理想汽車 (LI) 2022 Q1 法說會逐字稿

Hello, ladies and gentlemen, thank you for standing by for Li Auto's first quarter 2022 earnings conference call. (Operator Instructions). I'll now turn the call over to your host, Ms. Janet Zhang, Investor Relations Director of Li Auto. Please go ahead, Janet.

女士們，先生們，大家好，感謝大家對理想汽車2022年第一季度財報電話會議的支持。 （操作員說明）。我現在將電話轉給主持人理想汽車投資者關係總監張女士。請繼續，珍妮特。

Thank you, Amber. Good evening and good morning, everyone. Welcome to Li Auto's first quarter 2022 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2022年第一季度財報電話會議。公司的財務和經營業績已於今天早些時候發佈在新聞稿中，並發佈在公司的投資者關係網站上。

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 discussion.

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 先生首先發表了準備好的講話。我們的創始人兼首席執行官李向先生將參加問答討論。

Before I continue, please be reminded that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Company's actual results may be materially different from the views expressed today. Further information regarding risks and uncertainties is included in certain filings of the Company with US Securities and Exchange Commission.

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風險和不確定性。因此，本公司的實際結果可能與今天所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 statement except as required under applicable law. 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, which contains a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures.

除適用法律要求外，本公司不承擔更新任何前瞻性陳述的任何義務。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公認會計原則措施與可比公認會計原則措施的對賬。

With that, I will now turn the call over to our President. Please go ahead, Kevin.

有了這個，我現在將把電話轉給我們的總統。請繼續，凱文。

Thank you, Janet. Hello, everyone, and thank you for joining our call today. In the first quarter of 2022, the EV boom continued. According to the China Passenger Car Association, or CPCA, retail sales of new energy passenger vehicles in China reached 1.07 million in the first quarter of 2022, representing a year-over-year increase of 146.6%. The EV's penetration rate climbed to a record high of 28.2% in March 2022.

謝謝你，珍妮特。大家好，感謝您今天加入我們的電話會議。 2022年第一季度，電動汽車熱潮仍在繼續。根據中國乘用車協會的數據，2022年一季度中國新能源乘用車零售量達到107萬輛，同比增長146.6%。 2022 年 3 月，電動汽車的滲透率攀升至 28.2% 的歷史新高。

As a leader in the new energy vehicle market, we are excited to be one of the driving forces behind the industry's continued innovation and evolution. Thanks to our Li ONE's outstanding features and the compelling appeal to family users, we delivered 31,716 Li ONEs during the quarter, amid industry-wide supply chain challenges, up 152.1% year-over-year and achieved a total revenue of RMB9.56 billion, 167.5% higher than the first quarter of 2021.

作為新能源汽車市場的領導者，我們很高興成為行業持續創新和發展的驅動力之一。得益於Li ONE的出色功能和對家庭用戶的強烈吸引力，我們在全行業供應鏈挑戰下，本季度交付了31,716台Li ONE，同比增長152.1%，實現總收入人民幣95.6億元，比 2021 年第一季度高出 167.5%。

The past several months was undoubtedly a difficult period for all of us, given the headwinds caused by the COVID-19 pandemic. We have been no exception to the supply chain disruptions and rising material and logistics costs that challenged the entire auto industry. Our Changzhou manufacturing base is located in the center of the Yangtze Delta region, which is home to over 80% of our parts suppliers, especially in the cities of Shanghai and Kunshan.

鑑於 COVID-19 大流行造成的不利影響，過去幾個月對我們所有人來說無疑是一段艱難的時期。供應鏈中斷以及不斷上漲的材料和物流成本對整個汽車行業構成挑戰，我們也不例外。我們的常州製造基地位於長三角地區的中心地帶，是我們80%以上的零部件供應商的所在地，尤其是在上海和崑山這兩個城市。

The COVID-19 resurgence in this area since late March has incapacitated some suppliers in Shanghai and Kunshan. Some of them completely shut down their production and delivery, making it impossible for us to maintain production after exhausting our parts inventory. This materially affected our production in April, resulting in delayed deliveries to our customers. As a result, we only completed 4167 deliveries in April.

自 3 月下旬以來，該地區的 COVID-19 死灰復燃，使上海和崑山的一些供應商失去了能力。他們中的一些人完全關閉了生產和交付，使我們在用完零件庫存後無法維持生產。這嚴重影響了我們 4 月份的生產，導致向我們的客戶交付延遲。結果，我們在 4 月份僅完成了 4167 次交付。

In light of the encouraging signs of the recovery from the pandemic in the Yangtze Delta region, we expect our total deliveries in the second quarter of this year to be between 21,000 to 24,000 vehicles. We should note there are still uncertainties with respect to the pace of the recovery.

鑑於長三角地區從大流行中復甦的令人鼓舞的跡象，我們預計今年第二季度我們的總交付量將在 21,000 至 24,000 輛之間。我們應該注意到，復甦的步伐仍然存在不確定性。

While we are doing everything in our power to increase our production and overcome supply chain constraints, aiming to shorten the delivery waiting time for Li ONE users while meeting all pandemic prevention and containment requirements from the government, to help offset the sharply rising raw material costs, particularly the battery costs, we raised the price of Li ONE by RMB11,800 effective 1 April this year.

在全力增產、突破供應鏈限制的同時，力求在滿足政府各項防疫防控要求的同時，縮短Li ONE用戶的交貨等待時間，以幫助抵消原材料成本的急劇上漲，特別是電池成本，我們從今年 4 月 1 日起將 Li ONE 的價格上調了 11,800 元人民幣。

Moving to the profitability, in the first quarter our gross margin remained robust at 22.6%. Our R&D expenses increased 167% year-over-year to RMB1.37 billion, accounting for over 14% of our total revenues as we continue to enhance our strategic investments in autonomous driving, intelligent cockpit and electrification.

