理想汽車 (LI) 2021 Q4 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for Li Auto's fourth and full year 2021 earnings conference call. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. Li Auto. Please go ahead, Janet.

女士們，先生們，您好。感謝您支持理想汽車 2021 年第四次全年財報電話會議。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。李汽車。請繼續，珍妮特。

Thank you, Amber. Good evening and good morning, everyone. Welcome to Li Autos' fourth quarter and full year 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，琥珀。大家晚上好，早上好。歡迎來到理想汽車 2021 年第四季度和全年財報電話會議。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。

On today's call we have our President, Mr. Kevin Yanan Shen and our CFO, Mr. Johnny Tie Li, 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，我們的總裁 Kevin Yanan Shen 先生和我們的首席財務官 Johnny Tie Li 先生首先準備了發言。我們的創始人兼首席執行官李翔先生將參與問答討論。

Before I continue, please be reminded that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Company's actual results may be materially different from the views expressed today. Further information regarding risks and uncertainties is included in certain 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. The Company does not assume any obligation to update any forward-looking statements, except as required under applicable law.

在我繼續之前，請注意今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款作出的前瞻性陳述。前瞻性陳述涉及固有的風險和不確定性。因此，公司的實際結果可能與今天表達的觀點存在重大差異。有關風險和不確定性的更多信息包含在公司向美國證券交易委員會提交的某些文件以及在香港聯交所和公司網站上發布的公告中。公司不承擔任何更新任何前瞻性陳述的義務，除非適用法律要求。

Please also note that Li Auto's earnings press release and this conference call include discussions of unaudited GAAP financial information, as well as unaudited non-GAAP financial measures. Please refer to Li Auto's press release interim results announcement, and the fourth quarter and full year 2021 results announcement, which contain a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures.

另請注意，理想汽車的收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務信息以及未經審計的非 GAAP 財務指標的討論。請參閱理想汽車的中期業績新聞稿以及 2021 年第四季度和全年業績公告，其中包含未經審計的非 GAAP 指標與可比 GAAP 指標的調節。

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 our call today. 2012 was a pivotal year for new energy vehicle sales in China. During this year, China's auto industry witnessed a notable substitution of EVs for ICE, internal combustion engine vehicles, evidenced by EVs' rapid growth, in contrast to the sluggish sales trend of ICE vehicles.

謝謝你，珍妮特。大家好，感謝您今天加入我們的電話會議。 2012年是中國新能源汽車銷量的關鍵一年。今年以來，中國汽車行業電動汽車替代內燃機汽車的趨勢明顯，與內燃機汽車的低迷銷售趨勢形成鮮明對比的是電動汽車的快速增長。

This led to growing penetration of EVs in overall passenger vehicle sales. According to China Passenger Car Association, in 2021 the retail sales of new energy passenger vehicles increased by 169% year over year, to nearly 3 million, while ICE vehicle retail sales decreased by 5.6%.

這導致電動汽車在整體乘用車銷售中的滲透率不斷提高。據乘聯會數據，2021年新能源乘用車零售量同比增長169%至近300萬輛，而內燃機汽車零售量下降5.6%。

The transition rate for retail sales of new energy passenger vehicles rose substantially to 20.8% in the fourth quarter of 2021, versus 12.6% and 5.8% for the first nine months of 2021 and the full year of 2020.

2021 年第四季度，新能源乘用車零售額轉化率大幅上升至 20.8%，而 2021 年前 9 個月和 2020 年全年分別為 12.6% 和 5.8%。

With mobility transformation trend pointing to increased smart electric vehicle use, we are proud to forge ahead as pioneer. As an industry leader, we are ready to serve more families with continuing product and technological innovations.

隨著移動轉型趨勢指向越來越多的智能電動汽車使用，我們很自豪能夠作為先行者奮進。作為行業領導者，我們隨時準備通過持續的產品和技術創新服務更多家庭。

We achieved deliveries of 35,221 units in the fourth quarter of 2021, up 143.5% year over year, driving total revenue to RMB10.6 billion, or US$1.7 billion, growing 156.1% year over year. The robust fourth quarter performance took our full year deliveries to 90,491, up 177.4% year over year, and the total revenues to RMB27 billion, or US$4.1 billion, up 185.6% year over year.

我們在 2021 年第四季度實現了 35,221 台的交付量，同比增長 143.5%，推動總收入達到人民幣 106 億元，即 17 億美元，同比增長 156.1%。強勁的第四季度業績使我們全年交付量達到 90,491 輛，同比增長 177.4%，總收入達到 270 億元人民幣（41 億美元），同比增長 185.6%。

Li ONE was the first domestic branded premium model priced above RMB300,000 in China to achieve the 10,000 monthly deliveries. In January 2022, we have delivered over 10,000 Li ONEs for the third consecutive month, achieving a new record. We believe this is another milestone for Li ONE to qualify as blockbuster model and will be a benchmark for all our future models.

理想ONE是國內首款突破30萬單月銷量的國產品牌高端車型。 2022年1月，我們連續第三個月交付了10,000輛Li ONE，再創歷史新高。我們相信這是麗 ONE 成為重磅車型的又一里程碑，並將成為我們未來所有車型的標杆。

We are excited to see Li ONE awaken the premium passenger vehicle market in China, targeting family users and emerge as one of the best choices. We attribute our vehicle's success to our outstanding product definition capabilities. The extended range six-seater SUV has gone from being questioned to mainstream, while our four screen, full vehicle interactive voice system has set a new industry benchmark.

我們很高興看到立 ONE 喚醒中國高端乘用車市場，瞄準家庭用戶並成為最佳選擇之一。我們將車輛的成功歸功於我們出色的產品定義能力。增程式六座SUV從被質疑走向主流，四屏全車語音交互樹立行業新標杆。

This further proved our users' recognition of Li ONE's pioneering energy replenishment solution of adopting battery power for urban commuting and the recharge with range extender during long distance travelling and highlights our users' endorsement of the brand new in-vehicle driving and riding experience Li ONE offers in this autonomous era.

這進一步證明了用戶對鋰ONE開創性的城市通勤電池供電、長途增程器充電的能量補充方案的認可，凸顯了用戶對鋰ONE全新車載駕乘體驗的認可。在這個自治時代提供。

Our product definition capabilities are built on the shared vision in our organization and the solid foundation of comprehensive capability including technological strengths, profound consumer insights and systematic execution. And we are confident we can apply this to our future models and continue to provide our users with solutions beyond what they have demanded.

我們的產品定義能力建立在我們組織的共同願景和綜合能力的堅實基礎上，包括技術實力、深刻的消費者洞察力和系統的執行力。我們有信心將其應用到我們未來的模型中，並繼續為我們的用戶提供超出他們需求的解決方案。

We aim to grow our model lineup significantly in the coming years while advancing our R&D efforts as products provide the competitiveness moat for business and technology for the moat for product.

我們的目標是在未來幾年顯著增加我們的模型陣容，同時推進我們的研發工作，因為產品為業務提供了競爭力護城河，技術為產品提供了護城河。

While production and the deliveries improved as most of our chief supply chain partners resumed normal operations, challenges to the overall NEV supply chain will likely become long-lasting, affecting chips, batteries and potential other auto parts, given the accelerating development of the smart electric vehicle industry. Going forward, together with our supply chain partners, we will continue to work multiple measures, such as advanced planning and the diversified supply chain to mitigate supply chain risk.

