理想汽車 (LI) 2021 Q1 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for Li Autos first-quarter 2021 earnings conference call. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Janet Chang, Director of Investor Relations of the company. Please go ahead, Janet.

女士們，先生們，您好。感謝您支持理想汽車 2021 年第一季度財報電話會議。此時，所有參與者都處於只聽模式。今天的電話會議正在錄製中。我現在將把電話轉給你的主持人，公司投資者關係總監 Janet Chang。請繼續，珍妮特。

Thank you, Annie. Good evening and good morning, everyone. Welcome to Li Autos' first-quarter 2021 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，安妮。大家晚上好，早上好。歡迎來到理想汽車 2021 年第一季度財報電話會議。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 President, Mr Kevin Yanan Shen; our CFO, Mr Johnny Tie Li; and our CTO, Mr Kai Wang, to begin with prepared remarks. Our founder and CEO, Mr Xiang Li, will join for the Q&A discussions.

在今天的電話會議上，我們有我們的總裁 Kevin Yanan Shen 先生；我們的首席財務官 Johnny Tie Li 先生；和我們的首席技術官 Kai Wang 先生首先準備好的發言。我們的創始人兼首席執行官李翔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 results expressed today.

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

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

有關風險和不確定性的更多信息包含在公司提交給美國證券交易委員會的文件中。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 Autos' earnings press release and this conference call include discussions of unaudited GAAP financial information, as well as unaudited non-GAAP financial measures. Please refer to Li Autos' press release, which contains 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 財務指標的討論。請參閱理想汽車的新聞稿，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. Please go ahead, Kevin.

有了這個，我現在將把電話轉給我們的總統。請繼續，凱文。

Thank you, Janet. Hello, everyone, and thank you for joining me on our call today. I will review the key highlights of the first quarter, as well as our newly released 2021 Li ONE, which offers best-in-class safety, efficiency, comfort, and intelligence.

謝謝你，珍妮特。大家好，感謝您今天加入我的電話會議。我將回顧第一季度的主要亮點，以及我們新發布的 2021 Li ONE，它提供一流的安全性、效率、舒適性和智能。

In the first quarter, we delivered 12,579 Li ONEs, up 334.4% year-over-year, which brought about total revenue of RMB3.58 billion, 319.8% higher than the first quarter of 2020 and exceeding the top end of our revenue guidance by 11.2%.

第一季度，我們交付了 12,579 輛 Li ONE，同比增長 334.4%，帶來了總收入人民幣 35.8 億元，比 2020 年第一季度增長了 319.8%，超過了我們收入指引的上限11.2%。

In the first quarter our Li ONE was the second best-selling new energy SUV in China, as our compelling product offering and the superior user experience continues to delight customers and enhance brand awareness, while the unwavering support of our direct sales and servicing network underpins our growth.

在第一季度，我們的 Li ONE 是中國第二暢銷的新能源 SUV，因為我們引人注目的產品供應和卓越的用戶體驗繼續取悅客戶並提升品牌知名度，同時我們的直銷和服務網絡的堅定支持鞏固了我們的成長。

We were also the only domestic brand ranked in the top 10 best sellers among all premium SUVs in the first quarter. In April, Li ONE remained the first among all new energy SUVs in China. In the rankings, including ICE cars, BEV, PIEV, and PHEV, Li ONE ranked as the second in the large SUV segment, and the fourth in the premium SUV segment.

我們也是一季度唯一進入所有高端SUV銷量前十的國產品牌。 4月，理想ONE繼續保持國內新能源SUV第一。在包括ICE轎車、BEV、PIEV和PHEV的排名中，理想ONE在大型SUV細分市場排名第二，在豪華SUV細分市場排名第四。

On the profitability side, our gross margin stayed robust at 17.3%, amid our ongoing efforts to enhance investment in R&D, as well as to expand our direct sales and servicing network. Our operating expenses increased by 238.6% year-over-year, and 27.5% quarter-over-quarter.

在盈利方面，我們的毛利率保持在 17.3% 的強勁水平，因為我們不斷努力加強研發投資，並擴大我們的直銷和服務網絡。我們的運營費用同比增長 238.6%，環比增長 27.5%。

Despite the deliberate increase on the expense side, we continued with a disciplined cash flow management strategy. Our free cash flow remained positive at RMB570.2 million. We also raised over USD840 million in net proceeds through our successful convertible senior notes offering in April, strengthening our capital base for future growth as we increased our R&D investment in leading technologies, prepared for new model launches, and geared up for further increase in demand.

儘管在費用方面有意增加，但我們繼續執行嚴格的現金流管理策略。我們的自由現金流保持為正值 5.702 億元人民幣。我們還通過 4 月份成功發行的可轉換優先票據籌集了超過 8.4 億美元的淨收益，隨著我們增加對領先技術的研發投資、為新車型的發布做準備以及為進一步增加的需求做好準備，加強了我們未來增長的資本基礎.

We view our direct sales and servicing network as an integral component of our closed loop system that allows us to iteratively improve product features and add new functions for our users. By accelerating the expansion of our direct sales and servicing network, we remain committed to proactively serving our users, and anticipating future events for our pipeline vehicles.

我們將我們的直銷和服務網絡視為我們閉環系統的一個組成部分，使我們能夠迭代改進產品功能並為我們的用戶添加新功能。通過加速擴大我們的直銷和服務網絡，我們將繼續致力於主動服務我們的用戶，並預測我們管道車輛的未來事件。

As of 30 April 2021, we have 73 retail stores covering 53 cities, and 143 servicing centers and Li Auto-authorized body and paint shops operating in 105 cities. We are on track to reach our year-end target of 200 retail stores.

截至2021年4月30日，我們在53個城市擁有73家零售店，在105個城市擁有143家服務中心和理想汽車授權的車身和噴漆店。我們有望實現 200 家零售店的年終目標。

We have also started reconfiguring our state-of-the-art (inaudible) factory for our new model pipeline, especially the full-size premium SUV based on the next-generation REEV platform to be launched in 2022.

我們還開始為我們的新車型管道重新配置我們最先進的（聽不清）工廠，特別是基於將於 2022 年推出的下一代 REEV 平台的全尺寸高級 SUV。

As a user-driven automotive and technology enterprise, we deeply value the tremendous trust and support our users bestow on us. During the 19th International Automotive Industry Exhibition in April, a large team of Li ONE owners came to our exhibition to volunteer as brand ambassadors, sharing their experience with the vehicle, their passion for it, and their acknowledgement of value Li ONE brings to their families' everyday life.

