理想汽車 (LI) 2021 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by for Li Auto's third quarter 2021 earnings conference call.

女士們，先生們，感謝大家支持理想汽車2021年第三季度財報電話會議。

(Operator Instructions).

（操作員說明）。

I will now turn the call over to your host, Janet Zhang, Investor Relations Director of Li Auto.

我現在將把電話轉給你的主持人，理想汽車投資者關係總監 Janet Zhang。

Please go ahead, Janet.

請繼續，珍妮特。

Thank you, Rachel.

謝謝你，雷切爾。

Good evening and good morning, everyone, welcome to Li Auto's third quarter 2021 earnings conference call.

大家晚上好，早上好，歡迎來到理想汽車2021年第三季度財報電話會議。

The Company's financial and operating results were published in the press releases earlier today and were posted on the Company's IR website and the Hong Kong Stock Exchange.

公司的財務和經營業績已在今天早些時候的新聞稿中公佈，並刊登在公司的投資者關係網站和香港聯交所。

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

今天的電話會議有我們的總裁沉亞南先生；我們的首席財務官 Johnny Tie Li 先生；首先是準備好的發言，我們的創始人兼首席執行官李翔先生；我們的 CTO 王凱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.

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作出的前瞻性陳述。

Forward-looking statements involve inherent risks and uncertainties.

前瞻性陳述涉及固有的風險和不確定性。

As such, the Company's actual results may be materially different from the views expressed today.

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。

Further information regarding these and other risks and uncertainties is included inside the filings of the Company with the US Securities and Exchange Commission and announcements published on the website of the Hong Kong Stock Exchange and the Company.

有關這些及其他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提交的文件以及在香港聯交所和公司網站上發布的公告中。

The Company does not assume any obligation to update any forward-looking statement except as required under applicable law.

除非適用法律要求，否則公司不承擔任何更新任何前瞻性陳述的義務。

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 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 財務指標的討論。

Please refer to Li Auto's press release and announcements which contain a reconciliation of unaudited non-GAAP measures to comparable GAAP measures.

請參閱理想汽車的新聞稿和公告，其中包含未經審計的非 GAAP 指標與可比 GAAP 指標的對賬。

With that, I will now turn the call over to our President.

有了這個，我現在將把電話轉給我們的總統。

Please go ahead, Kevin.

請繼續，凱文。

Thank you, Janet.

謝謝你，珍妮特。

Hello, everyone, and thank you for joining our call today.

大家好，感謝您今天加入我們的電話會議。

We are excited to be part of this once in a century transformation from ICE vehicles to smart electric vehicles.

我們很高興能參與這場百年一遇的從內燃機汽車到智能電動汽車的轉變。

We are also pleased to see user acceptance of the NEVs reaching an inflection point.

我們也很高興看到用戶對新能源汽車的接受度達到拐點。

As reported by the China Passenger Car Association, the penetration rate of NEVs in retail sales rose significantly to 18.5% in October, from 5.8% in 2020.

據乘聯會報導，新能源汽車在零售銷售中的滲透率從 2020 年的 5.8% 大幅上升至 10 月的 18.5%。

Looking out to 2022, we believe the extended range system with a large battery capacity will usher in a year of explosive EREV sales.

展望2022年，我們相信大容量增程式系統將迎來增程式汽車銷量爆發的一年。

Against this backdrop and on the heels of the successful 2021 Li ONE launch in May, we delivered strong results in the third quarter, achieving revenue growth of 209.7% year over year, underpinned by record breaking quarterly delivery of 25,116 units, an increase of 190% year over year.

在此背景下，繼 2021 Li ONE 於 5 月成功發布後，我們在第三季度取得了強勁的業績，收入同比增長 209.7%，這得益於創紀錄的季度交付量 25,116 輛，同比增長 190 輛％ 年復一年。

This growth once again highlights the underlying strength of our 2021 Li ONE and its compelling appeal to family users.

這種增長再次凸顯了我們 2021 Li ONE 的潛在實力及其對家庭用戶的強大吸引力。

Thanks to the dedicated efforts of our team and supply chain partners, as well as continuous support from Li ONE users, our October delivery was 7,649 units, increasing 107.2% year-over-year.

在我們團隊和供應鏈合作夥伴的努力下，以及Li ONE用戶的持續支持下，我們10月份的交付量為7,649台，同比增長107.2%。

Our order intake remains robust, hitting a new monthly record of over 14,500 units in October.

我們的訂單量依然強勁，在 10 月份創下了超過 14,500 件的月度新紀錄。

The rapid development of the smart EV industry has magnified the effects of the industry-wide chip shortage, challenging each OEM's production and delivery schedule.

智能電動汽車行業的快速發展，放大了全行業芯片短缺的影響，對各主機廠的生產和交付進度提出了挑戰。

While we are enjoying the strong user endorsement of our product, our delivery growth lagged our order growth due to the chip supply shortage, which has constrained our production.

雖然我們的產品得到了用戶的強烈認可，但由於芯片供應短缺限制了我們的生產，我們的交付增長落後於訂單增長。

Despite the lingering impact of COVID-19 and extreme weather conditions in certain regions, we have resolved some of the chip supply problems by working diligently with our supply partners and also internal teams.

儘管 COVID-19 的影響和某些地區的極端天氣條件揮之不去，但我們通過與我們的供應合作夥伴和內部團隊的努力合作，解決了一些芯片供應問題。

We delivered 100,000 Li ONEs to our family users in this month and expect our deliveries in November to exceed 10,000 vehicles.

