蔚來 (NIO) 2022 Q4 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by, and welcome to the Nio Inc. Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) Today's conference call is being recorded.

女士們，先生們，您好。感謝您的支持，歡迎來到 Nio Inc. 2022 年第四季度收益電話會議。 （操作員說明）正在錄製今天的電話會議。

I would now like to hand the conference over to your host, Ms. Eve Tang from Capital Markets. Please go ahead.

我現在想把會議交給你的主持人，來自資本市場的 Eve Tang 女士。請繼續。

Good morning and good evening, everyone. Welcome to NIO's Fourth 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. On today's call, we have Mr. William Li, Founder, Chairman of the Board and Chief Executive Officer; Mr. Steven Feng, Chief Financial Officer; Mr. Stanley Qu, Senior VP of Finance, and Ms. Jade Wei, VP of Capital Markets.

大家早上好，晚上好。歡迎來到 NIO 2022 年第四季度收益電話會議。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，並發佈在公司的 IR 網站上。在今天的電話會議上，我們有創始人、董事會主席兼首席執行官 William Li 先生；首席財務官 Steven Feng 先生；財務高級副總裁 Stanley Qu 先生和資本市場副總裁 Jade Wei 女士。

Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding risks and uncertainties is included in certain filings of the company with the U.S. Securities and Exchange Commission, the Stock Exchange of Hong Kong Limited and the Singapore Exchange Securities Trading 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的風險和不確定性。因此，公司的實際結果可能與今天表達的觀點存在重大差異。有關風險和不確定性的更多信息包含在公司向美國證券交易委員會、香港聯合交易所有限公司和新加坡證券交易所有限公司提交的某些文件中。公司不承擔任何更新任何前瞻性陳述的義務，除非適用法律要求。

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

另請注意，NIO 的收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務信息以及未經審計的非 GAAP 財務措施的討論。請參閱新聞稿，其中包含未經審計的非 GAAP 措施與可比較的 GAAP 措施的調節。

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 2022 Q4 earnings conference. In Q4 2022, NIO delivered a total of 4,052 smart electric vehicles, up 60% year-over-year, achieving a new quarterly record. According to the retail data released by Catac, China Automotive Technology and Research Center, NIO was the best-selling brand in China's premium EV market priced over RMB 300,000 with a market share of 54.8%, while over market share in the premium EV market priced over RMB 400,000 reached 75.8%.

【解讀】大家好。感謝您參加蔚來 2022 年第四季度財報會議。 2022年Q4，蔚來共交付智能電動車4052輛，同比增長60%，創季度新高。根據中國汽車技術研究中心凱泰克發布的零售數據顯示，蔚來是中國30萬元以上高端電動車市場的暢銷品牌，市場份額為54.8%，而在高端電動車市場中，蔚來超市場份額為30萬元以上。 40萬元以上的達到75.8%。

In 2022, despite the impact posed by COVID and supply chain disruptions, NIO delivered a total of 122,486 smart electric vehicles, up 34% year-over-year. In January and February of 2023, we delivered 20,663 vehicles, representing a 30.89% increase year-over-year. We expect the total deliveries in the first quarter of this year to be between 31,000 and 33,000 units. As the penetration rate of the premium EV growth and more NIO products is expected to be delivered in the second quarter, we have a strong confidence in the market demand in 2023.

2022年，儘管受到疫情和供應鏈中斷的影響，蔚來智能電動汽車共交付122,486輛，同比增長34%。 2023年1-2月，我們交付汽車20663輛，同比增長30.89%。我們預計今年第一季度的總交付量將在 31,000 至 33,000 台之間。隨著高端電動汽車滲透率的增長和更多蔚來產品預計將在二季度交付，我們對2023年的市場需求充滿信心。

Next, I would like to share some recent highlights of our products, R&D and operations. Since we started to deliver ET5 in September 2022, its production and delivery has been ramping up steadily. According to Catac's retail data, this January, among all the mid-size sedans priced over RMB 300,000, NIO ET5 outperformed popular internal combustion vehicles from well-established brands and became the top-selling model in Beijing, Shanghai, Guangzhou, Shenzhen and other 15 cities in China and the second best-selling model nationwide in China.

接下來，我想分享一下我們最近在產品、研發和運營方面的一些亮點。自 2022 年 9 月開始交付 ET5 以來，其生產和交付一直在穩步上升。據中汽泰克零售數據顯示，今年1月，蔚來ET5在30萬以上中型轎車中，跑贏知名品牌內燃機熱銷車型，成為北上廣深等地銷量第一的車型。全國15個城市，全國第二暢銷機型。

On December 24, 2022, we held NIO Day 2022 in Hefei, where we launched the smart electric flagship coupe SUV EC7 and all-round flagship SUV, the All-new ES8. EC7 is a large-sized coupe SUV that inherits NIO's high-performance DNA and delivers ultimate handling and the riding experience. The delivery of EC7 is expected to start in May. As NIO's flagship SUV based on the technology platform 2.0, the 6 theater All-new ES8 offers 2 seat layouts catering to all scenarios including work, family, social and exploration. The delivery of the All-new ES8 is expected to start in June, both new products have attracted wide attention and received great feedback.

2022年12月24日，我們在合肥舉辦了2022蔚來日，發布了智能電動旗艦轎跑SUV EC7和全能旗艦SUV全新ES8。 EC7是一款大尺寸轎跑SUV，繼承了蔚來的高性能DNA，帶來極致的操控和乘坐體驗。預計 EC7 將於 5 月開始交付。作為蔚來基於科技平台2.0打造的旗艦SUV，6影院全新ES8提供2種座椅佈局，滿足工作、家庭、社交、探索等全場景需求。全新ES8預計6月開始交付，兩款新品都受到了廣泛關注和好評。

In the first half of this year, NIO will gradually launch more new products and shortened the waiting time for our launch to user delivery. Other supply chain and manufacturing teams have been preparing for new product launches and production ramp-up, making sure that supply and production go hand-in-hand with the growing demand for the new product.