轉向盈利能力，第一季度我們的毛利率保持強勁，為 22.6%。我們的研發費用同比增長167%至人民幣13.7億元，佔總收入的14%以上，我們繼續加大在自動駕駛、智能座艙和電氣化方面的戰略投資。

The increase in R&D, together with our direct sales and servicing network expansion, resulted in a 151.5% increase in our operating expenses year-over-year. Despite the deliberate in expenses to drive growth, our net cash flow from operations was positive for the eighth consecutive quarter at RMB1.83 billion, thanks to our outstanding manufacturing and operational efficiency.

研發的增加，加上我們的直銷和服務網絡擴張，導致我們的運營費用同比增長 151.5%。儘管有意增加開支以推動增長，但由於我們出色的製造和運營效率，我們的經營現金流淨額連續第八個季度為正，為人民幣 18.3 億元。

In addition to propelling growth, our expanding direct sales and servicing network serves as an important and efficient interface for us to gain insight into our users' needs and desires. We think like a user. This perspective informs and motivates us as we strive to continually please users with updated features, product designs and services.

除了推動增長外，我們不斷擴大的直銷和服務網絡是我們深入了解用戶需求和願望的重要且高效的界面。我們像用戶一樣思考。當我們努力通過更新的功能、產品設計和服務不斷取悅用戶時，這種觀點會啟發和激勵我們。

As of 30 April 2022, we have 225 retail stores covering 106 cities and 292 servicing centers and Li Auto-authorized body and paint workshops operating in 211 cities. Going forward, we will continue to grow our sales network at a cadence that accommodates both of our objectives, to capture market demand and the risk related to the ongoing pandemic.

截至 2022 年 4 月 30 日，我們在 211 個城市擁有 225 家零售店，覆蓋 106 個城市和 292 個維修中心和理想汽車授權的車身和油漆車間。展望未來，我們將繼續以符合我們兩個目標的節奏發展我們的銷售網絡，以捕捉市場需求和與持續流行病相關的風險。

With respect to R&D, since we released our OTA 3.0 to introduce our full-stack NOA on 1 December last year and become the third automotive OEM globally to develop a full-stack self-developed NOA, more than 100,000 2021 Li ONE users have enjoyed NOA-assisted driving as of the end of April. We are pleased to see our self-development process contribute to the consistent improvement in our NOA's safety and functionalities.

研發方面，自去年12月1日發布OTA 3.0引入全棧NOA，成為全球第三家自主研發全棧NOA的車企，2021年Li ONE用戶已超過10萬截至 4 月底的 NOA 輔助駕駛。我們很高興看到我們的自我開發過程有助於我們 NOA 的安全性和功能的持續改進。

Its penetration rate has reached to 61.3%, which means that 61.3% of our users utilize NOA on the highways once it's available. The data gathered from the NOA mileage in real-life driving scenarios will play a crucial role in our future ADAS development and facilitate our ultimate goal of fully autonomous driving.

它的滲透率已經達到了 61.3%，這意味著我們 61.3% 的用戶在高速公路上使用 NOA 時。在現實駕駛場景中從 NOA 里程收集的數據將在我們未來的 ADAS 開發中發揮關鍵作用，並促進我們實現完全自動駕駛的最終目標。

The NVIDIA Orin-X chipset and the LiDAR on our next full-size SUV, the L9, will further improve our vehicles' autonomous driving capabilities. Our R&D efforts to develop our range extension system, chassis and domain controller in-house are also bearing fruit. These R&D trends, among others, will be unveiled in our second production model, the L9.

我們下一代全尺寸 SUV L9 上的 NVIDIA Orin-X 芯片組和 LiDAR 將進一步提高我們車輛的自動駕駛能力。我們在內部開發範圍擴展系統、機箱和域控制器的研發工作也取得了成果。這些研發趨勢等將在我們的第二款生產車型 L9 中揭曉。

That leads us to our update on products. Our first model, Li ONE, has been a proven success, catering to the needs of families in China. After Li ONE emerged as one of the industry's best SUV choices for family users, we built on our strength and are getting ready to launch our second production model, the L9. Despite a few pandemic-related bumps in the road, we are forging ahead with our plan to commence the delivery of the L9 in the third quarter.

這導致我們對產品進行更新。我們的第一個型號 Li ONE 已經證明是成功的，可以滿足中國家庭的需求。在Li ONE成為行業最佳家庭用戶SUV選擇之一後，我們憑藉自身實力，準備推出我們的第二款量產車型L9。儘管在路上遇到了一些與大流行相關的顛簸，但我們正在推進我們在第三季度開始交付 L9 的計劃。

The L9 is a flagship SUV for family users, based on our new generation EREV platform, offering best-in-class combination of performance, safety and intelligence. As just mentioned, it features our fully self-developed range extension system, chassis control system and central vehicle domain controller, which empower its outstanding dynamic performance and drivability.

L9是一款面向家庭用戶的旗艦SUV，基於我們新一代的EREV平台，提供一流的性能、安全和智能組合。如前所述，它配備了我們完全自主研發的增程系統、底盤控制系統和中央車輛域控制器，賦予其出色的動態性能和駕駛性能。

In keeping with our fundamental belief that safety should always be standard, not optional, every L9 is built to our strictest safety standards and comes equipped with our upgraded autonomous driving system, Li AD Max, capable of all-scenario NOA for enhanced driving safety and convenience.

秉承我們的基本信念，即安全始終是標準，而不是可選，每輛 L9 都按照我們最嚴格的安全標準製造，並配備了我們升級的自動駕駛系統 Li AD Max，能夠實現全場景 NOA，以增強駕駛安全性和方便。

The L9 also comes standard with first-class premium features such as the sumptuous seats, a high-performance audio system and an all-new three-dimensional interactive experience. Above all, the L9 aims to meet the needs of more family users and delight users by proactively satisfying desires that they may never knew exist.

L9還標配了豪華座椅、高性能音響系統和全新的三維交互體驗等一流的高級功能。最重要的是，L9旨在滿足更多家庭用戶的需求，並通過主動滿足他們可能不知道存在的願望來取悅用戶。

Since we released the teaser information for the vehicle, we have received a great deal of positive customer feedback and we can't wait to deliver our L9 and amaze our users with all its features and benefits.

