蔚來 (NIO) 2023 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by for NIO Incorporated's third quarter 2023 earnings conference call. At this time all participants are in listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Mr. Rui Chen, Head of Investor Relations of the Company. Please go ahead, Rui.

女士們、先生們，感謝你們出席蔚來汽車公司 2023 年第三季財報電話會議。此時所有參與者都處於只聽模式。今天的電話會議正在錄音。現在我將電話轉交給東道主，公司投資者關係部主管陳銳先生。請繼續吧，瑞。

Good morning and good evening, everyone, welcome to NIO's third quarter 2023 Earnings Conference Call. The Company's financial and operating results were published in a press release earlier today and are posted on the Company's IR website.

大家早安、晚上好，歡迎參加蔚來汽車2023年第三季財報電話會議。本公司的財務和經營業績已在今天稍早發布的新聞稿中發布，並發佈在公司的投資者關係網站上。

On today's call, we have Mr. William Li, Founder, Chairman and CEO. Mr. Steven Feng, our CFO and Mr. Stanley Qu, Senior VP of Finance.

出席今天的電話會議的有創辦人、董事長兼執行長李威廉先生。我們的財務長馮峰先生和財務高級副總裁曲斯坦利先生。

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有重大差異。有關風險和不確定性的更多資訊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，本公司不承擔更新任何前瞻性聲明的義務。

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，蔚來的獲利新聞稿和本次電話會議包括對未經審計的 GAAP 財務資訊以及未經審計的非 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較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執行長李威廉先生。威廉，請繼續。

(Interpreted) Hello everyone, thank you for joining NIO's 2023 Q3 Earnings Call.

（翻譯）大家好，感謝您參加蔚來汽車2023年第三季財報電話會議。

In the third quarter of 2023, by making the most of a complete product lineup on the NT2 Platform, the improvement of overall sales capacity and capability, as well as the continuous expansion of sales, service and power networks, NIO delivered a total of 55,432 premium smart electric vehicles, up 75.4% year over year.

2023年第三季度，蔚來憑藉NT2平台完整的產品陣容、整體銷售能力和能力的提升，以及銷售、服務和電力網絡的不斷拓展，累計交付汽車55,432輛。高端智能電動汽車同比增長75.4%。

The retail stats from CATARC show that in Q3, NIO ranked the first in China's BEV segment with an average transaction price of over RMB300,000, with market share above 45% in the segment.

中國汽車技術研究中心零售數據顯示，第三季度，蔚來汽車以平均交易價格超過30萬元，位居中國純電動車細分市場第一，細分市場佔有率超過45%。

In September, NIO launched and delivered the all new EC6, a midsized coupe SUV upgraded to the second generation. It also marked the completion of NIO's product lineup on the NT2.0 Platform.

9月，蔚來第二代升級中型轎跑SUV全新EC6上市。這也標誌著蔚來NT2.0平台產品陣容的完善。

In Q4, as price war deepens and the competition gets tighter for smart EVs, NIO delivered a total of 32,033 vehicles in October and November, up 32.2% from last year, while maintaining our prices stable. In Q4, the total deliveries are expected to be between 47,000 to 49,000.

第四季度，隨著價格戰的深入和智慧電動車競爭的加劇，蔚來10月和11月共交付32,033輛汽車，較去年增長32.2%，同時保持價格穩定。第四季的總交付量預計在 47,000 至 49,000 之間。

Going forward, we will stay focused on executing sales strategies and improving operational efficiency. We believe the competitiveness of NIO's second-generation products will be fully unleashed next year.

展望未來，我們將繼續專注於執行銷售策略並提高營運效率。我們相信蔚來第二代產品的競爭力將在明年充分釋放。

In terms of NIO's financial performance attributed to the increased sales mix for higher priced models, decreased parts costs and improved economies of scale enabled by more deliveries combined with a refined management of sales policies, the vehicle margin in the third quarter reached 11%.

蔚來的財務業績得益於高價車型銷售組合的增加、零件成本的下降以及交付數量的增加以及銷售政策的精細化管理帶來的規模經濟的改善，第三季度的車輛利潤率達到了11 %。

Next, I'd like to share with you the recent highlights of our products, R&D and operations.

接下來我想跟大家分享我們近期的產品、研發和營運的亮點。

On 21 September NIO held NIO IN, NIO's Innovation and Technology Day. At the event, NIO's 12 Full Stack technology capabilities covering the holistic business scenarios for smart EVs for multiple brands and platforms were introduced to the public for the first time.

9月21日，蔚來舉辦蔚來創新科技日NIO IN。會上，蔚來首次向大眾展示了涵蓋多品牌、多平台智慧電動車全業務場景的12項全端技術能力。

In the meantime, NIO also unveiled China's first vehicle operating system, SkyOS, and the in-house developed LiDAR SoC, named Yang Jian, demonstrating NIO's systematic R&D capabilities, leading the industry.

同時，蔚來也發表了中國首款車載作業系統SkyOS以及自主研發的光達SoC“陽劍”，展現了蔚來領先產業的系統研發能力。

Regarding assisted and intelligent driving, NIO has been quickly iterating the system capabilities. On 15 November, power swap pilot for highway Beta was released in China. So far 29 power swap stations on highways already support this feature. PSP seamlessly combines NOP+ and the power swap, bringing new users a hassle-free highway driving and battery swapping experience that is automated and intelligent from end to end.

在輔助和智慧駕駛方面，蔚來一直在快速迭代系統能力。 11月15日，中國發布高速公路Beta換電試點。目前已有29個高速公路換電站支援此功能。 PSP將NOP+與換電無縫結合，為新用戶帶來全程自動化、智慧的無憂高速公路駕駛與換電體驗。

In the meantime, NIO has rolled out the NOP+ for urban traffic providing users with uninterrupted driving experience from Point A to Point B, both on highways and on city streets. Enabled by NIO's generalization capability in-house and taking into consideration the high demand routes on users' wish lists, we have started to roll out NOP+ for cities, route by route, from November and will gradually realize wider coverage.

