蔚來 (NIO) 2019 Q1 法說會逐字稿

Hello, ladies and gentlemen.

女士們，先生們，您好。

Thank you for standing by for NIO Inc.'s First Quarter of 2019 Earnings Conference Call.

感謝您支持 NIO Inc. 2019 年第一季度財報電話會議。

(Operator Instructions) Today's conference call is recorded.

（操作員說明）記錄了今天的電話會議。

I will now turn the call over to your host, Ms. Jade Wei, Senior Director of Investor Relations of the company.

我現在將電話轉給您的主持人，公司投資者關係高級總監 Jade Wei 女士。

Please go ahead, Jade.

請繼續，傑德。

Thank you, Annie.

謝謝你，安妮。

Good evening, and good morning, everyone.

大家晚上好，早上好。

Welcome to NIO's First Quarter 2019 Earnings Conference Call.

歡迎來到 NIO 2019 年第一季度收益電話會議。

The company's financial and operational results were published in the press release earlier today and are posted on the company's IR website.

公司的財務和運營業績已在今天早些時候的新聞稿中公佈，並發佈在公司的 IR 網站上。

On today's call, we have Mr. William Li, Founder, Chairman of the Board and Chief Executive Officer; Mr. Louis Hsieh, our Chief Financial Officer; and Mr. Nick Wang, our VP -- our Vice President of Finance.

在今天的電話會議上，我們有創始人、董事會主席兼首席執行官 William Li 先生；我們的首席財務官 Louis Hsieh 先生；以及我們的副總裁 Nick Wang 先生——我們的財務副總裁。

Louis is joining us by telephone from the United States.

路易斯從美國通過電話加入我們。

Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995.

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作出的前瞻性陳述。

Forward-looking statements involve inherent risks and uncertainties.

前瞻性陳述涉及固有的風險和不確定性。

As such, the company's actual results may be materially different from the views expressed today.

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。

Further information regarding risks and uncertainties is included in certain filings of the company with the U.S. Securities and Exchange Commission.

有關風險和不確定性的更多信息包含在公司向美國證券交易委員會提交的某些文件中。

The company does not assume any obligation to update any forward-looking statements, except as required under applicable law.

公司不承擔任何更新任何前瞻性陳述的義務，除非適用法律要求。

Please also note that NIO's earnings press release and this conference call includes discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures.

另請注意，NIO 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 財務措施的討論。

Please refer to NIO's press release, which contains a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures.

請參閱 NIO 的新聞稿，其中包含未經審計的非 GAAP 措施與可比 GAAP 措施的對賬。

With that, I will turn the call over to our CFO Louis Hsieh.

有了這個，我將把電話轉給我們的首席財務官 Louis Hsieh。

Louis, please go ahead.

路易斯，請繼續。

Thank you, Jade.

謝謝你，傑德。

Hello, everyone, and thank you for joining our call today.

大家好，感謝您今天加入我們的電話會議。

In the first quarter 2019, NIO delivered 3,989 ES8s, our high-performance premium electric SUV, exceeding the company's prior delivery targets between 3,500 to 3,800.

2019 年第一季度，蔚來交付了 3,989 輛 ES8，這是我們的高性能高端電動 SUV，超過了公司先前 3,500 至 3,800 輛的交付目標。

This was followed by 1,124 ES8 deliveries in April, bringing total aggregate deliveries to 16,461 vehicles as of August 30, 2019.

其次是 4 月份交付了 1,124 輛 ES8，截至 2019 年 8 月 30 日，總交付量達到 16,461 輛。

Compared to the fourth quarter 2018, we experienced softer demand in the first quarter due to accelerated deliveries made at the end of last year in anticipation of electrical vehicle subsidy reductions as well as seasonal factors surrounding the Chinese New Year holidays.

與 2018 年第四季度相比，由於預計電動汽車補貼減少以及春節假期前後的季節性因素，我們在去年年底加速交付，導致第一季度需求疲軟。

Further, we have seen the slowdown in ES8 orders, which began -- became noticeable after Chinese New Year and has worsened into the current quarter.

此外，我們已經看到 ES8 訂單放緩，這種放緩在農曆新年後開始變得明顯，並在本季度惡化。

We anticipated sequential decrease in deliveries when second quarter closes primarily due to: one, macroeconomic concerns over the lingering U.S-China trade war; two, overall, continued sluggishness in the Chinese auto market, which saw year-over-year -- year-to-date wholesale vehicle sales drop 15% year-over-year and retail vehicle sales drop 12% year-over-year; three, larger-than-anticipated electric vehicle subsidies cuts, which lowered ES8 subsidies by 40% to RMB 40,500 from RMB 67,500 in 2018.

我們預計第二季度結束時交付量將連續下降，主要原因是：一是對揮之不去的美中貿易戰的宏觀經濟擔憂；二、總體而言，中國汽車市場持續低迷，同比——年初至今批發汽車銷量同比下降15%，零售汽車銷量同比下降12%；三是電動車補貼削減幅度超預期，ES8補貼從2018年的6.75萬元下降40%至4.05萬元。

Subsidies will further be released -- reduced to RMB 11,520 beginning June 26, 2019.

補貼將進一步發放——2019年6月26日起減至11,520元。

Additionally, we believe there is some cannibalization of ES8 orders in the current quarter caused by ES6, which became available in NIO Houses this quarter.

此外，我們認為本季度 ES6 導致本季度 ES8 訂單出現一些蠶食，ES6 本季度在 NIO Houses 上市。

ES6 is a sportier less expensive SUV by approximately RMB 90,000.

ES6是一款運動型SUV，售價約9萬元。

We anticipate this move -- this more challenging and uncertain sales environment to dampen sequential demand and reflects continued weakness in ES8 sales in the current quarter.

我們預計這一舉措——這種更具挑戰性和不確定性的銷售環境將抑制連續需求，並反映出本季度 ES8 銷售的持續疲軟。

In light of the challenging sales backdrop and macroeconomic environment, the company has already began taking steps to control costs and optimize operational efficiencies.

鑑於充滿挑戰的銷售背景和宏觀經濟環境，公司已經開始採取措施控製成本和優化運營效率。

Nick will elaborate later on this call.

尼克稍後將詳細說明此次通話。

But some early results of our cost control efforts already reflected in first quarter numbers.

但我們的成本控制努力的一些早期成果已經反映在第一季度的數字中。

A quarter-over-quarter 28.8% sequential decrease in R&D spend and a quarter-over-quarter 32.2% sequential decrease in SG&A spend.

研發支出環比下降 28.8%，SG&A 支出環比下降 32.2%。

These initial efforts provide us the runway required to optimize the business sustainability for the long run.

這些初步努力為我們提供了優化業務可持續性所需的跑道。

We expect to see more efficiency gains to pick up in the coming quarters.

我們預計未來幾個季度會出現更多效率提升。

Also as part of the larger restructuring initiative to optimize operational efficiencies, we made the hard and necessary decision to pare down headcount by 4.5% to 9,390 globally as of April 30, 2019, down from 9,834 at the end of 2018.

此外，作為優化運營效率的更大規模重組計劃的一部分，我們做出了艱難而必要的決定，截至 2019 年 4 月 30 日，全球員工人數從 2018 年底的 9,834 人減少 4.5% 至 9,390 人。

And now I'd like to give you an update on our sales expectations for ES8 and ES6.

現在我想向您更新我們對 ES8 和 ES6 的銷售預期。

With 1,124 ES8 deliveries in the month of April, total ES8 deliveries for the year 2019, 4 months, stood at 5,113.

4 月份交付了 1,124 輛 ES8，2019 年 4 個月的 ES8 總交付量為 5,113 輛。

Moving to our ES6, our second production model, a 5-seater high-performance premium electric SUV.

轉向我們的第二款量產車型 ES6，這是一款 5 座高性能高級電動 SUV。

We are excited that, as of today, the first ES6 ready to be delivered in our external users is rolled off the production line.