自從我們發布該車輛的預告信息以來，我們已經收到了大量積極的客戶反饋，我們迫不及待地要交付我們的 L9 並以其所有功能和優勢讓我們的用戶驚嘆不已。

In parallel with our EREV development, we are also investing in R&D for next generation electric vehicle technology, including high C-rate battery, high-voltage platform and ultrafast charging technology, with the goal of building an end-to-end BEV and charging ecosystem that can support a driving range of more than 400 kilometers with only 10 minutes charging.

在我們開發 EREV 的同時，我們還投資於下一代電動汽車技術的研發，包括高 C 倍率電池、高壓平台和超快充電技術，目標是打造端到端的 BEV 和充電充電10分鐘即可支持400多公里續航里程的生態系統。

As a leader in the new energy vehicle industry, we are dedicated to leading the future of mobility. We are also making a positive impact on the environment of our society. On 19 April we released our first ESG report, which marks yet another step forward in our sustainability journey and underscores our resolve to operate responsibly.

作為新能源汽車行業的領跑者，我們致力於引領出行的未來。我們也在對社會環境產生積極影響。 4 月 19 日，我們發布了第一份 ESG 報告，這標誌著我們在可持續發展道路上又向前邁進了一步，並強調了我們負責任地運營的決心。

In addition, we are pleased to report that our Class A ordinary shares were included in the Shenzhen- and Shanghai-Hong Kong Stock Connect programs on 14 March and 25 April this year respectively. This allows us to access a broader investor base and share our growth trajectory and further success with users, partners and investors in mainland China via the financial market.

此外，我們很高興地報告，我們的 A 類普通股分別於今年 3 月 14 日和 4 月 25 日被納入深港通和滬港通計劃。這使我們能夠接觸到更廣泛的投資者基礎，並通過金融市場與中國大陸的用戶、合作夥伴和投資者分享我們的增長軌跡和進一步的成功。

Looking forward, we will continue to create the right product for family users, persevering through challenges with a laser focus on operational and financial efficiency, propelling progress and inspiring happiness along the way.

展望未來，我們將繼續為家庭用戶創造合適的產品，堅持不懈地應對挑戰，專注於運營和財務效率，推動進步，激發幸福。

With that, I would like to turn it over to our CFO, Johnny, for a closer look at our financial performance. Please go ahead.

有了這個，我想把它交給我們的首席財務官約翰尼，以便更仔細地了解我們的財務業績。請繼續。

Thank you, Kevin. Hello, everyone. I will now go over some of our financial results for the first quarter of 2022. To be mindful of the length of this call, I will address our financial highlights here and encourage you to refer to our earnings press release which is posted online for additional details.

謝謝你，凱文。大家好。我現在將回顧我們 2022 年第一季度的一些財務業績。為了注意這次電話會議的長度，我將在這裡討論我們的財務亮點，並鼓勵您參考我們在線發布的收益新聞稿以獲取更多信息細節。

Total revenues in the first quarter of 2022 were RMB9.56 billion, or US$1.51 billion, representing an increase of 167.5% from RMB3.58 billion in the first quarter of 2021. This included RMB9.31 billion, or US$1.47 billion, of vehicle sales in the first quarter of 2022, an increase of 168.7% from the first quarter of last year.

2022年第一季度總收入為95.6億元人民幣，合15.1億美元，比2021年第一季度的35.8億元人民幣增長167.5%。其中，93.1億元人民幣，合14.7億美元2022年第一季度汽車銷量，比去年第一季度增長168.7%。

The increase in vehicle sales over the first quarter of 2021 was mainly attributable to the increase in vehicle deliveries in the first quarter of 2021. On a quarter-over-quarter basis, total revenues and vehicle sales decreased 10% and 10.3% respectively, primarily due to the decrease in vehicle deliveries in the first quarter of 2022.

2021年第一季度汽車銷量增長主要是由於2021年第一季度汽車交付量增加。總收入和汽車銷量環比分別下降10%和10.3%，主要是由於 2022 年第一季度的車輛交付量減少。

Revenues from other sales and services were RMB253.4 million, or US$40 million, in the first quarter of 2022, representing an increase of 127.72% from RMB111.5 million in the first quarter of 2021 and an increase of 3.6% from RMB244.7 million in the fourth quarter of 2021.

2022年第一季度其他銷售和服務收入為人民幣2.534億元，合4,000萬美元，較2021年第一季度的人民幣1.115億元增長127.72%，較人民幣244元增長3.6%。 2021 年第四季度為 700 萬。

The increase in revenue from other sales and services over the first quarter of 2022 was mainly attributable to the increased sales of charging stalls, accessories and services in line with higher accumulated vehicle sales.

2022年第一季度其他銷售和服務收入的增長主要是由於隨著累計汽車銷量的增加，充電樁、配件和服務的銷售增加。

Cost of sales in the first quarter of 2022 was RMB7.4 billion, or US$1.17 billion, representing an increase of 150.1% year-over-year and a decrease of 10.2% quarter-over-quarter.

2022年第一季度銷售成本為74億元人民幣，合11.7億美元，同比增長150.1%，環比下降10.2%。

Gross profit in the first quarter of 2022 was RMB2.16 billion, or US$341.3 million, representing an increase of 250.9% year-over-year and a decrease of 9.1% quarter-over-quarter.

2022年第一季度毛利為人民幣21.6億元，即3.413億美元，同比增長250.9%，環比下降9.1%。

Vehicle margin in the first quarter of 2022 was 22.4%, compared with 16.9% in the same quarter of 2021 and 22.3% in the fourth quarter of 2021. The increase in vehicle margin over the first quarter of 2021 was driven by higher average selling price attributable to the increase in vehicle deliveries of 2021 Li ONE since its release in May 2021.

2022 年第一季度的汽車利潤率為 22.4%，而 2021 年同期為 16.9%，2021 年第四季度為 22.3%。2021 年第一季度汽車利潤率的增長是由更高的平均售價推動的歸因於2021年李ONE自2021年5月發布以來2021年車輛交付量的增加。

Gross margin in the first quarter of 2022 was 22.6%, compared to 17.3% in the first quarter of last year and 22.4% in the first quarter of 2021. Operating expenses in the first quarter of 2022 were RMB2.58 billion or $406.5 million, representing an increase of 151.5% year over year and an increase of 9.4% quarter over quarter.

