蔚來 (NIO) 2018 Q4 法說會逐字稿

Hello, ladies and gentlemen, thank you for standing by for NIO Inc.'s Fourth Quarter and Full Year 2018 Earnings Conference Call. (Operator Instructions) Today's conference call is being recorded. I will now turn the call over to your host, Ms. Jade Wei, Senior Director of Investor Relations of the company. Please go ahead, Jade.

大家好，女士們、先生們，感謝大家出席蔚來汽車 2018 年第四季度及全年盈利電話會議。（操作員指示）今天的電話會議正在錄音。現在我將電話轉交給東道主，公司投資者關係高級總監魏潔女士。請繼續，傑德。

Thank you, Christian. Good evening, and good morning, everyone. Welcome to NIO's Fourth Quarter and Full Year 2018 Earnings Conference Call. The company's financial and operating results were published in the press release earlier today and are posted at the company's IR website.

謝謝你，克里斯蒂安。大家晚上好，早上好。歡迎參加蔚來汽車 2018 年第四季度及全年收益電話會議。該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，並發佈在該公司的投資者關係網站上。

On today's call, we have, in Beijing, Mr. William Li, Founder, Chairman of the Board and Chief Executive Officer; and in Hong Kong, Mr. Louis Hsieh, our Chief Financial Officer; and Mr. Nick Wang, our VP of Finance. Louis and Nick will begin with prepared remarks, and William will join for the Q&A session.

在今天的電話會議上，我們在北京邀請了創始人、董事會主席兼首席執行官李威廉先生；在香港，我們的首席財務官Louis Hsieh先生；以及我們的財務副總裁 Nick Wang 先生。路易斯和尼克將首先發表準備好的講話，威廉將參加問答環節。

Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. 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 U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law.

在我們繼續之前，請注意今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。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該公司向美國證券交易委員會提交的某些文件中。除適用法律要求外，公司不承擔更新任何前瞻性陳述的義務。

Please also note that NIO's earnings press release and this conference call includes discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to NIO's press release, which contains reconciliation of the unaudited non-GAAP measures to comparable GAAP measures.

另請注意，蔚來的盈利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。請參閱蔚來的新聞稿，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調節表。

With that, I will now turn the call over to our CFO, Mr. Louis Hsieh. Louis, please go ahead.

現在，我將把電話轉給我們的首席財務官謝路易斯先生。路易斯，請繼續。

Thank you, Jade. Hello, everyone. Thank you for joining us today. We are pleased to report our fourth quarter and first full year results as a public company. Our results reflect broad-based accomplishments across the organization and provides with a strong base for moving forward in 2019. I'll begin with some highlights.

謝謝你，傑德。大家好。感謝您今天加入我們。我們很高興地報告我們作為上市公司的第四季度和第一個全年業績。我們的結果反映了整個組織取得的廣泛成就，並為 2019 年的前進奠定了堅實的基礎。我將從一些亮點開始。

In Q4 2018, production continued to ramp for our NIO/JAC manufacturing sites, and we delivered 7,980 ES8s during the quarter to bring our total delivery to 11,348 units for 2018, which helped strengthen the ES8 brand and solidified our leadership position among premium electric 7-seater SUVs.

2018年第四季度，蔚來/江淮生產基地的產量繼續提升，該季度交付了7,980輛ES8，使2018年總交付量達到11,348輛，這有助於強化ES8品牌並鞏固我們在高端電動7汽車中的領導地位。 SUV。

Revenues increased 134% sequentially from the third quarter, and total revenue reached RMB 4.95 billion for the first year following our initial deliveries in June 2018. In December 2018, we launched the ES6, our 5-seater high-performance premium electric SUV as well as the 6-seater ES8 version, the 7-passenger SUV in the -- also, we have a 6-seater version. These launches exemplify our focus on continued market penetration through enhanced products and services. We remain confident in our growth prospects in the coming year. We expect a greater-than-anticipated sequential decrease in deliveries in the first quarter of 2019, partially due to accelerated deliveries made in the end of last year in anticipation of EV subsidy reductions in China in 2019; number two, seasonal slowdown surrounding the January 1 and Chinese New Year holidays; number three, soft macroeconomic conditions in China, particularly in the auto sector. As a result, we expect ES8 deliveries in the first quarter to total between 3,500 and 3,800 units. And we have completed 1,805 and 811 deliveries in January and February respectively.

收入較第三季度環比增長 134%，自 2018 年 6 月首次交付後第一年總收入達到 49.5 億元人民幣。2018 年 12 月，我們推出了 5 座高性能豪華電動 SUV ES6 以及 7 座 SUV 6 座 ES8 版本，此外，我們還有 6 座版本。這些產品的推出體現了我們致力於通過增強的產品和服務持續滲透市場。我們對來年的增長前景仍然充滿信心。我們預計 2019 年第一季度的交付量環比下降幅度大於預期，部分原因是由於預計 2019 年中國電動汽車補貼減少，去年年底加速交付；第二，1 月 1 日和農曆新年假期前後的季節性放緩；第三，中國宏觀經濟狀況疲軟，尤其是汽車行業。因此，我們預計第一季度 ES8 的交付總量將在 3,500 至 3,800 輛之間。1 月和 2 月我們分別完成了 1,805 輛和 811 輛交付。

In 2019 -- sorry, by the end of February 2019, we had over 4,200 orders for ES8, with RMB 5,000 deposits and RMB 45,000 production order payments. Going forward, we will no longer report the preorder number of -- for ES8 as deliveries of ES8 entered a shortened, more normal phase of delivery times. Furthermore, going forward, we will report delivery numbers each quarter rather than giving monthly updates.

2019年——抱歉，截至2019年2月，我們的ES8訂單超過4200個，定金5000元，生產訂單付款45000元。展望未來，我們將不再報告 ES8 的預訂數量，因為 ES8 的交付進入了更短、更正常的交付時間階段。此外，展望未來，我們將每季度報告交付數量，而不是每月更新。

We expect deliveries in the second quarter of 2019 to reflect continued weakness as we await the results of the 2019 EV subsidy policy in China and improvement in the macroeconomic conditions. We continue to monitor policy changes in support of the EV industry as the subsidy is offered to buyers of electric vehicles.

我們預計 2019 年第二季度的交付量將反映出持續疲軟，因為我們正在等待中國 2019 年電動汽車補貼政策的結果以及宏觀經濟狀況的改善。我們將繼續關注支持電動汽車行業的政策變化，因為補貼是向電動汽車購買者提供的。

Yesterday, on March 5, in China, the Chinese central government announced a reduction in the VAT tax from 16% to 13% for manufacturing industries as part of the overall tax reduction and information plan to boost the macro economy. We believe these measures will benefit the overall economy and consumption markets in the long term, including the auto industry.

昨天，3月5日，中國中央政府宣布將製造業增值稅稅率由16%降至13%，作為促進宏觀經濟整體減稅和信息化計劃的一部分。我們相信這些措施將長期有利於整體經濟和消費市場，包括汽車行業。

On another positive note, in mid-December, we were excited to officially launch our ES6 with a pre-subsidy price of -- starting from RMB 358,000. We are confident that the competitive features and prices of the ES6 will lead a significant interest in the mass market. ES6 5-seater SUV possesses exceptional performance, with acceleration from 0 to 100 kilometers an hour in as fast as 4.7 seconds, exceptional range of 510 kilometers, an EDC and a fully featured luxurious interior.

另一個積極的方面是，12 月中旬，我們很高興正式推出 ES6，補貼前價格為 35.8 萬元人民幣起。我們相信，ES6 具有競爭力的功能和價格將引起大眾市場的極大興趣。ES6 5座SUV擁有卓越的性能，0-100公里/小時加速僅需4.7秒，續航里程高達510公里，擁有EDC和功能齊全的豪華內飾。

As of the end of February, we had already received over 7,200 -- sorry, 73-hundred-5-thousand RMB preorders. Sorry. We plan to generate additional interest in the ES6 through participation in the high-profile Shanghai auto show in April. We expect this order backlog to increase as ES6 show cars are delivered to our NIO Houses in May as potential buyers can actually see, touch and test drive and experience ES6's driving performance and comfort.

截至2月底，我們已經收到超過7200個——對不起，7350萬元人民幣的預訂。對不起。我們計劃通過參加 4 月份備受矚目的上海車展來增加人們對 ES6 的興趣。我們預計，隨著 ES6 展示車於 5 月份交付至我們的蔚來之家，潛在買家可以實際看到、觸摸和試駕並體驗 ES6 的駕駛性能和舒適性，我們預計積壓訂單將會增加。

As of the end of February, we have made good progress in preparing the production for the ES6. We are on track to achieve our goal to begin deliveries in June of 2019.

截至2月底，ES6的生產準備工作已取得良好進展。我們有望實現 2019 年 6 月開始交付的目標。

The geographic reach of NIO's users continue to expand. Through the end of February 2019, our ES8 model has been delivered to 270 cities, connecting users across the country. With over 14,000 ES8s now on the road, we continue to receive valuable feedback from users. Positive feedback remains brisk in key areas, including driving and function, interior quality, NOMI interaction, superior service and user engagement.

蔚來用戶的地理覆蓋範圍不斷擴大。截至2019年2月底，ES8車型已交付270個城市，連接全國用戶。目前已有超過 14,000 輛 ES8 上路，我們不斷收到用戶的寶貴反饋。關鍵領域的積極反饋依然活躍，包括駕駛和功能、內飾質量、NOMI 交互、優質服務和用戶參與度。

During the first winter, we heard from users about drive range challenges with the ES8 for long-distance trips. Although our client data indicates that 95% of ES8 usage is in the city-driving and only 5% is related to long-distance travel, we accelerated our efforts to expand our highway power swap station network, covering both the G2 and G4 expressways as well as the majority of the G15 Expressway.

在第一個冬天，我們從用戶那裡聽到了 ES8 在長途旅行中面臨的行駛里程挑戰。儘管我們的客戶數據顯示，ES8 95%的使用量是在城市行駛，只有 5%與長途出行有關，但我們加快了高速公路換電站網絡的擴展，覆蓋了 G2 和 G4 高速公路，以及G15高速公路的大部分路段。

Now NIO users can travel between Beijing, Shanghai and Shenzhen without stopping for hours to recharge simply by using NIO battery swap centers, which provide a fully swapped battery within 5 minutes. NIO is the only company with battery swap technology to enable seamless long-distance driving in China, China's main highways, of ES8 akin to ICE cars in the fuel inconvenience.