我們很高興，截至今天，第一款準備交付給我們外部用戶的 ES6 已下線。

In June, as scheduled, more ES8s will be produced and the first deliveries will reach NIO users.

6月，如期將生產更多ES8，首批交付給蔚來用戶。

The ES6 has received broad-based positive feedback from the media and potential customers.

ES6 已收到來自媒體和潛在客戶的廣泛積極反饋。

Ever since its recent Shanghai Auto Show and the early reviews from our ES6 test drive campaign launched in May bode well for continued positive momentum.

自從最近的上海車展和我們 5 月份推出的 ES6 試駕活動的早期評論以來，預示著持續的積極勢頭。

We currently have more than 12,000 ES6 preorders as a growing pipeline, among which over 5,000 were added during the past 5.5 weeks since the Shanghai Auto Show.

我們目前有超過 12,000 輛 ES6 預購訂單正在增加，其中在上海車展後的過去 5.5 週內增加了 5,000 多輛。

Our users had the access to touch and feel the ES6 for the first time.

我們的用戶第一次可以觸摸和感受 ES6。

We are confident that as more and more new potential users start to experience the ES6 firsthand from behind the wheel and on the road that the vehicles competitive features and price will translate to increased market demand.

我們相信，隨著越來越多的新潛在用戶開始在方向盤後面和路上親身體驗 ES6，車輛具有競爭力的功能和價格將轉化為增加的市場需求。

Now through the lens of optimizing efficiencies, controlling costs and managing cash flows, I would like to provide some specifics on how we are approaching certain business decisions related to our service network.

現在，通過優化效率、控製成本和管理現金流的角度，我想提供一些細節，說明我們如何處理與我們的服務網絡相關的某些業務決策。

Starting with our NIO Houses.

從我們的 NIO Houses 開始。

NIO pop-up houses are important to our direct-to-sales model.

NIO 快閃店對我們的直銷模式很重要。

We currently have 15 NIO Houses in 12 cities across China.

我們目前在中國 12 個城市擁有 15 個 NIO House。

These are complemented by 17 NIO pop-up houses as an additional 17 cities.

另外還有 17 個城市的 17 個蔚來快閃店作為補充。

Going forward, we will shift our focus to smaller NIO pop-up houses in a similar kind.

展望未來，我們將把重點轉移到類似類型的小型 NIO 快閃店。

NIO pop-up houses require less capital and provide greater flexibility on the cost side.

NIO 彈出式房屋需要更少的資金，並在成本方面提供更大的靈活性。

We believe that the combined number of NIO house and NIO pop-up houses across China provide the necessary support and coverage for our sales and market penetration plans and a limited number of new facilities will be added in the near future.

我們相信，中國各地的 NIO house 和 NIO pop-up house 的總數為我們的銷售和市場滲透計劃提供了必要的支持和覆蓋，並且在不久的將來將增加有限數量的新設施。

For NIO service centers as of April 2019, we have 14 covering major cities across the country.

截至2019年4月，蔚來服務中心共有14個，覆蓋全國主要城市。

We had an additional 100 authorized service centers nationwide, forming a comprehensive network coverage.

全國新增授權服務中心100家，網絡覆蓋全面。

Authorized service centers or ASCs represent cooperation with existing Tier 1 4S dealership partners.

授權服務中心或 ASC 代表與現有一級 4S 經銷商合作夥伴的合作。

We have a dedicated team that selects, trains and certifies ASCs to be part of our network.

我們有一個專門的團隊來選擇、培訓和認證 ASC 成為我們網絡的一部分。

To support our sales goals in 2019, we will focus on the asset-light ASC to expand our service coverage.

為支持2019年銷售目標，我們將以輕資產ASC為重點，擴大服務覆蓋面。

Turning to NIO Power.

轉向 NIO Power。

We presently have 125 NIO battery swap centers throughout the country, which we believe will provide sufficient coverage for our users at this stage.

我們目前在全國擁有 125 個 NIO 電池交換中心，我們相信這將在現階段為我們的用戶提供足夠的覆蓋。

By continually analyzing our location data, we can flexibly deploy these resources and adjust locations to fully optimize the efficiency of this power solutions network.

通過不斷分析我們的位置數據，我們可以靈活地部署這些資源並調整位置，以充分優化該電源解決方案網絡的效率。

With NIO Power mobile, we currently have around 500 on the road, which can easily support both our current users as well as our anticipated future users in 2019.

借助 NIO Power mobile，我們目前有大約 500 個在路上，可以輕鬆支持我們當前的用戶以及 2019 年預期的未來用戶。

Currently, around 80% of NIO users have installed home chargers, which remain as the most efficient and cost-effective power solutions for both our users and the company.

目前，大約 80% 的 NIO 用戶已經安裝了家用充電器，這仍然是我們用戶和公司最高效、最具成本效益的電源解決方案。

We launched our fast charger power station recently at the Shanghai Auto Show and a number of the fast charger is still small.

我們最近在上海車展上推出了我們的快充電站，而且快充的數量還很少。

We still only install future fast chargers based on surge demand of our vehicles and service needs.

我們仍然只根據車輛的激增需求和服務需求安裝未來的快速充電器。

In April, we opened our One Click power solution network in other electric vehicle -- to other vehicle -- electric vehicle brands in China.

4 月，我們在其他電動汽車——對其他汽車——中國電動汽車品牌中開通了 One Click 電源解決方案網絡。

With this program, third-party EV owners in China are able to use the NIO Power One Click valet charging service.

通過該計劃，中國的第三方電動汽車車主可以使用 NIO Power One Click 代客充電服務。

This will allow for the growth of the service, improve the operating efficiency and expand NIO's brand awareness across the electric vehicle general public.

這將促進服務的增長，提高運營效率，並擴大 NIO 在電動汽車大眾中的品牌知名度。

On a separate note, I would like to give you a brief update on a few of our ongoing initiatives.

另外，我想向您簡要介紹一下我們正在進行的一些舉措。

At the Shanghai Auto Show, company showcased a preview version of ET7, a high-performance premium electric sedan.

在上海車展上，公司展示了高性能高級電動轎車ET7的預覽版。

Recently, the company made the decision to design and develop ET series with the future NIO platform 2.0 or NP2, a new generation product platform of NIO with Level 4 autonomous driving capabilities.

近日，公司決定採用未來NIO平台2.0或NP2設計開發ET系列，這是蔚來新一代具備4級自動駕駛能力的產品平台。

We will provide an update on the launch time line of ET series in the future.

我們將在未來提供有關 ET 系列發佈時間線的更新。

Meanwhile, the company plans to leverage the platform technologies from ES8 and ES6 to create a new model design more efficiently and expect to launch the third vehicle model in 2020.

同時，公司計劃利用ES8和ES6的平台技術，更高效地打造新車型設計，預計2020年推出第三款車型。

We will continue to invest in research and development in our products and our technologies, in particular, NP2.

我們將繼續投資於我們的產品和技術的研發，尤其是 NP2。

As we do so, we will look to build strategic research alliances with partners in the automotive and technology sectors.

在此過程中，我們將尋求與汽車和技術領域的合作夥伴建立戰略研究聯盟。

We expect such collaborations can continually advance the technologies of our vehicles and platforms to leverage strength and resources.

我們期望這樣的合作能夠不斷推進我們的車輛和平台的技術，以利用實力和資源。

Recent developments.

近期發展。

First, we are very pleased to announce that NIO has entered into a framework agreement with Beijing E-Town International Investment and Development company, E-Town Capital, an investment company headquartered in Beijing Economic Technology Development Area, so-called BDA.

首先，我們非常高興地宣布，蔚來已與北京亦莊國際投資發展公司即亦莊資本簽訂了框架協議，後者是一家總部位於北京經濟技術開發區的投資公司，即 BDA。

Pursuant to this agreement, the company will establish an entity as NIO China in the BDA and contribute certain businesses and assets into this entity.

根據該協議，公司將在北京開發區設立蔚來中國實體，並向該實體投入部分業務和資產。

E-Town Capital will initially invest up to RMB 10 billion through its affiliated entities or jointly with third parties in NIO China in exchange for a minority equity stake.

