蔚來 (NIO) 2019 Q3 法說會逐字稿

Hello, ladies and gentlemen.

女士們、先生們，大家好。

Thank you for standing by for NIO, Inc.

感謝您對蔚來的支持。

Third Quarter 2019 Earnings Conference Call.

2019 年第三季度收益電話會議。

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

（操作員指示）今天的電話會議正在錄音。

I will now turn the call over to your host, Ms. Jade Wei, Associate Vice President of Investor Relations of the company.

現在我將電話轉交給東道主，公司投資者關係副總裁魏潔女士。

Please go ahead, Jade.

請繼續，傑德。

Thank you, Edison.

謝謝你，愛迪生。

Good evening and good morning, everyone.

大家晚上好，早上好。

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

歡迎參加蔚來汽車 2019 年第三季度業績電話會議。

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

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 Mr. William Li, Founder, Chairman of the Board and Chief Executive Officer; Mr. Wei Feng, Chief Financial Officer; and Mr. Stanley Qu, VP of Finance.

出席今天的電話會議的有創始人、董事會主席兼首席執行官李威廉先生；魏峰先生，首席財務官；以及財務副總裁屈斯坦先生。

Before we continue, please kindly be 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.

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。

Forward-looking statements involve inherent risks and uncertainties.

前瞻性陳述涉及固有風險和不確定性。

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該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.

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 include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial 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。

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

請參閱蔚來的新聞稿，其中包含將未經審計的非 GAAP 衡量標準重新合併為可比較的 GAAP 衡量標準。

With that, I will now turn the call over to our CEO, William.

現在，我將把電話轉給我們的首席執行官威廉。

William, please go ahead.

威廉，請繼續。

(foreign language)

（外語）

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

[解讀]大家好，感謝您今天加入我們的電話會議。

(foreign language)

（外語）

[Interpreted] In the third quarter of 2019, we delivered a total of 4,799 ES8 and ES6 vehicles, increasing 35% from the second quarter and exceeding the top end of our guidance range by 9%.

【解讀】2019年第三季度，我們共交付了4,799輛ES8和ES6汽車，較第二季度增長35%，超出指導範圍上限9%。

We delivered 5,054 vehicles in October, and in November, we estimated that the total delivery of Q4 will reach over 8,000.

10月份我們交付了5,054輛汽車，11月份我們預計第四季度的總交付量將達到8,000輛以上。

(foreign language)

（外語）

[Interpreted] The auto industry is still experiencing substantial softness and the EV sector particularly dropped over 35% year-on-year in sales in the second half of 2019, after the EV subsidies were reduced significantly.

【解讀】汽車行業依然大幅疲軟，尤其是電動汽車行業，在電動汽車補貼大幅退坡後，2019年下半年銷量同比下降超過35%。

Nevertheless, our order backlog growth has accelerated since September, and this strength in order flow continued in the fourth quarter.

儘管如此，自 9 月份以來，我們的訂單積壓增長有所加快，並且訂單流的強勁勢頭在第四季度得到了延續。

The growth has been underpinned by 3 key factors: strong competitiveness of our ES6 and its quality, performance and pricing; strong support from our user community; and our sales network expansion through the efficient NIO Spaces.

這一增長得益於三個關鍵因素：我們的ES6及其質量、性能和定價的強大競爭力；來自我們用戶社區的大力支持；以及通過高效的 NIO Spaces 擴展我們的銷售網絡。

I will discuss these 3 factors separately next.

接下來我將分別討論這三個因素。

(foreign language)

（外語）

[Interpreted] In August, NIO ranked as the highest in new vehicle quality among all brands in J.D. Power's 2019 New Energy Vehicle Experience Index Study.

【解讀】8月，在J.D. Power發布的2019年新能源汽車體驗指數研究中，蔚來汽車在所有品牌中新車品質排名第一。

In December, our ES6 was selected by the most respected industry experts in the Chinese automotive industry to receive the XuanYuan award as car of the year for its achievement in innovation, mobility and industry contribution.

12月，ES6被中國汽車行業最受尊敬的行業專家評選為年度汽車軒轅獎，以表彰其在創新、出行和行業貢獻方面的成就。

This demonstrates the strong recognition of our brand quality and the performance by users and industry.

這體現了用戶和行業對我們品牌品質和業績的高度認可。

(foreign language)

（外語）

[Interpreted] We would not have achieved our strong sales results without the support from our passionate user community.

[解讀]如果沒有熱情的用戶社區的支持，我們不可能取得如此強勁的銷售成績。

Our vision has always been to shape a joyful lifestyle by offering premium smart electric vehicles with the best user experience.

我們的願景始終是通過提供具有最佳用戶體驗的優質智能電動汽車來塑造快樂的生活方式。

Since inception, we have been working diligently to build a vibrant user enterprise.

自成立以來，我們一直努力打造充滿活力的用戶企業。

New user community is thriving and growing.

新用戶社區正在蓬勃發展。

We now have users in 296 cities across China and 45% of new orders in 2019 were referred by existing users.

目前，我們的用戶已遍布全國296個城市，2019年新訂單中有45%是由現有用戶推薦的。

It has become more than just a part of our unique brand identification, but it's emerging as an instrumental part of new development.

它已不僅僅是我們獨特品牌標識的一部分，而且正在成為新發展的重要組成部分。

(foreign language)

（外語）

[Interpreted] Actually, the vibrancy and the support of our user enterprise has been remarkable and reaches far beyond word-of-mouth referrals.

【解讀】實際上，我們用戶企業的活力和支持是非常顯著的，遠遠超出了口碑推薦的範圍。

As an example, in the recent months, acting on their own accord, our users have launched promotional campaigns around China in support of NIO.

例如，最近幾個月，我們的用戶自發地在中國各地發起了支持蔚來的促銷活動。

In 2019, more than 1,300 user volunteers have dedicated their time voluntarily in NIO House, NIO Space, auto show and event to sharing their first-hand experience to make more people understand NIO.

2019年，超過1300名用戶志願者自願在NIO House、NIO Space、車展和活動中奉獻自己的時間，分享他們的第一手經驗，讓更多人了解蔚來。

(foreign language)

（外語）

[Interpreted] In terms of our sales network expansion, by the end of this year, we will open 48 NIO Spaces and the 22 NIO Houses in 52 cities.

【解讀】在銷售網絡拓展方面，到今年年底，我們將在52個城市開設48個NIO Space和22個NIO House。

Through NIO Spaces, we are able to cost effectively and meaningfully increased the number of sales point in the market, which in turn helps drive new orders.