今年上半年，蔚來將逐步推出更多新品，縮短從上線到用戶交付的等待時間。其他供應鍊和製造團隊一直在為新產品發布和產量提升做準備，確保供應和生產與對新產品不斷增長的需求齊頭並進。

For intelligent driving, NIO has gradually rolled out NOP+ Beta to all NT2.0 vehicles. Based on our full stack in-house developed intelligent driving technologies and the closed-loop data management. NOP+ Beta has realized significant improvements in areas of a sense of reassurance, comfort and efficiency. The utilization rate has doubled with a total engaged mileage of over 1.75 million kilometers in the recent week. We plan to roll out more features and functions to our users and will gradually release power swap pallet for highway in the first half of this year.

在智能駕駛方面，蔚來已逐步向所有NT2.0車輛推出NOP+ Beta。基於我們全棧自主開發的智能駕駛技術和閉環數據管理。 NOP+ Beta 在安心感、舒適感和效率方面實現了顯著改善。最近一周，利用率翻了一番，累計行駛里程超過175萬公里。我們計劃向我們的用戶推出更多的特性和功能，並將在今年上半年逐步發佈公路用換電托盤。

With respect to the sales and service network, we now have 375 NIO houses and NIO spaces in 141 cities and 305 NIO service centers and NIO delivery centers in 148 cities. In terms of the charging and swapping network, NIO has installed a total of 1,331 power swap stations and provided over 18 million battery swap for our users. In the meantime, NIO has accumulatively deployed 60,385 power chargers and 7,558 destination chargers sent over power map has been connected to over 1.04 million third-party charges. In 2022, 50% of the power charged by our users is from battery swapping stations, which has become the most convenient and favorite solution among new users.

在銷售和服務網絡方面，我們目前在141個城市擁有375個NIO House和NIO Space，在148個城市擁有305個NIO服務中心和NIO交付中心。在充換電網絡方面，蔚來累計安裝換電站1331座，為用戶提供超過1800萬次換電。同時，蔚來已累計部署60,385個充電樁，通過power map發送的目的地充電樁7,558個，接入第三方充電樁超過104萬次。到2022年，我們用戶50%的電量來自換電站，這已經成為新用戶最方便和最喜歡的解決方案。

In 2023, NIO will speed up the development of the battery swapping network and plan to install additional 1,000 power swap stations. By the end of 2023, there will be more than 3,000 -- 2,300 power swap stations in total. So far, the mass production of power swap station 3.0 is going forward smoothly with large-scale production expected to start in April. The accelerated deployment of power stations can not only provide existing users with experiences beyond expectations, but also significantly boost user demand.

2023年，蔚來將加快換電網絡建設，計劃新增1000座換電站。到2023年底，換電站總數將超過3000——2300個。目前，換電站3.0量產進展順利，預計4月份開始量產。電站的加速部署，不僅可以為存量用戶提供超出預期的體驗，還可以顯著拉動用戶需求。

In Q4 2022, NIO started to offer NT2.0 products and comprehensive services in Germany, Netherlands, Denmark and Sweden. NIO products have been highly recognized by professional media in Europe, and the user satisfaction rate has also reached off expectations. After obtaining the prestigious Golden Steering Wheel award, ET7 was honored with multiple awards in Europe, such as the Technological Forefront Runner of the Year at the Danish Auto Awards, Car of the Year and The Best in the Luxury segment by Auto Motor Sport Sweden and the promise of 2023 by the Association of Business Drivers in Netherlands.

2022年第四季度，蔚來開始在德國、荷蘭、丹麥和瑞典提供NT2.0產品和綜合服務。蔚來產品在歐洲獲得了專業媒體的高度認可，用戶滿意度也超預期。在獲得久負盛名的金方向盤獎後，ET7在歐洲獲得了多個獎項，例如丹麥汽車大獎的年度技術領先者，瑞典汽車運動的年度最佳汽車和豪華車領域的最佳汽車，以及荷蘭商業司機協會 2023 年的承諾。

On January 31, 2023, we started to deliver EL7, our mid-large smart electric SUV to the first batch of users in Europe. As we continue to introduce a more diversified product portfolio, expand our sales to service and power network, improve over brand awareness, we are confident in our long-term development in Europe.

2023年1月31日，我們開始向歐洲首批用戶交付中大型智能電動SUV EL7。隨著我們繼續推出更多元化的產品組合，將我們的銷售擴大到服務和電力網絡，提高品牌知名度，我們對我們在歐洲的長期發展充滿信心。

The development of NIO wouldn't have been possible without our users and customers. In 2022, 4,447 users volunteered at auto shows, NIO Day and other events. NIO users have also been actively making contributions to society with the participation of public wealth activities reaching 6,202 people at times in 2022.

沒有我們的用戶和客戶，NIO 的發展是不可能的。 2022年，4447名用戶參與了車展、NIO Day等活動。蔚來用戶也積極回饋社會，2022年公益活動參與人數達6202人次。

On January 18, 2023. NIO was recognized in Corporate Knights 2023 Global 100, the world's most sustainable companies to list. Among 333 companies in the car and trucks manufacturing, including parts category, NIO ranked the first. In the meantime, on January 31, 2023, NIO's second advanced manufacturing base with certified 3-star green building and lead coat marking the first of its kind in China. We attach particular importance to low carbon development, environmental production and ecosystem co-construction and actively practice sustainable philosophy to continuously improve over years to performance.

2023 年 1 月 18 日，蔚來入選 Corporate Knights 2023 全球 100 強，這是全球最具可持續性的上市公司。在汽車和卡車製造（包括零部件類別）的 333 家公司中，蔚來排名第一。同時，2023年1月31日，蔚來第二個擁有三星級綠色建築認證的先進製造基地和國內首創鉛衣。我們特別重視低碳發展、環保生產和生態系統共建，積極踐行可持續發展理念，多年來不斷提升業績。

In 2022, to build our long-term competitiveness we made decisive investments and achieved a positive strides in the research and development of core technologies and products, the deployment of charging and swapping infrastructure as well as sales and service network and the global market expansion, laying a solid foundation for the company's long-term growth.