亦莊資本將通過其關聯實體或與第三方共同向蔚來中國投資不超過100億元人民幣，以換取蔚來中國的少數股權。

Furthermore, it is expected that E-Town Capital will help NIO to build or to find third-party partners to build a new manufacturing facility for our next-generation vehicles of NIO.

此外，預計亦莊資本將幫助蔚來建設或尋找第三方合作夥伴為蔚來的下一代汽車建設新的製造工廠。

We will continue working together towards signing a binding definitive agreement for this investment.

我們將繼續共同努力，為這項投資簽署具有約束力的最終協議。

Second, in April 2018, the company established a joint venture company, GAC-NIO, together with NIO Capital, Guangqi New Energy Automotive (sic) Automobile and GAC to mainly engage in electric vehicle and parts development, sales and service.

二是2018年4月，公司與蔚來資本、廣汽新能源汽車、廣汽成立合資公司廣汽蔚來，主要從事電動汽車及零部件的開發、銷售和服務。

William Li, Founder, Chairman and Chief Executive Officer of NIO, is serving as the Chairman of GAC-NIO.

蔚來創始人、董事長兼首席執行官李斌擔任廣汽蔚來董事長。

About a week ago, GAC-NIO released a new brand, Hycan He Chuang and plans to launch the first vehicle model this year.

大約一周前，廣汽蔚來發布了新品牌Hycan和創，併計劃在今年推出首款車型。

We expect to work strategically with GAC-NIO and leverage each other's strengths in technology, supply chain and service networks.

我們期待與廣汽蔚來戰略合作，在技術、供應鏈、服務網絡等方面發揮各自優勢。

Third, ES6 manufacturing agreement.

三、ES6製造協議。

In April 2019, we entered into a manufacturing cooperation agreement with JAC for the ES6, which is basically a supplement to our existing manufacturing agreement of the ES8.

2019 年 4 月，我們與江淮汽車簽訂了 ES6 的製造合作協議，這基本上是對我們現有的 ES8 製造協議的補充。

We will continue paying JAC manufacturing fees on a per-vehicle regular basis and compensate JAC for its audited operating losses.

我們將繼續按每輛車定期支付 JAC 製造費，並補償 JAC 經審計的經營虧損。

Please refer to our earnings press release published on our ri website a few hours ago for more details.

有關詳細信息，請參閱幾個小時前在我們的 ri 網站上發布的收益新聞稿。

With that, I will now turn the call over to our Vice President of Finance, Mr. Nick Wang, to provide the financial details for the quarter.

有了這個，我現在將把電話轉給我們的財務副總裁 Nick Wang 先生，以提供本季度的財務細節。

Nick?

缺口？

Please go ahead.

請繼續。

Thank you, Louis.

謝謝你，路易斯。

I'll now go over some of our financial results for the first quarter of 2019.

我現在將回顧一下我們 2019 年第一季度的一些財務業績。

To be mindful of the length of this call, I will address financial highlights here and encourage listeners to refer to our earnings press release, which is posted online for additional details.

請注意本次電話會議的時間長度，我將在這裡介紹財務重點，並鼓勵聽眾參考我們的收益新聞稿，該新聞稿發佈在網上以了解更多詳細信息。

Our total revenues in the first quarter of 2019 were RMB 1.6 billion or USD 243.1 million, representing a decrease of 52.5% from the fourth quarter of 2018.

我們在 2019 年第一季度的總收入為 16 億元人民幣或 2.431 億美元，比 2018 年第四季度下降 52.5%。

Our total revenues are made of two parts, vehicle sales and auto sales.

我們的總收入由兩部分組成，汽車銷售和汽車銷售。

Vehicle sales in the first quarter of 2019 were RMB 1.5 billion or USD 228.8 million, representing a decrease of 54.6% from the fourth quarter of 2018.

2019 年第一季度汽車銷量為 15 億元人民幣或 2.288 億美元，比 2018 年第四季度下降 54.6%。

The decrease in vehicle sales over the fourth quarter of 2018 was attributed to accelerated deliveries of the ES8 in the fourth quarter of 2018 in anticipation of EV subsidy reductions in China in 2019 as well as the seasonal slowdown surrounding the Chinese New Year holidays in the first quarter of 2019.

2018 年第四季度汽車銷量下降的原因是 2018 年第四季度 ES8 的交付加速，預計 2019 年中國電動汽車補貼將減少，以及第一季度春節假期前後的季節性放緩2019 年四分之一。

Other sales in the first quarter of 2019 were RMB 96.0 million or USD 14.3 million representing an increase of 76.4% from the fourth quarter of 2018.

2019 年第一季度其他銷售額為 9600 萬元人民幣或 1430 萬美元，比 2018 年第四季度增長 76.4%。

The increase in other sales over the fourth quarter of 2018 was mainly attributed to increased revenue derived from NIO Life merchandise and services provided in first quarter of 2019.

其他銷售額較 2018 年第四季度的增長主要歸因於 2019 年第一季度提供的 NIO Life 商品和服務的收入增加。

Cost of sales in the first quarter of 2019 was RMB 1.9 billion or USD 275.7 million, representing a decrease of 45.9% from the fourth quarter of 2018.

2019 年第一季度銷售成本為人民幣 19 億元或 2.757 億美元，較 2018 年第四季度下降 45.9%。

The decrease in cost of sales over the fourth quarter of 2018 was mainly driven by the decrease of delivery volume on the ES8 in the quarter.

2018 年第四季度銷售成本下降主要是由於本季度 ES8 的交付量下降。

Gross margin in the first quarter of 2019 was negative 13.4% compared with positive 0.4% in the fourth quarter of 2018, mainly driven by the decrease of vehicle margin in the quarter.

2019 年第一季度毛利率為負 13.4%，而 2018 年第四季度為正 0.4%，主要受該季度汽車毛利率下降的推動。

More specifically, vehicle margin in the first quarter of 2019 was negative 7.2% compared with positive 3.7% in the fourth quarter of 2018.

更具體地說，2019 年第一季度的汽車利潤率為負 7.2%，而 2018 年第四季度為正 3.7%。

The decrease in vehicle margin was mainly driven by the decrease of delivery volume of ES8 in the quarter.

整車利潤率下降主要是由於本季度 ES8 交付量下降所致。

Research and development expenses in the first quarter of 2019 were RMB 1.1 billion or USD 160.7 million, representing an increase of 55.4% from the first quarter of 2018 and a decrease of 28.8% from the fourth quarter of 2018.

2019年第一季度研發費用為11億元人民幣或1.607億美元，較2018年第一季度增長55.4%，較2018年第四季度下降28.8%。

Excluding non-GAAP share-based compensation expenses, research and development expenses were RMB 1.0 billion or USD 155.9 million, representing an increase of 52.7% from the first quarter of 2018 and a decrease of 30% from the fourth quarter of 2018.

剔除非美國通用會計準則股權激勵費用，研發費用為人民幣 10 億元或 1.559 億美元，較 2018 年第一季度增長 52.7%，較 2018 年第四季度下降 30%。

The decrease in research and development expenses over the fourth quarter of 2018 was primarily attributed to the higher design and professional expenses incurred in the fourth quarter of 2018 to support the frequent test, research and development stage of the ES6, our 5-seater high-performance premium electric SUV launched in December 2018.

研發費用較 2018 年第四季度減少主要是由於 2018 年第四季度為支持 ES6 的頻繁測試和研發階段而產生的較高設計和專業費用，我們的 5 座高2018 年 12 月推出的性能高級電動 SUV。

Selling, general and administrative expenses in the first quarter of 2019 were RMB 1.3 billion or USD 196.7 million, representing an increase of 71.5% from the first quarter of 2018 and a decrease of 32.2% from the fourth quarter of 2018.