通過NIO Spaces，我們能夠以成本效益和有意義的方式增加市場上的銷售點數量，從而有助於推動新訂單。

This important initiative allows more potential users to see, touch and feel our vehicles and truly enjoy the superior driving experience of ES8 and ES6 offer.

這一重要舉措讓更多潛在用戶看到、觸摸、感受我們的車輛，真正享受ES8和ES6帶來的卓越駕駛體驗。

Most importantly, potential users that can compare first hand the performance and the smart features of our vehicles with those of NIO's competitive models.

最重要的是，潛在用戶可以直接將我們車輛與蔚來競爭車型的性能和智能功能進行比較。

The favorable comparison result often leads to a new purchase.

有利的比較結果通常會導致新的購買。

And this has been a contributing force to the sales gains in recent months.

這也是近幾個月銷售增長的推動力。

We will continue strengthening our sales network through adding more NIO spaces to expand our coverage and improving the efficiency of NIO spaces with more data and experience gained through our operations.

我們將繼續加強我們的銷售網絡，通過增加更多的蔚來車位來擴大我們的覆蓋範圍，並通過我們在運營中獲得的更多數據和經驗來提高蔚來車位的效率。

(foreign language)

（外語）

[Interpreted] On December 28, we held the third NIO day under the same believing better in Shenzhen.

【解讀】12月28日，我們懷著同樣的信念，在深圳舉辦了第三屆蔚來日。

Over 7,300 NIO users and the guests attended, also tens of millions of people participated through 55 parallel sessions or online broadcast.

超過7300名蔚來用戶及嘉賓出席，並通過55場平行會議或在線直播的方式參與了數千萬人次的活動。

NIO users were deeply involved in the planning, directing and execution of NIO day 2019, showing pattern that the rally power that echoed with the NIO's vision to be a user enterprise.

蔚來用戶深度參與2019蔚來日的策劃、指導和執行，呈現出與蔚來用戶企業願景相呼應的集力格局。

(foreign language) battery as a service (foreign language)

（外語）電池即服務（外語）

[Interpreted] During the NIO day, we also announced the 100-kilowatt hour battery pack and the 20-kilowatt DC Power Home.

【解讀】蔚來日期間，我們還發布了100千瓦時的電池組和20千瓦的家用直流電源。

All NIO models can upgrade to 100-kilowatt hour battery pack, which will significantly increase the rent performance of our product line.

蔚來所有車型均可升級至100千瓦時電池組，這將顯著提升我們產品線的租金表現。

Since the launch of the 70-kilowatt hour battery pack in 2018, of the same size of our battery capacity has increased by 40%.

自2018年推出70千瓦時電池組以來，我們同等尺寸的電池容量增加了40%。

NIO makes a continuous investment on power swap technology and owns more than 1,200 patents on the vehicles' battery pack, power swap and cloud.

蔚來對換電技術持續投入，在車輛電池組、換電、雲等方面擁有1200多項專利。

The power swap technology enables users to continuously upgrade the battery and empowers NIO to truly offer battery as a service.

換電技術使用戶能夠不斷升級電池，讓蔚來真正實現電池即服務。

As the time goes on, more and more people will recognize the advantages of a NIO's unique and competitive power swap system.

隨著時間的推移，越來越多的人會認識到蔚來獨特且具有競爭力的換電系統的優勢。

(foreign language)

（外語）

[Interpreted] Additionally, we unveiled NIO's third production model, the EC6, a smart premium electric coupe SUV, which has a very sporty look and feel for young and trendy SUV fans.

【解讀】此外，我們還發布了蔚來第三款量產車型EC6，這是一款智能豪華電動轎跑SUV，它的外觀和感覺非常運動，適合年輕時尚的SUV愛好者。

It goes from 0 to 100 kilometers per hour in just 4.7 seconds and enjoys an NEDC range of up to 615 kilometers.

0-100公里/小時加速僅需4.7秒，NEDC工況續航里程可達615公里。

We have also launched the all-new ES8, it goes up to 188 improvements, 4.9 seconds, 0 to 100-kilometer per hour acceleration and significantly improved the NEDC range to up to 580 kilometers.

我們還推出了全新ES8，提升高達188項，0-100公里/小時加速僅需4.9秒，NEDC續航里程大幅提升至580公里。

We believe the all-new ES8 will have a much stronger competitiveness in the market.

我們相信全新ES8將具有更強的市場競爭力。

(foreign language) NIO Pilot (foreign language) NIO Pilot (foreign language) Level 4 (foreign language)

(外語) NIO Pilot (外語) NIO Pilot (外語) Level 4 (外語)

[Interpreted] NIO Pilot, NIO's advanced driver assistance system becomes full-fledged.

【解讀】NIO Pilot，蔚來高級駕駛輔助系統日臻成熟。

More than 20 features are now available on NIO Pilot, including traffic jam pilot and highway pilot.

NIO Pilot現已提供擁堵領航、高速公路領航等20餘項功能。

It offers a more relaxing and safer driving experience.

它提供了更輕鬆、更安全的駕駛體驗。

To date, about half of our users have activated NIO Pilot.

迄今為止，我們約有一半的用戶已經激活了 NIO Pilot。

On November 4, we announced our strategic cooperation with Mobileye to develop Level 4 Autonomous Driving Vehicles.

11月4日，我們宣布與Mobileye戰略合作開發4級自動駕駛汽車。

Teams from both sides have already started working together to explore the best pathways to leverage our respective of strength to develop the future products together.

雙方團隊已經開始共同努力，探索利用各自優勢共同開發未來產品的最佳途徑。

(foreign language)

（外語）

[Interpreted] I would like to now give you an update on our cost control measures.

[解讀]我現在向大家介紹一下我們的成本控制措施的最新情況。

During the third quarter, we continued to implement comprehensive cost control measures across the organization to improve operational efficiency.

第三季度，我們繼續在整個組織內實施全面的成本控制措施，以提高運營效率。

At the end of December, our global headcount will be less than 7,500.

到 12 月底，我們的全球員工人數將不足 7,500 人。

As a result of our cost reduction measures, our third quarter SG&A decreased 18.1% compared with the second quarter, even as our sales team is now driving and realizing higher levels of sales.

由於我們採取了成本削減措施，儘管我們的銷售團隊正在推動並實現更高的銷售水平，但我們第三季度的 SG&A 較第二季度下降了 18.1%。

Additionally, our R&D expenses decreased to 21.3%.

此外，我們的研發費用下降至21.3%。

Lean operations will continue to be our focus.

