理想汽車 (LI) 2022 Q4 法說會逐字稿

Thank you for standing by and welcome to the Li Auto Inc fourth quarter and full year 2022 earnings conference call. All participants are in listen-only mode. There'll be a presentation, followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key, followed by the number one on your telephone keypad.

感謝您的支持，歡迎來到理想汽車公司第四季度和 2022 年全年收益電話會議。所有參與者都處於只聽模式。將進行演示，然後是問答環節。如果您想提問，您需要按星號鍵，然後按電話鍵盤上的數字 1。

I would now like to hand the conference over to Ms. Janet, LI Auto IR Director. Please go ahead.

我現在想把會議交給 LI Auto IR 總監 Janet 女士。請繼續。

Thank you, Operator. Good evening and good morning, everyone. Welcome to Li Auto's fourth quarter and full year 2022 earnings conference call. The Company's financial and operating results were published in the press release earlier today and are posted on the Company's IR website.

謝謝你，運營商。大家晚上好，早上好。歡迎來到理想汽車的第四季度和 2022 年全年收益電話會議。公司的財務和經營業績已在今天早些時候的新聞稿中發布，並發佈在公司的 IR 網站上。

On today's call we have our Founder, Chairman and CEO, Mr. Xiang Li, and our CFO, Mr. Johnny Tie Li; begin with prepared remarks. Our President, Mr. Donghui Ma, and our CTO, Mr. Yan Xie, will join for the Q&A discussions.

今天的電話會議有我們的創始人、董事長兼首席執行官 Xiang Li 先生和我們的 CFO Johnny Tie Li 先生；從準備好的評論開始。我們的總裁馬東輝先生和我們的首席技術官謝彥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. Further information regarding risks and uncertainties is included in certain Company filings 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.

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的風險和不確定性。因此，公司的實際結果可能與今天表達的觀點存在重大差異。有關風險和不確定性的更多信息包含在公司向美國證券交易委員會和香港證券交易所提交的某些文件中。公司不承擔任何更新任何前瞻性陳述的義務，除非適用法律要求。

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 documents on the IR section of our website, which contain a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures.

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 IR 部分的文件，其中包含未經審計的非 GAAP 措施與可比 GAAP 措施的對賬。

Our CFO will start the remarks in Chinese, for the family. There will be English translation follows, after he finish all his remarks. With that, I will now turn the call over to our CEO, Mr. Xiang Li. Please go ahead.

我們的首席財務官將開始用中文為家人致辭。在他完成所有發言後，將有英文翻譯。有了這個，我現在將把電話轉給我們的首席執行官 Xiang Li 先生。請繼續。

Xiang Li: (Interpreted) Hi, everyone, and thank you for joining our call today. 2022 was another year of explosive growth for new energy vehicles in China as more consumers embrace NEVs. According to the China Passenger Car Association, the penetration rate of new energy passenger vehicles reached 31.7% in Q4 2022 compared to 14.8% in 2021 and 29% in Q3 2022.

Xiang Li：（翻譯）大家好，感謝您今天加入我們的電話會議。隨著更多消費者接受新能源汽車，2022 年是中國新能源汽車爆發式增長的又一年。根據中國乘用車協會的數據，2022 年第四季度新能源乘用車滲透率達到 31.7%，而 2021 年和 2022 年第三季度分別為 14.8% 和 29%。

Our business continued to grow rapidly. In less than a year, we launched three new models, L9, L8 and L7, fully covering the family SUV market between RMB300,000 and RMB500,000. These launches further solidified our market leadership. In the meantime, we continue to fortify our foundations across R&D, supply chain and sales and service networks. We have upgraded our overall business processes and org structure to prepare for ourselves in the one to 10 space.

我們的業務繼續快速增長。在不到一年的時間裡，我們推出了L9、L8、L7三款新車型，全面覆蓋30萬-50萬元的家用SUV市場。這些發布進一步鞏固了我們的市場領導地位。與此同時，我們繼續鞏固我們在研發、供應鏈以及銷售和服務網絡方面的基礎。我們已經升級了我們的整體業務流程和組織結構，為自己在 1 到 10 的空間做好準備。

Next, moving on to deliveries and recent updates. In December 2022, we delivered more than 20,000 vehicles, setting another record not only for ourselves but also all emerging automakers in China, putting us in a very good position for 2023.

接下來，繼續交付和最近的更新。 2022 年 12 月，我們交付了 2 萬多輛汽車，不僅為我們自己，也為中國所有新興汽車製造商創造了又一個記錄，使我們在 2023 年處於非常有利的位置。

While Li L9 has been dominating the full-size SUV monthly sales charts in China ever since its release in September, Li L8 continued Li One's sales success, becoming the top seller of all large SUVs in December 2022. We delivered 46,319 new vehicles in Q4 2022 and 2022 annual deliveries reached 133,246 units.

自 9 月發布以來，理想 L9 一直霸占中國全尺寸 SUV 月銷量榜單，而理想 L8 延續理想的銷售成功，成為 2022 年 12 月所有大型 SUV 的暢銷產品。我們在第四季度交付了 46,319 輛新車2022年和2022年全年交付量達到133,246台。

In December 2022, according to the insurance registration data from Chinese Automotive Technology Research Centre, we ranked first in both the SUV and NEV market in the price range of RMB300,000 to RMB500,000, establishing ourselves as one of the go-to brands for all premium SUV shoppers.

2022年12月，根據中國汽車技術研究中心保險登記數據，我們在30萬元至50萬元的SUV和NEV市場均排名第一，成為首選品牌之一適用於所有高級 SUV 購物者。

Furthermore, in the first quarter, a typical off-season for vehicle sales, we maintained strong order intake, showcasing the competitiveness of our product and services. I would like to hereby thank all of our users and their families for their trust and support along the way. Our revenues reached RMB17.65 billion in Q4 and RMB45.29 billion for the full year 2022, up 66.2% and 67.7% year on year respectively.

此外，第一季度是典型的汽車銷售淡季，我們保持了強勁的訂單量，展示了我們產品和服務的競爭力。在此，我要感謝所有用戶和他們的家人一路以來的信任和支持。我們的收入在第四季度達到人民幣 176.5 億元，2022 年全年收入達到人民幣 452.9 億元，同比分別增長 66.2% 和 67.7%。

With our cost management capability and operation efficiency, we maintained a healthy gross margin of 20.2% and free cash flow of RMB3.26 billion in Q4 2022.

憑藉我們的成本管理能力和運營效率，我們在 2022 年第四季度保持了 20.2% 的健康毛利率和人民幣 32.6 億元的自由現金流。

Moving on to our product line-up. On February 8 we officially launched Li L7, our five-seat flagship family SUV, with test drives starting the day after. Li L7 features exceptional second-row space, a comfortable interior, and a long list of standard features. Equipped with our in-house developed all-wheel drive range extension system, the L7 has a CLTC range of 1315 kilometers and zero to 100 kilometers per hour acceleration in 5.3 seconds.