2019 年第一季度的銷售、一般和管理費用為 13 億元人民幣或 1.967 億美元，比 2018 年第一季度增長 71.5%，比 2018 年第四季度下降 32.2%。

Excluding non-GAAP share-based compensation expenses, selling, general and administrative expenses were RMB 1.2 billion or USD 183.9 million, representing an increase of 67.6% from the first quarter of 2018 and a decrease of 32.4% from the fourth quarter of 2018.

剔除非美國通用會計準則股權激勵費用後，銷售、一般和管理費用為人民幣 12 億元或 1.839 億美元，較 2018 年第一季度增長 67.6%，較 2018 年第四季度下降 32.4%。

The decrease in selling, general and administrative expenses over the fourth quarter of 2018 was primarily attributed to decreased marketing and promotional activities and decreased expenditures on outsourcing professional services.

2018 年第四季度銷售、一般和管理費用的減少主要是由於營銷和促銷活動減少以及外包專業服務支出減少。

Loss from operations in the first quarter of 2019 was RMB 2.6 billion or USD 390.0 million representing an increase of 78.8% from the first quarter of 2018 and a decrease of 24.1% from the fourth quarter of 2018.

2019 年第一季度經營虧損為 26 億元人民幣或 3.90 億美元，較 2018 年第一季度增長 78.8%，較 2018 年第四季度下降 24.1%。

Excluding share-based compensation expenses, non-GAAP adjusted loss from operations was RMB 2.5 billion or USD 372.2 million, representing an increase of 75.7% from the first quarter of 2018 and a decrease of 24.4% from the fourth quarter of 2018.

剔除股權激勵費用後，非美國通用會計準則調整後經營虧損為人民幣 25 億元或 3.722 億美元，較 2018 年第一季度增長 75.7%，較 2018 年第四季度下降 24.4%。

Share-based compensation expenses in the first quarter of 2019 were RMB 119.6 million or USD 17.8 million, representing an increase of 184% from the first quarter of 2018 and a decrease of 15.6% from the fourth quarter of 2018.

2019 年第一季度股權激勵費用為人民幣 1.196 億元或 1780 萬美元，較 2018 年第一季度增長 184%，較 2018 年第四季度下降 15.6%。

The decrease in share-based compensation expenses over the fourth quarter of 2018 was primarily attributed to the decrease of share-based compensation expenses related to certain directors and executive officers.

2018 年第四季度以股份為基礎的薪酬費用減少的主要原因是與某些董事和執行官相關的以股份為基礎的薪酬費用減少。

Our net loss was RMB 2.6 billion or USD 390.9 million in the first quarter of 2019, representing an increase of 71.4% from the first quarter of 2018 and a decrease of 25.1% from the fourth quarter of 2018.

我們在 2019 年第一季度的淨虧損為 26 億元人民幣或 3.909 億美元，比 2018 年第一季度增長 71.4%，比 2018 年第四季度下降 25.1%。

Excluding share-based compensation expenses, adjusted non-GAAP net loss was RMB 2.5 billion or USD 373.1 million in the first quarter of 2019, representing an increase of 68.2% from the first quarter of 2018 and a decrease of 25.5% from the fourth quarter of 2018.

剔除股權激勵費用後，2019 年第一季度調整後的非美國通用會計準則淨虧損為人民幣 25 億元或 3.731 億美元，較 2018 年第一季度增長 68.2%，較第四季度下降 25.5% 2018 年。

Net loss attributable to NIO's ordinary shareholders in the first quarter of 2019 was RMB 2.6 billion or USD 395.2 million, representing a decrease of 32.8% from the first quarter of 2018 and a decrease of 24.6% from the fourth quarter of 2018.

2019年第一季度歸屬於蔚來普通股股東的淨虧損為26億元人民幣或3.952億美元，較2018年第一季度下降32.8%，較2018年第四季度下降24.6%。

Excluding share-based compensation expenses and accretion on redeemable noncontrolling interests to redemption values, adjusted net loss attributable to NIO's ordinary shareholders on a non-GAAP basis was RMB 2.5 million or USD 372.7 million.

不包括基於股份的補償費用和可贖回非控股權益對贖回價值的增加，根據非美國通用會計準則調整後歸屬於 NIO 普通股股東的淨虧損為 250 萬元人民幣或 3.727 億美元。

Basic and diluted net loss per ADS in the first quarter of 2019 were both RMB 2.56 or $0.38.

2019 年第一季度每 ADS 的基本和攤薄淨虧損均為 2.56 元人民幣或 0.38 美元。

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 2.42 or $0.36.

不包括基於股份的補償費用和可贖回非控股權益對贖回價值的增加，非美國通用會計準則調整後每 ADS 基本和攤薄淨虧損均為 2.42 元人民幣或 0.36 美元。

Our balance of cash and cash equivalents, restricted cash and short-term investment was RMB 7.5 billion or USD 1.1 billion as of March 31, 2019.

截至 2019 年 3 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人民幣 75 億元或 11 億美元。

On January 1, 2019, the company adopted ASC 842, leases and used additional transitional method to initially apply this newly lease standard at the adoption date.

2019 年 1 月 1 日，公司採用 ASC 842，租賃並使用額外的過渡方法在採用日初步應用該新租賃準則。

Right-of-use assets and lease liabilities were recognized on the company's consolidated financial statements.

使用權資產和租賃負債在公司的合併財務報表中確認。

And now for our business outlook.

現在是我們的業務前景。

For the second quarter of 2019, the company expects deliveries to be between 2,800 and 3,200 vehicles, representing a decrease of approximately 19.8% to 29.8% from the first quarter of 2019.

公司預計 2019 年第二季度的交付量將在 2,800 至 3,200 輛之間，較 2019 年第一季度下降約 19.8% 至 29.8%。

This outlook incorporates the planned delivery of several hundred ES6 in June 2019.

該展望包含計劃於 2019 年 6 月交付的數百輛 ES6。

The company also expects second quarter total revenue to be between RMB 1.1 billion and RMB 1.3 billion or between USD 169 million and USD 193 million.

公司還預計第二季度總收入將在 11 億元人民幣至 13 億元人民幣或 1.69 億美元至 1.93 億美元之間。

This would represent a decrease of approximately 20.7% to 30.5% from the first quarter of 2019.

這將比 2019 年第一季度減少約 20.7% 至 30.5%。

So this concludes our prepared remarks.

我們準備好的發言到此結束。

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

我現在將把電話轉給接線員，以方便我們的問答環節。

(Operator Instructions) Your first question comes from the line of Bin Wang of Crédit Suisse.

（操作員說明）您的第一個問題來自瑞士信貸銀行的王斌。

Thank you so much for taking my questions.

非常感謝你回答我的問題。

I have 3 ones.

我有 3 個。

The first one is about ES6 order.

第一個是關於 ES6 順序的。

Actually, you said that in the past 5.5 weeks, you got around 5,000 orders.

實際上，您說在過去的 5.5 週內，您收到了大約 5,000 個訂單。

I would recall in the conference call in the year 2018 results, you mentioned already you have got 7,000 orders by around early March.

我記得在 2018 年業績的電話會議上，你提到你已經在 3 月初左右收到了 7,000 個訂單。

So nearly -- around one month in between.

如此之近——中間大約一個月。

It seemed that in that one month, not much order received.

似乎在那一個月裡，接到的訂單並不多。

Can you explain why in that one month not much order for ES6?

你能解釋一下為什麼那一個月 ES6 的訂單不多嗎？

That's number one question.

這是第一個問題。

Number two question is about your recent announcement about NIO China.

第二個問題是關於您最近關於蔚來中國的公告。

Can I know what's the specific arrangement?

請問具體安排是怎樣的？

It means that after this call, there will be another joint venture between NIO Inc.

這意味著，在此次通話之後，蔚來汽車與蔚來汽車之間將有另一家合資企業。

and E-Town?

和亦莊？

And what will be that effect in addition into this NIO China asset details, please?

請問，除了蔚來中國資產的詳細信息之外，還有什麼影響？

And number three, can you confirm whether your full year volume guidance changed or not?

第三，你能確認你的全年銷量指導是否改變了嗎？

As I remembered, your full year volume guidance is 40,000 units, it's more than 20,000 units with ES6, can you remind us your full year volume guidance?

