蔚來 (NIO) 2022 Q1 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for NIO Incorporated's first quarter 2022 earnings conference call. At this time, all participants are in listen-only mode. Today's conference call is being recorded.

你好，女士們，先生們。感謝您參與 NIO Incorporated 2022 年第一季度財報電話會議。此時，所有參與者都處於只聽模式。今天的電話會議正在錄音中。

I will now turn the call over to your host, Ms. Eve Tang from Capital Markets. Please go ahead, Eve.

我現在將把電話轉給您的主持人，資本市場的 Eve Tang 女士。請繼續，夏娃。

Good morning and good evening, everyone. Welcome to NIO's first quarter 2022 earnings conference call. The Company's financial and operating results were published in the press release earlier today and are posted at the Company's IR website.

大家早上好晚上好。歡迎來到蔚來汽車 2022 年第一季度財報電話會議。公司的財務和經營業績於今天早些時候發佈在新聞稿中，並發佈在公司的投資者關係網站上。

On today's call, we have Mr. William Li, Founder, Chairman of the Board, and the Chief Executive Officer, Mr. Steven Feng, Chief Financial Officer, Mr. Stanley Qu, Senior Vice President of Finance, and Ms. Jade Wei, Vice President of Capital Markets.

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李偉文先生，首席財務官 Steven Feng 先生，財務高級副總裁 Stanley Qu 先生和 Jade Wei 女士，資本市場副總裁。

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

在我們繼續之前，請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款作出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。因此，本公司的實際結果可能與今天所表達的觀點存在重大差異。有關風險和不確定性的進一步信息包含在公司最近向美國證券交易委員會和香港聯合交易所有限公司提交的文件中。除適用法律要求外，本公司不承擔更新任何前瞻性陳述的任何義務。

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

另請注意，蔚來汽車的收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務信息以及未經審計的非 GAAP 財務信息的討論。請參閱蔚來汽車的新聞稿，其中包含未經審計的非公認會計原則措施與可比公認會計原則措施的對賬。

With that, I will now turn the call over to our CEO, Mr. William Li. William, please go ahead.

有了這個，我現在將把電話轉給我們的首席執行官 William Li 先生。威廉，請繼續。

(Interpreted) Hello, everyone. Thank you for joining NIO's first quarter 2022 earnings conference call.

（翻譯）大家好。感謝您參加蔚來汽車 2022 年第一季度財報電話會議。

In the first quarter of 2022, we delivered 25,768 premium smart electric vehicles, another record quarter with a growth 37.6% year over year.

2022 年第一季度，我們交付了 25,768 輛高端智能電動汽車，又一個創紀錄的季度，同比增長 37.6%。

Since the second half of March the new wave of coronavirus outbreak in certain regions in China has impacted our vehicle production and delivery. In April and May, we delivered 5074 and 7024 vehicles, respectively. Starting from June, while the supply chain and vehicle production have basically returned to normal, our vehicle deliveries have also gotten back on track in Shanghai and several other important markets.

自 3 月下半月以來，中國部分地區爆發的新一波冠狀病毒疫情影響了我們的汽車生產和交付。 4 月和 5 月，我們分別交付了 5074 輛和 7024 輛汽車。從6月份開始，在供應鍊和車輛生產基本恢復正常的同時，我們在上海等幾個重要市場的車輛交付也恢復了正常。

We will continue to work closely with our supply chain partners to further improve the overall supply chain production capacity and accelerate vehicle delivery. We expect that the total delivery in the second quarter of 2022 to be between 23,000 to 25,000 units.

我們將繼續與供應鏈合作夥伴密切合作，進一步提升整體供應鏈產能，加快車輛交付。我們預計 2022 年第二季度的總交付量將在 23,000 至 25,000 台之間。

Despite the outbreak, our products have continued to witness a robust demand. Our order intake stays strong, especially for ET7, and reached a new high in May. We believe the launch of new products will drive continuous order growth. In the meantime, government at all levels in China have also introduced positive policies to encourage vehicle consumption and purchase of electric vehicles. This will further promote the up trading and new purchase of premium smart electric vehicles.

儘管爆發了疫情，但我們的產品繼續見證了強勁的需求。我們的訂單量保持強勁，尤其是 ET7，並在 5 月份創下新高。我們相信新產品的推出將推動訂單的持續增長。與此同時，中國各級政府也出台了積極的政策，鼓勵汽車消費和購買電動汽車。這將進一步促進高端智能電動汽車的上行交易和新購買。

Going forward, we will further increase the overall supply chain production capacity, and we're confident of ramping up of deliveries at a much faster pace in the second half of this year.

展望未來，我們將進一步提升整體供應鏈產能，我們有信心在今年下半年以更快的速度提升交付量。

In terms of vehicle gross margins, the whole industry is faced with the rising cost of batteries, raw materials and chips, which has also affected our vehicle margin. In the first quarter, our vehicle margin stood at 18.1%. As the battery cost continued to surge, and [tick] in April, the vehicle margin in the second quarter will be under even higher pressure.

整車毛利率方面，整個行業面臨電池、原材料和芯片成本上漲，這也影響了我們的整車毛利率。第一季度，我們的汽車利潤率為 18.1%。隨著電池成本持續飆升，4月[tick]，二季度整車利潤率將面臨更大壓力。

To mitigate the impact of the rising material costs, we have taken a series of countermeasures, such as adjusting product prices. With the deliveries of new products, higher revenue per vehicle and increasing production output, we expect the vehicle margin to start bouncing back from the third quarter.

為緩解材料成本上漲的影響，我們採取了一系列應對措施，例如調整產品價格。隨著新產品的交付、每輛車收入的增加和產量的增加，我們預計汽車利潤率將從第三季度開始反彈。

On 20 May 2022, NIO was listed on the main board of the Singapore Exchange, which marks another important milestone of NIO. With that, we have further enhanced our footing in the global capital market, which lets us better connect with the investors and to serve the investors from around the world. It is also of great [significance] for our global business development.

2022年5月20日，蔚來在新加坡交易所主板上市，標誌著蔚來的又一重要里程碑。藉此，我們進一步加強了在全球資本市場的立足點，讓我們更好地與投資者聯繫，為來自世界各地的投資者服務。這對我們的全球業務發展也具有重大意義。

In addition, according to the announcement made by the Hang Seng Index Company Limited, NIO will be included in the Hang Seng Tech Index, and the Hang Seng Composite Index, starting from 13 June.

此外，根據恆生指數有限公司的公告，蔚來汽車將於6月13日起被納入恆生科技指數和恆生綜合指數。

Next, I would like to share with you some updates on our recent operations and R&D.

接下來，我想和大家分享一下我們近期運營和研發的一些最新情況。

Research and development of the new products and core technologies has been one of NIO's long-term strategic focuses. We have been making positive progresses on various related fronts.

新產品和核心技術的研發一直是蔚來的長期戰略重點之一。我們在各個相關領域都取得了積極進展。

On 28 March we started to deliver ET7, whose extraordinary handling and riding experience has been well recognized by the users and the media. Since the delivery of ET7, we have made fast iterations, and released more smart features via voter updates, on a continuous basis.