作為一家以用戶為導向的汽車科技企業，我們非常珍惜用戶給予我們的巨大信任和支持。 4月份的第19屆國際汽車工業展覽會期間，一大批Li ONE車主來到我們的展會，自願擔任品牌大使，分享他們的汽車體驗、對汽車的熱情以及他們對Li ONE為家庭帶來的價值的認可' 日常生活。

One of them, a Li ONE owner for 11 months, said Li Auto is not only a corporate, but also a spiritual partner. It is an integral part of our lives now. We are so grateful to see our mission and vision being recognized and echoed by our users.

其中一位入主11個月的理想ONE車主表示，理想汽車不僅是企業，更是精神夥伴。它現在是我們生活中不可或缺的一部分。我們很高興看到我們的使命和願景得到用戶的認可和響應。

As of 30 April, our cumulative Li ONE deliveries have exceeded 50,000 units. We took only 17 months to reach this milestone from the first delivery of Li ONE in December of 2019, creating the fastest record among all new energy vehicle companies.

截至 4 月 30 日，我們的 Li ONE 累計交付量已超過 50,000 台。從2019年12月鋰ONE的首批交付開始，我們僅用了17個月的時間就達到了這一里程碑，創造了所有新能源汽車公司中最快的記錄。

Our users have driven over 500 million kilometers, with more than 65 million kilometers assisted by our data solutions, at a daily active rate of over 30%. In terms of safety, over 800 million early warnings were triggered, preventing more than 10,000 potential serious accidents while Li ONE's extended-range powertrain and data solutions that are a standard configuration enable a more free and safe travel experience for our users.

我們的用戶已駕駛超過 5 億公里，其中超過 6500 萬公里由我們的數據解決方案輔助，日活躍率超過 30%。安全方面，累計觸發超8億次預警，防範1萬多起重大事故隱患，而Li ONE的增程式動力總成和數據解決方案標配，為用戶帶來更自由、更安全的出行體驗。

Its intelligent cockpit, featuring a comprehensive entertainment system, is another highlight of the vehicle. We pioneered the full-screen interactive in-car system that has been widely praised by our users for the smart space of mobility. It allows the users and each passenger offering private usage and voice-based interactive connections.

智能化座艙、完善的娛樂系統是該車的又一亮點。首創全屏互動車載系統，打造智能出行空間，廣受用戶好評。它允許用戶和每位乘客提供私人使用和基於語音的交互連接。

On average, users spend more than 40 minutes in our Li ONE every day while the car itself is parked. Our in-car karaoke function, which was first released before the Chinese New Year holiday, provided on-demand karaoke for more than 30,000 times during the Chinese New Year holiday, and more than 80,000 times during the May Day holiday, affirming our long-standing dream of creating extension of homes that bring happiness to the entire family.

平均而言，用戶每天在我們的 Li ONE 中停留的時間超過 40 分鐘。春節前首發的車載K歌功能，春節期間點播卡拉OK超過3萬次，五一假期點播超過8萬次，肯定了我們長期的——一直夢想著擴建房屋，為整個家庭帶來幸福。

Li ONE is a proven success, catering to the needs of families in China, and has effectively addressed the current challenge to BEVs in terms of energy replenishment. The success of Li ONE demonstrates our extraordinary product-defining capability, which lays a solid foundation for the development of our future models.

Li ONE 是成功的，迎合了中國家庭的需求，有效解決了當前 BEV 在能量補充方面的挑戰。 Li ONE的成功彰顯了我們非凡的產品定義能力，為我們未來車型的發展奠定了堅實的基礎。

We will continue to develop new NEV models with best-in-class performance. In parallel, we are developing out next-generation extended-range platform, and high-powered charging BEV platforms, both of which will be deployed with our proprietary autonomous driving technologies.

我們將繼續開發具有一流性能的新能源汽車車型。與此同時，我們正在開發下一代增程式平台和高功率充電 BEV 平台，這兩個平台都將採用我們專有的自動駕駛技術進行部署。

We plan to introduce our next-generation REEV platform in our new vehicles planned for 2022 and 2023. With next-generation REEV we aim to support longer-range, higher energy efficiency, and better MHV performance of our REEVs. We are also investing in the research and development of next-generation electric vehicle technologies including high C-rate batteries, high-voltage platforms, and other ultra-fast charging technologies.

我們計劃在 2022 年和 2023 年計劃在我們的新車中引入我們的下一代 REEV 平台。我們的目標是通過下一代 REEV 支持我們的 REEV 的續航里程更長、能效更高和 MHV 性能更好。我們還投資研發下一代電動汽車技術，包括高倍率電池、高壓平台和其他超快充電技術。

Leveraging these technologies, we are developing two platforms, Whale and Shark, for our future HPC BEVs. Starting from 2023, we plan to launch at least two new HPC BEV models each year. Our development progress, increased technologies have been on track and we plan to unveil our milestone achievement in the 2022 Beijing Auto Show. We are very excited to officially release our 2021 Li ONE yesterday.

利用這些技術，我們正在為我們未來的 HPC BEV 開發兩個平台，Whale 和 Shark。從 2023 年開始，我們計劃每年至少推出兩款 HPC BEV 新車型。我們的開發進度和技術提升已走上正軌，我們計劃在 2022 年北京車展上公佈我們的里程碑式成果。我們很高興昨天正式發布我們的 2021 Li ONE。

The new Li ONE features comprehensive upgrades in areas such as the EREV powertrain, ADAS solution, intelligent cockpit, interior design for wide comfort and exterior design for style. Offering user premium features in standard configuration at a flat retail price of RMB338,000. Deliveries of the new Li ONE will commence on June 01, 2021.

全新理想ONE在增程式動力總成、ADAS解決方案、智能座艙、寬闊舒適的內飾設計、時尚的外觀設計等方面進行了全面升級。以 338,000 元人民幣的固定零售價為用戶提供標準配置的高級功能。新的 Li ONE 將於 2021 年 6 月 1 日開始交付。

We believe the new 2021 Li ONE is an outstanding product with advanced technologies and very competitive feature for our target customer group. It has alleviated the extended-range electric technology to a brand-new level. It features an all new 3-in-1 rare drive electric motor offering high energy efficiency as its energy efficiency in (inaudible) model is only 6.05 liters per 100 kilometers based on the NEDC standard operational condition.

我們相信新的 2021 Li ONE 是一款出色的產品，具有先進的技術和對我們的目標客戶群非常有競爭力的特點。它將增程式電動技術緩解到一個全新的水平。它採用全新的三合一稀有驅動電機，提供高能效，因為根據 NEDC 標準運行條件，（聽不清）模型的能效僅為每 100 公里 6.05 升。

Best in class among large sized four-wheel drive SUVs, with software and hardware optimization and its integrated powertrain system, the new Li ONE achieved an AEDC range of 1080 kilometers and WLTC range of 890 kilometers. We are very proud of our R&D team's successful effort to improve the range extended technology in keeping with the Company's core belief that 50 should be standard not optional.