精益運營將繼續是我們的重點。

(foreign language) Steven Feng (foreign language) Steven (foreign language)

(外語) 馮紹峰 (外語) 史蒂芬 (外語)

[Interpreted] Final.

[解釋]最終。

Finally, I'd like to warmly welcome Mr. Steven Feng, as our new Chief Financial Officer, effective November 18, 2019.

最後，我熱烈歡迎 Steven Feng 先生擔任我們新任首席財務官，自 2019 年 11 月 18 日起生效。

We look forward to working with Steven and anticipate that he's strong financial and operational experience, impressive track record in equity research and great automotive background will create greater value for the company and our shareholders.

我們期待與史蒂文合作，並預計他豐富的財務和運營經驗、在股票研究方面令人印象深刻的業績記錄以及豐富的汽車背景將為公司和我們的股東創造更大的價值。

(foreign language) Steven (foreign language) Steven, please.

（外語）史蒂文（外語）史蒂文，有請。

[Interpreted] With that, I will now turn the call over to Steven to provide the financial details for the quarter.

[解釋]這樣，我現在將把電話轉給史蒂文，以提供本季度的財務詳細信息。

Stephen, please go ahead.

斯蒂芬，請繼續。

Thank you, William.

謝謝你，威廉。

I will now go over some of our financial results for Q3 2019.

我現在將回顧 2019 年第三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.

為了注意本次電話會議的長度，我將在此討論財務要點，並鼓勵聽眾參考我們發佈在網上的收益新聞稿以了解更多詳細信息。

Our total revenues in Q3 2019 were RMB 1.8 billion, representing an increase of 21.8% from Q2 2019.

2019年第三季度我們的總收入為人民幣18億元，較2019年第二季度增長21.8%。

Our total revenues are made of 2 parts: vehicle sales and other sales.

我們的總收入由兩部分組成：車輛銷售和其他銷售。

Vehicle sales this quarter were RMB 1.7 billion, representing an increase of 22.5% from Q2 2019, the increase in vehicle sales over last quarter but mainly due to the increase in ES6 sales volumes, resulting from the expansion of our sales network as we continued adding NIO Spaces and the increased referral rate by our existing users.

本季度汽車銷量為17億元人民幣，較2019年第二季度增長22.5%，汽車銷量較上季度有所增長，但主要是由於我們不斷增加銷售網絡，擴大了ES6銷量的增長。 NIO Spaces 以及現有用戶推薦率的提高。

Other sales in this quarter were RMB 103.4 million, representing an increase of 9.9% from last quarter.

本季度其他銷售額為人民幣1.034億元，較上季度增長9.9%。

The increase in other sales was mainly attributed to the sales increase in charging piles, which was in line with improvement of vehicle sales.

其他銷售額的增長主要歸因於充電樁銷售額的增長，這與車輛銷量的改善一致。

Cost of sales in this quarter was RMB 2.1 billion, representing an increase of 2.3% from last quarter.

本季度銷售成本為人民幣21億元，較上季度增長2.3%。

The increase in cost of sales was mainly due to the increase in sales and offset but included in Q2 accrued recall costs in relation to the company's boundary recall of 4,803 new vehicles, launched on June 27, 2019.

銷售成本的增加主要是由於銷量的增加和抵消，但包含在第二季度應計召回成本中，該成本與公司於 2019 年 6 月 27 日啟動的 4,803 輛新車邊界召回有關。

Gross margin in this quarter was negative 12.1% compared with negative 33.4% in last quarter.

本季度毛利率為負12.1%，而上季度為負33.4%。

More specifically, vehicle margins in this quarter was negative 6.8% compared with negative 24.1% in last quarter.

更具體地說，本季度汽車利潤率為負 6.8%，而上季度為負 24.1%。

The improved vehicle margins was mainly due to the recall costs in last quarter as mentioned.

車輛利潤率的提高主要是由於如上所述的上季度的召回成本。

R&D expenses in this quarter were RMB 1.0 billion, representing a decrease of 21.3% from last quarter and relatively unchanged compared with Q3 2018.

本季度研發費用為10億元人民幣，環比下降21.3%，與2018年第三季度相比基本持平。

Excluding non-GAAP share-based compensation expenses, R&D expenses were RMB 1.0 billion, representing a decrease of 21.7% from Q2 2019, an increase of 5.9% from Q3 2018.

剔除非美國通用會計準則的股權激勵費用，研發費用為人民幣10億元，較2019年第二季度下降21.7%，較2018年第三季度增長5.9%。

The decrease in R&D expenses over last quarter was primarily attributed to lab-testing expenses incurred, in the third quarter, after ES6 initial launch in June.

研發費用較上季度減少主要歸因於 ES6 6 月份首次推出後第三季度產生的實驗室測試費用。

SG&A expenses in this quarter were RMB 1.2 billion, representing a decrease of 18.1% from Q2 2019, and a decrease of 30.3% from Q3 2019 -- '18.

本季度的 SG&A 費用為人民幣 12 億元，較 2019 年第二季度下降 18.1%，較 2019 年第三季度 - '18 下降 30.3%。

Excluding non-GAAP share-based compensation expenses, SG&A expenses were RMB 1.1 million, representing a decrease of 17.4% from Q2 2019, and a decrease of 15.6% from Q3 2018.

不計非公認會計原則股權激勵費用，SG&A費用為人民幣110萬元，較2019年第二季度下降17.4%，較2018年第三季度下降15.6%。

The decrease in SG&A expenses over last quarter was primarily driven by the company's overall cost-saving measures in marketing and other supporting functions.

上季度銷售、管理及行政費用的下降主要是由於公司在營銷和其他支持職能方面採取的整體成本節約措施。

Loss from operations in this quarter was RMB 2.4 billion, representing a decrease of 25.3% from Q2 2019, and a decrease of 14.3% from Q3 2018.

本季度運營虧損為人民幣24億元，較2019年第二季度下降25.3%，較2018年第三季度下降14.3%。

Excluding share-based compensation expenses, non-GAAP-adjusted loss from operations was RMB 2.3 billion, representing a decrease of 25.4% from Q2 2019, and a decrease of 1.6% from Q3 2018.

剔除股權激勵費用，非公認會計原則調整後的經營虧損為人民幣23億元，較2019年第二季度下降25.4%，較2018年第三季度下降1.6%。

Share-based compensation expenses in this quarter were RMB 70.4 million, representing a decrease of 23.6% from Q2 2019, and a decrease of 83.7% from Q3 2018.