雖然隨著我們大部分主要供應鏈合作夥伴恢復正常運營，生產和交付有所改善，但隨著智能電動汽車的加速發展，整個新能源汽車供應鏈面臨的挑戰可能會長期存在，影響芯片、電池和其他潛在的汽車零部件汽車行業。未來，我們將繼續與供應鏈合作夥伴一起，通過超前規劃、供應鏈多元化等多項措施，降低供應鏈風險。

In light of the ongoing industry-wide semiconductor shortage, we expect the total deliveries in the first quarter of 2022 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 2022 年第一季度的總交付量將在 30,000 至 32,000 輛之間。

Turning to the financial side, we maintained strong performance with a robust and steady gross margin of 22.4% in the fourth quarter, growing 4.9% year over year. This was driven by our strong vehicle sales performance and consistently effective cost management measures. Even as we accelerated the pace of RMB spending to 11.6% of revenue and grew our sales network by adding 53 retail stores in the fourth quarter, we achieved profitability, as well as a record-breaking RMB3.8 billion operating cash flow, which is a significant reflection of our operating excellency.

財務方面，我們保持強勁表現，第四季度毛利率穩健穩健，達到 22.4%，同比增長 4.9%。這是由我們強勁的汽車銷售業績和一貫有效的成本管理措施推動的。儘管我們加快了人民幣支出的步伐至收入的 11.6%，並通過在第四季度增加了 53 家零售店來擴大我們的銷售網絡，但我們實現了盈利，以及創紀錄的 38 億元人民幣的經營現金流，這是我們卓越運營的重要體現。

In 2021, we significantly extended our direct sales and servicing network, almost quadrupling our number of retail stores to 206 in 102 cities from 52 in 41 cities as of the end of 2020. By the end of January, we had 220 retail stores in 105 cities, as well as 276 servicing centers and Li Auto authorized body and paint shops operating in 204 cities.

2021 年，我們顯著擴展了我們的直銷和服務網絡，我們的零售店數量從 2020 年底的 41 個城市的 52 家增加到 102 個城市的 206 家，幾乎翻了兩番。截至 1 月底，我們在 105 個城市擁有 220 家零售店城市，以及在 204 個城市運營的 276 個服務中心和 Li Auto 授權車身和油漆店。

We aim to provide our users with more convenient, efficient, and pleasant purchasing and user experience by strengthening our online operations, as well as continually adding physical touchpoints close to our users.

我們旨在通過加強在線運營以及不斷增加靠近用戶的物理接觸點，為我們的用戶提供更方便、高效、愉快的購買和用戶體驗。

We plan to further enlarge our foot point [sic - footprint] and target reaching 400 retail stores by the end of this year, to meet the growing market demand for AEB national wide, supported by consumers' rising NEV adoption, and our upcoming new model launches in 2022, and onward.

我們計劃進一步擴大我們的足跡[原文如此 - 足跡]，目標是到今年年底達到 400 家零售店，以滿足全國范圍內對 AEB 不斷增長的市場需求，消費者對新能源汽車的採用不斷增加，以及我們即將推出的新車型2022 年及以後發射。

Moving to our product optimization and R&D efforts. In December 2021, we released the OTA 3.0 update to all our Li ONE users, further enhancing the in-car experience for both drivers and passengers. This upgrade includes the navigation ADAS and automatic emergency braking, AEB, features, making us the third automotive OEM globally to develop its own full-stack NOA capability.

轉向我們的產品優化和研發工作。 2021 年 12 月，我們向所有 Li ONE 用戶發布了 OTA 3.0 更新，進一步提升了駕駛員和乘客的車內體驗。此次升級包括導航 ADAS 和自動緊急制動、AEB 等功能，使我們成為全球第三家開發自己的全棧 NOA 功能的汽車 OEM。

As of January 31, 2021, we have provided NOA to more than 70,000 family users, and during the spring festival holiday, we accumulated over 2 million kilometers of NOA knowledge. With an ADAS-equipped user base at the leading scale in China, we will continue to increase the R&D of ADAS-related technology and we believe we are well positioned to push the boundaries of assisted driving technologies. The upgraded AEB, with vision perception algorithm enables Li ONE to identify roadworks and highway traffic accident sites, and prompts users in advance to avoid major accidents.

截至2021年1月31日，我們已經為超過7萬家庭用戶提供了NOA，春節假期我們積累了超過200萬公里的NOA知識。憑藉中國領先規模的配備 ADAS 的用戶群，我們將繼續加大 ADAS 相關技術的研發，我們相信我們有能力推動輔助駕駛技術的發展。升級後的AEB，搭載視覺感知算法，讓Li ONE能夠識別道路施工和高速公路交通事故現場，提前提示用戶避免重大事故發生。

Li ONE was awarded 2021 Car of the Year by D Car [spoken in Chinese], a renowned auto information platform in China, due to its outstanding AEB performance, exhibited in the D Car AEB test, known as the most strict vehicle test in China by automotive professionals. During the test, Li ONE was the only assessed model in the final round capable of accurately identifying crossing vehicles and two-wheelers. This further reflects our full-stack self-development capabilities.

理想ONE憑藉出色的AEB性能，在被譽為中國最嚴格車輛測試的D Car AEB測試中亮相，榮獲中國知名汽車信息平台D Car [中文口語] 2021年度最佳車型由汽車專業人士。在測試過程中，力ONE是決賽中唯一能夠準確識別交叉車輛和兩輪車的被評估車型。這進一步體現了我們的全棧自主開發能力。

The OTA 3.0 update also included an upgraded version of the Li ONE smart in-car voice assistant, Li Xiang Tong Xue, which now recognizes and executes more voice instructions for in-car entertainment, navigation and the vehicle setting. We will continue to conduct R&D to develop safer cars with smarter product features that can be helpful for all members of the family, young and old, as we remain steadfast in our commitment to creating homes on the move that bring happiness to the entire family.

OTA 3.0更新還包括升級版的理想ONE智能車載語音助手——理想童雪，現在可以識別並執行更多的車載娛樂、導航和車輛設置的語音指令。我們將繼續進行研發，以開發具有更智能產品功能的更安全的汽車，以幫助所有家庭成員，無論老幼，因為我們始終堅定不移地致力於創造移動中的家園，為整個家庭帶來幸福。

We are also happy to share that we have been added to the Hang Seng Cap Index under the index's newly added category of autonomous technology. The inclusion will take effect on 7 March this year. We have also been included in the Hang Seng Compositive Large Cap Index since August 2021.

我們也很高興地宣布，我們已被納入恆生市值指數，歸入該指數新增的自主技術類別。納入將於今年3月7日生效。自 2021 年 8 月起，我們也被納入恆生綜合大型股指數。

As a technology leader in smart mobility, our addition to the Hang Seng Cap Index endorses the strength of our full-stack self-developed ADAS and smart cabin technologies, as well as recognizes our capability to create value for our investors. We look forward to bringing more families our Li ONE premium experience that offers safer, simpler driving with all the amenities and technologies people want in a premium vehicle.

作為智能出行領域的科技領先者，我們入選恆生市值指數是對我們全棧自主研發ADAS和智能座艙技術實力的認可，也是對我們為投資者創造價值的能力的認可。我們期待為更多家庭帶來我們的 Li ONE 高級體驗，它提供更安全、更簡單的駕駛以及人們想要的高級車輛中的所有便利設施和技術。

In the second quarter of 2022, we will unveil our next mass-produced vehicle model, a full-size premium extended range electric SUV. Deliveries of this model will start in the third quarter of this year. In 2023, we plan to launch two BEV models that support ultra-fast charging. By then our ultra-high voltage charging solution will be readily available to our users, effectively shortening the charging time and addressing mileage anxiety.