2022年第一季度毛利率為22.6%，去年第一季度為17.3%，2021年第一季度為22.4%。2022年第一季度運營費用為人民幣25.8億元或4.065億美元，同比增長 151.5%，環比增長 9.4%。

Research and development expenses in the first quarter of 2022 were RMB1.37 billion or $216.7 million, representing an increase of 167% year over year and an increase of 11.7% quarter over quarter. The increase in research and development expenses over the first quarter of last year was primarily driven by the increased employee compensation as a result of our growing number of research and development staff as well as increased cost associated with new product development.

2022年第一季度研發費用為人民幣13.7億元或2.167億美元，同比增長167%，環比增長11.7%。去年第一季度研發費用的增加主要是由於我們的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。

The increase in research and development expenses over the fourth quarter of last year was mainly driven by increased employee compensation.

研發費用較去年第四季度增加的主要原因是員工薪酬增加。

Selling, general and administrative expenses in the first quarter of 2022 were RMB1.2 billion or $189.8 billion, representing an increase of 135.9% year over year and an increase of 6.8% quarter over quarter. The increase in selling, general and administrative expenses over the first quarter of 2021 was primarily driven by increased employee compensation as a result of our growing number of staff, as well as increased marketing and promotional activities and rental expenses associated with the expansion of the Company's sales network.

2022年第一季度銷售、一般和管理費用為人民幣12億元或1898億美元，同比增長135.9%，環比增長6.8%。與 2021 年第一季度相比，銷售、一般和管理費用的增加主要是由於我們的員工人數增加導致員工薪酬增加，以及與公司擴張相關的營銷和促銷活動以及租金費用增加銷售網絡。

Loss from operations in the first quarter of 2022 was RMB413.1 million or $65.2 million compared with RMB407.7 million loss from operations in the first quarter of 2021 and RMB24.1 million income from operations in the fourth quarter of 2021.

2022年第一季度的經營虧損為人民幣4.131億元或6520萬美元，而2021年第一季度的經營虧損為人民幣4.077億元，2021年第四季度的經營收入為人民幣2410萬元。

Net loss was RMB10.9 million or $1.7 million in the first quarter of 2022 compared with RMB360 million net loss in the first quarter of 2021 and RMB295.5 million net income in the fourth quarter of 2021.

2022年第一季度的淨虧損為人民幣1,090萬元或170萬美元，而2021年第一季度的淨虧損為人民幣3.6億元，2021年第四季度的淨收入為人民幣2.955億元。

Turning to our balance sheet and cash flow, our cash and cash equivalents, restricted cash, time deposits and short-term investments totaled RMB51.19 billion or $8.07 billion as of March 31, 2022.

就我們的資產負債表和現金流而言，截至 2022 年 3 月 31 日，我們的現金及現金等價物、受限現金、定期存款和短期投資總計人民幣 511.9 億元或 80.7 億美元。

Operating cash flow in the first quarter of 2022 was RMB1.83 billion or $289.3 million. Free cash flow was RMB502 million or $79.2 million in the first quarter of 2022.

2022年第一季度經營現金流為18.3億元人民幣或2.893億美元。 2022 年第一季度的自由現金流為 5.02 億元人民幣或 7920 萬美元。

Now for our business outlook. For the second quarter of 2022, the Company expects the deliveries to be between 21,000 and 24,000 vehicles, representing an increase of 19.5% to 36.6% from the second quarter of 2021. The Company also expects second quarter total revenues to be between RMB6.16 billion and RMB7.04 billion or $972.3 million and $1.11 billion, representing an increase of 22.3% to 39.8% from the second quarter of last year.

現在是我們的業務前景。公司預計 2022 年第二季度交付量在 21,000 至 24,000 輛之間，較 2021 年第二季度增長 19.5% 至 36.6%。公司還預計第二季度總收入在人民幣 6.16 元之間億元和人民幣 70.4 億元，即 9.723 億元和 11.1 億元，比去年第二季度增長 22.3% 至 39.8%。

This business outlook reflects the Company's current and preliminary view on the business situation and market condition, in particular the encouraging signs of recovery from the resurging pandemic in the Yangtze Delta region, which are all subject to change due to uncertainties related to factors such as the pace of pandemic recovery, among others.

該業務展望反映了公司對業務形勢和市場狀況的當前和初步看法，尤其是長三角地區從新冠肺炎疫情中復甦的令人鼓舞的跡象，這些都可能因受疫情等不確定因素的影響而發生變化。大流行恢復的速度等。

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

我現在將把電話轉給接線員並開始問答環節。謝謝你。

(Operator Instructions) Our first question comes from the line of Fei Fang from Goldman Sachs. Please ask your question.

（操作員說明）我們的第一個問題來自高盛的方飛。請提出你的問題。

(Spoken in Chinese) Great quarter. I have two questions, first about the business outlook with the broader market level assumptions that management are working with in terms of both supply and demand. With the specific launch timing for L9, how will production ramp up? Any comment on the broader market environment would be very helpful.

（用中文講）很棒的季度。我有兩個問題，首先是關於管理層在供需方面正在處理的更廣泛市場水平假設的業務前景。隨著 L9 的具體發佈時間，產量將如何增加？對更廣泛的市場環境的任何評論都會非常有幫助。

The second is about margin. The first quarter margin was a beat. Kevin discussed a retail price increase in April. Can you refresh us on the margin guidance from here? Thank you.

二是關於保證金。第一季度的利潤率是一個節拍。凱文在 4 月份討論了零售價格的上漲。您能從這裡更新我們的保證金指導嗎？謝謝你。

Thank you, Fang Fei. This is Kevin. Thank you for your question. Your first question, in fact the outlook we gave just now is based on our expectation of the recovery of the production of our suppliers in Yangtze Delta region. You can see from the end of April till now, although a lot of suppliers are still struggling to recover, we already see some of the positive signs that at least half of our suppliers already resumed their production. Therefore, there still are uncertainties for the next step.