同時，蔚來針對城市交通推出了NOP+，為使用者提供從A點到B點、高速公路和城市街道不間斷的駕駛體驗。借助蔚來內部的泛化能力，並考慮到用戶心願單上的高需求路線，我們從11月開始針對城市逐條路線推出NOP+，並逐步實現更廣泛的覆蓋。

At present the NOP+ has been released to early bird users in several major cities and is quickly becoming available for more routes and in more cities which has far surpassed the target announced at NIO IN. At our upcoming NID 3Communication event, we will be sharing more information about that.

目前NOP+已在多個主要城市向早鳥用戶開放，並且正在快速開通更多航線、更多城市，遠超過NIO IN公佈的目標。在即將舉行的 NID 3Communication 活動中，我們將分享更多相關資訊。

In terms of the sales and service network, so far, we have 458 NIO House, NIO Space and pop-up stores in 152 cities as well as 314 service centers and 62 delivery centers in 217 cities.

在銷售和服務網絡方面，截至目前，我們在152個城市擁有458家NIO House、NIO Space和快閃店，在217個城市擁有314個服務中心和62個配送中心。

As for the charging and the swapping network, to date we have installed 2,226 power swap stations, over 9,400 power chargers and over 11,000 destination chargers worldwide. More than 1.46 million public chargers have been connected with NIO's charging map.

在充電和交換網路方面，迄今為止，我們已在全球安裝了2,226個換電站、9,400多個充電器和11,000多個目的地充電器。蔚來充電地圖已接取超過146萬個公共充電樁。

NIO's long trusted and well proven battery swapping system has offered over 32 million convenient, efficient and safe battery swaps to new users, making power swap the most trusted recharging solution for them. Nio NIO Power Cloud and NIO's power swap network has been opened to the entire industry.

蔚來久經考驗的換電系統已為新用戶提供了超過3,200萬次便利、高效、安全的換電服務，讓Power Swap成為新用戶最值得信賴的充電解決方案。蔚來NIO Power Cloud和蔚來換電網路已開放全產業。

In November, NIO partnered with Changan Automobile and Geely Holding, respectively, on battery swapping. In the future, NIO will join hands with more industry partners in such areas as formulation of swappable battery standards, battery swap network, R&D of battery swapping vehicles and the management of battery assets so as to provide a holistic, chargeable, swappable and operatable solution to more smart EV users and jointly contribute to the development and wider adoption of battery swap.

11月，蔚來汽車分別與長安汽車、吉利控股進行換電合作。未來，蔚來將在可換電標準制定、換電網路、換電車研發、電池資產管理等方面攜手更多產業夥伴，提供可充可換可營運的整體解決方案為更多智慧電動車用戶提供幫助，共同為電池更換的發展和更廣泛採用做出貢獻。

NIO Day, NIO'S [planned] annual gathering with users will be held on December 23 in Xi'an, Shaanxi province. This year we will unveil a brand-new flagship model, a real epitome of NIO's innovative technologies. This product will become a technology benchmark for smart EVs and a trendsetter of the smart EV technologies worldwide.

NIO Day，蔚來汽車[計畫]與用戶的年度聚會將於12月23日在陝西西安舉行。今年我們將推出全新旗艦車型，這是蔚來創新技術的真正縮影。該產品將成為智慧電動車的技術標桿，引領全球智慧電動車技術的趨勢。

On September 26, with contributions to shaping a low-carbon industry with innovative EV battery swapping, NIO received the Green Innovation Award of the 2023 Paulson Prize for Sustainability. This award is a [recognition] of the novelty and expandability as well as the economic and [inaudible].

9月26日，蔚來以創新的電動換電技術塑造低碳產業的貢獻，榮獲2023年保爾森永續發展獎綠色創新獎。該獎項是對新穎性、可擴展性以及經濟性和[聽不清楚]的[認可]。

The 2023 NIO Cup Formula Student China, a racing car design competition for college students, was held from November 8 to November 12 in Fufei. NIO has been sponsoring and supporting the competition since 2015. So far, Formula Student China has cultivated more than 40,000 young professionals for China's automotive industry, becoming one of the most important cradles of young automotive talent in China.

2023蔚來盃中國大學生方程式賽車設計比賽於11月8日至12日在阜飛舉行。蔚來汽車自2015年起一直贊助並支持這項賽事。迄今為止，中國學生方程式大賽已為中國汽車產業培養了超過4萬名青年專業人才，成為中國最重要的青年汽車人才的搖籃之一。

The next two years will see the most intense competition during the transformation of the automotive industry. Faced with massive uncertainty in the external environment, recently we've sorted through and have adjusted our key objectives, priorities and action plans to become more focused on efficient execution and improvement of system capabilities while ensuring long-term investment in core technologies, strong sales and service capabilities to navigate the intense market competition and on-time release of the nine core products from the three brands.

未來兩年將是汽車產業轉型期競爭最激烈的一年。面對外部環境的巨大不確定性，近期我們梳理調整了重點目標、優先事項和行動計劃，在確保核心技術長期投入、銷售強勁的同時，更加註重高效執行和系統能力提升。憑藉強大的服務能力，因應激烈的市場競爭，三大品牌九大核心產品如期發布。

We will continuously optimize internal working processes and the division of roles and responsibilities, stay focused on projects that can contribute to the Company's financial performance and comprehensively improve organizational efficiency and resource utilization. We are very confident of NIO's long-term competitiveness in the smart EV industry.

