理想汽車 (LI) 2024 Q2 法說會逐字稿

Hello ladies and gentlemen. Thank you for standing by for Li Auto’s second quarter 2024 earnings conference call. (Operator Instructions) Today’s conference call is being recorded. I will now turn the call over to your host, Ms. Janet Zhang, Investor Relations Director of Li Auto. Please go ahead, Janet.

女士們先生們大家好。感謝您出席理想汽車 2024 年第二季財報電話會議。 （操作員說明）今天的電話會議正在錄音。現在我將把電話轉給你們的主持人，理想汽車投資者關係總監張女士。請繼續，珍妮特。

Thank you, Carrie. Good evening and good morning, everyone! Welcome to Li Auto’s second quarter 2024 earnings conference call. The company’s financial and operating results were published in a press release earlier today and were posted on the company’s IR website.

謝謝你，嘉莉。大家晚上好，早安！歡迎參加理想汽車 2024 年第二季財報電話會議。該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，並發佈在該公司的投資者關係網站上。

On today’s call, we will have our chairman and CEO, Mr. Xiang Li; and our CFO, Mr. Johnny Tie Li, begin with prepared remarks. Our President, Mr. Donghui Ma; and Senior Vice President, Mr. James Liangjun Zou, will join for the Q&A discussion.

在今天的電話會議上，我們的董事長兼執行長李翔先生將出席。我們的財務長 Johnny Tie Li 先生首先發表準備好的演講。我們的總裁馬東輝先生；資深副總裁鄒良軍先生將參與問答討論。

Before we 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.

在我們繼續之前，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做出的前瞻性陳述。

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 Stock Exchange of Hong Kong Limited. The company does not assume any obligation to update any forward-looking statements except as required under applicable law.

因此，公司的實際結果可能與今天表達的觀點有重大差異。有關風險和不確定性的更多資訊包含在某些公司向美國證券交易委員會和香港聯合交易所有限公司提交的文件中。除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。

Please also note that Li Auto’s earnings press release and this conference call include discussions of unaudited US GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to Li Auto’s disclosure documents on the IR section of our website, which contain a reconciliation of the unaudited non-GAAP measures to comparable US 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美國公認會計準則財務資訊以及未經審計的非公認會計準則財務指標的討論。請參閱我們網站IR部分的理想汽車揭露文件，其中包含未經審計的非公認會計原則措施與可比較的美國公認會計原則措施的調節表。

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

我們的執行長將用中文開始講話。他發言結束後將有英文翻譯。現在我將把電話轉給我們的執行長李翔先生。請繼續。

(interpreted) The NEV penetration rate in China in July was approaching 50%, indicating higher adoption of smart electric vehicles versus ICE vehicles. As consumers increasingly favor leading brands with strong sales and substantial user bases, we expect the NEV market to further concentrate around top brands.

（解讀）7月中國新能源車滲透率接近50%，顯示智慧電動車的普及率高於內燃機汽車。隨著消費者越來越青睞銷售強勁、用戶基礎雄厚的領導品牌，我們預期新能源車市場將進一步向頂級品牌集中。

In a complex and evolving market landscape in the second quarter, we achieved strong sales performance by focusing on user value and operating efficiency. We delivered more than 108,000 vehicles in the second quarter, representing an increase of 25.5% year over year.

在第二季複雜多變的市場格局中，我們透過專注於用戶價值和營運效率，取得了強勁的銷售業績。第二季我們交付了超過108,000輛汽車，較去年同期成長25.5%。

In the RMB200,000 and higher NEV market, our market share grew from 13.6% in Q1 to 14.4% in Q2, ranking first among domestic auto brands. Since June, we have remained the top-selling brand in the RMB200,000 and higher SUV market in China across NEV and ICE vehicles.

在20萬元及以上新能源汽車市場，我們的市佔率由第一季的13.6%成長至第二季的14.4%，位居國產汽車品牌第一。自6月以來，我們在中國20萬元及以上SUV市場的新能源汽車和內燃機汽車領域保持最暢銷品牌的地位。

In terms of performance by model, all Li Auto models remained leaders in their respective market segments. In the second quarter, Li L7 and Li L8 claimed the top two spots in sales in the RMB300,000 and over large SUV NEV market, while Li L9 continued to be of top sales for full-size SUV among users.

從車款表現來看，理想車款各車型持續保持各自細分市場的領先地位。第二季度，鋰L7、鋰L8穩居30萬元及以上大型SUV新能源汽車市場銷售前兩名，鋰L9繼續穩居全尺寸SUV用戶銷量第一。

Additionally, production and delivery for Li L6 continue to ramp up since its launch in April. Driven by its compelling product features and precise market positioning, Li L6 monthly deliveries have consistently exceeded 20,000 units since June. Li L6 ranks second in sales, in the RMB200,000 and higher passenger vehicle market, including both NEVs and ICE vehicles, only short of Tesla Model Y.

此外，自4月上市以來，Li L6的產量和交付量持續增加。憑藉引人注目的產品功能和精準的市場定位，自6月以來，鋰L6月銷售持續突破2萬台。力L6在20萬元以上乘用車市場（包括新能源汽車和內燃機車）銷售排名第二，僅次於特斯拉Model Y。

Recently, we reached multiple delivery milestones. On June 21, our cumulative deliveries exceeded 800,000 vehicles, making us the first emerging new energy auto brand in China to reach this milestone ever. In July, we set a new monthly delivery record of 51,000 units per month.

最近，我們達到了多個交付里程碑。 6月21日，累計銷售量突破80萬輛，成為中國首個實現此里程碑的新興新能源汽車品牌。 7月份，我們創下了每月51,000台的新月交付記錄。

On August 21, our cumulative deliveries surpassed 900,000 units, an unprecedented achievement for Chinese premium auto brands. I would like to take this opportunity to express my gratefulness to each member of Li Auto for their hard work, and to our users for their recognition and support.

