理想汽車 (LI) 2020 Q4 法說會逐字稿

Hello, ladies and gentlemen, thank you for standing by for Li Auto's Fourth Quarter and Full Year 2020 Earnings conference call. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. I will now hand the call over to your host Janet Chung, Director of Investor Relations of the Company. Please go ahead, Janet.

女士們，先生們，您好，感謝您耐心等待理想汽車2020年四季度及全年財報電話會議。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。我現在將電話轉交給您的主持人 Janet Chung，該公司投資者關係總監。請繼續，珍妮特。

Thank you Amy. Good evening and good morning, everyone. Welcome to Li Auto's fourth quarter and full year 2020 earnings conference call. The Company's financial and operating results were published in the press release earlier today and were posted on the Company's IR website. On today's call we have our President, Mr. Kevin Yanan Shen, our CFO Mr. Johnny Tie Lie, and our CTO, Mr. Kai Wang. To begin with prepared remarks. Our founder and CEO Mr. Xiang Li will join for the Q&A discussion. 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. 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 filings of the Company with the US Securities and Exchange Commission.

謝謝艾米。大家晚上好，早上好。歡迎來到理想汽車 2020 年第四季度及全年財報電話會議。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。今天的電話會議有我們的總裁沉亞南先生、我們的首席財務官約翰尼·鐵烈先生和我們的首席技術官王凱先生。從準備好的發言開始。我們的創始人兼首席執行官李翔先生將參加問答討論。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。前瞻性陳述涉及固有的風險和不確定性。因此，公司的實際結果可能與今天表達的觀點存在重大差異。有關風險和不確定性的更多信息包含在公司向美國證券交易委員會提交的某些文件中。

The Company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that Li Auto's earnings press release and this conference call includes discussions of unaudited GAAP financial information, as well as unaudited non-GAAP financial measures. Please refer to Li Auto's press release which contains a reconciliation of the unaudited non-GAAP measures to compare with GAAP measures. With that I will now turn the call over to our President, please go ahead, Kevin.

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。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 GAAP 指標的對賬。有了這個，我現在將把電話轉給我們的總統，請繼續，凱文。

Thank you, Janet. Hello, everyone, and thank you for joining our call today. The fourth quarter capped off a year of significant growth and robust financial results for our Company. Our team's strong execution yielded record fourth quarter results that comfortable beat our outlook. We delivered 14,464 Li ONEs in the fourth quarter, up 67% quarter over quarter. Our robust deliveries drove revenue growth of 65.2% compared with the third quarter, reaching RMB4.15 billion.

謝謝你，珍妮特。大家好，感謝您今天加入我們的電話會議。第四季度為我們公司一年的顯著增長和穩健的財務業績畫上了句號。我們團隊的強大執行力產生了創紀錄的第四季度業績，輕鬆超過了我們的預期。我們在第四季度交付了 14,464 輛 Li ONE，環比增長 67%。與第三季度相比，我們強勁的交付推動收入增長 65.2%，達到人民幣 41.5 億元。

With 32,624 vehicles delivered to our users in 2020, Li ONE was the best-selling new energy SUV of the year in China, a testament to its highly competitive product features. This outstanding performance was fueled by strong demand driven by our distinctive product offering and the superior user experience, and made possible by our focused product strategy, and our ability to rapidly scale up our consistent and high-quality manufacturing process to meet demand.

2020年，理想ONE累計交付用戶32,624輛，成為年度中國最暢銷新能源SUV，產品特性極具競爭力。這一出色的業績是由我們獨特的產品供應和卓越的用戶體驗所驅動的強勁需求推動的，並得益於我們專注的產品戰略，以及我們迅速擴大一致和高質量的製造流程以滿足需求的能力。

We believe that evolving consumer preferences for smart electric vehicles together with advancing technologies will continue to be tailwinds for our long-term sales growth. Taking into consideration of seasonality and the impact of COVID-19 in Northern China, we expect our first quarter deliveries to be between 10,500 to 11,500 units.

我們相信，不斷變化的消費者對智能電動汽車的偏好以及先進的技術將繼續推動我們的長期銷售增長。考慮到季節性和 COVID-19 在中國北方的影響，我們預計第一季度的交付量將在 10,500 至 11,500 台之間。

On the profitability side our gross margin remains robust at 17.5% in the fourth quarter reflecting our manufacturing efficiency and the disciplined cost management approach.

在盈利能力方面，我們第四季度的毛利率保持在 17.5% 的強勁水平，這反映了我們的製造效率和嚴格的成本管理方法。

Most notably we achieved a record high operating cash flow of RMB1.82 billion, nearly doubled from the third quarter, and raised US$1.53 billion in proceeds through our successful full-on offering setting a solid financial foundation as we increase investment for autonomous driving technology and a BEV platform to drive our future growth.

最值得注意的是，我們實現了創紀錄的 18.2 億元人民幣的經營現金流，比第三季度翻了近一倍，並通過成功的全面發售籌集了 15.3 億美元的收益，為我們增加對自動駕駛技術的投資奠定了堅實的財務基礎以及推動我們未來發展的 BEV 平台。

We remain committed to proactively serving our users by anticipating their needs and as a response to the increased demand for our vehicles we have steadily expanded our direct sales and servicing network. As of January 31, 2021, we had 60 retail stores covering 47 cities and 121 servicing centers and also authorized body and the paint shops operating in 89 cities. We will continue to broaden and deepen city coverage to address increasing demand from prospective users across China and prepare ourselves for the new model launches in 2022 and beyond.

我們仍然致力於通過預測用戶的需求來主動服務我們的用戶，並且為了響應對我們車輛不斷增長的需求，我們穩步擴大了我們的直接銷售和服務網絡。截至 2021 年 1 月 31 日，我們在 47 個城市擁有 60 家零售店和 121 個服務中心，還在 89 個城市經營授權機構和油漆店。我們將繼續擴大和深化城市覆蓋範圍，以滿足中國潛在用戶日益增長的需求，並為 2022 年及以後的新車型發布做好準備。

At the same time, we strive to continue strengthening our digital systems to integrate and connect all the stages of the sales and servicing processes to maintain a high level of sales efficiency.