現在，蔚來用戶只需使用蔚來換電中心，即可在北京、上海、深圳之間行駛，無需停車數小時充電，5分鐘內即可完成換電。蔚來是唯一一家擁有換電技術的公司，可以實現在中國主要高速公路上無縫長途行駛，ES8類似於燃油車的燃油不便。

Reflecting our drive for continuous improvement, we continue to update and offer software to improve our user experience. Utilizing our over-the-air technology, in December, we upgraded our ES8 software to version 1.2.0. Over 200 functions have now been added to optimize to provide enhanced safety driver convenience and improve the overall driving experience since our first software version launch in June. Key among these include ADAS functions such as automatic emergency braking, forward collision warning and lane departure warning. We target additional major ADAS functions in the first half of 2019.

我們不斷更新和提供軟件以改善用戶體驗，這反映了我們不斷改進的動力。利用我們的無線技術，我們在 12 月將 ES8 軟件升級到了 1.2.0 版本。自 6 月份推出第一個軟件版本以來，現已添加了 200 多項功能進行優化，以提供增強的安全駕駛員便利性並改善整體駕駛體驗。其中關鍵包括自動緊急制動、前方碰撞警告和車道偏離警告等 ADAS 功能。我們的目標是在 2019 年上半年實現更多主要 ADAS 功能。

Our service network continues to grow. As of the end of February 2019, we opened 13 NIO Houses and 16 pop-up NIO Houses in 27 cities across China.

我們的服務網絡不斷擴大。截至2019年2月底，我們在中國27個城市開設了13家蔚來之家和16家快閃蔚來之家。

In additions by year-end, our number of service centers increased to 100 in 66 cities. Mainly composed of authorized service centers, we are pleased to report our worry-free service package continues to receive rave reviews and continue to see about 90% of our users purchase the worry-free service packages. We continue to monitor how users are utilizing available power solutions.

截至年底，我們的服務中心數量已增至100個，遍布66個城市。主要由授權服務中心組成，我們很高興地報告我們的無憂服務套餐繼續受到好評，並且繼續看到約 90% 的用戶購買了無憂服務套餐。我們將繼續監控用戶如何利用可用的電源解決方案。

As of the end of February 2019, approximately 78% of users have installed the home chargers, which are the most efficient and convenient charging solution for the daily usage. We also completed over 38,000 one-click power service, touching 64% of users.

截至2019年2月底，約78%的用戶安裝了家用充電器，這是日常使用最高效、便捷的充電解決方案。完成一鍵加電服務3.8萬餘次，覆蓋用戶64%。

Our power swap stations were also utilized actively in cities and on highways by 32% of our users.

我們的換電站也在城市和高速公路上被 32% 的用戶積極使用。

Add to this, the more than 170,000 public chargers identified through our NIO APP were utilized by 59% of our users, and it is clear our users are well served by flexible and growing charging infrastructures. We'll continue to monitor usage trends and evaluate our feedback as we continue to improve and enhance the available power solutions.

除此之外，通過我們的 NIO APP 識別的超過 170,000 個公共充電器被我們 59% 的用戶使用，很明顯，我們的用戶得到了靈活且不斷增長的充電基礎設施的良好服務。隨著我們不斷改進和增強可用的電源解決方案，我們將繼續監控使用趨勢並評估我們的反饋。

In China, the Chinese New Year is the busiest travel season of the year. This year, between January 28 to February 18, the heart of the holiday travel period, we provided over 16,000 one-click power services to our users, which earned a satisfaction rating exceeding 4.9 out of 5 in the post-service surveys.

在中國，農曆新年是一年中最繁忙的旅遊季節。今年1月28日至2月18日假期出行期間，我們為用戶提供了超過16,000次一鍵加電服務，在服務後調查中獲得了超過4.9分的滿意度評分（滿分5分）。

We are proud of our NIO Power and NIO Service teams for their hard work to provide seamless exceptional support in the ES8 users on the road across the country.

我們為 NIO Power 和 NIO Service 團隊感到自豪，他們辛勤工作，為全國各地的 ES8 用戶提供無縫的卓越支持。

Delivering a holistic user experience that exceeds expectations is a key competitive differentiation and one that creates significant barriers to potential competitive entrants. Because of this, we continue to think beyond the delivery of our vehicles to ensure that NIO Service and NIO Power provide the highest-quality service to the NIO community.

提供超出預期的整體用戶體驗是一項關鍵的競爭優勢，也是對潛在競爭者造成重大障礙的因素。正因為如此，我們繼續思考超越車輛交付的問題，以確保 NIO Service 和 NIO Power 為 NIO 社區提供最優質的服務。

Our NIO community continues to expand beyond our users who purchase ES8. Our online NIO community is growing fast, with the NIO APP reporting over 800,000 active users and 190,000 daily active users on peak days.

我們的 NIO 社區不斷擴展到購買 ES8 的用戶之外。我們的在線蔚來社區正在快速增長，蔚來APP的活躍用戶超過80萬，高峰日日活躍用戶超過19萬。

A highlight of 2018 for the NIO community was our annual NIO day. In December, we hosted the flagship NIO day event in Shanghai and welcomed over 10,000 members of the NIO community to share insights into our vision for the future as well as officially launching the ES6. This event has now been viewed online over 1.5 billion times.

蔚來社區 2018 年的一大亮點是我們一年一度的蔚來日。12月，我們在上海舉辦了旗艦蔚來日活動，歡迎超過10,000名蔚來社區成員分享我們對未來的願景，並正式推出ES6。目前，該活動的在線瀏覽量已超過 15 億次。

Through a variety of offline activities in 2018, we've gained valuable experience in data and with the continued rolling out, more offline activities to attract target users in 2019.

通過2018年豐富多彩的線下活動，我們在數據方面積累了寶貴的經驗，隨著2019年的不斷開展，更多的線下活動將吸引目標用戶。

On a separate note, we would like to give you an update on our plan for building the manufacturing facilities in Jia Ding, Shanghai. In 2017, we signed a framework agreement and memorandum with the government and related NDs in Jia Ding, Shanghai to build a manufacturing plant for NIO. Recently, we have agreed, in principle, that these contractual counterparties -- with our contractual counterparties to terminate the plan of this manufacturing plant. These decisions are made based on 2 reasons. First, in 2018, a new policy was issued by the government authorities, which allow and encourage the entities that operate its vehicle research and development and design to work with vehicle manufacturing companies to manufacture vehicles cooperatively. This joint manufacturing model between NIO and JAC is endorsed and perceived as an innovative manufacturing model in China. Secondly, through an efficiency perspective, we can leverage the existing capacity of NIO's JAC plant and enjoy the flexibilities to expand the capacity to support NIO's market penetration and growth plans for the next 2 or 3 years. In the long run, we will still focus on the joint manufacturing model and continue improving the effectiveness of capital investments in manufacturing.

另外，我們想向您介紹我們在上海嘉定建設生產設施的最新計劃。2017年，我們在上海嘉定與政府及相關ND簽署了框架協議和備忘錄，為蔚來汽車建設製造工廠。最近，我們原則上同意這些合同方與我們的合同方終止該製造廠的計劃。這些決定是基於兩個原因做出的。首先，2018年，國家有關部門出台新政策，允許和鼓勵汽車研發設計經營主體與汽車製造企業合作生產汽車。蔚來與江淮汽車的這種聯合製造模式被認可並被認為是中國的創新製造模式。其次，從效率的角度來看，我們可以利用蔚來江淮工廠的現有產能，並享有擴大產能的靈活性，以支持蔚來未來兩三年的市場滲透和增長計劃。長期來看，我們仍會以聯合製造模式為主，不斷提高製造業資本投入的有效性。

2019 is an important year for NIO as we have a full year of production of the ES8 and begin deliveries of the ES6. While soft economic conditions may temper demand for some segments of the auto industry, in China, the EV segment is expected to continue to grow. Our goals in 2019 center around increasing market penetration while effectively improving our production and operation efficiency. Longer-term, we're committed to investing in the research and development to ensure our products and experiences remain in the forefront of the EV industry and exceed our users' expectations.

2019年對於蔚來來說是重要的一年，我們完成了ES8的全年生產並開始交付ES6。儘管疲軟的經濟狀況可能會抑制汽車行業某些領域的需求，但在中國，電動汽車領域預計將繼續增長。2019年我們的目標是提高市場滲透率，同時有效提高生產運營效率。從長遠來看，我們致力於投資研發，以確保我們的產品和體驗保持在電動汽車行業的前沿，並超越用戶的期望。

As we complete our first 6 months as a public company, I would like to thank the growing NIO user community for their ongoing trust, the diligent NIO teams for the commitment to our vision and the investor community for your interest and support of this journey with NIO. Thank you again, and I will now turn the call over to our Vice President of Finance, Nick Wang, to provide the financial details for the quarter. Nick, please?

在我們完成上市公司的前六個月之際，我要感謝不斷壯大的蔚來用戶社區的持續信任，感謝勤奮的蔚來團隊對我們願景的承諾，感謝投資者社區對這一旅程的關注和支持。蔚來。再次感謝您，我現在將把電話轉給我們的財務副總裁 Nick Wang，以提供本季度的財務詳細信息。尼克，請問？

Thank you, Louis. As Louis mentioned, we concluded 2018 on a strong note. I will now go over some of our financial results for the fourth quarter. And to be mindful of the length of this call, I encourage listeners to refer to our earnings press release, which is posted online for our full year results and other additional details.