3月28日，我們開始交付ET7，其非凡的操控和騎行體驗得到了用戶和媒體的高度認可。自 ET7 交付以來，我們進行了快速迭代，並通過選民更新不斷發布更多智能功能。

We have introduced over 200 new features on the NT2.0 platform, with the next generation voice interaction and emotion engine technologies now means the interactive experience is comprehensively upgraded. The driver assistance system, powered by NIO's full stack in-house algorithm, has achieved outstanding performance in external reviews and the [build tech].

我們在NT2.0平台上引入了200多項新功能，下一代語音交互和情感引擎技術，意味著交互體驗全面升級。由蔚來全棧自研算法驅動的駕駛輔助系統，在外部評測和【構建技術】中均取得了優異的表現。

In the third quarter we will release NOP Plus, based on the HD Map co-developed with our partner, enabled by the powerful software and hardware platform, full stack in-house algorithm, and end-to-end approach to data collection and operations capabilities.

第三季度，我們將發布 NOP Plus，基於與合作夥伴共同開發的高精地圖，由強大的軟硬件平台、全棧內部算法以及端到端的數據收集和運營方法支持能力。

NT2.0 is capable of fast iteration and upgrades, laying a solid foundation for releasing [NADX] services in more scenarios and providing the autonomous driving experience beyond expectations.

NT2.0具備快速迭代升級的能力，為在更多場景下發布【NADX】服務，提供超越預期的自動駕駛體驗奠定了堅實的基礎。

On April 29, the first ET5 tooling trial build drove off the production line in F2 at NeoPark. The team is working the final stage of mass production of ET5, and the delivery is expected to start this September.

4 月 29 日，第一個 ET5 工具試制在 NeoPark 的 F2 生產線下線。該團隊正在進行ET5量產的最後階段，預計將於今年9月開始交付。

This month we will unveil ES7, a brand new large five-seater SUV based on the NT 2.0 and will start the delivery in late August.

本月，我們將推出基於 NT 2.0 的全新大型五座 SUV ES7，並將於 8 月下旬開始交付。

We will continue to step up our investment in battery-related fields. As of now, we have over 400 employees working on battery-related technologies, including battery material, cell and pack designs, battery management systems, and manufacturing processes. We aim to build an enhanced [of our] comprehensive battery R&D and industrialization capabilities to improve the competitiveness and the profitability of our product in the long run.

我們將繼續加大在電池相關領域的投入。截至目前，我們有 400 多名員工從事電池相關技術工作，包括電池材料、電池和電池組設計、電池管理系統和製造工藝。我們的目標是建立增強的綜合電池研發和產業化能力，以提高我們產品的長期競爭力和盈利能力。

With regards to production, F1 has fully resumed its capacity to the level before the recent outbreak. In addition, we will further ramp up the production output on a gradual basis to support the mass production of the new product.

在生產方面，F1已全面恢復到近期爆發前的水平。此外，我們將進一步逐步提高產量，以支持新產品的量產。

NEO-F2 and NeoPark has completed the production line installation and tooling and has entered into the production validation phase. It will be put into operation from the third quarter this year. It only took 12 months from kicking off construction to rolling off of the first tooling trial build in F2, which is a record construction speed in the industry.

NEO-F2和NeoPark已經完成生產線安裝和工裝，進入生產驗證階段。將於今年第三季度開始投入使用。 F2從開工建設到首個工裝試制下線，僅用了12個月，創下了業內創紀錄的建設速度。

In terms of the sales and service network, we now have 381 new houses and new spaces in 152 cities, as well as 247 new service centers and delivery centers in 149 cities worldwide.

在銷售和服務網絡方面，我們現在在全球152個城市擁有381個新房和新空間，在全球149個城市擁有247個新的服務中心和配送中心。

With regards to charging and swapping network, we've installed over 960 battery swapping stations in 197 cities. So far, we have 829 supercharging stations and 1140 destination chargers.

在充換電網絡方面，我們已在 197 個城市安裝了 960 多個換電站。迄今為止，我們擁有829個超級充電站和1140個目的地充電樁。

The continued deployment of our sales, service and power network will bring long-term benefits to our brand awareness, user satisfaction rate and the sales growth.

我們的銷售、服務和電力網絡的持續部署將為我們的品牌知名度、用戶滿意度和銷售增長帶來長期利益。

With respect to the global market, while further expanding of our sales and service network and improving the user satisfaction in Norway, our team has been accelerating preparations to launch our products and services in Germany, the Netherlands, Sweden, and Denmark.

面向全球市場，在進一步拓展我們的銷售服務網絡，提升挪威用戶滿意度的同時，我們的團隊也在加快準備在德國、荷蘭、瑞典、丹麥推出我們的產品和服務。

In terms of our mass market brand, our product development and production preparation are in steady progress. On May 10, NIO signed a strategic cooperation agreement with Hefei on the second phase of a vehicle production plant and the facility [inaudible] key component at NIO Park. The agreement marks the start of the planning and preparation of the production capacity of the new brand.

在大眾市場品牌方面，我們的產品開發和生產準備工作穩步推進。 5 月 10 日，蔚來與合肥簽署了關於蔚來汽車生產工廠二期和設施 [聽不清] 關鍵部件的戰略合作協議。該協議標誌著新品牌產能規劃和準備工作的開始。

NIO originates from a vision filled with blue sky. We are fully committed to making continuous investment in environmental protection and social welfare and contributing to global sustainable development.

蔚來源於充滿藍天的願景。我們完全致力於在環境保護和社會福利方面持續投入，為全球可持續發展做出貢獻。

Since we announced Clean Parks, a global ecosystem co-construction initiated last December, NIO has been actively cooperating with several organizations to roll out various projects to support national parks and natural reserves. On April 22, NIO reached a strategic cooperation with the Worldwide Fund for Nature who has joined hands with us in establishing a clean and low-carbon energy circulation system in national parks and natural reserves in China and beyond.

自去年 12 月我們宣布啟動全球生態系統共建 Clean Parks 以來，蔚來一直在積極與多個組織合作，推出各種項目來支持國家公園和自然保護區。 4月22日，蔚來與世界自然基金會達成戰略合作，攜手我們在中國及世界範圍內的國家公園和自然保護區建立清潔低碳的能源循環體系。

Although we went through many challenges in the first half of 2022, 2022 is still a critical year for NIO to make committed investments and efforts in new products, core technologies, global market entry, and the mass market brand. In the second half of this year, we will accelerate our new product delivery and the capacity expansion. We are confident of and look forward to realizing satisfying 2results in 2022.

儘管2022年上半年我們經歷了很多挑戰，但2022年仍然是蔚來在新產品、核心技術、全球市場進入、大眾市場品牌等方面投入和發力的關鍵一年。今年下半年，我們將加快新產品交付和產能擴張。我們有信心並期待在2022年取得令人滿意的2個成果。

As always, thank you for your support. With that, I will now turn the call over to Steven to provide the financial details for the quarter. Steven, please go ahead.