同時，我們努力繼續加強我們的數字系統，以整合和連接銷售和服務流程的所有階段，以保持高水平的銷售效率。

As a user driven automotive and technology company, we always prioritize our users' comfort and safety. We are very proud of the outstanding safety rating result of our Li ONE achieved. Li ONE was awarded the highest safety rating in three out of the four China Insurance Automotive Safety Index evaluation categories in January, five-star rating in China Automobile Health Index Assessment and a five-star China New Car Assessment Program safety rating in February, make it the only large premium SUV model that has received top scores in all three index programs.

作為一家以用戶為導向的汽車和技術公司，我們始終將用戶的舒適度和安全放在首位。我們為 Li ONE 取得的出色安全評級結果感到非常自豪。 Li ONE於1月在中國保險汽車安全指數評估的四個類別中的三個類別中獲得最高安全評級，在中國汽車健康指數評估中獲得五星級評級，並於二月獲得中國新車評估計劃安全評級五星級，使唯一在三項指標項目中均獲得最高分的大型豪華SUV車型。

We aim to make Li ONE best in class and believe that iteration is necessary for groundbreaking innovation. We constantly collect feedback and the suggestions from our users through our ATT and also our customer service centers to provide updates through FOTA. By doing so, not only we delivered more value-added products and services but also nurture a long-term relationship with our users, which will be very helpful to enhance the value in the long run.

我們的目標是讓 Li ONE 成為同類產品中的佼佼者，並相信迭代是突破性創新所必需的。我們不斷通過我們的 ATT 和我們的客戶服務中心收集用戶的反饋和建議，以通過 FOTA 提供更新。通過這樣做，我們不僅提供了更多增值的產品和服務，而且與我們的用戶建立了長期的關係，這對於長期提升價值非常有幫助。

Since the start of the deliveries in December 2019, we have released 13 major vehicle over-the-air upgrades on-demand - on December 26, 2020, our delivered software version 2.0 through OTA updates bringing 12 new features, such as front vehicle smart alert, adaptive cruise speed, dashboard camera playback, multiple-user settings, and also updated co-pilot entertainment system, plus another 12 enhanced functions including new interfaces for the dashboard, touch screen control panel, and also updated applications such as Navigation Map.

自 2019 年 12 月開始交付以來，我們已按需發布了 13 項主要車輛無線升級 - 2020 年 12 月 26 日，我們通過 OTA 更新交付的軟件 2.0 版本帶來了 12 項新功能，例如前車智能警報、自適應巡航速度、儀錶盤攝像頭回放、多用戶設置、更新的副駕駛娛樂系統，以及另外12項增強功能，包括儀錶盤的新界面、觸摸屏控制面板，以及導航地圖等應用程序的更新。

As of February 18, we have users in 328 cities across China with cumulative mileage exceeding 330 million kilometers. 97.1% of users expressed their satisfaction with Li ONE in the survey we conducted in January 2021 and they were willing to recommend the Li ONE to their friends.

截至2月18日，我們在全國328個城市擁有用戶，累計里程超過3.3億公里。我們在 2021 年 1 月進行的調查中，97.1% 的用戶對 Li ONE 表示滿意，他們願意將 Li ONE 推薦給他們的朋友。

As always, we are grateful for the consistent support and trust from our users.

一如既往，我們感謝用戶一貫的支持和信任。

Looking forward, we will accelerate the development of second-generation extended range platform, and also the high-voltage BEV technologies in order to enrich our model mix to cater to the needs of a wider range of users, while adhering to our brand positioning of premium smart electric vehicles. All of these efforts are aiming at maximizing the value proposition for our users.

展望未來，我們將加快開發第二代增程式平台，以及高壓BEV技術，以豐富我們的車型組合以滿足更廣泛用戶的需求，同時堅持我們的品牌定位優質智能電動汽車。所有這些努力都旨在為我們的用戶最大化價值主張。

We are planning on the reconfiguration of our state-of-the-art Changzhou factory for our new model pipeline, especially the full-size premium SUV based on brand new architecture to be launched in 2022. With the establishment of our Shanghai R&D Centre we are also expediting our R&D effort across the board.

我們正計劃對我們最先進的常州工廠進行重新配置，以用於我們的新車型管線，特別是將於 2022 年推出的基於全新架構的全尺寸豪華 SUV。隨著我們上海研發中心的成立，我們也在全面加快我們的研發工作。

Having successfully completed the first phase of our strategic cycle and entered the second stage this year, we will continue racing ahead towards our mission - creating homes on the move that bring happiness to the entire family.

今年順利完成第一階段的戰略週期並進入第二階段，我們將繼續朝著我們的使命前進——創造移動的家園，為全家帶來幸福。

With that I would like to turn it over to our CTO, Mr. Kai Wang for a closer review of our R&D efforts. Please go ahead, Kai.

因此，我想將其轉交給我們的首席技術官 Kai Wang 先生，以便更仔細地審查我們的研發工作。請繼續，凱。

Kai Wang: Thank you, Kevin. Hello everyone. Let me share with you the progress we have made on R&D since the last earnings call. We are on course with our brand-new architecture for the full sized premium electric SUV to be launched in 2022. It features a scalable and upgradable ECU and sensor set, enabling more use cases via FOTA.

王凱：謝謝你，凱文。大家好。讓我與您分享自上次財報電話會議以來我們在研發方面取得的進展。我們正在為將於 2022 年推出的全尺寸高級電動 SUV 採用全新架構。它具有可擴展和可升級的 ECU 和傳感器組，可通過 FOTA 實現更多用例。

In particular, we are collaborating closely with NVIDIA and Desay SV to equip our next model with the powerful NVIDIA Orin SoC chip set. With scalable setup, we could expand our vehicle's overall computing power up to 2000 TOPS. Along with our complete in-house algorithm and closed loop data environment, we can progressively reach level 4 autonomous driving. The project goes well, and everything is on track.

特別是，我們正在與 NVIDIA 和德賽西威密切合作，為我們的下一個模型配備功能強大的 NVIDIA Orin SoC 芯片組。通過可擴展設置，我們可以將車輛的整體計算能力擴展到 2000 TOPS。加上我們完整的內部算法和閉環數據環境，我們可以逐步達到 4 級自動駕駛。項目進展順利，一切步入正軌。

One of the priorities for me as CTO is to attract brilliant, scientists, researchers and engineers to join our team, to development of cutting-edge, smart, electrical vehicle technologies, as we aim to bring more changing innovations to people's everyday lives.

