27,000 至 29,000 輛之間，較 2021 年第三季度增長 7.5% 至 15.5%。

The Company also expects the third quarter total revenues to be between RMB8.96 billion and RMB 9.56 billion, or US$1.34 billion and US$1.43 billion, representing an increase of 15.3% to 22.9% from the third quarter of 2021.

公司還預計第三季度總收入將在人民幣 89.6 億元至人民幣 95.6 億元之間，即 13.4 億美元至 14.3 億美元，較 2021 年第三季度增長 15.3% 至 22.9%。

This business outlook reflects the Company's current and preliminary view on the business situation and the market condition, which is subject to change.

該業務展望反映了公司對業務狀況和市場狀況的當前和初步看法，可能會發生變化。

I will now turn the call over to our operator and start the Q&A session. Thank you.

我現在將把電話轉給我們的接線員並開始問答環節。謝謝你。

(Operator Instructions). All right, our first question comes from Fei Fang from Goldman Sachs. Please go ahead.

（操作員說明）。好的，我們的第一個問題來自高盛的方飛。請繼續。

Great. Yes, thanks for taking my question. The second quarter performance was impressive despite COVID and L9 has outstanding traction for its price point, so congratulations on those. They were well done. My question is about your guidance. So, the third quarter is in question for the 27,000-to-29,000-unit guidance that you provided, can you break it out by Li One and L9 and also, as you ramp the production of the high ASP L9, will growth margin improve? So, that's the first question.

偉大的。是的，謝謝你提出我的問題。儘管 COVID 和 L9 在其價格點上具有出色的吸引力，但第二季度的表現令人印象深刻，因此對此表示祝賀。他們做得很好。我的問題是關於你的指導。因此，對於您提供的 27,000 至 29,000 單位的指導，第三季度存在問題，您能否將其劃分為 Li One 和 L9，並且隨著您提高高 ASP L9 的產量，增長率會提高嗎?所以，這是第一個問題。

My second question is about L9's retail traction. So, the Company disclosed in early August that L9 has received 30,000 confirmed orders, so just wondering if we can have a refreshed discussion in terms of this latest retail trend feedback, especially competition with the other new energy SUVs and MPVs that some of your EV peers have put in the market. (Spoken in Chinese).

我的第二個問題是關於 L9 的零售吸引力。因此，公司在8月初披露，L9已收到3萬輛確認訂單，所以想知道我們是否可以就最新的零售趨勢反饋，特別是與其他新能源SUV和MPV的競爭，你的一些EV同行紛紛投入市場。 （用中文講）。

Fang Fei, this is Kevin. Thank you for your questions. So, your first question for the guidelines, actually we still stick to our previous projection that for September, we are going to ship more than 10,000 L9 and for the second question, actually, for the growth margin, L9 will be higher. It will be higher since it's a high-end product.

方飛，我是凱文。謝謝你的提問。所以，關於指導方針的第一個問題，實際上我們仍然堅持我們之前的預測，即 9 月份我們將出貨超過 10,000 台 L9，而對於第二個問題，實際上，對於增長幅度，L9 會更高。它會更高，因為它是高端產品。

Your second question about the traction. So, right now although last month we already kind of received almost 30,000 orders of L9, today in the past 2 weeks we still see a strong demand coming in for L9.

關於牽引力的第二個問題。因此，目前雖然上個月我們已經收到了近 30,000 份 L9 訂單，但在過去兩週的今天，我們仍然看到 L9 的需求強勁。

Okay, got it. So, a part of my second question was to ask Kevin if he can comment on sort of L9 in the context of this competition with the other SUVs and MPVs that some of your competitors have put in the market, such as Huawei, BYD and so forth. Are you seeing competitive threat from them that sort of you know cause you to change your strategy or introduce more marketing incentives in front of customers?

好，知道了。所以，我第二個問題的一部分是問凱文，在與你的一些競爭對手投放市場的其他 SUV 和 MPV 競爭的背景下，他是否可以評論 L9，比如華為、比亞迪等向前。您是否看到來自他們的競爭威脅，您知道會導致您改變策略或在客戶面前引入更多營銷激勵措施？

Yes. In fact, the L9 has a very unique product positioning. Actually, in this price band with this kind of size and smart features, we don't see there are any product that has a kind of a product proposition close to our L9. So, right now it's more about how much we can convert our customer to place order on our L9, when they have the budget between RMB400,000 to RMB500,000.