一如既往，感謝您的支持。有了這個，我現在將把電話轉給史蒂文，提供本季度的財務細節。史蒂文，請繼續。

Thank you, William. I will now go over our key financial results for the first quarter of 2022. To be mindful of the length of this call, I will refer to R&D only in my discussion today. I encourage listeners to refer to our [earlier] press release, which is posted online, for additional detail.

謝謝你，威廉。現在，我將回顧一下我們 2022 年第一季度的主要財務業績。為了注意這次電話會議的長度，我將在今天的討論中僅提及研發。我鼓勵聽眾參考我們在網上發布的 [早期] 新聞稿以獲取更多詳細信息。

Our total revenue in first quarter was RMB9.9 million, representing an increase of 24.2% year over year and remaining stable quarter over quarter. Our total revenues are made of two parts: vehicle sales and other sales. Vehicle sales in the first quarter were RMB9.2 billion, representing an increase of 24.8% year over year and remained relatively stable quarter over quarter. Increase in vehicle sales year over year was mainly attributed to higher delivery.

一季度總收入為人民幣990萬元，同比增長24.2%，環比保持穩定。我們的總收入由兩部分組成：汽車銷售和其他銷售。一季度汽車銷量為人民幣92億元，同比增長24.8%，環比保持相對穩定。汽車銷量同比增長主要是由於交付量增加。

Other sales in the first quarter were RMB0.7 million, representing an increase of 15.6% year over year and remained relatively stable quarter over quarter. The increase in other sales year over year was mainly attributed to the increased sales of service and energy packages and others in line with the incremental vehicle sales in the first quarter of 2022, which was partially offset by the decrease of revenues from battery upgrade services.

一季度其他銷售額為人民幣70萬元，同比增長15.6%，環比保持相對穩定。其他銷售額同比增長主要是由於2022年第一季度汽車銷量增加，服務和能源包等的銷售額增加，部分被電池升級服務收入的減少所抵消。

Gross margin in the first quarter was 14.6% compared with 19.5% in the first quarter of 2021 and 17.2% in the fourth quarter of 2021. The decrease of gross margin year over year was mainly attributed to the decrease on vehicle margin and reduction in other sales margin resulting from expanded investment in power and service network. The decrease of gross margin quarter over quarter was mainly attributed to the decrease of vehicle margin.

一季度毛利率為14.6%，而2021年一季度為19.5%，2021年四季度毛利率為17.2%。擴大對電力和服務網絡的投資帶來的銷售利潤。毛利率環比下降主要是由於車輛毛利率下降所致。

More specifically, vehicle margin in the first quarter was 18.1% compared with 21.2% in the first quarter of 2021 and 20.9% in the fourth quarter of 2021. The decrease of vehicle margin year over year was mainly driven by the lower average selling price due to changes in our product mix. The decrease of vehicle margin quarter over quarter was mainly attributed to the increased battery cost per unit.

更具體地說，第一季度車輛利潤率為 18.1%，而 2021 年第一季度為 21.2%，2021 年第四季度為 20.9%。車輛利潤率同比下降主要是由於平均售價下降所致我們產品組合的變化。車輛利潤率環比下降主要是由於單位電池成本增加所致。

R&D expenses in the first quarter were RMB1.76 million, representing an increase of 156.6% year over year and remained stable quarter over quarter. The increase of R&D expenses year over year was mainly attributed to the increased personnel cost in research and development functions, as well as the incremental design and development cost for new products and technology.

一季度研發費用為人民幣176萬元，同比增長156.6%，環比保持穩定。研發費用同比增加的主要原因是研發職能人員成本增加，以及新產品和技術的增量設計開發成本。

SG&A expenses in the first quarter were RMB2.01 million, representing an increase of 68.3% year over year and a decrease of 14.6% quarter over quarter. The increase in SG&A expenses year over year was primarily due to the increase in personnel costs in sales and service functions and the costs related to the sales and service network expansion.

一季度SG&A費用為人民幣201萬元，同比增長68.3%，環比下降14.6%。 SG&A費用同比增加主要是由於銷售和服務職能的人員成本增加以及與銷售和服務網絡擴張相關的成本。

The decrease in SG&A expenses quarter over quarter was mainly attributed to the decrease of marketing and promotion expenses, especially the marketing and promotion expenses occurred from the hosting of NIO Day in December 2021, as well as decrease of professional services expenses.

SG&A費用環比下降主要是由於營銷推廣費用減少，尤其是2021年12月NIO Day舉辦後的營銷推廣費用，以及專業服務費用的減少。

Loss from operations in the first quarter was RMB2.19 million, representing an increase of 639.7% year over year and a decrease of 10.5% quarter over quarter. Net loss in the first quarter was RMB1.78 million, representing an increase of 295.3% year over year and a decrease of 16.8% quarter over quarter.

一季度經營虧損為人民幣219萬元，同比增長639.7%，環比下降10.5%。一季度淨虧損178萬元，同比增加295.3%，環比減少16.8%。

Net loss attributable to NIO's ordinary shareholders in the first quarter was RMB1.83 million, representing a decrease of 62.6% year over year and a decrease of 16.3% quarter over quarter.

一季度歸屬於蔚來普通股股東的淨虧損為人民幣183萬元，同比下降62.6%，環比下降16.3%。

Our balance of cash and cash equivalents, restricted cash and short-term investment was RMB53.3 million as of March 31, 2022.

截至 2022 年 3 月 31 日，我們的現金及現金等價物、受限現金和短期投資餘額為人民幣 5,330 萬元。

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

現在，我們準備好的評論到此結束。我現在將把電話轉給接線員，以方便我們的問答環節。

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Please limit to two questions at a time. If you have more questions, please request to rejoin. Our first question comes from the line of Jeff Chung from Citi. Please ask your question.

謝謝你。女士們，先生們，我們現在開始問答環節。請一次限制兩個問題。如果您有更多問題，請申請重新加入。我們的第一個問題來自花旗銀行的 Jeff Chung。請提出你的問題。

(Spoken in Chinese). So, I have two questions. One is the second quarter GP margin outlook. It looked like the high margin products as a percentage of sales in second quarter reach about 37% versus 17% in the first quarter. I think this one of the positives that may potentially lift up the GP margin trend. Secondly, there has been some MSRP hike recently and we would like to know how much of the sales volume from the second quarter has been price hikes versus the first quarter. Obviously, this the first question.

（用中文講）。所以，我有兩個問題。一是二季度毛利率展望。看起來高利潤產品在第二季度佔銷售額的百分比達到約 37%，而第一季度為 17%。我認為這是可能提升 GP 利潤率趨勢的積極因素之一。其次，最近出現了一些建議零售價上漲，我們想知道第二季度的銷量與第一季度相比有多少是價格上漲。顯然，這是第一個問題。

The second question is that our new model cycle suggests that our current aging products, three products is going to turn into six new products into the next 6 or 12 months. So, my question is whether the third quarter production capacity can reach above 48,000 units since by referring to Tesla we saw a strong week-on-week and month-on-month recovery from the past weeks. My understanding is that a lot of our suppliers overlap with Tesla, so if Tesla recover fast, would that mean that we are going to enjoy the similar pace into June and the third quarter? Thank you. Xie xie.