作為首席技術官，我的首要任務之一是吸引傑出的科學家、研究人員和工程師加入我們的團隊，共同開發尖端的智能電動汽車技術，因為我們的目標是為人們的日常生活帶來更多改變的創新。

We are excited to kick off 2021 with announcement of our new R&D center in Shanghai, dedicated to the development of cutting-edge electric vehicle technologies, such as high voltage platforms and ultra-fast charging technologies. This R&D center will have end-to-end development capabilities for new models.

我們很高興在 2021 年宣佈在上海設立新的研發中心，致力於開發尖端的電動汽車技術，例如高壓平台和超快速充電技術。該研發中心將具備新車型的端到端開發能力。

We chose Shanghai as the location, due to the abundant availability of top-notch talents with expertise in smart vehicles in and around the city, alongside a rich supply chain.

我們選擇上海作為地點，是因為上海市內及周邊擁有豐富的智能汽車專業知識的頂尖人才，以及豐富的供應鏈。

Its establishment will not only accelerate our new model launches and development of smart vehicle technologies, but also our recruiting efforts. Recruiting at R&D center has already started. We will ultimately build a team of over 2000 staffs. In the meanwhile, we are establishing collaborations with top universities and research institutes in China. More updates will be released in future.

它的成立不僅會加速我們的新車型發布和智能汽車技術的開發，還會加快我們的招聘工作。研發中心的招聘工作已經開始。我們最終將建立一支超過2000名員工的團隊。同時，我們正在與中國頂尖大學和研究機構建立合作關係。更多更新將在未來發布。

Now, I will turn this call over to our CFO, Mr. Tie Li, to review our financial performance in the fourth 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，以審查我們第四季度的財務業績。

Thank you, Kai. Hello, everyone. I will now go over some of our financial results for the fourth quarter of 2020. To be mindful of the length of this call, I will address financial highlights here and encourage you to refer to our earnings press release, which is posted online, for additional details. Please note that the currencies mentioned below are all RMB.

謝謝你，凱。大家好。我現在將回顧一下我們 2020 年第四季度的一些財務業績。為了注意本次電話會議的長度，我將在這裡討論財務重點，並鼓勵您參考我們在線發布的收益新聞稿，額外細節。請注意，以下貨幣均為人民幣。

Total revenue in the fourth quarter of 2020 were RMB4.15 billion, representing an increase of 65.2%, from RMB2.51 billion in the third quarter of 2020. This included 4.06 billion of vehicle sales in the fourth quarter of 2020, representing an increase of 64.6% from the third quarter.

2020年第四季度總收入為人民幣41.5億元，較2020年第三季度的人民幣25.1億元增長65.2%。其中包括2020年第四季度汽車銷量40.6億元，同比增長比第三季度增長 64.6%。

The increase in vehicle sales was mainly due to 67% increase in vehicle deliveries to 14,464 vehicles in the fourth quarter of 2020, from 8,660 vehicles in the third quarter of 2020.

汽車銷量的增長主要是由於汽車交付量從 2020 年第三季度的 8,660 輛增加到 2020 年第四季度的 14,464 輛，增長了 67%。

Revenues from other sales and services were RMB89.2 million in the fourth quarter of 2020, representing an increase of 93.5% from the third quarter. The increase in revenues from other sales and services was in line with the increased vehicle sales and the increased number of vehicles using our services.

2020年第四季度其他銷售及服務收入為人民幣8,920萬元，較第三季度增長93.5%。其他銷售和服務收入的增加與汽車銷量的增加和使用我們服務的車輛數量的增加是一致的。

Cost of sales in the fourth quarter was RMB3.42 billion, representing an increase of 70.1% from the third quarter.

第四季度銷售成本為人民幣34.2億元，較第三季度增長70.1%。

Vehicle margin in the fourth quarter was 17.1%, comparing to 19.8% in the third quarter of 2020. The decrease was primarily due to the decreased one-time rebate from suppliers, compare with third quarter of 2020.

第四季度的汽車利潤率為 17.1%，而 2020 年第三季度為 19.8%。下降的主要原因是與 2020 年第三季度相比，供應商的一次性回扣減少。

Gross margin in the fourth quarter was 17.5%, compared to 19.8% in the third quarter, which was mainly driven by the changes, the change in vehicle margin.

第四季度的毛利率為 17.5%，而第三季度為 19.8%，這主要是受汽車利潤率變化的影響。

Total operating expenses in the fourth quarter were RMB803.5 million, representing an increase of 18.7% from RMB676.7 million in the third quarter of 2020.

第四季度的總運營費用為人民幣 8.035 億元，較 2020 年第三季度的人民幣 6.767 億元增長 18.7%。

Research and development expenses in the fourth quarter of 2020 were RMB374.2 million, representing an increase of 11.9%, from RMB334.5 million in the third quarter of 2020. Excluding share-based compensation expenses, non-GAAP research and development expenses were RMB369.1 million, representing a quarter-over-quarter increase of 32.4%. The increase in research and development expenses was primarily attributable to increased research and development activities for the Company's next vehicle model and increased headcount, offset by the significant decreased in share-based compensation expenses over the third quarter. In this period, higher cumulative share-based compensation expenses were recognized related to the stock option granted to employees with service conditions and a performance condition, related to the IPO.

2020 年第四季度研發費用為人民幣 3.742 億元，較 2020 年第三季度的人民幣 3.345 億元增長 11.9%。剔除股權激勵費用，非美國通用會計準則研發費用為人民幣3.691億元，環比增長32.4%。研發費用的增加主要是由於公司下一款車型的研發活動增加和員工人數增加，被第三季度股權激勵費用的大幅減少所抵消。在此期間，與首次公開募股相關的具有服務條件和績效條件的員工獲得的股票期權相關的累計股權補償費用較高。

Selling, general and administrative expenses in the fourth quarter of 2020 were RMB429.3 million, excluding share-based compensation expenses. Non-GAAP selling general and administrative expenses were RMB426.8 million, representing an increase of 61.5%. The increase in selling, general and administrative expenses was primarily driven by the increased marketing and promotional activities and the increased headcount, offset by the significant decrease in share-based compensation expenses over the third quarter of 2020, in which period higher cumulative share-based compensation expenses were recognized related to the stock options granted to employees with service conditions and the performance conditions related to the IPO.