是的。事實上，L9有著非常獨特的產品定位。實際上，在這種尺寸和智能功能的價位範圍內，我們沒有看到任何產品具有接近我們 L9 的產品主張。所以，現在更重要的是，當客戶的預算在 400,000 到 500,000 人民幣之間時，我們可以將多少客戶轉化為在我們的 L9 上下訂單。

Okay, that's helpful. Thank you.

好的，這很有幫助。謝謝你。

(Operator Instructions). Our next question comes from Tim Hsiao from Morgan Stanley. Please go ahead.

（操作員說明）。我們的下一個問題來自摩根士丹利的 Tim Hsiao。請繼續。

(Spoken in Chinese). So, my first question, I just want to follow up on the third quarter guidance because I think third quarter volume guidance of 27,000 to 29,000 looks a little bit conservative. So, considering the launch of L9 and improving supply dynamic, should we attribute the conservative sale volume to the transition of Li One only or if the production ramp up of L9 can (inaudible) the expectation or if there's any other reason we should take into consideration? So, it's just simply due to the hiccup or Li One? How long should we expect this kind of impact will last?

（用中文講）。所以，我的第一個問題，我只想跟進第三季度的指導，因為我認為第三季度 27,000 到 29,000 的銷量指導看起來有點保守。因此，考慮到 L9 的推出和供應動態的改善，我們是否應該將保守的銷量僅歸因於 Li One 的過渡，或者 L9 的產量增加是否可以（聽不清）預期，或者是否有任何其他原因我們應該考慮考慮？所以，僅僅是因為打嗝還是李一？我們預計這種影響會持續多久？

My second question is about the sales mix of EREV, the plug-in hybrid and the BEV next year. How should we think about the mix in 2023 and could you provide some updates regarding the numbers of new models? If the mix of the BEV is going to increase substantially next year, should we concern about the potential dilution to our margin or could that hurt our cashflow? So, those are my two questions. Thank you.

我的第二個問題是關於 EREV、插電式混合動力車和 BEV 明年的銷售組合。我們應該如何考慮 2023 年的組合，您能否提供一些有關新模型數量的更新？如果明年 BEV 的組合將大幅增加，我們是否應該擔心我們的利潤率可能被稀釋，還是會損害我們的現金流？所以，這是我的兩個問題。謝謝你。

Tim, this is Kevin. Thank you for your questions. About your first question, in fact when we give out this guidance, of course we have seen some slowdown of the Li One order intake. I think primarily the issue right now is that when we have the new product into our retail stores, a lot of attention has been attracted by the new product, rather than the old product.

蒂姆，這是凱文。謝謝你的提問。關於你的第一個問題，其實在我們發布這個指引的時候，我們當然看到了李一的訂單量有所放緩。我認為目前的主要問題是，當我們將新產品帶入零售店時，新產品而不是舊產品吸引了很多注意力。

Actually, we are working with our sales team to regain the attention from our potential customers for Li One. So, on the other hand about the potential launch of the new product, actually the only comment I can give right now is that it will come in soon and will come in sooner than the expectation. That's the only comment I can give.

實際上，我們正在與我們的銷售團隊合作，以重新獲得潛在客戶對 Li One 的關注。所以，另一方面，關於新產品的潛在推出，實際上我現在唯一能給出的評論是它很快就會上市，而且會比預期的更早上市。這是我唯一能給出的評論。

And for...About the new BEV model we're going to launch, we plan to launch it next year. In fact, as you can expect that for any new model we launch into the market, we have the intention to increase the revenue, also to improve our cashflow, improve our profitability. So, therefore with the new BEV model, in our plan we plan the reasonable profitability, of course, so it won't hurt our cashflow, it won't hurt our growth margin next year.

對於...關於我們將要推出的新 BEV 車型，我們計劃在明年推出。事實上，正如你所料，對於我們投放市場的任何新車型，我們都打算增加收入，同時改善我們的現金流，提高我們的盈利能力。因此，因此，對於新的 BEV 模型，在我們的計劃中，我們當然會規劃合理的盈利能力，因此它不會損害我們的現金流，也不會損害我們明年的增長利潤率。

That's perfect. Thank you very much, Kevin.