謝謝你，方飛。這是凱文。謝謝你的問題。你的第一個問題，其實我們剛才給出的展望是基於我們對長三角地區供應商生產恢復的預期。你可以看到，從4月底到現在，雖然很多供應商還在艱難地恢復，但我們已經看到了一些積極的跡象，我們至少有一半的供應商已經恢復生產。因此，下一步仍存在不確定性。

In terms of the orders, we have enough orders on hand. Right now, the single biggest risk is still the production of our suppliers.

在訂單方面，我們手頭有足夠的訂單。目前，最大的風險仍然是我們供應商的生產。

In terms of the March market launch plan for L9, as we just mentioned, in the third quarter of this year L9 will be delivered to our customers.

關於L9的3月上市計劃，我們剛才提到，今年第三季度L9將交付給我們的客戶。

For the overall EV business, behind us we already see that in the past two quarters we have already seen very strong growth, both the production and the consumption. Looking to the future, I think there are uncertainties. First of all is the recovery of the supply chain. On the other hand, if the pandemic persists for a longer time, our fear is that consumers' spending desire will reduce. That's another thing we are monitoring closely.

對於整體電動汽車業務，我們已經看到，在過去兩個季度，我們已經看到了非常強勁的增長，無論是生產還是消費。展望未來，我認為存在不確定性。首先是供應鏈的恢復。另一方面，如果疫情持續時間更長，我們擔心的是消費者的消費意願會減弱。這是我們正在密切關注的另一件事。

Your second question, right now is not a time for us to provide another updated guidance for our gross margin. Thank you.

您的第二個問題，現在不是我們為我們的毛利率提供另一個更新指導的時候。謝謝你。

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

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) I've got two questions. The first question is about the (inaudible) strategy, because we think the production recovery [appears] as a matter of time, but has Li Auto taken any precautions, for example, reviewing or changing your current sourcing strategies in the wake of the recent disruption in Yangtze River Delta region? As Kevin mentioned, 80% of our suppliers are currently located there. Any thoughts on further diversification in China or offshore?

（用中文說）我有兩個問題。第一個問題是關於（聽不清）戰略，因為我們認為生產恢復 [出現] 只是時間問題，但理想汽車是否採取了任何預防措施，例如，在最近的長三角地區混亂？正如凱文所說，我們 80% 的供應商目前都位於那裡。關於在中國或離岸進一步多元化的想法？

A second question is about potential price hike or margin pressure because on top of the RMB11,800 price hike of Li ONE since April, is there any pressure of a further price adjustment or (inaudible) likely for the price hike of key components, for example, batteries into second half, especially as production costs have substantially increased recently?

第二個問題是關於潛在的價格上漲或利潤率壓力，因為除了李一ONE自4月以來的11,800元人民幣價格上漲之外，是否存在進一步調價的壓力或（聽不清）關鍵部件價格上漲的可能性，對於例如，電池進入下半年，特別是最近生產成本大幅增加？

Thank you, Tim. This is Kevin again. First of all, for the supply chain management, in fact in the past we already have the measurement to try to qualify more suppliers to supply us, so that will not change. Right now, of course with the pandemic we will definitely consider some short-term measurement to counter the impact, because there are still uncertainties of the recovery of the pandemic in front of us.

謝謝你，蒂姆。這又是凱文。首先，對於供應鏈管理來說，其實過去我們已經有了衡量標準，試圖讓更多的供應商來供應我們，所以這不會改變。眼下，當然，面對疫情，我們肯定會考慮一些短期措施來應對影響，因為擺在我們面前的大流行恢復的不確定性仍然存在。

For the long term, I don't think we will take any dramatic measurement to change our supply change management strategy, because the pandemic we think still is a one-time issue for us and the supply chain strategy is a long-term thing.

從長遠來看，我認為我們不會採取任何重大措施來改變我們的供應變更管理策略，因為我們認為大流行對我們來說仍然是一次性問題，而供應鏈戰略是長期的事情。

For the price adjustment, in fact with the 2021 Li ONE actually when we increased the price on April 1, we already took into consideration all the foreseeable material cost increases, but we'll continue to closely monitor the [volatility] of the cost. Right now, we don't see another need to further change our price, but that's based on the current information we have.

此次調價，其實我們在4月1日提價的時候，其實對於2021款李ONE，我們已經考慮到了所有可預見的材料成本上漲，但我們會繼續密切關注成本的[波動性]。目前，我們認為不需要進一步改變我們的價格，但這是基於我們現有的信息。

Our next question comes from Yuqian Ding from HSBC. Please go ahead.

我們的下一個問題來自匯豐銀行的丁玉倩。請繼續。

(Spoken in Chinese) First is on the orderbook and the demand outlook. What's the new orderbook momentum post the price hike? How would the new orderbook in April compare to January? Looking ahead, how would management expect high-end pricing category EV demand in second half looks like more (inaudible) back-end loaded?

（用中文講）首先是關於訂單和需求展望。價格上漲後的新訂單動力如何？ 4 月份的新訂單與 1 月份相比如何？展望未來，管理層如何預期下半年高端定價類別的電動汽車需求看起來會更多（聽不清）後端負載？

The second question is on the product cycle and product strategy. We may see L9 coming soon and next year would be a big product cycle launching year. Will we have your insight on how we plan the five new models value proposition in the coming 18 months, and the conviction or the product philosophy to enable them all potentially the segment winner?

第二個問題是關於產品週期和產品戰略。我們可能會看到 L9 即將推出，明年將是一個重要的產品週期發布年。您能否了解我們如何計劃未來 18 個月內的五款新車型價值主張，以及使它們都成為細分市場贏家的信念或產品理念？

Thank you. This is Kevin. I will take the first question and leave the second question to Li Xiang. As we all know that on April 1 we increased our price. Naturally, a lot of our sales leads were consumed in the end of March. In the beginning of April, because we restarted the sales lead pipeline, the first half of April was a little bit slow. But since the last week of April and also the first week of May, we already see a very strong comeback of the order intake. The only exception is Shanghai because the pandemic stopped us from taking orders.