本季度股權激勵費用為人民幣7,040萬元，較2019年第二季度下降23.6%，較2018年第三季度下降83.7%。

The decrease in share-based compensation expenses over last quarter was primarily due to the part of the share-based compensation expenses that are recognized using the accelerated measure.

股權激勵費用較上季度減少主要是由於採用加速措施確認的部分股權激勵費用。

Our net loss was RMB 2.5 million in Q3 2019, representing a decrease of 23.3% from Q2 2019, and a decrease of 10.3% from Q3 2018.

2019年第三季度，我們的淨虧損為人民幣250萬元，較2019年第二季度下降23.3%，較2018年第三季度下降10.3%。

Excluding share-based compensation expenses, adjusted non-GAAP net loss was RMB 2.5 million in Q3 2019, representing a decrease of 23.2% from Q2 2019, an increase of 3.1% from Q3 2018.

剔除股權激勵費用，2019年第三季度調整後的非美國通用會計準則淨虧損為人民幣250萬元，較2019年第二季度下降23.2%，較2018年第三季度增加3.1%。

Net loss attributable to NIO's ordinary shareholders, in Q3 2019, was RMB 2.6 million, representing a decrease of 22.9% from Q2 2019, and a decrease of 73.8% from Q3 2018.

2019年第三季度蔚來普通股股東淨虧損為260萬元人民幣，較2019年第二季度下降22.9%，較2018年第三季度下降73.8%。

Excluding share-based compensation expenses and accretion on redeemable noncontrolling interest to redemption value, adjusted net loss attributable to NIO's ordinary shareholders, on a non-GAAP basis, was RMB 2.5 billion.

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，按非公認會計準則計算，調整後歸屬於蔚來普通股股東的淨虧損為人民幣25億元。

Basic and diluted net loss per ADS in Q3 2019 were both RMB 2.48 or $0.35.

2019 年第三季度每份 ADS 的基本和攤薄淨虧損均為人民幣 2.48 元或 0.35 美元。

Excluding share-based compensation expenses and accretion on redeemable noncontrolling interest to redemption value, non-GAAP-adjusted basic and diluted net loss per ADS were both RMB 2.38 or $0.33.

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，非公認會計準則調整後的每份美國存託股基本和稀釋淨虧損均為人民幣 2.38 元或 0.33 美元。

Our balance of cash and cash equivalents, restrict cash and short-term investment was RMB 2.1 -- RMB 2.0 billion as of September 30, 2019.

截至2019年9月30日，我們的現金及現金等價物、限制性現金和短期投資餘額為人民幣2.1-20億元。

And now for our business outlook.

現在談談我們的業務前景。

As William mentioned, for the fourth quarter of 2019, the company expects deliveries to be over 8,000 vehicles, representing an increase of approximately 67% from Q3 2019.

正如William提到的，該公司預計2019年第四季度的交付量將超過8,000輛，較2019年第三季度增長約67%。

The company also expects fourth quarter total revenues to be approximately RMB 2.8 billion.

該公司還預計第四季度總收入約為28億元人民幣。

This would represent an increase of approximately 53% Q3 2019.

這意味著 2019 年第三季度增長約 53%。

Before we start the Q&A session, we would like to give you an average of our financing projects.

在開始問答環節之前，我們想先向您介紹一下我們融資項目的平均值。

We have made significant positive progress in its financing project.

我們的融資項目取得了重大積極進展。

However, the projects are still ongoing, and we're not at liberty to disclose any confidential information at this point.

然而，這些項目仍在進行中，目前我們無權透露任何機密信息。

Therefore, during today's call, please understand that we will not be able to disclose any specific information or answer any questions regarding the financing projects.

因此，在今天的電話會議中，我們將無法透露任何具體信息或回答有關融資項目的任何問題，請您理解。

We will disclose further information when the projects reach a stage that was subject to a disclosure obligation.

當項目達到需要披露義務的階段時，我們將披露更多信息。

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 is from Bin Wang from 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。

(foreign language) The first question is about CB issuing?

（外文）第一個問題是關於CB的發行？

And what's the progress about CB?

CB的進展如何？

And do net many go through numbers 3 quarter results, or it's not?

淨許多人是否會查看第三季度的業績？

Just go to the number 4 quarter, if it has been completely finished?

直接看第四季吧，已經完結了嗎？

(foreign language) My second question is about sustainability, about SG&A and R&D cost going forward.

（外語）我的第二個問題是關於可持續性，關於未來的SG&A和研發成本。

Thank you.

謝謝。

First, I will start with the CB question.

首先，我從CB問題開始。

As everyone knows, Tencent and William has signed contract with NIO for USD 200 million CB, in third quarter.

眾所周知，騰訊和威廉在第三季度與蔚來汽車簽訂了2億美元CB合同。

Tencent's CB has already been closed so the USD 100 million from Tencent is already in our Q3 report.

騰訊的CB已經關閉，因此來自騰訊的1億美元已經在我們的第三季度報告中。

And also, USD 90.5 million were received from William, the rest, USD 9.5 million are being processed, and the transactions will close soon.

此外，已從William處收到9050萬美元，其餘950萬美元正在處理中，交易即將結束。

Perhaps, as a reminder, the key CB terms, investor could be equipped to find them an announcement on September 5.

也許，作為提醒，投資者可以在 9 月 5 日找到關於關鍵 CB 條款的公告。

Let me move on to the second question, of Wang Bin's question about the sustainability and our cost-controlling efforts.

我接著談第二個問題，即王斌提出的關於可持續發展和我們的成本控制工作的問題。

Yes, you are right.

是的你是對的。

We have done a lot of efforts for cost savings, we are in the process of finalizing our 2020 budget.

我們為節省成本做了很多努力，目前正在敲定 2020 年預算。

We expect the R&D efficiency to significantly improve, and the R&D expenses to be further reduced in 2020.

我們預計2020年研發效率將顯著提升，研發費用將進一步降低。

We will share more information on our Q4 earnings call.

我們將在第四季度財報電話會議上分享更多信息。

(foreign language)

（外語）

[Interpreted] So in terms of the headcount, starting from this year, we have already initiated many operation measures to make sure we can improve the efficiency.

【解讀】所以從人員數量上來說，從今年開始，我們已經啟動了很多操作措施，確保我們能夠提高效率。

We did some layoffs and restructuring of our organization.

我們對組織進行了一些裁員和重組。

At the beginning of this year, we had around 9,900 people, but by the end of this year, we believe we can control the headcount within 7,500.