2020 年第四季度的銷售、一般和管理費用為人民幣 4.293 億元，不包括股權激勵費用。非美國通用會計準則銷售一般和管理費用為人民幣 4.268 億元，增長 61.5%。銷售、一般和管理費用的增加主要是由於營銷和促銷活動的增加以及員工人數的增加，被 2020 年第三季度股權激勵費用的大幅減少所抵消，在此期間累計股權激勵費用較高與授予具有服務條件的員工的股票期權以及與 IPO 相關的業績條件相關的補償費用。

Losses from operations in the fourth quarter of 2020 was RMB78.9 million, decreasing by 56.2%, compared to a loss of RMB180 million in the third quarter. Excluding share-based compensation expenses, the non-GAAP loss from operations was RMB71.1 million, increasing by 58% from the third quarter of 2020.

2020年第四季度經營虧損為人民幣7890萬元，較第三季度虧損人民幣1.8億元下降56.2%。剔除股權激勵費用後，非美國通用會計準則運營虧損為人民幣 7,110 萬元，較 2020 年第三季度增長 58%。

Net income was RMB107.5 million in the fourth quarter of 2020, compared to RMB106.9 million net loss in the third quarter of 2020. Non-GAAP net income was RMB115.4 million in the fourth quarter, representing an increase of 621.3% from RMB16 million in the third quarter of 2020.

2020 年第四季度淨收入為人民幣 1.075 億元，而 2020 年第三季度為淨虧損人民幣 1.069 億元。第四季度非美國通用會計準則淨收入為人民幣 1.154 億元，增長 621.3% 2020 年第三季度為 1600 萬元人民幣。

Now, turning to our balance sheet and cash flow. Our cash and cash equivalents, restricted cash and deposits and short-term investments totaled RMB29.87 billion as of 31 December 2020.

現在，轉向我們的資產負債表和現金流量。截至 2020 年 12 月 31 日，我們的現金及現金等價物、受限制的現金和存款以及短期投資總計人民幣 298.7 億元。

Operating cash flow in the fourth quarter of 2020 was RMB1.82 billion, nearly doubled from RMB929.8 million in the third quarter of 2020.

2020 年第四季度的經營現金流為人民幣 18.2 億元，較 2020 年第三季度的人民幣 9.298 億元增長近一倍。

Free cash flow was RMB1.6 billion in the fourth quarter of 2020, representing an increase of 113.2% from RMB749.9 million in the third quarter of 2020. As of 31 December 2020, we had a total of 4,181 employees.

2020 年第四季度自由現金流為人民幣 16 億元，較 2020 年第三季度的人民幣 7.499 億元增長 113.2%。截至 2020 年 12 月 31 日，我們共有 4,181 名員工。

For more of our 2020 full year financial results, please refer to our earnings press release for further details.

有關我們 2020 年全年財務業績的更多信息，請參閱我們的收益新聞稿以了解更多詳情。

And now, for our business outlook. For the first quarter of 2021, the Company expects deliveries to be between 10,500 and 11,500 vehicles, representing an increase of 262.6% to [297.1%] (corrected by company after the call) from the first quarter of 2020. The Company also expects the first quarter's total revenues to be between RMB2.94 billion to RMB3.22 billion, representing an increase of 245.9%, to 278.8% from the first quarter of 2020.

現在，對於我們的業務前景。對於 2021 年第一季度，公司預計交付量將在 10,500 至 11,500 輛之間，較 2020 年第一季度增長 262.6% 至 [297.1%]（電話會議後公司更正）。公司還預計第一季度總收入在人民幣29.4億元至人民幣32.2億元之間，較2020年第一季度增長245.9%至278.8%。

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

我現在將把電話轉給接線員，以方便我們的問答環節。謝謝你。

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. And for your questions, please press star and the number one and wait for your name to be announced. To cancel your request, please the pound or hash key. And 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 it up with English translation.

謝謝你。女士們，先生們，我們現在開始問答環節。對於您的問題，請按星號和數字1，然後等待您的名字被宣布。要取消您的請求，請按井號或哈希鍵。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，如果您還有其他問題，可以重新進入隊列。如果您要用中文提問，請隨後提供英文翻譯。

Once again, for your questions, please press star and the number one and wait for your name to be announced.

再次，對於您的問題，請按星號和數字1，等待公佈您的姓名。

First question comes from the line of Fei Fang, of Goldman Sachs. Please go ahead, the line is open.

第一個問題來自高盛的方飛。請繼續，電話已開通。

[Spoken in Chinese] Okay, just translate for myself very quickly, my first question is about the sequential decline of the first quarter volume items, can management elaborate on the decline? What drives this on the demand or supply side?

[中文口語] 好吧，我自己翻譯一下，我的第一個問題是關於第一季度銷量項目的環比下降，管理層能否詳細說明下降情況？是什麼在需求或供應方面推動了這一點？

The second question is about the recent car plate policy from the Shanghai Government. The city recently announced it would no longer provide green plate to plug-in vehicles. This effect in 2023. Can you talk about your view on this and your projected impact on former performance? Thank you.

第二個問題是關於近期上海市政府出台的汽車牌照政策。該市最近宣布將不再為插電式車輛提供綠色車牌。 2023 年的這種影響。您能談談您對此的看法以及您對之前業績的預計影響嗎？謝謝你。

Thank you, Fang Fei. This is Kevin. I'll answer your questions.

謝謝你，方飛。這是凱文。我會回答你的問題。

Your first question, we think a modest month-over-month decline does not mean that our sales are encountering a bottleneck. Single-model sales of over 5000 per month, still demonstrate that our Li ONE is very competitive. Deliveries in January 2021 were 5379 and in December was 6126. On average for these two months were 5753. These numbers are in line with our prior growth expectations.

你的第一個問題，我們認為環比小幅下降並不意味著我們的銷售遇到了瓶頸。單款月銷量過5000，還是說明我們的麗ONE很有競爭力的。 2021 年 1 月的交付量為 5379，12 月的交付量為 6126。這兩個月的平均交付量為 5753。這些數字符合我們之前的增長預期。

We think that during the Chinese Spring Festival in February and also the upcoming Chinese Lantern Festival, our sales will be affected by the seasonality, for sure. In addition, considering the impact of COVID-19 in Northern China, we are putting out a relatively conservative delivery guidance for the first quarter of 2021. We are confident that with the expansion of our retail store and the effective control of the pandemic, our sales will gradually increase.