謝謝你，路易斯。正如路易斯提到的，我們以強勁的勢頭結束了 2018 年。我現在將回顧一下我們第四季度的一些財務業績。為了注意本次電話會議的長度，我鼓勵聽眾參考我們的收益新聞稿，該新聞稿發佈在網上，了解我們的全年業績和其他詳細信息。

Total revenues in the fourth quarter of 2018 were RMB 3.44 billion or $499.7 million, representing an increase of 133.8% from the third quarter of 2018. Our total revenues are made of 2 parts, vehicle sales and other sales. Vehicle sales in the fourth quarter of 2018 were RMB 3.38 billion or $491.8 million, representing an increase of 137% from the third quarter of 2018 and accounted for 98% of total revenues in the quarter. The increase in fourth quarter vehicle sales over the third quarter of 2018 was attributed to accelerated deliveries of ES8 in the quarter. Other sales in the fourth quarter of 2018 was RMB 54.4 million or $7.9 million, representing an increase of 27.5% from the third quarter of 2018. The increase in the fourth quarter other sales over the third quarter of 2018 was mainly attributed to increased revenue recognized from the home chargers installed and the service provided in the quarter.

2018年第四季度總收入為34.4億元人民幣（4.997億美元），較2018年第三季度增長133.8%。我們的總收入由兩部分組成：車輛銷售和其他銷售。2018年第四季度汽車銷售額為33.8億元人民幣（4.918億美元），較2018年第三季度增長137%，佔該季度總收入的98%。第四季度汽車銷量較2018年第三季度的增長歸因於該季度ES8交付的加速。2018年第四季度其他銷售額為5440萬元人民幣（790萬美元），較2018年第三季度增長27.5%。第四季度其他銷售額較2018年第三季度增加主要歸因於本季度安裝的家用充電器和提供的服務確認的收入增加。

Cost of sales in the fourth quarter of 2018 was RMB 3.42 billion or $497.7 million, representing an increase of 115.8% from the third quarter of 2018. The increase in cost of sales over the third quarter of 2018 was mainly driven by the increase of delivery volume of ES8 in the quarter. Gross margin in the fourth quarter of 2018 was positive 0.4% compared with negative 7.9% in the third quarter of 2018, mainly driven by the increase of vehicle margin in the quarter. Vehicle margin in the fourth quarter was positive 3.7% compared with negative 4.3% in the third quarter of 2018. The increase of vehicle margin was mainly driven by the increase of production and the delivery volume of the ES8 in the quarter.

2018年第四季度的銷售成本為34.2億元人民幣（4.977億美元），較2018年第三季度增長115.8%。銷售成本較2018年第三季度增加主要是由於該季度ES8交付量增加所致。2018年第四季度的毛利率為正0.4%，而2018年第三季度的毛利率為負7.9%，主要是受到該季度整車利潤率增長的推動。第四季度汽車利潤率為正 3.7%，而 2018 年第三季度為負 4.3%。整車利潤率的增長主要得益於本季度ES8產量和交付量的增加。

Research and development expenses in the fourth quarter of 2018 were RMB 1.52 billion or $220.4 million, representing an increase of 83.8% from the fourth quarter of 2017 and an increase of 48% from the third quarter of 2018. The increase in research and development expenses over the third quarter of 2018 was primarily attributed to the increased number of personnel and the increase in design and professional expenses related to research and development activities of the ES6, a 5-seater high-performance premium electric SUV launched in December 2018. Excluding share-based compensation expenses, a non-GAAP measure, fourth quarter research and development expenses were RMB 1.49 billion or $217.4 million, representing an increase of 83.1% from the fourth quarter of 2017 and an increase of 57.8% from the third quarter of 2018. Selling, general and administrative expenses in the fourth quarter of 2018 were RMB 1.95 billion or $282.9 million, representing an increase of 130% from the fourth quarter of 2017 and an increase of 16.5% from the third quarter of 2018.

2018年第四季度的研發費用為人民幣15.2億元或2.204億美元，較2017年第四季度增長83.8%，較2018年第三季度增長48%。研發費用較2018年第三季度增加主要是由於與5座高性能豪華電動SUV ES6的研發活動相關的人員數量增加以及設計和專業費用的增加於 2018 年 12 月推出。不計入非公認會計原則的股權激勵費用，第四季度研發費用為 14.9 億元人民幣（2.174 億美元），較 2017 年第四季度增長 83.1%，較 2017 年第三季度增長 57.8%。 2018.2018年第四季度的銷售、一般及管理費用為19.5億元人民幣（2.829億美元），較2017年第四季度增長130%，較2018年第三季度增長16.5%。

The increase in selling, general and administrative expenses over the third quarter of 2018 was primarily attributed to increased marketing and the promotional activities, increased expenditure on rental and other expenses related to the sales network expansion and the increased number of selling, general and administrative employees.

2018年第三季度銷售、一般和管理費用的增加主要歸因於營銷和促銷活動的增加、租金支出和與銷售網絡擴張相關的其他費用的增加以及銷售、一般和管理員工數量的增加。

Excluding share-based compensation expenses, a non-GAAP measure, selling, general and administrative expenses were RMB 1.83 billion or $265.5 million, representing an increase of 123.5% from the fourth quarter of 2017, an increase of 38.1% from the third quarter of 2018. Loss from operation in the fourth quarter of 2018 was RMB 3.45 billion or $501.3 million, representing an increase of 106.4% from the fourth quarter of 2017, an increase of 22.7% from the third quarter of 2018.

不計入非公認會計準則衡量的股權激勵費用，銷售、一般和管理費用為人民幣 18.3 億元或 2.655 億美元，較 2017 年第四季度增長 123.5%，較 2017 年第三季度增長 38.1%。 2018 .2018年第四季度經營虧損為34.5億元人民幣（5.013億美元），較2017年第四季度增長106.4%，較2018年第三季度增長22.7%。

Excluding share-based compensation expenses, adjusted loss from operations, a non-GAAP measure, was RMB 3.31 billion or $480.7 million in the fourth quarter, representing an increase of 102.4% from the fourth quarter of 2017 and an increase of 39% from the third quarter of 2018. Share-based compensation expenses in the fourth quarter of 2018 were RMB 141.7 billion or $20.6 million, representing an increase of 282.6% from the fourth quarter of 2017 and a decrease of 70 -- 67.2% from the third quarter of 2018. The increase in share-based compensation expenses over the fourth quarter of 2017 was primarily attributed to increased option granted to employees in 2018. The decrease in share-based compensation expenses over the third quarter of 2018 was primarily attributed to the higher cumulative share-based compensation expenses recognized in the third quarter, which was related to the satisfaction of stock options granted pre-IPO to certain employees with the performance condition of an IPO.

不計入股權激勵費用，調整後的運營虧損（非公認會計準則衡量標準）為33.1 億元人民幣（4.807 億美元），第四季度較2017 年第四季度增長102.4%，較2017 年第四季度增長39%。 2018年第三季度。2018年第四季度的股權激勵費用為1,417億元人民幣（2060萬美元），較2017年第四季度增長282.6%，較2018年第三季度下降70%至67.2%。2017年第四季度股權激勵費用的增加主要是由於2018年授予員工的期權增加。股權激勵費用較 2018 年第三季度減少主要是由於第三季度確認的累計股權激勵費用較高，這與 IPO 前向某些員工授予的股票期權滿足IPO 的績效條件。

Net loss was RMB 3.5 billion or $509.5 million in the fourth quarter of 2018, representing an increase of 106.1% from the fourth quarter of 2017 and an increase of 24.6% from the third quarter of 2018. Excluding share-based compensation expenses, adjusted net loss, a non-GAAP measure, was RMB 3.36 billion or $488.9 million in the fourth quarter of 2018, representing an increase of 102.1% from the fourth quarter of 2017 and an increase of 41.3% from the third quarter of 2018. Net loss attributable to NIO's ordinary shareholders in the fourth quarter of 2018 was RMB 3.52 billion or $511.5 million, representing an increase of 200 -- of, sorry, 26.4% from the fourth quarter of 2017 and a decrease of 64% from the third quarter of 2018. Excluding share-based compensation expenses and accretion on redeemable noncontrolling interests to redemption value, adjusted net loss attributable to NIO's ordinary shareholders, a non-GAAP measure, was RMB 3.34 billion or $486.2 million for the fourth quarter.

2018年第四季度淨虧損為35億元人民幣（5.095億美元），較2017年第四季度增長106.1%，較2018年第三季度增長24.6%。不計股權激勵費用，2018 年第四季度調整後淨虧損（非美國通用會計準則衡量標準）為33.6 億元人民幣（4.889 億美元），較2017 年第四季度增長102.1%，較2017 年第四季度增長41.3%。 2018年第三季度。2018 年第四季度蔚來普通股股東應占淨虧損為 35.2 億元人民幣（5.115 億美元），較 2017 年第四季度增加 200%，抱歉，為 26.4%，較第三季度減少 64% 2018 年。不包括股權補償費用和可贖回非控股權益的贖回價值增值，第四季度調整後歸屬於蔚來普通股股東的淨虧損（非公認會計準則衡量標準）為人民幣33.4 億元或4.862 億美元。

Basic and diluted net loss per ADS in the fourth quarter were both RMB 3.37 or $0.49 per ADS. Excluding share-based compensation expenses and accretion on redeemable noncontrolling interests to redemption value, non-GAAP adjusted basic and diluted net loss per ADS were both RMB 3.2 or $0.47 per ADS in the fourth quarter. Our balance of cash and cash equivalents, restricted cash and short-term investment was RMB 8.35 billion or $1.21 billion as of December 31, 2018.

第四季度每股美國存託股的基本和攤薄淨虧損均為人民幣 3.37 元或每股美國存託股 0.49 美元。不包括股份補償費用和可贖回非控股權益對贖回價值的增加，第四季度每份美國存託股的非公認會計準則調整後基本和稀釋淨虧損均為人民幣3.2元或0.47美元。截至2018年12月31日，我們的現金及現金等價物、受限制現金和短期投資餘額為83.5億元人民幣（12.1億美元）。

And now for our business outlook. For the first quarter of 2019, the company anticipates a sequential slowdown in vehicle deliveries compared to the fourth quarter of 2018 due to accelerated delivery made at the end of last year in anticipation of EV subsidy reduction in China in 2019, the seasonal slowdown surrounding the January 1 and the Chinese New Year holidays as well as the current moderate macroeconomic conditions in China. For the first quarter of 2019, the company expects deliveries of the ES8 to be between 3,500 and 3,800 vehicles, representing a decrease of approximately 56.1% to 52.4% from the fourth quarter of 2018, the total revenues to be between RMB 1,390.9 million and RMB 1,515.7 million, or between $202.3 million and $220.5 million, a decrease of approximately 59.5% to 55.9% from the fourth quarter of 2018. This business outlook reflects the company's current and preliminary review on the business situation and market condition, which is subject to change.