2022 年第二季度，我們將推出下一款量產車型，一款全尺寸高級增程式電動 SUV。該型號將於今年第三季度開始交付。 2023年，我們計劃推出兩款支持超快充的BEV車型。屆時，我們的超高壓充電解決方案將觸手可及，有效縮短充電時間，解決里程焦慮。

As we remain committed to developing new models, autonomous driving, smart cockpit and others, our R&D expense for 2021 tripled year over year to RMB3.3 billion or US$515.7 million, accounting for 12.2% of revenue. We will continue to expedite our R&D progress with the support of our expanding R&D team, which is comprised of more than 3400 personnel as of the end of 2021, representing 139.8% year-over-year growth. We target to maintain our R&D investment at the level of 10% of revenue and above going forward.

由於我們繼續致力於開發新車型、自動駕駛、智能座艙等，我們 2021 年的研發費用同比增長兩倍，達到人民幣 33 億元或 5.157 億美元，佔收入的 12.2%。我們將在不斷擴大的研發團隊的支持下繼續加快研發進度，截至 2021 年底，該團隊由 3400 多名人員組成，同比增長 139.8%。我們的目標是將研發投入維持在收入的 10% 及以上水平。

Turning to our production capacity, we are extending our capacity at the Changzhou factory and constructing our Beijing manufacturing base. Once the expansion and construction are completed, the designed production capacity at these two manufacturing sites will reach 500,000 units annually in 2023 and around 750,000 with double shifts.

在產能方面，我們正在擴大常州工廠的產能並建設我們的北京製造基地。擴建完成後，到2023年，這兩個生產基地的設計產能將達到年產50萬台，雙班倒75萬台左右。

Meanwhile, we are excited to share that in December 2021 we entered into a strategic cooperation framework with the Chongqing municipal government for establishing our new manufacturing base. We will make relevant disclosure of the Chongqing manufacturing base when appropriate. The enhanced production capacity, together with our enriched product lineup, will position us well to capture an increasing share of the booming EV market, laying a solid foundation for our strong growth in the years to come.

同時，我們很高興地宣布，2021 年 12 月，我們與重慶市政府就建立我們的新製造基地達成了戰略合作框架。我們將適時對重慶製造基地進行相關披露。增強的產能加上我們豐富的產品線，將使我們能夠在蓬勃發展的電動汽車市場佔據越來越大的份額，為我們未來幾年的強勁增長奠定堅實的基礎。

With the launch of our second major vehicle just around the corner and the continued strength in orders for our Li ONE, we expect 2022 will be another pivotal year of growth for Li ONE, for Li Auto. Our pioneering spirit tells us to keep pushing the boundary of what is possible and that's what we are doing.

隨著我們的第二款主力車型即將推出，以及我們的理想 ONE 的訂單持續強勁，我們預計 2022 年將是理想 ONE 和理想汽車增長的又一個關鍵年。我們的開拓精神告訴我們要不斷突破可能的界限，這就是我們正在做的事情。

The market is ripe for advancement and we are in the right place, at the right time, with the right strategy, the right skillsets, the right business model and the right vehicle to drive us to the next destination. In 2022, we expect the NEV market to see its greatest number of drivers yet and we are all ready for it.

市場發展的時機已經成熟，我們在正確的時間、正確的地點，以正確的戰略、正確的技能、正確的商業模式和正確的工具，將我們帶到下一個目的地。到 2022 年，我們預計新能源汽車市場將迎來迄今為止數量最多的司機，我們都已做好準備。

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，以審查我們在第四季度的財務業績。

Thank you, Kevin. Hello, everyone. I will now walk you through some of our financial results for the fourth quarter of 2021. Due to time constraints, I will address our financial highlights here and encourage you to refer to our earnings press release for further details.

謝謝你，凱文。大家好。我現在將向您介紹我們 2021 年第四季度的部分財務業績。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。

Our total revenues in the fourth quarter of 2021 were RMB10.62 billion or US$1.67 billion, representing an increase of 156.1% from RMB4.15 billion in the further quarter of 2020 and an increase of 36.6% from RMB7.78 billion in the third quarter of 2021. This included RMB10.38 billion or US$1.63 billion from vehicle sales, which increased 155.7% year over year and 40.5% quarter over quarter. The increase over the fourth quarter of 2020 and the third quarter of 2021 was mainly due to the increase of vehicle deliveries in the fourth quarter.

我們 2021 年第四季度的總收入為人民幣 106.2 億元或 16.7 億美元，比 2020 年第四季度的人民幣 41.5 億元增長 156.1%，比第三季度的人民幣 77.8 億元增長 36.6% 2021 年第一季度。其中包括汽車銷售額 103.8 億元人民幣或 16.3 億美元，同比增長 155.7%，環比增長 40.5%。較2020年第四季度和2021年第三季度增加主要是由於第四季度車輛交付量增加。

Revenues from other sales and services were RMB244.7 million or US$38.4 million in the fourth quarter of 2021, representing an increase of 174.5% year over year and a decrease of 37.1% quarter over quarter. The year-over-year increase in revenue from other sales and services was mainly attributable to increased sales of charging stalls, accessories and services in line with higher accumulated vehicle sales. The decrease in revenue from other sales and services over the third quarter of 2021 was due to the sales of automotive regulatory credits in the third quarter, which didn't recur in the fourth quarter.

2021 年第四季度其他銷售和服務收入為人民幣 2.447 億元或 3840 萬美元，同比增長 174.5%，環比下降 37.1%。其他銷售和服務收入的同比增長主要是由於隨著累計汽車銷量的增加，充電樁、配件和服務的銷售額增加。 2021 年第三季度其他銷售和服務收入的減少是由於第三季度汽車監管信貸的銷售，第四季度沒有再次發生。

Costs of sales in the fourth quarter of 2021 was RMB8.24 billion or US$1.29 billion, representing an increase of 140.8% year over year and an increase of 38.2% quarter over quarter.

2021年第四季度銷售成本為人民幣82.4億元或12.9億美元，同比增長140.8%，環比增長38.2%。

Gross profit in the fourth quarter of 2021 was RMB2.38 billion or US$373.5 million, growing 228.5% compared with the fourth quarter of 2020 and 31.3% compared with the third quarter of 2021.

2021年第四季度毛利為23.8億元人民幣或3.735億美元，較2020年第四季度增長228.5%，較2021年第三季度增長31.3%。

Vehicle margin in the fourth quarter of 2021 was 22.3%, compared with 17.1% in the fourth quarter of 2020 and 21.1% in the third quarter of 2021. The increase in vehicle margin over the fourth quarter of 2020 was primarily driven by higher average selling price attributable to the increase of vehicle deliveries of our 2021 Li ONE since its release in May.

2021 年第四季度的汽車利潤率為 22.3%，而 2020 年第四季度為 17.1%，2021 年第三季度為 21.1%。汽車利潤率較 2020 年第四季度增加主要是由於平均銷量增加所致價格歸因於我們的 2021 Li ONE 自 5 月發布以來車輛交付量的增加。

Our gross margin in the fourth quarter of 2021 was 22.4%, compared with 17.5% in the fourth quarter of 2020 and 23.3% in the third quarter of 2021.