2022年，為打造長期競爭力，我們果斷投入，在核心技術和產品研發、充換電基礎設施和銷售服務網絡佈局、全球市場拓展等方面取得積極進展，為公司的長遠發展奠定了堅實的基礎。

As our product portfolio transition to NT2.0 with more NIO products to be launched and delivered in 2023, we will do over level best to provide users with experiences beyond expectations. At the same time, we aim for all-around execution efficiency improvements so as to compete in the global EV market in the long run in an agile and efficient manner.

隨著我們的產品組合向 NT2.0 過渡，更多 NIO 產品將在 2023 年推出和交付，我們將盡最大努力為用戶提供超出預期的體驗。同時，我們旨在全方位提升執行效率，以敏捷高效的方式在全球電動汽車市場中長期競爭。

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 fourth quarter. Over to you, Steven.

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，以提供第四季度的財務細節。交給你了，史蒂文。

Thank you, William. I will now go over our key financial results for the fourth quarter of 2022. And to be mindful of the financial figures of this call, I will reference to RMB only in my discussion today. I encourage listeners to refer to our earnings press release, which is posted online for additional details.

謝謝你，威廉。我現在將回顧一下我們 2022 年第四季度的主要財務業績。為了注意本次電話會議的財務數據，我將在今天的討論中僅提及人民幣。我鼓勵聽眾參考我們的收益新聞稿，該新聞稿發佈在網上以獲取更多詳細信息。

Our total revenues in the fourth quarter were RMB 16.1 billion, representing an increase of 62.2% year-over-year and 23.5% quarter-over-quarter. Our total revenues are made of 2 parts: vehicle sales and other sales. Vehicle sales in the fourth quarter were RMB 14.8 billion, representing an increase of 60.2% year-over-year and 23.7% quarter-over-quarter. The increase in vehicle sales year-over-year was mainly attributed to higher deliveries as a result of a more diversified product mix offered to our users.

我們第四季度的總收入為人民幣 161 億元，同比增長 62.2%，環比增長 23.5%。我們的總收入由兩部分組成：汽車銷售和其他銷售。第四季度汽車銷售額為人民幣148億元，同比增長60.2%，環比增長23.7%。汽車銷量的同比增長主要歸因於向我們的用戶提供更多樣化的產品組合導致交付量增加。

The increase in vehicle sales quarter-to-quarter was mainly due to volume ramp-up of the ET5 and ES7. Other sales in the fourth quarter were RMB 1.3 billion, representing an increase of 90.3% year-over-year, an increase of 22% quarter-over-quarter. The increase in other sales year-over-year was mainly due to the increase of revenue from rendering of research and development services and increase in other revenues in line with the incremental vehicle sales. The increase in other sales quarter-over-quarter was mainly due to increase of revenue from rendering of research and development services and increasing sales for accessories charging piles and used cars in line with the incremental vehicle sales, partially offset by the sales of automotive regulatory credits in the third quarter of 2022.

汽車銷量環比增長主要是由於 ET5 和 ES7 的銷量增加。第四季度其他銷售額為人民幣13億元，同比增長90.3%，環比增長22%。其他銷售額同比增長主要是由於提供研發服務收入增加以及其他收入隨汽車銷量的增加而增加。其他銷售額環比增長主要是由於提供研發服務的收入增加以及配件充電樁和二手車的銷售額隨著車輛銷量的增加而增加，部分被汽車監管的銷售額所抵消2022 年第三季度的學分。

Gross margin in the fourth quarter of 2022 was 3.9% compared with 17.2% in the fourth quarter of 2021 and 13.3% in the third quarter of 2022. The decrease of gross margin year-over-year was mainly attributed to decrease the vehicle margin. The increase of gross margin quarter-over-quarter was mainly attributed to the credit vehicle margin and the credit other sales margin mainly resulted from the sales of automotive director credits with high gross margin in the third quarter of 2022.

2022 年第四季度的毛利率為 3.9%，而 2021 年第四季度為 17.2%，2022 年第三季度為 13.3%。毛利率同比下降主要是由於汽車利潤率下降。毛利率環比增長主要歸因於信貸車輛利潤率和信貸其他銷售利潤率主要來自 2022 年第三季度高毛利率的汽車導演信貸銷售。

More specifically, vehicle margin in the fourth quarter was 6.8% compared with 20.9% in the fourth quarter of 2021 and 16.4% in the third quarter of 2022. The decrease of vehicle margin year-over-year was mainly attributed to: first, increased inventory provisions, accelerated depreciation on production facilities and losses on purchase commitments for the existing generation of ES8, ES6, and it is fixed but are expected to have lower production levels and deliveries due to the transition to new models on the NIO technology platform 2.0, which in totality greatly impacted vehicle margin by 6.7%; and second, increased battery cost per unit.

更具體地說，第四季度汽車利潤率為 6.8%，而 2021 年第四季度為 20.9%，2022 年第三季度為 16.4%。汽車利潤率同比下降的主要原因是：首先，增加存貨撥備、生產設施加速折舊和現有一代 ES8、ES6 的採購承諾損失，它是固定的，但由於向 NIO 技術平台 2.0 上的新模型過渡，預計生產水平和交付量會降低，總體而言，這對車輛利潤率產生了 6.7% 的巨大影響；其次，單位電池成本增加。

The decrease of vehicle margin from the third quarter of 2022 was mainly due to the increased inventory provisions, accelerated depreciation on production facilities and the losses on purchase commitments for the existing generation of ES8, ES6 and ET6. R&D expenses in the fourth quarter were RMB 4.0 billion, representing an increase of 117.7% year-over-year and 35.2% quarter-over-quarter. The increase in R&D expenses year-over-year and quarter-over-quarter, while we attributed to increased personnel costs in research and development functions as well the incremental design and development cost of new products and technologies.