謝謝你。這是凱文。我先回答第一個問題，把第二個問題留給李想。眾所周知，4 月 1 日我們提高了價格。自然，我們的很多銷售線索在 3 月底就被消耗掉了。 4月初，因為我們重啟了銷售線索，4月上半月有點慢。但自 4 月的最後一周和 5 月的第一周以來，我們已經看到訂單量的強勁回升。唯一的例外是上海，因為大流行使我們無法接受訂單。

Overall, we are still very confident that the demand for Li ONE will continue to be very strong. Overall, for the high-end [EV] market, unless the pandemic persists a very long time and hurts the economy very badly, otherwise we think the demand will continue to be stable. But from our side, because our Li ONE and also our incoming L9, the product competitiveness is very strong. Therefore, despite the demand side fluctuation, we still have a very strong confidence that these two products will do very good this year in the market.

總體而言，我們仍然非常有信心，對 Li ONE 的需求將繼續非常強勁。總體而言，對於高端 [EV] 市場，除非疫情持續很長時間並且對經濟造成非常嚴重的傷害，否則我們認為需求將繼續保持穩定。但是在我們這邊，因為我們的李ONE，還有我們即將上市的L9，產品競爭力是非常強的。因此，儘管需求端出現波動，但我們仍然有很強的信心，這兩款產品今年在市場上的表現會非常好。

(Interpreted) When we launched our first product by the end of 2019, it was one single product, which became a big success. But from the time on, we started to look at our product portfolio as a combination of different products, and therefore, since then, we started developing five different platforms to support our product portfolio, including the range extended platform, 800-volt high voltage electric vehicle platform, the autonomous driving platform, smart space platform, and our electric E-architecture platform.

（解讀）當我們在 2019 年底推出我們的第一款產品時，它是一個單一的產品，它取得了巨大的成功。但從那時起，我們開始將我們的產品組合視為不同產品的組合，因此，從那時起，我們開始開發五種不同的平台來支持我們的產品組合，包括範圍擴展平台、800 伏高壓電動汽車平台、自動駕駛平台、智能空間平台和我們的電動 E 架構平台。

All these five platforms combined together support our wide range of products across different price ranges.

所有這五個平台結合在一起支持我們在不同價格範圍內的廣泛產品。

So, by 2021, if you look at Li ONE as a product, in the RMB300,000 to RMB400,000 in the EV market, it already had a 30% market share and is still increasing, and that's our standard for a successful hit product, and we think that's a very comfortable market share in the target market.

所以，到2021年，如果把Li ONE作為一個產品來看，在30萬到40萬的EV市場，它已經佔據了30%的市場份額，而且還在不斷增加，這就是我們成功的標準。產品，我們認為這是目標市場中非常舒適的市場份額。

With that in mind, we want to continue to deliver hit products in every price range within our target markets.

考慮到這一點，我們希望繼續在目標市場的每個價格範圍內提供熱門產品。

We look at our product portfolio with two perspectives. The first one is that we pair a different body type with different energy sources. By that I mean, pure electric vehicles will have one body type, and extended range vehicles would have a different body type. So, when we started building range extender vehicles, we realized that the best body type was SUVs, because neither sedans or MPVs were a good fit from a packaging standpoint for range extended vehicles.

我們從兩個角度看待我們的產品組合。第一個是我們將不同的體型與不同的能源配對。我的意思是，純電動汽車將具有一種車身類型，而增程式汽車將具有不同的車身類型。因此，當我們開始製造增程車時，我們意識到最好的車身類型是 SUV，因為從包裝的角度來看，轎車和 MPV 都不適合增程車。

By the same logic, when it comes to electric vehicles, we realized that big SUVs are no longer a good fit, because for energy efficiency reasons, and therefore, when we deliver our first electric vehicle, you will see a completely new body type that we believe is best optimized for pure electric vehicles.

同樣的邏輯，當談到電動汽車時，我們意識到大型 SUV 不再適合，因為出於能源效率的原因，因此，當我們交付我們的第一輛電動汽車時，您會看到一種全新的車身類型，我們認為最適合純電動汽車。

With this combination we believe there will be no cannibalization between our own electric vehicle and range extender vehicle product portfolios. With those, we will completely cover the RMB200,000 to RMB500,000 target market.

通過這種組合，我們相信我們自己的電動汽車和增程器汽車產品組合之間不會相互蠶食。有了這些，我們將完全覆蓋20萬到50萬的目標市場。

That was our first strategy, and the second strategy is with respect to price range. With the goal of covering the entire RMB200,000 to RMB500,000 price range, in every RMB100,000 segment, we will have one hit product, one in range extended and one in pure electric.

這是我們的第一個策略，第二個策略是關於價格範圍的。以覆蓋20萬元到50萬元的價格區間為目標，每10萬元的細分市場，我們將推出一款主打產品、一款增程產品和一款純電動產品。

We had a good start, because our first product was in the RMB300,000 price range, so from there we can go up to RMB400,000 to RMB500,000, and we can also go down to between RMB200,000 and RMB300,000. So, in every segment, as I said earlier, there will be one EV and one REV, and they will all be built based on those five platforms I mentioned earlier - the range extended vehicle platform, the high voltage electric vehicle platform, autonomous driving platform, smart space platform and E-Architecture platform.

我們有一個好的開始，因為我們的第一個產品在30萬元的價格區間，所以從那裡我們可以上到40萬元到50萬元，我們也可以降到20萬元到30萬元之間。 .所以，正如我之前所說，在每個細分市場中，都會有一款 EV 和一款 REV，它們都將基於我之前提到的這五個平台——增程車平台、高壓電動車平台、自動駕駛平台、智慧空間平台和E-Architecture平台。

So, by analogy, you can see our product portfolio is very similar to iPhone, where they have one key concept and platform, and from there on it covers all different price ranges, with the iPhone 12, iPhone 12 Pro, iPhone 12 Pro Max, and even the iPhone Mini.