第二個問題是，我們的新車型週期表明，我們目前老化的產品，三個產品將在未來 6 或 12 個月內變成六個新產品。所以，我的問題是第三季度的產能能否達到 48,000 輛以上，因為參考特斯拉，我們看到過去幾週的周環比和環比強勁復甦。我的理解是，我們的很多供應商都與特斯拉重疊，所以如果特斯拉快速復蘇，是否意味著我們將在 6 月和第三季度享受類似的步伐？謝謝你。謝謝。

(Interpreted) Thank you for your question, Jeff. Starting from April, we actually updated our agreement with our battery supplier CATL and by now, our battery cost is connected with the raw material indexes. Basically, it means that in the second quarter, we can see the battery cost is going to significantly increase compared with that of the first quarter and this is going to affect our vehicle gross margin performance. But there is going to be some latency. The battery price increase in the prior month is going to be reflected in the battery cost of the later months, and this is going to be incorporated into our vehicle gross margin performance.

（翻譯）謝謝你的問題，傑夫。從 4 月開始，我們實際上更新了與電池供應商寧德時代的協議，到現在，我們的電池成本與原材料指標掛鉤。基本上，這意味著在第二季度，我們可以看到電池成本將比第一季度顯著增加，這將影響我們的汽車毛利率表現。但是會有一些延遲。前一個月的電池價格上漲將反映在後幾個月的電池成本中，這將被納入我們的汽車毛利率表現中。

According to the current forecast and the market trend, we can see that the battery cost is going down a little bit starting from May, and we have also taken some measures, for example, increasing our product prices. This is going to help us improve our performance in the third quarter. Right now, we are still delivering vehicles without the price adjustment, and we expect to start to deliver the vehicles with the price adjustment starting from the third quarter because our business model is made to order, or order to delivery.

根據目前的預測和市場趨勢，我們可以看到電池成本從5月份開始有一點下降，我們也採取了一些措施，比如提高我們的產品價格。這將幫助我們改善第三季度的業績。目前，我們仍在交付未調整價格的車輛，我們預計從第三季度開始交付調整價格的車輛，因為我們的業務模式是按訂單或按訂單交付。

Just now, we have also mentioned that our products with higher gross margins is also going to kick in, in terms of the performance of the vehicle gross margin, just as the ET7 that is launched in the second quarter, and we expect the production of the ET7 is going to gradually ramp up starting from June, and then starting from the third quarter, is going to maintain at a normal level.

剛才我們也提到，我們毛利率較高的產品也將開始發揮作用，從整車毛利率的表現來看，就像二季度推出的ET7一樣，我們預計產量ET7將從6月開始逐步升溫，然後從第三季度開始，將保持在正常水平。

Overall speaking, we believe the other vehicle gross margin is going to face higher pressure in the second quarter. This is mainly due to the battery cost impact. The vehicle gross margin of the second quarter is going to be lower compared with that of the first quarter, but with the price adjustment, we expect we are going to start to deliver the vehicles with higher prices starting from the third quarter, which is going to contribute to our vehicle gross margin.

總體而言，我們認為其他車型的毛利率將在第二季度面臨更高的壓力。這主要是由於電池成本的影響。二季度汽車毛利率將低於一季度，但隨著價格調整，我們預計從三季度開始我們將開始交付價格較高的車輛。為我們的汽車毛利率做出貢獻。

With the production capacity expansion in Half 1, we expect that this is going to start improving our production output starting from June. Of course, it will need some time to gradually ramp up the production, but we believe the vehicle production is not going to be a bottleneck, and the demand is not an issue for us. The main challenge that we are facing right now is the supply chain, especially in terms of the chipsets and also the production capacity of our suppliers. We are very confident of our delivery performance, starting from the third quarter. Thank you, Jeff.

隨著上半年產能的擴大，我們預計這將從 6 月開始提高我們的產量。當然，逐步提高產量還需要一些時間，但我們相信汽車產量不會成為瓶頸，需求對我們來說不是問題。我們現在面臨的主要挑戰是供應鏈，特別是在芯片組和供應商的生產能力方面。從第三季度開始，我們對我們的交付表現非常有信心。謝謝你，傑夫。

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

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

(Spoken in Chinese). Let me translate my questions. The first question is about orders. Could you please provide further details (inaudible). The orders of ET7 dominate the current order intake, while the demand for [in carbon] SUV are falling more [meaningful] and are we going to have [a slip in] our current SUV margin in [unclear]. And you mentioned the back-order book, does that include orders of ET5?

（用中文講）。讓我翻譯我的問題。第一個問題是關於訂單的。您能否提供更多詳細信息（聽不清）。 ET7 的訂單主導了當前的訂單量，而對 [in carbon] SUV 的需求正在下降 [有意義]，我們是否會在 [unclear] 中 [a slip in] 我們目前的 SUV 利潤率。你提到了延期交貨書，這包括 ET5 的訂單嗎？

My second question is about inventories. In the presentation, I think William mentioned NIO now has more than 400 really good battery-related technology, covering cell, pack, DMS and more. Will NIO consider developing more in battery production, or (inaudible) battery OEM vendors' help to produce the battery based on NIO's own patents and the technology? Those are my two questions, thank you.

我的第二個問題是關於庫存的。在演講中，我想威廉提到蔚來現在有超過 400 項非常好的電池相關技術，涵蓋 cell、pack、DMS 等等。 NIO 是否會考慮在電池生產方面進行更多開發，或者（聽不清）電池 OEM 供應商幫助生產基於 NIO 自己的專利和技術的電池？這是我的兩個問題，謝謝。

(Interpreted) Thank you, Tim, for your question. Regarding your first question for orders, basically in May, our order growth is quite significant, and this actually includes the order intake for the existing ES8, ES6 and EC6. Our order intake performance of the existing ES8, ES6 and EC6 is quite steady, and we have witnessed certain growth.

（翻譯）謝謝你，蒂姆，你的問題。關於你第一個關於訂單的問題，基本上在5月份，我們的訂單增長是相當可觀的，這實際上包括現有ES8、ES6和EC6的訂單量。我們現有的 ES8、ES6 和 EC6 的接單表現相當穩定，我們見證了一定的增長。

You have also mentioned whether we are planning for some upgrade of our existing models. We are planning for incorporating some smart hardware and some new software features for the upgraded version of the existing models.

您還提到我們是否計劃對現有模型進行一些升級。我們計劃在現有車型的升級版中加入一些智能硬件和一些新的軟件功能。

After we launched the ET5 at last year's NIO Day, we have witnessed steady growth of the order intake. Recently, because of the auto shows and exhibitions, we have witnessed a very positive order performance of the ET5.