本月我們向家庭用戶交付了 100,000 輛 Li ONE，預計我們 11 月的交付量將超過 10,000 輛。

In light of the ongoing industry-wide semiconductor shortage, we expect the total delivery in the fourth quarter of 2021 to be between 30,000 to 32,000 vehicles.

鑑於整個行業的半導體持續短缺，我們預計 2021 年第四季度的總交付量將在 30,000 至 32,000 輛之間。

As the development of the smart electric vehicle industry accelerates, we think the challenge to the overall EV supply chains facing the industry will persist into the future.

隨著智能電動汽車行業的加速發展，我們認為該行業面臨的整個電動汽車供應鏈的挑戰將持續到未來。

Going forward, we will continue to take actions and find multiple measures together with our supply chain partners to mitigate that risk.

展望未來，我們將繼續採取行動，並與我們的供應鏈合作夥伴一起尋找多種措施來降低這種風險。

Turning to the profitability, our gross margin stood at 23.3% in the third quarter, up 3.5% year over year and 4.4% quarter over quarter.

談到盈利能力，我們第三季度的毛利率為 23.3%，同比增長 3.5%，環比增長 4.4%。

Our operating cash flow was RMB2.17 billion, or US$336.7 million during the third quarter, reflecting our consistent and relentless focus on execution and cost management.

第三季度，我們的經營現金流為人民幣 21.7 億元，即 3.367 億美元，反映出我們始終不懈地專注於執行和成本管理。

During the third quarter, we made notable progress in the expansion of our direct sales and service network, which not only serves as our user touchpoint for efficient sales and marketing, but also an integral component of our closed loop integrated online and offline platform that helps us manage user feedback to continuously enhance our products and services.

第三季度，我們在直銷和服務網絡的擴張方面取得了顯著進展，這不僅是我們高效銷售和營銷的用戶接觸點，也是我們線上線下一體化閉環平台的重要組成部分，有助於我們管理用戶反饋以不斷改進我們的產品和服務。

As of 31 October 2021, we had 162 retail stores covering 86 cities and 223 servicing centers and Li Auto authorized body and paint shops operating in 165 cities.

截至2021年10月31日，我們在86個城市擁有162家零售店，在165個城市擁有223個服務中心和理想汽車授權車身和噴漆店。

We will continue to expand our coverage of lower-tier cities, while deepening our penetration in first- and second-tier cities, to reach our target of 200 retail stores by year end, covering more than 100 cities in China.

我們將繼續擴大對低線城市的覆蓋，同時深化對一二線城市的滲透，力爭年底前達到 200 家零售店的目標，覆蓋中國 100 多個城市。

This will increase our brand awareness and prepare us for surging user demand as we launch new models.

這將提高我們的品牌知名度，並為我們推出新車型時激增的用戶需求做好準備。

In terms of product optimization, we upgraded the in-car voice assistant, Li Xiang Tong Xue and launched the new application store via an OTA update in early September.

在產品優化方面，我們升級了車載語音助手李想通雪，並於9月初通過OTA更新上線了新的應用商店。

The new Li Xiang Tong Xue is smarter and able to carry out smoother and more natural conversations.

新的李想童雪更聰明，能夠進行更流暢、更自然的對話。

Li Xiang Tong Xue can also take separate commands from four different zones in the car, providing full coverage in-car voice control and creating a more fun and entertaining experience for families.

理想童雪還可以在車內四個不同的區域分別進行指揮，提供全覆蓋的車內語音控制，為家庭打造更有趣的娛樂體驗。

The new application store offers a streamlined interactive design, supporting an application ecosystem similar to that of smartphones, allowing users to upgrade their in-car application without the need of an OTA update.

新的應用商店提供了流線型的交互設計，支持類似於智能手機的應用生態系統，允許用戶升級他們的車載應用，而無需OTA更新。

With these upgrades, our Li ONE continues to evolve and grow.

通過這些升級，我們的 Li ONE 不斷發展壯大。

Meanwhile, we plan to release our NOA upgrade to 2021 Li ONE users in December.

同時，我們計劃在 12 月向 2021 年 Li ONE 用戶發布我們的 NOA 升級。

We are confident that 2021 Li ONE with NOA functions will provide family users with safe, enhanced, convenient and effective ADAS functions.

我們有信心，搭載NOA功能的2021 Li ONE將為家庭用戶提供安全、增強、便捷、有效的ADAS功能。

Following the NOA upgrade through OTA, all 2021 Li ONEs will be equipped with this feature.

繼NOA通過OTA升級後，2021款Li ONE全系搭載此功能。

We are prepared to provide NOA to over 16,000 family users by year end, gaining a dominant leadership in this regard in China.

我們準備在年底前為超過16,000個家庭用戶提供NOA，在這方面取得國內領先地位。

In terms of HPC BEV, we are making good progress developing our technologies to support high power charging.

在 HPC BEV 方面，我們在開發支持高功率充電的技術方面取得了良好進展。

We have completed the 4C battery pack test on vehicles and demonstrated that it can support a driving range of more than 400 kilometers, with only 10 minutes charging.