大四驅SUV中的佼佼者，通過軟硬件優化和一體化動力總成系統，全新理想ONE實現AEDC續航1080公里，WLTC續航890公里。我們為我們的研發團隊成功地改進增程技術而感到自豪，這符合公司的核心信念，即 50 應該是標準的，而不是可選的。

The new 2021 Li ONE offers a full-stack self-developed ADAS in a standard configuration. All existing level two ADAS functionalities have been redesigned and optimized in-house by our own R&D team. We also launched the NOA system making the Company the first OEM to implement a full-stack self-developed NOA based on domestic application processors. The 2021 Li ONE is also the first model in the world with NOA capability as a standard configuration.

2021款新銳ONE標配全棧自研ADAS。所有現有的二級 ADAS 功能都由我們自己的研發團隊在內部重新設計和優化。我們還推出了NOA系統，使公司成為第一家實現基於國產應用處理器的全棧自研NOA的OEM。 2021款鋰ONE也是全球首款標配NOA能力的車型。

Li ONE has been well loved by family users for its spacious six seat interior layout. The new Li ONE enhanced its excellence in space, comfort, and intelligence by equipping the front and the second-row seats with lumbar massage function. The leg room for its third row is increased by 41 millimeters, while its trunk can still hold a 28-inch suitcase or a large sized stroller.

理想ONE以寬敞的六座內飾佈局深受家庭用戶喜愛。全新理想ONE通過在前排和二排座椅上配備腰部按摩功能，在空間、舒適、智能等方面進一步提升。第三排的腿部空間增加了41毫米，而後備箱仍然可以容納一個28英寸的行李箱或一個大尺寸的嬰兒車。

It also features a smarter in-car voice assistant, Li Xiang Tong Xue, providing a higher caliber and overall more spacious, more comfortable, and more intelligent space for families. We believe that 2021 new Li ONE is going to be a smart electric vehicle bringing happiness to all families it serves, with a powerful extended-range electric system that enables more pleasant road trips, ADAS in a standard configuration to ensure safety -- safe travel for everyone, and a spacious smart interior layout that enhances comfort for every occupant in the car.

還搭載了更智能的車載語音助手——勵享童雪，為家庭提供更高品質、更寬敞、更舒適、更智能的空間。相信2021款新麗ONE將成為一款為所有家庭帶來幸福的智能電動車，強大的增程式電動系統讓旅途更愜意，標配ADAS確保安全——安全出行適合每個人，寬敞智能的內部佈局可提高車內每位乘員的舒適度。

We believe the new Li ONE will help us gain much higher market share than its predecessor. We have seen a very strong order intake just in the past 24 hours. Taking into consideration of the production ramp and the ongoing global shortage of semiconductors, we expect our delivery for second quarter to be between 14,500 and 15,500.

我們相信新的 Li ONE 將幫助我們獲得比其前身更高的市場份額。就在過去 24 小時內，我們看到訂單量非常強勁。考慮到生產量的增加和全球持續的半導體短缺，我們預計第二季度的交付量將在 14,500 到 15,500 之間。

With that I would like to turn it over to our CTO, Kai, for a closer view of our technology advancements and of the new Li ONE.

我想把它轉交給我們的首席技術官 Kai，以便更深入地了解我們的技術進步和新的 Li ONE。

Since Kai joined as CTO in September last year, we have made numerous breakthroughs in autonomous driving as well as intelligent cockpit technologies. Kai, please go ahead.

自去年9月Kai出任CTO以來，我們在自動駕駛、智能座艙技術等方面取得了多項突破。凱，請繼續。

Thank you Kevin. Hello everyone. Let me provide more details about our 2021 Li ONE ADAS functions and other technical updates. As Kevin mentioned, the full-stack Level 2 plus ADAS functionalities were self-developed by our own R&D team. Beside in-house perception (inaudible) and Level 2 ADAS functionalities.

謝謝凱文。大家好。讓我提供有關我們 2021 Li ONE ADAS 功能和其他技術更新的更多詳細信息。正如 Kevin 所說，全棧 Level 2 加上 ADAS 功能是由我們自己的研發團隊自行開發的。除了內部感知（聽不清）和 2 級 ADAS 功能。

We also launched an NOA system and very proud of our achievement, the effort, and their dedication, and at the level we have reached in such a short time. The 2021 Li ONE comes equipped with two Horizon Robotics Journey 3 AI acceleration processors for automated driving. The two processors are dedicated to driving data, not only at a high efficiency but also with redundancy backup for enhanced safety.

我們還推出了 NOA 系統，我們為我們的成就、努力和他們的奉獻感到自豪，我們在如此短的時間內達到了這個水平。 2021 Li ONE 配備了兩個用於自動駕駛的 Horizon Robotics Journey 3 AI 加速處理器。兩個處理器專用於驅動數據，不僅效率高，而且冗餘備份以增強安全性。

The vehicle is the first production model in the world with an 8-megapixel front-view camera providing 4K definition compared with the mainstream to date the 8-megapixel camera has a refractory visual range of 200 meters, wider lateral detection range, and a stronger perception ability on ramp and lateral curve information. In short, it (inaudible) more clearly, more widely, and is therefore safer.

該車是全球首款搭載4K清晰度8像素前視攝像頭的量產車型，相比目前主流的8像素攝像頭具有200米的折射視距、更廣的側向探測範圍、更強的抗干擾能力。對匝道和橫向曲線信息的感知能力。簡而言之，它（聽不清）更清楚、更廣泛，因此也更安全。

In addition, the 2021 Li ONE has 5 fifth-generation millimeter-wave radars made by Bosch that have a wider detection range, higher resolution, higher accuracy, and improved range of recognition. It has a detection range of 110 meters and 150 degree field of view allowing 360-degree overall coverage without any blind spots in system level.

此外，2021款Li ONE搭載5顆博世第五代毫米波雷達，探測範圍更廣、分辨率更高、精度更高，識別範圍也有所提升。它具有 110 米的檢測範圍和 150 度視野，允許 360 度全面覆蓋，沒有任何系統級盲點。

Supported by range sensors and a redundant capable hardware along with full-stack in-house software the 2021 Li ONE can recognize traffic lights, traffic cones, road curbs, and other complicated objects. It supports a more efficient NOA feature for on and off ramp, automatic adaptive acceleration, and lane change on certain limited access roads. It also supports Fully Automated Parking Assist feature known as FAPA, which is a vision based automatic parking function.

