蔚來 (NIO) 2023 Q1 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by, and welcome to the NIO Incorporated First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. I would now like to hand the conference over to your host, Ms. Eve Tang from Capital Markets. Please go ahead.

女士們、先生們，大家好。感謝您的耐心等待，歡迎參加蔚來汽車公司 2023 年第一季度收益電話會議。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。現在我想把會議交給東道主資本市場部的Eve Tang女士。請繼續。

Good morning and good evening, everyone. Welcome to NIO's First Quarter 2023 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。歡迎參加蔚來汽車 2023 年第一季度收益電話會議。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，並發佈在公司的投資者關係網站上。

On today's call, we have a 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.

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威廉先生；馮峰先生，首席財務官；瞿先生，財務高級副總裁；以及資本市場副總裁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 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 certain filings of the Company with the US 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做出的前瞻性陳述。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。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. 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，蔚來的盈利新聞稿和本次電話會議包括對未經審計的 GAAP 財務信息以及未經審計的非 GAAP 財務指標的討論。請參閱蔚來的新聞稿，其中包含未經審計的非公認會計原則措施與可比公認會計原則措施的調節表。

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

現在，我將把電話轉給我們的首席執行官李威廉先生。威廉，請繼續。

(Interpreted) Hello, everyone. Thank you for joining NIO's 2023 First Quarter Earnings Call. In the first quarter of 2023, NIO delivered a total of 31,041 smart electric vehicles, up 20.5% year over year.

（翻譯）大家好。感謝您參加蔚來汽車 2023 年第一季度財報電話會議。 2023年第一季度，蔚來累計交付智能電動汽車31,041輛，同比增長20.5%。

In April and May, NIO delivered 6,658 and 6,155 vehicles, respectively. We expect the total deliveries in the second quarter of this year to be between 23,000 and 25,000 units. As we ramp up the production of the All-New ES6 and other new models, we are confident in continuously driving up our delivery volume.

4月和5月，蔚來分別交付了6,658輛和6,155輛汽車。我們預計今年第二季度的總交付量將在 23,000 至 25,000 輛之間。隨著全新ES6等新車型產量的不斷增加，我們有信心持續提升交付量。

Next, I would like to share with you the recent highlights of our product R&D and operations. On May 24, we launched the All-New ES6, an all-round, mid-sized, smart electric SUV, and started its delivery the next day. The product quality of the All-New ES6 has been widely acclaimed by the first batch of users.

接下來我跟大家分享一下我們近期產品研發和運營的亮點。 5月24日，全能型中型智能電動SUV全新ES6上市，並於次日開始交付。全新ES6的產品品質得到了首批用戶的廣泛好評。

In May, we also started the user delivery of the 2023 NIO ET7 and the flagship coupe SUV, EC7. Coming with more than 15 new features and enhancements, the 2023 NIO ET7 continues to lead the change in the premium smart electric large sedan market. As a flagship coupe SUV, EC7 inherits NIO's high-performance DNA and boasts ultimate riding and handling experience.

5月份，我們還開始了2023款蔚來ET7和旗艦轎跑SUV EC7的用戶交付。 2023款蔚來ET7擁有超過15項新功能和增強功能，繼續引領高端智能電動大型轎車市場的變革。作為一款旗艦轎跑SUV，EC7繼承了蔚來高性能DNA，擁有極致的乘坐操控體驗。

NIO's product quality and safety are also recognized by authoritative institutions. On April 24, NIO ET5 was rated good, the highest safety level, by China Insurance Automobile Safety Index, or CIASI. In J.D. Power's 2023 China New Energy Vehicle Initial Quality Study released on June 1, NIO's ES6 won first place in the premium BEV segment for the fourth consecutive year. Also in J.D. Power's 2023 NEV-IQ Study, which evaluates new energy vehicles' performance, execution and layout, NIO ET7 ranked number one among premium BEVs.

蔚來的產品質量和安全也得到權威機構的認可。 4月24日，蔚來ET5被中國保險汽車安全指數（CIASI）評為最高安全等級“良好”。 6月1日，J.D. Power發布的《2023年中國新能源汽車新車質量研究報告》中，蔚來ES6連續第四年奪得高端純電動汽車細分市場第一名。同樣在 J.D. Power 評估新能源汽車性能、執行力和佈局的 2023 年 NEV-IQ 研究中，蔚來 ET7 在高端純電動汽車中排名第一。

We plan to launch the NIO ET5 Touring on June 15 and start delivery in the same month. As the world's first smart electric tourer, the ET5 Touring is designed to cover diversified scenarios for both individual and family users, significantly improving our competitiveness in the premium family vehicle market.

我們計劃於6月15日推出NIO ET5 Touring，並於同月開始交付。作為全球首款智能電動旅行車，ET5旅行車旨在覆蓋個人和家庭用戶的多元化場景，顯著提升我們在高端家用車市場的競爭力。

Besides NIO's flagship SUVs, the All-New ES8 will also commence delivery in the near term. The new EC6, our second-generation, mid-size smart coupe SUV will be launched and delivered in the third quarter. As we proceed with product platform transition, NIO's complete NT 2.0 lineup, featuring eight different products will form a combined force to better cater to the diverse needs in the premium smart EV market and provide users with more experiences beyond expectations.

除了蔚來旗艦SUV之外，全新ES8也將於近期開始交付。我們的第二代中型智能轎跑SUV新款EC6將於第三季度上市交付。隨著產品平台轉型的推進，蔚來NT 2.0完整陣容，包括8款不同的產品，將形成合力，更好地滿足高端智能電動汽車市場的多樣化需求，為用戶提供更多超出預期的體驗。

In June, NIO's smart system, Banyan, will be upgraded to version 2.0. This release includes over 120 new features and enhancements. By connecting NIO's products, services and the community in a more seamless way, Banyan 2.0 will deliver a one-of-a-kind digital experience.

6月，蔚來智能係統榕樹將升級至2.0版本。此版本包含 120 多項新功能和增強功能。通過以更無縫的方式連接蔚來的產品、服務和社區，榕樹 2.0 將提供獨一無二的數字體驗。

It is particularly worth mentioning that Banyan 2.0 provides a new feature, that is automatic planning of charging and swapping routes. Enabled by NIO Power cloud and a comprehensive power infrastructure, it can let users plan for charging and swapping along the navigation route for long-distance trips with just one tap.

特別值得一提的是，Banyan 2.0提供了一個新功能，那就是自動規劃充換電路線。借助NIO Power雲和完善的電力基礎設施，用戶只需輕輕一按即可沿著導航路線規劃充換電，實現長途出行。

In terms of intelligent driving, NIO has released Navigate on Pilot Plus Beta, or NOP+ Beta, to all NT 2.0 users. Based on inhouse-developed new intelligent driving technology and closed-loop data management, NOP+ Beta has made significant improvements in making users' journeys more reassuring, comfortable and efficient.

在智能駕駛方面，蔚來向所有NT 2.0用戶發布了Navigate on Pilot Plus Beta，即NOP+ Beta。 NOP+ Beta基於自主研發的新型智能駕駛技術和閉環數據管理，在讓用戶的出行更安心、舒適、高效方面做出了重大改進。

In Banyan 2.0, NOP+ will be using NIO's proprietary BEV model and occupancy network for perception, and the large language model trained with a largescale dataset for planning and control. The experience of NOP+ will be further enhanced.

在Banyan 2.0中，NOP+將使用蔚來專有的BEV模型和占用網絡進行感知，並使用大規模數據集訓練的大型語言模型進行規劃和控制。 NOP+的體驗將進一步提升。

In the meantime, we have started to test our power swap [palette] for highway at scale and will make it available for 40 power swap stations on highways, starting from the third quarter this year. This feature will be gradually rolled out to more power swap stations, with which users can enjoy more seamless navigate on power experience from point A to point B on highways.