我們 2021 年第四季度的毛利率為 22.4%，而 2020 年第四季度為 17.5%，2021 年第三季度為 23.3%。

Operating expenses in the fourth quarter of 2021 were RMB2.36 billion or US$369.7 million, representing an increase of 193.2% year over year and an increase of 23.4% quarter over quarter.

2021年第四季度營業費用為23.6億元人民幣或3.697億美元，同比增長193.2%，環比增長23.4%。

Research and development expenses in the fourth quarter of 2021 were RMB1.23 billion or US$193 million, representing an increase of 228.7% year over year and an increase of 38.4% quarter over quarter. The increase in research and development expenses over the fourth quarter of 2020 and the third quarter of 2021 was primarily driven by increased employee compensation as a result of growing number of research and development staff, as well as increased costs associated with new product developments.

2021年第四季度研發費用為人民幣12.3億元或1.93億美元，同比增長228.7%，環比增長38.4%。 2020 年第四季度和 2021 年第三季度研發費用的增加主要是由於研發人員數量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。

Selling, general and administrative expenses in the further quarter of 2021 were RMB1.13 billion or US$176.6 million, representing an increase of 162.2% year over year and an increase of 10.2% quarter over quarter. The increase over the fourth quarter of 2020 was primarily driven by increased employee compensation as a result of growing number of staff, as well as increased marketing and promotion activities and rental expenses associated with the expansion of the Company's distribution network.

2021 年下一季度的銷售、一般和管理費用為人民幣 11.3 億元或 1.766 億美元，同比增長 162.2%，環比增長 10.2%。 2020 年第四季度的增長主要是由於員工人數增加導致員工薪酬增加，以及與公司分銷網絡擴張相關的營銷和促銷活動以及租金費用增加。

Income from operations in the fourth quarter of 2021 was RMB24.1 million or US$3.8 million, compared with RMB78.9 million loss from operations in the fourth quarter of 2020 and RMB97.8 million loss from operations in the third quarter of 2021.

2021 年第四季度的運營收入為人民幣 2,410 萬元或 380 萬美元，而 2020 年第四季度的運營虧損為人民幣 7,890 萬元，2021 年第三季度的運營虧損為人民幣 9,780 萬元。

Net income in the fourth quarter of 2021 was RMB295.5 million or US$46.4 million, compared with RMB107.5 million net income in the fourth quarter of 2020 and RMB21.5 million net loss in the third quarter of 2021.

2021 年第四季度的淨收入為人民幣 2.955 億元或 4640 萬美元，而 2020 年第四季度的淨收入為人民幣 1.075 億元，2021 年第三季度的淨虧損為人民幣 2150 萬元。

And now turning to our balance sheet and cash flow. Our cash and cash equivalents, restricted cash, time deposits and short-term investments totaled RMB50.16 billion or US$7.87 billion as of December 31, 2021. Operating cash flow in the fourth quarter of 2021 was RMB3.84 billion or US$602.1 million. Free cash flow was RMB1.62 billion or US$253.5 million in the fourth quarter of 2021. As of December 31, 2021, we had a total of 11,901 employees. For more of our 2021 full year financial results please refer to our earnings release for further details.

現在轉向我們的資產負債表和現金流量。截至 2021 年 12 月 31 日，我們的現金及現金等價物、受限制現金、定期存款和短期投資總計人民幣 501.6 億元或 78.7 億美元。2021 年第四季度的經營現金流為人民幣 38.4 億元或 6.021 億美元. 2021 年第四季度的自由現金流為 16.2 億元人民幣或 2.535 億美元。截至 2021 年 12 月 31 日，我們共有 11,901 名員工。有關我們 2021 年全年財務業績的更多信息，請參閱我們的收益發布以了解更多詳細信息。

Now for our business outlook. For the first quarter of 2022 the Company expects the delivery to be between 30,000 and 32,000 vehicles, representing an increase of 138.5% to 154.4% from the first quarter of 2021. The Company also expects the first quarter total revenues to be between RMB8.84 billion and RMB9.43 billion or US$1.39 billion and US$1.48 billion representing an increase of 147.2% to 163.7% from the first quarter of 2021.

現在是我們的業務前景。公司預計 2022 年第一季度交付量將在 30,000 至 32,000 輛之間，較 2021 年第一季度增長 138.5%至 154.4%。公司還預計第一季度總收入將在人民幣 8.84 元之間億元和94.3億元人民幣或13.9億美元和14.8億美元，比2021年第一季度增長147.2%至163.7%。

This business outlook reflects the Company's current and preliminary view on its situation and market conditions including the ongoing industry-wide semiconductor shortage which are all subject to change.

該業務展望反映了公司對其狀況和市場狀況的當前和初步看法，包括持續的全行業半導體短缺，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. Thank you.

我現在將把電話轉給接線員，開始我們的問答環節。謝謝你。

Thank you. We will now begin the question-and-answer session. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to withdraw your request, please press the pound or hash key. For the benefit of all participants on today's call, please limit yourself to two questions and if you have additional questions, you can re-enter the queue. If you are going to ask the questions in Chinese, please follow with English translation. So once again it's star one for questions. Our first question comes from the line of Fei Fang from Goldman Sachs. Please ask your question.

謝謝你。我們現在開始問答環節。如果您想提問，請在您的電話上按星一號，然後等待您的名字被宣布。如果您想撤回您的請求，請按井號或井號鍵。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，如果您有其他問題，可以重新進入隊列。如果您要用中文提問，請跟著英文翻譯。因此，它再次成為問題的明星。我們的第一個問題來自高盛的方飛。請提出你的問題。

Great thank. Let me ask my questions in Chinese first and I will translate into English. (Spoken in Chinese). Now let me just quickly translate into English. The Chinese new energy vehicle industry had various product launches in the past 12 months, some were successful, some didn't really quite work out. So what have you learnt from the industry and what do you think are the critical factors for a product to succeed?

非常感謝。讓我先用中文問我的問題，我會翻譯成英文。 （用中文講）。現在讓我快速翻譯成英文。中國新能源汽車行業在過去 12 個月裡推出了各種產品，有成功的，也有不太成功的。那麼您從行業中學到了什麼？您認為產品成功的關鍵因素是什麼？

The second question is on manufacturing capacity and store openings to 750,000 units production capacity by the end of 2023, 400 stores by the end of this year. These are ambitious targets, it's a large number from where you are at right now so does it mean now you are ready to scale up new products after unveiling those in the rest of the year. Thank you.

第二個問題是關於製造能力和門店開張到2023年底達到75萬台產能，到今年年底400家門店。這些都是雄心勃勃的目標，從你現在所處的位置來看，這是一個很大的數字，所以這是否意味著你現在已經準備好在今年剩餘時間推出新產品後擴大規模。謝謝你。

Xiang Li: (Spoken in Chinese). First of all, this is Li Xiang. I am translating for Li Xiang. I would like to answer this question as a product manager myself. In fact, in the industry there is a very established product logic. We start with the users. The users care about two things and first of all is their own need and there are three levels of need. Starting with the first level which is their superficial need and then going down further there is the hidden need and eventually the need that the users don't even know themselves.

李翔：（用中文說）。首先，這位是李想。我正在為李想翻譯。我想以產品經理的身份來回答這個問題。事實上，在行業中有一個非常成熟的產品邏輯。我們從用戶開始。用戶關心兩件事，首先是他們自己的需求，需求分為三個層次。從第一層開始，這是他們的表面需求，然後再往下是隱藏的需求，最終是用戶甚至不了解自己的需求。

So first of all, we need to understand these needs very well and the second point is the price point that they are willing to buy our products at. With these things we can basically draw a circle and as the product manager our goal is to build products that will overlap as much as possible with this circle of user needs. The product really focuses on five different things.