因此，通過類比，您可以看到我們的產品組合與 iPhone 非常相似，它們都有一個關鍵概念和平台，從那裡開始涵蓋所有不同的價格範圍，包括 iPhone 12、iPhone 12 Pro、iPhone 12 Pro Max ，甚至是 iPhone Mini。

In every price range you can see the product is absolute leader in that market segment, and that has been our role and our goal and philosophy since three years ago.

在每個價格範圍內，您都可以看到該產品是該細分市場的絕對領導者，這就是三年前以來我們的角色、目標和理念。

Thank you. Our next question comes from 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) My first question is for the battery price and also the leasing supply. In the future will you think the leasing supply will constrain the EV growth for China?

（中文發言）我的第一個問題是電池價格和租賃供應。您認為未來租賃供應會限制中國電動汽車的增長嗎？

And also, currently the battery price is still high. Do you think this is because some speculative trading, or it's really mainly because of real demand?

而且，目前電池價格仍然很高。你認為這是因為一些投機交易，還是真的主要是因為實際需求？

A similar question regarding your point of sales expansion, previously your target is 400 stores by the end of the year, but under the pandemic, will you slow down the progress?

一個類似的問題，關於你的銷售點擴張，之前你的目標是到年底開400家店，但在疫情之下，你會放慢進度嗎？

Also, in terms of the charging power, do you have any plan? Are all of your charging stations based the super charging infrastructure? Thank you.

另外，在充電功率方面，你們有什麼打算嗎？您所有的充電站都基於超級充電基礎設施嗎？謝謝你。

Lee, this is Kevin. Thank you for your question, your three questions. First of all, we think right now the battery cost, especially the raw material cost is already deviated from the reasonable price, of course, so, with the supply increase, we will definitely see gradually, the raw material costs should go down. But overall, for this year, we still expect that probably the price will still stay in the relatively high position. That's our outlook.

李，這是凱文。謝謝你的問題，你的三個問題。首先，我們認為現在的電池成本，尤其是原材料成本已經偏離了合理的價格，當然，隨著供應的增加，我們肯定會逐漸看到，原材料成本應該會下降。但總體而言，對於今年，我們仍然預計價格可能仍將保持在較高的位置。這就是我們的前景。

Of course, these high price of the raw material will translate into the increase of the end consumer price, therefore will hurt the market demand, but as I mentioned just now, with our Li ONE and our L9, because our product competitiveness is very high, we still have strong confidence that even with a slightly higher price, we can still get a lot of order, for example, for Li ONE, even though we increased the price, starting from 1 April, but as I've just mentioned, starting from end of April, till now, we see the orders still are coming strong.

當然，這些原材料的高價會轉化為終端消費價格的上漲，因此會傷害市場需求，但是就像我剛才提到的，我們的Li ONE和我們的L9，因為我們的產品競爭力非常高，我們仍然有很強的信心，即使價格稍微高一點，我們仍然可以得到很多訂單，例如李ONE，即使我們從4月1日開始提高價格，但正如我剛才提到的，從四月底開始，到現在，我們看到訂單依然強勁。

In terms of the retail stores, we did have a quite aggressive plan, by end of this year, want to have more than 400 retail stores. Right now, of course, because of this pandemic issue, we are revisiting our plan. But we should all agree that the number of retail stores is a fundamental requirement for us to achieve a higher sales volume next year, so therefore, it doesn't matter how big the impact the pandemic for this year, we still want to open as many retail stores as possible, despite the impact of the pandemic.

在零售店方面，我們確實有一個相當激進的計劃，到今年年底，要擁有超過 400 家零售店。當然，現在，由於這一流行病問題，我們正在重新審視我們的計劃。但大家應該都同意，零售店的數量是我們明年銷量更高的基本要求，所以，不管今年疫情影響有多大，我們還是要開儘管受到大流行的影響，但還是盡可能多地開設零售店。

In terms of charging posts, starting from this year, we already have a team starting to build the charging posts. Right now, the initial focus of this team is to primarily build charging posts along the highway, especially those highways connecting the big cities. Right now, the primary focus is still the highway to connect the cities, and within the city, it depends on the customer needs. We'll choose carefully whether we want to build the charging post within city. That's the strategy right now we have.

在充電樁方面，從今年開始，我們已經有一個團隊開始建設充電樁。目前，這個團隊最初的重點是主要在高速公路沿線建設充電樁，尤其是連接大城市的高速公路。目前，主要關注點還是連接城市的高速公路，而在城市內部，這取決於客戶的需求。我們會慎重選擇是否要在城市內建充電樁。這就是我們現在的策略。

Thank you. Our next question comes from [Jing Qiang] from CICC. Please ask your question.

謝謝你。我們的下一個問題來自中金公司的[Jing Qiang]。請提出你的問題。

(Spoken in Chinese) So my first question about - financial question about other income of RMB280 million in the first quarter so where does it come from?

（用中文發言）所以我的第一個問題是——財務問題，第一季度其他收入2.8億元，它來自哪裡？

My next question is about the battery cost negotiation. I've heard that many car companies [accept] that they frequently negotiate their cost quarterly or half, semi-annually from there. So how about that? So if the price, if cost of battery will continually increase by later 1of this year, how do you reflect and there will be a further (inaudible) price to reflect the cost increase?

我的下一個問題是關於電池成本談判。我聽說許多汽車公司[接受]他們經常每季度或每半年協商一次成本。那怎麼樣？那麼，如果價格，如果電池成本將在今年晚些時候繼續上漲，您如何反映並且會有進一步（聽不清）的價格來反映成本上漲？

Last question about the product pipeline. We have seen that many [clients] they want to launch a mid- to large size pure electric [sedan] with positioning, a price positioning of around RMB200,000 this year. The market has very high expectations for these models. How do you view the market of this submarket? According to our [plan], if we are going to launch against and with a price below RMB300,000, I think that it should be in 2024. So are we worried about if the entry to the market too late to this market opportunity?