與此同時，我們已開始大規模測試高速公路換電[調色板]，並將從今年第三季度開始為高速公路上的 40 個換電站提供該服務。該功能將逐步推廣到更多換電站，用戶可以在高速公路上從A點到B點享受更加無縫的換電體驗。

With respect to the sales and service networks, we now have 365 NIO Houses and NIO Spaces in 136 cities and 359 NIO service centers and NIO delivery centers in 196 cities.

在銷售和服務網絡方面，我們目前在136個城市擁有365個蔚來之家和蔚來空間，在196個城市擁有359個蔚來服務中心和蔚來交付中心。

In terms of the charging and swapping network, on April 13, the first batch of NIO Power Swap Station 3.0 started operation. The Power Swap Station 3.0 features the synchronization of three operating positions, making it faster than the previous generation with higher service capacity and more intelligent experience.

充換電網絡方面，4月13日，首批蔚來換電站3.0開始運營。換電站3.0具有三個操作位置同步的特點，比上一代速度更快，服務能力更高，體驗更智能。

So far, NIO has installed 1,474 swap stations worldwide, including 119 third-generation power swap stations, and has completed over 23 million swaps for users. NIO has also installed 7,000 power charges and 8,800 destination chargers. In fact, our power map has also been connected to over 1.1 million third-party chargers globally.

截至目前，蔚來已在全球安裝了1474座換電站，其中第三代換電站119座，已為用戶完成超過2300萬次換電。蔚來還安裝了7,000個充電樁和8,800個目的地充電器。事實上，我們的電量地圖也已連接全球超過110萬個第三方充電器。

On April 17, NIO's first 500-kilowatt power chargers went online, completing the new generation of power-up stations, which is an integrated station featuring 500-kilowatt power chargers and the Power Swap Station 3.0. Through efficient coordination between chargers and the swap stations and flexible capacity distribution, the power chargers can operate more stably and efficiently.

4月17日，蔚來首台500千瓦充電樁上線，完成新一代充電站，這是一個集500千瓦充電樁和換電站3.0為一體的綜合站。通過充電樁與換電站的高效協調和靈活的容量分配，充電樁可以更加穩定、高效地運行。

On April 22, the first NIO User Council was established, after the NIO user council member election, which was actively participated by NIO users worldwide. This year, NIO Users Trust will continue their work centering on public welfare, user care and common growth.

4月22日，經過蔚來用戶理事會成員選舉，首屆蔚來用戶理事會成立，全球蔚來用戶積極參與。今年，蔚來用戶信託將繼續圍繞公益、關愛用戶、共同成長開展工作。

On March 26, further deepening our partnership with World Wide Fund for Nature, WWF, NIO announced to join the science-based target initiative and the plan to set a science-based target within the next two years, with the goal of contributing to global sustainable development and leading up to the blue-sky commitment.

3月26日，為進一步深化與世界自然基金會、WWF的合作，蔚來汽車宣布加入科學目標倡議，併計劃在未來兩年內製定科學目標，旨在為全球環境保護做出貢獻。可持續發展，實現藍天承諾。

In the face of the changing market situation, we will timely adjust ourselves and the marketing priorities to ensure the market competitiveness of our products and services. In the second half of 2023, with the entire NT 2.0 product lineup entering the premium battery electric vehicle market, and 1,000 new Power Swap stations put into operation, NIO's product competitiveness, powered by our decisive efforts into developing full-stack R&D capabilities and core technologies of smart EVs will be gradually unleashed, which in turn can better prepare us for the increasingly intensive buying competition at the next stage.

面對不斷變化的市場形勢，我們將及時調整自身和營銷重點，確保產品和服務的市場競爭力。 2023年下半年，隨著NT 2.0全系列產品進軍高端純電動汽車市場，以及1000座新換電站投入運營，蔚來全棧研發能力和核心競爭力將得到提升。智能電動汽車的技術將逐步釋放出來，從而更好地應對下一階段日益激烈的購買競爭。

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 first quarter. Over to you, Steven.

一如既往，感謝您的支持。現在，我將把電話轉給史蒂文，以提供第一季度的財務詳細信息。交給你了，史蒂文。

Thank you, William. I will now go over our key financial results for the first quarter of 2023. To be mindful of the length of this call, I will reference RMB only in my discussion today. I will 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 2023 年第一季度的主要財務業績。考慮到本次電話會議的篇幅，我將在今天的討論中僅提及人民幣。我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 the first quarter were RMB10.7 billion, representing an increase of 7.7% year over year and a decrease of 33.5% quarter over quarter.

一季度總收入為人民幣107億元，同比增長7.7%，環比下降33.5%。

Our total revenues are made up of two parts - vehicle sales and other sales. Vehicle sales in the first quarter were RMB9.2 billion, representing a decrease of 0.2% year over year and a decrease of 37.5% quarter over quarter. The decrease in vehicle sales year over year was mainly due to lower average selling price and the result of a higher proportion of ET5 and 75-kilowatt hour standard-range battery pack deliveries, partially offset by increase in delivery volume.

我們的總收入由兩部分組成——車輛銷售和其他銷售。一季度汽車銷量92億元，同比下降0.2%，環比下降37.5%。汽車銷量同比下降的主要原因是平均售價下降以及ET5和75千瓦時標準續航里程電池組交付比例較高，但部分被交付量的增加所抵消。

The decrease in vehicle sales quarter over quarter was mainly due to a decrease in delivery volume and lower average selling price, as a result of higher proportion of ET5 and 75-kilowatt hour standard-range battery pack deliveries.

整車銷量環比下降的主要原因是ET5和75千瓦時標準續航里程電池組交付比例較高，導致交付量減少和平均售價下降。

Other sales in the first quarter were RMB1.5 billion, representing an increase of 117.8% year over year, an increase of 11.3% quarter over quarter. The increase in other sales year over year was mainly due to the increase in sales of accessories, provision of repair and maintenance services, provision of auto financing services, sales of used cars and provision of power solutions, as a result of continued growth of our users.

一季度其他銷售額為人民幣15億元，同比增長117.8%，環比增長11.3%。其他銷售額同比增長主要是由於我們的業務持續增長，配件銷售、提供維修保養服務、提供汽車金融服務、銷售二手車以及提供動力解決方案增加所致。用戶。

The increase in other sales quarter over quarter was mainly due to the increase in provision of auto financing services, sales of accessories, provision of repair and maintenance services, provision of power solutions and sales of used cars, as a result of continued growth of our users and partially offset by a decrease in revenue from rendering of research and development services.

其他銷售額環比增長主要是由於我們的業務持續增長，導致提供汽車金融服務、銷售配件、提供維修保養服務、提供動力解決方案以及二手車銷售增加。用戶的減少，部分被提供研發服務的收入減少所抵消。

Gross margin in the first quarter of 2023 was 1.5%, compared with 14.6% in the first quarter of 2022 and 3.9% in the fourth quarter of 2022. The decrease in gross margin year over year and quarter over quarter was mainly attributed to the decreased vehicle margin.

2023年第一季度毛利率為1.5%，而2022年第一季度毛利率為14.6%，2022年第四季度毛利率為3.9%。毛利率同比和環比下降主要是由於車輛保證金。

More specifically, vehicle margin in the first quarter was 5.1%, compared with 18.1% in the first quarter of 2022 and 6.8% in the fourth quarter of 2022. The decrease in vehicle margin year over year was mainly attributed to changes in product mix and increased battery cost per unit. The decrease in vehicle margin quarter over quarter was mainly due to changes in product mix and increased promotion discount for the previous generations of ES8, ES6 and EC6, which were partially offset by the inventory provisions, accelerated depreciation on production facilities and losses on purchase commitments for the previous generation of ES8, ES6 and EC6 in the fourth quarter of 2022.