繼續我們的產品系列。 2 月 8 日，我們正式發布了我們的五座旗艦家庭 SUV Li L7，並於次日開始試駕。理想 L7 具有出色的第二排空間、舒適的內飾和一長串標準配置。配備我們內部開發的全輪驅動增程系統，L7 的 CLTC 續航里程為 1315 公里，零至 100 公里/小時的加速時間為 5.3 秒。

L7 is developed with a G rating, the highest possible rating in the [CIC] 25% small overlap crash test for both the driver and passenger side. It also features a constantly evolving smart space entertainment system and our driver assistance system. Li L7 is available in three trim levels, Air, Pro and Max, fully covering the RMB300,000 to RMB400,000 price range.

L7 採用 G 等級開發，這是 [CIC] 駕駛員和乘客側 25% 小重疊碰撞測試中的最高等級。它還具有不斷發展的智能空間娛樂系統和我們的駕駛員輔助系統。立L7提供Air、Pro、Max三個內飾級別，全面覆蓋30萬-40萬元價位區間。

Alongside the L7 release, we also released an Air model to our L8 line-up, which succeeded Li One in the same segment which covers the RMB300,000 to RMB350,000 price range. We will commence deliveries of Li L7 Pro and Max in early March and delivery of Li L7 Air and L8 Air will start in early April this year.

在發布 L7 的同時，我們還在 L8 系列中發布了 Air 型號，它在同一細分市場中取代了 Li One，價格範圍為人民幣 30 萬元至人民幣 35 萬元。我們將於今年 3 月初開始交付 Li L7 Pro 和 Max，Li L7 Air 和 L8 Air 將於今年 4 月初開始交付。

With the introductions of these new models, we have completed the deployment of L7, L8 and L9 for the entire RMB300,000 to RMB500,000 SUV market. The L7 also allowed us to reach a broader audience base. The L7 not only received raving reviews from customer test drivers but also brought in more diverse family users into our stores, which further led to new leads and orders for the L8.

隨著這些新車型的推出，我們完成了L7、L8、L9在整個30萬-50萬元SUV市場的佈局。 L7 還讓我們能夠接觸到更廣泛的受眾群體。 L7不僅獲得了客戶試駕的好評，也為我們的門店帶來了更多不同的家庭用戶，這進一步為L8帶來了新的線索和訂單。

On December 16, the L9 was awarded the Car of the Year in the 10th Xuanyuan Award. It is organized by the Auto Business Review and Austria based EMF Consulting. The Xuanyuan award is widely regarded as the Academy Award in the Chinese auto industry.

12月16日，L9榮獲第十屆軒轅獎年度車型。它由 Auto Business Review 和奧地利的 EMF Consulting 組織。軒轅獎被公認為中國汽車界的奧斯卡金像獎。

With Li L8's and L9's continued strong performance and the addition of the L7 to our family, we will set ourselves a stretch goal of 20% market share in the RMB300,000 to RMB500,000 premium SUV segment this year. Against this backdrop, we expect first quarter deliveries to be in the range of 52,000 to 55,000 units.

隨著理想 L8 和 L9 的持續強勁表現以及 L7 加入我們的家族，我們將在今年為人民幣 30 萬至人民幣 50 萬元的高端 SUV 細分市場設定 20% 的市場份額。在此背景下，我們預計第一季度的交付量將在 52,000 至 55,000 台之間。

Next, on to supply chain. Despite continued supply chain challenges, our deliveries for both L9 and L8 exceeded 10,000 units in their first full month of delivery. This was only possible with the support of our suppliers and this was also a testament to our solid supply chain management capabilities. We remain confident of our parts supply in 2023 as we further improve our planning, risk management and cost management capabilities to cope with potential challenges and risks.

接下來，到供應鏈。儘管供應鏈面臨持續挑戰，但我們 L9 和 L8 的交付量在交付的第一個完整月份就超過了 10,000 台。這只有在我們供應商的支持下才有可能，這也證明了我們紮實的供應鏈管理能力。隨著我們進一步提高規劃、風險管理和成本管理能力以應對潛在的挑戰和風險，我們對 2023 年的零部件供應仍然充滿信心。

We take a modularized approach to supply chain management. While we work closely with our supplier base, we have also strategically identified core areas for in-house development and vertical integration in order to strike a good balance between cost and risk. Over the past three years, we have been deploying a series of manufacturing facilities in the range extender and electric drive units.

我們採用模塊化方法進行供應鏈管理。在與供應商密切合作的同時，我們還戰略性地確定了內部開發和垂直整合的核心領域，以便在成本和風險之間取得良好的平衡。在過去的三年中，我們一直在增程器和電驅動裝置方面部署一系列製造設施。

Next, moving on to the sales network. In Q4 2022, we continued to strengthen our direct sales and services network and to increase our user outreach and brand awareness in order to bolster our commercial capabilities and drive growth. As of January 31, 2023, we operated 296 retail stores, covering 123 cities as well as 320 service centers and Li Auto authorized body shops in 222 cities.

接下來，轉向銷售網絡。 2022 年第四季度，我們繼續加強我們的直銷和服務網絡，並提高我們的用戶覆蓋率和品牌知名度，以增強我們的商業能力並推動增長。截至2023年1月31日，我們經營著296家零售店，覆蓋123個城市，在222個城市擁有320個服務中心和理想汽車授權車身店。

In 2022, while expanding our sales network, we focused on upgrading our existing retail stores to house multiple models in order to reach more different types of family. In the coming quarters, as our brand continues to gain momentum, we will have more multifunction stores in our sales network.

2022年，在擴大銷售網絡的同時，我們著重升級現有零售店以容納多種型號，以覆蓋更多不同類型的家庭。在未來幾個季度，隨著我們品牌的持續增長，我們的銷售網絡中將擁有更多的多功能商店。

After more than three years of operation, the direct sales model has proven to provide better user experience and at a lower cost, which will remain our long-term commitment as the premium car brand. In 2022, our SG&A expenses were already lower than our R&D expenses and we expect to further reduce our selling expenses as a percentage of revenue in 2023.

經過三年多的運營，直銷模式被證明能夠以更低的成本提供更好的用戶體驗，這將是我們作為高端汽車品牌的長期承諾。 2022 年，我們的 SG&A 費用已經低於研發費用，我們預計 2023 年將進一步降低銷售費用佔收入的百分比。

In terms of R&D, it has always been a cornerstone of our value creation process for family users. [Excellent] user research and development capabilities have not only allowed us to stand out in the NEV market but also will ultimately allow us to emerge as a world-class tech company. In 2022, we made great strides in research and development.