今年年初，我們有大約9,900人，但到今年年底，我們相信我們可以將人數控制在7,500人以內。

Some of them are now in the legal process, but we believe that by the end of this year, this number should be lower than the 7,500.

其中一些現在正在走法律程序，但我們相信到今年年底，這個數字應該會低於 7,500 家。

We think that this is going to be very beneficial for our P&L for the next year.

我們認為這對我們明年的損益非常有利。

And at the beginning, I have also mentioned the lean operation is our focus, and this will continue to build a focus in the future.

而且一開始我也提到了精益運營是我們的重點，未來也會繼續打造這個重點。

(foreign language)

（外語）

[Interpreted] I think it's not just about the headcount control, it should be more about how we can optimize and improve the overall cost and expenses efficiency.

【解讀】我覺得不僅僅是人員控制，更多的是我們如何優化和提高整體的成本費用效率。

So this can help us to improve further of our overall organization efficiency.

所以這可以幫助我們進一步提高整體組織效率。

Your next question is from Tim Hsiao from Morgan Stanley.

您的下一個問題來自摩根士丹利的 Tim Hsiao。

Thanks for taking time to host a call.

感謝您抽出寶貴時間來接聽電話。

Just a quick question from my side.

我只是簡單地問一個問題。

The first question is about the sales for next year?

第一個問題是明年的銷量？

I know it's the third quarter result, but now you are at the end of 2019.

我知道這是第三季度的結果，但現在已經是 2019 年底了。

So I just want to get your thoughts about the volumes for next year because our ES6 just registered solid sales since early this year because of the competitive spec and successful channel strategy.

因此，我只想了解您對明年銷量的看法，因為我們的 ES6 自今年年初以來，由於具有競爭性的規格和成功的渠道策略，銷量穩定。

But for next year, what will drive the freedom of other upside because I think the competition in the market was getting more intensive.

但明年，什麼會推動自由度的其他上漲，因為我認為市場競爭變得更加激烈。

And in the meantime, I think we're going to launch EC6.

與此同時，我認為我們將推出 EC6。

I think the model electric coupe, in general, will be smaller than that of 4-door SUV, and our ES8, despite the recent upgrade, I think, the market is relatively niche.

我覺得電動轎跑的車型，總體來說會比4門SUV要小一些，而我們的ES8，儘管最近升級了，我覺得這個市場還是比較小眾的。

My second question is about the channel strategy, because you just shared our evolving target for NIO store and NIO space by end of this year.

我的第二個問題是關於渠道策略的，因為您剛剛分享了我們在今年年底前蔚來商店和蔚來空間不斷發展的目標。

So if there is any target for our channels, the expansion for 2020?

那麼2020年我們的渠道擴張有什麼目標嗎？

And what would be more reasonable headcount to support a kind of a sales network?

什麼樣的員工人數來支持某種銷售網絡更合理？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] I would like to take your questions.

[翻譯]我想回答你的問題。

Starting from September, although the market is still quite challenging and soft, but our order backlog for ES8 and ES6 has been ramping up.

從9月份開始，雖然市場仍然充滿挑戰和疲軟，但我們ES8和ES6的訂單積壓量一直在增加。

In the past 2 months, the production orders every day can reach over 100, and this trend has been increasing.

近2個月以來，每天的生產訂單都能達到100個以上，並且這一趨勢還在不斷增加。

If you read the news, you can see that we have already sold all the show cars.

如果您閱讀新聞，您會發現我們已經售出了所有展車。

So we believe this momentum is going to continue in the future.

因此，我們相信這種勢頭未來將持續下去。

(foreign language)

（外語）

[Interpreted] Overall speaking, we believe our product's positioning is quite right, although the market is quite dynamic.

【解讀】總體來說，雖然市場充滿活力，但我們認為我們的產品定位還是比較正確的。

In the past quarters, we have seen some competitive models, for example, Audi e-tron, Mercedes EQC, they have released their price and they started to sell cars in the China markets.

在過去的幾個季度裡，我們看到了一些有競爭力的車型，例如奧迪e-tron、奔馳EQC，他們已經發布了價格，並開始在中國市場銷售汽車。

But after the users compare our products together with their products, normally, they will buy our products because our product is more competitive compared with those models.

但是當用戶將我們的產品與他們的產品進行比較後，通常他們會購買我們的產品，因為我們的產品與他們的產品相比更有競爭力。

Especially in our specific market segment, that is around RMB 300,000 to RMB 400,000, that is the segment for the ES6 and the ES8.

特別是我們特定的細分市場，也就是30萬元到40萬元左右，也就是ES6和ES8的細分市場。

We believe in this midsized premium SUV market, we are quite competitive because we are ranking at the top 10.

我們相信在這個中型豪華SUV市場，我們具有相當的競爭力，因為我們排名前十。

This is including the ICE and EV.

這包括內燃機和電動汽車。

And we believe in the future, the users will think our ES6 and ES8 are the right choices, so they want to buy a car pricing around RMB 300,000 to RMB 400,000 range.

我們相信在未來，用戶會認為我們的ES6和ES8是正確的選擇，因此他們希望購買定價在30萬元至40萬元左右的汽車。

With our power swap technologies and our superior services, we can win the word-of-mouth in the market, and the order situation is actually much better than our expectations.

憑藉我們的換電技術和優質的服務，我們能夠贏得市場口碑，訂單情況實際上比我們的預期要好得多。

We think these great sales result is because of our product competitiveness and our great service.

我們認為這些出色的銷售業績是由於我們的產品競爭力和優質的服務。

This can help us to win the reputation in the market.

這可以幫助我們贏得市場聲譽。

For the next year or so, we are quite confident about ES6.

未來一年左右，我們對ES6還是很有信心的。

For example, in Beijing and Shanghai, if you want to buy a car that is midsized SUV around RMB 300,000 to RMB 400,000 range, our ES6 is already ranked at the top 5. So that is why we are quite confident that this sales momentum is going to continue for the ES6.

比如在北京、上海，如果你想買一輛30萬到40萬左右的中型SUV，我們的ES6已經排在前五了，所以我們對這個銷售勢頭還是很有信心的。 ES6 將繼續。

For the ES8, that is the all-new ES8, we will start the delivery around April next year.

至於ES8，就是全新的ES8，我們會在明年4月份左右開始交付。

The all-new ES8 has significantly improved the range, and we have already boosted up to 188 improvements on the all-new ES8.

全新ES8大幅提升了續航里程，目前我們已經在全新ES8的基礎上提升了多達188項。

So the users' expectations for all-new ES8 is actually quite high.