整車利潤率較2022年第三季度下降主要是由於存貨撥備增加、生產設施加速折舊以及現有一代ES8、ES6和ET6採購承諾的損失。第四季度研發費用為人民幣40億元，同比增長117.7%，環比增長35.2%。研發費用同比和環比增加，同時我們歸因於研發職能人員成本的增加以及新產品和新技術的增量設計和開發成本。

SG&A expenses in the fourth quarter were RMB 3.5 billion, representing an increase of 49.6% year-over-year, at 30% quarter-over-quarter.

第四季度的 SG&A 費用為人民幣 35 億元，同比增長 49.6%，環比增長 30%。

The increase in SG&A expenses year-over-year and quarter-over-quarter was primarily due to: first, the increase in personnel costs related to sales and general corporate functions; second, the increase in marketing and promotion activities to promote our vehicles in China and Europe. Third, increased expenses related to the company's sales and service network expansion. Loss from operations in the fourth quarter was RMB 6.7 billion, representing an increase of 175.5% year-over-year and 74% quarter-over-quarter.

SG&A 費用同比和環比增加的主要原因是：首先，與銷售和一般公司職能相關的人員成本增加；第二，增加營銷和促銷活動以在中國和歐洲推廣我們的車輛。三是與公司銷售和服務網絡擴張相關的費用增加。第四季度經營虧損為人民幣67億元，同比增長175.5%，環比增長74%。

Other income net in the fourth quarter of 2022 was RMB 315.7 million representing an increase of RMB 262.2 million from the fourth quarter of 2021, an increase of RMB 811.3 million for other losses of RMB 495.6 million in the third quarter of 2022. The increase of other incomes year-over-year and quarter-over-quarter was mainly due to the gain from the revaluation of our overseas RMB-related assets are the result of appreciation of RMB against U.S. dollars in the fourth quarter of 2022.

2022年第四季度其他收入淨額為人民幣3.157億元，比2021年第四季度增加人民幣2.622億元，2022年第三季度其他虧損人民幣4.956億元，增加人民幣8.113億元。其他同比和環比收入主要是由於2022年第四季度人民幣兌美元升值導致我們海外人民幣相關資產重估的收益。

Net loss in the fourth quarter was RMB 5.8 billion, representing an increase of 159.9% year-over-year and 40.8% quarter-over-quarter. Net loss attributable to NIO's ordinary shareholders in the fourth quarter was RMB 5.8 billion, representing increase of 168.3% year-over-year and 41.2% quarter-over-quarter.

第四季度淨虧損58億元，同比增長159.9%，環比增長40.8%。第四季度歸屬於蔚來普通股股東的淨虧損為人民幣58億元，同比增長168.3%，環比增長41.2%。

Our balance of cash and cash equivalents, restricted cash, short-term investment in long-term time deposits was RMB 45.5 billion as of December 31, 2022.

截至 2022 年 12 月 31 日，我們的現金及現金等價物、受限制現金、短期投資長期定期存款餘額為人民幣 455 億元。

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

現在我們準備好的發言到此結束。我現在將把電話轉給接線員以繼續我們的問答環節。

(Operator Instructions) Our first question today comes from Tim Hsiao with Morgan Stanley.

（操作員說明）我們今天的第一個問題來自摩根士丹利的 Tim Hsiao。

(foreign language) So my first question is about the supply chain and also the development because NIO shipment last year were seriously dragged by the supply bottleneck of aluminum parts, CDS and chips. So according to the announcement of NIO's first quarter volume guidance of 31,000 to 33,000 or does it suggest more moderated vehicle sales in March. Is that because component that still suffered from supply constraint? What current vehicle production run rate and how fast you could ramp up on weekly and monthly base into second quarter?

（外語）所以我的第一個問題是關於供應鍊和發展，因為NIO去年的出貨量受到鋁零件，CDS和芯片供應瓶頸的嚴重拖累。因此，根據 NIO 公佈的第一季度 31,000 輛至 33,000 輛的銷量指導，這是否表明 3 月份的汽車銷量將有所放緩。那是因為組件仍然受到供應限制嗎？當前的汽車生產運行率是多少？您可以以多快的速度在每周和每月的基礎上增加到第二季度？

[Interpreted] Thank you, Tim, for your question. In the fourth quarter of last year, supply of the parts have affected over vehicle deliveries to some extent. But starting from the first quarter of this year, we have seen that the control and prevention measures regarding the COVID have been lifted. So currently, we believe the supply of the parts is not the bottleneck for us. Starting from the second quarter, we believe with over new vehicle deliveries, we will need to have some time to ramp up the production, but we don't believe that the part supply will be a constraint for us.

[已翻譯] 蒂姆，謝謝你的提問。去年第四季度，零部件供應對超車交付產生了一定影響。但從今年第一季度開始，我們看到針對新冠病毒的防控措施已經解除。所以目前，我們認為零件的供應不是我們的瓶頸。從第二季度開始，我們相信隨著新車交付量的增加，我們將需要一些時間來提高產量，但我們認為零件供應不會成為我們的製約因素。

(foreign language) So my second question is about the battery cost and those of the gross margin because the fourth quarter vehicle gross margin dropped more significantly. So we think the 6.7 percentage point margin mentioned in the announcement, how much of that would be one-off? And how much of that would be lasting into first quarter? In the meantime, on the bright side, I think battery prices cost (inaudible) the vehicle margin, NIO's vehicle margin this year. So how should we think about the contribution from the new battery country prices? Because I recall that we mentioned we RMB 100,000 decrease in (inaudible) to about 2 percentage point vehicle gross margin expansion. So could you please share some updates regarding how much more contribution from the lower battery cost, should we expect this year or in first half?