在研發方面，它一直是我們為家庭用戶創造價值過程的基石。 [優秀的]用戶研發能力不僅讓我們在新能源汽車市場脫穎而出，也最終讓我們成為世界一流的科技公司。 2022年，我們在研發上取得了長足的進步。

On electric drive unit, our L series vehicles are powered by our inhouse all new range extension 2.0 system with our 1.5 liter four-cylinder turbocharged engine boasting a maximum thermal efficiency of 40.5% and coupled with our proprietary five-in-one drive unit has significantly enhanced the overall noise vibration harshness performance.

在電驅動單元上，我們的 L 系列車輛由我們內部全新的增程 2.0 系統提供動力，我們的 1.5 升四缸渦輪增壓發動機擁有 40.5% 的最大熱效率，再加上我們專有的五合一驅動單元具有顯著增強了整體噪聲振動刺耳性能。

Supported by our proprietary hardware and software, the Li Magic Carpet air suspension provides top notch ride and handling and in particular, our own XCU vehicle controller is capable of handling complex vehicle information at high speeds, enabling [millisecond] grade vehicle control.

在我們專有的硬件和軟件的支持下，Li Magic Carpet 空氣懸架提供一流的乘坐和操控，特別是我們自己的 XCU 車輛控制器能夠在高速下處理複雜的車輛信息，實現 [毫秒] 級車輛控制。

Our smart space continues to evolve. Li Xiang Tong Xue, for instance, has evolved with a new generation device-cloud integrator architecture and has been rolled out to all of our L series models. Featuring our in-house inference engine for in-car scenarios, LisaRT, it provides solid foundation for an in-car deployment of more powerful and complex algorithms.

我們的智能空間不斷發展。例如，勵享童雪已經發展了新一代端雲集成器架構，並已推廣到我們所有的 L 系列機型。以我們針對車內場景的內部推理引擎 LisaRT 為特色，它為車內部署更強大和復雜的算法提供了堅實的基礎。

Moreover, we have remarkable progress in the voice and vision-based interaction algorithms. On the speech side, with our innovative MIMO-NET algorithm that can accurately isolate different human voices in multiple zones. With our voice recognition algorithm, MSE-NET, Li Xiang Tong Xue's activation and recognition accuracy both reached 98% in real-world testing. These rates remain at over 90% in various demanding scenarios, including high noise, low voices and children's voices.

此外，我們在基於語音和視覺的交互算法方面取得了顯著進步。在語音方面，通過我們創新的 MIMO-NET 算法，可以在多個區域準確隔離不同的人聲。使用我們的語音識別算法MSE-NET，李想童雪的激活和識別準確率在實際測試中均達到98%。在各種苛刻場景下，包括高噪音、低聲音和兒童聲音，這些比率保持在 90% 以上。

On the vision side, our MVS-NET algorithm can accurately recognize gestures of all occupants. Combined with innovative [unclear] by gesture technology, it makes interaction through gestures easier and more natural, allowing the whole family to enjoy the superpower of making contact and taking control over the air.

在視覺方面，我們的MVS-NET算法可以準確識別所有乘員的手勢。結合創新的[不清楚]手勢技術，讓手勢交互更簡單、更自然，讓全家人享受觸手可及、掌控空氣的超能力。

In terms of autonomous driving, we adopted the fusion BEV algorithm framework, jointly proposed by Tsinghua University, MIT and us, which can be flexibly deployed with Li AD Max and AD Pro's different hardware configurations. Our in-house highway NOA prediction algorithm enables organic automated lane change and a smooth acceleration experience.

在自動駕駛方面，我們採用了由清華大學、麻省理工學院和我們聯合提出的融合BEV算法框架，可以靈活部署Li AD Max和AD Pro的不同硬件配置。我們的內部高速公路 NOA 預測算法可實現有機的自動變道和平穩的加速體驗。

As of now, over 220,000 family users have used our highway NOA features covering 100 million kilometers of distance. During the 2023 Chinese New Year holiday alone, our highway NOA mileage of all models reached almost 8 million kilometers. This year we will further expand our NOA features into urban driving scenarios with beta testing for early bird users planned on Li AD Max in the first quarter of this year.

截至目前，已有超過22萬家庭用戶使用了我們的高速公路NOA功能，覆蓋了1億公里的距離。僅2023年春節假期，我們全系車型的高速公路NOA里程就達到了近800萬公里。今年，我們將進一步將 NOA 功能擴展到城市駕駛場景，計劃於今年第一季度在 Li AD Max 上為早鳥用戶進行 beta 測試。

In addition, we created the industry's first AEB function with LiDAR applications on Li AD Max and extended the LiDAR algorithms' safety scenarios from major traffic participants such as vehicles, cyclists and pedestrians, to cover irregular scenarios, including special vehicles as well as night driving scenes.

此外，我們在Li AD Max上首創了LiDAR應用的AEB功能，並將LiDAR算法的安全場景從車輛、騎行者、行人等主要交通參與者擴展到包括特殊車輛和夜間駕駛在內的不規則場景。場景。

Going forward, we will continue to focus on developing our core EREV and BEV technologies in-house and further elevating our product level intelligence. To that end, we will consistently direct our R&D resources across products, platforms and systems to fuel our long-term growth.

展望未來，我們將繼續專注於在內部開發我們的核心 EREV 和 BEV 技術，並進一步提升我們的產品水平智能。為此，我們將始終如一地將我們的研發資源用於產品、平台和系統，以推動我們的長期增長。

In summary, we view our long-term success as a function of our continued investment in R&D and our business capabilities, which will support the creation of more hit models, enhance our brand value, and serve as critical pillars of our business flywheel. 2023 will be another year of rapid development of the NEV industry and for Li Auto in particular.

總之，我們認為我們的長期成功取決於我們對研發和業務能力的持續投資，這將支持創造更多的熱門車型，提升我們的品牌價值，並成為我們業務飛輪的重要支柱。 2023年，又是新能源產業高速發展的一年，尤其是理想汽車。

We have full confidence that we will be able to build an increasingly innovative and diverse model line-up and deliver outstanding products and services that will continue to exceed our users' needs. With that, I will turn over the call to our CFO, Johnny, for a deep dive into our financial performance.

我們充滿信心，我們將能夠建立一個日益創新和多樣化的模型陣容，並提供將繼續超越用戶需求的卓越產品和服務。有了這個，我將把電話轉給我們的首席財務官約翰尼，讓他深入了解我們的財務業績。

Thank you, [Xiang]. Hello, everyone. I will now review some of our 2022 fourth quarter financials. To leave more time for the Q&A session, I will address our financial highlights here and I encourage you to refer to our earnings press release for more details.