在範圍傳感器和冗餘硬件以及全棧內部軟件的支持下，2021 Li ONE 可以識別交通信號燈、交通錐、路緣和其他復雜物體。它支持更高效的 NOA 功能，用於進出匝道、自動自適應加速和某些受限道路上的車道變換。它還支持稱為 FAPA 的全自動泊車輔助功能，這是一種基於視覺的自動泊車功能。

We are confident the 2021 new Li ONE delivers a safer, easier, and more comfortable driving experience, exemplifying our deeply held core value that safety should be standard not optional feature. As we roll out high-definition maps in cooperation with AutoNavi the NOA will be made available to 2021 Li ONE users through OTA uptake starting in the third quarter this year and will gradually cover more roads and areas in China.

我們相信 2021 年新款 Li ONE 將提供更安全、更輕鬆、更舒適的駕駛體驗，體現我們根深蒂固的核心價值觀，即安全應該是標準配置，而不是可選功能。隨著我們與高德地圖的合作推出高清地圖，NOA將從今年第三季度開始通過OTA方式提供給2021 Li ONE用戶，並逐步覆蓋中國更多的道路和區域。

In addition to ADAS functions discussed above, the 2021 Li ONE will also provide users with a more intelligent space including a smarter in-car voice interaction system. Looking ahead, we will continue executing the parallel development of new [RUV] and BEV further strengthening our ability and developing cutting edge technologies.

除了上面討論的ADAS功能，2021款理想ONE還將為用戶提供更智能的空間，包括更智能的車內語音交互系統。展望未來，我們將繼續執行新 [RUV] 和 BEV 的並行開發，進一步加強我們的能力和開發尖端技術。

Now I will turn this call over to our CFO, Mr. Tie Lie to review our financial performance in the first quarter. Please go ahead.

現在我將把這個電話轉交給我們的首席財務官鐵烈先生，以審查我們第一季度的財務業績。請繼續。

Thank you Kai. Hello everyone. I will now go over some of our financial results for the first quarter of 2021. To be mindful of the length of this call I will address our financial highlights here and encourage you to refer to our earnings press release which is posted online for additional details.

謝謝凱。大家好。我現在將回顧一下我們 2021 年第一季度的一些財務業績。為了注意本次電話會議的長度，我將在這裡介紹我們的財務重點，並鼓勵您參考我們在線發布的收益新聞稿以了解更多詳細信息.

Total revenue in the first quarter of 2021 were RMB3.58 billion or USD545.7 million representing an increase of 319.8% from RMB841.7 million (sic - RMB851.7 million) in the first quarter of 2020. This included RMB3.46 billion or USD528.7 million of vehicle sales in the first quarter of 2021 representing an increase of 311.8% from the first quarter of 2020.

2021 年第一季度的總收入為人民幣 35.8 億元或 5.457 億美元，較 2020 年第一季度的人民幣 8.417 億元（原文如此 - 人民幣 8.517 億元）增長 319.8%。其中包括人民幣 34.6 億元2021 年第一季度汽車銷售額為 5.287 億美元，比 2020 年第一季度增長 311.8%。

The increase in vehicle sales was mainly attributable to the increase in vehicle deliveries with the continual expansion of our sales network. On a quarter-over-quarter basis total revenues and vehicle sales decreased 13.8% and 14.6% respectively primarily due to the seasonal factors related to the Chinese New Year holidays, as well as the localized COVID-19 outbreaks in Northern China in February 2021.

汽車銷量的增長主要是由於隨著我們銷售網絡的不斷擴張，汽車交付量有所增加。與上一季度相比，總收入和汽車銷量分別下降 13.8% 和 14.6%，這主要是由於與農曆新年假期相關的季節性因素，以及 2021 年 2 月中國北方局部爆發的 COVID-19。

Revenues from other sales and services were RMB111.5 million or USD17.0 million in the first quarter of 2021 comparing with RMB10.6 million in the first quarter of 2020 and RMB89.2 million in the fourth quarter of 2020. The increase in revenue from other sales and services over the first and fourth quarters of 2020 was mainly attributable to the increased sales of charging stalls, accessories, and services in line with higher accumulated vehicle sales.

2021 年第一季度其他銷售和服務收入為人民幣 1.115 億元或 1700 萬美元，而 2020 年第一季度為人民幣 1060 萬元，2020 年第四季度為人民幣 8920 萬元。收入增加2020 年第一季度和第四季度的其他銷售和服務收入主要歸因於充電站、配件和服務的銷售額增加，與較高的累計汽車銷量相符。

Cost of sales in the first quarter 2021 was RMB2.96 billion or USD451.6 million representing an increase of 277.6% year-over-year and a decrease of 13.5% quarter-over-quarter. Vehicle margin in the first quarter of 2021 was 15.9% comparing with 8.4% in the same quarter of 2020 and 17.1% in the fourth quarter of 2020. The increase in vehicle margins over the first quarter of 2020 was primarily attributable to lower material cost and a lower unit manufacturing overhead cost, derived from the increased production volume.

2021 年第一季度的銷售成本為人民幣 29.6 億元或 4.516 億美元，同比增長 277.6%，環比下降 13.5%。 2021 年第一季度的汽車利潤率為 15.9%，而 2020 年同期為 8.4%，2020 年第四季度為 17.1%。汽車利潤率較 2020 年第一季度增加的主要原因是較低的材料成本和較低的單位製造費用成本，源自增加的產量。

The slightly decrease in vehicle margin from the first quarter of 2020 from the fourth quarter of 2020 was primarily due to the lower average selling price cost by promotion activities launched in the first quarter of 2021, partially offset by the decreased material cost.

2020年第一季度整車利潤率較2020年第四季度略有下降，主要是由於2021年第一季度推出的促銷活動導致平均售價成本下降，部分被材料成本下降所抵消。

Gross margin in the first quarter 2021 was 17.3%, compared to 8% in the first quarter of 2020, and 17.5% in the fourth quarter of 2020, which was mainly attributable to the change of vehicle margin.

2021年第一季度毛利率為17.3%，2020年第一季度為8%，2020年第四季度為17.5%，主要是整車毛利率變化所致。

Now, operating expenses in the first quarter 2021 were RMB1.02 billion, or USD156.4 million, representing an increase of 238.6% year-over-year, and an increase of 27.5% quarter-over-quarter.

現在，2021 年第一季度的營業費用為人民幣 10.2 億元，即 1.564 億美元，同比增長 238.6%，環比增長 27.5%。

Research and development expenses in the first quarter of 2021 were RMB514.5 million, or USD78.5 million, representing an increase of 171.2% in the first quarter of 2020, and an increase of 37.5% in the fourth quarter of 2020.

2021年第一季度研發費用為人民幣5.145億元，折合7850萬美元，較2020年第一季度增長171.2%，較2020年第四季度增長37.5%。

Excluding share-based compensating expenses, non-GAAP research and development expenses, were RMB397.9 million, or USD60.7 million, representing an increase of 109.8% year-over-year and an increase of 7.8% quarter-over-quarter.