8月21日，我們的累積交付量突破90萬輛，這是中國高階汽車品牌前所未有的成就。藉此機會，我向理想汽車每位成員的辛勤付出，向廣大用戶的認可和支持表示感謝。

In the second quarter of 2024, we recorded total revenues of RMB31.7 billion, up 10.6% year over year, while maintaining a healthy gross margin of 19.5%. We are confident that our operating performance will improve further in the second half of this year, as Li L6 completes its production ramp up and cost reduction and efficiency improvement efforts come to fruition.

2024年第二季度，我們的總收入為人民幣317億元，年增10.6%，同時維持19.5%的健康毛利率。我們有信心，隨著李六的產能全面完成，降本增效工作將在今年下半年取得成效，我們的經營業績將進一步改善。

Vehicle delivery is only the beginning of a typical user journey. Through frequent OTAs, we continually add new features and optimize our user experience, allowing Li Auto vehicles to grow with our users. In July, we released OTA 6.0 and 6.1 for Li MEGA and Li L series users, introducing major improvements across autonomous driving, smart space, and smart electric driving features.

車輛交付只是典型使用者旅程的開始。透過頻繁的OTA，我們不斷添加新功能並優化用戶體驗，讓理想汽車與用戶一起成長。 7月，我們針對Li MEGA和Li L系列用戶發布了OTA 6.0和6.1，在自動駕駛、智慧空間和智慧電動駕駛功能方面進行了重大改進。

I would like to highlight the substantial progress we made in autonomous driving. In July, we rolled out our HD-mapless NOA to over 240,000 Li AD Max users. This version is no longer dependent on prior information, and therefore can operate on all roads across all cities in China. Our HD-mapless NOA is very well-received which is also reflected in accelerating order intake.

我想強調一下我們在自動駕駛方面取得的實質進展。 7 月，我們向超過 24 萬名 Li AD Max 用戶推出了高清地圖無 NOA。該版本不再依賴先驗訊息，因此可以在中國所有城市的所有道路上運行。我們的無高清地圖 NOA 非常受歡迎，這也反映在訂單量的增加上。

Since this feature was introduced to beta users in May, the proportion of NOA test drives has nearly doubled. Following the rollout of OTA 6.0, the daily user engagement rate of city NOA has increased nearly eightfold and the average NOA mileage per user have almost tripled.

自從5月向測試版用戶推出此功能以來，NOA試駕比例幾乎翻了一番。 OTA 6.0推出後，城市NOA的每日用戶參與率增長了近八倍，每個用戶的平均NOA里程幾乎增加了兩倍。

As of now, over 99% of our users use our autonomous driving features regularly, with cumulative NOA mileage surpassing 1.11 billion kilometers. Additionally, user satisfaction and AD Max take rate are both increasing steadily.

截至目前，超過99%的用戶經常使用我們的自動駕駛功能，累計NOA里程超過11.1億公里。此外，用戶滿意度和AD Max使用率都在穩定成長。

Our autonomous driving system continue to iterate quickly. On our Autonomous Driving Summer Launch Event on July 5, we introduced the industry’s first dual-system autonomous driving solution, integrating an end-to-end model or E2E with a vision-language model or VLM.

我們的自動駕駛系統持續快速迭代。在 7 月 5 日的自動駕駛夏季發表會上，我們推出了業界首個雙系統自動駕駛解決方案，將端到端車型或 E2E 與視覺語言機型或 VLM 整合。

We rolled out the new solution to approximately 1,000 beta users by the end of July. The E2E and VLM models brought much stronger conflict resolution and reasoning capabilities to our autonomous driving system. The one model approach also facilitates rapid iterations.

到 7 月底，我們向大約 1,000 名測試版用戶推出了新的解決方案。 E2E和VLM模型為我們的自動駕駛系統帶來了更強的衝突解決和推理能力。單一模型方法也有利於快速迭代。

Our early bird beta testing version iterates 3 to 4 times weekly, with an average daily user engagement rate of over 70%. Additionally, we developed in-house reconstructed and generative world models for training and validation purposes. This new dual-system architecture has many benefits including more efficient inference, faster model iterations, and more human-like route planning, and better overall user experience.

我們的早鳥 Beta 測試版本每週迭代 3 至 4 次，每日平均用戶參與率超過 70%。此外，我們還開發了用於訓練和驗證目的的內部重建和生成世界模型。這種新的雙系統架構有許多好處，包括更有效率的推理、更快的模型迭代、更人性化的路線規劃以及更好的整體使用者體驗。

To cope with our growing product portfolio and greater number of vehicle count, we continued to upgrade and expand our sales and servicing network. In Q2, we upgraded existing shopping mall stores and replaced some lower-performing ones with new sales centers located in major auto parks. The proportion of sales centers has increased to 31% with the total number of showroom display spots increasing by nearly 13% over the last quarter.

為了應對不斷增長的產品組合和更多的車輛數量，我們不斷升級和擴大我們的銷售和服務網絡。第二季度，我們對現有的購物中心門市進行了升級，並在主要汽車園區設立了新的銷售中心，取代了一些表現不佳的門市。銷售中心佔比提升至31%，展廳展示點總數較上季增加近13%。

As of July 31, 2024, we had 487 retail stores located in 146 cities, as well as 411 servicing centers and Li Auto-authorized body and paint shops operating in 220 cities in China.

截至2024年7月31日，我們在中國146個城市擁有487家零售店，並在中國220個城市擁有411家維修中心和理想汽車授權車身及噴漆店。

Looking at our charging network, as of August 27, we had 733 supercharging stations in operation, with 3,428 charging stalls. Alongside the ongoing buildout of our own super charging stations, we collaborated with a number of premium partners to launch the first batch of what we call Li Selection super charging stations in July.