那很完美。非常感謝你，凱文。

The next question comes from Bin Wang from Credit Suisse. Please go ahead.

下一個問題來自瑞士信貸的王斌。請繼續。

(Spoken in Chinese). Okay, basically I've got one question about Li One because investor [told me that] three things. Number 1, we hear that in the Li One's waiting time has been reduced to two or three weeks. Secondly, from this month, Li One start to offer around RMB7000 per unit, kind of a promotion for the insurance. Number 3, L8, which will be the next generation (inaudible) Li One, will launch in November this year. Can you confirm those three things from investors? Thank you.

（用中文講）。好的，基本上我有一個關於李一的問題，因為投資者 [告訴我] 三件事。第一，我們聽說在李一的等待時間已經減少到兩三個星期。其次，從本月起，立一開始提供每台7000元左右的優惠，算是對保險的一種促銷。 3 號 L8，將是下一代（聽不清）Li One，將於今年 11 月推出。你能從投資者那裡確認這三件事嗎？謝謝你。

Bill, thank you for your question. First of all, about the waiting time. Actually, the waiting time right now is of course shorter than last month. As I already explained, the order intake is slower right now so therefore we can turn over the delivery faster. About the RMB7000 kind of a promotion, actually yes, you got the information very updated. We kind of released this policy just this Sunday. About the new product you are asking about, I think the same answer I already provided, that it will come soon and sooner than our expectation.

比爾，謝謝你的提問。首先，關於等待時間。其實，現在的等待時間當然比上個月要短。正如我已經解釋過的，現在訂單接收速度較慢，因此我們可以更快地交付交貨。關於7000元的促銷活動，其實是的，你得到的信息非常更新。我們就在這個星期天發布了這項政策。關於你問的新產品，我想我已經提供了同樣的答案，它會比我們的預期來得更快更早。

Okay, thank you. Thanks so much.

好的謝謝你。非常感謝。

The next question comes from Paul Gong from UBS. Please go ahead.

下一個問題來自瑞銀的 Paul Gong。請繼續。

(Spoken in Chinese). So, just translating my two questions. The first question is regarding the cannibalization of L9 versus Li One. How much of the recent weekly softness of the Li One orders is due to the cannibalization of the new model and how much of it do you think is due to the weakening macro environment as well as the weakening demand for the cars in general?

（用中文講）。所以，只是翻譯我的兩個問題。第一個問題是關於 L9 與 Li One 的蠶食。 Li One 近期每週訂單疲軟有多少是由於新車型的蠶食，您認為有多少是由於宏觀環境疲軟以及整體汽車需求疲軟？

My second question is regarding the features or the key highlights of the BEV. I think management previously mentioned that the BEVs and EREVs, they should be based on different models. They have different features. Can you give us a little bit of color on how should we think about the uniqueness or the attractiveness of your BEVs in view of such a crowded market in the BEV market already?

我的第二個問題是關於 BEV 的功能或主要亮點。我認為管理層之前提到 BEV 和 EREV，它們應該基於不同的模型。他們有不同的特點。鑑於 BEV 市場已經如此擁擠，您能否就我們應該如何看待您的 BEV 的獨特性或吸引力給我們一些顏色？

Paul, this is Kevin. I will take your first question and Li Xiang will address the second question. The first question, the thing is that before we're putting the car L9 into our retail stores, before people start to test drive it, actually we see no change of the order intake pattern of Li One.

保羅，這是凱文。我會回答你的第一個問題，李翔會回答第二個問題。第一個問題是，在我們將L9車投放到我們的零售店之前，在人們開始試駕之前，實際上我們並沒有看到力一的訂單接收模式發生變化。

But to a certain extent it's to our surprise that when we have the customer coming into the stores to test drive, some of the customers' original plan was to test drive Li One but when they see L9 and after they test drive the L9, we see -- especially the customer with enough budget -- we see a lot of them converted to L9 customer. So, right now as I just explained, that's one of the reason why we also have some more promotion planned for Li One.