現在談談我們的業務前景。該公司預計 2019 年第一季度的汽車交付量將較 2018 年第四季度環比放緩，原因是由於預計 2019 年中國電動汽車補貼將減少，去年年底加速交付，而汽車銷量季節性放緩。 1月1日和春節假期以及當前中國宏觀經濟狀況溫和。公司預計2019年第一季度ES8的交付量為3,500至3,800輛，較2018年第四季度下降約56.1%至52.4%，總收入為人民幣13.909億元至人民幣15.157 億美元，即2.023 億美元至2.205億美元之間，較2018 年第四季度下降約59.5% 至55.9%。本業務展望反映了公司對業務狀況和市場狀況的當前初步審查，可能會發生變化。

Now this concludes our prepared remarks. I will now turn the call over to the operator to facilitate our Q&A session. Thank you.

現在我們準備好的發言就到此結束。我現在將把電話轉給接線員以方便我們的問答環節。謝謝。

(Operator Instructions) Your first question today comes from the line of Dan Galves from Wolfe Research.

（操作員說明）您今天的第一個問題來自 Wolfe Research 的 Dan Galves。

I was hoping that you could talk a little bit about your expectations for the government EV subsidy policy in 2019. When do you expect this to be announced? What are some of the positives and negatives? Will your -- the bigger 84-kilowatt hour battery help offset some of the reduction? And finally, do you expect more cities in China in 2019 to put restrictions or quotas on internal combustion vehicles?

希望您能談談您對2019年政府電動汽車補貼政策的期望。您預計什麼時候會宣布這一消息？有哪些積極和消極的方面？您的——更大的 84 千瓦時電池有助於抵消部分電量減少嗎？最後，您預計2019年中國會有更多城市對內燃機汽車實施限製或配額嗎？

Thank you, Dan. William, do you want to answer this question?

謝謝你，丹。威廉，你想回答這個問題嗎？

Yes, I can. So thanks for the question. I'll speak in Chinese and Louis will help me to translate. (foreign language)

我可以。謝謝你的提問。我會用中文發言，路易斯會幫我翻譯。（外語）

Right now, we haven't received any official announcement from the government regarding the subsidy policies in 2019, and we expect that it will be announced officially. Recently, for the overall direction, we -- although we haven't received any official announcement, we believe that compared with last year, the subsidy policy in 2019 will be decreasing significantly.

目前，我們還沒有收到政府關於2019年補貼政策的正式公告，預計官方會公佈。最近，對於總體方向，我們——雖然我們還沒有收到任何官方公告，但我們認為，與去年相比，2019年的補貼政策將會有明顯的減少。

(foreign language)

（外語）

But if we look at the positive side, as mentioned by the Chinese government yesterday, they will be keeping supporting any risk development, especially the support in terms of the taxations. For the NAV, especially for the pure electric vehicles, there is no need to pay the purchasing tax for the buyers, and we believe that this support in the taxation will be continued.

但如果我們看積極的一面，正如中國政府昨天提到的，他們將繼續支持任何風險發展，特別是稅收方面的支持。對於資產淨值，特別是純電動汽車，購買者無需繳納購置稅，我們相信這種稅收支持將會持續下去。

(foreign language)

（外語）

And we also believe that the advantages of the consumption taxed on the electric vehicle will also continue.

而且我們也相信，對電動汽車徵收消費稅的優勢也將持續下去。

(foreign language)

（外語）

And for NIO, our product positioning taps into the premium segment. Compared with other entry-level brands and models, we will receive a very limited effect from the decreasing subsidy. And on the other hand, we do receive a lot of advantages with the taxations. So in the long run, we will be in the advantageous position.

對於蔚來來說，我們的產品定位是進入高端市場。與其他入門級品牌和車型相比，補貼減少的影響非常有限。另一方面，我們確實在稅收方面獲得了很多優勢。所以從長遠來看，我們會處於有利地位。

(foreign language)

（外語）

And another advantage of the decreasing subsidy is that before, we will deduct -- before, we have to deduct the subsidy for our users and we need to wait for the subsidy from the government. And it takes a very long time to wait for the subsidy from the government, and we need to pay some advancement payments. And after the subsidy decreases, actually, we'll receive -- since we'll receive more advantages with the taxations, actually, it will help us to release the pressure of the cash flow.

而且補貼減少還有一個好處就是，之前我們要扣——之前我們要給我們的用戶扣補貼，需要等待政府的補貼。而且等待政府的補貼需要很長的時間，需要支付一些預付款。補貼減少之後，實際上我們會得到——因為我們在稅收上會得到更多的好處，實際上它會幫助我們緩解現金流的壓力。

(foreign language)

（外語）

And in the long run, I believe that the Chinese policies will be supporting the EV's development. And I have this thought from 2 perspectives. The first is that there will be a lot of benefits in terms of the use of electric vehicles. For example, the EV can drive freely in Beijing, and in Shanghai, we have advantages with the license plate applications of EV. And I believe that more cities will be enacting this kind of EV-friendly policies in the future. And then secondly, we do receive a lot of benefits with the taxes. And for NIO, as we are a premium brand, I believe this will help us to expand our market, especially, we can pick up the market shares of users who used to be the ICE car users.

從長遠來看，我相信中國的政策將支持電動汽車的發展。我從兩個角度有這個想法。首先是電動汽車的使用方面會有很多好處。比如，電動汽車在北京可以自由行駛，在上海，我們在電動汽車的牌照申請上有優勢。我相信未來會有更多的城市出台這種電動汽車友好政策。其次，我們確實從稅收中獲得了很多好處。而對於蔚來來說，由於我們是一個高端品牌，我相信這將有助於我們擴大市場，特別是我們可以提高以前是內燃機車用戶的市場份額。

(foreign language)

（外語）

So all summed up, in the short term, especially in the second quarter this year, we will be facing some pressures, but the pressures on ourselves is much lesser than the pressure on other electric vehicle companies. And in the long run, we believe that we will keep receiving the benefits and advantages from the policies, and this will help us to expand our market.

所以綜上所述，短期內，特別是今年第二季度，我們會面臨一些壓力，但我們自己的壓力比其他電動汽車企業的壓力要小得多。從長遠來看，我們相信我們將繼續享受政策帶來的好處和優勢，這將有助於我們拓展市場。

Thank you, William. Dan, also, as far as your other question, Hainan Island has now enacted restrictive license plate restrictions. So Sanya and Haikou are also joining that list. So we expect many more cities in the next -- in the coming years to restrict the ICE license plates in those cities to prevent pollution and to move toward an electric car future.

謝謝你，威廉。丹，還有，關於你的另一個問題，海南島現在已經實施了嚴格的車牌限制。三亞和海口也加入了這個名單。因此，我們預計未來幾年會有更多城市限制 ICE 牌照，以防止污染並邁向電動汽車的未來。

Your next question comes from the line of Ryan Brinkman from JPMorgan.

您的下一個問題來自摩根大通的 Ryan Brinkman。

I would like to explore a bit more the implications of not building the wholly owned assembly plant in Shanghai. Presumably, this could have a very positive implication for return on invested capital. Could you talk too about the potential impact on earnings relative to pursuing a wholly owned -- relative to not pursuing a wholly owned approach? And then is there anything to think about the potential timing of expected future models? Does this development have the potential to either delay or perhaps even accelerate the timing of when additional models might launch beyond the ES8 and ES6?

我想更多地探討不在上海建立全資裝配廠的影響。據推測，這可能會對投資資本回報率產生非常積極的影響。您能否也談談相對於追求全資——相對於不追求全資——對收益的潛在影響？那麼，是否需要考慮預期未來模型的潛在時機？這一進展是否有可能推遲甚至加速 ES8 和 ES6 之外的其他車型的推出時間？

Okay. Thank you, Ryan. This one, I'll let William answer this. He is the most familiar with the plant situation. William, you want to go?

好的。謝謝你，瑞安。這個，就讓威廉來回答吧。他對廠裡的情況最熟悉。威廉，你想去嗎？

Okay. Thanks for your question. (foreign language)

好的。謝謝你的提問。（外語）

As we all know, last November, the MIP has enacted a very important file called the Number 58 file. And in this file, it is stated that the Chinese government endorsed the cooperation between the car R&D companies like NIO with the existing manufacturing companies or manufacturing plants. That means that the cooperative mode between NIO and JAC is endorsed by the Chinese government.

眾所周知，去年11月，MIP制定了一個非常重要的文件，稱為58號文件。而在這份文件中，還表示中國政府支持蔚來這樣的汽車研發公司與現有的製造公司或製造工廠進行合作。這意味著蔚來汽車與江淮汽車的合作模式得到了中國政府的認可。

(foreign language)

（外語）

Of course, a lot of details regarding this document still need to be finalized. And we expect that on the 1st of June, the details under this document will be finalized officially and it will be opening for the applications and approval procedures.

當然，有關該文件的許多細節仍有待最終確定。我們預計，6 月 1 日，該文件的細節將正式敲定，並將開始申請和審批程序。

(foreign language)

（外語）

And the advantages for NIO is that, first off, we don't need to apply for the subsidies or the carbon emission credit via JAC. We can directly apply this from the government. And secondly, for NIO, as an independent car company, we can manage our product very well, and this will be helping us with our long-term strategic funding.

蔚來的優勢在於，首先，我們不需要通過江淮汽車申請補貼或碳排放信用。我們可以直接向政府申請。其次，對於蔚來來說，作為一家獨立的汽車公司，我們可以很好地管理我們的產品，這將有助於我們的長期戰略資金。

(foreign language)

（外語）

And we receive a lot of benefits from this. And with this, we can review and replan our investment in the manufacturing and we can also improve the management efficiency of the manufacturing. So in the long run, we will be upholding this manufacturing cooperative mode. At the moment, JAC is our only manufacturing partner. And in the future, in the long run, we may embrace other partners in this regard, and this will also be an important part for our long-term strategy.