我們將持續優化內部工作流程和職責分工，聚焦對公司財務績效有貢獻的項目，全面提升組織效率與資源利用率。我們對蔚來汽車在智慧電動車產業的長期競爭力充滿信心。

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 third 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，以提供第三季的財務細節。交給你了，史蒂文。

Thank you, William. I will now go over our key financial results for the third quarter of 2023. To be mindful of the length 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。我現在將回顧我們 2023 年第三季的主要財務業績。為了注意這次電話會議的長度，我將在今天的討論中僅提及人民幣。我鼓勵聽眾參考我們在線上發布的收益新聞稿以了解更多詳細資訊。

Our total revenues in the third quarter were RMB19.1 billion, which is an increase of 46.6% year over year, and increase of 117.4% quarter over quarter.

第三季總營收為人民幣191億元，年增46.6%，季增117.4%。

Our total revenues are made of two parts, vehicle sales and other sales. Vehicle sales in the third quarter were RMB17.4 billion, representing an increase of 45.9% year over year and 142.3% quarter over quarter. The increase in vehicle sales year over year and quarter over quarter was mainly attributable to higher vehicle deliveries. Other sales in the third quarter were RMB1.7 billion, representing an increase of 55% year over year and increase of 4.5% quarter over quarter.

我們的總收入由兩部分組成：車輛銷售和其他銷售。第三季汽車銷售量為人民幣174億元，年增45.9%，季增142.3%。汽車銷量較去年同期成長主要歸因於汽車交付量的增加。第三季其他銷售額為人民幣17億元，較去年成長55%，季增4.5%。

Gross margin in the third quarter of 2023 was 8% compared with 13.3% in the third quarter of 2022 and 1% in second quarter of 2023. The changes of gross margin year over year and quarter over quarter was mainly attributable to the changes of vehicle margin. More specifically, vehicle margin in the third quarter was 11% compared with 16.4% in the third quarter of 2022 and 6.2% in the second quarter of 2023.

2023年第三季毛利率為8%，而2022年第三季毛利率為13.3%，2023年第二季毛利率為1%。毛利率年比及季比變動主要歸因於車輛的變動利潤。更具體地說，第三季汽車利潤率為 11%，而 2022 年第三季為 16.4%，2023 年第二季為 6.2%。

The decrease in vehicle margin year over year was mainly attributable to changes in product mix, partially offset by the decreased battery cost per unit. The increase in vehicle margin quarter over quarter was mainly due to changes in product mix as well as decreased promotion.

汽車利潤率年減主要是由於產品結構的變化，但部分被單位電池成本的下降所抵消。汽車利潤率環比增長主要是由於產品結構的變化以及促銷活動的減少。

Our R&D expenses in third quarter were RMB3 billion, which is an increase of 3.2% year over year and a decrease of 9.1% quarter over quarter. This slight increase in research and development expenses year over year was mainly attributable to increased personnel costs in research and development functions, partially offset by the decreased design and development costs and deduction of expenses due to support for technology advancement provided by local government authorities during the third quarter of 2023.

第三季研發費用為30億元，年增3.2%，季減9.1%。研發費用較去年小幅成長主要是由於研發職能人員成本增加，但部分被設計和開發成本下降以及地方政府部門在技術進步支援中扣除的費用所抵銷。2023 年第三季。

The decrease in research and development, R&D, expenses quarter over quarter was mainly due to the support for technology advancement provided by local government authorities during third quarter of 2023.

研發、研發費用較上月下降主要是由於2023年第三季地方政府部門對技術進步的支持。

SG&A expenses in third quarter were RMB3.6 billion, representing an increase of 33.1% year over year and increase of 26.3% quarter over quarter.

第三季銷售、管理及行政費用為人民幣36億元，較去年同期成長33.1%，較上季成長26.3%。

Loss from operations in the third quarter was RMB4.8 billion, representing an increase of 25.2% year over year and a decrease of 20.3% quarter over quarter. Net loss in the third quarter was RMB4.6 billion, representing an increase of 10.8% year over year and a decrease of 24.8% quarter over quarter.

第三季經營虧損為人民幣48億元，年增25.2%，季減20.3%。第三季淨虧損為人民幣46億元，年增10.8%，季減24.8%。

Our balance of cash and the cash equivalents, restricted cash, short-term investment and long-term time deposits was RMB45.2 billion as of September 30, 2023.

截至2023年9月30日，我們的現金及現金等價物、限制性現金、短期投資及長期定期存款餘額為人民幣452億元。

Now this concludes our prepared remarks. I will now turn the call over to the operator to proceed 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繼續我們的問答環節。

Thank you. (Operator Instructions). For the benefit of all participants on today's call, please limit yourself to two questions. If you have additional questions, you can re-enter the queue.

謝謝。 （操作員說明）。為了今天電話會議所有參與者的利益，請只回答兩個問題。如果您還有其他問題，可以重新進入佇列。

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

我們的第一個問題來自摩根士丹利的 Tim Hsiao。請繼續。

Thank you very much for taking my questions. I actually have two parts of the question. The first one is about the battery swapping, because NIO, as just mentioned, further expanded its strategic alliance in battery swapping from previous partner like Sinopec to Changan and Geely. Could you share a little bit more about your plan of how to structure the new alliance of battery swapping and the potential financial impact like your CapEx and operating loss?

非常感謝您回答我的問題。我實際上有兩個部分的問題。第一個是換電，因為剛才提到蔚來在換電方面的戰略聯盟進一步擴大，從以前的中石化夥伴擴大到了長安、吉利。您能否多分享一下您關於如何建立新的電池交換聯盟的計劃以及潛在的財務影響（例如您的資本支出和營運損失）？

In the long term, will you consider to spin off the battery-swapping business and operate it independently or even go public as a standalone third-party battery swapping or utility operator? That's my first question.

從長遠來看，您是否會考慮剝離電池交換業務並獨立運營，甚至作為獨立的第三方電池交換或公用事業運營商上市？這是我的第一個問題。

(Interpreted) Thank you, Tim, for your question. Yes, recently we have announced the cooperation agreements with both Changan and Geely on the battery swapping. In terms of the battery swap network, the way we look at it is a bit similar to the cloud service or the cloud infrastructure. Both power swap stations and the cloud infrastructure require and rely on the network effect. Both can have pretty long investment cycles. Both are actually started with internal services first. After sufficient validations and verifying the demands and the fulfilments for our users' needs, we will then open up the service to the public. After five years of validation and internal services, we believe that we are ready to provide such network and a service to the industry. It's about time to open up the network to the industry.