去年蔚來日推出ET5後，訂單量穩步增長。近期，因為車展和展會，我們見證了ET5非常積極的訂單表現。

Just now, for the 400 - this is actually about the R&D team focusing on the battery technology. We have over 400 employees. For this, we plan to leverage our R&D capabilities in terms of the battery to launch an 800-volt high-voltage battery pack, which will also support the battery swapping technologies in 2024. We understand that this is going to bring many innovative technologies and revolutionary solutions. We believe that this unified pack concept is going to redefine the battery technologies, in terms of the battery cost and the battery safety.

剛才，對於400——這其實是研發團隊專注於電池技術。我們有400多名員工。為此，我們計劃利用我們在電池方面的研發能力推出800伏高壓電池組，這也將支持2024年的電池更換技術。我們知道這將帶來許多創新技術和革命性的解決方案。我們相信，這種統一的電池組概念將在電池成本和電池安全方面重新定義電池技術。

Our plan right now is to start the production of these new next-generation battery packs in the second half of 2024. Our long-term battery strategy is going to be a combination of in-house production and also outsourcing. We believe this long-term strategy is going to benefit the overall competitiveness and the vehicle gross margin as well as the profitability of NIO's products. This is also going to be (inaudible). Thank you, Tim.

我們目前的計劃是在 2024 年下半年開始生產這些新的下一代電池組。我們的長期電池戰略將是內部生產和外包的結合。我們認為，這一長期戰略將有利於蔚來汽車的整體競爭力和整車毛利率以及產品的盈利能力。這也將是（聽不清）。謝謝你，蒂姆。

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

謝謝你。我們的下一個問題來自瑞士信貸的王斌。請提出你的問題。

(Spoken in Chinese). I actually want to quantify the margin, because you actually said our second quarter will be a low margin. Can you say what's the level [inaudible] in margin, because you actually raise the price for current products by around RMB10,000 (inaudible) in the gross profit margin, a gross profit of RMB10,000.

（用中文講）。我實際上想量化利潤率，因為您實際上說我們第二季度的利潤率會很低。您能說一下毛利率水平[聽不清]，因為您實際上將當前產品的價格提高了大約 10,000 元人民幣（聽不清）的毛利率，毛利潤為 10,000 元人民幣。

You also mentioned that in the third quarter, we're back to normal. What's the back to normal that you're referring to? Are you referring to the 18% gross margin in the first quarter, or the last peak level of 21%? Meanwhile, I suppose you will further increase the price for the upcoming battery semiconductor (inaudible) product. Is there going to be another increase in the cost margin? Thank you.

您還提到，在第三季度，我們恢復了正常。你說的恢復正常是指什麼？你是指第一季度18%的毛利率，還是21%的最後峰值水平？同時，我想你會進一步提高即將推出的電池半導體（聽不清）產品的價格。成本邊際是否會再次增加？謝謝你。

(Interpreted) Thank you, Bin, for your question. Regarding the price increase for our products, I previously have also explained that this is going to be reflected in our vehicle gross margin in the third quarter, because right now, we are still delivering vehicles without the adjusted price. For the second quarter, the battery cost is higher than that of the first quarter, but the impact of this is still uncertain. Specifically, we believe it is going to be higher than the RMB10,000 you have just mentioned, but we believe that there are still many uncertainties that we need to wait out a little bit, because just like I mentioned, right now, the battery cost of our products is actually based on the raw material trend and the index.

（翻譯）謝謝你，Bin，你的問題。關於我們產品的漲價，我之前也解釋過，這將反映在我們第三季度的汽車毛利率上，因為現在我們還在交付車輛，沒有調整價格。二季度電池成本高於一季度，但影響尚不確定。具體來說，我們認為會高於你剛才提到的10000元，但是我們認為還有很多不確定性，我們需要稍等一下，因為就像我提到的，現在，電池我們產品的成本實際上是基於原材料趨勢和指數。

It means that for third quarter, we will probably see some trend of the raw material cost going down a little bit, and with our vehicle gross margin improvement, based on the NIO technology platform 2.0, the vehicle gross margin in the third quarter, we believe it's going to bounce back. But there are still many uncertainties, because the battery cost is very difficult to forecast and to determine at this moment. Thank you, Bin.

這意味著第三季度我們可能會看到原材料成本有一些下降的趨勢，並且隨著我們車輛毛利率的提高，基於蔚來技術平台2.0，第三季度的車輛毛利率，我們相信它會反彈。但仍有很多不確定性，因為目前電池成本很難預測和確定。謝謝你，斌。

Thank you. The next question comes from the line of Ming-Hsun Lee from Bank of America. Please go ahead.

謝謝你。下一個問題來自美國銀行的 Ming-Hsun Lee。請繼續。

(Spoken in Chinese). My first question, could you also give us some guidance regarding your potential product pipeline for 2023? Especially for the [ES6], will you consider to launch the new generation by next year.

（用中文講）。我的第一個問題，您能否就 2023 年的潛在產品線給我們一些指導？尤其是【ES6】，你會考慮明年推出新一代嗎？

Second question is regarding your services [other] business. First, revenue slightly declined QoQ. Is it because of the COVID impact? Secondly, the gross margin of this business is also not very good for the quarter. Is this because of the lower utilization when you build a new battery swap station. What do we expect the margin improvement for this business?

第二個問題是關於您的服務 [其他] 業務。首先，收入環比略有下降。是因為COVID的影響嗎？其次，本季度該業務的毛利率也不是很好。這是因為在您建造新的電池交換站時利用率較低。我們預計該業務的利潤率會提高多少？

(Interpreted) Thank you, Ming, for your question. Of course, for the existing models, including the ES8, ES6 and the EC6 our plan is to upgrade all those models to the NT2 platform in the next year.

（翻譯）謝謝你，明，你的問題。當然，對於現有的機型，包括 ES8、ES6 和 EC6，我們計劃在明年將所有這些機型升級到 NT2 平台。

Hi Ming, this is Stanley. The other operating loss mainly because the increase in depreciation and also operating expenses relate to our Power Swap stations. In this year we will continue to build the battery charger and swapping network which can bring the unique experience to our users and can benefit the further improvement of our user satisfaction and also brand image.

嗨，明，我是斯坦利。其他經營虧損主要是因為折舊和經營費用的增加與我們的換電站有關。今年我們將繼續打造充換電網絡，為用戶帶來獨特體驗，進一步提升用戶滿意度和品牌形象。

So from a short term, I think the other loss will increase along with the expansion of the network. From the long run, as numbers of the delivery and also users grow, we will make our charging service, charging and swapping services more efficient. The losses arising from the charging and swapping service will gradually narrow down. Our innovative business models including NIO Life and also ADaaS can also bring extra gross profit and booked in this account. Thanks, Ming.

所以從短期來看，我認為其他損失會隨著網絡的擴大而增加。從長遠來看，隨著交付數量和用戶數量的增長，我們將提高我們的充電服務、充電和交換服務的效率。充換業務造成的損失將逐步收窄。我們創新的商業模式，包括蔚來人壽和 ADaaS 也可以帶來額外的毛利，並記入該賬戶。謝謝，明。

Thank you and next question comes from Nick Lai from JP Morgan. Please ask the question.