我記得，你的全年銷量指導是 40,000 台，ES6 超過 20,000 台，你能提醒我們你的全年銷量指導嗎？

Wang Bin, this is Louis.

王斌，這位是路易斯。

I'll take one and three, and I'll let William and Nick answer two.

我選一和三，我讓威廉和尼克回答二。

For one, we had 7,000-something preorders for ES6, but don't forget, those orders are refundable.

首先，我們有 7,000 多個 ES6 預訂單，但不要忘記，這些訂單是可以退款的。

So during May, March and -- I mean, during that month before the Shanghai Auto Show, there was a 1,000-or-so plus, I can't remember the exact number, who also got a refund on their order.

所以在 5 月、3 月和——我的意思是，在上海車展之前的那個月，有 1,000 多輛，我記不清具體數字了，他們的訂單也得到了退款。

So what we're talking about is new orders from April, I guess, 17th or 18th when the Shanghai Auto Show started until yesterday.

所以我們談論的是從 4 月開始的新訂單，我猜是從 17 號或 18 號上海車展開始到昨天。

So those 5 weeks, but don't forget there's also cancellations in orders since it's a moving target.

所以那 5 週，但不要忘記訂單也被取消，因為它是一個移動的目標。

But it's very encouraging to see 5,000 new preorders in only 5.5 weeks since ES6 was launched.

但在 ES6 推出後僅 5.5 週內就看到 5,000 個新預訂單，這非常令人鼓舞。

It has gotten obviously very good accolades and very good reviews from the press and from the driving magazines.

它顯然獲得了來自媒體和駕駛雜誌的非常好的讚譽和好評。

On question three, regarding the guidance, we had targeted for the year -- I've been telling people recently about 35,000 to 40,000 as of in March or so a few months ago.

關於第三個問題，關於指導，我們設定了今年的目標——我最近告訴人們，截至幾個月前的 3 月左右，大約有 35,000 到 40,000 人。

The slowdown has hit us with the subsidy reduction.

經濟放緩打擊了我們補貼的減少。

Remember ES8 subsidies went from 67,000 down to under 40,000 and going to 11,000 ES8 soon.

記得 ES8 補貼從 67,000 降到 40,000 以下，很快就會到 11,000 ES8。

And then, with the trade war and the softening environment, I think at this time, we are not prepared to give any kind of target number for the full year.

然後，隨著貿易戰和軟化環境，我認為此時，我們不准備給出全年的任何目標數字。

What I'd like to do is wait until ES6 is launched and see how that ramps up, so we'll be in a better position to give full year sort of targeted numbers.

我想做的是等到 ES6 發布，看看它是如何增加的，這樣我們就能更好地給出全年的目標數字。

It's unofficial but targeted numbers in a couple of months once ES6 is launched.

這是非官方的，但在 ES6 發布後的幾個月內是有針對性的數字。

And then, William and Nick, you want to take the E-Town question?

然後，William 和 Nick，你們想回答 E-Town 的問題嗎？

Yes.

是的。

Okay.

好的。

(foreign language)

（外語）

[Interpreted] Wang Bin, thank you for your question.

【解讀】王斌，謝謝你的提問。

So regarding our recent announcement about our framework agreement with the E-Town International Investment and Development Co., which is E-Town Capital.

因此，關於我們最近宣布與亦莊國際投資發展有限公司（即亦莊資本）簽訂的框架協議。

Actually, E-Town Capital has been helping us through its third-party partners and also its affiliated entities to inject about RMB 10 billion in exchange for the minority equity stake for the NIO.

實際上，亦莊資本一直在通過其第三方合作夥伴及其關聯實體幫助我們注資約100億元人民幣，為蔚來汽車換取少數股權。

And at the same time, NIO will be establishing NIO China in the BDA E-Town.

同時，蔚來將在BDA亦莊設立蔚來中國。

So we will be reallocating part of our major business to this NIO China, but still NIO Inc.

所以我們將把我們的部分主要業務重新分配給蔚來中國，但仍然是蔚來公司。

will be holding most of its control over the NIO China, and also NIO China will be part of our consolidated statements.

將持有蔚來中國的大部分控制權，蔚來中國也將成為我們合併報表的一部分。

So NIO China will be important channel and the tool for our RMB fundraising, because it's through our public in the NYSE, we have a very diverse fundraising channel for the U.S. dollars.

所以蔚來中國將是我們人民幣融資的重要渠道和工具，因為它是通過我們在紐約證券交易所的公眾，我們有一個非常多樣化的美元融資渠道。

With the NIO China, we can diversify our fundraising channel for the RMB, with both fundraising channels I think it will help us to sustain our future developments for the second-generation platform.

有了蔚來中國，我們可以豐富人民幣的融資渠道，兩種融資渠道我認為這將有助於我們維持我們第二代平台的未來發展。

And the team is now working with E-Town on the details of this definitive agreement and there will be a lot of details that need to be refined, and we will keep you guys updated on this news.

團隊現在正在與亦莊合作，制定最終協議的細節，還有很多細節需要完善，我們會及時通知大家最新消息。

Our next question comes from the line of Wei Feng of CICC.

我們的下一個問題來自中金公司的魏鋒。

So my first question is also about NIO China.

所以我的第一個問題也是關於蔚來中國的。

So if E-Town will become a minority shareholder of NIO China.

所以如果亦莊會成為蔚來中國的小股東。

Besides the term of getting fresh capital, what can NIO expect from E-Town?

除了獲得新資本，蔚來還能對亦莊有什麼期待？

And will NIO setup manufacturing capability in Beijing, so would you still prefer the outsourcing or turn to the in-house manufacturing in the future?

蔚來是否會在北京設廠，未來你還是傾向於外包還是轉向自產？

That's the first question.

這是第一個問題。

The second question is about how to stimulate the sales if the demand continues to remain weak?

第二個問題，如果需求持續疲軟，如何刺激銷售？

Do we have any other plans to stimulate the sales?

我們還有其他刺激銷售的計劃嗎？

This is the second question.

這是第二個問題。

And the second question is about NIO and GAC-NIO.

第二個問題是關於NIO和GAC-NIO。

Would the JV in the future generate any cash flow to NIO and what is synergy between NIO and GAC-NIO?

未來合資企業是否會為蔚來產生任何現金流？蔚來和廣汽蔚來之間的協同作用是什麼？

William, you want to take these 3 questions after you translate?

William，你想在翻譯後回答這三個問題嗎？

Okay.

好的。

(foreign language)

（外語）

[Interpreted] So regarding your first question, the framework agreement that we entered with E-Town Capital is mainly, as William mentioned, that the E-Town Capital will be helping us to find the third-party partners to build a manufacturing facilities for next-generation platform products.

[解讀]那麼關於你的第一個問題，我們跟亦莊資本簽訂的框架協議，正如William提到的，主要是亦莊資本會幫助我們尋找第三方合作夥伴，為我們建立一個生產設施。下一代平台產品。

But for the near term, we will be upholding the joint manufacturing model as we are having right now with the GAC because this manufacturing corporation has a very high efficiency in terms of the management and investment.

但在短期內，我們將堅持目前與廣汽集團的聯合製造模式，因為這家製造公司在管理和投資方面具有非常高的效率。

Of course, we will not exclude any opportunities that we may be establishing our own manufacturing facilities, but for this RMB10 billion fundraising or assets you're raising it is more of a development, research and also the user network requirements.

當然，我們不會排除我們可能建立自己的製造設施的任何機會，但是對於這100億人民幣的資金或您正在籌集的資產，它更多的是開發、研究以及用戶網絡的需求。

(foreign language)

（外語）

[Interpreted] Regarding your second question about the sales volume of ES6.

【解讀】關於第二個關於ES6銷量的問題。

Actually, we've kicked off the global media test drive and also the nationwide user test drive, and we've been collecting a lot of feedback, a positive feedback and the review from these people and participants.