我們認為在 2 月的中國春節期間以及即將到來的中國元宵節期間，我們的銷售肯定會受到季節性影響。此外，考慮到 COVID-19 在華北地區的影響，我們對 2021 年第一季度的交付指引相對保守。我們有信心，隨著我們零售店的擴張和大流行的有效控制，我們的銷量會逐漸增加。

About your second question, about Shanghai, the policy change in Shanghai was within our expectations. With the implementation time, that is even later than we expected. Also, we believe the details of this policy and the implementation may change in the coming two years. We keep a constant communication with Shanghai local authorities.

關於你的第二個問題，關於上海，上海的政策變化也在我們的預料之中。隨著實施時間，這甚至比我們預期的要晚。此外，我們認為該政策的細節和實施可能會在未來兩年發生變化。我們與上海地方當局保持著持續的溝通。

The implementation of this policy in 2023 will actually encourage users to purchase EV and PHEV and also EREVs in advance. We expect that the demand for EREV and PHEV will impact reach peak in 2022.

2023年這個政策的實施實際上會鼓勵用戶提前購買EV和PHEV以及EREV。我們預計 EREV 和 PHEV 的需求將在 2022 年達到峰值。

On the other side, Shanghai only accounts for 9% of our total deliveries in 2020 and this policy change will have a relatively small impact on our Company as a whole. Cities without license restrictions account for more than 55% of our accumulated deliveries by the end of 2022, so the distribution is very healthy.

另一方面，上海僅占我們 2020 年總交付量的 9%，這一政策變化對我們公司整體的影響相對較小。到 2022 年底，不受牌照限制的城市占我們累計交付量的 55% 以上，因此分佈非常健康。

We are also accelerating the R&D of our BEV platform and the launch of the BEV model, which is expected in 2023. Thank you, that's all my answers.

我們也在加速BEV平台的研發和BEV車型的推出，預計2023年推出。謝謝，我的回答就這些了。

Kevin, that's very helpful, thank you very much for that.

凱文，這很有幫助，非常感謝你。

Thank you, our next question is from the line of Tim Hsiao of Morgan Stanley. Your line is open, please go ahead.

謝謝，我們的下一個問題來自摩根士丹利的 Tim Hsiao。您的線路已開通，請繼續。

[Spoken in foreign language]. My first question please share the official guidance regarding the numbers of stores you plan to open in 2021 with the gorgeous sales network to keep the great operating efficiency and could average monthly sales per store still keep 100 units.

[用外語說]。我的第一個問題請分享關於您計劃在2021年開設的商店數量的官方指導，以及華麗的銷售網絡以保持良好的運營效率，並且平均每家商店的月銷售額仍能保持100家。

My second question is about the competitive landscape, we saw a lot of tech companies had been to EV market, like Baidu, Apple, Xiaomi. So what kind of impact or disruption do you think these new entrants will bring to the EV and the autonomous driver market and what would be the implication to Li Auto? Thank you.

我的第二個問題是關於競爭格局，我們看到很多科技公司都進入了電動汽車市場，比如百度、蘋果、小米。那麼您認為這些新進入者會給電動汽車和自動駕駛市場帶來什麼樣的影響或顛覆，對理想汽車又意味著什麼？謝謝你。

Thanks, Tim, this is Kevin. I will try to answer your first question about the sales efficiency. Our Company has already entered the second strategic cycle in which we will launch more models in the coming years. Therefore, we will not take the sales efficiency of 100 vehicles per store as the single target. Considering to keep the store sales efficiency in relatively healthy level we will more aggressively increase our retail stores this year, starting from this year and beyond, to prepare for the launch of our multiple models starting from 2022.

謝謝，蒂姆，這是凱文。我將嘗試回答您關於銷售效率的第一個問題。我們公司已經進入第二個戰略週期，我們將在未來幾年推出更多車型。因此，我們不會以每店100輛的銷售效率作為單一目標。考慮到將門店銷售效率保持在相對健康的水平，我們今年將更積極地增加我們的零售門店，從今年開始及以後，為從 2022 年開始推出我們的多種型號做準備。

Li Xiang do you want to comment on the second question?

第二個問題李想要不要評論一下？

[Spoken in foreign language].

[用外語說]。

Okay, for the benefit of those who do not speak Mandarin, this is Kevin, let me try to translate what Li Xiang just described. So first of all, Li Xiang believes that it will take about three years for any company to develop a car from scratch, from setting up the team, project initiation, R&D testing and product launch. It also will take another actual one year to test the car in the market. So right now, Li Auto has already completed all these three and entered the [second] (corrected by company after the call) phase of strategic cycle. So in the coming three, four years, which we are ahead of those new entry companies, we will accelerate the speed of our development to build out our competitive advantage.

好的，為了那些不會說普通話的人的利益，我是凱文，讓我試著翻譯李想剛才描述的內容。所以首先，李想認為，任何一家企業從零開始研發一款汽車，從組建團隊、立項、研發測試到產品上市，大概需要三年時間。在市場上測試汽車還需要實際一年的時間。所以現在，理想汽車已經完成了這三個階段，進入了戰略週期的[第二]階段（電話後公司更正）。所以在未來的三四年裡，我們領先於那些新進入的公司，我們將加快我們的發展速度，建立我們的競爭優勢。

We think by 2024 we will have the three major competitive advantages compared to those newcomers.

我們認為到 2024 年，與那些新來者相比，我們將擁有三大競爭優勢。

First, is the market share and the user base we already have by then. It will be nearly half a million to 1 million.

首先，是我們當時已經擁有的市場份額和用戶群。將近 50 萬到 100 萬。

Second advantage we will have is our sales and service channel. By then we should already have - our target is to have more than 1000 retail stores and also our factory capacity, our supply chain capacity and also our charging infrastructure will all become a competitive advantage for us.

我們將擁有的第二個優勢是我們的銷售和服務渠道。到那時我們應該已經擁有——我們的目標是擁有超過 1000 家零售店，我們的工廠產能、我們的供應鏈能力以及我們的充電基礎設施都將成為我們的競爭優勢。

Last thing is also very important, is that by then our product portfolio will be much bigger and we will have both EREV portfolio and high voltage BEV portfolio, which will give us a big advantage over the new entry companies. So we respect those who want to enter this industry very much, but we think the timing is on our side. We already passed the zero to one phase and we are already in the one to 10 phase and we are accelerating our new product R&D launch.