從我們的充電網路來看，截至8月27日，我們已營運超級充電站733個，充電樁3,428個。除了不斷建造自己的超級充電站外，我們還與多家優質合作夥伴合作，於 7 月推出了第一批「Li Selection」超級充電站。

We will continue to expand the coverage and increase the density of our super charging networks. This improves the charging experience for users, allowing more families to choose Li Auto's products with no concerns.

我們將繼續擴大超級充電網路的覆蓋範圍和密度。這提升了用戶的充電體驗，讓更多家庭無憂無慮地選擇理想汽車的產品。

Looking ahead to the third quarter of 2024, we expect vehicle deliveries to be between 145,000 to 155,000 units. As a growth-driven company, we are committed to creating products and services that exceed user expectations, while strengthening our brand in the new energy in premium car markets. In the first half of 2025, we expect to launch battery electric SUV models to serve a broader range of family users. With that, I will now turn it over to our CFO, Johnny, to walk you through our financial performance.

展望 2024 年第三季度，我們預計汽車交付量將在 145,000 輛至 155,000 輛之間。作為一家成長型公司，我們致力於創造超越用戶期望的產品和服務，同時強化我們在高檔汽車市場新能源的品牌。 2025年上半年，我們預計將推出純電動SUV車型，服務更廣泛的家庭用戶。現在，我將把它交給我們的財務長約翰尼，向您介紹我們的財務表現。

Thank you, Xiang. Hello, everyone. I will now walk you through some of our 2024 second quarter financials. Due to time constraints, I will address financial highlights here and encourage you to refer to our earnings press release for further details.

謝謝你，翔。大家好。現在，我將向您介紹我們 2024 年第二季的一些財務數據。由於時間有限，我將在此討論財務要點，並鼓勵您參閱我們的收益新聞稿以了解更多詳細資訊。

Total revenues in the second quarter were RMB31.7 billion or USD4.4 billion, up 10.6% year over year and 23.6% quarter over quarter. This included RMB30.3 billion or USD4.2 billion from vehicle sales, up 8.4% year over year and 25% quarter over quarter.

第二季總營收為317億元人民幣（44億美元），年增10.6%，季增23.6%。其中汽車銷售量為303億元人民幣（42億美元），較去年同期成長8.4%，較上季成長25%。

The year-over-year increase was mainly attributable to the increase in vehicle deliveries, partially offset by the lower average selling price mainly due to different product mix and pricing strategy changes. The sequential increase was mainly due to the increase in vehicle deliveries, partially offset by the lower average selling price as a result of different product mix.

同比增長主要歸因於車輛交付量的增加，但部分被由於產品結構不同和定價策略變化導致的平均售價下降所抵消。環比增長主要是由於車輛交付量的增加，但部分被不同產品組合導致的平均售價較低所抵消。

Cost of sales in the second quarter was RMB25.5 billion or USD3.5 billion, up 13.8% year over year and 25.3% quarter over quarter. Gross profit in the second quarter was RMB6.2 billion or USD850 million, down 0.9% year over year and up 16.9% quarter over quarter.

第二季銷售成本為255億元人民幣（35億美元），較去年同期成長13.8%，較上季成長25.3%。第二季毛利為62億元（8.5億美元），年減0.9%，較上季成長16.9%。

Vehicle margin in the second quarter was 18.7%, versus 21% in the same period last year and 19.3% in the prior quarter. The year-over-year decrease was mainly due to different product mix and pricing strategy changes, partially offset by cost reduction. The sequential decrease was mainly due to different product mix.

第二季汽車利潤率為 18.7%，去年同期為 21%，上季為 19.3%。年比下降主要是由於不同的產品組合和定價策略變化，但部分被成本下降所抵消。環比下降主要是產品結構不同所致。

Gross margin in the second quarter was 19.5%, versus 21.8% in the same period last year and 20.6% in the prior quarter. Operating expenses in the second quarter were RMB5.7 billion or USD785.6 million, up 23.9% year over year and down 2.7% quarter over quarter.

第二季毛利率為19.5%，去年同期為21.8%，上季毛利率為20.6%。第二季營運費用為 57 億元（7.856 億美元），年增 23.9%，季減 2.7%。

R&D expenses in the second quarter were RMB3 billion or USD416.6 million, up 24.8% year over year and down 0.7% quarter over quarter. The year-over-year increase was primarily due to increased expenses to support the expanding product portfolios and technologies as well as increased employee compensation as a result of the growth in the number of staff on a year-over-year basis.

第二季研發費用為30億元人民幣（4.166億美元），較去年同期成長24.8%，季減0.7%。同比增長主要是由於支援不斷擴大的產品組合和技術的費用增加，以及由於員工數量同比增長而導致的員工薪酬增加。

The sequential decrease was primarily due to decreased employee compensation, offset by increased expenses to support the expanding product portfolios and technologies.

環比下降主要是由於員工薪酬下降，但被支持不斷擴大的產品組合和技術的費用增加所抵消。

SG&A expenses in the second quarter were RMB2.8 billion or USD387.4 million, up 21.9% year over year and down 5.5% quarter over quarter. The year-over-year increase was primarily due to increased employee compensation as a result of the growth in the number of staff as well as increased rental and other expenses associated with the expansion of sales and servicing network.

第二季的銷售管理及行政費用為 28 億元（3.874 億美元），較去年同期成長 21.9%，較上季下降 5.5%。年比成長主要是由於員工人數增加導致員工薪資增加，以及與銷售和服務網絡擴張相關的租金和其他費用增加。

The sequential decrease was mainly due to decreased marketing and promotional activities and employee compensation on a quarter-over-quarter basis.