不計入股權激勵費用，非美國通用會計準則研發費用為人民幣 3.979 億元或 6070 萬美元，同比增長 109.8%，環比增長 7.8%。

The increase in research and development expenses over the first and fourth quarter of 2020 was primarily attributable to, first, increased share-based compensation expenses, derived from incremental share options granted, with higher fair value in January 2021, while no share-based compensation expenses were recognized for stock options with service conditions under performance conditions related to our IPO in the first quarter of 2020.

2020年一季度和四季度研發費用增加的主要原因是，一是股權激勵費用增加，源於2021年1月授予的增量股票期權公允價值較高，而無股權激勵在 2020 年第一季度與我們的 IPO 相關的業績條件下，為具有服務條件的股票期權確認了費用。

Second, the increased R&D activities for the Company's next vehicle models. Third, increased headcount.

第二，公司下一款車型的研發活動增加。第三，增加人員。

Selling, general administrative expenses in the first quarter of 2021 were RMB509.9 million, or USD77.8 million, representing an increase of 352% in the first quarter of 2020 and an increase of 18.8% in the fourth quarter of 2020.

2021 年第一季度銷售、一般管理費用為人民幣 5.099 億元，即 7780 萬美元，較 2020 年第一季度增長 352%，較 2020 年第四季度增長 18.8%。

Excluding share-based compensation expenses, non-GAAP selling, general and administrative expenses were RMB449.8 million, or USD68.7 million, representing an increase of 298.8% year-over-year and an increase of 5.4% quarter-over-quarter. The increase in selling, general administrative expenses over the first and fourth quarter of 2020 was primarily driven by increased marketing and promotion activities, increased headcount and rental expenses, with expansion of the Company's sales network and increased share-based compensation expenses.

不計股權激勵費用，非美國通用會計準則銷售、一般和管理費用為人民幣 4.498 億元，即 6,870 萬美元，同比增長 298.8%，環比增長 5.4% . 2020 年第一季度和第四季度銷售、一般管理費用的增加主要是由於營銷和促銷活動的增加、員工人數和租金費用的增加、公司銷售網絡的擴張以及股權激勵費用的增加。

Losses from operations in the first quarter of 2020 -- 2021 was RMB407.7 million, or USD62.2 million, representing an increase of 74.1% in the first quarter of 2020 and an increase of 416.7% in the fourth quarter of 2020.

2020-2021年第一季度經營虧損為人民幣4.077億元，即6220萬美元，較2020年第一季度增長74.1%，較2020年第四季度增長416.7%。

Excluding share-based compensation expenses, our non-GAAP loss from operations was RMB224.8 million, or USD34.3 million, representing a decrease of 4% year-over-year and an increase of 216.2% quarter-over-quarter. Net loss was RMB360 million, or USD54.9 million in the first quarter of 2021. Comparing with RMB77.1 million net loss in the first quarter of 2020 and RMB107.5 million net income in the fourth quarter of 2020.

剔除股權激勵費用後，我們的非美國通用會計準則運營虧損為人民幣 2.248 億元，即 3,430 萬美元，同比下降 4%，環比增長 216.2%。 2021 年第一季度淨虧損為人民幣 3.6 億元，即 5490 萬美元。相比之下，2020 年第一季度淨虧損為人民幣 7710 萬元，2020 年第四季度淨利潤為人民幣 1.075 億元。

Non-GAAP net loss was RMB177 million, or USD27 million in the first quarter of 2021, compared with RMB253.4 million net loss in the first quarter of 2020 and RMB115.4 million net income in the fourth quarter of 2020.

2021 年第一季度非美國通用會計準則淨虧損為人民幣 1.77 億元，即 2700 萬美元，而 2020 年第一季度淨虧損為人民幣 2.534 億元，2020 年第四季度淨利潤為人民幣 1.154 億元。

Turning to our balance sheet and cash flow. Our cash and cash equivalent, restricted cash, cash deposits and the short-term investments total RMB30.36 billion or USD4.63 billion as of March 31, 2021.

轉向我們的資產負債表和現金流量。截至 2021 年 3 月 31 日，我們的現金及現金等價物、受限制現金、現金存款和短期投資總額為 303.6 億元人民幣或 46.3 億美元。

Operating cash flow in the first quarter of 2021 was RMB926.3 million, or USD141.4 million. Free cash flow was RMB570.2 million, or USD87 million in the first quarter of 2021.

2021 年第一季度的經營現金流為人民幣 9.263 億元，或 1.414 億美元。 2021 年第一季度自由現金流為人民幣 5.702 億元，合 8700 萬美元。

Now, our business outlook. For second quarter of 2021 the Company expects deliveries to be between 14,500 and 15,500 vehicles, representing an increase of 119.6% to 134.7% from the second quarter of 2020. The Company also expects second quarter total revenues to be between RMB3.99 billion and RMB2. -- oh, RMB4.27 billion, or between USD609.0 million and USD 641.7 million, representing an increase of 104.6% to 119% from the second quarter of 2020.

現在，我們的業務前景。公司預計 2021 年第二季度交付量將在 14,500 至 15,500 輛之間，比 2020 年第二季度增長 119.6% 至 134.7%。公司還預計第二季度總收入將在人民幣 39.9 億元至人民幣 2 之間。 . -- 哦，42.7 億元人民幣，即 6.09 億美元至 6.417 億美元，比 2020 年第二季度增長 104.6% 至 119%。

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

我現在將把電話轉給接線員，進入問答環節。謝謝你。

Thank you. (Operator Instructions). For the benefit of all participants on today's call, please limit yourselves to two questions, and if you have additional questions, you can re-enter the queue. If you're going to ask a question in Chinese, please follow with English translation.

謝謝你。 （操作員說明）。為了今天電話會議的所有參與者的利益，請將自己限制在兩個問題上，如果您有其他問題，可以重新進入隊列。如果你要用中文提問，請跟著英文翻譯。

Our first question comes from the line of Tim Hsiao of Morgan Stanley.

我們的第一個問題來自摩根士丹利的Tim Hsiao。

Hi, management team, thanks for taking my questions. I've got two questions. The first question, could you please update your factory capacity at the moment? Will the output of new Li ONE model suffer from greater impact for the component bottleneck? For example, like chip and chip shortage and the battery timers or any other key components? In that case, when do we expect the output of new Li ONE could get back to a more normal level?

嗨，管理團隊，感謝您提出我的問題。我有兩個問題。第一個問題，請問您現在可以更新您的工廠產能嗎？新Li ONE車型的產量會不會因為零部件瓶頸受到更大的影響？例如，像芯片和芯片短缺以及電池定時器或任何其他關鍵部件？那麼，新鋰ONE的產量什麼時候才能恢復到正常水平呢？

My second question is, how is the gross margin of the new Li ONE compared to the previous version? Will the 10,000 price hike be more than enough to offset the cost increase from the feature upgrade and raw material inflation? And the (inaudible) the second quarter gross margin.