謝謝你，[Xiang]。大家好。我現在將回顧我們 2022 年第四季度的一些財務狀況。為了給問答環節留出更多時間，我將在這裡介紹我們的財務重點，我鼓勵您參閱我們的收益新聞稿以了解更多詳細信息。

Our total revenues in the fourth quarter of 2022 were RMB17.65 billion, or US$2.56 billion, representing an increase of 66.2% year over year and an increase of 88.9% quarter over quarter. This included RMB17.27 billion or US$2.5 billion from vehicle sales which was up 66.4% year over year and 90.9% quarter over quarter.

我們在 2022 年第四季度的總收入為人民幣 176.5 億元，即 25.6 億美元，同比增長 66.2%，環比增長 88.9%。其中包括汽車銷售額 172.7 億元人民幣或 25 億美元，同比增長 66.4%，環比增長 90.9%。

The increase was mainly attributable to the increase in vehicle deliveries as well as higher average selling price due to our delivery of Li L9 starting in late August and Li L8 starting in November. Revenues from other sales and [services] were RMB381.5 million or US$55.3 million in the fourth quarter, representing an increase of 55.9% year over year and an increase of 28.7% quarter over quarter. The increase was mainly due to the increased sales of accessories and services in line with higher accumulated vehicle sales.

增加的主要原因是車輛交付量增加，以及由於我們從 8 月下旬開始交付 Li L9 和 11 月開始交付 Li L8，導致平均售價更高。第四季度來自其他銷售和[服務]的收入為人民幣 3.815 億元或 5530 萬美元，同比增長 55.9%，環比增長 28.7%。增加的主要原因是隨著累計汽車銷量的增加，配件和服務的銷售額增加。

Our cost of sales in the fourth quarter was RMB14.08 billion or US$2.04 billion,

我們第四季度的銷售成本為人民幣 140.8 億元或 20.4 億美元，

representing an increase of 70.9% year over year and an increase of 72.6% quarter over quarter. Gross profit in the fourth quarter of 2022 was RMB3.57 billion or US$517.1 million, growing 49.8% compared with the fourth quarter of last year and 201.7% compared with the third quarter of 2022.

同比增長 70.9%，環比增長 72.6%。 2022年第四季度毛利為人民幣35.7億元或5.171億美元，比去年第四季度增長49.8%，比2022年第三季度增長201.7%。

Vehicle margin in the fourth quarter of 2022 was 20% compared with 22.3% in the fourth quarter of 2021 and 12% in the third quarter of 2022. The decrease in vehicle margin over the fourth quarter of 2021 was mainly due to the different product mix between the two quarters. The increase in vehicle margin over the third quarter was mainly attributable to the losses on purchase commitments related to Li One in the third quarter of 2022.

2022 年第四季度汽車利潤率為 20%，而 2021 年第四季度為 22.3%，2022 年第三季度為 12%。汽車利潤率較 2021 年第四季度下降主要是由於產品組合不同兩個季度之間。整車毛利較第三季度增加主要是由於2022年第三季度與理想一相關的採購承諾虧損。

Gross margin in the fourth quarter of 2022 was 20.2% compared with 22.4% in the fourth quarter of 2021 and 12.7% in the third quarter of 2022.

2022 年第四季度的毛利率為 20.2%，而 2021 年第四季度為 22.4%，2022 年第三季度為 12.7%。

Operating expenses in the fourth quarter of 2022 were RMB3.7 billion or US$536.4 million, representing an increase of 47.1% year over year and an increase of 11.7% quarter over quarter.

2022年第四季度營業費用為人民幣37億元或5.364億美元，同比增長47.1%，環比增長11.7%。

R&D expenses in the fourth quarter of 2022 were RMB2.07 billion or US$300.1 million, up 68.3% year over year and 14.7% quarter over quarter. The increase was primarily driven by increased expenses to support our expanding product portfolios, as well as increased employee compensation as a result of our growing number of staff.

2022 年第四季度研發費用為 20.7 億元人民幣或 3.001 億美元，同比增長 68.3%，環比增長 14.7%。增加的主要原因是支持我們不斷擴大的產品組合的費用增加，以及由於我們的員工人數增加而導致的員工薪酬增加。

Our selling, general and administrative expenses in the fourth quarter of 2022 were RMB1.63 billion or US$236.3 million, representing an increase of 44.8% year over year and an increase of 8.1% quarter over quarter. The increase 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 our sales and servicing network.

我們在 2022 年第四季度的銷售、一般和管理費用為人民幣 16.3 億元或 2.363 億美元，同比增長 44.8%，環比增長 8.1%。這一增長主要是由於我們的員工人數增加導致員工薪酬增加，以及與我們的銷售和服務網絡擴展相關的租金費用增加。

Loss from operations in the fourth quarter of 2022 was RMB133.6 million or $US19.4 million compared with RMB24.1 million income from operations in the fourth quarter of 2021 and representing a decrease of 93.7% from RMB2.13 billion loss from operations in the third quarter of 2022.

2022 年第四季度的運營虧損為人民幣 1.336 億元或 1,940 萬美元，而 2021 年第四季度的運營收入為人民幣 2,410 萬元，較運營虧損人民幣 21.3 億元下降了 93.7%在 2022 年第三季度。

Net income in the fourth quarter of 2022 was RMB265.3 million or US$38.5 million, representing a decrease of 10.2% from RMB295.5 million net income for the same period in 2021, and compared with RMB1.65 billion net loss in the third quarter of 2022.

2022年第四季度淨利潤為人民幣2.653億元或3850萬美元，較2021年同期淨利潤人民幣2.955億元下降10.2%，第三季度淨虧損人民幣16.5億元2022 年季度。

Turning to our balance sheet and cash flow, our balance of cash and cash equivalents, restricted cash, time deposits and short-term investments was RMB58.45 billion or US$8.37 billion as of December 31, 2022.

轉向我們的資產負債表和現金流量，截至 2022 年 12 月 31 日，我們的現金及現金等價物、受限制現金、定期存款和短期投資餘額為 584.5 億元人民幣或 83.7 億美元。

Net cash provided by operating activities in the fourth quarter of 2022 was RMB4.93 billion or $714.1 million. Free cash flow was RMB3.26 billion or US$472.3 million in the fourth quarter of 2022.

2022 年第四季度經營活動提供的現金淨額為人民幣 49.3 億元或 7.141 億美元。 2022 年第四季度的自由現金流為 32.6 億元人民幣或 4.723 億美元。

As of December 31, 2022, we had a total of 19,396 employees. For more of our 2022 full-year financials, please refer to our earnings press release for more details.