實際上，我們已經啟動了全球媒體試駕和全國用戶試駕，我們收集了很多反饋，這些人和參與者的積極反饋和評價。

So for the next following months, we will be taking active market campaigns both online and offline, so that more people can appreciate and understand our products.

因此在接下來的幾個月裡，我們將積極開展線上和線下的市場活動，讓更多的人能夠欣賞和了解我們的產品。

We will organize more test drives for our potential users, and we will also seek to expand our sales channels.

我們會為潛在用戶組織更多的試駕，我們也會尋求擴大我們的銷售渠道。

Of course, direct selling will still be one of our top priorities, but at the same time, we will try to find opportunities, so that we can present our products from our partners' site and more people will get to know our brand.

當然，直銷仍將是我們的首要任務之一，但與此同時，我們會努力尋找機會，以便我們可以在合作夥伴的網站上展示我們的產品，讓更多人了解我們的品牌。

And for ES6, we believe it is a powerful and strong product compared with the Q5 from Audi, GLC from Mercedes-Benz and X3 from BMW.

而對於ES6，我們認為與奧迪的Q5、奔馳的GLC、寶馬的X3相比，它是一款強大而強大的產品。

Actually, ES6 is on par with this.

實際上，ES6 與此不相上下。

If you look at the sales volume of ES8 for the first 4 months of 2019, you will find its sales volume ranked the first place among all the 7-seater premium SUV.

看看ES8 2019年前4個月的銷量，它的銷量在所有7座豪華SUV中排名第一。

Actually, the sales volume of ES8 has surpassed the volume of XC90 for the first 4 months this year.

實際上，今年前4個月，ES8的銷量已經超過了XC90。

And the sales volume of ES8 is 2x the sales of the Model X from Tesla.

ES8 的銷量是特斯拉 Model X 銷量的 2 倍。

And for ES6, it will be tapping into a wider market, the 5-seater SUV.

而對於ES6，它將進軍更廣闊的市場，即5座SUV。

And in this competition, we believe that the ES6 will be outperforming other products even including the gasoline cars.

而在這場比賽中，我們相信ES6的表現會超越其他產品，甚至包括汽油車。

(foreign language)

（外語）

[Interpreted] As for your third question about the joint venture between GAC and NIO, we just announced the GAC-NIO's latest brand.

【解讀】關於第三個關於廣汽蔚來合資的問題，我們剛剛公佈了廣汽蔚來的最新品牌。

That is Hycan He Chuang.

那就是Hycan和窗。

And they will be launching the product next year.

他們將於明年推出該產品。

This is a very important long-term strategic partnership for both sides.

這對雙方來說都是非常重要的長期戰略夥伴關係。

So we can leverage each other's strengths in terms of the R&D, supply chain and service network.

因此，我們可以在研發、供應鍊和服務網絡方面發揮彼此的優勢。

And we can also utilize these synergies.

我們也可以利用這些協同作用。

And we have confidence with this sustainable and long-term partnership.

我們對這種可持續的長期合作夥伴關係充滿信心。

We may not see some immediate payback or returns at the short term, but we believe for the long term, this will be a very good partnership for both sides.

短期內我們可能看不到立即的回報或回報，但我們相信從長遠來看，這對雙方來說都是非常好的合作夥伴關係。

(foreign language)

（外語）

[Interpreted] And also for this Hycan, actually the price range of Hycan will be a bit lower than the price range of NIO products.

【解讀】還有就是這款Hycan，其實Hycan的價格區間會比蔚來產品的價格區間低一點。

So with this platform or with this joint venture, it doesn't mean that NIO will be selling our products directly with this platform.

所以有了這個平台或這個合資企業，並不意味著蔚來將直接通過這個平台銷售我們的產品。

Instead, we want to leverage its cost efficiency on this highly competitive platform, so that we will be tapping into the wider market.

相反，我們希望在這個競爭激烈的平台上利用其成本效益，以便我們能夠開拓更廣闊的市場。

This is another approach for NIO to expand our market presence.

這是蔚來擴大市場影響力的另一種方式。

Our next question comes from the line of Dan Galves of Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Dan Galves。

The first question is related to competitive dynamic for ES8.

第一個問題與 ES8 的競爭動態有關。

What is expected with the subsidy ready to come down even further in June that you might have a prebuy of this product?

隨著補貼準備在 6 月進一步下降，您可能會預購該產品，您對此有何期待？

Maybe if you could just talk about what vehicles the ES8 is competing with?

也許你可以談談 ES8 正在與哪些車輛競爭？

And how it's doing competitively in terms of market share?

它在市場份額方面的競爭力如何？

The second question is just about if you could help us to understand the cash burn in Q1?

第二個問題是關於您是否可以幫助我們了解第一季度的現金消耗情況？

If you could give us any detail on what the CapEx was, working capital?

您是否可以向我們提供有關資本支出、營運資金的任何詳細信息？

And more importantly, what is the outlook for the cash burn in future quarters?

更重要的是，未來幾個季度的現金消耗前景如何？

Once the ES6 launches, should we be expecting a significant lower cash burn in the future?

一旦 ES6 發布，我們是否應該期待未來的現金消耗會顯著降低？

William, do you want to take the ES8 competitive landscape question, and Nick, you can take the cash burn question for R&D and CapEx spend?

威廉，你想回答 ES8 競爭格局問題嗎？尼克，你可以回答研發和資本支出的現金消耗問題嗎？

William?

威廉？

Okay.

好的。

Okay.

好的。

Yes.

是的。

(foreign language)

（外語）

[Interpreted] Regarding the question about the competitiveness of ES6 -- sorry, ES8.

【解讀】關於ES6競爭力的問題——對不起，ES8。

Actually, ES6 -- sorry, ES8 is not only targets at the premium electric SUV, it also aims at the segments of all the premium 6- and 7-seater SUVs including EV and also the gasoline cars.

實際上，ES6——對不起，ES8不僅針對高端電動SUV，它還針對包括EV在內的所有高端6座和7座SUV以及汽油車的細分市場。

So our competitors in this segment include Q7 from Audi; GLC from Mercedes-Benz; XC90 from Volvo; and Model X from Tesla.

所以我們在這個細分市場的競爭對手包括奧迪的Q7；奔馳GLC；沃爾沃XC90；和特斯拉的 Model X。

So for the short term, the subsidy reduction may affect our competitiveness a little bit, but we do have other advantages including our high-performance, our user satisfaction, our user network and for our users, they tend to enjoy 10% purchasing tax discount for buying an EV, and we also enjoy the preferential policies for the license plate application and usage in cities like Beijing or Shanghai.

所以在短期內，補貼的減少可能會影響我們的競爭力，但我們確實有其他優勢，包括我們的高性能、我們的用戶滿意度、我們的用戶網絡以及我們的用戶，他們往往會享受 10% 的購置稅折扣購買電動汽車，在北京、上海等城市享受車牌申領和使用優惠政策。

So in the long run, these advantages will help us to offset the impact of the subsidy reduction.

所以從長遠來看，這些優勢將幫助我們抵消補貼減少的影響。

And we believe that the ES8 will still be a very strong and a powerful product in this segment.

我們相信 ES8 仍將是該細分市場中非常強大的產品。

Thank you.

謝謝你。

I think to answer your question about the cash burn.

我想回答你關於燒錢的問題。

I think in Q1, we -- I won't call it burn, we actually have a cash -- net cash outflow over RMB4 billion, but the special note, it will be paid to debt there because in December, we delivered more than 7,000 units, but in Q1, we only delivered like roughly a half of it.

我認為在第一季度，我們 - 我不會稱之為燃燒，我們實際上有現金 - 淨現金流出超過人民幣 40 億元，但特別注意，它將支付那裡的債務，因為在 12 月，我們交付了超過7,000 台，但在第一季度，我們只交付了大約一半。

So there's a huge working capital gap, a lot of payments occur in the months of January and February as well.

因此存在巨大的營運資金缺口，大量付款也發生在 1 月和 2 月。

So working capital is taking a significant portion of it.