我們已經完成了4C電池組在車上的測試，證明其可以支持超過400公里的續航里程，充電僅需10分鐘。

With the proceeds raised through our dual primary listing, we will build upon our recent success and deploy R&D capital to drive parallel development in EREVs and BEVs and advancements in smart cockpit and ADAS technologies.

憑藉通過我們的雙重主要上市籌集的資金，我們將在最近的成功的基礎上再接再厲，部署研發資金，以推動 EREV 和 BEV 的並行發展以及智能駕駛艙和 ADAS 技術的進步。

Aiming to introduce more product catering to family users' needs and competing with both ICE vehicles and electric vehicles, we also made headway in expanding our production capacity.

為了推出更多滿足家庭用戶需求的產品，並與燃油車和電動車競爭，我們在擴大產能方面也取得了進展。

In October we officially commenced the construction of our manufacturing base in Beijing.

10月，我們在北京的製造基地正式開工建設。

The manufacturing base is scheduled to be operational in 2023 and will serve as an important production base for our premium BEVs.

該製造基地計劃於 2023 年投入運營，並將成為我們優質 BEV 的重要生產基地。

Now I will turn this call over to our CFO, Mr. Tie Li, to review our financial performance in the third quarter.

現在我將把這個電話轉交給我們的首席財務官李鐵先生，以審查我們第三季度的財務業績。

Thank you, Kevin.

謝謝你，凱文。

Hello, everyone.

大家好。

I will now walk you through some of our financial results for the third quarter of 2021.

我現在將向您介紹我們 2021 年第三季度的一些財務業績。

Due to time constraints, I will address our financial highlights here and encourage you to refer to our earnings press release for further details.

由於時間限制，我將在這裡介紹我們的財務重點，並鼓勵您參閱我們的收益新聞稿以了解更多詳細信息。

Total revenue in the third quarter of 2021 were RMB7.78 billion, or US$1.21 billion, representing an increase of 209.7% from RMB2.51 billion in the third quarter of 2020 and an increase of 54.3% from RMB5.04 billion in the second quarter of this year.

2021年第三季度總收入為人民幣77.8億元，即12.1億美元，較2020年第三季度的人民幣25.1億元增長209.7%，較第二季度的人民幣50.4億元增長54.3%今年四分之一。

This included RMB7.39 billion or US$1.15 billion from vehicle sales, which increased 199.7% year-over-year and 50.6% quarter-over-quarter.

其中包括汽車銷售額 73.9 億元人民幣或 11.5 億美元，同比增長 199.7%，環比增長 50.6%。

The increase in revenue from vehicle sales from the third quarter of 2020 and the second quarter of 2021 was mainly attributable to the increase of vehicle delivery in the third quarter of 2021.

2020年第三季度和2021年第二季度汽車銷售收入增加主要是由於2021年第三季度汽車交付量增加。

Revenues from other sales and services were RMB389.4 million or US$60.4 million in the third quarter, representing an increase of 745.1% year over year and an increase of 187% quarter over quarter.

第三季度其他銷售和服務收入為人民幣3.894億元或6040萬美元，同比增長745.1%，環比增長187%。

The increase in revenue from other sales and services over the third quarter of 2020 and the second quarter of 2021 was mainly attributable to the sales of regulatory credits as well as increased sales of charging stalls, accessories and services in line with higher accumulated vehicle sales.

2020 年第三季度和 2021 年第二季度其他銷售和服務收入的增加主要歸因於監管信貸的銷售以及充電站、配件和服務的銷售增加，與較高的累計車輛銷售一致。

Cost of sales in the third quarter of 2021 was RMB5.96 billion or US$925.5 million, representing an increase of 196.1% year over year and an increase of 45.9% quarter over quarter.

2021 年第三季度的銷售成本為人民幣 59.6 億元或 9.255 億美元，同比增長 196.1%，環比增長 45.9%。

Gross profit in the third quarter of 2021 was RMB1.81 billion or US$281.2 million, growing 264.8% compared with the third quarter of 2020 and 90.2% compared with the second quarter of this year.

2021年第三季度毛利為人民幣18.1億元或2.812億美元，較2020年第三季度增長264.8%，較今年第二季度增長90.2%。

Vehicle margin in the third quarter was 21.1%, compared with 19.8% in the third quarter of 2020 and 18.7% in the second quarter of 2021.

第三季度汽車利潤率為 21.1%，而 2020 年第三季度為 19.8%，2021 年第二季度為 18.7%。

The increase in vehicle margin was primarily driven by higher average selling price attributable to increasing deliveries of 2021 Li ONEs in the third quarter of 2021.

汽車利潤率的增長主要是由於 2021 年第三季度 2021 Li ONE 的交付量增加導致平均售價上漲。

Gross margin in the third quarter was 23.3% compared with 19.8% in the third quarter of 2020 and 18.9% in the second quarter of this year, mainly driven by the increase in vehicle margin.

第三季度的毛利率為 23.3%，而 2020 年第三季度為 19.8%，今年第二季度為 18.9%，主要受汽車利潤率增長的推動。

Operating expenses in the third quarter were RMB1.91 billion or US$296.4 million, representing an increase of 182.2% year over year and an increase of 28.3% quarter over quarter.

第三季度營業費用為人民幣 19.1 億元或 2.964 億美元，同比增長 182.2%，環比增長 28.3%。

R&D expenses in the third quarter of 2021 were RMB888.5 million or US$137.9 million, representing an increase of 165.6% year over year and an increase of 36% quarter over quarter.