截至 2022 年 12 月 31 日，我們共有 19,396 名員工。有關我們 2022 年全年財務的更多信息，請參閱我們的收益新聞稿以了解更多詳細信息。

Now for our business outlook. For the first quarter of 2023, the Company expects the deliveries to be between 52,000 and 55,000 vehicles, representing an increase of 64% to 73.4% from the first quarter of 2022.

現在是我們的業務前景。公司預計 2023 年第一季度的交付量將在 52,000 至 55,000 輛之間，較 2022 年第一季度增長 64% 至 73.4%。

The Company also expects the first quarter total revenues to be between RMB17.45 billion and RMB18.45 billion or US$2.53 billion and US$2.68 billion, representing an increase of 82.5% to 93% from the first quarter of 2022.

公司還預計第一季度總收入將在 174.5 億元人民幣至 184.5 億元人民幣或 25.3 億美元至 26.8 億美元之間，較 2022 年第一季度增長 82.5% 至 93%。

This business outlook assumes supportive macroeconomic conditions, no significant disruption in the supply chain, and reflects the Company's current and preliminary view on its business situation and market condition, which is subject to change.

該業務展望假設宏觀經濟條件有利，供應鏈沒有重大中斷，反映了公司對其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 hand the call over to the operator to start our Q&A session.

我現在將把電話轉給接線員，開始我們的問答環節。

(Operator Instructions). The first question today comes from Tim Hsiao with Morgan Stanley. Please go ahead.

（操作員說明）。今天的第一個問題來自摩根士丹利的 Tim Hsiao。請繼續。

(Spoken in Chinese) My first question is about volume outlook. We notice that previously it has been shared that monthly deliveries could at least reach 25,000 after the delivery of L7 started, with a further [incline] to 30,000 after the Air versions of L7/8 are available. I wanted to double confirm how we came up with such a strong target. Are they based on the pace of the new order intake order backlog, or our assessment of total addressable market of 5-seater SUV?

(用中文發言) 我的第一個問題是關於成交量的前景。我們注意到，此前有消息稱，L7開始交付後，月出貨量至少可以達到25000台，L7/8 Air版本推出後，進一步[傾斜]至30000台。我想再次確認我們是如何提出如此強大的目標的。它們是基於新訂單接收訂單積壓的速度，還是我們對 5 座 SUV 總潛在市場的評估？

How fast could Li Auto's monthly deliveries reach and stabilize in such levels? More importantly, could the supply chain coordinately ramp up their output at such a rapid pace? (Spoken in Chinese)

理想汽車的月交付量能以多快的速度達到並穩定在這樣的水平？更重要的是，供應鏈能否以如此快的速度協調提高產量？ （中文口語）

(Interpreted) 25,000 to 30,000 orders is our internal goal, and we expect to reach this level in Q2. April is the first full month where we delivered L7 Pro and Max, and May will be the first month we deliver the Air version of L7 and L8.

（解讀）25000到30000單是我們內部的目標，我們預計Q2能達到這個水平。 4 月是我們交付 L7 Pro 和 Max 的第一個完整月份，5 月將是我們交付 L7 和 L8 Air 版本的第一個月份。

Second question about ramp-up, admittedly we experienced some issues in the second half of 2022 with our deliveries. We attribute it to two things. One is because we had to set a delivery goal because we were seeing really good order intake, so that placed a lot of pressure on the supply chain. The second cause was we were switching from a single model to multiple models, which again placed a lot of pressure on our sales and service networks.

關於提升的第二個問題，誠然，我們在 2022 年下半年的交付中遇到了一些問題。我們將其歸因於兩件事。一是因為我們看到訂單量非常好，所以我們必須設定交付目標，這給供應鏈帶來了很大壓力。第二個原因是我們從單一模型轉向多個模型，這再次給我們的銷售和服務網絡帶來了很大壓力。

Across Q4 and Q1 of this year, we have been going through a long process of upgrading our sales and service and manufacturing systems so that now we have a very robust system all the way from planning to delivery, to manufacturing and sales, so that we can handle the stress that comes in with our strong order intake.

在今年第四季度和第一季度，我們經歷了一個漫長的過程來升級我們的銷售和服務以及製造系統，因此現在我們擁有一個非常強大的系統，從計劃到交付，再到製造和銷售，這樣我們可以應對我們大量訂單帶來的壓力。

That really helps us to make three things a lot better. The first one is resource allocation. We can really allocate the best resource to where it's most needed. The second one is our employees will feel more fulfilled as they achieve these goals. Third is that it also [applies] suppliers to reach higher efficiency on their side.

這真的幫助我們把三件事做得更好。第一個是資源分配。我們真的可以將最好的資源分配到最需要的地方。第二個是我們的員工在實現這些目標時會感到更有成就感。第三是它也[適用於]供應商，以達到更高的效率。

(Spoken in Chinese) My second question is about battery procurement cost and the potential impact to the margin[with the strong likelihood that battery prices will continue the downtrend this year. Previously, local media also reported (inaudible) and likely others are rallying to offer some aggressive pricing in exchange for long term contracts from Li Auto and other top (inaudible) makers. Could the management team comment on potential collaboration with battery makers? How should we think about the contribution to Li Auto's vehicle margin improvement in the following quarters in terms of scale and timing versus (inaudible)?

（用中文發言）我的第二個問題是關於電池採購成本和對利潤率的潛在影響[今年電池價格很可能會繼續下降趨勢。此前，當地媒體也報導過（聽不清），其他人可能會聯合起來提供一些激進的定價，以換取理想汽車和其他頂級（聽不清）製造商的長期合同。管理團隊能否評論與電池製造商的潛在合作？我們應該如何考慮在規模和時間方面與（聽不清）相比，理想汽車在接下來幾個季度的汽車利潤率提高的貢獻？

(Interpreted) In terms of battery pricing, there are many factors at play including the Li [mines] and battery pricing mechanisms, but in general our belief is that as battery cost continues to approach a more reasonable level, we think it is good for the industry not only for us as OEMs but also for suppliers and battery manufacturers.

(解讀)在電池定價方面，有很多因素在起作用，包括鋰 [礦] 和電池定價機制，但總的來說，我們認為隨著電池成本繼續接近更合理的水平，我們認為這對這個行業不僅對我們作為原始設備製造商，而且對供應商和電池製造商也是如此。

As we expand to more models and as our sales continue to ramp up, we believe battery is a very strategic asset, and we will continue to commit to a multi-supplier strategy for two reasons. One is not only for the stability of our supply chain but also to meet the time requirements for developing multiple models at the same time.