所以首先，我們需要非常了解這些需求，第二點是他們願意購買我們產品的價格點。有了這些東西，我們基本上可以畫一個圈，作為產品經理，我們的目標是構建盡可能多地與這個用戶需求圈重疊的產品。該產品真正專注於五個不同的方面。

The first one is product performance. You need to deliver a product that performs well on many different levels, and secondly, the safety and security, third is quality, fourth is price, and fifth is supply. Especially in an industry that has been growing so rapidly, supply is especially important as has been seen in the industry in the past few years.

第一個是產品性能。您需要提供在許多不同層面上都表現良好的產品，其次是安全保障，第三是質量，第四是價格，第五是供應。特別是在一個發展如此迅速的行業中，供應尤為重要，正如過去幾年在該行業中所看到的那樣。

So overall if we can build a product that can balance these five factors and match with the circle of user needs then the bigger the overlap, the greater the sales. On the contrary, if the overlap is very small no matter what the vision is from the Company's standpoint, sales will always suffer. So we believe a good product performance is never a coincidence. It is based on very established and solid product capabilities of the Company. Thank you.

所以總的來說，如果我們能夠打造一款能夠平衡這五個因素並與用戶需求圈相匹配的產品，那麼重疊越大，銷量就越大。相反，如果重疊非常小，無論從公司的角度來看是什麼願景，銷售都會受到影響。所以我們相信好的產品性能絕不是巧合。它基於公司非常成熟和堅實的產品能力。謝謝你。

Okay, this is Kevin, let me take the second question about our preparations for the coming years. Actually, we have very strong confidence in our new products that we are going to launch in this year and next year. Therefore, we are very aggressive in terms of getting our capacity prepared. Right now, from the sales side, as mentioned, we have 400 stores planned by the end of this year and we will have more next year.

好的，我是凱文，讓我回答第二個問題，關於我們為未來幾年所做的準備工作。實際上，我們對我們將在今年和明年推出的新產品非常有信心。因此，我們在準備能力方面非常積極。目前，從銷售方面來說，如前所述，我們計劃在今年年底前開設 400 家門店，明年還會有更多。

Also, not only stores but also human resources of the sales force we are also preparing. From the capacity perspective, actually not only our own capacity, we are working with our supply chain partners to add in capacity in their factories also. Also, as we should all know that the [IC] supply is constrained so therefore we are already starting to secure upstream IC resources by giving advanced planning to our supply chain partners. Thank you.

此外，不僅是商店，我們也在準備銷售人員的人力資源。從產能的角度來看，實際上不僅是我們自己的產能，我們也在與我們的供應鏈合作夥伴合作，增加他們工廠的產能。此外，眾所周知，[IC] 供應受到限制，因此我們已經開始通過為我們的供應鏈合作夥伴提供預先計劃來確保上游 IC 資源。謝謝你。

Thank you for your question. Our next question comes from Tim Hsiao from Morgan Stanley. Please ask your question.

謝謝你的問題。我們的下一個問題來自摩根士丹利的 Tim Hsiao。請提出你的問題。

(Spoken in Chinese) So just two quick questions. The first question is about our ecosystem strategy. We notice several stores appeared, stores were planned to expand the operation scope into non-vehicle business, for example, like smartphone manufacturing or (inaudible) vehicles in order to grow them and enhance the user ecosystem of the smart EV. So from Li Auto's perspective how should we think about the Company's (inaudible) system development.

（用中文說）所以只有兩個簡短的問題。第一個問題是關於我們的生態系統戰略。我們注意到出現了幾家商店，商店計劃將經營範圍擴大到非汽車業務，例如智能手機製造或（聽不清）汽車，以發展它們並增強智能電動汽車的用戶生態系統。那麼從理想汽車的角度來看，我們應該如何思考公司的（聽不清）系統開發。

My second question is about the cost management. There is - we expect a general inflation or price hikes of the batteries and other key materials to continue this year so how should we gauge the potential impact, any quantitative information that we can take as a reference when we assess the potential impact? Thank you.

我的第二個問題是關於成本管理。有 - 我們預計今年電池和其他關鍵材料的普遍通貨膨脹或價格上漲將繼續，那麼我們應該如何衡量潛在影響，我們在評估潛在影響時可以作為參考的任何量化信息？謝謝你。

(Interpreted) As the founder of the Company, we have been focused from day one on the smart electric vehicle market, and we believe that we've just finished our zero to one stage, and there are still way too many things for us to focus on, than to extend into other sectors. There are many things that we can do on a product, application, technology and system level that I believe will take the next five to 10 years for us to complete, and we will be very focused on this market going forward, for at least the next 10 years. We believe that in 10 years, we can reach the level where Apple is in smartphones and smart devices. That's our overall strategy.

（解讀）作為公司的創始人，我們從第一天開始就專注於智能電動汽車市場，我們認為我們剛剛完成了從0到1的階段，還有太多的事情要做。專注於，而不是延伸到其他部門。我們可以在產品、應用、技術和系統層面做很多事情，我相信我們需要未來五到十年才能完成，我們將非常專注於未來的市場，至少未來10年。我們相信在10年內，我們可以達到蘋果在智能手機和智能設備方面的水平。這是我們的總體戰略。

Then speaking about space, the in-car space, there are so many things to do. We're not talking about expanding into other types of space, because we believe that even for the space in-car, there are still many things to do. One of the opportunities is the experience - for activities where the experience is still not as perfect. In other space, we believe there's an opportunity to move them into cars, and because of our integration capabilities, and because we can fully control many of the hardware and software, we can provide a much better experience than the way it is elsewhere, including content and hardware. These are all big opportunities to tackle that we will continue to focus on in the foreseeable future.

然後說到空間，車內的空間，可以做的事情非常多。我們不是在談論擴展到其他類型的空間，因為我們認為即使是車內空間，還有很多事情要做。機會之一是體驗——對於體驗仍不完美的活動。在其他領域，我們相信有機會將它們轉移到汽車中，並且由於我們的集成能力，並且因為我們可以完全控制許多硬件和軟件，我們可以提供比其他地方更好的體驗，包括內容和硬件。這些都是我們在可預見的未來將繼續關注的重大機遇。

Tim, this is Kevin. Let me take the second question about the cost challenge. In fact, when we planned for this year's financial budget, actually, we already took into consideration of the potential cost increase, especially as we are - should all know that the battery is going to - the cost will increase. On the other hand, actually, with the volumes substantially increased this year, also we will achieve more economies of scale. Therefore, overall, although we have many challenges, but we still target to achieve a higher margin, gross margin, than last year.

蒂姆，這是凱文。讓我回答關於成本挑戰的第二個問題。事實上，當我們計劃今年的財務預算時，實際上，我們已經考慮到潛在的成本增加，特別是因為我們 - 應該都知道電池會 - 成本會增加。另一方面，實際上，隨著今年銷量的大幅增加，我們也將實現更多的規模經濟。因此，總體而言，儘管我們面臨許多挑戰，但我們的目標仍然是實現比去年更高的利潤率、毛利率。

Thank you. Our next question comes from Bin Wang from Credit Suisse. Please ask your question.