因此，營運資金佔據了很大一部分。

And also if you look at our expenses item like R&D, as well as the SG&A that actually take some large portion as well.

而且，如果您查看我們的支出項目，例如研發，以及實際上也佔很大一部分的 SG&A。

So overall, and moving forward, we think that this cash burn rate is going to go down quarter by quarter for a couple of reasons.

因此，總體而言，展望未來，我們認為由於幾個原因，這種現金消耗率將逐季度下降。

Number one is actually with the launch of ES6, we're going to bring more volume into the picture.

第一實際上是隨著 ES6 的發布，我們將帶來更多的影響。

Accordingly, and as a result, working capital is going to help our cash flow.

因此，營運資金將有助於我們的現金流。

Number two, with the launch of our LOP or Lean Operation Program, essentially you can call it the internal organizational optimization program.

第二，隨著我們的 LOP 或精益運營計劃的啟動，您基本上可以將其稱為內部組織優化計劃。

We're going to cut down our costs, cut down unnecessary spending in both the strategic spending, R&D by rebalancing our product portfolio and also balancing our self-network spending versus seek some strategic alliance in the channels, so we can cut down significantly.

我們將削減成本，通過重新平衡我們的產品組合以及平衡我們的自有網絡支出與在渠道中尋求一些戰略聯盟來削減戰略支出和研發方面的不必要支出，因此我們可以大幅削減。

And also in terms of our peoples and the daily operation, we issued a new policy and put the stringent mindset into people's mind.

並且在我們的人民和日常運作方面，我們發布了一項新政策，並將嚴格的心態灌輸到人們的腦海中。

So that make the lean operation concept not only reflected in the number, it will reflect in every minds of our employees.

使精益經營理念不僅僅體現在數字上，更會體現在我們每一位員工的心中。

Dan, it's Louis.

丹，是路易斯。

We expect Q2 cash burn to be a little bit high, but then Q3 and Q4, once ES6 starts delivery, we expect the cash burn to come down relatively quickly.

我們預計第二季度的現金消耗會有點高，但是第三季度和第四季度，一旦 ES6 開始交付，我們預計現金消耗會相對快速地下降。

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

下一個問題來自高盛的方飛。

Can you give us an update on the content and specs of the ES6?

你能給我們介紹一下 ES6 的內容和規格嗎？

Are you still on track to install 811 NCM batteries and also will Level 2.5 be ready upon the launch?

您是否仍在按計劃安裝 811 NCM 電池，2.5 級是否會在發佈時準備就緒？

And also in light of the current environment, do you see opportunities to reduce component prices from suppliers?

另外，鑑於當前的環境，您是否看到了降低供應商零部件價格的機會？

And if so, where do you see most of that, whether it's battery, motor, inverter or others?

如果是這樣，你在哪裡看到大部分，無論是電池、電機、逆變器還是其他？

Thank you, Fei.

謝謝你，飛。

William, do you want to talk about ES6 specs and the current reduction in price possibilities?

William，你想談談 ES6 規格和當前降價的可能性嗎？

Yes.

是的。

(foreign language)

（外語）

[Interpreted] About the 811 NCM battery pack, actually, it is proceeding as our schedule.

【解讀】關於811 NCM電池組，其實是按照我們的計劃進行的。

So it will be available to our users in July.

因此，它將在 7 月提供給我們的用戶。

And actually, in our validation in past, the 811 NCM battery pack showed strong performance, so we are quite confident about it.

事實上，在我們過去的驗證中，811 NCM電池組表現出了強大的性能，所以我們對此非常有信心。

As for our operational partnership with CATL, our battery cell supplier, actually, we have a long-term cost-reduction framework with CATL.

至於我們與我們的電池供應商CATL的運營合作夥伴關係，實際上，我們與CATL有一個長期的成本降低框架。

So we will be witnessing significant cost reduction in terms of the battery pack from the third and the fourth quarter this year.

因此，從今年第三季度和第四季度開始，我們將見證電池組成本的顯著下降。

Based on our volume assumption in this framework, you will witness this cost reduction very soon.

根據我們在此框架中的體積假設，您很快就會看到這種成本降低。

Thank you.

謝謝你。

Dan, it's Louis.

丹，是路易斯。

Sorry, it's Louis, Fei.

抱歉，我是路易斯，菲。

Some other specs just for which you asked about.

您詢問的其他一些規格。

The ES6 is very competitive with the likes of Mercedes EQC, iPace, Model 3 and Model X and Model S from Tesla.

ES6 與梅賽德斯 EQC、iPace、Model 3 以及特斯拉的 Model X 和 Model S 等車型相比極具競爭力。

So it's very fast, 0 to 60 in 4.7 seconds.

所以它非常快，在 4.7 秒內從 0 到 60。

It has longer range, 500-plus kilometers with an 84-kilowatt battery.

它的續航里程更長，使用 84 千瓦電池可行駛 500 多公里。

And so its performance, its communication, its service, everything should be very competitive, if not better, and it's priced below all those models including the Model 3. So we think it's a very price competitive car.

因此，它的性能、通信、服務，一切都應該非常有競爭力，如果不是更好的話，它的價格低於所有這些車型，包括 Model 3。所以我們認為這是一款非常有價格競爭力的汽車。

It looks sporty, it's sharp.

它看起來很運動，很鋒利。

It is full of amenities.

它充滿了便利設施。

Our last question comes from the line of Yin Ling of Deutsche Bank.

我們最後一個問題來自德意志銀行的尹玲。

I've got two quick questions here.

我在這裡有兩個簡單的問題。

My first question is on the future new products.

我的第一個問題是關於未來的新產品。

As Louis has just mentioned, it seems like you'll be launching another model in 2020 before the ET series.

正如 Louis 剛才提到的，您似乎會在 2020 年推出 ET 系列之前的另一款車型。

Just could you please share with us your thoughts behind this decision?

能否請您與我們分享您對這一決定背後的想法？

And also will this be another SUV model?

這也會是另一款 SUV 車型嗎？

And what sort of markets I mean are we targeting at?

我的意思是我們瞄準什麼樣的市場？

And my second question is, as mentioned just now, the demand was negatively impacted by the EV subsidy cuts, so wondering if there's any chance that you will be adding a lower-price trims for the ES6 and ES8 models to drive the demand?

我的第二個問題是，正如剛才提到的，電動汽車補貼削減對需求產生了負面影響，所以想知道你們是否有機會為 ES6 和 ES8 車型添加更低價格的內飾來推動需求？

William, do you want to answer these two?

威廉，你想回答這兩個問題嗎？

Okay.

好的。

(foreign language)

（外語）

[Interpreted] So about the ET7 and also our new product, we launched our ET preview during Shanghai Auto Show this year, and we have received a lot of positive feedback and review about this ET preview.

[解讀]所以關於ET7以及我們的新產品，我們在今年的上海車展期間推出了我們的ET預覽，我們收到了很多關於這個ET預覽的積極反饋和評論。

Actually, earlier this year, we decided that we would like to launch our ET7 on our second-generation platform NP2 because...

事實上，今年早些時候，我們決定在我們的第二代平台 NP2 上推出我們的 ET7，因為......

(foreign language)

（外語）

[Interpreted] Recently, we decided to launch this ET7 on our second-generation platform NP2 because the next several years will be very important for the transformation of ADAS, AD and the smartness technologies.

【解讀】最近，我們決定在我們的第二代平台NP2上推出這款ET7，因為未來幾年對於ADAS、AD和智能技術的轉型非常重要。

So you will be seeing the transformation for the sensors, for the computing units and also for the e-architecture of the vehicle.

因此，您將看到傳感器、計算單元以及車輛電子架構的轉變。

And we want to see this ongoing transformation.

我們希望看到這種持續的轉變。

That's why we decided to put the ET7 on the second-generation platform.

這就是我們決定將 ET7 放在第二代平台上的原因。

So in terms of the launching time of ET7, it is postponed a little bit.

所以在ET7的上線時間上，稍微推遲了一些。

I think this is also the best decision...