我們從中得到了很多好處。通過這個，我們可以回顧和重新規劃我們在製造方面的投資，我們也可以提高製造的管理效率。所以從長遠來看，我們會堅持這種製造合作模式。目前，江淮汽車是我們唯一的製造合作夥伴。而且未來，從長遠來看，我們可能會在這方面擁抱其他合作夥伴，這也將是我們長期戰略的重要組成部分。

(foreign language)

（外語）

And currently, because last year, during the second half of last year, we've modified our production lines for both ES8 and ES6 production. And now the annual capacity of NIO/JAC manufacturing site is about 100,000 units per year. And recently, we've been having some discussions with JAC, and we decided that our third model will also be manufactured in this NIO/JAC manufacturing site. Of course, to be compatible with the third model, we need to make some investment and modifications in our production lines. And we will undertake part of this investment. And in this regard, our cooperative mode with JAC will continue. And after the upgrades, the annual capacity of this manufacturing site will be about 150,000 units per year, and this can be compatible with 3 models in the next 2 to 3 years.

目前，因為去年，去年下半年，我們已經修改了 ES8 和 ES6 生產的生產線。目前蔚來/江淮生產基地年產能約為10萬輛。最近，我們和江淮汽車進行了一些討論，我們決定我們的第三款車型也將在蔚來/江淮汽車的生產基地生產。當然，為了兼容第三種模式，我們需要對我們的生產線進行一些投資和改造。我們將承擔部分投資。而在這方面，我們與江淮汽車的合作模式將會持續下去。升級後，該生產基地的年產能將達到15萬輛左右，並可在未來2至3年內兼容3款車型。

(foreign language)

（外語）

And for the follow-up manufacturing plan, we may be working with other manufacturing partners with other manufacturing sites, but we will keep this cooperative mode in the long run so that we can meet our satisfying capacity. And based on our working experience and cooperative experience with JAC, it takes about 20 months from planning to ramping up to the ideal capacity. And in the future, we will also uphold this so that we can meet our capacity demand, and we don't think this will be a bottleneck for the company's development. And also, it help us to reduce the capital expenses.

而對於後續的製造計劃，我們可能會與其他製造基地的製造合作夥伴合作，但我們會長期保持這種合作模式，以便我們能夠滿足我們滿意的產能。而根據我們的工作經驗以及與江淮汽車的合作經驗，從規劃到達到理想產能大約需要20個月的時間。而且未來我們也會堅持這一點，以滿足我們的產能需求，我們認為這不會成為公司發展的瓶頸。而且，它還幫助我們減少資本支出。

(foreign language)

（外語）

As for the optimization of the 2019 capital expenses because of this termination of Shanghai plant, maybe, Louis or Nick, you can share some figures.

至於由於上海工廠的終止而導致的2019年資本支出的優化，也許Louis或Nick可以分享一些數字。

Okay. I think based on this change of the strategy, I think there's definitely going to be some short-term and midterm saving on the CapEx spending for sure. And over the long run, we believe that this can translate into a long-term higher return on asset as well.

好的。我認為基於這一策略的改變，我認為短期和中期資本支出肯定會節省一些。從長遠來看，我們相信這也可以轉化為長期更高的資產回報率。

The next question comes from the line of Nick Lai from JPMorgan.

下一個問題來自摩根大通的 Nick Lai。

Just one very simple question regarding the pricing strategy. Can we talk about our long-term pricing or medium-term pricing strategy considering 2 moving parts or 2 moving factors? One is subsidy cut and the second is potential localization of Model 3 in the first quarter.

只是一個關於定價策略的非常簡單的問題。我們能否談談考慮 2 個移動部件或 2 個移動因素的長期定價或中期定價策略？一是補貼削減，二是Model 3一季度國產化的可能性。

Thank you, Nick. William, do you want to talk about our pricing strategy?

謝謝你，尼克。William，您想談談我們的定價策略嗎？

Okay. Thanks. (foreign language)

好的。謝謝。（外語）

And we'll be committed to adopting a more reasonable pricing strategy instead of just to reduce the price to take up the market share.

我們將致力於採取更合理的定價策略，而不是僅僅通過降低價格來佔據市場份額。

(foreign language)

（外語）

And for ES8 and ES6, we have battery leasing package or policy, which means that user can get RMB 100,000 reduction if they choose this battery leasing service and they only need to pay the monthly fee. And from the number perspective, over 70% of our ES8 users have chosen this battery leasing service.

而對於ES8和ES6，我們有電池租賃套餐或政策，這意味著用戶如果選擇電池租賃服務，只需支付月費，即可享受10萬元的減免。而且從數量上看，我們ES8的用戶中有70%以上選擇了這項電池租賃服務。

(foreign language)

（外語）

So in this regard, for ES6 users, they only need to pay about RMB 258,000 before subsidy, and they don't need to pay the purchasing tax. And from the pricing perspective, our product can be very competitive in the market.

所以對此來說，對於ES6用戶來說，只需要在補貼前繳納25.8萬元左右，而且不需要繳納購置稅。而且從定價的角度來看，我們的產品在市場上非常有競爭力。

(foreign language)

（外語）

And we understand that our competitors had several rounds of price reductions recently. They may be facing some competitive pressures, so they need to reduce this price. But I believe -- or I think this price reduction can damage the brand image and the loyalty of their existing users and the consumers. And in the long run, NIO will not tap into -- NIO will not try to take up a bigger market share by simply reducing the price. Instead, we want to innovate our service mode to improve our user satisfactions and user loyalties, and then we can improve our sales and market share.

而且我們了解到，我們的競爭對手最近已經進行了幾輪降價。他們可能面臨一些競爭壓力，所以他們需要降低這個價格。但我相信——或者我認為這種降價可能會損害品牌形像以及現有用戶和消費者的忠誠度。而且從長遠來看，蔚來不會涉足——蔚來不會試圖通過簡單地降低價格來佔據更大的市場份額。相反，我們要創新我們的服務模式，提高我們的用戶滿意度和用戶忠誠度，進而提高我們的銷量和市場份額。

(foreign language)

（外語）

So I believe with our pricing strategy and battery leasing service as well as the innovations with our service mode, we can keep our competitive edge in this market. And for this year, to improve our brand awareness and market penetration, we will be hosting some test drive events or user experience events so that we can touch upon more users.

所以我相信通過我們的定價策略和電池租賃服務以及我們服務模式的創新，我們可以在這個市場上保持競爭優勢。今年，為了提高我們的品牌知名度和市場滲透率，我們將舉辦一些試駕活動或用戶體驗活動，以便接觸更多的用戶。

Thank you. Thank you, William. And Nick, I think in my view, the Tesla price reductions, it's my opinion, I think, is in part directly because NIO is already -- our ES8 is outselling Tesla's top brands, the S and the X, which is why the price reduction was so significant. 15% to 20% is huge. And on Model 3, I think Model 3, the base version, which doesn't even compare close to our ES6 in performance or range, is over RMB 400,000. As William just said, ours is RMB 258,000, if you take the battery lease option to start with. So I don't think it solves the competitive problem for Tesla in China.

謝謝。謝謝你，威廉。尼克，我認為在我看來，特斯拉降價，我認為，部分直接原因是蔚來——我們的 ES8 的銷量超過了特斯拉的頂級品牌 S 和 X，這就是價格下降的原因減少幅度如此之大。15％到20％是巨大的。至於Model 3，我認為Model 3，基礎版，無論是性能還是續航里程都無法與我們的ES6相比，超過40萬元。正如威廉剛才所說，如果你選擇電池租賃選項，我們的價格是258,000元人民幣。所以我認為這並不能解決特斯拉在中國的競爭問題。

Yes. And I was actually referring -- yes, if we plan to lose MSRP.

是的。我實際上指的是——是的，如果我們計劃失去建議零售價。

Yes. So ours is RMB 358,000. Theirs is about RMB 410,000, the cheapest version. But the Model 3 is a small car. It's not even the same class, right? It's a small sedan. It's like comparing a 318i BMW. Ours is more like an X5, the ES6. Our range is 510. Their range is about 300 kilometers. Our acceleration is a second faster than theirs. 0 to 60 in 4.7. Theirs is like 5.7 or 5.8. Theirs has a single motor. Ours is dual motor. So it's not comparable.

是的。那麼我們的就是358,000元。他們的版本大約是41萬人民幣，是最便宜的版本。但 Model 3 是一款小型車。根本就不是一個班的吧？這是一輛小轎車。這就像比較 318i 寶馬一樣。我們的更像是X5、ES6。我們的範圍是 510。它們的射程約為300公里。我們的加速度比他們快一秒。4.7 中的 0 到 60。他們的大概是5.7或5.8。他們的只有一個電機。我們的是雙電機。所以沒有可比性。

Your next question comes from the line of Vincent Ha from Deutsche Bank.

您的下一個問題來自德意志銀行的 Vincent Ha。

I have questions on 2 areas. Number one is on the longer-term kinds of sales outlook. Now we noticed that the companies are giving a more conservative guidance for first and second quarter. But does it really change our longer-term expectation of around like 40,000 to 45,000 delivery for the full year 2019? And what will be the split between ES6 and ES8? And then a little bit follow-up on the sales outlook is that we recently saw a really, really positive documentary coming up from the 60 Minutes of CBS, and I think that really helps you raise the awareness on the brand inside China. I don't -- I wonder whether the company is trying to leverage on this publicity to help on the sales and help on the traffic in the NIO Houses. My second question is for the fundraising. Now congratulations on the successful like convertible notes raising last month. And my question on this one is that, can we have a rough idea of what is the cost for the options for the issuance? And then the second question is that, going forward, is this likely to be the major way of further fundraisings in the future? So those are the 2 questions.