（翻譯）提姆，謝謝你的提問。是的，最近我們宣布了與長安和吉利的換電合作協議。就電池交換網路而言，我們看待它的方式有點類似雲端服務或雲端基礎設施。換電站和雲端基礎設施都需要並依賴網路效應。兩者都有相當長的投資週期。兩者實際上都是首先從內部服務開始的。在經過充分驗證並核實用戶的需求和滿足情況後，我們將向公眾開放服務。經過五年的驗證和內部服務，我們相信我們已經準備好向業界提供這樣的網路和服務。現在是向業界開放網路的時候了。

As we all know that there are quite a lot benefits with power swap. It is faster than charging and also it has better user experience. It also brings values and benefits to users and also the society. Especially in China, many users living in the urban environment or compound and apartments do not have a home charger. In fact, actually more than 50% of our users cannot install chargers at home. In this case, battery swap becomes even more important and the convenience for those users to not having home chargers.

眾所周知，換電有很多好處。它比充電更快，而且具有更好的用戶體驗。它也為用戶和社會帶來價值和利益。尤其是在中國，許多居住在城市環境或社區、公寓的使用者沒有家用充電器。事實上，我們有超過50%的用戶家中無法安裝充電器。在這種情況下，電池更換變得更加重要，並且為那些沒有家用充電器的用戶帶來便利。

This is also very important for the mass market brand because NIO is after all a premium brand and many of our users can still have chargers at home but for the mass market brands, the percentage of not being able to having the home chargers will be higher. That's why when we started to share our battery design standards and also specifications for the mass market brand to the industry peers, many of them are very interested in this alliance.

這對大眾市場品牌來說也非常重要，因為蔚來畢竟是高端品牌，我們許多用戶家裡仍然可以有充電器，但對於大眾市場品牌來說，無法擁有家用充電器的比例會更高。這就是為什麼當我們開始向業界同行分享我們的電池設計標準以及大眾市場品牌的規格時，他們中的許多人對這個聯盟非常感興趣。

We have already announced two agreements and there are several more that are still in negotiation as they also believe that with NIO's current battery swap technologies, service standards and also service network, this is what they need for their product as well as for their users.

我們已經宣布了兩項協議，還有幾項仍在談判中，因為他們也相信，憑藉蔚來目前的換電技術、服務標準和服務網絡，這就是他們的產品和用戶所需要的。

And also, in terms of the business model for the power swap, we believe that it is sustainable both from the business perspective as well as from a finance perspective. Especially after five years of operations and validation, we have confidence in the sustainability of battery swap.

此外，就換電的商業模式而言，我們認為無論從商業角度還是從財務角度來看，它都是可持續的。尤其是經過五年的營運和驗證，我們對電池更換的可持續性充滿信心。

In terms of our battery swap network, as we will continue to expand our power swap network, there will be CapEx also relevant to such network development. But in the meantime, we are also looking for approaches where we may introduce partners into our power swap network. Basically, they will buy the battery swap station as a product from us and then they will install the stations and hand it over to us for the operations. In this case, they will be holding these battery assets for us. There are a dozen such stations already running based on this business model. So, for the longer term we will also be looking for partners holding the battery swap station assets.

就我們的電池交換網絡而言，隨著我們將繼續擴大我們的電力交換網絡，資本支出也將與此類網絡的發展相關。但同時，我們也在尋找可以將合作夥伴引入我們的電力交換網路的方法。基本上，他們會從我們這裡購買電池交換站作為產品，然後安裝交換站並將其交給我們進行營運。在這種情況下，他們將為我們持有這些電池資產。目前已有十幾個此類電台基於這種商業模式運作。因此，從長遠來看，我們也將尋找持有電池更換站資產的合作夥伴。

In terms of the NIO power charging service, it is also already almost breaking even. As you may know that 80% of our power was charged for the non-NIO users. So, for the longer term, NIO power charging will also be a profitable business. Actually in certain areas and with certain charging stations, the operations...

蔚來充電服務方面，也基本上已經達到收支平衡。大家可能知道，我們80%的電力都是給非蔚來用戶收取的。所以，從長遠來看，蔚來充電也將是一項獲利業務。實際上，在某些地區和某些充電站，運營...

Swap stations.

交換站。

(Interpreted) With certain swap stations, the operation is already profitable. This is also in terms of sustaining of the power swap stations, there are some investors showing their interest into having power swap, our power swap business as an independent business. We're also in conversation with them.

（解釋）某些換電站的運作已經實現盈利。這也是為了維持換電站，有一些投資者對換電業務表現出興趣，我們的換電業務作為一個獨立的業務。我們也在與他們交談。

Yes, okay. Thank you, Tim, your next question?

是的，好的。謝謝你，提姆，你的下一個問題是？

Sure, thank you. Thank you, William, for sharing all that detail. So, my next question is about the car manufacturing because as you just mentioned, NIO announced you acquired a production facility from JAC. So, first, does that mean NIO has been granted a manufacturing license? In the meantime, I think that means NIO officially shifted from the asset-light business model to asset heavy. So, in the near term, how should we think about the unit cost, vehicle manufacturing from fourth quarter onward? So, I think that previously we provided vehicle margin guidance for 15% for December quarter.

當然可以，謝謝。謝謝威廉分享所有細節。所以，我的下一個問題是關於汽車製造的，因為正如你剛才提到的，蔚來宣布你從江淮汽車收購了一個生產設施。那麼，首先，這是否意味著蔚來已經獲得了生產許可證？同時，我認為這意味著蔚來正式從輕資產商業模式轉向重資產商業模式。那麼，短期內，我們該如何看待第四季以後的車輛製造單位成本？因此，我認為之前我們為 12 月季度提供的車輛利潤率為 15%。

And in the long term, do you still think that the full-stack inhouse development, production and direct vehicle sales without relying on dealers would be the most ideal model for both NIO and Alps, the mass market brand, or if there will be any major difference? That's my second question. Thank you.