最後一件事也非常重要，到那時我們的產品組合將更大，我們將同時擁有 EREV 產品組合和高壓 BEV 產品組合，這將使我們比新進入的公司更具優勢。所以我們非常尊重那些想進入這個行業的人，但我們認為時機在我們這邊。我們已經通過了從零到一的階段，我們已經進入了從一到十的階段，我們正在加速新產品的研發推出。

Thank you, Mr Li, thank you for the great comments, thanks.

謝謝李老師，謝謝您的精彩點評，謝謝。

Thank you, our next question is from the line of Paul Gong of UBS. Please go ahead.

謝謝，我們的下一個問題來自瑞銀的Paul Gong。請繼續。

Yes, thanks for taking my questions, please could I have two questions? The first one is related to the purely electric vehicle or the BEV technology. You have already changed your strategy, you have accelerated your BEV development during the past several months, I can see and you have announced the Whale and Shark platform for this and you are focused on the high voltage and the fast charging.

是的，感謝您提出我的問題，請問我可以問兩個問題嗎？第一個與純電動汽車或 BEV 技術有關。你們已經改變了策略，在過去幾個月加速了 BEV 的開發，我可以看到你們為此宣布了 Whale 和 Shark 平台，你們專注於高壓和快速充電。

Can you share with us more details, especially on the technology and roadmap and timeline of this BEV? And what does Whale and Shark mean? Does Whale mean bigger space, bigger room and Shark means faster acceleration and higher speed? How shall we understand these two platforms?

您能否與我們分享更多細節，尤其是關於這款 BEV 的技術、路線圖和時間表？鯨魚和鯊魚是什麼意思？鯨魚是指更大的空間、更大的房間，而鯊魚是指更快的加速度和更高的速度嗎？我們該如何理解這兩個平台呢？

My second question is regarding the margin guidance for 2021. Obviously at this moment you have been achieving pretty decent and high teens of the gross margin and highly close to breakeven on the net profit margin. But given you already have enough financial resources and you'll probably be at the higher market share or higher volumes to build out the branding, as well as accumulative user base, will you strategically choose to focus on lower margin for 2021 in exchange for a higher market share? [Spoken in foreign language].

我的第二個問題是關於 2021 年的利潤率指導。顯然，目前您已經實現了相當不錯的高十幾歲的毛利率，並且非常接近淨利潤率的收支平衡。但是，鑑於您已經擁有足夠的財務資源，並且您可能會以更高的市場份額或更高的銷量來建立品牌以及積累的用戶群，您是否會在戰略上選擇專注於 2021 年的較低利潤率以換取更高的利潤率？更高的市場份額？ [用外語說]。

[Spoken in foreign language].

[用外語說]。

Okay.

好的。

Okay, this is Kevin I'll translate.

好的，我是凱文，我來翻譯。

So first of all we have been developing our high voltage EV platform for some time. Our focus is to be able to enable our customer to replenish the energy with very high speed. This is the mission we give to us starting from the beginning of this Company.

因此，首先，我們開發高壓電動汽車平台已有一段時間了。我們的重點是能夠讓我們的客戶以非常高的速度補充能量。這是我們從公司成立之初就賦予我們的使命。

Now we believe with the technology and also with the standards that the Chinese Government and the authorities are planned, right now is in the right timing to start to develop this product and try to introduce it into the market very soon.

現在我們相信，憑藉中國政府和當局計劃的技術和標準，現在是開始開發該產品並儘快將其推向市場的最佳時機。

So to achieve this high voltage ultrafast speed charging platform there are four fundamental technologies we have to develop. The first of course is the high C-rate battery. We are working with our partners on the four times C-rate battery. This is not a product we directly buy from our supplier; we develop it together with our partners.

因此，要實現這種高壓超快充電平台，我們必須開發四項基本技術。首先當然是高倍率電池。我們正在與我們的合作夥伴合作開發四次 C 倍率電池。這不是我們直接從供應商處購買的產品；我們與我們的合作夥伴一起開發它。

Second is of course with the [High-voltage platform] (corrected by company after the call). I think at the core of this solution is the SIC technology.

其次當然是 [高壓平台]（公司在電話後更正）。我認為這個解決方案的核心是 SIC 技術。

The third thing is about the thermal system. As you can imagine we are facing two issues. One is that when we charge this car with very high speed the heat we need to manage. That requires a very sophisticated thermal system. On the other hand, to make sure the user experience is very good even in a very low temperature.

第三件事是關於熱力系統。正如您可以想像的那樣，我們面臨著兩個問題。一是當我們以非常高的速度為這輛車充電時，我們需要管理熱量。這需要一個非常複雜的熱系統。另一方面，確保即使在極低的溫度下，用戶體驗也非常好。

We also need to have our thermal [management] (added by company after the call) system can cater the need when they're using low temperature. One example is our R&D team is working on the CO2 thermal as the cold and medium solution for the thermal system.

我們還需要讓我們的熱[管理]（公司在通話後添加）系統能夠滿足他們使用低溫時的需求。一個例子是我們的研發團隊正在研究 CO2 熱力作為熱力系統的冷介質解決方案。

The last technology of course is the high-power charging network. Our target is to enable a 300 to 500 kilometers range within 10 to minutes, yes. That's what we call the -- also the 400 KW high power charging network.

最後一項技術當然是大功率充電網絡。我們的目標是在 10 到分鐘內實現 300 到 500 公里的續航里程，是的。這就是我們所說的——也是 400 千瓦大功率充電網絡。

Because the ultrafast charging speed, that this model starts to become viable for a real commercial charging station, which means that the charging business will become profitable. So therefore, we also have a plan to start to build our own HPC, High Power Charging networks.

由於超快的充電速度，這種模式對於真正的商業充電站開始變得可行，這意味著充電業務將變得有利可圖。因此，我們也有計劃開始構建我們自己的 HPC，即高功率充電網絡。

So from the product launch plan, starting from 2022, we will launch at least two new products each year. The first BEV product will be launched in 2023. On the other hand, it will cover a wider price range with our portfolio. Now, our plan is to cover a price range from RMB150,000 to RMB500,000.

所以從產品發布計劃上來說，從2022年開始，我們每年至少會推出兩款新產品。第一款 BEV 產品將於 2023 年推出。另一方面，我們的產品組合將涵蓋更廣泛的價格範圍。現在，我們的計劃是覆蓋15萬元到50萬元的價格區間。

So overall, our target is to accelerate the replacement of ICE cars. We have two solutions. Both are very good - EREV solution and BEV solution.