我對 2 個領域有疑問。第一個是長期的銷售前景。現在我們注意到，這些公司對第一季度和第二季度的指導更加保守。但這真的會改變我們對 2019 年全年交付量約為 40,000 至 45,000 輛的長期預期嗎？ES6 和 ES8 之間的區別是什麼？關於銷售前景的一點後續行動是，我們最近看到了哥倫比亞廣播公司 60 分鐘節目中一部非常非常積極的紀錄片，我認為這確實有助於提高該品牌在中國的知名度。我不知道——我想知道該公司是否試圖利用這種宣傳來幫助銷售和幫助蔚來之家的流量。我的第二個問題是關於籌款的。現在祝賀上個月成功籌集的可轉換票據。我的問題是，我們能否大致了解一下發行期權的成本是多少？那麼第二個問題是，展望未來，這是否會成為未來進一步融資的主要方式？這就是兩個問題。

Thank you. Thank you, Vincent. This one, I'll take the numbers question. The understanding is our forecast has not changed for 2019. As we said, the slower-than-expected start in Q1 and Q2 will partly be due -- because the subsidy is normally announced in January in China. This year, it's already March, it hasn't been announced. So that uncertainty. And we said the macro. The other thing is, don't forget, in February, it's only half a month because Chinese New Year took up the first 10 days of holiday. We have some delivery delays in February due to getting licensing plate registration offices opened in China. So the 811 is exceptionally low. So we expect a pickup in March of this year. And as I said, we have over 4,200 orders for ES8 that are in the bank, 5,000 and 45,000. 1,300 of them are for the 6-seater version of the ES8. The 6-seater version won't be available until Q2. So it's not -- the slowdown isn't as pronounced as it looks from the number. But I appreciate that question, Vincent. The 60 Minutes article is great publicity in the U.S. and outside. Unfortunately, 60 Minutes isn't shown in China, but it's a very positive view of William's strategy and vision for the company. On fundraising, the convertible bond had a premium that's a little bit higher than we like. It is -- this coupon is 4.5%. It's a 5-year CB with a 3-year put. I don't think CB will be the primary source of fundraising for us in the future. We have many other sources of fundraising. We have enough cash to launch ES8 and ES6. But as you know, because of a car company's nature, we will need to tap the capital margins at some point in the future. We also have credit lines available to us. We have a lot of strategic interest in investing in NIO through partnerships and others. And also, we have the ability through credit financing on the battery lease receivables we get and others to generate a significant amount of cash by -- from our battery leasing and other revenues. Do you want to talk about fundraising more?

謝謝。謝謝你，文森特。這一題，我將回答數字問題。據了解，我們對 2019 年的預測沒有改變。正如我們所說，第一季度和第二季度的啟動速度慢於預期將是部分原因——因為中國的補貼通常在一月份宣布。今年已經三月份了，還沒有公佈。所以說不確定性。我們說的是宏觀。另外，別忘了，2月只有半個月，因為春節佔用了前10天假期。由於在中國開設車牌登記處，我們在二月份的交貨出現了一些延遲。所以811的價格特別低。因此，我們預計今年 3 月份會有所回升。正如我所說，我們銀行里有超過 4,200 個 ES8 訂單，其中 5,000 個和 45,000 個。其中1,300輛用於6座版ES8。6座版本要到第二季度才會上市。所以事實並非如此——經濟放緩並不像數字看起來那麼明顯。但我很欣賞這個問題，文森特。60 分鐘的文章在美國國內外引起了巨大的關注。不幸的是，《60 分鐘》沒有在中國上映，但它對威廉的公司戰略和願景給出了非常積極的看法。在融資方面，可轉換債券的溢價比我們希望的要高一些。這張優惠券的利率是 4.5%。這是一份 5 年期 CB 和 3 年期看跌期權。我認為 CB 不會成為我們未來籌款的主要來源。我們還有許多其他籌款來源。我們有足夠的現金來推出 ES8 和 ES6。但大家知道，由於汽車公司的性質，我們在未來的某個時候需要挖掘資本利潤。我們還有可用的信用額度。我們對通過合作夥伴關係和其他方式投資蔚來有很大的戰略興趣。此外，我們有能力通過對我們和其他人獲得的電池租賃應收賬款進行信貸融資，從我們的電池租賃和其他收入中產生大量現金。您想更多地談談籌款嗎？

Yes. Actually, there's 2 points I just want to add on top of what Louis just mentioned. Essentially, you are asking about the structure of the CB. In this transaction, I think there are 2 elements of the derivative -- financial structure in derivative nature. One is the cap called upper strike. That basically shows the management of the company is confident over the long run, especially the high appreciation of stock price. That's basically -- in that element, that basically increased our strike price from 27.5% to 100%. The other element, as we call it, the 0 strike forward shares essentially allow the company to purchase back some shares and make these shares amenable to the potential CB investor in the marketplace. These are typical practice in the market in the CB market, okay?

是的。實際上，除了Louis剛才提到的內容之外，我還想補充兩點。本質上，您是在詢問 CB 的結構。在這次交易中，我認為衍生品有2個要素——衍生品性質的財務結構。一種是稱為上罷工的帽子。這基本表明公司管理層對長期發展充滿信心，尤其是對股價的高升值。基本上，在這個因素上，我們的執行價格基本上從 27.5% 增加到 100%。另一個要素，正如我們所說，0 罷工股票本質上允許公司回購一些股票，並使這些股票適合市場上潛在的可轉換債券投資者。這些都是CB市場的典型做法好嗎？

Thank you. Thank you, Vincent. Does that answer your question, Vincent? But basically, our forecast remains unchanged. Maybe slightly more ES6 orders because we already have 7,300, 3 or 4 months before launch. So we think that's a very strong number. And then ES8, I think, Q2 should be better than Q1. But -- and then -- but I think ES8 is already the #1 selling premium 7-seater EV in the market already. So it's already outselling the Model X by a wide, wide margin. So it's basically already in the market-leading position. Next question.

謝謝。謝謝你，文森特。這能回答你的問題嗎，文森特？但基本上，我們的預測保持不變。ES6 的訂單可能會稍微多一點，因為在發布前 3 或 4 個月我們已經有 7,300 台了。所以我們認為這是一個非常強勁的數字。然後ES8，我認為Q2應該比Q1更好。但是——然後——但我認為 ES8 已經是市場上銷量第一的優質 7 座電動汽車。因此，它的銷量已經遠遠超過 Model X。所以基本上已經處於市場領先地位。下一個問題。

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

你的下一個問題來自高盛的Fei Fang。

It's very impressive to see the ramp-up of ES8's volume and your brand. Can management talk about the operational lessons you have learned from branding ES8? What have worked? What have not? And what do you plan to do differently for ES6 and the third model? And also, for ES6, how do you think about the cannibalization risk with ES8?

看到 ES8 銷量和品牌的提升令人印象深刻。管理層能談談您從 ES8 品牌推廣中學到的運營經驗嗎？有什麼效果？什麼還沒有？您計劃對 ES6 和第三款車型做哪些不同的事情？另外，對於 ES6，您如何看待 ES8 的蠶食風險？

Thank you, Fei. William, do you want to talk about the lessons you learned from branding ES8 and any cannibalization against ES6? Was ES6 cannibalizing ES8?

謝謝你，菲。William，你想談談你從 ES8 品牌塑造以及針對 ES6 的蠶食中學到的教訓嗎？ES6 正在蠶食 ES8 嗎？

Yes, thanks for the question. (foreign language)

是的，謝謝你的提問。（外語）

ES8 is our first product. And from manufacturing to delivery, in terms of the readiness of supply chain, quality and software, we need to improve a lot. And for the past 6 months, we've experienced a lot of challenges. And some days we need to manufacture at least 100 or 200 cars and we need to deliver that many cars every day, and this is a huge pressure for us. And I guess to say we have overcome that period of time, and I -- we appreciate our team for this great contribution.

ES8是我們的第一個產品。而從製造到交付，在供應鏈的準備度、質量和軟件方面，我們需要改進很多。在過去的六個月裡，我們經歷了很多挑戰。有時我們需要生產至少 100 或 200 輛汽車，而且我們每天需要交付那麼多汽車，這對我們來說是一個巨大的壓力。我想我們已經度過了那段時期，我們感謝我們的團隊做出的巨大貢獻。

(foreign language)

（外語）

And as of today, we've delivered cars to 270 cities in China, and the geographical distribution of our users is quite wide. We even have users in the Northeast China, which is one of the coldest areas in China, which means that we also face some pressures with our service. I cannot say this is a lesson learned, but for the last quarter, we -- for the first quarter last year, we paid a lot of attention with the user experience, for example, to guarantee a smooth car usage and experience in the winter. We spent a lot of time with the user services in these areas. And also, because we didn't want to keep our users waiting for such a long time, we have some intensive user deliveries. And for these, for what we got from the past quarter, we think we can further improve our efficiencies with the service and the service operations. And I believe this will be a long-term target, and this will help us to further improve our user satisfactions.

截至目前，我們已經向中國270個城市交付汽車，用戶的地域分佈相當廣泛。我們甚至在中國最寒冷的地區之一的東北地區也有用戶，這意味著我們的服務也面臨著一些壓力。我不能說這是一個教訓，但是在上一個季度，我們——去年第一季度，我們非常關注用戶體驗，比如保證冬天用車和體驗的順暢。 。我們在這些領域的用戶服務上花了很多時間。而且，因為我們不想讓用戶等待這麼長時間，所以我們進行了一些密集的用戶交付。對於這些，對於我們從上個季度獲得的結果，我們認為我們可以進一步提高服務和服務運營的效率。我相信這將是一個長期目標，這將有助於我們進一步提高用戶滿意度。

(foreign language)

（外語）

And starting from this year, we believe that NIO has entered into the second phase of a competition. We call it the qualifying round. And the priority of this round is that we need to improve our operational efficiency without compromising on the user satisfaction. This is one of the most important tasks at the moment.

而從今年開始，我們認為蔚來已經進入了第二階段的競爭。我們稱之為預選賽。而這一輪的首要任務是我們需要在不影響用戶滿意度的情況下提高我們的運營效率。這是當前最重要的任務之一。

Thank you, William. Also, I think, Fei, I think, in my view, ES6 will obviously have some cannibalization effect on ES8, but I think that's normal. They're both SUVs. One is 5-seater. One is 7-seater. But I want to remind you that the 5-seater version -- 5-seater SUV market is many times bigger than the 7-seater SUV market, which is very limited in China. So I think the potential for ES6 is much larger in order -- and it's reflected in our half year forecast in ES8. So I think it's inevitable. Okay.