我的第二個問題是，與舊版本相比，新的Li ONE的毛利率如何？ 10,000 的價格上漲是否足以抵消功能升級和原材料價格上漲帶來的成本增加？以及（聽不清）第二季度的毛利率。

(Spoken in Chinese)

（中文口語）

Thank you, Tim. This is Kevin. I will answer the first question.

謝謝你，蒂姆。這是凱文。我會回答第一個問題。

Of course, as we all know, we are -- the whole industry is suffering from the shortage of the semiconductor. Right now, in terms of capacity, our chargeable battery, with two shifts already are ready, we can do more than 500 per day, but of course, due to the ramp of the new Li ONE and also some of the timing issue of the chips, well, the volume cannot achieve that high. We expect, starting from September, we expect our monthly production will be more than 10,000. And I will ask Johnny to answer the gross margin.

當然，眾所周知，我們 - 整個行業都在遭受半導體短缺的困擾。現在容量上，我們的充電電池，兩班倒的已經做好了，一天可以做500多個，但是當然，由於新的Li ONE的爬坡，還有一些時間問題芯片，好吧，體積不能達到那麼高。我們預計，從 9 月開始，我們預計我們的月產量將超過 10,000 個。我會請約翰尼回答毛利率。

Hi, Tim. For the gross margin, in the long run, it's the (inaudible) is remain at the same level for the current Li ONE, with some additional hardware, as you may know, for the (inaudible) parts, and also some saving from some traditional parts, like the rear motor, and then that.

嗨，蒂姆。對於毛利率，從長遠來看，它的（聽不清）與當前的 Li ONE 保持相同水平，如您所知，一些額外的硬件用於（聽不清）部分，並且還有一些節省傳統零件，例如後置電機，然後是。

For the second quarter, I think it will be a match of April, May, with some promotion and the current Li ONE, and also with one month (inaudible) with RMB10,000 sales (inaudible). So it will be a mix.

第二季度，我覺得是4月、5月的搭配，有一些促銷和現在的李ONE，還有一個月（聽不清）10000元的銷量（聽不清）。所以這將是一個混合。

Got it, thank you. Thanks for the answers.

收到了。謝謝。感謝您的回答。

Thank you, our next question is from the line of Fei Fang of Goldman Sachs. The line is open, please go ahead.

謝謝，我們下一個問題來自高盛的方飛。電話已開通，請繼續。

Thanks, management, for the opportunity, I have two questions. First about your store number, so you reported 52 stores by the end of 2020 and then you reported 73 stores by April and then you guided 200 stores by year end.

謝謝管理層，給我這個機會，我有兩個問題。首先關於你的店鋪數量，所以你到 2020 年底報告了 52 家商店，然後到 4 月份報告了 73 家商店，然後到年底你指導了 200 家商店。

So what that means is you have added 21 stores in the first four months of the year, but you plan to add 130 stores in the next eight months. Is that the right way to look at it? And also 130 stores in eight months is not something that we've seen before, so is there any execution risk with regard to that?

那麼這意味著您在今年前四個月增加了 21 家商店，但您計劃在接下來的八個月內增加 130 家商店。這是看待它的正確方式嗎？而且八個月開130家店不是我們以前見過的，那麼這有執行風險嗎？

Second is about pricing. Now, you've raised prices in the facelift which is obviously very different from some of your competitors, or other even manufacturers who have lowered prices over time. Does that mean that Li Auto plans to move further into the premium segment in the four product cycles? Thanks.

其次是關於定價。現在，你們在整容中提高了價格，這顯然與你們的一些競爭對手非常不同，甚至與那些隨著時間的推移而降低價格的其他製造商也大不相同。這是否意味著理想汽車計劃在四大產品週期中進一步向高端細分市場進軍？謝謝。

(Spoken in Chinese)

（中文口語）

Okay, thank you, Fang Fei, I will answer your question. So as of today, right now, we have 75 stores and in the first quarter, because of the impact of spring festival and some areas have COVID-19 outbreaks, the pace of the opening new stores was a bit slower than our expectation.

好的，謝謝方飛，我來回答你的問題。所以截至今天，我們有 75 家門店，在第一季度，由於春節的影響和一些地區爆發了 COVID-19，新店開張的速度比我們預期的要慢一些。

However, we have been making very good progress in our site selection. In fact, right now we have another 50 stores in our pipeline actually under construction. So therefore, for the whole year, the 200 retail store target remains unchanged. We are just a little bit behind the trap, we think we'll catch up in the second half.

但是，我們在選址方面取得了很好的進展。事實上，現在我們還有另外 50 家正在建設中的商店。因此，全年 200 家零售店的目標保持不變。我們只是落後了一點點，我們認為我們會在下半場趕上。

And for the pricing strategy, the methodology we took is to price our product based on its value to the customer. Li ONE is very, very competitive and delivered a lot of value and with more feature functions we added into the new Li ONE. We think just RMB10,000 higher price is very fair and the new Li ONE will be even more competitive than its predecessor.

對於定價策略，我們採用的方法是根據產品對客戶的價值來定價我們的產品。 Li ONE 非常非常有競爭力，提供了很多價值，我們在新的 Li ONE 中添加了更多特色功能。我們認為僅高出人民幣 10,000 元的價格是非常公平的，新的 Li ONE 將比其前身更具競爭力。

Thanks for the comment.

感謝您的評論。

Thank you. The next question is from the line of Ming Hsun Lee of BofA Securities. Your line is open, please go ahead.

謝謝你。下一個問題來自美國銀行證券的Ming Hsun Lee。您的線路已開通，請繼續。

Hi, good evening, management team, I also have two questions. The first question is regarding your new supplier of your processor, which is Horizon. So we know that Horizon should be able to give you a better exposure to the data you collect. Could you give us more details regarding your strategy to achieve this with Horizon (inaudible) and that in the longer term you will continue to use Horizon, or you will also consider some other foreign brand, this is my first question.

嗨，晚上好，管理團隊，我還有兩個問題。第一個問題是關於您的處理器的新供應商，即 Horizon。所以我們知道 Horizon 應該能夠讓您更好地了解您收集的數據。您能否向我們提供更多關於您使用 Horizon（聽不清）實現這一目標的策略的詳細信息，並且從長遠來看您將繼續使用 Horizon，或者您還會考慮其他一些外國品牌，這是我的第一個問題。

The second question is actually regarding a detailed(inaudible) of your autonomous driving, currently you already give very detailed information about (inaudible) to be launched later this year. Could you give us some highlights for 2022 or 2023, what kind of new autonomous driving function you will provide in the next two years?