2021 年第三季度研發費用為人民幣 8.885 億元或 1.379 億美元，同比增長 165.6%，環比增長 36%。

The increase in R&D expenses over the third quarter of 2020 and the second quarter of this year was primarily attributable to increased employee compensation as a result of growing research and development staff as well as increased costs associated with new product developments.

2020年第三季度和今年第二季度研發費用的增加主要是由於研發人員增加導致員工薪酬增加以及與新產品開發相關的成本增加。

SG&A expenses in the third quarter were RMB1.02 billion or US$158.5 million, representing an increase of 198.5% year over year and an increase of 22.3% quarter over quarter.

第三季度的 SG&A 費用為 10.2 億元人民幣或 1.585 億美元，同比增長 198.5%，環比增長 22.3%。

The increase in SG&A expenses over the third quarter of 2020 was primarily driven by increased marketing and promotion activities as well as increased employee compensation and rental expenses associated with the expansion of the Company's distribution network.

2020 年第三季度 SG&A 費用的增加主要是由於營銷和促銷活動的增加以及與公司分銷網絡擴張相關的員工薪酬和租金費用的增加。

The increase in SG&A expenses over the second quarter of this year was primarily driven by the increased employee compensation and rental expenses associated with the expansion of the Company's distribution network.

今年第二季度 SG&A 費用的增加主要是由於與公司分銷網絡擴張相關的員工薪酬和租金費用增加。

Loss from operations in the third quarter of 2021 was RMB97.8 million or US$15.2 million, representing a decrease of 45.7% year over year and a decrease of 81.8% quarter over quarter.

2021 年第三季度經營虧損為 9780 萬元人民幣或 1520 萬美元，同比下降 45.7%，環比下降 81.8%。

Net loss in the third quarter of 2021 was RMB21.5 million or US$3.3 million, representing a decrease of 79.9% year over year and a decrease of 90.9% quarter over quarter.

2021 年第三季度淨虧損為 2150 萬元人民幣或 330 萬美元，同比下降 79.9%，環比下降 90.9%。

Turning to our balance sheet and the cash flow.

轉向我們的資產負債表和現金流量。

Our cash and cash equivalents, restricted cash, time deposits and short-term investments totaled RMB48.83 billion or US$7.58 billion as of September 30, 2021.

截至 2021 年 9 月 30 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總計人民幣 488.3 億元或 75.8 億美元。

Operating cash flow in the third quarter of 2021 was RMB2.17 billion or US$336.7 million.

2021 年第三季度的經營現金流為人民幣 21.7 億元或 3.367 億美元。

Free cash flow was RMB1.16 billion or US$180.8 million in the third quarter.

第三季度自由現金流為人民幣 11.6 億元或 1.808 億美元。

Now for our business outlook.

現在是我們的業務前景。

For the fourth quarter of 2021, the Company expects the deliveries to be between 30,000 and 32,000 vehicles, representing an increase of 107.4% to 121.2% from the fourth quarter of 2020.

公司預計 2021 年第四季度的交付量將在 30,000 至 32,000 輛之間，較 2020 年第四季度增長 107.4%至 121.2%。

The Company also expects fourth quarter total revenues to be between RMB8.82 billion and RMB9.41 billion or US$1.37 billion and US$1.46 billion, representing an increase of 112.7% to 126.9% from the fourth quarter of 2020.

公司還預計第四季度總收入將在 88.2 億元人民幣至 94.1 億元人民幣或 13.7 億美元至 14.6 億美元之間，較 2020 年第四季度增長 112.7% 至 126.9%。

This business outlook reflects the Company's current and preliminary view on the business situation and the market conditions, in particular the ongoing industry-wide semiconductor shortage, which are all 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，尤其是整個行業持續的半導體短缺，這些都可能發生變化。

I will now turn 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。

Thank you.

謝謝你。

(Operator instructions).

（操作員說明）。

Your first question comes from the line of Fei Fang of Goldman Sachs.

你的第一個問題來自高盛的方飛。

Please ask your question.

請提出你的問題。

Thanks for the opportunity.

謝謝你的機會。

Very impressive quarter.

非常令人印象深刻的季度。

My first question is on your HPC BEV pipeline.

我的第一個問題是關於您的 HPC BEV 管道。

Other than the 4C battery pack test that Shen [Zo] have shared on the call, which is obviously very impressive, what else have you thought about in terms of the key features that differentiate your upcoming product from this competitive market?

除了 Shen [Zo] 在電話會議上分享的 4C 電池組測試，這顯然給人留下了深刻的印象，關於將您即將推出的產品從這個競爭激烈的市場中脫穎而出的關鍵特性，您還有什麼想法？

Also, can you refresh us the timeline for your next product launch?

另外，您能否為我們更新下一次產品發布的時間表？

The second question is about production hurdles.

第二個問題是關於生產障礙。

The management mentioned that, if I heard you correctly, in October there was 14,500 units of intake in terms of the backlog expansion.

管理層提到，如果我沒聽錯的話，10 月份有 14,500 單位的積壓擴張。

If you look at next year, when do you think the monthly production can ramp up towards that level?

如果你看明年，你認為月產量什麼時候可以達到這個水平？

Thank you.

謝謝你。

Fei Fang, can you also repeat your question in Chinese, please?

方飛，你能用中文重複一下你的問題嗎？

Yes, of course.

是的當然。

(Spoken in Chinese).