關於產品管道的最後一個問題。我們看到很多【客戶】想要推出一款定位20萬元左右的中大型純電動【轎車】。市場對這些車型寄予很高的期望。您如何看待這個子市場的市場？按照我們的[計劃]，如果我們要在30萬元以下的價格推出，我認為應該是在2024年。那麼我們是否擔心進入市場會不會趕上這個市場機會？

Thank you [Toni], this is Li Tie. I will take the first - the first question is other [income], the increase of other income as compared with last quarter was mainly the VAT refund upon collection as one of our companies was qualified as a software company, yes.

謝謝[托尼]，我是李鐵。我先說第一個——第一個問題是其他[收入]，其他收入比上一季度的增加主要是增值稅即徵即退，因為我們有一家公司具備軟件公司資格，是的。

This is Kevin, for the battery cost we agreed with our suppliers with a framework to kind of relate the battery price with the fluctuation of the upstream raw materials. So therefore, for the coming quarters, we do need to renegotiate everything. But of course, we will always come back to our suppliers to ask for a cost saving, that's for sure, yes.

這是凱文，我們與供應商商定的電池成本有一個框架，可以將電池價格與上游原材料的波動聯繫起來。因此，對於接下來的幾個季度，我們確實需要重新談判一切。但是，當然，我們總是會回到我們的供應商那裡要求節省成本，這是肯定的，是的。

Also as I just mentioned, the price increase already reflected our expectation for the raw material price in the coming quarters, yes. Li Xiang.

同樣正如我剛才提到的，價格上漲已經反映了我們對未來幾個季度原材料價格的預期，是的。李湘。

Li Xiang: (Interpreted) It's very clear to us that by 2025, our core customers will still be families with kids and with that, three things become very clear. First is that we're always going to build vehicles with an acceptable level of interior dimensions for family users.

李翔：（翻譯）我們很清楚，到2025年，我們的核心客戶仍然是有孩子的家庭，三件事變得很清楚。首先是我們總是要為家庭用戶製造具有可接受的內部尺寸水平的車輛。

The second one is that all of our vehicles will be all-wheel drive. Third is that we want to make sure that every vehicle includes our latest autonomous driving and smart space solutions. So that every family member is able to enjoy them.

第二個是我們所有的車輛都將是全輪驅動的。第三，我們要確保每輛車都包含我們最新的自動駕駛和智能空間解決方案。讓每個家庭成員都能享受它們。

With these three things in mind, it's very natural that we will continue to focus on RMB200,000 to RMB500,000 price range and within this range we'll continue the mind of RMB300,000, RMB400,000 which is our starting point. From there on we'll expand upward to the full-size market and downwards to the midsize market. So this year, as you know, our focus will be the L9 release and next year we'll be launching three new vehicles, including a completely new range extended vehicle and also our first battery electric vehicle. You'll also see our first product in the RMB200,000 to RMB300,000 mid-size market.

考慮到這三點，很自然的我們會繼續關注20萬到50萬的價格區間，在這個區間我們會繼續30萬、40萬的思路，這是我們的出發點。從那時起，我們將向上擴展至全尺寸市場，向下擴展至中型市場。因此，如您所知，今年我們的重點將是 L9 版本，明年我們將推出三款新車，包括一款全新的增程車和我們的首款電池電動車。您還將在 200,000 至 300,000 人民幣的中型市場看到我們的第一款產品。

Right, thank you. Our next question comes from Bin Wang from Credit Suisse. Please ask your questions.

好的，謝謝。我們的下一個問題來自瑞士信貸的王斌。請提出您的問題。

(Spoken in Chinese) I would have one question about the battery price. So can you know when you start to accounting for the price increase for the battery, because as you mentioned, the battery price increased by 30%. Is it from January 1st or start from second quarter? If the first quarter already considering the price increase for the battery, you also actually increased the price start from April 1st, does that mean the second quarter margin will further increase? So can you perhaps guide us on this? Thank you.

（用中文講）我想問一個關於電池價格的問題。那麼你能知道你什麼時候開始計算電池的價格上漲，因為正如你所說，電池價格上漲了30%。是從 1 月 1 日開始還是從第二季度開始？如果一季度已經在考慮電池漲價了，你們實際上也是從4月1日開始漲價的，那是不是意味著二季度利潤率會進一步提升呢？那麼你能指導我們嗎？謝謝你。

Johnny Tie Li: Yes, Wang Bin, thank you for the question. It's a rather complicated question. So basically, the first quarter's financial performance already took consideration -- of course, already took consideration of part of the battery cost increase. The impact was not that dramatic, primarily due to, as you know, that we have inventories. So therefore, the cost in fact is a rolling mix. So that's for the first quarter. From the second quarter we'll have the battery cost increase, as you mentioned, and at the same time from the beginning of this quarter we'll have a selling price increase. So yes, so therefore the -- it's not that we can expect some very high gross margin compared to last quarter. Yes.

Johnny Tie Li：好的，王斌，謝謝你的提問。這是一個相當複雜的問題。所以基本上，第一季度的財務表現已經考慮到了——當然，已經考慮到了電池成本增加的一部分。如您所知，影響並不那麼顯著，主要是因為我們有庫存。因此，成本實際上是滾動組合。這是第一季度。正如你所說，從第二季度開始，我們將增加電池成本，同時從本季度開始，我們將增加售價。所以是的，所以 - 與上一季度相比，我們不能期待一些非常高的毛利率。是的。

Okay.

好的。

Right, thank you. As we are reaching the end of our conference call, I'd like to turn the call back to the Company for closing remarks. Ms. Janet Zhang, please go ahead.

好的，謝謝。當我們的電話會議即將結束時，我想將電話轉回公司以致閉幕詞。張女士，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 Relation's Team. 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。這就是今天的全部內容。謝謝你，祝你好運。

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

女士們先生們，今天的會議到此結束。感謝您的參與，你們都可以斷開連接。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the Company sponsoring this Event.

此成績單中標記（翻譯）的部分由現場通話中的口譯員朗讀。翻譯由主辦本次活動的公司提供。