謝謝你。我們的下一個問題來自瑞士信貸的 Bin Wang。請提出你的問題。

(Spoken in Chinese) Actually, I have several small questions. Number one is about, you just mentioned, in the March statement, you actually got eligible for the Hang Seng Technology Index. That means you could be eligible for the Shenzhen-Hong Kong Stock Connect [to get a source for money]. That's number one.

(用中文講) 其實我有幾個小問題。第一，你剛才提到，在三月份的聲明中，你實際上獲得了恆生科技指數的資格。這意味著你可能有資格參與深港通[獲得資金來源]。這是第一。

Number two is about NEV credit. You're actually booking around 200 million revenue for NEV credit in '21. Can you guess what's the rough amount in '22 because you have almost more than 100% growth in '21. That is also help for the margin and the profit.

第二是關於 NEV 信用。實際上，您在 21 年為 NEV 信貸預訂了大約 2 億美元的收入。你能猜出 22 年的粗略數字是多少嗎，因為你在 21 年的增長幾乎超過 100%。這也有助於提高利潤率。

The last one is [you had] an announcement that the CTO is leaving. Can you explain what's the reason behind the CTO leaving? Thank you.

最後一個是 [you had] CTO 即將離職的公告。你能解釋一下 CTO 離職的原因是什麼嗎？謝謝你。

This is Johnny. Thank you, Wang Bin. First of all, for the Connect, according to the [listing] press release by this index, we have been included in the Large Cap Index, and also to be included in the Connect, we need to meet the relevant requirements on market cap and transaction volume. We expect to be included in the Connect in middle March, after we are listed for six months and plus 20 transaction days, it will be around that time.

這是約翰尼。謝謝你，王斌。首先，對於滬港通，根據這個指數的【上市】新聞稿，我們已經被納入大盤指數，要被納入滬深港通，我們需要滿足相關的市值要求和交易量。我們預計三月中旬被納入滬深港通，我們上市六個月後加上20個交易日，大概就是那個時候。

For the NEV credit, for 2021, we have over 223 times of our NEV scores, compared with 2022 that we got from the sales volume. As everyone made aware, the per score price will be lower than last year. We are still negotiating with the potential buyer of those NEV scores. Hopefully, that will come out around the third quarter, just like last year.

對於 NEV 積分，2021 年，我們的 NEV 分數是我們從銷量中獲得的 2022 年的 223 倍以上。眾所周知，每分價格將低於去年。我們仍在與這些 NEV 分數的潛在買家進行談判。希望這將在第三季度左右出現，就像去年一樣。

For the CTO's [press], I think we can just refer to the press release. Thank you.

對於 CTO 的[新聞]，我想我們可以參考新聞稿。謝謝你。

Thank you.

謝謝你。

Thank you. Our next question comes from the line of Ming Hsun Lee from Bank of America. Please ask your question.

謝謝你。我們的下一個問題來自美國銀行的 Ming Hsun Lee。請提出你的問題。

(Spoken in Chinese) I have two questions. The first question is how do you see the supply chain management and also the chip supply situation in 2022?

（用中文說）我有兩個問題。第一個問題，您如何看待2022年的供應鏈管理以及芯片供應情況？

The second question, just OTA, the NOA, last year, and what do you think, what is the most important function for the next step for you to offer to your customers to enhance the experience? (Spoken in Chinese)

第二個問題，就是OTA，去年的NOA，你怎麼看，下一步你要提供給你的客戶提升體驗最重要的功能是什麼？ （中文口語）

Hi Lee, this is Kevin. Let me take the first question. In fact, we are also impacted by the (inaudible) supply this month, and also last month. Not only the IC shortage from ST, but also the COVID-19 hit Suzhou. Going forward, in the coming months, actually, we see the situation will get improved, but still, supply will be very tight. We'll continue to do what we have been doing. First, qualify more suppliers. Second, give advanced planning to our supply chain planners. Third, basically, to increase our own production flexibility, so that whenever the supply is available, we can very quickly turn it into final product to deliver to our customers. Second question.

嗨，李，我是凱文。讓我回答第一個問題。事實上，我們也受到本月和上個月（聽不清）供應的影響。不僅 ST 的 IC 短缺，而且 COVID-19 襲擊了蘇州。展望未來，在接下來的幾個月裡，實際上，我們看到情況會有所改善，但供應仍然會非常緊張。我們將繼續做我們一直在做的事情。首先，對更多供應商進行資格審查。其次，為我們的供應鏈規劃人員提供高級規劃。第三，基本上，增加我們自己的生產靈活性，這樣只要有貨，我們就可以很快把它變成最終產品，交付給我們的客戶。第二個問題。

(Interpreted) Since we've started delivering the NOA feature on our 2021 model year Li ONE, we completed the full feature release on the model by the end of last year. Our goal has always been to deliver a good experience for the customers, and there is actually large amounts of work for us to deliver this good experience, including adapting HD map, and continue to fine tune.

（翻譯）自從我們開始在 2021 年款 Li ONE 上提供 NOA 功能以來，我們在去年年底完成了該型號的完整功能發布。我們的目標一直是為客戶提供良好的體驗，而要提供這種良好的體驗實際上我們有大量的工作要做，包括適配高精地圖，並繼續進行微調。

We will continue this work to continue to make improvements in safety, and our goal is to increase safety standards across the entire driving experience, not just when the car is in NOA mode, which is the reason why we started to develop many of the technologies in house, and our ultimate goal is to increase safety by decreasing accidents by 80% across the entire lifecycle of our vehicles, which is why we make the features standard, and continue to iterate the feature over time.

我們將繼續這項工作以繼續改進安全性，我們的目標是提高整個駕駛體驗的安全標準，而不僅僅是當汽車處於 NOA 模式時，這就是我們開始開發許多技術的原因在內部，我們的最終目標是通過在車輛的整個生命週期內將事故減少 80% 來提高安全性，這就是為什麼我們將功能設為標準，並隨著時間的推移繼續迭代該功能。

The (inaudible0 is about the current solution on our Li ONE, which runs on two Horizon J3 chips, and speaking of X01, which will be launched this year, there will be significant improvements not only in sensors, but also in computing power and safety and redundancies. It will bring the safety of the entire vehicle over the lifecycle to a whole new level, and it will make the drivers and their families safe, not only when the car is in NOA mode, but also when the driver is driving themselves.

（聽不清0是關於我們Li ONE目前的解決方案，它運行在兩個Horizon J3芯片上，說到今年將推出的X01，不僅在傳感器方面會有顯著改進，而且在計算能力和安全性方面也會有顯著改進它將整車在生命週期內的安全性提升到一個全新的水平，不僅在汽車處於 NOA 模式時，而且在駕駛員自行駕駛時，都會使駕駛員及其家人的安全.

Great, thank you. Our next question comes from Paul Gong from UBS. Please ask your question.

太好了謝謝。我們的下一個問題來自瑞銀集團的 Paul Gong。請提出你的問題。

(Spoken in Chinese) Two questions. The first one is regarding the future differentiation. Right now, there are several EV start-ups or have the [uniqueness]. How do you think going forward, when everyone is working on the autonomous driving, everyone is going to use LiDAR, everyone is going to produce a BEV as well so what would be the key competitiveness? Is it further innovation? Is it revolution of the technology, or is it more focused on the efficiency of the operation?