（用中文講）。

Thank you, Fang Fei.

謝謝你，方飛。

This is Kevin.

這是凱文。

To your first question, for HPC, besides the 4C battery we made good progress.

關於你的第一個問題，對於 HPC，除了 4C 電池我們取得了很好的進展。

On the other hand, we also made a lot of progress on our high-voltage air-conditioning system, also the progress made on the high-power charging infrastructure.

另一方面，我們在高壓空調系統方面也取得了很大進展，在大功率充電基礎設施方面也取得了進展。

In terms of timing, we're still on track to launch our first HPC BEV product in the second half of 2023.

就時間而言，我們仍有望在 2023 年下半年推出我們的首款 HPC BEV 產品。

In terms of our production plan, right now our factory ramp-up already can support roughly 14,000 per month.

就我們的生產計劃而言，目前我們的工廠產能提升已經可以支持每月大約 14,000 個。

Right now, our production is gated by the chip shortage.

目前，我們的生產受到芯片短缺的限制。

Basically, next year we expect our production will ramp up to more than 15,000 right after the Chinese New Year, assuming the chip shortage to a certain extent will be resolved.

基本上，假設芯片短缺在一定程度上得到解決，明年我們預計我們的產量將在農曆新年後立即增加到 15,000 多個。

That's very helpful color.

這是非常有用的顏色。

Thank you.

謝謝你。

Thank you.

謝謝你。

Your next question comes from the line of Tim Hsiao from Morgan Stanley.

你的下一個問題來自摩根士丹利的 Tim Hsiao。

Please ask your question.

請提出你的問題。

Hi, management team.

嗨，管理團隊。

Congratulations on a great result and thanks for taking my questions.

祝賀你取得了很好的成績，並感謝你提出我的問題。

I've got two questions, the first one about the margin, because (inaudible) gross margin expansion (inaudible) tracks much ahead of our previous target of high teens.

我有兩個問題，第一個關於利潤率，因為（聽不清）毛利率擴張（聽不清）遠遠超過我們之前的高青少年目標。

Given the favorable volume scale in upcoming quarter, should we expect the upward trajectory of gross margin to persist into fourth quarter or early next year?

鑑於下一季度有利的銷量規模，我們是否應該預期毛利率的上升趨勢會持續到第四季度或明年初？

Meanwhile, will Li Auto consider leveraging more aggressive promotion to further boost the scale on the back of that gross margin?

同時，理想汽車是否會考慮在毛利率的支撐下，通過更積極的促銷來進一步擴大規模？

(Spoken in Chinese).

（用中文講）。

Hi, Tim, this is Johnny.

嗨，蒂姆，我是約翰尼。

I think the current gross margin is, as we guided before, it was mainly due to the higher average selling price of the new 2021 Li ONE, and also, the cost control effort of our internal team, supply chain team, despite the semiconductor shortage.

我認為目前的毛利率是，正如我們之前的指導，這主要是由於新的 2021 Li ONE 的平均售價較高，以及我們內部團隊、供應鏈團隊的成本控制努力，儘管半導體短缺.

On this year's cost margin, we still want to keep our previous guidance.

關於今年的成本利潤率，我們仍希望保持之前的指導。

For the promotion, currently, the customer has about six to eight weeks of waiting time, so no need to do more promotion to let the customer wait too long, yes.

對於促銷，目前客戶有大約六到八週的等待時間，所以不需要做更多的促銷讓客戶等待太久，是的。

So, currently, at least in the next two to three months, we won't do that.

因此，目前，至少在接下來的兩到三個月內，我們不會這樣做。

Got it.

知道了。

My second question, I basically want to follow up on the wait times, because as you mentioned, the wait times for a new Li ONE are as long as six to eight weeks.

我的第二個問題，我基本上想跟進等待時間，因為正如你所說，新的 Li ONE 的等待時間長達六到八週。

If the Company fails to deliver the vehicle before Chinese New Year, should we worry or be concerned about the rising order cancellation rate early next year, or the new orders intake would fall substantially towards the end of this year, and any precaution the Company can or will take to avoid such order volatility?

如果公司未能在春節前交付車輛，我們是否應該擔心或擔心明年初訂單取消率上升，或者新訂單量將在今年年底大幅下降，公司可以採取哪些預防措施還是會採取措施避免這種訂單波動？

(Spoken in Chinese).

（用中文講）。

Tim, this is Kevin.

蒂姆，這是凱文。

First of all, we don't expect that we'll see any other cancellations due to the prolonged delivery lead time, because before we take the order from our customer, normally, we'll reach an agreement with them in terms of roughly when they can expect the delivery.

首先，我們預計不會因為交貨提前期延長而看到任何其他取消，因為在我們從客戶那裡接訂單之前，通常我們會就大致時間與他們達成協議他們可以期待交貨。

Basically, when they give us the order, they already have the expectation set for the delivery.

基本上，當他們給我們訂單時，他們已經對交貨有了預期。

Great, thank you very much.

太好了，非常感謝。

Your next question comes from the line of Bin Wang of Credit Suisse.

你的下一個問題來自瑞士信貸的王斌。

Please ask your question.

請提出你的問題。

Thank you.

謝謝你。

I've got two questions.

我有兩個問題。

Number one is about the 2022 guidance, volume guidance.

第一是關於 2022 年的指導，數量指導。

The second question is about the battery cost outlook for next year, because (inaudible) battery costs may be increased.