隨著我們擴展到更多型號以及我們的銷售額繼續增加，我們相信電池是一項非常具有戰略意義的資產，我們將繼續致力於多供應商戰略，原因有二。一是不僅是為了我們供應鏈的穩定性，也是為了滿足同時開發多款機型的時間要求。

In the long term, we believe that battery prices will continue to move toward a more reasonable level. As you can see in the past few days, the price of lithium carbonate has already reached about RMB400,000 per ton and we believe the long-term trend is still for the price to go down. We'll continue to work with suppliers to negotiate a good term, but there's not much detail I could share at this point.

從長遠來看，我們認為電池價格將繼續朝著更合理的水平發展。大家可以看到，這幾天碳酸鋰的價格已經達到了40萬元/噸左右，我們認為長期趨勢還是向下。我們將繼續與供應商合作，商定一個好的條款，但目前我無法分享太多細節。

(Spoken in Chinese). Thank you very much for the detailed update. Thank you.

（用中文講）。非常感謝您的詳細更新。謝謝。

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

下一個問題來自瑞銀集團的 Paul Gong。請繼續。

(Spoken in Chinese). My first question is regarding the gross margin. I think for this quarter the vehicle gross margin has been 20.0%, which is about 1 percentage point lower than second quarter and 2 percentage points lower than first quarter.

（用中文講）。我的第一個問題是關於毛利率。我認為本季度汽車毛利率為20.0%，比二季度低1個百分點左右，比一季度低2個百分點。

I think just now Mr. Li has mentioned it was due to the product mix that changed, but my understanding is L9 contributed about 60% of the volume for this quarter, which should be positive for the margin. Is that due to the initial ramping up stage, or is there any other reason you can share? This is my first question.

我想剛才李先生提到這是由於產品組合發生了變化，但我的理解是 L9 本季度貢獻了大約 60% 的銷量，這對利潤率應該是積極的。這是由於最初的升級階段，還是有任何其他原因可以分享？這是我的第一個問題。

Thank you, Paul, this is Johnny from [accounting]. First, gross margin is healthy and consistent with our guidance and starting from the fourth quarter, our revenue and gross margin gross profit is a mix of different product offerings. The majority of this volume comes from the L9 and L8 and both products are under the ramping up period.

謝謝你，保羅，我是[會計]的約翰尼。首先，毛利率健康且符合我們的指引，從第四季度開始，我們的收入和毛利率毛利率是不同產品組合的組合。這一數量的大部分來自 L9 和 L8，這兩種產品都處於升級階段。

As you know, our supply chain needs to ramp up for some period and to release the gross margin (inaudible) in coming quarters. Our L-series platform overall across margins is 25% with material delivery in the future [monthly delivery]. Thank you.

如您所知，我們的供應鏈需要在一段時間內加速增長，並在未來幾個季度釋放毛利率（聽不清）。我們的 L 系列平台總體跨利潤率為 25%，未來有材料交付[每月交付]。謝謝。

(Spoken in Chinese). My second question is regarding to your upcoming pure electric perhaps [on NPV]. I understand the selling point might be fast charging, but we also see some competitors' and some peers' fast charging BEV models recently launched didn't really match the high expectation. So how should we define our products by maintaining the competitiveness, while trying to achieve certain margins that is hopefully comparable to our existing EV products?

（用中文講）。我的第二個問題是關於您即將推出的純電動汽車 [on NPV]。我理解賣點可能是快速充電，但我們也看到一些競爭對手和一些同行最近推出的快速充電 BEV 車型並沒有真正達到很高的期望。那麼，我們應該如何通過保持競爭力來定義我們的產品，同時努力實現有望與我們現有 EV 產品相媲美的某些利潤率呢？

(Interpreted). I'll answer this question on three levels. I'll start off with why we decided to build our EVs in the first place. It was really two things, right? One is because battery costs were very high and second was charging was difficult at the time for electric vehicles. It was not only difficult to find charging stations, but also very slow to charge.

（解釋）。我將從三個層面回答這個問題。首先，我將從我們決定製造電動汽車的原因開始。這真的是兩件事，對吧？一是因為電池成本非常高，二是當時電動汽車充電困難。不僅充電站難找，而且充電速度也很慢。

So moving over to EVs, we also intend to solve these three issues. The first one is about charging. With our EVs, our strategy has been to use gas on highways and use electricity in the local environment. So EV we saw the same issue by charging rapidly, charging 400 kilometers of range in 10 minutes, which is very comparable to gas cars.

所以轉向電動汽車，我們也打算解決這三個問題。第一個是關於充電。對於我們的電動汽車，我們的戰略是在高速公路上使用天然氣，在當地環境中使用電力。所以 EV 我們通過快速充電看到了同樣的問題，在 10 分鐘內充電 400 公里的範圍，這與汽油車非常相似。

But that's not the complete picture, so it's like when we had 4G mobile phones, but if we only have 2G networks it still wouldn't work. So another piece of the puzzle is infrastructure. So with (inaudible) charging capabilities and infrastructure, we are able to provide a level of charging experience comparable to our EVs or fast vehicles.

但這還不是全部，就像我們有了4G手機，但如果只有2G網絡，還是不行。所以另一個難題是基礎設施。因此，憑藉（聽不清）充電能力和基礎設施，我們能夠提供與我們的電動汽車或快速車輛相媲美的充電體驗水平。

The second one is cost. As you can see, we've invested a lot on our 800-volt high voltage architecture as well as our own in-house silicon carbide factory and many of these innovations combined allow us to significantly increase the efficiency of our EV architecture compared to 400-volt IGBT systems. We observed almost 15% of energy efficiency compared to similar models on the 400-volt architecture and that saves a significant amount of battery and therefore cost of the vehicle.

第二個是成本。如您所見，我們在 800 伏高壓架構以及我們自己的內部碳化矽工廠上投入了大量資金，其中許多創新相結合，使我們能夠顯著提高 EV 架構的效率（與 400 伏相比） -volt IGBT 系統。我們觀察到與 400 伏架構的類似模型相比，能源效率提高了近 15%，這節省了大量電池，因此節省了車輛成本。

The third level I want to talk about is product. I can assure you that on our EV product lineup we'll be able to provide a similar level of product and experience differentiation that can significantly exceed our user expectations, even more so than our EV models.

第三個層次我想說的是產品。我可以向您保證，在我們的 EV 產品系列中，我們將能夠提供類似水平的產品和體驗差異化，這可以大大超出我們的用戶期望，甚至超過我們的 EV 模型。

(Spoken in Chinese). Thank you so much.

（用中文講）。太感謝了。

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

下一個問題來自瑞信的王斌。請繼續。

(Spoken in Chinese). I've actually got two questions. Number 1 is about L7 order, for your guidance you say that (inaudible) 25,000 units sales, but after that you've got 30,000 units, which means will be (inaudible) L7 Air. So can [I think] the overall L7 be bigger than the total order flow for L8 and L9? That's the first question about the order flow for L7.