第二個問題實際上是關於你的自動駕駛的詳細（聽不清），目前你已經提供了非常詳細的信息（聽不清）將於今年晚些時候推出。能否給我們介紹一下2022年或2023年的一些亮點，未來兩年你們會提供什麼樣的自動駕駛新功能？

(Spoken in Chinese)

（中文口語）

Thank you, Mr Lee. Kai, do you want to take these two questions? Thank you.

謝謝你，李先生。凱，你要不要回答這兩個問題？謝謝你。

Yes, okay, thank you. So basically we have five criteria for SoC selection. So basically back in 2021 we chose our Journey 3 from Horizon Robotics as our SoC supplier. So the first one is the performance, of course, where we define the feature we want to achieve and the performance of the (inaudible) must meet the requirement.

是的，好的，謝謝。所以基本上我們有五個選擇 SoC 的標準。所以基本上早在 2021 年，我們就選擇了地平線的 Journey 3 作為我們的 SoC 供應商。所以第一個是性能，當然，我們定義了我們想要實現的功能，並且（聽不清）的性能必須滿足要求。

And from that perspective, Journey 3 is enough for the target. The target is level 2-plus functions, for example, (inaudible).

而從這個角度來看，征途 3 足以達到目標。例如，目標是 2 級以上的功能（聽不清）。

And then the second criteria is openness and flexibility. So for example, our previous generation we used mobile [eye] so it is not very flexible for our own intelligent developments. So from that perspective those are (inaudible) they are more open and we use our own (inaudible) there.

然後第二個標準是開放性和靈活性。例如，我們上一代使用移動 [eye]，因此它對於我們自己的智能開發來說不是很靈活。因此，從這個角度來看，它們（聽不清）更加開放，我們在那裡使用我們自己的（聽不清）。

So the third criteria is about the support. We need very solid support from our supplier so that we can keep up high speed, let's say, development and also the phase of iteration. So Journey 3 is from Horizon Robotics, their headquarter is also in Beijing, so from that perspective they can provide the best service and core support locally so the interaction between departments is much more convenient.

所以第三個標準是關於支持的。我們需要來自供應商的非常堅實的支持，這樣我們才能保持高速，比方說，開發和迭代階段。所以征途3是來自地平線，他們的總部也在北京，所以從這個角度來說，他們可以在本地提供最好的服務和核心支持，部門之間的互動也更加方便。

The fourth criteria is regarding the SoC timing. So the chips actually -- every year there will be new chips available from the market, so from the timeline we SoC our 2021 Li ONE. So Journey 3 is better.

第四個標準與 SoC 時序有關。所以芯片實際上 - 每年都會有新的芯片從市場上出售，所以從時間軸來看，我們的 SoC 是我們的 2021 Li ONE。所以征途3比較好。

So the fees (inaudible) our criteria is the price. So the price, so Journey 3 can offer capable performance. At the same time, the price is affordable. So basically overall, these five criteria eventually will come (inaudible) Journey 3.

所以費用（聽不清）我們的標準是價格。這樣的價格，讓征途3能夠提供幹練的性能。同時，價格實惠。所以基本上總的來說，這五個標準最終會出現（聽不清）Journey 3。

Regarding the roadmap of our autonomy, we already mentioned in the previous description that we will right now just right away launch our in-house (inaudible) be able to (inaudible) functions with our own perception, own execution planning, execution software. And then the fourth quarter we will provide NoA because we need some time for that adaptation of HD map covering more roads and areas in China.

關於我們自主的路線圖，我們在之前的描述中已經提到，我們將立即啟動我們的內部（聽不清）能夠（聽不清）具有我們自己的感知、自己的執行計劃、執行軟件的功能。然後第四季度我們將提供NoA，因為我們需要一些時間來適應覆蓋中國更多道路和區域的高精地圖。

And then the next year they already introduced, let's say, the next generation platform on the basis of Orange and that one will provide even much more perception power and even richer to support more features. So hardware-wise we can get up to a level 4, but software-wise, of course, we need to step-by-step raise more functional (inaudible) that's the plan in general. Thank you.

然後明年他們已經推出了，比方說，基於 Orange 的下一代平台，該平台將提供更強大的感知能力，甚至更豐富以支持更多功能。因此，在硬件方面我們可以達到 4 級，但在軟件方面，當然，我們需要逐步提高更多功能（聽不清），這就是總體計劃。謝謝你。

Thank you. The next question is from the line of Bing Wang of Credit Suisse. Please go ahead.

謝謝你。下一個問題來自瑞士信貸的王兵。請繼續。

Thank you for taking my question. The first one goes to the price per dollar (inaudible) payments but they actually raised the price by RMB10,000. Can I actually try to elaborate that, is RMB10,000 just the price for the (inaudible)? Can I have an explanation about that? That's number one.

謝謝你提出我的問題。第一個是每美元（聽不清）付款的價格，但他們實際上將價格提高了人民幣 10,000 元。我真的可以嘗試詳細說明一下，10,000 元人民幣只是（聽不清）的價格嗎？我可以解釋一下嗎？這是第一。

And number two actually I found one company called (inaudible) naturally has been involved in your R&D at level 3 (inaudible) so basically is the same product as the Li ONE 2021 version. Is this company (inaudible) in-house design and actually what's the (inaudible) in this project?

第二，實際上我發現一家名為（聽不清）的公司自然參與了你們 3 級（聽不清）的研發，所以基本上是與 Li ONE 2021 版本相同的產品。這家公司（聽不清）是內部設計嗎？實際上這個項目中的（聽不清）是什麼？

(Spoken in Chinese)

（中文口語）

Okay, thank you, Wang Bin, I will take the first question. Actually the RMB10,000 is not specifically for early or for any new feature of the new Li ONE. As I just explained, this is overall our pricing strategy and Mr Li Xiang already stated that the safety is standard, not optional. Therefore, we make all the new ADAS solution a standard function without any charge to our customer.

好的，謝謝王斌，我來回答第一個問題。其實這10000元並不是專為新立ONE的早期或任何新功能而設的。正如我剛才解釋的，這是我們的整體定價策略，李翔先生已經說過安全是標準的，而不是可選的。因此，我們將所有新的 ADAS 解決方案作為標準功能，不向我們的客戶收取任何費用。

The second question, I will ask Kai to comment. Kai.

第二個問題，請Kai評論。啟。

Yes, so regarding the role of (inaudible) is our (inaudible) tier 1 provider. So (inaudible) is mainly about product (inaudible) and also design consultation together with our team and then the final production.

是的，關於（聽不清）的角色是我們的（聽不清）一級提供商。所以（聽不清）主要是關於產品（聽不清），還與我們的團隊一起進行設計諮詢，然後是最終生產。

So as we already mentioned, actually for our ADAS team we have round about 300 people right now covering those hardware and software designs. So software-wise we already explained, it's a (inaudible) in-house software development, including the low level software like (inaudible) and also the middleware and all application software and close to (inaudible) environment completely (inaudible) actually we also design hardware parts to ensure that we have the complete transparency of the design.