更具體地說，第一季度整車利潤率為5.1%，而2022年第一季度為18.1%，2022年第四季度為6.8%。整車利潤率同比下降主要歸因於產品結構的變化和每單位電池成本增加。整車利潤率環比下降主要是由於產品結構變化以及前幾代ES8、ES6和EC6的促銷折扣增加，但部分被庫存撥備、生產設施加速折舊和採購承諾損失所抵消上一代 ES8、ES6 和 EC6 將於 2022 年第四季度上市。

R&D expenses in the first quarter were RMB3.1 billion, representing an increase of 74.6% year over year, a decrease of 22.7% quarter over quarter. The increase in research and development expenses year over year was mainly attributed to increased personnel costs in research and development functions and the increased share-based compensation expenses recognized in the first quarter of 2023. The decrease in research and development expenses quarter over quarter reflected fluctuations due to different design and development stages of new products and technologies.

一季度研發費用為31億元，同比增長74.6%，環比下降22.7%。研發費用同比增加主要是由於研發職能人員成本增加以及2023年第一季度確認的股權激勵費用增加所致。研發費用環比下降反映了波動由於新產品、新技術的設計和開發階段不同。

SG&A expenses in the first quarter were RMB2.4 billion, representing an increase of 21.4% quarter over quarter, a decrease of 30.7% quarter over quarter. The increase in SG&A expenses year over year was primarily due to the increase in personnel costs related to sales and general corporate functions and increase in expenses related to the Company's sales and service network expansion. The decrease in SG&A expenses quarter over quarter was mainly due to the decrease in sales and marketing activities and professional services.

第一季度銷售管理費用為人民幣24億元，環比增長21.4%，環比下降30.7%。 SG&A費用同比增加主要是由於與銷售和一般公司職能相關的人員成本增加以及與公司銷售和服務網絡擴張相關的費用增加。 SG&A 費用環比下降主要是由於銷售和營銷活動以及專業服務的減少。

Loss from operations in the first quarter was RMB5.1 billion, representing an increase of 133.6% year over year, a decrease of 24.1% quarter over quarter. Net loss in the first quarter was RMB4.7 billion, representing an increase of 165.9% year over year and a decrease of 18.1% quarter over quarter. Net loss attributable to NIO's ordinary shareholders in the first quarter RMB4.8 billion, representing an increase of 163.2% year over year, a decrease of 17.8% quarter over quarter.

一季度經營虧損51億元，同比增長133.6%，環比下降24.1%。一季度淨虧損47億元，同比增長165.9%，環比下降18.1%。一季度歸屬於蔚來普通股股東的淨虧損48億元，同比增長163.2%，環比下降17.8%。

Our balance of cash and cash equivalents, restricted cash, short-term investment and long-term deposits was RMB37.8 billion as of 31 March 2023.

截至2023年3月31日，我們的現金及現金等價物、受限制現金、短期投資和長期存款餘額為人民幣378億元。

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

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

Thank you. If you wish to ask a question, please press star-one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star-two. If you are on a speakerphone, please pick up the handset to ask your question. For the benefit of all participants on today's call, please limit yourself to two questions and if you have got more questions, you can reenter the queue.

謝謝。如果您想提問，請按電話上的星號一，然後等待宣布您的名字。如果您想取消請求，請按二號星。如果您使用免提電話，請拿起聽筒提問。為了今天電話會議所有參與者的利益，請限制自己提出兩個問題，如果您還有更多問題，可以重新加入隊列。

Your first question comes from Tim Hsiao from Morgan Stanley. Please go ahead.

你的第一個問題來自摩根士丹利的 Tim Hsiao。請繼續。

(Spoken in Mandarin). My first question is about what are your cost controls because NIO has been investing more aggressively since 2021 on new models, sales and marketing and energy replenishment network. So in light of the challenge in the industry and the ma cro outlook, will NIO consider streamlining the model portfolio and cutting back on investment in some projects, like smartphone, battery, chipset and refocus resources on a few flagship models? Separately, does NIO still stick to its original schedule to launch a mass-market brand, ALPS, next year? So that's my first question, thank you.

（以普通話發言）。我的第一個問題是你的成本控制是什麼，因為自 2021 年以來蔚來一直在新車型、銷售和營銷以及能源補充網絡上更加積極地投資。那麼，面對行業挑戰和宏觀前景，蔚來是否會考慮精簡車型組合，削減智能手機、電池、芯片等部分項目的投資，將資源重新集中到幾款旗艦車型上？另外，蔚來明年是否仍會按照原計劃推出大眾品牌ALPS？這是我的第一個問題，謝謝。

(Interpreted) Thank you, Tim, for your question. As you have mentioned, the market competition is intensifying and we do face a lot of changes in the market dynamics. For the NIO technology platform 2.0, we are about to show the whole lineup of the eight products based on the NT2.0 and this eight products will enter the market in the near term gradually.

（翻譯）蒂姆，謝謝你的提問。正如您提到的，市場競爭正在加劇，我們確實面臨著很多市場動態的變化。對於蔚來技術平台2.0，我們即將展示基於NT2.0的八款產品的全陣容，這八款產品將在近期逐步進入市場。

The kind of focus for us is to make sure we have the new organization structure to have a more targeted sales strategy and marketing strategy for all the eight products to reach its own target user groups. Because when we design those products, we do have specific positioning of the different products in their specific segment and target group. So the kind of challenge for us is to make sure the marketing and the sales teams can be more dedicated on these eight products in terms of showroom layout and the product reach and the marketing reach and the distribution of the resources as the sales and marketing teams.

我們的重點是確保我們擁有新的組織結構，為所有八個產品製定更有針對性的銷售策略和營銷策略，以達到自己的目標用戶群體。因為當我們設計這些產品時，我們確實對不同產品在其特定細分市場和目標群體中的特定定位。因此，我們面臨的挑戰是確保營銷和銷售團隊能夠在展廳佈局、產品範圍、營銷範圍以及銷售和營銷團隊的資源分配方面更加專注於這八種產品。 。

We want to make sure for each product we have a dedicated team to take responsibilities in terms of the sales and marketing efforts. Of course, for those key products we will put more resources to make sure we can reach much better sales performance. But just like I mentioned, the focus for us now is to make sure we can have more dedicated resources for the eight products separately and to make sure they can achieve a good market share in terms of their specific segment.

我們希望確保每個產品都有一個專門的團隊來負責銷售和營銷工作。當然，對於那些重點產品，我們會投入更多的資源，以確保我們能夠取得更好的銷售業績。但就像我提到的，我們現在的重點是確保我們能夠為這八個產品分別擁有更多的專用資源，並確保它們能夠在其特定細分市場中獲得良好的市場份額。

Of course, we need to be more agile in terms of challenges of the changing market situation to ensure our competitiveness in terms of the products and the services. Regarding the topics of the R&D projects, overall speaking we would like to insist on offering big directions in terms of the R&D projects.

當然，我們需要更加靈活地應對不斷變化的市場形勢的挑戰，以確保我們在產品和服務方面的競爭力。關於研發項目的議題，總體來說我們會堅持在研發項目方面提供大的方向。

In the short term, yes, we do have some pressures but we think it's really important and necessary for us to focus on those R&D capability building to build our long-term competitiveness. But at the same time, based on other resources and the priorities of the Company, we can adjust the pace of the investment for all those different R&D projects.