所以總的來說，我們的目標是加快ICE汽車的更新換代。我們有兩個解決方案。兩者都非常好——EREV 解決方案和 BEV 解決方案。

Lastly, to answer - Paul asked the question about the Whale and Shark, the Whale platform is a car platform with more space in the car. For Shark, as you can imagine from its name, the performance of this platform will be higher.

最後，回答 - 保羅問了關於鯨魚和鯊魚的問題，鯨魚平台是一個車內空間更大的汽車平台。對於Shark，顧名思義，這個平台的性能會更高。

Hi, Paul. This is Johnny. I will answer the GP question. You can see in 2020, the full-year gross margin is about 16%. So for this year, 2021, we expect gross margin to be between 19% to 20% due to the increased volume with lower BOM and also the manufacturing overhead improvement. But for the net profit side, we don't want to give guidance on this because we are still increasing investment in R&D and also the expansion of our network, which as Kevin mentioned, we will accelerate that. So we don't want to give any guidance on that.

嗨，保羅。這是約翰尼。我會回答GP的問題。大家可以看到2020年，全年毛利率在16%左右。因此，對於今年，即 2021 年，我們預計毛利率將在 19% 至 20% 之間，這是由於 BOM 數量減少以及製造費用改善所致。但對於淨利潤方面，我們不想就此給出指導，因為我們仍在增加研發投資以及我們網絡的擴張，正如凱文提到的那樣，我們將加速這一進程。所以我們不想就此提供任何指導。

Also, you should realize the net profit in the fourth quarter is due to the short-term investment income, which is really standard rate in China, Thank you.

另外，你應該意識到第四季度的淨利潤是由於短期投資收益，這在中國真的是標準利率，謝謝。

Paul Gong: Okay, thank you very much. Very helpful. Thank you.

Paul Gong：好的，非常感謝。非常有幫助。謝謝你。

Thank you. The next question is from Bin Wang of Credit Suisse. Please go ahead.

謝謝你。下一個問題來自瑞士信貸的王斌。請繼續。

(Spoken in foreign language) My questions is about smart car issues, because this year many milestone event will happen for smart car technology for Li Auto. Meanwhile how can you prove you can be catch up or even better compare your key competitors, such as Tesla, NIO and Xpeng? That's the first one.

（用外語）我的問題是關於智能汽車的問題，因為今年理想汽車在智能汽車技術上會有很多里程碑式的事件。同時，你如何證明你可以趕上甚至更好地比較你的主要競爭對手，如特斯拉、NIO 和 Xpeng？這是第一個。

The second one is about the dealer network. You just mentioned your expansion of dealer network. Previously, a guide maybe go to 120 shops this year compared to early this year should be double. Can dealer network double lead to the sales volume double as well? Thank you.

第二個是關於經銷商網絡。您剛剛提到了您對經銷商網絡的擴展。此前，一名導遊今年可能會去120家店鋪，比今年年初應該多了一倍。經銷商網絡翻倍能否帶動銷量翻倍？謝謝你。

So I want to take over the first question. This is Kai speaking. Regarding the plan in 2021, so we will spend more money on R&D. It is the year for preparation of our in-house, brand-new, scalable and upgradable system architecture covering next-generation intelligent cockpit, autonomous driving, car computing platform and our own operating -- car operating system, which we'll be releasing 2022.

所以我想接手第一個問題。我是凱。關於2021年的計劃，所以我們會在研發上投入更多的錢。今年是我們自研的、全新的、可擴展的、可升級的系統架構，包括下一代智能座艙、自動駕駛、汽車計算平台和我們自己的運營——汽車操作系統，我們將發布2022.

Of course, in meanwhile, similar features are offered by our competitors, plus some brand-new features will be provided to our customers, for sure. From engineering resource point of view, we will double size of our total R&D staff, as we mentioned. So building a Shanghai R&D center is part of this expansion.

當然，與此同時，我們的競爭對手也提供了類似的功能，而且肯定會為我們的客戶提供一些全新的功能。從工程資源的角度來看，正如我們提到的，我們的研發人員總數將增加一倍。因此，建立上海研發中心是此次擴張的一部分。

So regarding competition, we have confidence to prove ourselves efficiency again, as we did financially last year. So we believe with fast expansion of our R&D, exciting news regarding our in-house technology, like autonomous driving, can be unveiled soon. Thank you.

所以關於競爭，我們有信心再次證明自己的效率，就像我們去年在財務上所做的那樣。因此，我們相信，隨著我們研發的快速擴張，有關我們內部技術（如自動駕駛）的激動人心的消息很快就會公佈。謝謝你。

Yes, this is Kevin. Thank you, Wang Bin. For the sales network, our Company has already entered the second phase, as just now I mentioned that with the Li Auto brand increasingly accepted by users. In fact, we are changing gear. Yes, we are adjusting our store extension strategy accordingly. So this year, our goal is to reach 200 retail stores in this year, covering 100 cities. This is our plan. As you can see, this is a relatively aggressive plan. The expansion of our sales network will lead to increase of the sales, for sure, and also the brand enhancement.

是的，這是凱文。謝謝你，王斌。在銷售網絡方面，我們公司已經進入了第二階段，剛才我也提到了，理想汽車品牌越來越被用戶接受。事實上，我們正在換檔。是的，我們正在相應地調整我們的商店擴展策略。所以今年，我們的目標是在今年達到200家零售店，覆蓋100個城市。這是我們的計劃。如您所見，這是一個相對激進的計劃。我們銷售網絡的擴張肯定會帶來銷售額的增加，同時也會提升品牌。

I think behind this plan is that we are preparing us for the new model launches in 2022 and beyond.

我認為這個計劃的背後是我們正在為 2022 年及以後的新車型發布做準備。

Thank you.

謝謝你。

Thank you. We have Lei Wang of CICC for the next questions. Please go ahead.

謝謝你。接下來的問題有中金公司的王磊。請繼續。

(Spoken in foreign language) Very quickly to translate my questions. So I want to raise the first question regarding the overseas strategies and another one to CTO Wang Kai regarding to battery lithium ion, if that's okay. So it was recorded that several competitors either had started deliveries in Norway or hatched a plan towards the European market as well. I believe the overseas expansion was not part of our plan, but I was not sure whether you have changed your mind and start considering the high penetration rates of the New Energy Vehicle in Europe.