第二個問題是關於明年的電池成本前景，因為（聽不清）電池成本可能會增加。

(Spoken in Chinese).

（用中文講）。

I will take the first question.

我先回答第一個問題。

I think due to the current supply chain shortage, I think it is not the right time to give guidance for the next year.

我認為由於目前供應鏈短缺，我認為現在不是給出明年指導的合適時機。

But you should believe, within the Company, we have a very robust plan for the next year.

但你應該相信，在公司內部，我們對明年有一個非常穩健的計劃。

Maybe Kevin could take the second question.

也許凱文可以回答第二個問題。

Of course, we all know that right now, we all see a big jump in terms of raw material costs for the batteries.

當然，我們都知道，現在我們都看到電池原材料成本大幅上漲。

But so far, within this year, we have no plan to increase the price with (inaudible).

但到目前為止，在今年內，我們沒有計劃提高價格（聽不清）。

Also, I think we are less impacted as we do EREV.

此外，我認為我們在執行 EREV 時受到的影響較小。

They have one less battery pack.

他們少了一個電池組。

Thank you, great.

謝謝，太好了。

Thank you.

謝謝你。

Your next question comes from the line of Ming Hsun Lee of BofA Securities.

你的下一個問題來自美銀證券李明勳的專線。

Please ask your question.

請提出你的問題。

Thank you, management.

謝謝你，管理。

I have two questions.

我有兩個問題。

The first question is regarding the new functions of NOA to be upgraded in December.

第一個問題是關於12月升級的NOA新功能。

Could you elaborate more functions of this new service?

您能否詳細說明這項新服務的更多功能？

Secondly, also, could you elaborate more on the credit sales in the third quarter and the potential contribution in the fourth quarter as well as 2022?

其次，您能否詳細說明第三季度的信貸銷售以及第四季度和 2022 年的潛在貢獻？

Thank you.

謝謝你。

(Spoken in a Chinese).

（用中文說）。

I will take the second question first, this is Johnny.

我先回答第二個問題，我是約翰尼。

I think we have already sold off all the EV credit beginning from last year's sales.

我認為我們已經賣掉了從去年銷售開始的所有電動汽車積分。

Basically, around RMB200 million, with all the EV credit over [70] for last year.

基本上在2億元左右，去年所有的電動汽車信貸都超過[70]。

So [we won't have a lot] more revenue for the fourth quarter.

所以[我們不會有很多]第四季度的收入。

For the first question, I will pass to Kai.

對於第一個問題，我將傳遞給 Kai。

This is Kai speaking.

我是凱。

Regarding your first question, our NOA feature will be released in December, and so far, we have lots of testing, over a million kilometers.

關於你的第一個問題，我們的NOA功能會在12月份發布，目前我們已經進行了大量的測試，超過百萬公里。

Since our 2021 Li ONE model has NOA feature by default, which makes our December OTA update the biggest NOA release in scale in China.

由於我們的 2021 款 Li ONE 默認具有 NOA 功能，這使得我們的 12 月 OTA 更新成為國內規模最大的 NOA 版本。

I think this is probably the biggest difference compared with our peers.

我想這可能是與同行相比最大的不同。

Thank you.

謝謝你。

Thank you.

謝謝你。

(Operator Instructions) Your next question comes from the line of Paul Gong of UBS.

（操作員說明）你的下一個問題來自瑞銀的Paul Gong。

Please ask your question.

請提出你的問題。

Thanks for taking my questions.

感謝您回答我的問題。

Basically, there are two questions.

基本上，有兩個問題。

The first one is regarding your order pipeline.

第一個是關於您的訂單管道。

We have observed that in this rising competition environment, some peers have already accelerated new products launch or adding new models or more models into the pipeline.

我們觀察到，在這個日益激烈的競爭環境下，一些同行已經加快了新產品的推出或增加了新型號或更多型號的產品線。

How does Li Auto consider your action on this?

理想汽車如何看待你們對此的行動？

(Spoken in Chinese).

（用中文講）。

Paul, this is Kevin.

保羅，這是凱文。

In terms of our future product, actually, we will reveal our X01 to the market in the second quarter next year and start to deliver in the third quarter.

就我們未來的產品而言，實際上，我們將在明年第二季度向市場展示我們的X01，並在第三季度開始交付。

More details of the X01 will be introduced at the launch event.

X01的更多細節將在發布會上進行介紹。

Although we see a lot of new products launching to the market, we want to still keep to our own schedule.

儘管我們看到許多新產品投放市場，但我們仍希望保持自己的時間表。

Right now, for example, when our Li ONE delivered the volume reached the level of Highlanders, its [residential] value is also getting close to the Highlander level.

比如現在，我們的理想ONE在交付量達到漢蘭達級別的時候，它的【居住】價值也在接近漢蘭達級別。

This is the benefit of reaching scale by a single model.

這就是通過單一模型達到規模化的好處。

We will choose to sell big volumes with one model rather than very quickly launch a lot of models, but only sell small volumes.

我們會選擇用一種型號大量銷售，而不是很快推出很多型號，但只銷售少量產品。

Our philosophy is slightly different than our peers.

我們的理念與同行略有不同。

Okay.

好的。

My second question is regarding the ADAS going forward.

我的第二個問題是關於 ADAS 的發展。

It seems that now that the different ADAS systems by different car makers are getting a little bit similar to each other.