而從長遠來看，您是否仍然認為，不依賴經銷商的全端自主研發、生產和直銷，對於蔚來和阿爾卑斯這樣的大眾品牌來說是最理想的模式，或者說是否有任何一種模式？主要區別？這是我的第二個問題。謝謝。

Steven will answer this question.

史蒂文將回答這個問題。

Okay, so I'll start with your question about the manufacturing (inaudible) factory. During this acquisition, the manufacturing agreements between NIO and JAC are still performed, stipulated. And the production activities of the models in the cooperation are going on normally. Going forward, if there is any changes to the manufacturing cooperation with regards to the (inaudible) models between NIO and JAC or other (inaudible) that constitutes significant information after this acquisition or in the future. NIO will come [prepared] with and disclose the capital market in a timely manner, comply with the (inaudible) laws and regulations and the rules for listed companies

好的，我將從您關於製造（聽不清楚）工廠的問題開始。本次收購期間，蔚來汽車與江淮汽車之間的製造協議仍依規定履行。目前合作車型的生產活動正在正常進行中。展望未來，蔚來汽車與江淮汽車之間的（聽不清楚）車型的製造合作是否發生任何變化，或在本次收購後或未來構成重大資訊的其他（聽不清楚）情況。蔚來將及時準備並揭露資本市場，遵守（聽不清楚）法律法規和上市公司規則

(Interpreted) And also to add onto Steven's comment, if we bring the entire manufacturing fully inhouse, overall speaking our manufacturing cost will be reduced by around 10%.

（解釋）也要補充Steven的評論，如果我們將整個製造完全內部化，整體來說我們的製造成本將降低10%左右。

Great, thanks very much, William and Steven, for all the details. Thank you. Thanks a lot.

太好了，非常感謝威廉和史蒂文提供的所有細節。謝謝。多謝。

Our next question comes from Nick Lai with JP Morgan. Please go ahead.

我們的下一個問題來自摩根大通的 Nick Lai。請繼續。

(Spoken in Chinese) My first [group of] questions is really about enhancing increased [cooperation] efficiencies and the (inaudible). So if you could please give us some examples and a little bit more about this initiative.

（用中文發言）我的第一個[組]問題其實是關於提高[合作]效率和（聽不清楚）。因此，如果您可以的話，請給我們一些例子以及更多有關此計劃的資訊。

Thank you Nick. Thank you, Nick. (Interpreted) In this round of organizational optimization, we have identified several principles because over the years of development, we have some low efficiency positions and jobs and also some duplicated roles and responsibilities. In this case, we have identified this low efficiency, so redundancies in the organization. We've improved the processes of low efficiencies and we've also eliminated jobs and positions that are duplicated or are of low efficiencies.

謝謝你尼克。謝謝你，尼克。 （解說）在這輪組織優化中，我們明確了幾個原則，因為經過多年的發展，我們有一些低效率的職位和職位，也有一些角色和職責的重複。在這種情況下，我們已經確定了這種低效率，因此在組織中進行了裁員。我們改善了低效率的流程，淘汰了重複、低效率的職位和職位。

Also, in terms of the projects deferred or terminated, basically we look at the projects and their financial contribution. If they cannot bring any financial contribution in the coming three years, we will be thinking about deferring them or terminating them. For example, if they cannot contribute to the gross margin or the P&L, they may need to be deferred or reconsidered.

此外，就延遲或終止的專案而言，我們基本上會關注專案及其財務貢獻。如果他們在未來三年內無法帶來任何財務貢獻，我們將考慮推遲或終止他們。例如，如果它們無法對毛利率或損益做出貢獻，則可能需要推遲或重新考慮。

A quick example is regarding the in-house manufacturing of our batteries. We have identified that in the coming three years, bringing battery production in-house will not help us with the gross margin improvement. In this case we have decided to defer the plan. We will still continue to do the in-house R&D of battery cells, battery materials and battery packs but we will outsource the manufacturing of the battery packs for better overall efficiency and performance. So, for this round of optimization, we've done a detailed and a thorough review and adjustments and also made the necessary adjustments based on the needs of the business and the resources of the entire company.

一個簡單的例子是我們電池的內部製造。我們已經確定，在未來三年內，將電池生產納入內部不會幫助我們提高毛利率。在這種情況下，我們決定推遲該計劃。我們仍將繼續進行電池電芯、電池材料和電池組的內部研發，但我們將外包電池組的製造，以提高整體效率和性能。所以，對於這一輪的優化，我們做了詳細、徹底的檢視和調整，也根據業務的需求和整個公司的資源進行了必要的調整。

But in the meantime, we will still make sure that we don't miss our (inaudible) or dilute our investment and resources for the high priority items for the coming two years. The first is the long-term investment for the core technologies, so that we can still keep leading in terms of the products and the technologies.

但同時，我們仍將確保我們不會錯過（聽不清楚）或稀釋我們對未來兩年高優先事項的投資和資源。首先是對核心技術的長期投入，使我們在產品和技術上始終保持領先。

As mentioned earlier today, at NIO Day 2023, we are going to unveil a brand-new flagship model, and this product will be equipped with a lot of state-of-the-art technologies that are leading the entire automotive industry.

正如今天早些時候提到的，在 2023 NIO Day 上，我們將推出一款全新的旗艦車型，這款產品將配備許多領先整個汽車行業的尖端技術。

Our second priority is the continuous development of our sales and service networks. Recently, we have enlarged the sales teams. We have also increased the number of the points of sale so that we can get ready for the more intense competition in the coming two years, because if we don't make such preparation, we will not be navigating the intense competition.