（外語） 所以我的第二個問題是關於電池成本和毛利率的，因為第四季度汽車毛利率下降得更明顯。所以我們認為公告中提到的6.7個百分點的保證金，其中有多少是一次性的？其中有多少會持續到第一季度？與此同時，從好的方面來看，我認為電池價格成本（聽不清）車輛利潤率，NIO 今年的車輛利潤率。那麼我們應該如何看待新電池國價的貢獻呢？因為我記得我們提到我們減少了 100,000 元人民幣（聽不清）到大約 2 個百分點的車輛毛利率擴張。那麼，您能否分享一些關於降低電池成本的更多貢獻的最新消息，我們應該期待今年還是上半年？

Thank you, Tim. This is Stanley. First, I want to further clarify the Q4's 2022 gross profit margin. Since our brand new ES8, ES6 will start user delivery in Q2 23. So we lowered our order forecast for current generation ES8, ES6 and ET6 in Q4 2022. So inventory provision and losses on purchase commitment relate to those products was booked in Q4 with total amount of RMB 985 million, excluding this impact, the vehicle margin in Q4 was 13.5%. So compared with the last quarter, the decrease results from the change of product mix especially more ET5 sold in Q4 with lower gross profit margin.

謝謝你，蒂姆。這是斯坦利。首先，我想進一步澄清Q4的2022年毛利率。由於我們全新的 ES8、ES6 將於 23 年第二季度開始向用戶交付。因此我們下調了 2022 年第四季度對當前一代 ES8、ES6 和 ET6 的訂單預測。因此，與這些產品相關的庫存撥備和採購承諾損失已在第四季度入賬總額為9.85億元人民幣，剔除此影響，Q4整車毛利率為13.5%。因此，與上一季度相比，減少是由於產品結構的變化，尤其是第四季度銷售的 ET5 較多，毛利率較低。

And for the forecast of gross profit margin in 2023, I'll ask William to help Explain.

而對於2023年的毛利率預測，我會請William幫忙解釋一下。

[Interpreted] Thank you for your question. Starting from the second quarter of this year, we are going to gradually launch and deliver all the products based on the new technology platform 2.0. When it comes to the total product portfolio, we can look at them into 3 different dimensions.

[已翻譯] 謝謝你的問題。從今年第二季度開始，我們將逐步推出和交付基於新技術平台2.0的所有產品。當涉及到整個產品組合時，我們可以從 3 個不同的維度來看待它們。

The first 1 is the volume driver that is the ET5, ES6 and the ET5 tooling that we haven't released about -- I believe everyone knows. So if we combine the ET5, ET5 tooling and the ES6 together, we believe it's possible for us to achieve 20,000 units per month if we consider the addressable market of -- when it comes to the second dimension, that is the volume contributor that includes the ET7, ES7 and the ES8. We believe for those models, each model can achieve delivery volume around 2,000 to 4,000 per month. And if we combine them together, then for this volume contributor segment, this property can contribute 8,000 to 10,000 units for overall vehicle delivery and sales.

第一個是volume driver，也就是我們還沒有發布的ET5、ES6和ET5工具——相信大家都知道。因此，如果我們將 ET5、ET5 工具和 ES6 結合在一起，我們相信我們有可能實現每月 20,000 個單位，如果我們考慮可尋址市場——當涉及到第二個維度時，即體積貢獻者包括ET7、ES7 和 ES8。我們相信對於這些型號，每個型號可以達到每月 2,000 到 4,000 輛左右的交付量。如果我們將它們結合在一起，那麼對於這個體積貢獻者細分市場，該物業可以為整體車輛交付和銷售貢獻 8,000 到 10,000 輛。

For the third dimension that is the brand shaper that is over coupe SUV, the EC7 and the EC6 because coupe SUVs is a relatively weak market, and we believe that this can probably help us to better showcase our brand design and for those users who would like it to be different, and they want to show off their taste and their sense of design probably they can choose this brand shaper products. Of course, we hope to sell more products including the brand shaper but this is a relatively niche market segment.

第三個維度是品牌塑造者，超過coupe SUV，EC7和EC6，因為coupe SUV是一個比較薄弱的市場，我們相信這可能有助於我們更好地展示我們的品牌設計，對於那些想要的用戶喜歡與眾不同，又想彰顯自己的品位和設計感的人可能會選擇這個品牌的塑形產品。當然，我們希望銷售更多產品，包括品牌塑造者，但這是一個相對小眾的細分市場。

So we believe it's a brand shaper that the EC7 and the EC6, are probably the volume is around 1,000 to 2,000 per month for each product. So if we look at the complete product portfolio of all those we believe those strong product portfolio and diversified product portfolio should be able to support us to achieve a volume of 30,000 units per month.

因此，我們認為 EC7 和 EC6 是品牌塑造者，每種產品的銷量可能在每月 1,000 到 2,000 輛左右。因此，如果我們查看所有這些產品的完整產品組合，我們認為那些強大的產品組合和多元化的產品組合應該能夠支持我們實現每月 30,000 台的銷量。

Okay. Tim, this is Steven. I would like to answer your second question about the lithium price. First, it was great that our GP margin is very sensitive to the lithium price. As you have mentioned, if they -- lithium increased by RMB 100,000 per ton, our GP margin can be boosted by as high as 200% percentage point. So that means we expect or we believe this year, there's a good chance that lithium carbonate price will trade to around RMB 200,000 per ton, and that will state a good GP market elasticity for NIO. And if you look at the lithium carbonate price, in the past, it was just like around RMB 100,000 and then it picked around RMB 570,000 in November 2022, which increased the whole EV industry.

好的。蒂姆，這是史蒂文。我想回答你關於鋰價格的第二個問題。首先，我們的 GP 利潤率對鋰價格非常敏感，這很好。正如你所提到的，如果他們 - 鋰每噸增加 100,000 元人民幣，我們的 GP 利潤率可以提高高達 200% 個百分點。因此，這意味著我們預計或相信今年碳酸鋰價格很有可能交易至每噸 20 萬元人民幣左右，這將表明 NIO 具有良好的 GP 市場彈性。而你看碳酸鋰價格，過去大概在10萬元左右，2022年11月漲到57萬元左右，帶動了整個電動汽車行業。

And then from the beginning of this year, the lithium carbonate price were treated to around RMB 400,000 per ton. Looking forward on the supply side, at more -- several battery suppliers invested in the upstream raw material efforts. And these efforts started to yield meaningful lithium carbonate supply from the second quarter of this year. So from a supply side, we do see a stable increase. On demand side, yes, that year, the China's EV sales volume almost doubled.