但令我們驚訝的是，當我們有顧客進店試駕時，一些顧客原本打算試駕Li One，但當他們看到L9，試駕L9後，我們看——尤其是有足夠預算的客戶——我們看到他們中的很多人轉變為 L9 客戶。所以，正如我剛才解釋的那樣，這就是為什麼我們還計劃為 Li One 進行更多促銷的原因之一。

And I think...But on the other hand, we still have a confidence that Li One is still a very competitive product because if we compare it with the existing products other than L9, other products in the same price band, RMB300,000 to RMB400,000 price band, Li One is still one of the most competitive products in the market.

而且我認為……但另一方面，我們仍然有信心，Li One 仍然是一個非常有競爭力的產品，因為如果我們將它與除 L9 之外的現有產品進行比較，其他同價位的產品，人民幣 300,000 元到40萬元的價格區間，立一依然是市場上最具競爭力的產品之一。

(Spoke in Chinese) So maybe two angles of differentiation, the first one is around charging. In fact, we already have a prototype running right now that can charge 400 kilometers of range in 10 minutes and the goal here is very similar to a range extended vehicle, which is to replace all internal combustion engine vehicles for customers and to have no anxiety in terms of range.

（中文發言）所以可能有兩個角度的區別，第一個是圍繞充電。其實我們現在已經有樣車在跑，10分鐘可以充400公里，這裡的目標很像增程車，就是替客戶換掉所有內燃機車，不用擔心在範圍方面。

Our data shows that among our L9 customers, 80% of them have home charging and 100% of them have stable charging either at home or in the office. So home charging or office charging is really not the key here. The key challenge is to enable customers to travel freely within key economic zones within China.

我們的數據顯示，在我們的 L9 客戶中，80% 的客戶在家充電，100% 的客戶在家中或辦公室穩定充電。所以家庭充電或辦公室充電真的不是這裡的關鍵。關鍵的挑戰是讓客戶能夠在中國的主要經濟區內自由旅行。

For example, the Yangtze Delta River region, the Beijing-Tianjin region, Wuhan, Sichuan, these big megacity areas, we will support with high power charging so that customers can drive long distances with no driving range anxiety, even if they're driving electric vehicles.

比如長三角地區、京津地區、武漢、四川這些特大城市地區，我們將支持大功率充電，讓客戶即使在開車，也可以遠距離行駛，不用擔心續航里程電動汽車。

So the second advantage when it comes to electric vehicles is space. Because of the engineering possibility enabled by electric vehicles and new architectures and new body types, we can provide a lot more space in our electric vehicles compared to range extended vehicles with the same footprint.

因此，電動汽車的第二個優勢是空間。由於電動汽車以及新架構和新車身類型帶來的工程可能性，與具有相同佔地面積的增程式汽車相比，我們可以在電動汽車中提供更多空間。

(Spoken in Chinese). If the L9 cannibalization of Li ONE is higher than expected, how much of the capacity saving will prepare for L9?

（用中文講）。如果Li ONE的L9蠶食率高於預期，那麼將為L9準備多少產能？

The cap, that is 15,000 for L9.

L9 的上限是 15,000。

Thank you very much, thank you. (Spoken in Chinese)

非常感謝，謝謝。 （用中文講）

The next question comes from Ming Lee from Bank of America. Please go ahead.

下一個問題來自美國銀行的李明。請繼續。

(Spoken in Chinese). My first question is regarding the gross margin trend and also the battery cost trend for second half this year. (Spoken in Chinese).

（用中文講）。我的第一個問題是關於今年下半年的毛利率趨勢以及電池成本趨勢。 （用中文講）。

The second question is regarding the competitive landscape. Recently we also see Aito brand volume sales has grown steadily and besides that, also how do we expect the new Li ONE or L8 product competitiveness versus the current Li ONE? Thank you.

第二個問題是關於競爭格局。最近我們也看到Aito品牌銷量穩步增長，除此之外，我們如何期待新的Li ONE或L8產品與現在的Li ONE相比的競爭力？謝謝你。

This is Kevin, thank you for your question. The first question about the battery cost, actually as we all know that in the recent months the raw material for batteries has come down a little bit. But we would expect that for the coming months this year, the raw material costs will again fluctuate a lot.

我是凱文，謝謝你的提問。第一個關於電池成本的問題，其實大家都知道，最近幾個月電池的原材料有所下降。但我們預計，今年未來幾個月，原材料成本將再次大幅波動。

So therefore, for the gross margin, outlook is a lot of time are based on the battery cost. So therefore, I can only comment that the battery cost will be a kind of fluctuation. For the new product competitiveness, I will ask Li Xiang to comment.