所以說，用戶對於全新ES8的期待其實還是蠻高的。

That is why we believe the new ES8 will also achieve a very good sales performance.

因此我們相信新款ES8也將取得非常好的銷量表現。

Right now, our current ES8 is also doing very good in the market.

現在我們現在的ES8在市場上也做得非常好。

I think you know that we have already sold all the current ES8 and we have no inventory left.

我想你知道我們已經賣掉了所有當前的 ES8，我們沒有剩餘的庫存。

We believe that starting from next year, the sales of the ES8 will also be very good.

我們相信從明年開始，ES8的銷量也會非常好。

If you look at the specific market segments, for example, Q5 and the GLE, Model X, our performance, intelligence and the smart features as well as our services are more competitive compared with those brands.

如果你看具體的細分市場，比如Q5、GLE、Model X，我們的性能、智能和智能功能以及我們的服務與這些品牌相比更有競爭力。

Right now, we have released our EC6, that is the NIO smart coupe SUV.

現在，我們發布了我們的EC6，也就是蔚來智能轎跑SUV。

The feedback is very good from the markets.

市場反饋非常好。

And right now, I cannot share with you about the specific orders we have received.

目前，我無法與您分享我們收到的具體訂單。

But the overall situation is actually quite good.

但整體情況其實還是不錯的。

We will start the delivery of EC6 in September next year.

我們將於明年9月開始交付EC6。

So the sales of EC6 is not going to significantly impact the overall sales number for the next year.

因此EC6的銷量不會對明年的整體銷量產生重大影響。

Overall speaking, we are quite confident about the ES6, ES8 and the EC6 in their specific market segments, respectively.

總體而言，我們對ES6、ES8和EC6分別在各自的細分市場充滿信心。

(foreign language)

（外語）

[Interpreted] In terms of the sales strategy, we focus on 3 aspects.

【解讀】在銷售策略上，我們重點關注3個方面。

The first one is to continue to improve our product and the service.

第一個是繼續改進我們的產品和服務。

The second one is we would like to make sure our users can be offered brand ambassador, and we can improve the sales number with the user referrals and the word of mouth.

第二個是我們希望確保我們的用戶能夠獲得品牌大使，並且我們可以通過用戶推薦和口碑來提高銷量。

The third one is to continuously expand our sales network.

三是不斷拓展銷售網絡。

(foreign language)

（外語）

[Interpreted] In terms of the sales network, the NIO Space will significantly help with our sales numbers for the future.

【解讀】從銷售網絡來看，NIO Space對於我們未來的銷量會有很大的幫助。

Right now, we have been working with our NIO Space partners to set up the NIO Spaces and improve the coverage of our sales point.

目前，我們正在與NIO Space合作夥伴合作建立NIO Space並擴大我們的銷售點的覆蓋範圍。

The model of the NIO space is quite efficient.

NIO空間的模型是相當高效的。

We believe by the end of next year, we should be able to have around 200 NIO Houses and the NIO Spaces altogether.

我們相信到明年年底，我們應該能夠擁有大約200個蔚來之家和蔚來空間。

Because at the end of this year, we have already got over 70 NIO Houses and the NIO Spaces combined.

因為到今年年底，我們已經擁有超過70個NIO House和NIO Space。

With the increased amount of the NIO Spaces, we can cover the Tier 2 and Tier 3 pieces and those other remote places.

隨著NIO空間數量的增加，我們可以覆蓋第2層和第3層以及其他偏遠的地方。

We have already accumulated many experiences in terms of the NIO Space operations.

我們在NIO Space的運營方面已經積累了很多經驗。

So we think that this is not going to significantly affect our headcount because we will heavily rely on the partners to work together with us, although we will have our own people on-site to support our partners in the NIO Spaces.

因此，我們認為這不會對我們的員工人數產生重大影響，因為我們將嚴重依賴合作夥伴與我們合作，儘管我們將有自己的人員在現場為蔚來空間的合作夥伴提供支持。

Right now, we have users in 296 cities.

目前，我們的用戶遍布296個城市。

With the channel expansions, we believe our sales for the next year is going to be very solid.

隨著渠道的擴張，我們相信明年的銷售將會非常穩健。

Your next question is from Lei Wang from CICC.

你的下一個問題是來自中金公司的王磊。

Steven, William and Jade.

史蒂文、威廉和傑德。

This is Lei speaking from CICC.

我是中金公司的雷先生。

Congratulations on Steven's new role, it's a really nice move.

祝賀史蒂文擔任新角色，這是一個非常好的舉動。

And the vehicle deliveries in the third quarter, that's really new record high.

第三季度的車輛交付量確實創下了歷史新高。

William and Steven have actually answered part of my questions, and I have 2 follow-ups.

威廉和史蒂文實際上已經回答了我的部分問題，我還有兩個後續問題。

The first one would be that Steven just gave the guidance of 2,000 unit deliveries in the fourth quarter, another high quarter-over-quarter increase?

第一個是史蒂文剛剛給出了第四季度交付量 2,000 輛的指導，這又是一個季度環比的高增幅？

And what's the exact factors that are viewed -- that drive the sales up, and are the factors sustainable from the point of view?

推動銷量增長的具體因素是什麼？從角度來看這些因素是否可持續？

And would that be possible that you can release backlog order right now?

你們現在可以釋放積壓訂單嗎？

And the second question will be about the per-store deliveries because William just mentioned we have now around 70 NIO Spaces, right?

第二個問題是關於每家商店的交付量，因為威廉剛剛提到我們現在有大約 70 個蔚來空間，對吧？

And that will be leaning above 40 because it will be sold per store -- per month in the first quarter.

這個數字將超過 40，因為第一季度將按每個商店每月銷售。

Is this consistent?

這是一致的嗎？

Does that mean that for 200 NIO Spaces next year, they'll be able to deliver 8,000 vehicles per month?

這是否意味著明年 200 個 NIO Space 每月將能夠交付 8000 輛汽車？

I will translate my question.

我會翻譯我的問題。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] Thanks for your question.

[解釋]謝謝你的提問。

At the beginning, I have already mentioned starting from the September, the order and the delivery have been witnessing very strong momentum.

一開始我已經提到從9月份開始，訂單和交付的勢頭非常強勁。

This is mainly due to 3 factors.

這主要是由於3個因素。

The first one is the competitiveness of our products and the service.

第一個是我們的產品和服務的競爭力。

The second one is the word of mouth and the user referral.

第二個是口碑和用戶推薦。

The third one is the sales network expansion.