而今年年初開始，碳酸鋰價格被處理到40萬元/噸左右。展望供應端，多家電池供應商在上游原材料方面進行了投資。這些努力從今年第二季度開始產生有意義的碳酸鋰供應。因此，從供應方面來看，我們確實看到了穩定的增長。在需求方面，是的，那一年，中國的電動汽車銷量幾乎翻了一番。

But if you look at this year, a good estimation is around 30%. So we expect the gap between the supply and demand will reduce significantly, which will lead to a lower and more reasonable lithium carbonate price around RMB 2,000 per ton. Not least, when we look at the production cost of lithium carbonate. If you look at the (inaudible) cost which is RMB 150,000. So a lithium carbonate price around RMB 200,000 per ton can offer a good profit room for such (inaudible) supply to offer stable. So in short, if the lithium carbonate price will trade quite a lot this year, and that's good for the whole industry.

但如果你看看今年，一個好的估計是 30% 左右。因此我們預計供需缺口將顯著縮小，這將導致碳酸鋰價格在2000元/噸左右更低、更合理。尤其是，當我們查看碳酸鋰的生產成本時。如果您看一下 150,000 元人民幣的（聽不清）成本。因此，每噸 20 萬元左右的碳酸鋰價格可以為此類（聽不清）供應穩定提供良好的利潤空間。所以簡而言之，如果今年碳酸鋰價格交易量很大，那對整個行業來說都是利好。

The next question comes from Paul Gong with UBS.

下一個問題來自瑞銀集團的 Paul Gong。

Two questions. The first 1 is regarding the latest sales trend of ES7 and ET7. I understand that the 866 these 3 models are phasing out. That is a temporary weekly before switching to the new platform. And I also see you have put a lot of the expectation on the NT2.0 platform products. But what has been driving the weakness of the ES7 and the ET7 recently? Is that due to the immediate hangover effect of the subsidy cards due to the supply chain bottleneck? Or is it like capacity allocation to ET5 that has cannibalized the ES7 and ET7 sales. So what has been the reason for the recent weekly of these 2 NIO platform kind of flagship models?

兩個問題。第一個是關於ES7和ET7的最新銷售趨勢。據了解，866這3款正在逐步淘汰。這是切換到新平台之前的臨時每週一次。而且我也看到大家對NT2.0平台的產品寄予了很大的期待。但是最近導致 ES7 和 ET7 疲軟的原因是什麼？是因為供應鏈瓶頸導致補貼卡的直接後遺症？或者是像 ET5 的產能分配蠶食了 ES7 和 ET7 的銷量。那麼最近這兩款蔚來平台旗艦車型的熱度到底是什麼原因呢？

My second question is regarding the efficiency improvement. I think William had some -- spoken beginning of this year regarding the key effort of efficiency improvement in 2023. So what has been the key area that you want to improve? We can still see you invest a lot for the future, including the 1,000 batteries working stations to be deployed for this year, including the expansion and NIO house in Europe, but where can we find the efficiency improvements and the expense ratio or reduction for the rest of this year?

我的第二個問題是關於效率提升的。我認為 William 在今年年初就 2023 年提高效率的關鍵努力發表了一些言論。那麼你想要改進的關鍵領域是什麼？我們仍然可以看到你們為未來投入了很多，包括今年要部署的1000個電池工作站，包括在歐洲的擴建和NIO house，但是我們在哪裡可以找到效率的提高和費用率或降低？今年剩下的時間？

[Interpreted] Thank you, Paul, for your question. We can see that for the first 2 months of this year, the market demand is not that strong, especially when you come through the demand for the BEV. We see this has suffered some impact. But if you look at all the peers, I believe most peers have published their delivery results for the first 2 months. This is actually affecting everyone in the market. I believe a very important factor is the subsidy cuts. Starting from this year, there will be no more subsidies. And this will create some short-term effect on everyone in this market. But when it comes to NIO specifically, because we have a relatively higher MSRP, so this impact on us is actually relatively lower compared with others.

[已翻譯] 保羅，謝謝你的問題。我們可以看到，今年前兩個月，市場需求並不那麼強勁，尤其是當你通過對 BEV 的需求來的時候。我們看到這受到了一些影響。但是如果你看看所有的同行，我相信大多數同行都公佈了前2個月的交付結果。這其實是在影響著市場上的每一個人。我認為一個非常重要的因素是補貼削減。從今年開始，不再有補貼。這將對這個市場上的每個人產生一些短期影響。但是具體到蔚來，因為我們的廠商建議零售價比較高，所以這個對我們的影響其實相對其他人來說是比較小的。

Starting from the February, we can see the demand is recovering week by week, including the ES7 and the ET7 compared with January. So for the year ES7 and ET7, we can see that in their specific segment, they're still very competitive. So we are very confident when it comes to the demand for the ES7 and the ET7 in the long run. But in the short term, yes, we are facing some pressure. I believe there are multiple factors we have to consider probably like the Spring Festival and the low seasonalities of the auto market as well as the subsidies or other micro environment. But still, we are very confident with our product competitiveness in their specific segment.

從2月開始，我們可以看到需求逐週恢復，包括ES7和ET7與1月相比。所以對於今年的 ES7 和 ET7，我們可以看到在他們的特定細分市場中，他們仍然非常有競爭力。因此，從長遠來看，我們對 ES7 和 ET7 的需求非常有信心。但在短期內，是的，我們面臨一些壓力。我認為我們必須考慮多種因素，可能像春節和汽車市場的淡季以及補貼或其他微觀環境。但是，我們對我們在特定領域的產品競爭力非常有信心。

Yes, actually, the efficiency improvement is the most important half for NIO this year. Last year because of the project progress and we have multiple projects going in parallel. So the human resources increase is much faster compared with the past. But when it comes to the efficiency improvements, we are not talking about the cutting projects, we believe that the efficiency is more about improving the efficiency per person. We can improve the overall efficiency of the whole organization when it comes to the R&D, sales and service and also management.