因此，對於毛利率，前景很多時候都是基於電池成本。因此，我只能評論說，電池成本將是一種波動。對於新產品的競爭力，我會請李翔評論。

(Spoken in Chinese) So right now, around L8 I can share a few things. One is that it will be delivered -- released much sooner than many people are expecting and the second thing is that the period from release to delivery will be shorter than L9. And when L8 is available, I think that will be a good time to compare the product competitiveness with newly released competitors and we have full confidence that we will dominate all these products with our L8.

（用中文說）所以現在，在L8左右，我可以分享一些東西。一是它會交付——發布的時間比許多人預期的要快得多，二是從發佈到交付的時間將比 L9 更短。而當 L8 可用時，我認為這將是一個與新發布的競爭對手比較產品競爭力的好時機，我們完全有信心用我們的 L8 主導所有這些產品。

The next question comes from Xu Yingbo from CITICS. Please go ahead.

下一個問題來自中信證券的徐穎波。請繼續。

(Spoken in Chinese). I have two questions. The first question is about the EREV product. What's our mid-term competitiveness strategy for EREV product? And the second question is about money raising, could you please talk a little bit more about ATM and the further capital reserve project? Thank you.

（用中文講）。我有兩個問題。第一個問題是關於 EREV 產品。我們對 EREV 產品的中期競爭力戰略是什麼？第二個問題是關於融資的，請您多談談ATM和進一步的資本儲備項目嗎？謝謝你。

(Spoken in Chinese) So talking about range extended vehicles, if you look over the next five years we still believe that our EV is the best solution for SUVs, period. I'll give you one example, if you look at BYD, they have two main products above RMB200,000, there's the Han sedan and there's the Tang SUV.

（用中文講）所以談到增程式車輛，如果你展望未來五年，我們仍然相信我們的 EV 是 SUV 的最佳解決方案。我舉個例子，你看比亞迪，20萬元以上的主要有兩款，漢轎車和唐SUV。

So in terms of the Han, which is the sedan, the EV sells much better than DM-i, which is the hybrid vehicle, but for Tang the case is exactly the opposite, DM-i sells better than the EV. And the reason for that is when people buy cars you know in the RMB200,000 to RMB300,000 range, when they buy an SUV they have a very clear expectation that they want to go on longer trips, especially post-COVID.

所以對於轎車的漢族來說，EV的銷量比混合動力車的DM-i要好得多，但唐的情況恰恰相反，DM-i的銷量要好於EV。原因是當人們購買你知道的 200,000 到 300,000 人民幣之間的汽車時，當他們購買 SUV 時，他們非常明確地期望他們想要進行更長的旅行，尤其是在 COVID 之後。

So our EV is still the best solution up until today for SUVs that solves range anxiety. So under that consumption, within our EV our biggest goal is to solve the efficiency challenge and if you look at L9, there's many top media that have tested the L9, our energy consumption level's still leading in its class. Even with low SoC the fuel consumption is only around 60% of much smaller internal combustion engine vehicles and is much better than what many claim to the competitors, which are much smaller SUVs.

因此，直到今天，我們的 EV 仍然是解決里程焦慮的 SUV 的最佳解決方案。所以在這樣的消耗下，在我們的EV中，我們最大的目標是解決效率挑戰，如果你看L9，有很多頂級媒體測試過L9，我們的能耗水平仍然是同類產品中的佼佼者。即使 SoC 較低，油耗也僅為小得多的內燃機汽車的 60% 左右，並且比許多人聲稱的競爭對手要好得多，後者是小得多的 SUV。

Because at the end of the day, our EV is an EV, it's not an internal combustion engine adding a battery to it. So that's the key difference between PHEV and our range extended electric vehicles. There shouldn't be any discussion of which one's more advanced or which one's more backward. For the user, range extended vehicle is an EV that happens to have an internal combustion or we call range extender, where PHEV is really more of an internal combustion engine vehicle with a battery.