謝謝你，威廉。另外，我認為，Fei，我認為，在我看來，ES6 顯然會對 ES8 產生一些蠶食效應，但我認為這是正常的。他們都是SUV。一輛是5座。一輛是7座。但我想提醒大家的是，5座版——5座SUV市場比7座SUV市場大很多倍，而7座SUV市場在中國非常有限。因此，我認為 ES6 的潛力要大得多——這反映在我們對 ES8 的半年預測中。所以我認為這是不可避免的。好的。

Yes. (foreign language)

是的。（外語）

Actually, Louis has mentioned a very important information. The market size of the premium 5-seater SUV is 10x bigger than that of the premium 7-seater SUV, which means that the total volume of the 5-seater SUV above the price of RMB 300,000 is over 1 million units. But that's also -- yes, that 7-seater SUV is only about 100,000 units. And we care a lot about our overall market share instead of just for ES8 or ES6. And for ES6, our target this year is to let more people to know this brand, to know this car and to try this car. That's why this year, we are planning for a wide range test drives around China so that more users or more potential users can have a try. And for our existing users who have tried or drove ES8 for a while, actually the feedback is quite positive because we understand the demand and the need of the Chinese users and we are confident about the product we provide to them. And actually, NIO has one of the highest user satisfactions, and we also want to keep improving this user satisfactions. If you read some self-generated content on social media, they have some attractive titles criticizing about NIO's services, competitiveness or our product. But if we look at the real user feedback, you will find that the feedback from our users are quite positive. And in the long term, I believe this is the foundation to our future competitiveness.

其實，路易斯提到了一個非常重要的信息。豪華5座SUV的市場規模是豪華7座SUV的10倍，這意味著30萬元以上價格的5座SUV總量超過100萬輛。但那也是——是的，那款 7 座 SUV 的銷量只有大約 10 萬輛。我們非常關心我們的整體市場份額，而不僅僅是 ES8 或 ES6。而對於ES6來說，我們今年的目標是讓更多的人知道這個品牌、知道這個車、嘗試這個車。所以今年我們計劃在中國各地進行大範圍的試駕，讓更多的用戶或者更多的潛在用戶可以嘗試。對於我們已經嘗試或駕駛過ES8一段時間的現有用戶來說，實際上反饋是相當積極的，因為我們了解中國用戶的需求，並且我們對我們為他們提供的產品充滿信心。事實上，蔚來是用戶滿意度最高的公司之一，我們也希望不斷提高這種用戶滿意度。如果你在社交媒體上閱讀一些自我生成的內容，他們有一些有吸引力的標題批評蔚來的服務、競爭力或我們的產品。但如果我們看看真實的用戶反饋，你會發現我們用戶的反饋是相當積極的。從長遠來看，我相信這是我們未來競爭力的基礎。

Your next question comes from the line of Paul Gong from UBS.

您的下一個問題來自瑞銀集團的龔保羅。

My first question is regarding your strategy after the subsidies declined. Say, how much percentage you could pass this shortfall to your customers or you plan to pass? If the subsidy declines by $100, how many dollars should we expect the customers might pay as an extra to make up this shortfall?

我的第一個問題是關於補貼取消後你們的策略。比如說，您可以將多少百分比的缺口轉嫁給您的客戶或您計劃轉嫁給？如果補貼減少 100 美元，我們預計客戶可能會額外支付多少美元來彌補這一缺口？

William, you want to talk about the subsidy effect on our pricing, the foreign subsidy? Or do you want me to do it?

威廉，你想談談補貼對我們定價的影響，即外國補貼嗎？或者你想要我做嗎？

Yes. So I confirm the question. (foreign language)

是的。所以我確認了這個問題。（外語）

(foreign language)

（外語）

(foreign language)

（外語）

Thank you, William. I think...

謝謝你，威廉。我認為...

There were 2 types of...

有 2 種類型...

Go ahead, I'm sorry.

繼續吧，對不起。

Do you need translation? Sorry. There were 2 types of subsidy. One is national subsidy. One is local subsidy. Actually, it is not very easy for some users in some cities to get local subsidy already. And as for the subsidy decline or reduction, if the subsidy declined by RMB 1, actually user need to pay for that RMB 1. So there is no plan to adjust our price because of this subsidy reduction, which means that if the national subsidy decreases by RMB 10,000 this year, then users need to pay RMB 10,000 more. And before we see the official announcement of the subsidy policy this year -- actually, even if the subsidy policy of this year is released, there's no plan to reduce our price to cover this shortfall.

您需要翻譯嗎？對不起。補貼有兩種類型。一是國家補貼。一是地方補貼。事實上，對於一些城市的一些用戶來說，想要獲得當地的補貼已經不太容易了。而對於補貼的下調或者減少，如果補貼減少了1元，那麼實際上用戶需要支付這1元的費用。所以我們沒有計劃因為這次補貼的減少而調整我們的價格，也就是說如果國家補貼減少的話今年增加10000元，那麼用戶還需要多付10000元。而且在今年的補貼政策沒有正式公佈之前——實際上，即使今年的補貼政策出台了，我們也沒有計劃通過降價來彌補這個缺口。

To add to that, I think our prices already -- the price and value of performance ours are already the best in the market with ES6 and ES8. And that's why I think, in my view, that's why Tesla has been aggressively lowering their price because of their market share losses to NIO. And so I think there's no reason for us to take down our price. The subsidy will keep our margins in place. And also, with the 3% reduction in VAT tax, that should help our gross margin significantly. So I think the government policies are actually quite positive for us.

除此之外，我認為我們的價格已經——我們的價格和性能價值已經是 ES6 和 ES8 市場上最好的。這就是為什麼我認為，這就是為什麼特斯拉一直在大幅降低價格，因為他們的市場份額輸給了蔚來。所以我認為我們沒有理由降低價格。補貼將保持我們的利潤率。此外，隨著增值稅稅率降低 3%，這應該會顯著提高我們的毛利率。所以我認為政府的政策實際上對我們來說是非常積極的。

Okay. Yes. My second question is regarding the ES6 orders. I heard it was 7,300. How does this compare to the ES8 orders at the same stage? Say, at the same time last year, what was the cumulative ES8 orders? Can you share with us?

好的。是的。我的第二個問題是關於 ES6 訂單的。聽說是7300。這與ES8同期訂單相比如何？比如說，去年同期，ES8 累計訂單是多少？你能和我們分享一下嗎？

Yes. I think ES8, at that point, was a little bit better because it was the first time NIO had gone [all this time] for the whole year and it was a big event. So NIO ES8 orders were about 10,000 at this time. But don't forget, ES6, we haven't started the marketing campaign yet. This is mostly the referrals or word of mouth. So you'll see us in April when the Shanghai auto show takes off. As William had mentioned, having a lot more marketing on ES6. In addition, part of the reason costs are high for Q4 than Q1 is we are building a lot of ES6s to be available in May for test drives. That's one thing we learned about ES8, is that we didn't have enough cars for people to test drive. It's very hard to test drive a car. And now we have NIO Houses in 27 cities. So we have built -- so there will be a cost in Q1 to absorb the cost of building a lot of ES6s for a lot of test drive. When people drive our ES8, the majority of them will buy that car, vast majority of them. We think ES6 is even better because it's a lighter, sportier version of the ES8 and it drives phenomenally. So we believe that once we start allowing test drives, the order number will go up quite fast in the May, June timeframe.

是的。我認為 ES8 在這一點上要好一些，因為這是蔚來汽車全年第一次（一直）走，這是一件大事。所以此時蔚來ES8的訂單量在1萬輛左右。但別忘了，ES6，我們還沒有開始營銷活動。這主要是推薦或口碑。因此，您將在四月上海車展開幕時見到我們。正如 William 提到的，在 ES6 上進行了更多的營銷。此外，第四季度成本比第一季度高的部分原因是我們正在生產大量 ES6，並將於 5 月份進行試駕。關於 ES8，我們了解到的一件事是，我們沒有足夠的汽車供人們試駕。試駕汽車非常困難。現在我們在27個城市擁有NIO House。所以我們已經建造了——所以第一季度將會有一定的成本來吸收建造大量 ES6 進行大量試駕的成本。當人們駕駛我們的 ES8 時，他們中的大多數人都會購買那輛車，絕大多數人。我們認為 ES6 甚至更好，因為它是 ES8 的更輕、更運動的版本，而且駕駛性能出色。所以我們相信，一旦我們開始允許試駕，訂單數量在五六月份的時間段內將會快速增長。

(foreign language)

（外語）

Actually, the ES6 and the ES8 focus on different market and user groups. For ES8, it taps into the premium 7-seater SUV segment. And in that segment, we don't have many competitors. And also, ES8 represents the first official debut and product launch of NIO. And a lot of users who were not potential 7-seater SUV users bought our cars because they love the NIO brand. That's why we received more orders than ES6 at the early stage of ES8 product launch. And for ES6, the market situation is different. It taps into a bigger market, but at the same time, the competition is more fierce. For example, we have Q5, GLC, X3 in this market segment, and their sales volume every month is over 10,000 units. But we are also very confident with our ES6 performance, user experience, the advantages with the taxes and the innovative services. And we believe we can keep this competitive edge in this market segment. We already expected that the early stage of ES6 order is not as good as ES8. That's why, as Louis mentioned, we will be host -- we will be holding large-scale test drive campaign and market campaign starting from May. And we believe that in this bigger and more competitive market segment, ES6 will be very competitive compared with traditional ICE cars.

事實上，ES6和ES8針對的市場和用戶群體是不同的。ES8則進軍高端7座SUV細分市場。在這個領域，我們沒有很多競爭對手。同時，ES8也代表著蔚來汽車的首次正式亮相和產品發布。很多不是潛在7座SUV用戶的用戶購買了我們的汽車，因為他們喜歡蔚來品牌。這就是為什麼我們在ES8產品上市初期就收到了比ES6更多的訂單。而對於ES6來說，市場情況就不同了。它開拓了更大的市場，但同時競爭也更加激烈。比如我們這個細分市場有Q5、GLC、X3，他們每個月的銷量都在萬台以上。但我們對ES6的性能、用戶體驗、稅收優勢和創新服務也非常有信心。我們相信我們能夠在這個細分市場保持這種競爭優勢。我們已經預料到ES6前期訂單不如ES8。這就是為什麼，正如Louis提到的，我們將主辦——我們將從5月份開始舉辦大規模的試駕活動和市場活動。而且我們相信，在這個更大、競爭更激烈的細分市場，ES6與傳統內燃機汽車相比將非常有競爭力。

Thank you, William. Next question.