我們的第二要務是不斷發展我們的銷售和服務網絡。最近，我們擴大了銷售團隊。我們也增加了銷售點的數量，以便為未來兩年​​更加激烈的競爭做好準備，因為如果我們不做好這樣的準備，我們就無法在激烈的競爭中脫穎而出。

An example is that in October, in Shanghai our sales volume has outnumbered that of BMW and Mercedes running on all power sources, including ICE cars as well as EVs. In cities from Jiangsu or Zhejiang provinces, we are also establishing a pretty solid foothold with a pretty significant market share, but when it comes to lower-tier cities like fourth-tier or fifth-tier cities, we still have a long way to go, or in cities where the EV infrastructure is not yet ready, we are also not outperforming those well-established brands. In this case, we need to continue to develop our sales and service networks.

舉個例子，10月份，我們在上海的銷量已經超過了所有動力車型的寶馬和賓士，包括內燃機汽車和電動車。在江浙一帶的城市，我們也已經站穩了腳跟，有相當大的市場份額，但到了四五線等低線城市，我們還有很長的路要走。 ，或者在電動汽車基礎設施尚未準備好的城市，我們的表現也沒有超越那些成熟的品牌。在這種情況下，我們需要繼續發展我們的銷售和服務網絡。

In terms of our sales performance, in Zhejiang, Jiangsu and Shanghai, 50% of our sales volume is contributed by the sales in these three areas. On the one hand, it shows that our products are well recognized in the highly competitive markets in these three places. On the other hand, it also means that we need to further enhance our brand awareness in the lower-tier cities.

從我們的銷售業績來看，在浙江、江蘇和上海，我們50%的銷售量是由這三個地區的銷售貢獻的。一方面，這表明我們的產品在這三地競爭激烈的市場中得到了認可。另一方面，這也意味著我們需要進一步提升我們在低線城市的品牌知名度。

The third priority in the coming two years is to secure the on-time release of our [NI core] products from the third brand. We have already made investments, and the products of this third brand will be coming into the market very quickly in the coming two years.

未來兩年的第三個重點是確保第三品牌的【NI核心】產品按時發布。我們已經進行了投資，第三個品牌的產品將在未來兩年內很快進入市場。

Thank you, Nick.

謝謝你，尼克。

(Spoken in Chinese) My second question is really about the balance of the choice between sales volume and margin, and how to consider these two factors when it comes to the market competition. Are we still maintaining 15% vehicle (inaudible) margin in Q4 and the long-term target of (inaudible) 20%, 22% vehicle (inaudible) margin sometime towards '24] (and beyond). Thanks.

（中文）我的第二個問題其實是關於銷售和利潤之間的選擇的平衡，以及在市場競爭中如何考慮這兩個因素。我們是否仍會在第四季維持15% 的車輛（聽不清楚）利潤率，以及到2024 年（及以後）某個時間（聽不清楚）20%、22% 的車輛（聽不清楚）利潤率的長期目標。謝謝。

Our strategy for the third quarter is pretty clear, that is to keep our prices stable. Earlier this year in June, we have adjusted our user benefits. Actually, both our existing users and the new users were accepting this adjustment pretty well, so we may be the only company able to satisfy both existing users and new users with benefit adjustments.

我們第三季的策略非常明確，那就是保持價格穩定。今年六月初，我們調整了用戶福利。事實上，我們的現有用戶和新用戶對這項調整的接受程度都很好，所以我們可能是唯一一家能夠在福利調整上讓現有用戶和新用戶都滿意的公司。

Since then, we have been keeping a pretty stable price strategy, as we believe that it is beneficial to our brand image and also product competitiveness, and also users are experiencing benefits.

從那時起，我們一直保持相當穩定的價格策略，因為我們認為這有利於我們的品牌形象和產品競爭力，也有利於使用者體驗。

Going into Q4, the price wars deepens, the competition also gets more fierce. For many well-established brands, like our competitors BMW and Mercedes, they are also slashing prices pretty aggressively. Even on their EV models, the price reduction can be as high as 31%, but we still keep a pretty stable price amid this fierce competition.

進入第四季度，價格戰進一步加深，競爭也更加激烈。對於許多知名品牌來說，例如我們的競爭對手寶馬和賓士，他們也在大幅降價。即使是他們的電動車型，降價幅度也高達31%，但在激烈的競爭中我們仍然保持著相當穩定的價格。

This is also reflected - these stable prices are also reflected in our improved vehicle margin. So our longer-term strategy will be keeping our price stable, while continuously improving our vehicle margin. In the meantime, we will also improve our sales capacity, capability and efficiency so that we can bolster our sales volume, but this can take time, and we will be staying patient.

這也反映了——這些穩定的價格也反映在我們提高的車輛利潤率上。因此，我們的長期策略將是保持價格穩定，同時不斷提高我們的車輛利潤率。同時，我們也會提高我們的銷售能力、能力和效率，這樣我們就能增加我們的銷售量，但這需要時間，我們會保持耐心。

We will not realize or boost our sales volume at the cost of our product margin, as this is not healthy for the longer run. Maybe Stanley can also add more information regarding the specific financial numbers.

我們不會以犧牲產品利潤為代價來實現或提高銷量，因為從長遠來看，這並不健康。也許史丹利還可以添加有關具體財務數據的更多資訊。

Hi, Nick. Our vehicle gross profit margin is 11.23%, and we are confident to achieve a higher margin in Q4, considering more market production efficiency, lower price of lithium carbonate and also decreased parts cost.

嗨，尼克。我們的整車毛利率為11.23%，考慮到市場生產效率的提高、碳酸鋰價格的下降以及零件成本的降低，我們有信心在第四季度實現更高的毛利率。

Our target is still kept at 15% for Q4, and from long run, as an important project internally, we have started to further improve our cost structure for NT2 products by optimizing design, improving supply chain and production efficiency and also business negotiation with our partners.