（用中文講）。我實際上有兩個問題。 1 號是關於 L7 訂單，您的指導是（聽不清）25,000 台銷售，但之後您有 30,000 台，這意味著將是（聽不清）L7 Air。那麼 [我認為] 整體 L7 是否可以大於 L8 和 L9 的總訂單流量？這是關於 L7 訂單流程的第一個問題。

The second question about the margin, I actually tried to quantify the margin impact in the number 4 quarter because we see a few factors. Number 1 is that - and this impact actually increasing quite big in number 4 quarter compared with number 3, increasing from 400,000 units (inaudible) to more than 500,000 in the (inaudible). Is that going to be the number 1 reason?

關於利潤率的第二個問題，我實際上試圖量化第四季度的利潤率影響，因為我們看到了一些因素。第 1 個是 - 與第 3 個季度相比，這種影響實際上在第 4 個季度增加了很多，從 400,000 個單位（聽不清）增加到（聽不清）的 500,000 個以上。這將是第一個原因嗎？

Number 2 is about the promotion for the Li ONE. We saw that in the last quarter last year, each month we sell around 1,000 units of Li ONE. So does that create an inventory, second reason why the margins did not increase?

2號是關於Li ONE的宣傳。我們看到，在去年最後一個季度，我們每個月都能賣出大約 1000 台 Li ONE。那麼這是否會產生庫存，這是利潤率沒有增加的第二個原因？

And third about component supply, normally for carmakers in the first months (inaudible) you actually have the higher costs after (inaudible) you have lower cost. So that's the reason I'm trying to understand what's the margin trend in the first quarter of next year, 2023, thank you.

第三關於零部件供應，通常對於汽車製造商來說，在頭幾個月（聽不清）你實際上有更高的成本（聽不清）你有較低的成本。所以這就是我試圖了解明年第一季度（2023 年）利潤率趨勢的原因，謝謝。

Okay (inaudible) I will both your questions. First, I think for the new L7, as (inaudible) we still need some time to ramp up for the Q1 guidance will include several thousand L7. Most of the deliverables will be L9, L8 and as we mentioned, April or May, May will be the whole month we deliver our series, including Air. So we have some Air orders but as you know, the Air (inaudible) test drive hasn't start so a lot of the customers need to test drive so the mix (inaudible) you have seen from the (inaudible).

好的（聽不清）我會回答你的兩個問題。首先，我認為對於新的 L7，因為（聽不清）我們仍然需要一些時間來提高 Q1 指導將包括數千個 L7。大多數可交付成果將是 L9、L8，正如我們提到的，4 月或 5 月，5 月將是我們交付系列的整個月份，包括 Air。所以我們有一些空氣訂單，但正如你所知，空氣（聽不清）試駕尚未開始，所以很多客戶需要試駕，所以你從（聽不清）看到的混合（聽不清）。

For the second question I think all the factors you mentioned were the factors that makes our 20% gross margin in the fourth quarter, and all this as a whole had the impact of 2% of the margin. So I think I don't want to break into too much detail and for this year, considering the market conditions, we still want to keep our guidance to be above 20%.

對於第二個問題，我認為你提到的所有因素都是使我們第四季度毛利率達到 20% 的因素，所有這些總體上影響了 2% 的利潤率。所以我想我不想透露太多細節，對於今年，考慮到市場狀況，我們仍然希望將我們的指導保持在 20% 以上。

Thank you so much.

太感謝了。

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

下一個問題來自美國銀行的 Ming Hsun Lee。請繼續。

(Spoken in Chinese). My first question is regarding the license plate policy change in Shanghai. So what is the sales contribution from Shanghai City in 2022 and 2023? Among that, how many percentage of the customers this year they use their current license plate to buy our product?

（用中文講）。我的第一個問題是關於上海車牌政策的變化。那麼2022年和2023年上海市的銷售額貢獻是多少？其中，今年有多少客戶使用他們當前的車牌購買我們的產品？

(Spoken in Chinese). My second question is regarding your product pipeline. So first question, will you launch the BEV this year for the MPV and also for your new product pipeline L6 is launching next year? Also besides L6, next year for BEV product, will you start to launch more other products, for example, such like SUV or sedan?

（用中文講）。我的第二個問題是關於你們的產品線。那麼第一個問題，你今年會為 MPV 推出 BEV 嗎？還有你的新產品線 L6 將於明年推出嗎？另外除了L6之外，明年BEV產品，你們會不會開始推出更多其他產品，比如SUV或者轎車？

(Interpreted) In terms of orders, in Shanghai the general order flow was not very good and that was understandable because most of the demand was released in November and December last year. But we haven't seen a very significant recovery since February and over the long term we look at this issue from a market share standpoint.

(解讀) 訂單方面，上海總體訂單流不是很好，這是可以理解的，因為大部分需求是在去年11月和12月釋放的。但自 2 月以來我們還沒有看到非常顯著的複蘇，從長遠來看，我們從市場份額的角度來看這個問題。

We believe that steady state of market share in Shanghai will be comparable to that in Beijing, because moving forward in either of these markets our EV purchase will be incentivized by free license plates. So we think Shanghai will eventually move towards a market share similar to that in Beijing.

我們相信上海市場份額的穩定狀態將與北京相當，因為在這兩個市場中，我們的電動汽車購買將受到免費牌照的激勵。因此，我們認為上海最終的市場份額將接近北京。

First of all, in terms of flagship EV product, the timing of the product release is highly tied to the cycle of technology innovations. In particular in this case, at the end of this year there will be a big milestone where Qualcomm will be releasing their 8295 chips.

首先，對於旗艦EV產品而言，產品發布的時機與技術創新周期高度相關。特別是在這種情況下，今年年底將有一個重要的里程碑，高通將發布他們的 8295 芯片。

So the delay in our EV product is highly tied to this, because we want to meet the development cycle so that we can release our flagship vehicle with the new chip as early as possible. We cannot have our flagship model only carry the last generation chip when it comes to market.

所以我們 EV 產品的延遲與此密切相關，因為我們希望滿足開發週期，以便我們可以儘早發布配備新芯片的旗艦車型。我們不能讓我們的旗艦機型在上市時只搭載上一代芯片。

The second one is terms of the EV lineup, the EV lineup will basically mirror something similar to what we have with the L-series which fully covers the RMB200,000 to RMB500,000 price range.

第二個是電動車陣容方面，電動車陣容基本上與我們的L系列相似，完全覆蓋20萬至50萬元的價格區間。

(Spoken in Chinese) Thank you.