是的，短期內我們確實面臨一些壓力，但我們認為專注於研發能力建設以建立我們的長期競爭力非常重要且必要。但同時，根據其他資源和公司的優先事項，我們可以調整所有不同研發項目的投資節奏。

For the question regarding ALPS project, our timing for ALPS brand is still the same, that is the second half of 2024, where we plan to launch the ALPS product at that time and we will choose the specific timings for those different products. However, at the same time, we want to make sure for the ALPS products that we can have a much faster pace in terms of the go-to market, because this can help us to improve the efficiency and have much better planning of the resources, especially at the marketing and sales front.

對於ALPS項目的問題，我們對ALPS品牌的時間安排還是一樣的，就是2024年下半年，我們計劃在那個時候推出ALPS產品，不同的產品我們會選擇具體的時間安排。但與此同時，我們希望確保ALPS產品在進入市場方面能夠有更快的節奏，因為這可以幫助我們提高效率並更好地規劃資源，特別是在營銷和銷售方面。

(Spoken in Mandarin) My second question is about the new ES6. The second quarter guidance came in stronger than market expectation which (inaudible) 3,000 to 4,000 units of additional sales of the new ES6. So could you share a little bit more about the order intake of the new ES6 since its launch to date and if there are any bottlenecks to the delivery of the new ES6.

（普通話）我的第二個問題是關於新ES6的。第二季度指引強於市場預期，即新 ES6 的銷量增加 3,000 至 4,000 輛（聽不清）。那麼您能否詳細分享一下新ES6自上市以來的訂單量以及新ES6的交付是否存在瓶頸。

In the meantime, are you still expecting the sales update of ET5, ES6 and the upcoming ET5 Touring to achieve 20,000 per month? When do we expect to achieve that (inaudible) target? So that's my second question, thank you.

與此同時，你還期待ET5、ES6以及即將上市的ET5 Touring的銷量更新達到每月2萬輛嗎？我們預計什麼時候實現該（聽不清）目標？這是我的第二個問題，謝謝。

(Interpreted) Thank you, Tim. ES6 is very well received by the users and also received very good feedback in the media. We think the auto performance has reached our expectations and the test drive conversion rate of the ES6 actually reached a record high in the history of NIO. So that's why we're very confident in terms of the sales performance of ES6.

（翻譯）謝謝你，蒂姆。 ES6深受用戶好評，在媒體上也得到了很好的反饋。我們認為汽車性能達到了我們的預期，ES6的試駕轉化率實際上達到了蔚來歷史上的新高。所以我們對ES6的銷量表現非常有信心。

At this stage, especially in June, we need to focus on the ramp up of the ES6 first. But for the target in July is we want to achieve 10,000 units in terms of the production and delivery. We're very confident to achieve this target in July and the supply chain team, manufacturing team and other teams are making all sorts of preparations to make sure we can achieve this objective.

現階段，尤其是6月份，我們首先需要關注ES6的爬坡。但7月份的目標是產量和交付量要達到10,000台。我們非常有信心在7月份實現這個目標，供應鏈團隊、製造團隊和其他團隊正在做各種準備以確保我們能夠實現這個目標。

Regarding the ET5, ET5 Touring and ES6 overall volume, we believe that there is an opportunity for us to still achieve 20,000 units in one month. The big challenge for us right now is more about the ET5, because if we look at the ET5's pricing we can see that last year we still had around RMB12,000 subsidies for the users. At the same time, users could get the home chargers free of charge last year, but now users will need to pay for the home chargers for the ET5.

對於ET5、ET5 Touring和ES6的整體銷量，我們認為一個月內還是有機會達到2萬輛的。現在我們面臨的最大挑戰更多是關於ET5，因為如果我們看ET5的定價，我們可以看到去年我們仍然為用戶提供了12,000元左右的補貼。同時，去年用戶可以免費獲得家用充電器，但現在用戶需要為ET5支付家用充電器費用。

So net-net speaking, probably for the ET5, if we make the apple-to-apple comparison, it's probably RMB20,000 more expensive this year. This is the fact and the challenge we need to face, but what we need to focus on is to make sure we can find a better way to expand the user needs and demands.

所以淨淨來說，可能ET5，如果我們進行蘋果之間的比較的話，今年可能會貴2萬人民幣。這是事實，也是我們需要面對的挑戰，但我們需要關注的是確保我們能夠找到更好的方式來擴大用戶的需求和訴求。

The more -- the challenge we are facing right now is about the ET5, but just like I mentioned we're going to launch the ET5 Touring on 15 June. This is going to help us to improve overall product competitiveness, because we believe the ET5 Touring can cater to the diversified needs of individuals and family users and this can help us to boost our product competitiveness in this specific market segment.

更多 - 我們現在面臨的挑戰是關於 ET5，但就像我提到的，我們將於 6 月 15 日推出 ET5 Touring。這將有助於我們提高整體產品競爭力，因為我們相信ET5旅行車能夠滿足個人和家庭用戶的多樣化需求，這有助於我們提高在這個特定細分市場的產品競爭力。

Thank you.

謝謝。

Thank you, your next question comes from Bin Wang from Credit Suisse. Please go ahead.

謝謝，您的下一個問題來自瑞士信貸銀行的王斌。請繼續。

Thank you, I've got two questions. Number 1 is about the margin outlook. We reached the [10k] demand for ES6 in the third quarter, so what is the gross margin expectation we can have for the third quarter, second half? That is the number 1 question about gross margin guidance. (Spoken in Mandarin).

謝謝，我有兩個問題。第一個是關於利潤前景。我們在第三季度達到了 ES6 的[10k]需求，那麼我們對第三季度、下半年的毛利率預期是多少？這是關於毛利率指導的第一個問題。 （以普通話發言）。

Hi Bin, this is Stanley. As William mentioned, with the delivery of our NT2 product with higher price from Q2 to Q3, the average selling price and gross profit margin per car will recover. So we are confident that the gross profit margin will start to recover to double digits in Q3 and over 15% in Q4. Thank you.

嗨，賓，我是斯坦利。正如William提到的，隨著我們的NT2產品從第二季度到第三季度以更高的價格交付，每輛車的平均售價和毛利率將會恢復。因此我們有信心第三季度毛利率將開始恢復到兩位數，第四季度毛利率將恢復到15%以上。謝謝。

Okay, great. My second question is are there any further R&D demands needed, because people worry about your net cash position which has declined quite fast. So can you provide a update about your potential fundraising? Especially on your China IPO. (Spoken in Mandarin)

好的，太好了。我的第二個問題是是否需要進一步的研發需求，因為人們擔心你的淨現金頭寸下降得很快。那麼您能否提供有關潛在籌款的最新信息？尤其是在中國首次公開募股。 （以普通話發言）

(Interpreted) Thank you, Bin, for your question. Yes, for this year, if we look at the first quarter and the second quarter, because of the delivery performance, which is actually less than that of the fourth quarter last year, so this has affected our operating cash flow. But together with our delivery volume ramp up in the third quarter, we believe that operating cash flow will also improve.

（翻譯）謝謝斌的提問。是的，今年，如果我們看第一季度和第二季度，因為交付表現實際上比去年第四季度要少，所以這影響了我們的經營現金流。但隨著第三季度交付量的增加，我們相信經營現金流也會改善。

Currently we believe our cash is sufficient to support the Company's business development. As a public listed company, we make very prudent management of our cash position and at the same time, we do have all the different channels to do the fundraising in different markets.