謝謝，下一個問題來自摩根大通的 Nick Lai。請提出問題。

(Spoken in Chinese) Let me explain very quickly my two questions. First is related to supply chain. Can you give an update on chip supply condition in June as well as second half as well as the pricing is with especially the supplier? Has this impact [had] reflect the cost increase in the first half and will battery cost continue to rise in the second half? Are we going raise our price again in second half as well?

（用中文發言） 讓我很快解釋一下我的兩個問題。首先是與供應鏈有關。能否介紹一下 6 月份和下半年的芯片供應情況以及價格，尤其是供應商？這種影響是否反映了上半年的成本上漲，下半年電池成本是否會繼續上漲？下半年我們還會再漲價嗎？

Secondly a quick update on mass market brand strategy, thank you.

其次，快速更新大眾市場品牌戰略，謝謝。

(Interpreted) Yes, thank you for question. There are many uncertainties in terms of the chip supply because in our vehicle we probably have over 1000 chips and the chip shortage situation for those 1000 chips may vary from time to time. This totally depends on the upstream suppliers of the tier 1 suppliers of NIO.

（翻譯）是的，謝謝你的提問。芯片供應方面存在很多不確定性，因為在我們的車輛中我們可能有超過1000個芯片，而這1000個芯片的芯片短缺情況可能會不時發生變化。這完全取決於蔚來一級供應商的上游供應商。

Many of the chip shortage is actually caused by the basic chipsets used by those tier 1 suppliers or the upstream suppliers of those tier 1 suppliers. For example, the - like a TI and Infineon they provide various kind of chips to OEMs and it is very difficult to actually identify specific risky chips that we are going to face a shortage.

許多芯片短缺實際上是由那些一級供應商或這些一級供應商的上游供應商使用的基本芯片組造成的。例如，像 TI 和英飛凌一樣，它們向 OEM 提供各種芯片，並且很難真正確定我們將面臨短缺的特定風險芯片。

That is why we do have a chip list. Normally it includes probably around 1 to 20 different kind of chips, and this list may change month to month. Of course, we will try to mitigate all of the risks with different kind of measures.

這就是為什麼我們確實有一個芯片列表。通常它可能包括大約 1 到 20 種不同類型的芯片，並且這個列表可能會每月更改。當然，我們將嘗試通過不同類型的措施來減輕所有風險。

Previously our plan is to expand our production capacity starting from the second half of this year. So that's why starting from last year we have already started to work closely with other suppliers to make sure we can secure sufficient supplies for our product. We have some risks in terms of the chip supply but we believe this is actually manageable and is under control.

此前我們的計劃是從今年下半年開始擴大產能。這就是為什麼從去年開始，我們已經開始與其他供應商密切合作，以確保我們能夠為我們的產品確保足夠的供應。我們在芯片供應方面存在一些風險，但我們認為這實際上是可控的並且在可控範圍內。

For the production capacity in the month of June, this is actually not specifically related to the chip shortage or other supply chain risks. This is just a part of the normal ramp up process for the production capacity expansion.

對於6月份的產能，這實際上與芯片短缺或其他供應鏈風險無關。這只是產能擴張正常提升過程的一部分。

Regarding the second question of the battery. Starting from April, our battery cost is linked together with the raw materials of the batteries in the market. We can see the raw material cost actually peaked in April and we started to see some trend of going down, specifically for the lithium carbonate. In China we have already started to see there are more resources in for the lithium and there are some companies that are trying to mine the lithium to make sure they can supply to the market and meet the demand.

關於電池的第二個問題。從4月份開始，我們的電池成本與市場上電池的原材料掛鉤。我們可以看到原材料成本實際上在 4 月份達到頂峰，並且我們開始看到一些下降的趨勢，特別是對於碳酸鋰。在中國，我們已經開始看到有更多的鋰資源，並且有一些公司正在嘗試開採鋰，以確保它們能夠供應市場並滿足需求。

So I believe that the general consensus of the industry is it already peaked in April. So it's going to gradually go down. But of course, people have different forecasts in terms of what is going to be the final cost of those raw materials. Some people may think that the lithium carbonate is going to go down to around probably [$30,000] per ton. This means that we are going to reduce the cost of the lithium carbonate by 20% to 30% and we also have a similar forecast for the nickel material as well. So we believe the general trend is the cost of those battery materials is going down and is not going to go up again.

所以我相信業界普遍的共識是4月份已經見頂。所以它會逐漸下降。但當然，人們對這些原材料的最終成本有不同的預測。有些人可能認為碳酸鋰的價格會下降到每噸大約 [30,000 美元]。這意味著我們將把碳酸鋰的成本降低 20% 到 30%，我們對鎳材料也有類似的預測。所以我們認為總的趨勢是這些電池材料的成本正在下降，並且不會再次上漲。

The next question is about the mass market brand. Our plan is to start the delivery of the product, of the mass market brand starting from the second half of 2024. This product is going to be based on the new NIO Technology Platform 3.0. We believe the mainstream products of the mass market brand is going to be at the price range from RMB200,000 to RMB300,000.

下一個問題是關於大眾市場品牌。我們的計劃是從 2024 年下半年開始交付大眾市場品牌的產品。該產品將基於新的 NIO 技術平台 3.0。我們認為大眾市場品牌的主流產品價格將在 20 萬元至 30 萬元之間。

Of course, the mass market brand product will also support battery swapping and we are going to use our in-house to develop and manufacture the batteries for the mass market brand product.

當然，大眾市場品牌產品也將支持電池更換，我們將使用我們的內部開發和製造大眾市場品牌產品的電池。

Of course, this (inaudible) is also going to support higher voltage technologies and we believe with all those advanced technologies and competitive pricing, those products under the mass market brand are going to be very competitive. Thank you.

當然，這（聽不清）也將支持更高電壓的技術，我們相信憑藉所有這些先進技術和有競爭力的價格，大眾市場品牌下的產品將非常具有競爭力。謝謝你。

Thank you. Our next question comes from Paul Gong from UBS. Please ask your question.

謝謝你。我們的下一個問題來自瑞銀的 Paul Gong。請提出你的問題。

(Spoken in Chinese). Let me translate my questions. The first question is related to ES7. Why from unveiling launch until delivery it seems to be a lot faster than the previous ET7 or ET5 and how do you think about the cannibalization versus ES8, ES6 and EC6 given they are all SUVs of similar size?

（用中文講）。讓我翻譯我的問題。第一個問題與 ES7 有關。為什麼從發佈到交付它似乎比之前的 ET7 或 ET5 快很多？鑑於它們都是相似尺寸的 SUV，您如何看待與 ES8、ES6 和 EC6 的蠶食？

My second question is regarding the supply chain preparation for the NT2.0 Platform. Currently it seems that the ET7 production remains to be relatively slow in terms of ramp up and with pretty long waiting periods. [Unclear] we're going to have ET5 with larger volume and ES7 in the pipeline, have we done enough work to ensure the key component supply to enable the ramp up of the overall NT2.0 platform model? Thank you.