（用中文）謝謝。

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

下一個問題來自中信證券的徐英波。請繼續。

(Spoken in Chinese) My first question comes from -- it is just now we mentioned that we aim to get 20% market share on the SUV market, with a price from between RMB300,000 to RMB500,000. So, my question is that how we have confidence in this market share, and could you please talk a little bit more on how we consider that the market of SUV between the price RMB200,000 to RMB300,000? This is my first question. Thank you.

(中文口語) 我的第一個問題來自——剛才我們提到我們的目標是在SUV市場上獲得20%的市場份額，價格在30萬到50萬之間。那麼，我的問題是，我們如何對這個市場份額有信心，請您多談談我們如何看待20萬到30萬之間的SUV市場？這是我的第一個問題。謝謝。

(Interpreted) First one, about the RMB300,000, RMB500,000 price range, we were at a market share of 5.5% last year, as you mentioned, and this year we expect the whole market side to be between 1.4 million to 1.5 million units, and our goal is to double the share, because we believe at 20% share, is where we could reasonably steadily stay as the brand champion, and that's how our goal came about.

（解讀）第一個，大概30萬，50萬的價格區間，你說的，我們去年的市場份額是5.5%，今年我們預計整個市場端在140萬到1.5之間百萬單位，我們的目標是將份額翻倍，因為我們相信 20% 的份額是我們可以合理穩定地保持品牌冠軍地位的地方，這就是我們目標的實現方式。

The RMB200,000 to RMB300,000 market is a lot more competitive, so, our plan is to approach the market at a second stage, where we have much greater economy of scale and a stronger core competency.

20萬元到30萬元的市場競爭要激烈得多，所以我們計劃在第二階段進入這個市場，我們有更大的規模經濟和更強的核心競爭力。

(Spoken in Chinese) My second question is that considering the pretrain transformer the air technology has influenced, in different sectors, in different industries, so, my question is how will that impact auto industry we are working now? And in future, how can that influence? And for the consumers, for the users, what kind of change we can experience, in short? Thank you.

（用中文說）我的第二個問題是，考慮到空氣技術對不同部門、不同行業的影響，我的問題是這將如何影響我們現在正在工作的汽車行業？在未來，這會產生怎樣的影響？而對於消費者，對於用戶，我們能體驗到什麼樣的變化，簡而言之？謝謝。

Hello, Yingbo. This is Yan. Let me take your question. We have invested in the development of AI-based cognitive technologies for quite a long time, especially in the compositional AI and gesture combination. We think they are very important in smart space, and we see our customers very good user experience. So, current - recently, we are paying close attention to ChatGPT, and we think its technology, the technology behind, like large language models, and [per train] models are very similar to what we are doing right now in smart space.

你好，英博。這是顏。讓我來回答你的問題。我們在基於人工智能的認知技術的開發上投入了相當長的時間，尤其是在組合人工智能和手勢組合方面。我們認為它們在智能空間中非常重要，我們看到我們的客戶非常好的用戶體驗。因此，當前 - 最近，我們正在密切關注 ChatGPT，我們認為它的技術，背後的技術，如大型語言模型和 [per train] 模型與我們目前在智能空間中所做的非常相似。

We also believe that these technologies have good potential in visual tasks, like self-driving, and the related study and the development is still in progress.

我們也相信這些技術在視覺任務方面有很好的潛力，比如自動駕駛，相關的研究和開發仍在進行中。

Xiexie.

謝謝。

The next question comes from Yuqian Ding with HSBC. Please go ahead.

下一個問題來自匯豐銀行的Yuqian Ding。請繼續。

(Spoken in Chinese) I only got one question is that within our current three SUV model portfolio, how do we evaluate the potential cannibalization, given by different version of different models, the pricing points overlap? Should these three models combined sell between per month 20k to 30k, what's roughly the margin rate we will expect, given these three SUV models have the shared cost space?

（中文口語） 我只有一個問題，在我們目前的三款SUV車型組合中，我們如何評估潛在的蠶食，不同車型不同版本，定價點重疊？如果這三款車型的月銷量合計在 20,000 到 30,000 輛之間，鑑於這三款 SUV 車型具有共享的成本空間，我們預計的利潤率大致是多少？

(Interpreted) In fact, in practice we've seen very clear userbase differentiation between L7 and L8. There hasn't been as much overlap as we had been expecting. As we've seen in showrooms, the L7 is really attracting families with the two to three members, one kid, and L8 is attracting either families with two kids or those that are three generations under the same roof.

（解釋）事實上，在實踐中，我們已經看到 L7 和 L8 之間非常明顯的用戶群差異。沒有我們預期的那麼多重疊。正如我們在展廳中看到的那樣，L7 確實吸引了擁有兩到三個成員和一個孩子的家庭，而 L8 則吸引了擁有兩個孩子的家庭或同一屋簷下的三代人。

Another good thing is that the interest in L7 has also helped us view orders for L8. So with L8, L7 and L9 we really formed not just a product line but in fact, a product network. We want -- any family who is willing to buy an SUV will come to our network and find -- and think about whether it's L7 or L8 or L8 or L9 that they should buy, rather than comparing us to other brands and pick which brand to buy. That has been our core product philosophy with the product line above L7, L8 and L9.

另一個好消息是，對 L7 的興趣也幫助我們查看了 L8 的訂單。因此，對於 L8、L7 和 L9，我們實際上不僅形成了一條產品線，而且實際上形成了一個產品網絡。我們希望——任何願意購買 SUV 的家庭都會來到我們的網絡並找到——並考慮他們應該購買的是 L7 還是 L8 還是 L8 還是 L9，而不是將我們與其他品牌進行比較並選擇哪個品牌買。這是我們L7、L8、L9以上產品線的核心產品理念。

For the gross margin, as we just mentioned, for L series platform with all these product offerings and with some scalability of the design, gross profit is - the profit margin is 35%, but considering this year's battery price and also the macroeconomic we still want to keep our guidance just above 20%. Thank you.

對於毛利率，正如我們剛才提到的，對於具有所有這些產品供應和設計的一些可擴展性的 L 系列平台，毛利率是 - 利潤率為 35%，但考慮到今年的電池價格和宏觀經濟我們仍然希望將我們的指導保持在略高於 20% 的水平。謝謝。

There are no further questions at this time. I'll now hand back to Ms. Chang for any closing remarks.

目前沒有其他問題。我現在將把任何結束語交還給張女士。

Thank you once again for joining us today. If you have further questions, please feel free to contact Li Auto Investor Relations team. That's all for today. You may disconnect your lines. 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投資者關係團隊。今天就到此為止。您可以斷開線路。謝謝。

That does conclude our conference for today. Thank you for participating, you may now disconnect.

我們今天的會議到此結束。感謝您的參與，您現在可以斷開連接。