我們第四季的目標仍然保持在15%，從長遠來看，作為內部的一個重要項目，我們已經開始透過優化設計、改善供應鏈和生產效率以及與我們的業務談判來進一步改善NT2產品的成本結構。夥伴。

As mentioned by William, our new brand keeps focus on the premium market segment, and we will keep product prices relatively stable. So combining all those factors together, we believe our vehicle margin can be further increased to 15% to 18% in 2024. That's the general guidance for vehicle margin. Thank you.

正如William所提到的，我們的新品牌將繼續專注於高端細分市場，我們將保持產品價格的相對穩定。因此，將所有這些因素結合在一起，我們相信到 2024 年我們的車輛利潤率可以進一步提高到 15% 至 18%。這是車輛利潤率的整體指引。謝謝。

(Interpreted) Also looking at our previous vehicle margin decrease, before the prices of the lithium carbonate [rise], we actually managed to realize a vehicle margin as good as 21%. So for a much longer term, we will also target a (inaudible) a vehicle margin above 20%.

（解釋）再看看我們之前的整車利潤率下降情況，在碳酸鋰價格[上漲]之前，我們實際上實現了高達21%的整車利潤率。因此，從長遠來看，我們也將目標（聽不清楚）車輛利潤率提高到 20% 以上。

Thank you, Nick.

謝謝你，尼克。

The next question comes from Yuqian Ding with HSBC. Please go ahead.

下一個問題來自匯豐銀行的丁宇謙。請繼續。

Thanks. This is Yuqian Ding here. I've got two questions. Maybe we roll it one by one. The first one is on the cash position. We notice the cash balance increasing quarter on quarter. Other than the strategic investment and the convertible bonds, there is also still a RMB1 billion increase. Is that coming from the improving operation? Can you shed a little bit more light on that?

謝謝。我是丁於謙。我有兩個問題。也許我們會一一滾動。第一個是現金部位。我們注意到現金餘額逐季增加。除策略性投資和可轉債外，還有10億元的增量。這是來自改進操作嗎？您能否進一步說明這一點？

Hi, Yuqian, this is Stanley. As far as the new product delivery ramp-up in Q3, we achieved a positive operating cash flow. Going forward, if our sales continue to grow, we are confident to realize a healthy operating cash flow. That's for your first question.

嗨，雨倩，我是史丹利。就第三季新產品交付量的增加而言，我們實現了正的經營現金流。展望未來，如果我們的銷售額持續成長，我們有信心實現健康的營運現金流。這是你的第一個問題。

Okay, got it. Thank you. The second question is on the OpEx reduction. Thanks, William, for sharing our optimizing of the battery business. We also read there is also a headcount cut. Could you share more on whether there will be asset write-off during the process of the cost optimization, and when would we expect us to reach a lean yet sustainable shape?

好，知道了。謝謝。第二個問題是關於營運支出的減少。感謝 William 分享我們對電池業務的優化。我們也了解到，員工人數也被削減。您能否詳細介紹一下成本優化過程中是否會出現資產核銷，以及我們預期何時能夠達到精實且可持續的形態？

About the cost optimization, we reduced 10% of working positions and completed the adjustment in November, but for Q4 there will be almost no financial impact, since we need to pay additional compensation for the employees who left the Company offset with less payroll cost.

關於成本優化，我們減少了10%的職位，並在11月份完成了調整，但對於第四季度來說，財務上幾乎沒有影響，因為我們需要為離開公司的員工支付額外的補償，抵消較少的工資成本。

But for next year, together with the headcount reductions, we also delayed or cancelled certain projects, as mentioned by William, so the total impact to 2024, we'll be seeing a total cost around RMB2 billion.

但明年，加上人員減少，我們也推遲或取消了某些項目，正如William所提到的，所以到2024年的總影響，我們將看到總成本約為20億元。

(Interpreted) Yes, this round of optimization has helped us to improve the financial performance slightly over our previous budget. However, we do need to have some one-time expenses due to the severance package for the terminated employees.

（解釋）是的，這一輪的最佳化幫助我們比之前的預算稍微提高了財務績效。然而，由於解僱員工的遣散費，我們確實需要一些一次性費用。

Got it. Thanks, William and Stanley.

知道了。謝謝，威廉和史丹利。

The next question comes from Ming Hsun Lee with Bank of America. Please go ahead.

下一個問題來自美國銀行的 Ming Hsun Lee。請繼續。

Hello, William and management. Thank you for taking my question. My first question is regarding your second brand, Alps in 2024. In future, will you consider to share the charging stations and the battery swap stations along with the NIO brand? Also, will you consider sharing the sales channel with the NIO brand? Thank you.

你好，威廉和管理層。感謝您回答我的問題。我的第一個問題是關於2024年你們的第二個品牌阿爾卑斯山。未來你們會考慮與蔚來品牌共享充電站和換電站嗎？另外，是否會考慮與蔚來品牌共享銷售管道？謝謝。

(Interpreted) When it comes to our mass market brand, code named Alps, actually recently we have just had the very first validation build of this brand roll off the production line. The condition of this verification build is pretty good. It can be maybe one of the best [BEV] cars we have in the history of NIO, so we are very confident in the competitiveness of this product. Before the official launch and the delivery, we still have time to continue to optimize and improve the product.

（解釋）說到我們的大眾市場品牌，代號為 Alps，實際上最近我們剛剛讓該品牌的第一個驗證版本下線。這個驗證版本的狀況非常好。它可能是蔚來史上最好的[BEV]車之一，所以我們對這個產品的競爭力非常有信心。在正式上線交付之前，我們還有時間繼續優化和完善產品。

In terms of our power swap and the charging network strategy, for NIO, our battery swap network will be coming in two parts. The first is the exclusive network for NIO and the NIO users, and the second will be a shared network, not only for NIO users but also for Alps users and other brands with swappable vehicles. In terms of the charging network, we've been sharing our chargers already with many non-NIO brands.