環比下降主要是由於行銷和促銷活動以及員工薪酬較上季減少。

And income from operations in the second quarter was RMB468 million or USD64.4 million, versus income from operations of RMB1.6 billion in the same period last year and loss from operations of RMB584.9 million in the prior quarter. Operating margin in the second quarter was 1.5%, versus 5.7% in the same period last year and negative 2.3% in the prior quarter.

第二季營運收入為 4.68 億元（約 6,440 萬美元），而去年同期營運收入為 16 億元，上一季營運虧損為 5.849 億元。第二季營業利益率為 1.5%，去年同期為 5.7%，上一季為負 2.3%。

Net income in the second quarter was RMB1.1 billion or $151.5 million, down 52.3% year over year and up 86.2% quarter over quarter. Diluted net earnings per ADS attributable to ordinary shareholders was RMB1.05 or USD0.14 in the second quarter, versus RMB2.18 in the same period last year, and RMB0.56 in the prior quarter.

第二季淨利為11億元人民幣（1.515億美元），年減52.3%，季增86.2%。第二季歸屬於普通股股東的稀釋後每股美國存託股淨利為人民幣1.05元或0.14美元，去年同期為人民幣2.18元，上一季為人民幣0.56元。

And turning to our balance sheet and cash flow. Our cash position remained strong and stood at RMB97.3 billion or USD13.4 billion, as of June 30, 2024. Net cash used in operating activities in the second quarter was RMB429.4 million or USD59.1 million, versus net cash provided by operating activities of RMB11.1 billion in the same period last year and net cash used in operating activities of RMB3.3 billion in the prior quarter.

轉向我們的資產負債表和現金流。截至2024 年6 月30 日，我們的現金狀況依然強勁，為973 億元人民幣（134 億美元）。現金為4.294 億元（5,910 萬美元）去年同期經營活動所用現金為人民幣111億元，上季度經營活動所用現金淨額為人民幣33億元。

Free cash flow was negative RMB1.9 billion or negative USD254.9 million in the second quarter, versus positive RMB9.6 billion in the same period last year and negative RMB5.1 billion in the prior quarter.

第二季自由現金流為負 19 億元或負 2.549 億美元，去年同期為正人民幣 96 億元，上一季為負人民幣 51 億元。

And now for our business outlook. For the third quarter of 2024, the company expects the deliveries to be between 145,000 and 155,000 vehicles, representing a year-over-year increase of 38% to 47.5%.

現在談談我們的業務前景。該公司預計2024年第三季的交付量將在145,000至155,000輛之間，年增38%至47.5%。

The company also expects third quarter total revenues to be between RMB39.4 billion and RMB42.2 billion, or USD5.4 billion and USD5.8 billion, representing a year-over-year increase of 13.7% to 21.6%. This business outlook reflects the company’s current and preliminary view on its business situation and market conditions, which is subject to change. That concludes our prepared remarks. I will now turn the call over to the operator to start our Q&A session. Thank you.

該公司也預計第三季總營收將在394億元至422億元人民幣之間，即54億美元至58億美元之間，年增13.7%至21.6%。本業務展望反映了公司對其業務狀況和市場狀況的當前初步看法，可能會發生變化。我們準備好的演講到此結束。我現在將把電話轉給接線員以開始我們的問答環節。謝謝。

(Operator Instructions) Tim Hsiao, Morgan Stanley.

（操作員指示）Tim Hsiao，摩根士丹利。

(spoken in foreign language)

（用外語說）

So my first question is about the autonomous driving, I think Li Auto is diving into the end-to-end autonomous driving technology and expanding the team aggressively, how quickly it will auto evaluate the return and efficiency of such ambitious investment? What could be the more relevant metrics for investors to assess how to reach out and the commercialization progress of Li Auto's end-to-end autonomous driving technology? That's my first question. Thank you.

所以我的第一個問題是關於自動駕駛的，我認為理想汽車正在深入研究端到端自動駕駛技術並積極擴大團隊，它會多快評估如此雄心勃勃的投資的回報和效率？對於投資者來說，評估理想汽車端到端自動駕駛技術的觸達方式和商業化進展的更相關指標是什麼？這是我的第一個問題。謝謝。

(interpreted) Since the beginning, our investment yield on autonomous driving has always been pretty high and in terms of operating metrics, we'd like to focus on two key results. One is whether our user is willing to use it and second is whether users willing to pay for it.

（解讀）從一開始，我們在自動駕駛方面的投資報酬率一直都很高，從營運指標來看，我們主要關注兩個關鍵成果。一是我們的用戶是否願意使用，二是用戶是否願意付費。

So on the user front, metrics include the percentage time use or percentage mileage used. And since we launched HD-mapless NOA in July, users usage rate have been increasing steadily, as shown by both the daily active rate and the mileage driven have both increased manifold.

因此，在使用者方面，指標包括時間使用百分比或里程使用百分比。而自從我們7月推出高精地圖NOA以來，用戶使用率一直在穩步上升，無論是每日活躍率還是行駛里程都成倍增長。

On the market front, improvement in NOA has positive effects on adoption rate since for potential users who come to our stores, the percentage of users who take NOA on test drives has increased more than twice, and the percentage of NOA AD Max take rate on every model has also been increased, especially cars priced above RMB300,000, the percentage of AD Max take rate has already approached 70%.

在市場方面，NOA 的改進對採用率產生了積極的影響，因為對於來到我們商店的潛在用戶來說，在試駕中使用NOA 的用戶比例增加了兩倍以上，NOA AD Max 採用率的百分比增加了2 倍以上。

And we believe that VLM and E2E model marks the beginning of establishing entry barriers in terms of R&D for autonomous driving, because we believe that this generation is real-AI powered, autonomous driving and AI is further relies on large amounts of data and computing power.