是的，其實效率提升是蔚來今年最重要的一半。去年因為項目進度，我們有多個項目並行。所以人力資源的增長比過去要快得多。但是說到效率的提升，我們不是在說砍項目，我們認為效率更多的是提高人均效率。我們可以提高整個組織在研發、銷售和服務以及管理方面的整體效率。

At the same time, we also need to do some prioritization of a different kind of a project, including the R&D projects and also the CapEx investment. So it means that we need to look at the priority in terms of the timeline and also the investment. So all-in-all the efficiency improvement were more focused on the output and the quality of the output as well as to the prioritization.

與此同時，我們還需要對不同類型的項目進行優先排序，包括研發項目和資本支出投資。因此，這意味著我們需要根據時間表和投資來考慮優先級。因此，總的來說，效率的提高更多地集中在輸出和輸出質量以及優先級上。

The next question comes from Nick Lai with JPMorgan.

下一個問題來自摩根大通的 Nick Lai。

(foreign language) Let me translate my question is very fast. Yes, the first question is about the cooperation agreement with CTO and the pricing arrangement with CTO and also another pre-update on statement semi-solid state battery. And secondly, can we talk about the potential investment size for new initiatives?

（外語）讓我翻譯我的問題很快。是的，第一個問題是關於與CTO的合作協議和與CTO的定價安排，以及關於聲明半固態電池的另一個預更新。其次，我們能否談談新舉措的潛在投資規模？

[Interpreted] Nick, thank you for your question. For this year, we will introduce a new battery partners. I believe, probably around March, we're going to launch new battery packs in collaboration with CALB. At the same time, we will also keep our long-term strategic relationship with CATL but right now, we're in discussion with CATL in terms of the new agreement, but we haven't signed the agreement yet.

[翻譯] 尼克，謝謝你的問題。今年，我們將推出新的電池合作夥伴。我相信，大概在三月左右，我們將與 CALB 合作推出新的電池組。同時，我們也將與寧德時代保持長期的戰略關係，但目前我們正在與寧德時代就新協議進行談判，但尚未簽署協議。

I believe that the discussion direction is basically that the battery companies will start to work in parallel with the auto companies, and we are going to share the volatilities of the raw material cost together throughout the supply chain. And when it comes to the semi-solid battery. We have a sense of battery teams to help our partners in the semi-solid battery and make sure they can have a small mass production for the batteries. But we are really sorry for the delay, but probably this will be available. We estimate this will be available probably after several months.

我相信討論的方向基本上是電池企業開始和汽車企業並行，我們要在整個供應鏈上共同分擔原材料成本的波動。說到半固態電池。我們有電池團隊的意識，可以幫助我們的合作夥伴在半固態電池方面，並確保他們可以對電池進行小批量生產。但是對於延誤我們真的很抱歉，但是這可能是可用的。我們估計這可能會在幾個月後可用。

Regarding the investment for the new strategic -- for the strategic new businesses, for the full year, we estimate that this will be around RMB 4 billion to RMB 5 billion. So if we break it down, then it means that probably around RMB 1 billion every quarter. The overall target for the company is that for the group, we still aim to achieve a breakeven for the company in 2024.

關於新戰略的投資——對於戰略性新業務，全年，我們估計這將在40億元至50億元人民幣左右。所以如果我們分解的話，那麼這意味著每個季度大概在10億人民幣左右。公司的總體目標是，對於集團來說，我們還是力爭在2024年實現公司的盈虧平衡。

The next question comes from Edison Yu with Deutsche Bank.

下一個問題來自德意志銀行的 Edison Yu。

First one, can you maybe go over some feedback you've gotten in Europe? You've been in Norway for over a year. You recently launched in several other countries. What has been the user feedback? And what is a reasonable amount of volume we could expect there in the next few years?

第一個，你能回顧一下你在歐洲得到的一些反饋嗎？你在挪威已經一年多了。你最近在其他幾個國家推出。用戶反饋是什麼？未來幾年我們可以預期的合理數量是多少？

And then second question really quick. On the other margin, it's still quite negative. It's been quite negative. When can we see some recovery in that level?

然後第二個問題很快。另一方面，它仍然很消極。這是相當消極的。我們什麼時候可以看到該水平有所恢復？

[Interpreted] Thank you for your question. European market, we have delivered our products to some users, and those users have been speaking very highly about our products. We have been tracking the user satisfaction rate on a weekly basis. And we believe that this is basically means of expectations. The 1 aspect that we think is lagging behind is the infrastructure building in Europe. Right now, we have around 11 power swap stations. This is actually far behind our original planning. That's the same with the deployment of the new houses in Europe. So we believe because of the infrastructure deployment in Europe is lagging behind, which also affected the delivery and the sales in the European market.

[已翻譯] 謝謝你的問題。歐洲市場，我們已經把產品交付給了一些用戶，這些用戶對我們的產品評價很高。我們每週都會跟踪用戶滿意度。我們認為這基本上是期望的手段。我們認為落後的第一個方面是歐洲的基礎設施建設。目前，我們大約有 11 個換電站。這其實遠遠落後於我們原先的規劃。在歐洲部署新房也是如此。因此我們認為，由於歐洲的基礎設施部署滯後，這也影響了歐洲市場的交付和銷售。

When we look at the user demand and the test drive data, we can see there are some improvement on a weekly basis. And the team building is also on track for the European market. But the only thing that we need to speed up is the infrastructure building in the European market. For this year, we believe the sales is not the top priority. To be honest, our target in terms of the sales volume for the European market this year is probably less than 10,000. And we believe the most important thing for us is actually the user satisfaction rate. For the long run, we are very confident about our performance in the European market. When we consider the user satisfaction rate that we are seeing right now and the competitiveness of our product portfolio in the market.