目前我們相信我們的現金足以支持公司的業務發展。作為一家上市公司，我們對現金狀況進行非常審慎的管理，同時，我們確實擁有各種不同的渠道在不同的市場進行融資。

But this year we have made some adjustments in terms of our cash spending. For example, we have delayed our CapEx investment and we have also delayed some R&D projects. At the same time, in terms of global market expansion, we believe it is more important for us to focus on the markets we have already entered. For example, for those countries we have already entered in Europe. So if we have any kind of plans in the capital markets, we will of course let everyone know.

但今年我們在現金支出方面做了一些調整。例如，我們推遲了資本支出投資，還推遲了一些研發項目。同時，在全球市場拓展方面，我們認為更重要的是專注於我們已經進入的市場。比如我們已經進入歐洲的那些國家。所以如果我們在資本市場有什麼計劃，我們當然會讓大家知道。

Thank you.

謝謝。

Thank you. Your next question comes from Ming-Hsun Lee from USA. Thank you, please go ahead.

謝謝。你們的下一個問題來自美國的 Ming-Hsun Lee。謝謝，請繼續。

Thank you, William and Steven. I also have two questions. My first question is what is the battery price decline in first quarter and how much does the battery price help gross margin in the first quarter? Could you also comment on the second quarter and third quarter's battery price trend? That's my first question, thank you.

謝謝你們，威廉和史蒂文。我還有兩個問題。我的第一個問題是第一季度電池價格下降是多少？電池價格對第一季度毛利率有多大幫助？您能否評論一下第二季度和第三季度的電池價格走勢？這是我的第一個問題，謝謝。

Hi Ming. Generally, the price of lithium carbonate differs a little bit from Q1, so this leads to a certain increase of our gross profit margin. Regarding amount-wise, I think the RMB2,500 per car, but recently I think we can also see the lithium carbonate price also recover a little bit to RMB310,000 per ton. So when (inaudible) change of lithium price will bring uncertainty to our gross profit margin. That's generally the impact of lithium.

嗨，明。一般來說，碳酸鋰的價格與第一季度略有不同，因此這導致我們的毛利率有一定的增加。從金額上看，我認為是2500元/車，但最近我認為我們也可以看到碳酸鋰的價格也有所回升，達到31萬元/噸。因此，鋰價格何時（聽不清）變化會給我們的毛利率帶來不確定性。這通常是鋰的影響。

Thank you, Stanley. My question is regarding your latest CapEx and operating expense guidance because I think William just mentioned that you are starting to control some investment, especially for some long-term investment. But are you able to give some new guidance, if there is any? I remember last year the CapEx is around RMB10 billion, so I want to know your guidance for this year for CapEx and OpEx. Thank you.

謝謝你，斯坦利。我的問題是關於你們最新的資本支出和運營費用指導，因為我認為威廉剛剛提到你們開始控制一些投資，特別是一些長期投資。但您能否提供一些新的指導（如果有的話）？我記得去年的資本支出大約是100億元人民幣，所以我想知道你們今年對資本支出和運營支出的指導。謝謝。

Yes, Ming. Our tenants will still concentrate on the construction of power source stations, charging network, [service] network and also tooling and production facilities for our new models. We will well control the cadence of those investments, but at this moment I don't think we can give clear guidance of CapEx investment for this year. We will make a judgement dynamically in line with the spending and also the status.

是的，明。我們的租戶仍將專注於我們新車型的電源站、充電網絡、[服務]網絡以及工裝和生產設施的建設。我們會很好地控制這些投資的節奏，但目前我認為我們無法對今年的資本支出投資給出明確的指導。我們會根據支出和狀態動態做出判斷。

Also the guidance on operating expense, sorry.

還有營業費用的指導，抱歉。

Okay, regarding operating expense, one is for the R&D expense. The upcoming years remains to be the crucial stage for our R&D and also mass production of our core technology and new models. So our average each quarter of 2023 the non-GAAP R&D expense will be kept at RMB3 billion to RMB3.5 billion per quarter. Yes, we will also manage the spending curve and also keep improving our system efficiency.

好吧，說到運營費用，一是研發費用。未來幾年仍然是我們核心技術和新車型研發和量產的關鍵階段。因此，我們 2023 年每個季度的平均非 GAAP 研發費用將保持在每季度 30 億元至 35 億元人民幣。是的，我們還將管理支出曲線並不斷提高我們的系統效率。

For SG&A expense, we can see a decline in Q1. The main reason is because the reduced marketing activities and also seasonality impact of Chinese New Year along with more marketing events like auto show, road show and also launch of new motors. The SG&A total amount will increase from Q2, but the efficiency will be improved from Q3 since our NT2 products will be launched and more revenue will be realized. [Inaudible] that's the guidance for OpEx of next quarters.

對於 SG&A 費用，我們可以看到第一季度有所下降。主要原因是營銷活動減少以及農曆新年的季節性影響，以及車展、路演和新汽車發布等營銷活動增多。 SG&A 總額將比第二季度有所增加，但效率將比第三季度有所提高，因為我們的 NT2 產品將推出，並且將實現更多收入。 [聽不清] 這是下幾個季度運營支出的指導。

Yes, thank you, Stanley. Thank you.

是的，謝謝你，斯坦利。謝謝。

Thank you, Ming.

謝謝你，明。

Hi, operator. Next question, please.

你好，接線員。請下一個問題。

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

謝謝。你的下一個問題來自匯豐銀行的丁宇謙。請繼續。

(Spoken in Mandarin).

（以普通話發言）。

Yes, go ahead.

好，去吧。

I'm sorry.

對不起。

Yes, please.

是的，請。

Yes, sorry. (Spoken in Mandarin). I've got two questions. The first is do we have plan to introduce any budget version of our existing model, especially the potential volume carrier ET5, but lower price and lower content to access more volume?

是的，抱歉。 （以普通話發言）。我有兩個問題。第一個問題是，我們是否計劃推出現有型號的任何預算版本，特別是潛在的批量運營商 ET5，但要降低價格和內容以獲取更多銷量？

The same question, we're talking about the dial down a little on OpEx burn. Generally, does that also affect or postpone our breakeven point of the year?

同樣的問題，我們正在討論減少運營支出消耗。一般來說，這是否也會影響或推遲我們今年的盈虧平衡點？

(Interpreted) Thank you, Yuqian, for your question. We understand that there are many different kind of pricing movements in the market. But for us, regarding ET5, we don't think it's reasonable for us to have a budget version of the ET5, because our philosophy is that we believe the different configurations or the important configurations should come as a standard for all of our NT2 products. For example, the dual motor, [AD switch] and other important functions and features.

（翻譯）謝謝于謙的提問。我們了解市場上有許多不同類型的定價變動。但對於我們來說，關於ET5，我們認為我們擁有預算版的ET5是不合理的，因為我們的理念是我們相信不同的配置或重要的配置應該作為我們所有NT2產品的標準。比如雙電機、【AD切換】等重要的功能和特性。

We believe those standard package philosophy can serve the long-term interests of our users. But at the same time, we do have some flexibilities in many other different approaches, for example user rights such as the free battery swapping.

我們相信這些標準包理念可以服務於我們用戶的長期利益。但與此同時，我們在許多其他不同方法中確實擁有一些靈活性，例如免費電池更換等用戶權利。

When we make those kind of considerations and adjustment, of course, the important thing is to make sure we can put the users' interest first. When we decide to make those kind of adjustment, we also need to consider the interest of our installed base.

當然，我們在做這樣的考慮和調整時，最重要的是要保證把用戶的利益放在第一位。當我們決定進行此類調整時，我們還需要考慮已安裝基礎的利益。

For the second question regarding the breakeven point, according to the current situation, we do think probably we need to delay our breakeven point to within one year. We think this is probably a reasonable assumption.

關於第二個問題，關於盈虧平衡點，根據目前的情況，我們確實認為我們可能需要將盈虧平衡點推遲到一年之內。我們認為這可能是一個合理的假設。

Thank you, Yuqian.