我們認為VLM和E2E模型標誌著自動駕駛研發方面開始建立進入壁壘，因為我們相信這一代是真正的AI驅動的，自動駕駛和AI進一步依賴大量的數據和計算能力。

So only companies with the ability to invest in the data and training capability and also have it large enough user or vehicle base are able to become bigger and bigger in autonomous driving. And this improvement in autonomous driving will then further increase sales overall and also the number of AD Max equipped vehicles. And this further in return allows us to invest even more in autonomous driving. So this is a very positive snowball effect.

因此，只有有能力在數據和訓練能力上進行​​投資，並且擁有足夠大的用戶或車輛基礎的公司才能在自動駕駛領域變得越來越大。自動駕駛技術的進步將進一步增加整體銷售以及配備 AD Max 的車輛數量。而這進一步的回報使我們能夠在自動駕駛方面進行更多投資。所以這是一個非常正面的滾雪球效應。

(spoken in foreign language)

（用外語說）

My second question is about the competition. Could management comment on the ongoing competition between Li Auto and Huawei? How do we expect the competitive landscape to evolve into second half as both brands like Li Auto and AITO keep striving for the tough spot in family SUVs market with advanced smart driving features? That's my second question. Thank you.

我的第二個問題是關於比賽的。管理階層能否評論理想汽車與華為之間正在進行的競爭？理想汽車、AITO等品牌憑藉先進的智慧駕駛功能不斷爭取家用SUV市場的硬地，下半年競爭格局將如何演變？這是我的第二個問題。謝謝。

(interpreted) So first of all, HIMA is our biggest competitor in the market and our view is that we will continue to coexist with HIMA in the long term in a very healthy fashion. And our attitude has always been to continually learn from Huawei, especially its R&D systems and methodologies in operations and management as for us as a startup company to have such a model to learn from is very critical.

（解釋）首先，HIMA是我們在市場上最大的競爭對手，我們的觀點是，我們將繼續以非常健康的方式與HIMA長期共存。我們的態度一直是不斷學習華為，特別是華為的研發體系和營運管理方法論，對於我們作為一個新創公司來說，有這樣的模式可以藉鏡是非常關鍵的。

Ben Wang, Deutsche Bank.

王本，德意志銀行。

(spoken in foreign language)

（用外語說）

I've got two questions. Number one is about the margin guidance for this year. Did you maintain a full-year 20% gross margin guidance? Especially for the third quarter, basically, you mentioned that the AD Max version proportion increased to more than 70%. Is that going to be increasing the product mix, I mean the third-quarter gross margin -- vehicle gross margin back to 20%? That's the first question.

我有兩個問題。第一個是關於今年的利潤指引。你們是否維持全年 20% 的毛利率指引？特別是第三季度，基本上，您提到AD Max版本比例增加到70%以上。這是否會增加產品組合，我指的是第三季的毛利率——車輛毛利率回到 20%？這是第一個問題。

The second question is about your pure EV products. This is where you have been postponed vehicle by almost half a year. Did you change the design, especially the exterior design because for some of the style feature, it showed like design did not yet. Most of the customers prefer to change the standard design to differentiate from the MEGA design. Can you provide any comment on that? Thank you.

第二個問題是關於你們的純電動產品。這是你推遲車輛近半年的地方。你是否改變了設計，特別是外觀設計，因為對於某些風格特徵，它表現得像設計還沒有。大多數客戶喜歡改變標準設計以區別於 MEGA 設計。你能否對此發表評論？謝謝。

Hello, this is Johnny. I will take the first question. I think last quarter we got vehicle marketing is around 18% actually finally, we delivered 18.7% and this is of our company and also the product mix and the delivery, the final delivery. So for the third quarter, we believe our vehicle margin will come back a little bit around, it will be over 19% and the total gross margin will be above 20% in the third quarter. Thank you.

你好，這是強尼。我將回答第一個問題。我認為上季度我們的車輛行銷約為 18%，實際上最終我們交付了 18.7%，這是我們公司的，也是產品組合和交付，最終交付的。所以對於第三季度，我們相信我們的整車利潤率將會回升，將超過19%，第三季總毛利率將超過20%。謝謝。

(interpreted) Li MEGA has been a great validation of our capabilities in 800 volt high voltage drivetrain and also our R&D capabilities in this area including the drive train efficiency of our high voltage platform and also the end-to-end charging experience and capabilities.

（解讀）Li MEGA極大地驗證了我們在800伏高壓傳動系統方面的能力，也是我們在該領域的研發能力，包括我們高壓平台的傳動系統效率以及端到端的充電經驗和能力。

And as we make improvements in autonomous driving, we have also become a Tier 1 player in autonomous driving and similarly, our competitiveness in smart cockpit or smart space has also been very strong historically.

隨著我們在自動駕駛方面不斷進步，我們也成為了自動駕駛領域的Tier 1，同樣，我們在智慧座艙或智慧空間方面的競爭力也歷來非常強。

So for our best SUVs, we really only need to solve two important problems. The first one is overall styling of the product and the second one is to make sure that we have well over 200,000 charging stations by the time we start deliveries of our BEV product. So overall, we're pretty confident in the competitiveness of our electric SUVs and we our plan or our goal is to become a Tier 1 player in the premium BEV market in two years' time.

因此，對於我們最好的SUV，我們實際上只需要解決兩個重要問題。第一個是產品的整體造型，第二個是確保在我們開始交付 BEV 產品時我們擁有超過 200,000 個充電站。因此，總的來說，我們對電動 SUV 的競爭力非常有信心，我們的計劃或目標是在兩年內成為高端純電動車市場的一級參與者。

Tina Hou, Goldman Sachs.