謝謝你，威廉。下一個問題。

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

您的下一個問題來自瑞士信貸銀行的王斌。

I actually have 3 operation questions. The number one is about the NIO House number. [As Louis pointed out], right now it's 27. So it has been growing. It's about 70 by the end of this year. So I want to know whether you have any change about the plan for the NIO House number. That's number one question. Number two is about Tesla actually will have the [lower-priced] Model Y next year. Can I assume that ES6 competes with Model Y? Because Model Y has been set at 10% bigger than the Model 3 since that now will compete with Model Y. So I want to know whether it competes with Model Y. Meanwhile, because the Model 3 has such a big success in the U.S., do we have any plan to introduce a similar model than the Model 3 from NIO in the future, say, 2021? And the third question is about software. One of the key things is so far our ADAS is still not fully being utilized because of the software. You have been guiding software may be ready in May this year. So can we have update about the software, when it will be fully ready to have a much better user experience? And lastly, I also have a question about the battery. Since the ES6 has a better battery, can we know when the battery can be used, I mean, the same A11 battery can be used to ES8? When will it be used? And if that will be used, will the price of the ES8 will be increased or not?

我其實有3個操作問題。第一個是關於 NIO House 的號碼。[正如路易斯指出的]，現在是 27 歲。所以它一直在增長。到今年年底大約有70個。所以我想了解一下您對於蔚來House號的規劃有沒有什麼變化？這是第一個問題。第二點是特斯拉明年實際上將推出[價格較低的] Model Y。我可以假設 ES6 與 Model Y 競爭嗎？因為Model Y已經被定為比Model 3大10%，所以現在要與Model Y競爭。所以我想知道它是否與Model Y競爭。同時，因為Model 3在美國取得瞭如此大的成功，我們是否有計劃在未來（比如2021 年）推出與NIO Model 3 類似的車型？第三個問題是關於軟件的。關鍵的事情之一是，到目前為止，由於軟件的原因，我們的 ADAS 仍未得到充分利用。您一直在指導的軟件可能會在今年五月份準備就緒。那麼，當軟件完全準備好以獲得更好的用戶體驗時，我們是否可以對其進行更新？最後，我還有一個關於電池的問題。既然ES6有更好的電池，我們能否知道電池什麼時候可以使用，我的意思是，同樣的A11電池可以用於ES8嗎？什麼時候會用到呢？如果使用的話，ES8的價格會不會上漲？

Okay. Thank you. Thank you, Wang Bin. I'll take one at a time. Our NIO Houses, we currently have 13 in 11 cities and 16 pop-up NIO Houses. William wanted a large footprint as we launch ES6. And because of dispersion of the ES8 orders across the cities, you won't see us go to 70 cities this year. So we realized that the expenses are high. So we are controlling the expenses. And you'll see high expenses in Q1, and then we should see a gradual decline, significant decline in expenses in Q2, Q3, and Q4 as we march towards profitability. That's #1. We think we have pretty good coverage with 27 cities. We may add a few more, but it won't be a large-scale expansion into 70 cities this year. Second, Model Y. Model Y, there was supposed to be some kind of announcement next week. I don't worry about it because it won't be here for a year or so in China if even then. It should be 10% bigger than the Model X. It's closer to our ES6. But if the Model X -- sorry, the Model 3 is the 400 -- the cheapest version is RMB 420,000. That's 10% more. That means the Model Y will be over RMB 500,000 when it comes to China in a year or 2, and that will still not be as kind of price competitive with our ES6, which is RMB 358,000. And that depends on whether you get 1 motor or 2 motors in the Model Y. So I think our ES6 will compete very well. It should be slightly bigger. It will be X5 versus X3, which is what I think the Model Y will be comparable to. So I think our car is more than ready to meet the challenges of the Model Y when it comes to China. As far as Model 3 is concerned, we are in discussions about NP2 platform, NIO platform 2, but that won't -- we haven't decided on what the format of that will be. So we don't know if we will -- but there's no immediate plans the next year to have a car that will compete with Model 3 that size. We think ES6 already competes more than favorably with Model 3. Chinese prefers SUVs to sedans, and ours is an SUV. Tesla's is a small sedan. Sedans are not the preferred choice. Second is the Model -- the ES6 is cheaper than the Model 3 and much higher-priced performance statistics, faster, longer range, much more luxurious. Remember, the Model 3 is a slimmed-down, nothing fancy in the interior with not the same surface level as ES6. So I think they are different classes, and I think the ES6 should be a much more appealing car to Chinese users. Your question on ADAS software, we -- the current timing is for highway pilot or NIO highway pilot to be available sometime in Q2. Don't forget, the NIO ES8 is already equipped with the ADAS hardware. So for us, once that's available, once we order that package, we will get a high revenue, a high gross margin number. So we'll turn it on, on the software side and we'll make over RMB 35,000 to RMB 40,000 by doing that. So we expect NIO pilot -- the current timetable is next quarter, it will be released and available for ES8 and ES6 owners. On the battery, 84-kilowatt battery is going to be available for both ES8 and ES6. So ES6 for a cheaper version can use the 70-kilowatt battery as well. And then for ES8 owners who have 70-kilowatt, William -- and NIO is offering a onetime trade-in value where you can get 60% off for an 84-kilowatt battery if you want to buy that. So we are offering it. It's available. It's the same battery pack. So it's swappable. So for the 70-kilowatt batteries from ES8 that are changed, we will use them in our swap network. So they won't go to waste. And so we expect that battery to have -- for the ES6, it takes the range to 510 on the 84 kilowatts. For the ES8, it takes the range from 355 to 420. So that will solve the range issues for that many -- the biggest complaint from ES8 owners was range. So we expect to have a solution for them by June, July of this year. Does that answer your questions, Wang Bin? Okay. Great. I think it does. Next question, please.

好的。謝謝。謝謝你，王斌。我一次拿一個。我們的NIO House，目前在11個城市有13個，還有16個快閃NIO House。當我們推出 ES6 時，William 希望佔據更大的空間。而且由於ES8訂單在各個城市的分散，今年你不會看到我們去70個城市。所以我們意識到費用很高。所以我們正在控制開支。你會看到第一季度的費用很高，然後隨著我們向盈利邁進，我們應該會看到第二季度、第三季度和第四季度的費用逐漸下降、顯著下降。那是#1。我們認為我們對 27 個城市的覆蓋範圍相當不錯。我們可能會增加一些，但今年不會大規模擴展到70個城市。其次，Model Y。Model Y，下週應該會有某種公告。我不擔心它，因為即使到那時，它也不會在中國出現一年左右。它應該比 Model X 大 10%。它更接近我們的 ES6。但如果是 Model X——對不起，Model 3 是 400——最便宜的版本是 42 萬元人民幣。多了 10%。這意味著一兩年後，Model Y在中國的售價將超過50萬元人民幣，但與我們的ES6（35.8萬元人民幣）相比，仍然沒有價格競爭力。這取決於 Model Y 中使用的是 1 個電機還是 2 個電機。所以我認為我們的 ES6 將具有很好的競爭力。應該稍微大一點。這將是 X5 與 X3 的較量，我認為 Model Y 可以與之相媲美。因此，我認為我們的汽車已經完全準備好迎接 Model Y 在中國的挑戰。就 Model 3 而言，我們正在討論 NP2 平台、NIO 平台 2，但這不會——我們還沒有決定它的形式。所以我們不知道是否會這樣做，但明年還沒有立即計劃推出一款與同等尺寸的 Model 3 競爭的汽車。我們認為 ES6 已經與 Model 3 競爭得非常好。中國人更喜歡 SUV，而不是轎車，而我們的就是 SUV。特斯拉是一款小型轎車。轎車不是首選。其次是 Model——ES6 比 Model 3 更便宜，而且價格更高，性能統計數據更快、續航里程更長、更豪華。請記住，Model 3 是一款精簡版，內飾沒有什麼花哨的地方，表面水平也與 ES6 不同。所以我認為它們是不同的類別，而且我認為ES6應該是一款對中國用戶更具吸引力的汽車。你關於 ADAS 軟件的問題，我們目前的時間是高速公路試點或 NIO 高速公路試點將在第二季度的某個時候推出。別忘了，蔚來ES8已經配備了ADAS硬件。因此，對我們來說，一旦可用，一旦我們訂購了該套餐，我們將獲得高收入、高毛利率。因此，我們將在軟件方面將其打開，這樣我們將賺取超過 35,000 至 40,000 元人民幣。因此，我們預計 NIO 試點 - 目前的時間表是下個季度，它將發布並可供 ES8 和 ES6 車主使用。電池方面，ES8和ES6均將配備84千瓦電池。所以便宜版本的ES6也可以使用70千瓦的電池。然後，對於擁有 70 千瓦的 ES8 車主，William 和 NIO 提供一次性以舊換新優惠，如果你想購買 84 千瓦的電池，可以享受 60% 的折扣。所以我們提供它。它可用。這是同一個電池組。所以是可以互換的。因此，對於 ES8 更換的 70 千瓦電池，我們將在我們的交換網絡中使用它們。所以它們不會被浪費。因此，我們預計 ES6 的電池將在 84 千瓦的情況下將續航里程提升至 510 英里。對於 ES8，它的範圍是 355 到 420。因此，這將解決許多人的續航里程問題——ES8車主最大的抱怨是續航里程。所以我們希望在今年六月、七月之前為他們找到解決方案。王斌，這能回答你的問題嗎？好的。偉大的。我認為確實如此。請下一個問題。

There are no further questions at this time. I'd like to turn the call back over to the company for closing remarks. Thank you.

目前沒有其他問題。我想將電話轉回公司以供結束語。謝謝。

Okay. Well, thank you, everyone, for joining us today. From William and Nick and Jade and Heather and I and [Stanley] here in Hong Kong and Beijing, we thank you for your time. We look forward to seeing you.

好的。好的，謝謝大家今天加入我們。來自香港和北京的威廉、尼克、傑德、希瑟、我和[斯坦利]，我們感謝你們抽出寶貴的時間。我們期待您的光臨。

Thank you, everyone.

謝謝大家。

Thank you.

謝謝。

Thank you.

謝謝。

This concludes this conference call. You may now disconnect your line. Thank you.

本次電話會議到此結束。您現在可以斷開線路。謝謝。