謝謝你，于謙。

Thank you. Your next question comes from Nick Lai from JP Morgan. Please go ahead.

謝謝。您的下一個問題來自摩根大通的 Nick Lai。請繼續。

(Spoken in Mandarin). My first question is really following up the previous question regarding cash burn and CapEx cycle and so on. [You] just mentioned that you'll push back the RMB spend and so on. I'm more curious about our 2024 and 2025 planning. How should we expect the CapEx or cash burn in 2024 and '25? Would that be flat or up or down compared with 2023? Thank you.

（以普通話發言）。我的第一個問題實際上是在跟進上一個有關現金消耗和資本支出週期等問題。剛才提到要推遲人民幣支出等等。我更好奇我們2024年和2025年的規劃。我們應該如何預期 2024 年和 25 年的資本支出或現金消耗？與 2023 年相比，會持平、上升還是下降？謝謝。

(Interpreted) Thank you for your question, Nick. Regarding the dynamic and the forward market expectation, we understand it's important for us to control the risk and keep the stable and sound business operations. For the ALPS brand, basically the project is moving forward according to our plan.

（翻譯）謝謝你的問題，尼克。對於市場的動態和未來預期，我們深知控制風險、保持業務平穩健康運行非常重要。對於ALPS品牌來說，基本上這個項目是按照我們的計劃進行的。

For the production side, we believe the current production capacity is sufficient to support the needs of NIO brand and ALPS brand. It means that, in terms of production facilities and capacities, there's no need for big CapEx investment.

對於生產方面，我們認為目前的產能足以支持蔚來品牌和阿爾卑斯品牌的需求。這意味著，就生產設施和產能而言，無需進行大量資本支出投資。

In the market front, we believe, starting from this year, we should have sufficient power swap stations to support both brands to share the power swap stations.

在市場方面，我們認為從今年開始，我們應該有足夠的換電站來支持兩個品牌共享換電站。

Previously we mentioned that probably for the go-to-market of ALPS brand we do need to make some investment in terms of CapEx and OpEx. But we would like to control the pace of the go-to-market cadence to make sure we can have much faster movement and cadence and have a much agile mode to operate the go-to-market of the ALPS brand. This can help us to save the resources and the capital.

之前我們提到，為了將 ALPS 品牌推向市場，我們確實需要在資本支出和運營支出方面進行一些投資。但我們希望控制上市節奏，以確保我們能夠有更快的動作和節奏，並擁有更靈活的模式來運營 ALPS 品牌的上市。這可以幫助我們節省資源和資金。

In terms of the cash management, of course, as a publicly listed company, we need to be very prudent in terms of the cash management. For the financing channels, we do have different channels in terms of the RMB and US dollar capital markets. For us we think cash is not going to be a big issue for the Company, but at the same time, we still need to make a refined management of our cash and also the working capital of the Company.

在現金管理方面，當然，作為一家上市公司，我們在現金管理方面需要非常謹慎。在融資渠道上，我們在人民幣和美元資本市場上確實有不同的渠道。對我們來說，我們認為現金對公司來說不會是一個大問題，但同時我們仍然需要對我們的現金以及公司的營運資金進行精細化管理。

(Spoken in Mandarin). My second question is really simple, really about the product mix, yes. The new product ALPS is going to account for a meaningful portion of the volume and how should we think about the conditions [on this for margin]? How should we think about the product mix going forward? Thanks.

（以普通話發言）。我的第二個問題非常簡單，實際上是關於產品組合的，是的。新產品 ALPS 將佔據銷量的很大一部分，我們應該如何考慮[關於利潤的]條件？我們應該如何考慮未來的產品組合？謝謝。

Hi, Nick. Regarding the volume percentage of ET5, ET5 Touring (inaudible) and ET6 I think from a long run, the percentage will be 80% around. Yes. From the long run, as I mentioned earlier, this year I think with all the NT2 product launched, our gross profit margin can recover to 15%. Long term, considering the cost advantage brought by the in-house technology capability and also the innovative supply chain development, the NT2 product gross profit margin target will still be 20% from the long run. Yes. Thank you.

嗨，尼克。關於ET5、ET5 Touring（聽不清）和ET6的銷量比例我認為從長遠來看，比例會在80%左右。是的。從長遠來看，正如我之前提到的，今年我認為隨著NT2產品全部推出，我們的毛利率可以恢復到15%。長期來看，考慮到自主技術能力帶來的成本優勢以及創新的供應鏈發展，NT2產品長期毛利率目標仍為20%。是的。謝謝。

(Spoken in Mandarin).

（以普通話發言）。

Thank you. Your next question comes from Paul Gong from UBS. Please go ahead.

謝謝。您的下一個問題來自瑞銀集團的 Paul Kong。請繼續。

(Spoken in Mandarin). My first question is regarding the new models' sales trends. It seems that a few recent new models all shared (inaudible) similarity with strong starts but after a few months, they subsequently declined. Does our ES6 also face such kind of, say, challenges or how should we avoid this happening again?

（以普通話發言）。我的第一個問題是關於新車型的銷售趨勢。似乎最近的一些新型號都具有（聽不清）相似性，並且起步強勁，但幾個月後，它們隨後下降了。我們的ES6是否也面臨這樣的挑戰，或者我們應該如何避免這種情況再次發生？

(Interpreted) Thank you, Paul, for your question. Last year we launched three products, ET7, ES7 and ET5. To be honest, in terms of the recent performance of these three products including the second quarter, we understand the market performance of these three products is lagging behind of our expectations.

（翻譯）謝謝保羅提出的問題。去年我們推出了三款產品，ET7、ES7和ET5。說實話，從這三款產品近期包括第二季度的表現來看，我們了解到這三款產品的市場表現落後於我們的預期。

If we look at the factors affecting the performance of these three products, just like I mentioned before, last year for the users who purchased those three products, they have more user rights and benefits and they can enjoy the national subsidies. But this year for the users purchasing these three products, apple-to-apple comparison, the cost increase is around RMB10,000 to RMB20,000.

如果我們看影響這三款產品性能的因素，就像我之前提到的，去年購買這三款產品的用戶，他們有更多的用戶權益，可以享受國家補貼。但今年對於購買這三款產品的用戶來說，對比起來，成本增加的幅度在1萬到2萬元左右。

At the same time, if we look at the macro environment, we can see the market competition is also getting intensified, so some users are choosing probably some other new brands or some traditional brands of our products. This is one factor.

同時，如果我們從宏觀環境來看，我們可以看到市場競爭也在加劇，所以一些用戶可能會選擇我們產品的其他一些新品牌或一些傳統品牌。這是因素之一。

Another factor is the internal cannibalization or competition. For example, some ES7 users, may decide to choose the ES6 instead of the ES7. Therefore, some ET5 users, probably they decided to wait a little bit for the ET5 Touring.

另一個因素是內部蠶食或競爭。例如，一些 ES7 用戶可能會決定選擇 ES6 而不是 ES7。因此，一些ET5用戶可能決定再等待一下ET5 Touring。

This is the situation that we are facing right now. That is why we decide that probably we are going to make some adjustment in the near term in terms of our sales channel and network as well as of our organization structure and of our sales and the marketing strategy and policies.

這就是我們現在面臨的情況。這就是為什麼我們決定短期內可能會對我們的銷售渠道和網絡、我們的組織結構以及我們的銷售和營銷策略和政策進行一些調整。

But for the five new products based on the new technology platform 2.0 that we launched this year, we do not have this concern. The first product we launched this year is the EC7. After the delivery of EC7, we can see the demand is actually quite stable. As for the ES6, just now I have mentioned that we are very confident about the sales performance of ES6 after the product ramp-up.