我的第二個問題是關於 NT2.0 平台的供應鏈準備。目前看來，ET7的生產在加速和等待時間方面仍然相對緩慢。 [不清楚] 我們將有更大體積的 ET5 和 ES7 在管道中，我們是否已經做了足夠的工作來確保關鍵組件的供應，以實現整個 NT2.0 平台模型的加速？謝謝你。

(Interpreted) Thank you, Paul, for your questions. Regarding the first question, we have always been working on the development of new products and we have been working on the development of the ES7 for some time and the launch time of the ES7 is actually already planned, when we were developing the product.

（翻譯）謝謝你，保羅，你的問題。關於第一個問題，我們一直在做新產品的開發，我們一直在做 ES7 的開發，實際上我們在開發產品的時候就已經計劃好了 ES7 的發佈時間。

It may seem that right now it's very close to the delivery of the ES7 but previously our plan is to launch the ES7 earlier. Due to the impact of COVID-19, we delayed a little bit. That is why it seems that it is much closer to the actual delivery of the ES7. But everything is actually going forward according to our plan.

看起來現在它非常接近 ES7 的交付，但之前我們的計劃是更早地推出 ES7。由於 COVID-19 的影響，我們推遲了一點。這就是為什麼它看起來更接近 ES7 的實際交付。但實際上一切都在按照我們的計劃進行。

ES7 is going to be based on the NIO Technology Platform 2.0, which is going to be offering higher and smarter technologies compared with the current NT1 Technology Platform and the current ES8, ES6 and EC6 are actually based on the NT1 Technology Platforms. There will also be some price differences. The price positioning of the ES7 is going to be between that of the ES8 and ES6.

ES7 將基於 NIO 技術平台 2.0，與當前的 NT1 技術平台相比，它將提供更高、更智能的技術，而當前的 ES8、ES6 和 EC6 實際上是基於 NT1 技術平台的。也會有一些價格差異。 ES7 的價格定位將介於 ES8 和 ES6 之間。

We believe there is not going to be cannibalization between the ES7 and the existing models because we have different positionings and pricing strategies for those products. For example, the ES8 is mainly focusing on the six-seater and seven-seater market and the ES7 is positioned as a large five-seater SUV, which has higher pricing compared with that of the ES6.

我們相信 ES7 和現有模型之間不會互相蠶食，因為我們對這些產品有不同的定位和定價策略。比如ES8主打六七座市場，ES7定位為大型五座SUV，定價比ES6高。

For the second question, of course we have already actually started at a very early stage to plan for the production ramp up of products based on the NT2.0 platforms. We have already done this for some time. Of course, there are going to be some risks but because we have planned ahead, we believe it's still manageable.

對於第二個問題，當然我們其實很早就開始規劃基於NT2.0平台的產品的量產。我們已經這樣做了一段時間。當然，會有一些風險，但因為我們已經提前計劃，我們相信它仍然是可控的。

Thank you, Paul.

謝謝你，保羅。

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

謝謝你。我們的下一個問題來自匯豐銀行的丁玉倩。請繼續。

(Spoken in Chinese). So I've got two questions. The first is to ask about whether our price hike in May is enough to cover the cost headwind from the battery side, aluminum body and also the chips alignment in the channel and what's the management thought about the actual cost and also the pricing strategy coming forward.

（用中文講）。所以我有兩個問題。首先是問我們5月份的漲價是否足以彌補電池方面、鋁製機身以及渠道中芯片對齊的成本逆風，管理層對實際成本和未來的定價策略有何看法.

The second question is to ask about ET5 volumes and the margin conviction. We know there's a bit of (inaudible) splash on the entry luxury, which currently ET7 has been located within the segment and also previously we have designed 20% above margin, but back in a time we haven't considered -- we might not consider the cost headwind coming from the commodity side might persist longer.

第二個問題是詢問 ET5 的交易量和保證金信念。我們知道入門級奢侈品有一點（聽不清）飛濺，目前 ET7 已位於該細分市場中，並且之前我們設計的利潤率超過了 20%，但在我們沒有考慮過的時候——我們可能不會考慮到來自商品方面的成本逆風可能會持續更長時間。

(Spoken in Chinese)

（用中文講）

Hi Yuqian, this is Stanley. For the cost increase (inaudible) I think William has given us a lot of guidance. Regarding the price increase of other material and also chip costs, I think we have absorbed through close cooperation with our partners and also internal efficiency improvements. Also, as William introduced, the whole market for the key raw materials are quite dynamic. At this moment we cannot give the precise estimation of the following months or quarters, the trend. So for the second question, William.

嗨，雨倩，我是斯坦利。對於成本增加（聽不清），我認為威廉給了我們很多指導。關於其他材料的價格上漲以及芯片成本，我認為我們已經通過與合作夥伴的密切合作以及內部效率的提高來吸收。此外，正如威廉介紹的那樣，關鍵原材料的整個市場非常活躍。目前我們無法準確估計未來幾個月或幾個季度的趨勢。所以對於第二個問題，威廉。

(Interpreted) For the ET5 because we have already accumulated a significant amount of reservation orders, so if we consider the production of the ET5 with the leads for year the production of ET5 will only be sufficient to meet the backlog for the ET5 orders. So this price increase of the ET5 is not going to have any impact of our vehicle gross margin performance this year.

（翻譯）對於ET5，因為我們已經積累了大量的預訂訂單，所以如果我們考慮到ET5的生產有一年的線索，ET5的生產將僅足以滿足ET5訂單的積壓。因此，ET5 的價格上漲不會對我們今年的汽車毛利率表現產生任何影響。

Right, thank you. Our next question comes from Vijay Rakesh from Mizuho. Please ask your questions.

好的，謝謝。我們的下一個問題來自瑞穗的 Vijay Rakesh。請提出您的問題。

Yes, hi, I have a quick two questions. On your in-house capacity with Hefei, you have talked about 240,000 annual capacity. Do you think you will get to that 20,000 a month run-rate by end of Q3 of this year, Q3 '22?

是的，嗨，我有兩個問題。關於你在合肥的內部產能，你談到了240,000的年產能。你認為到今年第三季度末，即 22 年第三季度，你會達到每月 20,000 的運行速度嗎？

The second question is on the NIO Park. That obviously has an incremental additional 300,000 per year capacity. You talked about ramp -- starting that in Q3. Can you walk through how that ramp should look? Will it be like 10,000 a month exiting this year and then gradually increase next year? That's it. Thank you very much.

第二個問題是關於 NIO Park。這顯然增加了每年 300,000 的產能。你談到了斜坡——從第三季度開始。你能走過那個坡道應該是什麼樣子嗎？會不會像今年一個月一萬個退出，明年再逐漸增加？而已。非常感謝。

(Spoken in Chinese).