蒂娜·侯，高盛。

(spoken in foreign language)

（用外語說）

So thanks management for taking my question. First question is regarding our competition strategy into the second half of the year. So especially given that we don't have any new model launches for the second half, how are we expecting to maintain or even improve our sales volume?

感謝管理層提出我的問題。第一個問題是關於我們下半年的競爭策略。特別是考慮到我們下半年沒有任何新車型推出，我們預計如何維持甚至提高我們的銷售量？

The second question is, since earlier this year, management has lowered overall volume guidance to a low end of 560,000 units for full year 2024. However, we also gave a quite high CapEx guidance at around RMB15 billion, I think, in first quarter. So given the lowered volume guidance, how should we think about the pace of capacity expansion as well as new CapEx guidance? Thank you.

第二個問題是，自今年稍早以來，管理層已將2024 年全年的整體銷售指引下調至56 萬輛的低端。指導，約150 億元。因此，考慮到銷售指引的下調，我們應該如何考慮產能擴張的步伐以及新的資本支出指引？謝謝。

Hi, Tina. This is James. I will take your first question. New models are only one of the reasons contributing to sales growth. And from my point of view, efficient sales operations is another way to promote sales and that's what we are doing now. And looking forward, we will continue to optimize the deployment of our stores while strengthening our capability to gain online need.

嗨，蒂娜。這是詹姆斯。我將回答你的第一個問題。新車型只是銷量成長的原因之一。從我的角度來看，高效的銷售營運是促進銷售的另一種方式，這就是我們現在正在做的事情。展望未來，我們將持續優化門市佈局，同時增強線上需求獲取能力。

This will open the door to higher possibilities of sales growth while enhancing the efficiency of sales operations. In addition, our recently increased publicity of autonomous driving also facilitated sales growth, in particular, the sales of AD Max models.

這將為更高的銷售成長可能性打開大門，同時提高銷售營運的效率。另外，近期我們對自動駕駛的宣傳力道加大，也促進了銷售量的成長，特別是AD Max車款的銷售量。

As the results show, our market share in the RMB200,000 and higher NEV market increased to 14.4% in second quarter 2024 from 13.6% in the first quarter. We aim to grow our market share in this segment further to 16% in the last quarter this year.

結果顯示，我們在20萬元及以上新能源汽車市場的市佔率從第一季的13.6%增至2024年第二季的14.4%。我們的目標是在今年最後一個季度將我們在這一領域的市佔率進一步增加至 16%。

Tina, this is Johnny. And I think with James has just mentioned, 16% market share on the NEV market above RMB200,000. And if we assume a healthy passenger vehicle market in the second half of this year, we are very confident our full-year delivery will finally over 0.5 million delivery vehicles.

蒂娜，這是強尼。我想正如James剛才提到的，在20萬元以上的新能源汽車市場上，市佔率為16%。如果我們假設今年下半年乘用車市場健康，我們非常有信心全年交付車輛最終將超過50萬輛。

And for the CapEx, we have optimized our CapEx pace. And in the beginning of this year, we estimate the CapEx is about USD2 billion. And currently, we estimate the CapEx will be USD1.1 billion to USD1.2 billion. And for the free cash flow and for June and July, the free cash flow has been positive.

對於資本支出，我們優化了資本支出節奏。今年年初，我們估計資本支出約為 20 億美元。目前，我們預計資本支出將為 11 億美元至 12 億美元。對自由現金流而言，六月和七月的自由現金流一直為正。

And with the optimization of the CapEx investment and also the improvement of the operational efficiency, we are very confident that our free cash flow will come back to positive starting from the third quarter.

隨著資本支出投資的最佳化和營運效率的提高，我們非常有信心我們的自由現金流將從第三季開始恢復正值。

Xu Yingbo, CITIC Securities.

徐英波，中信證券。

(spoken in foreign language)

（用外語說）

And so I have two questions. The first question is about end-to-end autonomous driving. So what's our view about our future plan all in this area? And the second question is about robotaxi, how we see this trend? Thank you.

我有兩個問題。第一個問題是關於端到端的自動駕駛。那麼我們對這領域的未來計畫有何看法？第二個問題是關於robotaxi，我們如何看待這個趨勢？謝謝。

(interpreted) First of all, our end-to-end VLM model, the iteration rate and performance actually exceeded our operations. Since we began our 1,000 early bird testing program in July, in less than a month, the model has gone through nine iterations, on average a new iteration every 34 days.

（解讀）首先，我們端到端的VLM模型，迭代率和效能其實超出了我們的營運。自從7月我們開始千人早鳥測試計畫以來，不到一個月的時間，模型已經經歷了九次迭代，平均每34天就有一個新的迭代。

The amount of data used for training has also increased from 1 million clips at the beginning to 2.3 million clips currently, and the model capabilities has also been increasing along the way. Many of our early bird testing users have posted many videos of their end-to-end driving on social media to showcase the great performance on city roads.

用於訓練的資料量也從一開始的100萬個片段增加到目前的230萬個片段，模型能力也一路提升。我們的許多早鳥測試用戶已經在社交媒體上發布了許多端到端駕駛的視頻，以展示在城市道路上的出色表現。

The rapid iteration of the model won't be possible without highly efficient and automated testing capabilities. And we rely on world models to build a simulation testing system. In this system and using user feedback and using real-world scenario reconstruction and generative technologies, we have built a pull of a library of mistakes and testing scenarios for our models to make sure that our models are most fully tested and trained.