（用外語）很快就翻譯了我的問題。所以我想向CTO王凱提出第一個關於海外戰略的問題和另一個關於電池鋰離子的問題，如果可以的話。因此，據記載，一些競爭對手要么已經開始在挪威交貨，要么也制定了進入歐洲市場的計劃。我相信海外擴張不是我們計劃的一部分，但我不確定你是否改變了主意，開始考慮歐洲新能源汽車的高滲透率。

The second question wants to go to Mr. Wang Kai, the CTO. We have noticed that Tesla Model 3 has been already using the LFP lithium-ion batteries for cost saving. Have you also considered using LFP instead of the NCM batteries?

第二個問題想問CTO王凱先生。我們注意到，為了節約成本，特斯拉Model 3已經在使用LFP鋰離子電池。您是否也考慮過使用 LFP 代替 NCM 電池？

If you've got some time for the rest of the meeting, whether you can share what's the expectation or target for the deliveries this year. Thanks.

如果你有時間參加剩下的會議，你是否可以分享今年交付的期望或目標。謝謝。

Thank you, Wang Lei. This is Kevin. Let me take your questions. First of all, of course, we are committed to become a global leader of smart electric vehicle ultimately. So definitely we'll continue the overseas market. In the past several years, our strategy is to focus on China market only, but at the same time we are continuously monitoring the progress of the global market. This year particularly, we will continue to increase our focus and research on the overseas market and initiate planning for the products and the sales channels for the overseas market, including establishing overseas offices. Definitely we'll go to overseas.

謝謝你，王磊。這是凱文。讓我回答你的問題。首先，當然，我們最終致力於成為全球智能電動汽車的領導者。所以我們肯定會繼續海外市場。在過去的幾年裡，我們的戰略是只專注於中國市場，但同時我們也在持續關注全球市場的進展。特別是今年，我們將繼續加大對海外市場的關注和研究，著手規劃海外市場的產品和銷售渠道，包括設立海外辦事處。我們肯定會去海外。

For your second questions about LFP, in fact for our EREV platform, we have no plan to launch with lithium-ion phosphate batteries, for two reasons. First of all, right now, all the LFP on the market cannot meet our performance requirements because EREV has a different performance requirement compared with the BEV. Secondly, because EREV use less kilowatt hour of battery, so therefore, even we use the LFP, the cost benefit will be not significant for us.

關於 LFP 的第二個問題，實際上對於我們的 EREV 平台，我們沒有計劃推出鋰離子磷酸鹽電池，原因有兩個。首先，目前市場上所有的LFP都無法滿足我們對性能的要求，因為EREV與BEV的性能要求不同。其次，由於 EREV 使用較少千瓦時的電池，因此，即使我們使用 LFP，成本效益對我們來說也並不顯著。

But for the next step, for our BEVs, definitely we are in the process researching at the development and developing both kind of batteries. For sure, we'll consider LFP for our future BEV car models.

但對於下一步，對於我們的 BEV，我們肯定正在研究開發這兩種電池。當然，我們會考慮將 LFP 用於我們未來的 BEV 車型。

The last question for the expectations for the deliveries of this year. Johnny please

關於今年交付預期的最後一個問題。約翰尼拜託

Yes, I think it's too early to say on that full-year guidance, but we will expand our network, as Kevin mentioned, yes, to reach 10,000 to 12,000 as soon as possible, per month. Thank you.

是的，我認為現在就全年指導下說還為時過早，但正如凱文提到的那樣，我們將擴大我們的網絡，是的，盡快達到每月 10,000 至 12,000 人。謝謝你。

Thank you. Your question is from Xu Yingbo of CITIC. Please go ahead.

謝謝你。你的問題來自中信的徐英波。請繼續。

(Spoken in foreign language) Thank you for giving me the chance. The first question comes from Shanghai research team. It is mentioned that there will be 2000 staff there. Could you please let us know more detail about that?

（用外語）謝謝你給我這個機會。第一個問題來自上海研究團隊。據說那裡將有2000名員工。你能告訴我們更多細節嗎？

The second question is about R&D expense. We notice the R&D expense is keep increasing, so what will be next, one year or two, or maybe in five years, this two time range expectation for R&D expense? Thank you.

第二個問題是關於研發費用。我們注意到研發費用在不斷增加，那麼接下來，一年或兩年，也許五年後，這兩個時間範圍內的研發費用預期會是什麼？謝謝你。

This is Kai speaking. Regarding the question about R&D activity, so the definition of Shanghai R&D center, it will be a mirrored configuration as Beijing R&D center for more car models and also advanced R&D activities. Regarding the team of our, let's say, others, so altogether, right now we have more than 300 engineers working for that. We would like to reach to up to 600 in total by the end of this year.

我是凱。關於研發活動的問題，所以上海研發中心的定義，將是北京研發中心的鏡像配置，更多的車型和更先進的研發活動。關於我們的團隊，比方說，其他人，所以總共，現在我們有 300 多名工程師為此工作。到今年年底，我們希望總數達到 600 個。

This is Johnny. For the R&D, 2020 is the early stage of our 2022 new model. So this year the R&D investment will increase to at least RMB3 billion. With increasing investment in autonomous driving and new models R&D expense - R&D expense will reach US$1 billion in three years. Among that, we believe half of the investment will be for the autonomous driving expenses. Thank you.

這是約翰尼。對於研發，2020 年是我們 2022 年新模型的早期階段。所以今年研發投入至少會增加到30億元人民幣。隨著自動駕駛和新車型研發費用投入的增加——三年後研發費用將達到10億美元。其中，我們認為一半的投資將用於自動駕駛費用。謝謝你。

Yes, thanks a lot. That's helpful. Thank you.

是的，非常感謝。這很有幫助。謝謝你。

Thank you, and as we are reaching the end of our conference call, I'd like to turn the call over to the Company for closing remarks. Ms Janet Chung, please go ahead.

謝謝，在我們的電話會議即將結束時，我想將電話轉給公司以作結束語。 Janet Chung 女士，請繼續。

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

當然。再次感謝您今天加入我們。如果您還有其他問題，請隨時聯繫理想汽車的投資者關係團隊。那麼今天就到此為止。謝謝你，祝你玩得開心。