三是銷售網絡拓展。

Among all these 3 factors, the product competitiveness is one of the most important factors.

在這三個因素中，產品競爭力是最重要的因素之一。

As you can see, NIO has already established the premium brands successfully in the mainstream premium market, that is around RMB 300,000 to RMB 500,000 price range.

可以看到，蔚來已經在主流高端市場，也就是30萬元到50萬元的價格區間，成功建立了高端品牌。

And you can see that the premium market players have already launched some products.

你可以看到高端市場參與者已經推出了一些產品。

For example, last year, Jaguar launched their I-PACE.

例如，去年捷豹推出了 I-PACE。

And this year, EQC, e-tron.

還有今年的EQC、e-tron。

But after they released their products, we can see the price is around the RMB 600,000 to RMB 700,000.

但他們推出產品後，我們看到價格在60萬到70萬左右。

After comparing their products together with our products, normally, the users will think our product is more competitive.

用戶將他們的產品與我們的產品進行比較後，通常會認為我們的產品更有競爭力。

That's why they choose NIO products.

這就是他們選擇蔚來產品的原因。

(foreign language)

（外語）

[Interpreted] I think that there is a very important trend we should pay attention to.

【解讀】我認為有一個非常重要的趨勢值得我們關注。

Starting from the second quarter of this year, the EV sales have declined because of the subsidy reduction.

從今年第二季度開始，受補貼退坡影響，電動汽車銷量出現下滑。

This happens to those commercial vehicles and the lower-end EVs.

這種情況發生在商用車和低端電動汽車上。

But for the Tesla and NIO and other brands, focusing on the consumer market, our sales momentum is actually quite good.

但對於特斯拉和蔚來等品牌來說，專注於消費市場，我們的銷售勢頭其實還是不錯的。

We believe that the users are quite educated about EVs and ICEs.

我們相信用戶對電動汽車和內燃機汽車有相當的了解。

And for those users, they prefer EVs.

對於這些用戶來說，他們更喜歡電動汽車。

That is fine.

沒事兒。

We believe that we should have a reasonable share for the mid- and large-sized SUV segments, that is around RMB 300,000 to RMB 400,000 market segments.

我們認為，我們應該在中大型SUV細分市場，即30萬元至40萬元左右的細分市場擁有合理的份額。

That segment should have around 1 million unit volumes in terms of their sales.

該細分市場的銷量應約為 100 萬輛。

And in the last months, I understand that there are many concerns about the NIO's operation.

在過去的幾個月裡，我了解到人們對蔚來的運營存在很多擔憂。

But you can see, NIO is developing in a very healthy way.

但你可以看到，蔚來正在以非常健康的方式發展。

And this is mainly because of our product competitiveness and the word of mouth from our users and the strong execution from our teams.

這主要得益於我們的產品競爭力、用戶的口碑以及團隊強大的執行力。

That is why we are quite confident about our future sales.

這就是為什麼我們對未來的銷售充滿信心。

And we believe we can keep and even increase this momentum in the future.

我們相信，未來我們能夠保持甚至增強這一勢頭。

Next year, in terms of the competition landscape, I don't actually see any very competitive products from BMW, Audi, Mercedes and Tesla.

明年，從競爭格局來看，我實際上沒有看到寶馬、奧迪、奔馳和特斯拉有什麼非常有競爭力的產品。

Right now, people are now getting familiar with the Tesla Model 3 made in China.

現在，人們開始熟悉中國製造的特斯拉 Model 3。

And if you compare the Model 3 with our products, we believe our product is still very competitive.

如果將 Model 3 與我們的產品進行比較，我們相信我們的產品仍然非常有競爭力。

And we don't actually belong to the same segment with the Tesla Model 3.

我們實際上與特斯拉 Model 3 不屬於同一細分市場。

(foreign language)

（外語）

[Interpreted] Just now, you mentioned about the sales per store or the sale for the NIO Space and the NIO Houses.

【解讀】剛才您提到了單店銷售額或者蔚來空間、蔚來House的銷售額。

We think we cannot simply evaluate the effect of the NIO Spaces and NIO Houses by saying how many sales we can achieve in 1 store because I have mentioned that 45% of the NIO orders are actually coming from our existing users.

我們認為不能簡單地用一家店能實現多少銷售額來評價蔚來空間和蔚來之家的效果，因為我剛才提到，蔚來訂單的45%實際上來自我們現有的用戶。

The NIO Spaces should be quite good for our sales improvement, especially for those places without NIO Houses.

蔚來空間對於我們銷量的提升應該是相當有好處的，特別是對於那些沒有蔚來之家的地方。

But we cannot simply evaluate the number of the sales in those NIO Spaces by doing this kind of calculation because for most of the NIO Spaces that we opened in the fourth quarter.

但我們不能簡單地通過這種計算來評估這些蔚來空間的銷售數量，因為對於我們大部分蔚來空間來說，我們都是在第四季度開設的。

So it means that we need to accumulate more data to understand the effectiveness of the NIO Spaces.

所以這意味著我們需要積累更多的數據來了解NIO Spaces的有效性。

In terms of the China market, actually, it is quite big.

就中國市場而言，實際上是相當大的。

So for a lot of users, they may have never seen NIO products or EVs in the past.

所以對於很多用戶來說，他們過去可能從未見過蔚來產品或電動汽車。

So that is why we think NIO Spaces should be quite good for us to promote our products in those places, and people can actually touch and feel our products.

所以我們認為NIO Spaces應該非常適合我們在這些地方推廣我們的產品，人們可以實際觸摸和感受我們的產品。

But after we accumulate more data and experience in terms of the NIO Space operation, we can share more information with you.

但當我們在NIO Space運營方面積累了更多的數據和經驗後，我們可以與大家分享更多的信息。

Your next question is from Fei Fang from Goldman Sachs.

你們的下一個問題來自高盛的方飛。

William, thanks for the opportunity.

威廉，謝謝你給我這個機會。

Your 8,000 volume guidance, how many ES8 do we have for December?

您的 8000 銷量指導，我們 12 月有多少 ES8？

And also moving into 2020, how do we think about the normalized run rate for ES8?

進入 2020 年，我們如何看待 ES8 的標準化運行率？

Second question is on battery price.

第二個問題是關於電池價格。

What's the outlook?

前景如何？

And thirdly, if you can comment on the cash outflow.

第三，您能否對現金流出發表評論？

So is there a quarterly outflow target that the CEO and the CFO is trying to manage the business towards the RMB 2 billion outflow per quarter of RMB 3 billion beyond which you will think harder about cutting more costs?