因為歸根結底，我們的 EV 是 EV，而不是添加電池的內燃機。這就是 PHEV 和我們的增程電動汽車之間的主要區別。不應該討論哪個更先進，哪個更落後。對於用戶來說，增程車是一種恰好有內燃機的電動汽車，或者我們稱之為增程器，而PHEV實際上更像是一輛帶有電池的內燃機汽車。

I'll give you another example. Changan, which is a very you know established company with very capable technical skills and their latest vehicle, SL03, is an REV rather than PHEV. Despite the fact that Changan has all the PHEV technologies in the world, but they still built an REV as their most advanced solution. Because at the end of the day, again our EV is really an electric vehicle.

我再舉一個例子。長安是一家眾所周知的老牌公司，擁有非常強大的技術技能，他們的最新車型 SL03 是一款 REV 而不是 PHEV。儘管長安擁有世界上所有的PHEV技術，但他們仍然將REV作為他們最先進的解決方案。因為歸根結底，我們的 EV 還是真正的電動汽車。

In the second question about the cash flow and ATM offering, I think first, Li Auto has very healthy operating cash flow and free cash flow, which can still fund our business every quarter. In the long run we are very clear we are still at the early stage of this industry in 10 to 15 years. So we still want to use the active market to secure more cash to further fund the Company's development, especially in the R&D and also the new model R&D side.

關於現金流和 ATM 供應的第二個問題，我認為首先，理想汽車擁有非常健康的運營現金流和自由現金流，仍然可以為每個季度的業務提供資金。從長遠來看，我們非常清楚我們在 10 到 15 年內仍處於這個行業的早期階段。所以我們仍然希望利用活躍的市場來獲得更多的現金來進一步資助公司的發展，特別是在研發和新車型研發方面。

For the ATM offering, I think based on this year's market conditions, as I just mentioned, we still want to secure more cash from the equity offering, so we choose the ATM to do this. As most of the ATM are offering, we need to stop before we publish our earnings rate, so hopefully we can finish this ATM offering in the coming months. Thank you.

對於 ATM 發行，我認為基於今年的市場情況，正如我剛才提到的，我們仍然希望從股權發行中獲得更多的現金，所以我們選擇 ATM 來做這件事。由於大多數 ATM 都在提供，我們需要在發布我們的收益率之前停下來，所以希望我們能在未來幾個月內完成這個 ATM 產品。謝謝你。

The next question comes from Jiong Shao from Barclays. Please go ahead.

下一個問題來自巴克萊的邵炯。請繼續。

(Spoken in Chinese). I have two questions. First question is about the -- for the new BEV cars, are those new cars still going to be family-oriented SUVs or something else? The second question is really about the guidance for the second half operating expenses, thank you.

（用中文講）。我有兩個問題。第一個問題是關於——對於新的 BEV 汽車，這些新車仍將是面向家庭的 SUV 還是其他什麼？第二個問題真的是關於下半年運營費用的指導，謝謝。

(Spoken in Chinese). I refer to the answer for the first question, in terms of the body type for our electric vehicle I still want to keep it confidential before it's released, because it's a very unique design.

（用中文講）。我參考第一個問題的答案，關於我們電動車的車身類型，我還是想在它發布之前保密，因為它是一個非常獨特的設計。

Also to add to Li Xiang's answer, we still serve our family customers (inaudible). For the operating expenses, I think we have a very clear roadmap for our product and our goal for this and next year's sales target. So we will keep going with that on the R&D side and also on the network expansion to better serve our family customers. Thank you.

另外補充一下李翔的回答，我們仍然為我們的家庭客戶服務（聽不清）。對於運營費用，我認為我們有一個非常明確的產品路線圖，以及今年和明年的銷售目標。因此，我們將繼續在研發方面以及網絡擴展方面繼續努力，以更好地服務於我們的家庭客戶。謝謝你。

As we are reaching the end of our conference call, I'd like to turn the call back over to the Company for closing remarks. Ms. Janet Chang, please go ahead.

當我們的電話會議即將結束時，我想將電話轉回公司以進行閉幕詞。 Janet Chang 女士，請繼續。

Thank you once again for joining with us today. If you have any further questions, please feel free to contact Li Auto's Investor Relations team. Then that's all for today, thank you.

再次感謝您今天加入我們。如果您還有其他問題，請隨時聯繫理想汽車的投資者關係團隊。那麼今天的內容就到這裡了，謝謝。