現在看來，不同汽車製造商的不同 ADAS 系統彼此之間有點相似。

Everyone would adopt LIDAR, everyone would use Nvidia chips with high calculation power.

每個人都會採用 LIDAR，每個人都會使用具有高計算能力的 Nvidia 芯片。

What is the key differentiation in this competition in the ADAS function going forward, for the relatively longer time?

在相對較長的時間裡，本次 ADAS 功能競爭的關鍵區別是什麼？

(Spoken in Chinese).

（用中文講）。

This is Kai speaking.

我是凱。

Regarding this ADAS related topic, we believe ADAS technology eventually, I think, user experience is the most important thing.

關於這個ADAS相關的話題，我們相信ADAS技術最終，我認為，用戶體驗是最重要的。

But in order to achieve automated user experience, as in the previous quarter, we already explained, you need massive data to train your algorithm to make it more intelligent.

但是為了實現自動化的用戶體驗，就像在上一季度，我們已經解釋過，你需要海量數據來訓練你的算法，讓它變得更智能。

As you know, Li Auto, we have the biggest, basically, customer base with NOA feature by default, because we believe safety is very important to every single of our customers.

如你所知，理想汽車，我們擁有最大的，基本上，默認情況下具有 NOA 功能的客戶群，因為我們相信安全對我們的每一位客戶都非常重要。

Therefore, by using the complete fleet, we can speed up our progress of our development to make the user experience reach much, let's say, faster speed than our competitors.

因此，通過使用完整的車隊，我們可以加快我們的發展進程，使用戶體驗達到比我們的競爭對手更快的速度。

Thank you.

謝謝你。

Okay, thank you very much.

好的，非常感謝。

(Operator instructions) Your next question comes from the line of Chang Liu of CICC.

（接線員說明）你的下一個問題來自中金劉暢的專線。

Please ask your question.

請提出你的問題。

Yes, thank you for taking my question, and congrats on the great result.

是的，謝謝你提出我的問題，祝賀你取得了很好的結果。

My first question is regarding cost, because we see that the cost per vehicle rises to RMB232,000 in the third quarter, which is RMB5000 more than the second quarter, and also it's the highest quarter since 2020.

我的第一個問題是關於成本，因為我們看到第三季度每輛車的成本上升到人民幣232,000元，比第二季度增加了人民幣5000元，也是2020年以來最高的一個季度。

Could you share the reason with us, maybe how much is caused by the rising cost of 2021 model, and how much is caused by the rising price of material?

能不能給我們分享一下原因，大概有多少是2021款成本上漲造成的，有多少是材料漲價造成的？

(Spoken in Chinese).

（用中文講）。

This is Johnny.

這是約翰尼。

I think generally, we still (inaudible) to achieve our desired gross margin on the Li ONE.

我認為總的來說，我們仍然（聽不清）在 Li ONE 上實現我們期望的毛利率。

As we mentioned before, it will be finally to achieve a 25% (inaudible) product.

正如我們之前提到的，最終將實現 25%（聽不清）的產品。

But currently, we are under pressure of the supply chain cost pressure, and it's a floor that we expected last year.

但目前，我們面臨供應鏈成本壓力的壓力，這是我們去年預期的底線。

So, it's a mix of our supply chain effort and also those measures from the semiconductor parts.

因此，這是我們供應鏈努力和半導體部件措施的結合。

Also, we have - there's a lot of increase we have some benefit from the manufacturing side, so it's a net-net impact for each quarter.

此外，我們有很多增長，我們從製造方面獲得了一些好處，所以這對每個季度都有淨影響。

(Spoken in Chinese)

（中文口語）

This is Kevin.

這是凱文。

I will translate.

我會翻譯。

Mr. Li Xiang just made some comments on the gross margin.

李想先生剛剛對毛利率做了一些評論。

Our philosophy is a healthy gross margin is very important for us, especially considering how we are a technology company.

我們的理念是健康的毛利率對我們來說非常重要，尤其是考慮到我們是一家科技公司。

If we look at some of the previous generation technology companies, they have a very thin gross margin, therefore they cannot invest enough money on the R&D.

如果我們看一些上一代的科技公司，他們的毛利率非常低，因此他們無法在研發上投入足夠的資金。

Most of their R&D money is spent on the product development, not enough in the technology development.

他們的大部分研發資金都花在了產品開發上，在技術開發上還不夠。

So, our thinking is that we want to keep a very healthy gross margin so that not only we can invest in the product development but also, we will invest more and more on the technology development.

因此，我們的想法是，我們希望保持非常健康的毛利率，這樣我們不僅可以投資於產品開發，而且我們將越來越多地投資於技術開發。

10% on the technology R&D.

10%用於技術研發。

Yes, thank you.

是的，謝謝。

My second question is regarding the expansion of sales network.

我的第二個問題是關於銷售網絡的擴展。

As we see, we already have over 150 stores by the end of third quarter, which was close to our target, which is 200 stores by the end of this year.

正如我們所見，到第三季度末，我們已經擁有超過 150 家門店，這接近我們的目標，即到今年年底達到 200 家門店。

So, could you please update our plan of our sales network expansion for this year and also next year?

那麼，您能否更新我們今年和明年的銷售網絡擴展計劃？

(Spoken in Chinese)

（中文口語）

This is Kevin.