我認為這也是最好的決定......

(foreign language)

（外語）

[Interpreted] It is postponed for the next generation.

【解讀】推遲到下一代。

I believe this is a best decision for the company, for our investors as well as our users.

我相信這對公司、我們的投資者和我們的用戶來說都是最好的決定。

But at the same time, we understand that the market is expecting a new product or a new model from NIO.

但與此同時，我們了解到市場對蔚來的新產品或新車型充滿期待。

So earlier this year, we decided that on top of the current generation platform, we would like to leverage our existing technologies to launch a new model next year.

因此，今年早些時候，我們決定在當前這一代平台之上，利用現有技術在明年推出一款新車型。

And -- but at the moment, we may not share sufficient information with you, but understand that NIO can be quite efficient and agile in terms of our product development, so you can expect the launch of this new model next year.

並且 - 但目前，我們可能不會與您分享足夠的信息，但了解到 NIO 在我們的產品開發方面可以非常高效和敏捷，因此您可以期待明年推出這款新車型。

(foreign language)

（外語）

[Interpreted] As for the demand after the subsidy cuts, actually for our ES6 and ES8, we target at the premium SUV segment for both electric cars and also the combustion cars.

[解讀]關於補貼削減後的需求，實際上對於我們的ES6和ES8，我們的目標是電動汽車和內燃機汽車的高端SUV細分市場。

For ES6 and ES8, there are competitors including a lot of premium SUVs from luxury brands.

ES6和ES8的競爭對手包括很多豪華品牌的高端SUV。

And even with this competition, we still believe that we have strong competitiveness.

而且即使有這樣的競爭，我們仍然相信我們有很強的競爭力。

We have the tax discounts with purchasing tax, consumption tax and also duty.

我們有採購稅、消費稅和關稅的稅收優惠。

We also have a strong performance.

我們也有很強的表現。

We have good user services.

我們有良好的用戶服務。

We also have the preferential policies for license plate application and usage.

我們還有車牌申請和使用的優惠政策。

So we believe that may be in the short term, the subsidy costs may affect us a little bit, but in the long run, we do have the strong market performance in this segment.

所以我們認為，可能在短期內，補貼成本可能會影響我們一點點，但從長遠來看，我們在這個領域確實有強勁的市場表現。

And as more and more people start appreciating and adopting EVs, we believe in the long run, ES6 and ES8 will be very powerful.

隨著越來越多的人開始欣賞和採用電動汽車，我們相信從長遠來看，ES6 和 ES8 將非常強大。

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

我們的下一個問題來自瑞銀的Paul Gong。

I have two questions.

我有兩個問題。

The first one is regarding this new subsidiary NIO China.

第一個是關於這個新的子公司蔚來中國。

Since E-Town -- Beijing E-Town has committed RMB 10 billion just for minority interest in this new entity.

自亦莊以來——北京亦莊已承諾出資 100 億元人民幣，僅用於此新實體的少數股東權益。

Does that mean NIO Inc.

這是否意味著 NIO Inc.

is also committed for more than RMB 10 billion investment into this NIO China entity?

是否也承諾對這家蔚來中國實體投資超過100億元人民幣？

If so, this new investment into the NIO China be in the form of cash or in the form of technology or whatever or maybe IP?

如果是這樣，對蔚來中國的這項新投資將以現金或技術或其他形式或知識產權的形式進行？

Can you also add a little bit color on this?

你也可以在上面添加一點顏色嗎？

This is my first question.

這是我的第一個問題。

My second question is I noticed on the balance sheet, there is some item within the equity that got additional paid-in capital.

我的第二個問題是我在資產負債表上註意到，股權中有一些項目獲得了額外的實收資本。

That has declined from RMB 41.9 billion to RMB 40 billion, declined by RMB 1.9 billion during this quarter.

從 419 億元人民幣下降到 400 億元人民幣，本季度減少了 19 億元人民幣。

Can you please give us a little bit color on what was the reason for that?

你能給我們一點顏色，說明這是什麼原因嗎？

William, you want to talk about E-Town, NIO China?

William，你想談談蔚來亦莊？

Okay.

好的。

(foreign language)

（外語）

[Interpreted] Regarding NIO China with E-Town, actually it doesn't mean that we will be investing more than RMB 10 billion into NIO China in exchange for more equity stock.

【解讀】關於蔚來中國和亦莊，其實並不意味著我們要向蔚來中國投資超過100億人民幣來換取更多的股權。

Instead, if you look at our NIO Inc.

相反，如果你看看我們的蔚來公司。

current business, actually most of our business, including our employee, including our sales network and our major business are based in China.

目前的業務，實際上我們的大部分業務，包括我們的員工，包括我們的銷售網絡和我們的主要業務都位於中國。

Over 90% of our employees are based in China.

我們超過 90% 的員工都在中國。

For the existing assets, we already have a very high and good valuation.

對於現有資產，我們已經有了很高的估值。

So this is how we work with this NIO China.

這就是我們與蔚來中國合作的方式。

We will be leveraging this existing asset and the business for the equity fundraising.

我們將利用現有資產和業務進行股權融資。

Thank you.

謝謝你。

So you factor them all briefly to state in the way you give some minority shares to Beijing E-Town and they paid in RMB 10 billion as an investment into -- in this entity.

所以你把他們都簡單地考慮到你給北京亦莊一些少數股權的方式，他們支付了 100 億元人民幣作為對這個實體的投資。

So it's kind of form of for the finance through equity?

那麼這是一種通過股權融資的形式嗎？

Yes, that's correct.

對，那是正確的。

That's actually from E-Town and its affiliate.

這實際上來自亦莊及其附屬公司。

I'm going to address your second question, Paul.

保羅，我要回答你的第二個問題。

Essentially, this reduction on equity portion RMB 1.9 billion reflected strictly related to the convertible bond that we issued back around the end of January, early February.

從本質上講，股權部分減少 19 億元人民幣反映了與我們在 1 月底、2 月初左右發行的可轉換債券嚴格相關。

So in this bond, I can explain a bit more in detail.

所以在這個債券中，我可以更詳細地解釋一下。

There's a two derivative product.

有兩個衍生產品。

One is called prepaid forward, the other one is called additional call option.

一種稱為預付遠期，另一種稱為附加看漲期權。

If you understand fundamental structure -- initial structure of a convertible bond, it's actually a face value plus 30% the price over the stock price at the time of the issuance.

如果你了解基本結構——可轉換債券的初始結構，它實際上是面值加上發行時股價的 30%。

So on top of it, we actually put additional call options, which raised the stock price, the call -- the stock price from 30% to 100%, so that's take roughly USD 80 million.

所以最重要的是，我們實際上增加了額外的看漲期權，這提高了股價，看漲期權——股價從 30% 上升到 100%，所以這大約需要 8000 萬美元。

The other one is the prepaid forward capital.

另一種是預付遠期資本。

Essentially, we used a part of the proceeds from this debt issuance to buy back some of the stock and to sweeten the deal essentially, so make this transaction completely completed.

從本質上講，我們用這次發債的部分收益回購了部分股票，從本質上使交易變甜，從而使這筆交易徹底完成。

So overall, this has actually resulted in the reduction in our equity positions of RMB 1.9 billion as you compare in our balance sheet.

所以總的來說，這實際上導致我們的股權頭寸減少了 19 億元人民幣，正如你在我們的資產負債表中所比較的那樣。

Thank you Paul.

謝謝保羅。

Thank you.

謝謝你。

As there are no further questions, now I'd like to turn the call back over to company for closing remarks.

由於沒有其他問題，現在我想將電話轉回給公司以作結束語。

Thank you, everybody, for joining us today.

謝謝大家今天加入我們。

Thank you.

謝謝你。

And see you next quarter.

下個季度見。

Thank you, everyone.

謝謝大家。

Thank you.

謝謝你。

Thank you.

謝謝你。

This concludes this conference call.

本次電話會議到此結束。

You may now disconnect your line.

您現在可以斷開線路。

Thank you.

謝謝你。