（用中文講）。

Okay, so, Vijay, let's answer your question for the prime capacity of our first plant with JV NIO, as we have mentioned, we will continue to ramp up its production capacity in Q3. I think probably -- I think in the second half of the year our overall production capacity should reach 20,000 units per month. It can be -- it's now probably too early for us to say when.

好的，Vijay，讓我們回答您關於我們與合資 NIO 的第一家工廠的主要產能的問題，正如我們所提到的，我們將在第三季度繼續提高其產能。我想可能——我認為下半年我們的整體產能應該達到每月 20,000 台。可能——現在我們說什麼時候可能還為時過早。

Then for the F2 ramp up pace, actually first we will kick off the delivery of ET5 from this plant in Q3. So it will kick off production in Q3 and we try to reach 10,000 units within quite a short period, probably three or four months. I think that's our plan. But, of course, next year as we introduce more models into this factory, the overall production volume of F2 will continue to rise.

然後對於 F2 的加速步伐，實際上我們首先將在第三季度從該工廠開始交付 ET5。所以它將在第三季度開始生產，我們試圖在很短的時間內達到 10,000 台，可能是三四個月。我認為這是我們的計劃。但是，當然，明年隨著我們向這家工廠引入更多車型，F2的整體產量將繼續上升。

All right, thank you. Our next question comes from [Xue Deng] from CICC. Please ask your question.

好噠。謝謝你們。我們的下一個問題來自中金公司的[鄧學]。請提出你的問題。

(Spoken in Chinese) My first question is about it was reported in May that we have relevant recruitment information in the United States, so can you share more details about it? How do you see the breakthroughs in overseas market? Which potential market we think has more potential for us to deployment and what are the difficulties?

（中文發言）我的第一個問題是，5月份有報導稱我們在美國有相關的招聘信息，能否分享更多細節？您如何看待海外市場的突破？我們認為哪個潛在市場對我們來說更有發展潛力，有哪些困難？

My second question is about NAD. Can you share now details about the current testing progress? (Inaudible), thank you.

我的第二個問題是關於 NAD。您現在可以分享有關當前測試進度的詳細信息嗎？ （聽不清），謝謝。

(Spoken in Chinese).

（用中文講）。

Okay, [Deng Xue], thank you for your question. So first with regard to the US market, the short answer is we will definitely enter the US market and actually we've started a comprehensive study of the US market and have a dedicated team in charge of this plan for the market. We will tap into the US market in this manner but now it's still in the study phase, so we will share more information when it's appropriate.

好的，【鄧學】，謝謝你的提問。所以首先關於美國市場，簡短的回答是我們一定會進入美國市場，實際上我們已經開始對美國市場進行全面研究，並有專門的團隊負責這個市場的計劃。我們將以這種方式進入美國市場，但現在仍處於研究階段，因此我們將在適當的時候分享更多信息。

Also, then for the difficulties or difference in the laws in European markets. First, actually there's a lot of commonalities between China and the European market, from the business model to the aspirations for green smart EV products. The Norwegian users also enjoy the concept of smart EV and even the price. But we do need to name some differences, of course, first the culture and also the cost structure. So in Europe surely the labor cost will be higher and also we need to be -- accumulate enough understanding of the local culture and get integrated into the local community.

此外，還有歐洲市場法律的困難或差異。首先，實際上中國和歐洲市場有很多共同點，從商業模式到對綠色智能電動汽車產品的渴望。挪威用戶也很喜歡智能電動汽車的概念，甚至價格。但我們確實需要指出一些差異，當然，首先是文化，還有成本結構。所以在歐洲，勞動力成本肯定會更高，我們也需要——積累對當地文化的足夠了解，融入當地社區。

William, back to you.

威廉，回到你身邊。

(Interpreted) For the second question regarding NAD, the current ADAS functions and features based on the NIO Technology Platform 2.0 is actually derived from the full stack technologies developed in-house by our own AD team. We have comprehensive full stack capabilities starting from sensing, algorithm and control strategy. Starting from the delivery of the ET7, March 28th we have witnessed the data closed loop management and production, which has helped us to achieve very fast iteration and up rates of the vehicle autonomous driving or ADAS experiences based on the NT2.0.

（解讀）第二個關於NAD的問題，目前基於蔚來技術平台2.0的ADAS功能和特性，其實是由我們自己的AD團隊內部開發的全棧技術衍生而來的。我們擁有從傳感、算法和控制策略開始的全面的全棧能力。從3月28日ET7交付開始，我們就見證了數據閉環管理和生產，幫助我們實現了基於NT2.0的車輛自動駕駛或ADAS體驗的極快迭代和提升率。

So for us we have witnessed many improvements in the last two months, because we can collect our data and we can actually see all those data, we can see that the performance of the NT2.0 is actually several times better than that of the NT1.0, because after we collect all those data, we can use the data to train our algorithm and over ADAS and AD technologies. So I have also just mentioned that we are going to release the NOP+. We are very confident of the performance of the NOP+. This NOP+ is going to be based on the high-definition map developed by ourselves, together with Tencent, and this is going to be an in-house high-definition map.

所以對我們來說，在過去的兩個月裡我們見證了很多改進，因為我們可以收集我們的數據，我們可以看到所有這些數據，我們可以看到 NT2.0 的性能實際上比 NT1 好幾倍.0，因為在我們收集了所有這些數據之後，我們可以使用這些數據來訓練我們的算法以及 ADAS 和 AD 技術。所以我也剛剛提到我們將發布 NOP+。我們對 NOP+ 的表現非常有信心。這個NOP+是基於我們自己和騰訊一起開發的高清地圖，這是一個內部的高清地圖。

We are going to integrate all those different technologies, including the high-definition map, with over AD and ADAS closed-loop data management. So we are going to use the same kind of technology stack to improve our autonomous driving and ADAS features. That is why we're very confident with the [NAD] performance in the long run, based on our sensing capabilities, the closed-loop data management and also the fast iterations and the systematic capabilities.

我們將整合所有這些不同的技術，包括高清地圖，以及 AD 和 ADAS 閉環數據管理。因此，我們將使用相同類型的技術堆棧來改進我們的自動駕駛和 ADAS 功能。這就是為什麼我們對長期的 [NAD] 性能非常有信心，基於我們的傳感能力、閉環數據管理以及快速迭代和系統能力。

Thank you.

謝謝你。

Thank you very much for all your questions. We have reached the end of the question-and-answer session. I'll now turn the call back to the management team for closing remarks.

非常感謝您提出的所有問題。我們已經到了問答環節的尾聲。我現在將電話轉回給管理團隊以結束髮言。

Thank you once again for joining us today. If you have further questions, please feel free to contact of any of the investor relations team through the contact information provided on our website. This concludes the conference call. You may now disconnect your lines. Thank you.

再次感謝您今天加入我們。如果您還有其他問題，請隨時通過我們網站上提供的聯繫信息與任何投資者關係團隊聯繫。電話會議到此結束。您現在可以斷開線路。謝謝你。

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

謝謝你。女士們先生們，今天的會議到此結束。感謝您的參與。你們都可以斷開連接。

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

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