但對於我們今年推出的基於新技術平台2.0的五款新產品來說，我們沒有這個顧慮。我們今年推出的第一個產品是EC7。 EC7交付之後，我們可以看到需求其實是相當穩定的。至於ES6，剛才我也提到了，我們對ES6產品爬坡後的銷售表現非常有信心。

Then for this year, we are very confident of our (inaudible) for all the new products that we launched this year, including the ES8. We are about to start the delivery of the ES8 in the near term. Currently we can see that the reservation order performance is actually higher than our expectations.

那麼今年，我們對我們今年推出的所有新產品（包括ES8）非常有信心（聽不清）。我們即將在近期開始交付ES8。目前我們可以看到，預訂訂單表現實際上高於我們的預期。

We believe right now the current pace of our product quality and the product go-to-market is actually much better than before, so we believe these five new products based on the NT2 technology platform should be able to reach reasonable performance in terms of its delivery ramp-up.

我們認為目前我們的產品質量和產品上市的速度實際上比以前要好得多，所以我們相信這五款基於NT2技術平台的新產品應該能夠在其性能方面達到合理的表現。交付量增加。

Recently we have also launched the 2023 ET7. After the delivery of ET7, we believe it can also meet of expectations. The order performance is also quite stable.

最近我們還推出了2023款ET7。 ET7交付後，相信也能達到預期。訂單表現也相當穩定。

Thank you. (Spoken in Mandarin). So sorry, I forgot to translate. So, my second question is regarding the marginal outlook of the high-end NIO brand versus the low-end ALPS brand. NIO brand remains to be relatively expensive thanks to the branding and the excellent service Company has been offering but has yet to achieve a satisfactory or kind of like excellent margins. So, you are moving towards an ALPS to the relatively the lower end. How do you foresee the margin would be like especially compared to the high-end ones? Thank you.

謝謝。 （以普通話發言）。非常抱歉，我忘記翻譯了。因此，我的第二個問題是關於高端 NIO 品牌與低端 ALPS 品牌的邊際前景。由於品牌和公司提供的優質服務，蔚來品牌仍然相對昂貴，但尚未實現令人滿意或類似的出色利潤。所以，你正在向相對較低端的阿爾卑斯山邁進。您預計利潤率會如何，特別是與高端產品相比？謝謝。

William Bin Li: (Interpreted) Thank you for your questions. Regarding the brand positioning, I believe right now it's a very (inaudible) period for the brand positioning. For most of the users in a majority of the time, they choose a product based on the price. So, right now, in terms of our product, our service as well as of our technology and experience, we believe we are much better than others in those different areas. But the values of our product and services and the technologies are not reflected in the perceived value and the price of the products.

李斌：（翻譯）謝謝你的提問。關於品牌定位，我認為現在是品牌定位非常（聽不清）的時期。對於大多數用戶來說，大多數時候他們會根據價格來選擇產品。所以，現在，就我們的產品、我們的服務以及我們的技術和經驗而言，我們相信我們在這些不同領域比其他人要好得多。但我們的產品、服務和技術的價值並沒有體現在產品的感知價值和價格中。

This is the reality that we're facing right now but we're doing it for the long run. The value of our product and services will be recognized by the users and by the markets.

這是我們現在面臨的現實，但從長遠來看，我們正在這樣做。我們的產品和服務的價值將得到用戶和市場的認可。

At the same time, we do face some challenges in the macro environment, for example the lithium carbonate cost has significantly impacted our vehicle gross margin. Back in 2021, we have reached around 20% vehicle gross margin.

同時，我們確實面臨宏觀環境的一些挑戰，例如碳酸鋰成本對我們的整車毛利率產生了顯著影響。早在2021年，我們的汽車毛利率就達到了20%左右。

At that time, we believe if the lithium carbonate cost goes back to a reasonable level, we should still have a chance to reach 20% vehicle gross margin. In the long term, we believe in terms of the economies of scale and the efficiency improvement as well as the vertical integration of our core components and in-house R&D capabilities, there's a strong base for us to achieve a 20% vehicle gross margin. That's for NIO.

屆時，我們認為如果碳酸鋰成本回到合理水平，我們應該還有機會達到20%的整車毛利率。從長遠來看，我們相信從規模經濟和效率提升，以及核心零部件的垂直整合和內部研發能力來看，我們有堅實的基礎實現20%的整車毛利率。那是蔚來的。

But for ALPS, the strategy is very different because we believe that in terms of the vehicles gross margin is actually more about how you define the product and how we design the product. So, for ALPS, it's more about finding the best solution in the specific segment that the ALPS brand targets at.

但對於 ALPS 來說，策略非常不同，因為我們認為，就車輛毛利率而言，實際上更多的是你如何定義產品以及我們如何設計產品。因此，對於 ALPS 來說，更多的是在 ALPS 品牌所針對的特定細分市場中尋找最佳解決方案。

For us, if we look at the market, we see some companies that they sell the product at a price of around RMB200,000 but they can still achieve over 20% vehicle gross margin. So, it shows that this is achievable for NIO because we have many high-spec configurations in our products. For example, the over 1,000 top computing powers and all those smart features. It will be very difficult for us to lower the cost on those components, and this wow factor is in terms of lowering the price of our products.

對於我們來說，如果我們看市場，我們看到一些公司的產品售價在20萬元左右，但他們仍然可以實現20%以上的整車毛利率。所以這說明蔚來是可以實現的，因為我們的產品有很多高規格的配置。例如，超過1000個頂級計算能力和所有這些智能功能。我們很難降低這些組件的成本，而這個令人驚嘆的因素就是降低我們產品的價格。

But for ALPS is different. When we define our business products, of course, the target for us is to achieve reasonable vehicle gross margin and we believe it is reasonable and is possible for us to achieve the 20% vehicle gross margin.

但對於 ALPS 來說則不同。當然，我們在定義業務產品時，我們的目標是達到合理的車輛毛利率，我們認為達到20%的車輛毛利率是合理的，也是可能的。

Thank you so much, William, for your kind sharing. Thank you.

非常感謝威廉，您的善意分享。謝謝。

Thank you. Your next question comes from [Xing Chang] from CICC. Please go ahead.

謝謝。你的下一個問題來自中金公司的[Xing Chang]。請繼續。

(Spoken in Mandarin) My first question is about the NOP+. Our NOP+ beta version has been open for several months. So, can you share some users' data such as usage, time or accumulated mileage or the average takeover mileage during this period? How is their feedback? We can see the official version will be a charge for subscription. So, can you share more of your understanding of subscription charge?

（普通話）我的第一個問題是關於NOP+的。我們的 NOP+ 測試版已經開放幾個月了。那麼，您能否分享一些用戶在這段時間的使用情況、時間或累計里程或平均接管里程等數據？他們的反饋如何？我們可以看到正式版是收費訂閱的。那麼，您能分享一下您對訂閱費用的理解嗎？

Also, in the second half of this year, we can see that highway navigation function to swapping stations will be further launched. So what do we see of improvement of customers' experience with this new function?

另外，今年下半年，我們可以看到，高速公路換乘站導航功能將會進一步推出。那麼這個新功能對客戶體驗的改善有哪些呢？

The last one is, is there any time plan for our city (inaudible) function in the second half year?

最後一個是，下半年我們的城市（聽不清）功能有什麼時間規劃嗎？

(Interpreted) Thank you for your question. I will answer the NOP+ related question and Steven is going to address the question about the power swap stations.