這是凱文。

Right now, we are on track to achieve 200 retail stores by the year end to cover around 150 within China.

目前，我們有望在年底前實現 200 家零售店，覆蓋中國約 150 家。

Next year, our initial plan is to at least double the number of retail stores.

明年，我們的初步計劃是至少將零售店數量增加一倍。

Thank you.

謝謝你。

Your next question comes from the line of Jeff Chung of Citi.

你的下一個問題來自花旗銀行的 Jeff Chung。

Please ask your question.

請提出你的問題。

Hi, (Spoken in Chinese).

嗨，（用中文說）。

So, my first question is in regards to the November order backlog.

所以，我的第一個問題是關於 11 月的訂單積壓。

Would that be 100% higher than the actual potential November shipment, similar to the momentum in October?

這會比 11 月的實際潛在出貨量高出 100%，類似於 10 月的勢頭嗎？

Secondly, is about the monthly production run rate.

其次，是關於每月的生產運行率。

Can the chip supply support around 14,000 to 15,000 units per month in the first quarter next year?

明年第一季度芯片供應能否支撐每月14,000至15,000顆左右？

Thank you.

謝謝你。

Thank you, Jeff.

謝謝你，傑夫。

This is Kevin.

這是凱文。

First question, October delivery was impacted by both the Bosch ESP supply and also the millimeter radar supply.

第一個問題，10 月份的交付受到博世 ESP 供應和毫米雷達供應的影響。

That's why you see that our order intake is around double the number of the final delivery.

這就是為什麼您會看到我們的訂單量大約是最終交貨量的兩倍。

This month, actually the millimeter radar supply shortage has been solved.

這個月，其實毫米雷達供應短缺的問題已經解決了。

The only constraint we have is from Bosch, so therefore the order intake will not be 200% of the delivery.

我們唯一的限制來自博世，因此訂單量不會是交付量的 200%。

Your second question, actually, right now the headlight we have is in the first quarter of next year, we will still continue to be constrained by this Bosch ESP component.

你的第二個問題，實際上，現在我們擁有的頭燈是在明年第一季度，我們仍將繼續受到博世 ESP 組件的限制。

Right now, we are working with Bosch to try to solve as much as possible.

目前，我們正在與博世合作，盡可能解決問題。

Thank you.

謝謝你。

(Spoken in Chinese).

（用中文講）。

Thank you, Jeff.

謝謝你，傑夫。

(Operator Instructions).

（操作員說明）。

Your next question comes from the line of Jia Lou of BOCI Research.

你的下一個問題來自中銀國際研究部賈樓的專線。

Please ask your question.

請提出你的問題。

Hello, management.

你好，管理層。

This is [Lou Jia] from BOCI Research.

我是中銀國際研究部的[婁嘉]。

I have two questions.

我有兩個問題。

One is about the SG&A ratio.

一是關於 SG&A 比率。

Actually, we have seen that this year, SG&A ratio increased compared with last year, so just now, management mentioned that the target for R&D ratio is 10% but I want to know what about SG&A ratio spend level.

實際上，我們看到今年的SG&A ratio 比去年有所增加，所以剛才管理層提到R&D ratio 的目標是10%，但我想知道SG&A ratio 支出水平如何。

(Spoken in Chinese).

（用中文講）。

My second question is about the capacity.

我的第二個問題是關於容量。

We know that we are building the new plant in Beijing, so I want to know that what are our detailed capacity levels in 2023?

我們知道我們正在北京建設新工廠，所以我想知道我們在 2023 年的詳細產能水平是多少？

We know that we have the Changzhou plant for EREV, so any expansion plans for Changzhou plant?

我們知道我們有增程汽車的常州工廠，那麼常州工廠有什麼擴建計劃嗎？

(Spoken in Chinese)

（中文口語）

Thank you, Lou Jia, this is Kevin.

謝謝樓嘉，我是凱文。

First of all, for the SG&A the highlight I can give to you is that for the immediate next step, our plan is to control SG&A to a 10% level and for the longer term, we plan to - especially with the volume growth, we plan to further decrease this percentage.

首先，對於 SG&A，我可以給你的重點是，對於緊接的下一步，我們的計劃是將 SG&A 控制在 10% 的水平，從長遠來看，我們計劃 - 特別是隨著銷量的增長，我們計劃進一步降低這一比例。

So, this year you see a slight increase on the SG&A is because on one hand, the promotion and also especially the aggressive sales network expansion increased our SG&A percentage.

所以，今年你看到 SG&A 略有增加是因為一方面，促銷，尤其是積極的銷售網絡擴張增加了我們的 SG&A 百分比。

In terms of our capacity, by the end of 2023 our plan is to reach a standard capacity of annual capacity 500,000 and with double shift, actually we can do the total capacity near 700,000 units.

產能方面，到2023年底，我們的計劃是達到年產能50萬台的標準產能，加之雙班制，實際上我們總產能可以做到接近70萬台。

That's our plan for 2023.

這是我們 2023 年的計劃。

Thank you.

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.

在我們的電話會議即將結束時，我想將電話轉回公司以作結束語。

Ms. Janet Zhang, please go ahead.

請 Janet Zhang 女士繼續。

Okay.

好的。

Thank you, everyone.

謝謝大家。

That's all for today's call.

這就是今天的電話會議的全部內容。

Hope you have a good one.

希望你有一個好的。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連接。

Thank you.

謝謝你。