（中文口語）兩個問題。第一個是關於未來的差異化。現在，有幾家電動汽車初創公司或具有[獨特性]。你怎麼看未來，當每個人都在做自動駕駛，每個人都會用激光雷達，每個人都要做BEV，那麼關鍵的競爭力是什麼？是進一步的創新嗎？是技術的革命，還是更注重運營的效率？

The second question is regarding the globalization. We have observed that some peers have already expanded to European markets. What does Li Auto think of globalization both in the near-term plan as well as in the long one?

第二個問題是關於全球化。我們觀察到一些同行已經擴展到歐洲市場。理想汽車如何看待全球化的近期和長遠規劃？

(Interpreted) By the end of 2021, we pretty much validated ourselves and completed the 0-to-1 stage as a Company. We've been validating ourselves in the family [new] buyers' market and pretty much established the industry ceiling as the number one seller in the medium-to-large-sized SUV market.

（解釋）到 2021 年底，我們幾乎驗證了自己，並完成了公司從 0 到 1 的階段。我們一直在家庭[新]買家市場上驗證自己，並幾乎確立了行業天花板，成為中大型 SUV 市場的第一賣家。

Our key recipe for this success is our focus on the family market, our efficiency, our R&D capabilities and our software R&D capabilities. This is validated through sales while having a very low SG&A expense level.

我們取得成功的關鍵秘訣是我們對家庭市場的關注、我們的效率、我們的研發能力和我們的軟件研發能力。這通過銷售得到驗證，同時具有非常低的 SG&A 費用水平。

In the next couple of years, we'll be completing our 1-to-10 stage, as many of you are well aware of 2025 goals in volume and margins. To reach this goal, we will continue to play to our strengths, which is two things. One is, we understand the family market very well, and will expand our product line across the RMB200,000 to RMB500,000 price range by providing our products to more families in more segments and markets.

在接下來的幾年裡，我們將完成我們的 1 到 10 階段，因為你們中的許多人都很清楚 2025 年的銷量和利潤目標。為了達到這個目標，我們將繼續發揮我們的優勢，這是兩件事。一是，我們非常了解家庭市場，將通過向更多細分市場的更多家庭提供我們的產品，將我們的產品線擴展到人民幣 20 萬元至人民幣 50 萬元的價格區間。

The second one is our efficiency and R&D capabilities. As you can see, our R&D and new store opening pace has been on par with many of our competitors, but in the meantime, we're still delivering very healthy and profitable financial results.

第二個是我們的效率和研發能力。如您所見，我們的研發和新店開張速度與我們的許多競爭對手不相上下，但與此同時，我們仍在提供非常健康且有利可圖的財務業績。

In the meantime, which we admit, we have many weaknesses, which is what we will be working on over the next few years. First of all is R&D. We have already made many improvements. We've brought our autonomous driving and voice recognition inhouse by building a very strong, talented team. In the meantime, we've established R&D capabilities in zonal controllers like e-architecture. All of these are brought inhouse today.

與此同時，我們承認，我們有很多弱點，這就是我們將在未來幾年努力解決的問題。首先是研發。我們已經做了很多改進。通過建立一支非常強大、才華橫溢的團隊，我們將自動駕駛和語音識別引入了內部。同時，我們已經在電子架構等區域控制器方面建立了研發能力。今天，所有這些都被帶入內部。

We believe that we will continue to build these R&D capabilities in the technical area. In the meantime, the other weakness or area we want to work on is supply. Given the growth in the market, we'll be working on supply as well as manufacturing capabilities.

我們相信我們將繼續在技術領域建立這些研發能力。與此同時，我們想要解決的另一個弱點或領域是供應。鑑於市場的增長，我們將致力於供應和製造能力。

Finally on the topic of intelligent technologies, we believe that there is no shortcut in the market. One thing we've observed with intelligent technology is that it has three characteristics. First of all, users have no particular feeling of the technology when they buy the product. Secondly, if the experience is bad after they buy the product, they will very easily give up the product and lose all their confidence. And thirdly, if the product is good, they will very quickly find out that they cannot live without the product.

最後關於智能技術這個話題，我們認為市場沒有捷徑可走。我們觀察到的智能技術的一件事是它具有三個特徵。首先，用戶在購買產品時，對技術沒有特別的感覺。其次，如果他們購買產品後體驗不好，他們很容易放棄該產品並失去所有信心。第三，如果產品好，他們很快就會發現沒有產品他們就活不下去。

To make sure that we can deliver a competitive product in the intelligent technology area, we will focus on three capabilities, which we believe the Company has very well established. First of all is the product capability. It's very important to understand the user needs and continue to deliver products that will exceed their needs.

為確保我們能夠在智能技術領域提供有競爭力的產品，我們將專注於三項能力，我們認為這三項能力公司已經非常成熟。首先是產品能力。了解用戶需求並繼續提供超出他們需求的產品非常重要。

The second one is software and AI capabilities, which ultimately is the competition on talents, the bench of talents. We believe the most successful companies are the ones that can attract the best talents, are the ones where the best talents will most prefer to work.

第二個是軟件和AI能力，歸根結底是人才的競爭，人才的替補。我們相信最成功的公司是那些能夠吸引最優秀人才的公司，也是最優秀人才最願意工作的公司。

The third one is safe systems capabilities, and more specifically is the ability to develop operating systems. We believe with these three capabilities we will be able to maintain our core competency in both autonomous driving and intelligent cockpit. Thank you.

三是安全系統能力，更具體地說是操作系統開發能力。我們相信憑藉這三項能力，我們將能夠保持我們在自動駕駛和智能駕駛艙方面的核心競爭力。謝謝你。

Paul, let me take the second question about globalization. For our long-term strategy, we believe we are ultimately competing in a global market, that's for sure. For the very near future, very near term, we are focused on the China market for now.

保羅，讓我回答關於全球化的第二個問題。對於我們的長期戰略，我們相信我們最終是在全球市場上競爭，這是肯定的。在不久的將來，非常近期，我們目前專注於中國市場。

As I mentioned several times, we already have a dedicated team for the globalization strategy. They are doing three things. First, to identify the potential market for our product; second, to analyze what will be the right product mix for this product; and third, how to develop a business model so that we can achieve meaningful market share when we enter this market. Right now, this dedicated team is still developing the overall strategy.

正如我多次提到的，我們已經有一個專門負責全球化戰略的團隊。他們正在做三件事。第一，確定我們產品的潛在市場；其次，分析該產品的正確產品組合是什麼；第三，如何開發一種商業模式，以便我們在進入這個市場時能夠獲得有意義的市場份額。目前，這個敬業的團隊仍在製定總體戰略。

Thank you. Our next question comes from Yingbo Xu from CITIC. Please ask your question.

謝謝你。我們的下一個問題來自中信的Yingbo Xu。請提出你的問題。

(Spoken in Chinese) I have two questions about the product. One is about, we see the penetration rate of EV goes higher than similar like 20%. That means more consumers understand more about electronic vehicles or smart vehicles. What kind of change would that take for the users? Also, could you please give us more color about X01?

（用中文說）我有兩個關於產品的問題。一是，我們看到電動汽車的滲透率高於類似的 20%。這意味著更多的消費者更了解電動汽車或智能汽車。這會給用戶帶來什麼樣的變化？另外，你能給我們更多關於X01的顏色嗎？

The second question is about the BEV product that will be launched next year. We're thinking that from EREV to BEV is a huge change. Could you please give us some discussion on expectations of this new product? Thank you.

第二個問題是關於明年上市的BEV產品。我們認為從 EREV 到 BEV 是一個巨大的變化。能否請您談談對這款新產品的期待？謝謝你。

(Interpreted) On the first question, as we reach higher penetration in the new energy vehicle market, this is actually good news for the Company. The same product methodology will continue to apply.