沒有高效率、自動化的測試能力，就不可能實現模型的快速迭代。我們依靠世界模型來建構模擬測試系統。在這個系統中，利用使用者回饋以及現實場景重建和生成技術，我們為我們的模型建立了一個錯誤庫和測試場景庫，以確保我們的模型得到最充分的測試和訓練。

This testing program can rate the models in terms of safety, comfort, and many other dimensions. And we believe that there has been a fundamental change in autonomous driving R&D that has increased from feature iteration to model capability iteration. And the speed of iteration is highly dependent on whether we have high-quality and large amounts of -- high-quality data and large amounts of computing power.

此測試程序可以從安全性、舒適性和許多其他維度對模型進行評級。我們認為自動駕駛研發已經發生了根本性的變化，從特徵迭代上升到模型能力迭代。而迭代的速度很大程度上取決於我們是否擁有高品質、大量的——高品質的數據和大量的運算能力。

And also what I mentioned earlier, which is the automated simulation testing program. So our end-to-end VLM system, we're planning -- for this system, we're planning to launch a greater scale or approximately 10,000 user scale testing program starting in September.

還有我前面提到的，就是自動化模擬測試程式。因此，我們正在規劃我們的端到端 VLM 系統，對於該系統，我們計劃從 9 月開始啟動更大規模或約 10,000 個用戶規模的測試計畫。

And on your question regarding robotaxi, our view interestingly is that as we reach Level 4 autonomous driving, the demand for ride-hailing and taxi and will actually decrease. And obviously, the market will take more time for us to observe and to see how it develops in the future.

關於你關於機器人計程車的問題，有趣的是，我們的觀點是，當我們達到 4 級自動駕駛時，對乘車和計程車的需求實際上會減少。顯然，市場未來如何發展還需要我們更多的時間來觀察和了解。

Paul Gong, UBS.

龔保羅，瑞銀集團。

(spoken in foreign language)

（用外語說）

So we have seen recent weak consumption sentiment in China, but the auto sales series continued to grow in terms of the sales volume. In the environment of the government stimulus as well as certain pricing adjustments upwards by the German premium brand, have you seen the competitive environment in the high-end market has sequentially improved recently?

所以我們看到最近中國的消費情緒疲軟，但汽車銷售系列的銷售量卻持續成長。在政府刺激以及德國高端品牌價格上調的大環境下，您是否看到近期高端市場的競爭環境有所改善？

Okay, Paul, this is James. I will take your question. And I believe our recent robust sales performance has been largely contributable to our Li series competitive advantage from its product strength. And our adaptability and ability to make swift adjustments in responding to the market.

好吧，保羅，這是詹姆斯。我會回答你的問題。我相信我們最近強勁的銷售業績在很大程度上歸功於我們的Li系列產品實力的競爭優勢。以及我們針對市場做出快速調整的適應能力和能力。

Apart from the traditional sales channels in the second quarter, we ramped up our investment in online marketing resources, such as Douyin and other online platform, achieving significant results as it brought us substantial increase in sales leads.

第二季度除了傳統的銷售管道外，我們加大了對抖音等網路平台等網路行銷資源的投入，取得了明顯的成效，為我們帶來了銷售線索的大幅成長。

Additionally, we are revolutionizing our sales system by giving more empowerment to regional level. This system allows each region to adopt regional sales strategy in a flexible approach on the condition of accomplishing profit targets given by the company.

此外，我們正在透過向區域層面賦予更多權力來革新我們的銷售系統。此體系允許各區域在完成公司下達的利潤目標的情況下，靈活地採取區域銷售策略。

This approach significantly enhances the sales potential to each region. Last but not least, since June 2024, the NEV penetration rate in the RMB200,000 and higher market has reached over 50%, which is a significant milestone. After this, I think the premium NEV industry will continue to consolidate and I believe the auto will be one of the main beneficiaries during this process. Thank you

這種方法顯著增強了每個地區的銷售潛力。最後，自2024年6月以來，新能源車在20萬元及以上市場的滲透率已達到50%以上，這是一個重要的里程碑。此後，我認為高端新能源汽車產業將繼續整合，而汽車將是這一過程中的主要受益者之一。謝謝

(spoken in foreign language)

（用外語說）

So my second question is regarding the preparation work for the BEV models next year. Given the half-year adjustment of the launching time, will you adopt more new technologies, the latest technologies, and how much of the scale have you been preparing for the supply chain in terms of the capacity?

我的第二個問題是關於明年純電動車型的準備。上市時間有半年的調整，你們會採用更多的新技術、最新的技術嗎？

(interpreted) Our plan is still to launch multiple 800-volt high voltage pure electric vehicles next year, 2025. In terms of R&D, everything is on track. So far, we have completed multiple rounds of low-volume trial production of prototype vehicles.

（解讀）我們的計畫仍是明年2025年推出多款800伏特高壓純電動車。目前，我們已完成多輪樣車小批量試製。

And according to our testing and including, for example, high-temperature, high humidity durability testing schedule, everything is going according to plan. And in terms of supply-chain readiness, everything is also on track.

根據我們的測試，包括高溫、高濕耐久性測試計劃，一切都按計劃進行。在供應鏈準備方面，一切也都步入正軌。

The planned production capacity is sufficient to meet the sales targets. And the factories for manufacturing these vehicles have completed production -- completed construction and the four major lines of stamping, welding, painting, and assembly are also under testing and installation.

計劃產能足以滿足銷售目標。生產這些車輛的工廠已經完成生產、建設，沖壓、焊接、塗裝、總四大生產線也正在測試和安裝中。

We are planning to have key components develop in-house on our BEV electric vehicles and these have also been going through performance testing. External suppliers and our partners have also been developing and building out their production capacity on track. Everything is going according to plan. So overall, we're very confident to deliver our BEV models next year according to plan.