當我們查看用戶需求和試駕數據時，我們可以看到每週都有一些改進。歐洲市場的團隊建設也步入正軌。但我們唯一需要加快的是歐洲市場的基礎設施建設。對於今年，我們認為銷售不是重中之重。老實說，我們今年在歐洲市場的銷量目標，大概不到1萬輛。我們認為對我們來說最重要的實際上是用戶滿意度。從長遠來看，我們對我們在歐洲市場的表現非常有信心。當我們考慮我們現在看到的用戶滿意度和我們產品組合在市場上的競爭力時。

Okay. For the second question about the (inaudible). As the sales and car product growing in China, the losses from vehicle repair and maintenance continuously narrowing. But we kept expanding our power swap station network in 2022 which drove the loss increase of other loss and we will stick to the continuous deployment of power network and plan to newly build 1,000 power swap stations in 2023, as William mentioned. Therefore, we expect the loss of other business will continue to increase in 2023. But the continuous expansion of our power infrastructure will not only help us improve our user satisfaction but also help us to sell more cars in the market. So that's all. Thank you.

好的。關於（聽不清）的第二個問題。隨著中國汽車銷量和產品的增長，汽車維修和保養的損失不斷縮小。但我們在 2022 年繼續擴大我們的換電站網絡，這導致其他損失的損失增加，我們將堅持電力網絡的持續部署，併計劃在 2023 年新建 1,000 個換電站，正如 William 提到的那樣。因此，我們預計其他業務的虧損將在 2023 年繼續增加。但我們電力基礎設施的持續擴張不僅有助於我們提高用戶滿意度，還有助於我們在市場上銷售更多汽車。就是這樣。謝謝。

The next question comes from Xue Deng with CICC.

下一個問題來自中金公司的鄧學。

(foreign language) So my first question is about with the further increase in the number of our distribution stocks how we will cover more loyal tier cities, considering that these customers in those markets are very speaky to traditional brands. So we make some more targeted adjustments in our products and marketing?

（外語）所以我的第一個問題是，隨著我們分銷庫存數量的進一步增加，我們將如何覆蓋更多忠誠的一線城市，考慮到這些市場中的這些客戶對傳統品牌非常有發言權。那麼我們在產品和營銷上做一些更有針對性的調整？

[Interpreted] Thank you, Xue Deng for your question. When it comes to the expansion into the sub-tier cities, we're not talking about the deployment of the NIO houses or NIO spaces. We believe that the more efficient -- more efficient way is to deploy the power swap stations in the sub-tier cities. For example, in Shandong province, (inaudible), there's some growing user base and the users at the beginning, they actually grow the user base themselves and then they worked together with us to deploy the power swap stations that -- the first of our swap stations. Then later, we deployed the second power sport stations in this town. And now this town has around 500 users.

【解讀】謝謝鄧學的提問。當談到向次級城市的擴張時，我們不是在談論 NIO 房屋或 NIO 空間的部署。我們認為，更高效的方式是在次級城市部署換電站。例如，在山東省，（聽不清），有一些用戶群在增長，一開始的用戶，他們實際上自己擴大了用戶群，然後他們與我們合作部署了換電站——我們的第一個交換站。後來，我們在這個鎮上部署了第二個電力體育站。現在這個小鎮有大約 500 名用戶。

So for those sub-tier cities, especially when it comes to the Tier 3 and Tier 4 cities, we think the more efficient way for us to grow our user base is to deploy the power swap stations. Previously, our power substation is mainly deployed in the Tier 1 and Tier 2 cities, but this is our strategy this year to make sure we can deploy more power swap stations in the Tier 3 and the Tier 4 cities.

因此，對於那些次級城市，尤其是三四線城市，我們認為我們擴大用戶群的更有效方式是部署換電站。以前，我們的變電站主要部署在一二線城市，但這是我們今年的策略，確保我們可以在三四線城市部署更多的換電站。

(foreign language) So my second question about -- we can see that at the beginning of this year, the press competition in the energy vehicle market has become mild. And also, we are positioning on -- positioning luxury brand market, where we can still see a greater press reduction in both energy, new energy and ICE vehicle market. So we will be more aggressive in the price strategy of NIO models. Have you considered the way of reducing some consideration and reduce -- to introduce more models with lower price?

（外語） 所以我的第二個問題——我們可以看到，在今年年初，能源汽車市場的壓力競爭已經變得溫和。而且，我們正在定位 - 定位豪華品牌市場，我們仍然可以看到能源、新能源和 ICE 汽車市場的壓力更大。所以我們在蔚來車型的價格策略上會更加激進。您是否考慮過減少一些考慮並減少——以更低的價格推出更多型號的方式？

[Interpreted] Our consistent strategy is to keep our product pricing stable. So we do not have any plan to cut the features and options for our product. So each of our products in portfolio, we believe when we look at the features and functions and the performance of those products as well as the user benefits. We think every aspect of the product is well deserved and well established when it comes to the product pricing and strategy. So for the NIO brand, we do not have any plan to cut the features and functions of our product. And I think that this is consistent of branding and the pricing strategy because of low pricing is not a part of the strategy or the DNA of the NIO brand.

[解讀]我們的一貫策略是保持產品定價穩定。所以我們沒有任何計劃削減我們產品的功能和選項。因此，當我們查看這些產品的特性和功能以及性能以及用戶利益時，我們相信我們產品組合中的每一種產品。我們認為，在產品定價和策略方面，產品的各個方面都是當之無愧的。所以對於蔚來這個品牌，我們沒有任何削減產品特性和功能的計劃。我認為這與品牌和定價策略是一致的，因為低定價不是 NIO 品牌戰略或 DNA 的一部分。

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

因為沒有其他問題了。現在我想把電話轉回給公司，聽取任何結束語。

Thank you once again for joining us today. If you have further questions, please feel free to contact the NIO's Investor Relations team through the contact information provided on our website. This concludes the conference call. You may now disconnect your line. 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聯繫 NIO 的投資者關係團隊。電話會議到此結束。您現在可以斷開線路。謝謝。

Thank you.

謝謝。

This does conclude our conference for today. Thank you for participating. You may now disconnect your lines.

這確實結束了我們今天的會議。感謝您的參與。您現在可以斷開線路。

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

[此記錄中標記為 [已翻譯] 的部分由現場通話中的口譯員說出。]