（解讀）關於第一個問題，隨著我們在新能源汽車市場的滲透率越來越高，這對公司來說其實是個好消息。相同的產品方法將繼續適用。

As I said earlier, as we observe our users, there are three levels of demand. The first level are the explicit demands. The second level are the implicit demands, many of which are their pain points. The third level are demands that they don't even know exist.

正如我之前所說，根據我們對用戶的觀察，存在三個層次的需求。第一層次是明確的要求。第二層是隱性需求，很多是他們的痛點。第三層是他們甚至不知道存在的要求。

The way we observe these demands is we analyze and observe the users on rational and emotional levels and understand what they want and build products that will exceed their needs.

我們觀察這些需求的方式是從理性和情感層面分析和觀察用戶，了解他們想要什麼，並打造超出他們需求的產品。

Talking about X01, our core theme has been two things. One thing is to upgrade things that users really wanted on Li ONE and wanted to add to their Li ONE products. Secondly, we're delivering on new demands that are not yet met in the market today. These are things that users do not even realize that they want, but the moment that they see their products they realize, this is what I actually wanted.

談到 X01，我們的核心主題有兩件事。一件事是升級用戶在Li ONE上真正想要的東西，想要添加到他們的Li ONE產品中。其次，我們正在滿足當今市場尚未滿足的新需求。這些是用戶甚至沒有意識到他們想要的東西，但當他們看到他們的產品時，他們意識到，這就是我真正想要的。

The methodology will continue to remain the way it is, although the user needs are changing, and we will continue to follow that very closely.

儘管用戶需求正在發生變化，但該方法將繼續保持原樣，我們將繼續密切關注這一點。

These are some comments on the next new vehicle on range extended vehicle platform. I'll make a few comments on the electric vehicle product. The electric vehicle will focus on three different things. First of all is a 4C charging capability. The most important component will be the battery. We've spent a lot of effort to co-develop the battery with our key supplier, because the entire architecture and sales and charging capability heat management system will all be different. We've done extensive work in this area to ensure that the mass production of this battery will be successful.

這些是對增程車輛平台上的下一款新車的一些評論。我將對電動汽車產品發表一些評論。電動汽車將專注於三個不同的方面。首先是4C充電能力。最重要的組件將是電池。我們花了很多精力與我們的主要供應商共同開發電池，因為整個架構、銷售和充電能力熱管理系統都會有所不同。我們在這方面做了大量的工作，以確保這種電池的量產能夠成功。

The second component of our high-voltage platform is the 850-volt EV platform, which includes many different things, ranging from electric motors, integrating [PCBC] of rising voltage, lowering voltage, a heat management battery management system. All these things have never been provided before as a company.

我們高壓平台的第二個組成部分是 850 伏電動汽車平台，它包括許多不同的東西，從電動機、集成升壓、降壓的 [PCBC]、熱管理電池管理系統。所有這些東西以前從未作為一家公司提供過。

The third thing is a 400-kilowatt charging station and charging poles. We've done a lot of work to develop these charging poles to ensure that we can provide seamless experience for our user which connects the battery, the vehicle platform and the charging station.

第三件事是400千瓦的充電站和充電樁。我們做了大量工作來開發這些充電樁，以確保我們能夠為連接電池、車輛平台和充電站的用戶提供無縫體驗。

With these products, we'll be able to charge the cars in 10 minutes and deliver 400 kilometers of range.

有了這些產品，我們將能夠在 10 分鐘內為汽車充電並提供 400 公里的續航里程。

Our next question comes from Jiong Shao from Barclays. Please ask your question.

我們的下一個問題來自巴克萊銀行的邵炯。請提出你的問題。

(Spoken in Chinese) So thank you, management, for taking my question. My question is really about strategic positioning and product positioning. Management talked about the focus, having the best product for the family, is the family use case still the focus, remain the focus for the new products, including the BEV product? If it is, would that be enough for the longer-term sustainable growth and strategical positioning for the Company? Thank you.

（用中文說）所以謝謝管理層回答我的問題。我的問題實際上是關於戰略定位和產品定位的。管理層談到了重點，擁有最適合家庭的產品，家庭用例是否仍然是重點，仍然是新產品（包括 BEV 產品）的重點嗎？如果是，這是否足以實現公司的長期可持續增長和戰略定位？謝謝你。

(Interpreted) So the answer is yes, we will continue to focus on this market because we previously only validated ourselves at one particular price point in this market. But if you look at the entire market, when we defined the Li ONE product in 2016, the market size was only about 2 million units annually and last year the market has grown to 6 million. And we expect that by 2025, the market size will reach 10 million units per year.

（解釋）所以答案是肯定的，我們將繼續關注這個市場，因為我們之前只在這個市場的一個特定價位上驗證了自己。但是如果你看整個市場，我們在2016年定義Li ONE產品的時候，市場規模只有每年200萬台左右，去年已經增長到600萬台。並且我們預計到2025年，市場規模將達到每年1000萬台。

So this is a very healthy market for three reasons. (1) It has very big growth, as we talked about earlier and secondly is that there's enough BM or build materials in the market for us to deliver good experience for the users. And thirdly, it can still deliver very healthy gross margin for us as a company. So we believe this is a very attractive market that we'll continue to focus on.

因此，由於三個原因，這是一個非常健康的市場。 (1) 它有很大的增長，正如我們之前談到的，其次是市場上有足夠的 BM 或建築材料，我們可以為用戶提供良好的體驗。第三，它仍然可以為我們公司帶來非常可觀的毛利率。所以我們相信這是一個非常有吸引力的市場，我們將繼續關注。

So far, we've only really taken a very small scoop from the market, accounting for about 2% of market share in the market. Here we're talking about all passenger vehicle market, not just NEV, because we believe Li ONE not only competes with new energy vehicles, but we have the potential to replace all existing passenger vehicles above a RMB200,000 price point.

到目前為止，我們只真正從市場上獲得了非常小的勺子，約佔市場份額的 2%。這裡我們談論的是所有乘用車市場，而不僅僅是新能源汽車，因為我們認為理想不僅與新能源汽車競爭，而且我們有潛力取代所有 20 萬元以上價位的現有乘用車。

So there's still much work to do and our goal is to eventually reach at least 20% of the market, which is the time by which we will have finished our one to 10 stage as a company.

所以還有很多工作要做，我們的目標是最終達到至少 20% 的市場份額，屆時我們將完成公司的 1 到 10 階段。

Thank you. So as we've reached the end of our conference call, I'd like to turn the call back to the Company for closing remarks. Ms. Janet Chang, please go ahead.

謝謝你。因此，當我們的電話會議結束時，我想將電話轉回給公司以作結束語。請 Janet Chang 女士繼續。

Thank you once again for joining with us today. If you have any further questions, please feel free to contact Li Auto's Investor Relations team. Then that's all for today, I hope you have a great weekend.

再次感謝您今天加入我們。如果您有任何其他問題，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，希望你周末過得愉快。

Thank you, that does conclude our conference for today. Thank you for participating, you may all disconnect.

謝謝，今天的會議到此結束。感謝您的參與，你們可能都會斷開連接。

Portions of this transcript that are marked (interpreted) were spoken by

本抄本中標記（解釋）的部分由

an interpreter present on the live call. The interpreter was provided by the

實時通話中的口譯員。口譯員由

Company sponsoring this Event.

公司贊助本次活動。