因此，正如我們已經提到的，實際上對於我們的 ADAS 團隊，我們現在有大約 300 人負責這些硬件和軟件設計。所以在軟件方面我們已經解釋過，這是一個（聽不清）內部軟件開發，包括像（聽不清）這樣的低級軟件以及中間件和所有應用軟件以及完全接近（聽不清）環境（聽不清）實際上我們也設計硬件部分以確保我們具有設計的完全透明性。

So that we can react if there is something wrong with our design during the lifecycle of the product. So we are also responsible for the complete hardware design, simulation and design implementation. So including those electronics and the mechanics. (Inaudible) of (inaudible) drive. They will participate with the hardware design. Because from efficiency point of view we like leveraged the outsource resources to ensure we keep that in a very high level.

這樣，如果我們的設計在產品生命週期中出現問題，我們就可以做出反應。所以我們也負責完整的硬件設計、仿真和設計實現。所以包括那些電子和機械。 （聽不清）（聽不清）驅動器。他們將參與硬件設計。因為從效率的角度來看，我們喜歡利用外包資源來確保我們將其保持在很高的水平。

So overall they will do the coordination, the product validation and then the production which we on purpose we don't want to touch because that will lower the overall efficiency. Also that's the part actually in tier 1 could have a better efficiency compared with (inaudible). Thank you.

所以總的來說，他們將進行協調、產品驗證，然後是我們故意不想觸及的生產，因為這會降低整體效率。與（聽不清）相比，這也是實際上在第 1 層中的部分可能具有更高的效率。謝謝你。

Okay, thank you so much.

好的，非常感謝。

Thank you. Next question is from the line of Paul Gong of UBS. Line is open, please go ahead.

謝謝你。下一個問題來自瑞銀的Paul Gong。線路已開通，請繼續。

Yes, hi, thanks for taking my question. Two questions. The first one is do you have switch from mobile IQ4 to this Journey 3 and you are going to switch to (inaudible) next year. How do you see the data format of all these three systems? Can you freely use the data connected in the previous system and to use now and further develop for the future either function or is it (inaudible) transition.

是的，嗨，謝謝你提出我的問題。兩個問題。第一個是您是否已從移動 IQ4 切換到此 Journey 3 並且您將在明年切換到（聽不清）。您如何看待這三個系統的數據格式？您可以自由使用以前系統中連接的數據，現在使用並為將來進一步開發功能還是（聽不清）過渡。

The second question is regarding your BEV plan for (inaudible). You mentioned the Whale and the Shark platform. How do you think after seeing the Shanghai Auto Show with so many new BEV models. Will this change (inaudible) of your timeline, your roadmap? Would you accelerate the process a little bit in view in view of the rising competition in the market? Thank you.

第二個問題是關於您的 BEV 計劃（聽不清）。你提到了鯨魚和鯊魚平台。看完上海車展這麼多BEV新車型，你怎麼看？這會改變（聽不清）你的時間表，你的路線圖嗎？鑑於市場競爭日益激烈，您能否加快這一進程？謝謝你。

(Spoken in Chinese)

（中文口語）

Okay, maybe I take the first question. So regarding different platforms. So actually that's the reason why we would like to do the in-house design. So when you have control, the algorithm developments there are cores of algorithms. Basically we utilize the same (inaudible). So when we're developing something and then you can really base on different hardware and make a kind of a [wrap] of software. Then you can support different containers basically. That's our idea behind.

好吧，也許我回答第一個問題。所以關於不同的平台。所以實際上這就是我們想要進行內部設計的原因。因此，當您擁有控制權時，算法的開發就會成為算法的核心。基本上我們使用相同的（聽不清）。因此，當我們開發某些東西時，您可以真正基於不同的硬件並製作一種[包裝]軟件。那麼基本上就可以支持不同的容器了。這就是我們的想法。

From compatibility point of view there are really lots of common area you can re-use. Also on top of that. So you can see the current developments we do have age part and also the cloud part. The cloud part we utilize mass computing power for training. So both Journey 3 platform and (inaudible) platform we have the same [OM] solution behind for training.

從兼容性的角度來看，確實有很多公共區域可以重複使用。也是最重要的。所以你可以看到我們目前的發展確實有年齡部分和雲部分。雲部分我們利用海量計算能力進行訓練。因此，Journey 3 平台和（聽不清）平台背後都有相同的 [OM] 解決方案用於培訓。

So you can see right away there are already a bunch of common stuff you can share. So then we don't have any problem. Of course if you support more then you need let's say more effort for adaptation between platforms. So we will lower that of course then there is smart selection as we mentioned. That's the reason why we have a very strict criteria for associated action. Thank you.

所以您可以立即看到已經有很多可以共享的常用內容。那麼我們沒有任何問題。當然，如果您支持更多，那麼您需要為平台之間的適配付出更多努力。所以我們當然會降低它，然後我們提到了智能選擇。這就是為什麼我們對相關行動有非常嚴格的標準的原因。謝謝你。

Yes, Paul, this is Kevin let me take your second question. Of course we all see a lot of new car models launched in Shanghai Auto Show. However, as we reiterated many times that we think a charging solution is the key competitive niche advantage we need to gain to compete in the BEV arena. Therefore we will stay on our track to develop our Shark and Whale platforms with ultrafast charging capability.

是的，保羅，我是凱文，我來回答你的第二個問題。當然我們都看到上海車展上推出了很多新車型。然而，正如我們多次重申的那樣，我們認為充電解決方案是我們在 BEV 領域競爭所需的關鍵競爭優勢。因此，我們將堅持不懈地開發具有超快充電能力的 Shark 和 Whale 平台。

We think that's the key to winning the future competition. Yes, so therefore we will not alter our plan. Yes, we will stay very focused. Of course with more resources we of course want to accelerate the R&D process for sure. But right now the outlook is still in 2023, yes.

我們認為這是贏得未來競爭的關鍵。是的，因此我們不會改變我們的計劃。是的，我們會非常專注。當然，有了更多資源，我們當然希望加快研發過程。但現在前景仍然在 2023 年，是的。

Thank you very much, yes.

非常感謝，是的。

Thank you. 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. Miss Janet Chang please go ahead.

謝謝你。當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。請 Janet Chang 小姐繼續。

Thank you one again for joining with us today. If you have further questions please feel free to contact Li Auto's Investor Relations Team. And that's all for today. Thank you and have a good one.

再次感謝您今天加入我們。如果您還有其他問題，請隨時聯繫理想汽車的投資者關係團隊。這就是今天的全部內容。謝謝你，祝你玩得開心。