那麼，首席執行官和首席財務官是否有一個季度流出目標，試圖將業務管理為每季度流出 20 億元人民幣，超過 30 億元人民幣，超出這個目標，您會更加努力地考慮削減更多成本？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] In the Q4, the sales of the ES8 is estimated to be around 1,300, and for ES6, it should be over 6,700.

【解讀】第四季度，ES8銷量預計在1300輛左右，ES6銷量應該在6700輛以上。

For the ES8, compared with the third quarter, the sales in the fourth quarter has been picking up, and we are very happy to see that ES8 is retaining momentum in the market.

對於ES8來說，與第三季度相比，第四季度的銷量一直在回升，我們很高興看到ES8在市場上保持了勢頭。

Starting from April next year, we're going to deliver the all-new ES8.

從明年4月開始，我們將交付全新ES8。

And we believe ES8 is going to be well positioned in the market to win over users.

我們相信 ES8 將在市場上佔據有利地位並贏得用戶。

Thank you for your question.

謝謝你的問題。

Yes, I think a lot of investors have a very close look at our cash flow.

是的，我認為很多投資者都非常密切地關注我們的現金流。

First, of course, we need to take every efforts for cost savings that our base comp work.

首先，當然，我們需要盡一切努力來節省我們的基礎補償的成本。

But if we move on, I would say, for any automaker, the best way to have a good cash flow is to sell more cars.

但如果我們繼續前進，我想說，對於任何汽車製造商來說，擁有良好現金流的最佳方法就是銷售更多汽車。

So although the cash is tight, but thanks to our strong order and delivery momentum, the cash flow from sales is actually very healthy.

所以雖然現金緊張，但得益於我們強勁的訂單和交付動力，銷售現金流實際上是非常健康的。

And this is very fundamental for our business.

這對我們的業務來說非常重要。

And of course, if we look at our balance sheet, we will need additional capital until it reaches positive cash flow.

當然，如果我們查看我們的資產負債表，我們將需要額外的資本，直到達到正現金流。

We were at the market, as I just said, when we closed the financing projects.

正如我剛才所說，當我們關閉融資項目時，我們就在市場上。

In the end, I would say with the gathered support from these ongoing financing projects, product sales trend and cost measures, we believe the company will have sustainable development and operations.

最後，我想說，在這些正在進行的融資項目、產品銷售趨勢和成本措施的支持下，我們相信公司將實現可持續發展和運營。

So in short, first, savings; second, financing; third, very strong sales.

簡而言之，第一，儲蓄；第二，融資；第三，銷售非常強勁。

We have our next question from Paul Gong from UBS.

我們的下一個問題是來自瑞銀 (UBS) 的 Paul Kong。

Thanks for taking my questions.

感謝您回答我的問題。

I have 2 questions.

我有 2 個問題。

The first one is, based on the current price environment, what quarterly delivery level do we expect to have positive gross margin on vehicle sales?

第一個是，根據當前的價格環境，我們預計汽車銷售的季度交付水平為正毛利率是多少？

And then my second question is just to double-check, does the balance sheet by end of September, already reflected Tencent USD 200 million CB in it?

然後我的第二個問題是再檢查一下，截至9月底的資產負債表是否已經反映了騰訊2億美元的CB？

Because I compared the balance sheet of Q2 and Q3.

因為我比較了Q2和Q3的資產負債表。

I didn't see really an significant increase of noncurrent liabilities or long-term borrowings, but the cash levels still decline.

我並沒有看到非流動負債或長期借款真正顯著增加，但現金水平仍在下降。

I just want to double-check at the end of September balance sheet already reflected the issuance of the USD 200 million CB.

我只想仔細檢查一下 9 月底的資產負債表，該資產負債表已經反映了 2 億美元可轉換債券的發行情況。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] Thanks for your question.

[解釋]謝謝你的提問。

In terms of the gross margin, this has always been our important task for 2020.

從毛利率來看，這一直是我們2020年的重要任務。

We need to consider this from 3 aspects.

我們需要從3個方面來考慮。

The first one is, that was on the pricing.

第一個是關於定價。

The second one is about the bond cost reduction, especially the battery cost.

第二個是關於債券成本的降低，特別是電池成本。

And the next one is about our product portfolio.

下一篇是關於我們的產品組合。

By focusing on those 3 aspects, we can take some measures to improve the gross margin.

通過關注這三個方面，我們可以採取一些措施來提高毛利率。

We think for the next year, we should be able to achieve positive gross margin for the whole year.

我們認為明年，我們應該能夠實現全年正的毛利率。

But if you ask about a specific quarter or the specific amount, we're not really sure at this moment because we need to consider this comprehensively, regarding the sales and the battery cost reduction, the bond cost reduction and the efficiency improvement.

但如果你問具體的季度或具體金額，我們目前還不確定，因為我們需要綜合考慮，包括銷售和電池成本的降低、債券成本的降低和效率的提高。

(foreign language)

（外語）

(foreign language) In terms of the USD 100 million CB from Tencent.

（外文）以騰訊1億美元CB計算。

If you review our announcement on September 5., actually, it has 2 tranches.

如果您查看我們 9 月 5 日的公告，實際上，它有兩部分。

First, USD 100 million for 360 days.

首先，1億美元，為期360天。

So it's a short term borrowing.

所以這是短期借款。

So we booked USD 50 million in our short-term borrowings.

所以我們登記了5000萬美元的短期借款。

And also, the other USD 50 million is of 3 years CB.

另外，另外5000萬美元是3年CB。

So we booked that USD 50 million in our long-term borrowings.

因此，我們將這 5000 萬美元計入長期借款。

Thank you.

謝謝。

We don't have any other questions as of the moment.

目前我們沒有任何其他問題。

Presenters, please continue.

請各位主講人繼續。

Okay.

好的。

So I thank you, everyone, for attending our conference call this quarter, and we look forward to seeing you and hearing from you next quarter.

因此，我感謝大家參加本季度的電話會議，我們期待下季度見到您並收到您的來信。

And Happy New Year.

新年快樂。

Happy New Year,

新年快樂，

Happy New Year, everyone.

祝大家新年快樂。

Ladies and gentlemen, that does conclude our call for today.

女士們先生們，我們今天的呼籲到此結束。

Thank you for participating.

感謝您的參與。

You may all disconnect.

你們都可以斷開連接。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[本文字記錄中標記為[已翻譯]的部分是由現場通話中的口譯員朗讀的。]