（翻譯）謝謝你的提問。我將回答 NOP+ 相關問題，史蒂文將解決有關換電站的問題。

For the NOP+, right now we have over 50,000 users using the NOP+ services. For us, the accumulated mileage of the NOP+ is over 41 million kilometers, and every week the mileage is around 2 million kilometers.

對於NOP+，目前我們有超過50,000名用戶使用NOP+服務。對我們來說，NOP+的累計行駛里程超過4100萬公里，每周行駛里程在200萬公里左右。

We have already started the test of the NOP+ in the city scenarios and use cases. This year, we're going to accelerate the test of the NOP+ in the city use cases, or the urban use cases. When it gets ready, we will also release these features to the users. Based off our internal evaluation right now, we are very confident regarding the performance of the NOP+ in the urban scenarios.

我們已經開始了NOP+在城市場景和用例中的測試。今年，我們將加速NOP+在城市用例中的測試，或者說城市用例。準備就緒後，我們也會向用戶發布這些功能。根據我們目前的內部評估，我們對NOP+在城市場景中的表現非常有信心。

At the same time, regarding the NAD we're also doing some test and if, in the future, the regulations and the laws are in the right place for the NOP+ releases, then we will release the NAD for our users when the regulations is in the right place. We believe this is probably right now all the R&D of NOP+ and NAD is basically on track and according to our schedule.

同時，關於NAD我們也在做一些測試，如果將來法規和法律對於NOP+的發布來說是合適的，那麼當法規成熟時我們就會為我們的用戶發布NAD。在正確的地方。我們相信，現在NOP+和NAD的所有研發工作可能已經基本步入正軌並按照我們的時間表進行。

(Spoken in Mandarin) My second question is about the battery swapping stations. We can hear you have gotten nearly 1,500 stations at present. And yearly, we can see 200 stations has been added since this year. So, have you seen that the center of our battery swapping stations network has been built and it's quite good for ourselves or four new models, especially for our penetration of lower tier cities.

（普通話）我的第二個問題是關於換電站的問題。我們聽說你們目前已經擁有近 1,500 個電台。從今年開始，每年我們都會新增200個站點。那麼大家有沒有看到，我們換電站網絡的中心已經建成了，這對我們自己或者四款新車型來說是非常有好處的，特別是對於我們對低線城市的滲透。

(Inaudible) This is Steven. I think the short answer is a very clear yes. We have seen a very clear [flower] effect between the power swap station at work and our sales growth. As William just mentioned, we have already deployed 1,500 power swap stations across China and, at the end of this year, the number of power swap stations will rise to around 2,400.

（聽不清）這是史蒂文。我認為簡短的答案是非常明確的“是”。我們已經看到工作中的換電站與我們的銷售增長之間存在非常明顯的[花朵]效應。正如William剛才提到的，我們已經在全國部署了1500個換電站，今年年底，換電站的數量將增加到2400個左右。

Every day, we offer around 60,000 to 70,000 times a power source to our users. So, on average, every day one power swap station of 40 to 50 times of power swaps to our users.

每天，我們為用戶提供大約 60,000 到 70,000 次電源。所以平均來說，一個換電站每天要為我們的用戶進行40到50次的換電。

So, that means on one hand, our users rely on power swap station as their favorite charging method. On the other hand, the power swap stations are very efficiently utilized. So, that's why we see a clear [flower] effect, and that's why we are very determined to accelerate our power swap station deployment.

因此，這意味著一方面，我們的用戶依賴換電站作為他們最喜歡的充電方式。另一方面，換電站的利用效率非常高。所以，這就是為什麼我們看到了明顯的【花】效應，這就是為什麼我們非常堅定地加快我們換電站的部署。

Also, we're very confident that more power swap stations will lead to more sales growth. Actually, in the Yangtze River and some Tier 1 cities we have seen that as the charging strength improves, our sales volumes grow. That's why we are very confident that with more power and more power swap stations penetrate into the low tier cities, naturally, NIO's sales will lead to a very strong momentum and solid growth in the low-tier cities.

此外，我們非常有信心更多的換電站將帶來更多的銷售增長。事實上，在長江和一些一線城市我們看到，隨著充電力度的提高，我們的銷量也在增長。這就是為什麼我們非常有信心，隨著更多的電力和更多的換電站滲透到低線城市，蔚來的銷售自然會在低線城市帶來非常強勁的勢頭和穩健的增長。

Nevertheless, I think looking forward as more and more OEMs seriously look at power swap stations as a more or less a standard way, that power swap stations will become a more and more convenient way for more and more EV users.

儘管如此，我認為，隨著越來越多的原始設備製造商認真地將換電站視為一種或多或少的標準方式，換電站將成為越來越多電動汽車用戶越來越方便的方式。

Xing Chang (Spoken in Mandarin). Steven, thank you.

興昌（普通話）。史蒂文，謝謝你。

Thank you, your next question comes from Vijay Rakesh from Mizuho Securities. Please go ahead.

謝謝，您的下一個問題來自瑞穗證券的 Vijay Rakesh。請繼續。

Yes, hi. Just a quick question. You have given some of the new ramps of the five-year models. It looks like you're getting a good response from it. Would you expect the second half or even third quarter production run rates to get to the 20,000 per month on average? Just wondering what the expectation is on second half to first half deliveries.

是的，嗨。只是一個簡單的問題。您已經給出了五年模型的一些新坡度。看來你從中得到了很好的回應。您預計下半年甚至第三季度的生產運行率是否會達到平均每月 20,000 件？只是想知道下半年到上半年交付的預期是什麼。

William Bin Li (Interpreted) Thank you Vijay, for your question. Of course, for us, the target for the second quarter of this year is to deliver over 20,000 units every month and we are very confident to achieve this target.

William Bin Li（翻譯） 謝謝 Vijay 的提問。當然，對於我們來說，今年第二季度的目標是每月交付超過2萬台，我們非常有信心實現這個目標。

Got it. Just one other question.

知道了。還有一個問題。

[Over speaking]

[說話過多]

If you look at some of the cities, more of the tier 2 cities, is that a near term - could that be a challenge for NIO given you don't have enough swap stations, etc. on the tier 2 cities etc. Thanks, appreciate.

如果你看看一些城市，更多的二線城市，這是近期的事情——這對蔚來來說可能是一個挑戰，因為你在二線城市等沒有足夠的交換站等。謝謝，欣賞。

(Interpreted) This year our target is to deploy 1,000 additional power swap stations. The majority of those power swap stations will be deployed on the highways. Some of them will be installed in the Tier 3 and the Tier 4 cities. We believe that this is going to directly boost the sales performance of other products.

（解說）今年我們的目標是新增換電站1000個。這些換電站大部分將部署在高速公路上。其中一些將安裝在三線和四線城市。我們相信這將直接提升其他產品的銷售業績。

Actually, in April we started the deployment of the power swap station 3.0 and we accelerated the deployment in May. In June we believe that we are going to deploy around 100 power swap stations 3.0. We believe gradually from now on we are going to speed up the deployment of the power swap stations.

實際上，我們從4月份就開始部署換電站3.0，5月份我們加快了部署。 6月份我們相信我們將部署大約100個換電站3.0。我們相信從現在開始我們將逐步加快換電站的部署。

Thank you.

謝謝。

Thank you, Vijay.

謝謝你，維杰。

Thank you. As there are no further questions at this time, I would now like to turn the call back to the Company for closing remarks.

謝謝。由於目前沒有其他問題，我現在想將電話轉回公司以發表結束語。

Thank you once again for joining us today. If you have further questions, please feel free to contact any of the 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。如果您還有其他疑問，請隨時通過我們網站上提供的聯繫信息聯繫任何投資者關係團隊。電話會議到此結束。您現在可以斷開線路。謝謝。

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

該文字記錄中標記為（已翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。