我們計劃在純電動車上自行開發關鍵零件，這些零件也經過性能測試。外部供應商和我們的合作夥伴也一直在按計劃開發和建立其生產能力。一切都按計劃進行。因此總的來說，我們非常有信心明年按計劃交付我們的純電動車型。

Yuqian Ding, HSBC.

丁宇謙，匯豐銀行。

(spoken in foreign language)

（用外語說）

So I got two questions. The first is, last season management talked about the reallocate the model display in the channel to maximize the product mix and bring more exposure to the high-end model like L8. How does that go versus the expectation? The second question is about, there's been quite some restructuring and adjustment in the first half. Could you refresh the full year R&D expense guidance and highlight us, change if any? Thank you.

所以我有兩個問題。首先是，上一季管理層談到重新分配通路中的車型展示，以最大限度地擴大產品組合，並為L8等高端車型帶來更多曝光。與預期相比情況如何？第二個問題是，上半年發生了一些結構調整。您能否刷新全年研發費用指導並強調我們，如果有變化的話？謝謝。

Okay, Yuqian. This is James. I will take your first question. As we open more stores in auto parks, the number of display spots for L8 has gradually recovered. We also developed the new online sales channels including Douyin to ensure sufficient sales leads for L8. So now L8 sales has been steadily improving since April. Currently, its monthly deliveries has recovered to the range of 6,000 to 7,000 units.

好吧，於謙。這是詹姆斯。我將回答你的第一個問題。隨著我們在停車場開設更多門市，L8的展示點數量也逐漸恢復。我們也開發了抖音等新的線上銷售管道，以確保L8有足夠的銷售線索。所以現在L8的銷售量從4月開始就一直在穩定提升。目前，其每月交付量已恢復至6,000至7,000輛的範圍。

Hi, this is Johnny. For R&D, we expect the full year GAAP R&D will be below RMB12 billion. Thank you.

嗨，這是約翰尼。研發方面，我們預計全年 GAAP 研發費用將低於 120 億元。謝謝。

Jin Zhong, CICC.

金鐘，中金公司。

(spoken in foreign language)

（用外語說）

So my first question is about the distribution network. After the review of the first half of 2024, we have made a lot of improvements. So just as Mr. Li Xiang mentioned about, we increased the proportion of the central stores, so can you share more about the detail behind the above changes about the logic and our stance on the distribution network extension and also entering into the lower tier cities. And also what we should do more to prepare for the launch of EV models next year.

所以我的第一個問題是關於分銷網絡的。經過2024年上半年的回顧，我們做了許多改進。那麼正如李想先生所提到的，我們增加了中心店的比例，那麼您能否詳細分享一下上述變化背後的邏輯以及我們對分銷網絡延伸以及進入低線城市的立場。以及我們應該為明年電動車車型的推出做更多的準備。

Okay, Jin Zhong, this is James. I will take your question. So first of all, we are speaking to our direct sales model, and we are aiming to display all models in our showrooms. And that's what we are doing now. Our retail stores in all auto parks have larger floor spaces and have the capacity to display 9 to 11 vehicles. And we will display all of our models in these stores.

好的，金鐘，這是詹姆斯。我會回答你的問題。首先，我們談論的是我們的直銷模式，我們的目標是在我們的展廳中展示所有型號。這就是我們現在正在做的事情。我們在所有停車場的零售店都有較大的建築面積，可容納 9 至 11 輛車。我們將在這些商店中展示我們所有的型號。

So since the start of this year, we have been making many adjustments towards our sales channels. We are gradually replacing low performing stores in the shopping malls with retail stores in leading auto parks. We will continue to focus on the best auto parks in the top 150 cities and open large high-quality stores there.

所以今年以來，我們對銷售管道進行了許多調整。我們正在逐步用領先汽車園區的零售店取代購物中心業績不佳的商店。我們將繼續聚焦150強城市中最好的停車場，並在那裡開設大型優質商店。

In terms of our achievements so far, the proportion of our stores in auto parks has increased from 24% last year -- end of last year, to 31% at end of June 2024. We plan to further increase the proportion to close to 50% by end of this year. And regarding your question that next year for the BEV, when we launch our BEV models, so we will continue to increase the proportion of the car park stores next year, so to facilitate our display spots.

從目前所取得的成績來看，我們在汽車園區的門市比例已從去年年底的24%增加到2024年6月底的31%。 。至於你提到的問題，明年對於純電動車，當我們推出我們的純電動車型時，所以明年我們會繼續增加停車場店的比例，以便於我們的展示位。

The showroom capacity per store also improved, alongside the increased proportion of stores in auto parks, the number of showroom vehicles per store has increased from 4.6 units at the end of last year to 5.1 units at the end of June 2024.

每店陳列室容量也有所提高，隨著停車場店面比例的增加，每店展示車輛數量從去年底的4.6輛增加到2024年6月底的5.1輛。

And we plan to further increase this metric to cover six units per store by end of this year. Our total number of showroom display ports has increased from 2,642 at the end of last year to 2,919 at the end of June 2024. We plan to further increase this number to over 3,600 by end of this year. Thank you.

我們計劃在今年年底前進一步提高這項指標，以涵蓋每家商店 6 個單位。我們的展廳展示端口總數已從去年底的2,642個增加到2024年6月底的2,919個。謝謝。

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

由於我們的電話會議即將結束，我想將電話轉回公司進行結束語。張珍妮女士，請講。

Thank you once again for joining us today. If you have further questions, please feel free to contact Li Auto's Investor Relations team through the contact information provided on our IR website. This concludes this conference call. You may now disconnect your line. Thank you.

再次感謝您今天加入我們。如果您還有其他疑問，請隨時透過我們投資者關係網站上提供的聯絡資訊聯絡理想汽車的投資者關係團隊。本次電話會議到此結束。現在您可以斷開線路。謝謝。