就我們的換電和充電網路策略而言，對於蔚來來說，我們的換電網路將分為兩部分。第一個是蔚來和蔚來用戶的專屬網絡，第二個是共享網絡，不僅適用於蔚來用戶，也適用於阿爾卑斯用戶和其他可更換車輛的品牌。在充電網路方面，我們已經與許多非蔚來品牌共享充電器。

In terms of the sales network, this will be separated, so they will have their own sales stores, but we will be sharing the service capacities and facilities, so service centers will be shared between NIO and Alps.

在銷售網路方面，這是分開的，所以他們會有自己的銷售店，但是我們會共享服務能力和設施，所以服務中心將在蔚來和阿爾卑斯之間共享。

My second question is regarding your 2024 product, because this year you already have updated all of your new models, and I also note some new models. In 2024, will you have some (inaudible) version of existing models and start to use 100 voltage charging system on your car? In this case, do you have any guidance about the battery swap station you expect? Thank you.

我的第二個問題是關於你們2024年的產品，因為今年你們已經更新了所有的新型號，我也注意到了一些新型號。 2024 年，您會擁有現有車型的某些（聽不清楚）版本並開始在您的汽車上使用 100 伏特充電系統嗎？在這種情況下，您對您期望的電池更換站有什麼指導嗎？謝謝。

(Interpreted) Yes, it's a common standard and practice for the automotive industry to have model years where (inaudible), but for our NT2 product, we will not have any major modifications or upgrades, as many of them were just newly launched or delivered to the market. To stabilize our quality and supply chain, we will only make minor improvements and upgrades on our NT2 products.

（解釋）是的，汽車行業有一個通用的標準和慣例，有車型年份（聽不清楚），但對於我們的NT2 產品，我們不會有任何重大修改或升級，因為其中許多只是新推出或交付的去市場。為了穩定我們的品質和供應鏈，我們只會對NT2產品進行微小的改進和升級。

In terms of our plans for the power swap station in 2024, as mentioned, we will be not only building our exclusive battery swap network but also a battery swap network for sharing. On the one hand, we will build this power swap network for other brands, or that can be shared with other brands. In the meantime, we will also be continuously looking at the demands of our new users, so that if there are any requirements or high demand stations or locations, we will also install stations there. But we are still working on the specific plans and numbers.

就我們2024年換電站的計劃而言，正如前面提到的，我們不僅會建造我們專有的換電網絡，而且還會建造一個共享的換電網絡。一方面，我們將為其他品牌建立這個換電網絡，或與其他品牌分享。同時，我們也會不斷關注新用戶的需求，如果有任何要求或高要求的站點或地點，我們也會在那裡安裝站點。但我們仍在研究具體的計劃和數字。

Our next question comes from Paul Gong with UBS. Please go ahead.

我們的下一個問題來自瑞銀集團的龔保羅。請繼續。

Hi, thanks for taking my question. My first question is regarding your sales force, sales team. I think in last quarter's earnings you mentioned that you are going to significantly increase your salespeople headcount. May I double-check, how is this proceeding at this moment? Have you achieved your original target of expanding the sales team, or have you adjusted your original plan?

您好，感謝您提出我的問題。我的第一個問題是關於你們的銷售團隊。我認為在上個季度的收益中，您提到您將大幅增加銷售人員人數。我可以再檢查一下，目前進展如何嗎？原來擴大銷售團隊的目標達成了嗎，還是調整了原來的計畫？

(Interpreted) Thank you, Paul. At present, for our frontline sellers, we have a team of around 5,700 persons, but many of them were just newly on board. Around 3,300 of them were newly on board into the Company and it still takes some time for them to really get to know the brands and also get familiar with the entire sales processes, because for the newly hired fellows, we will spend around one month and a half on the training and afterwards they can start to sell vehicles to our users.

（譯）謝謝你，保羅。目前，我們的第一線賣家團隊有5700人左右，但很多都是新入職的。其中大概有3300人是新入職的，他們真正了解品牌、熟悉整個銷售流程還需要一段時間，因為對於新入職的人員，我們會花一個月左右的時間，培訓完成一半後，他們就可以開始向我們的用戶銷售車輛。

According to our historical data, a seasoned fellow on average, will need to spend around six months to be familiar with the brands and the processes and will be coming a real sales force for the Company, so we need to stay patient with these newly hired fellows, as many of them just joined the Company in September and October.

根據我們的歷史數據，一個經驗豐富的人員平均需要花六個月左右的時間來熟悉品牌和流程，才能成為公司真正的銷售隊伍，所以我們需要對這些新員工保持耐心同事們，因為他們中的許多人是在九月和十月才加入公司的。

But in the meantime, we will also be completing and improving our assessment and evaluation systems, our training systems. We will also bring these fellows more efficient tools so that they can really make full use of their sales capacity and capability.

但同時，我們也會完善和完善我們的考核評鑑制度、訓練體系。我們也會為這些人帶來更有效率的工具，讓他們能夠真正充分發揮自己的銷售能力和能力。

Thanks, my second question is regarding the R&D spending. I think this quarter you had about RMB300 million quarter over quarter decline on the R&D and the explanation is some incentive from the local government. May you quantify that number and more importantly, going forwards what would be your projected quarterly R&D spending?

謝謝，我的第二個問題是關於研發支出的問題。我認為本季研發費用較上季下降了約 3 億元人民幣，原因是當地政府的一些激勵措施。您能否量化這個數字，更重要的是，您預期的季度研發支出是多少？

Yes. Stanley, you answer the question.

是的。史丹利，你回答這個問題。

Yes, hi, Paul. There are some slight decreases considering some support we received from the local authorities. But in the long run, as we mentioned during the past also earnings call, our non-GAAP R&D investments per quarter will also be kept at RMB3 billion to RMB3.5 billion.

是的，嗨，保羅。考慮到我們從地方當局獲得的一些支持，數量略有減少。但從長遠來看，正如我們在過去的財報電話會議中所提到的，我們每季的非公認會計準則研發投入也將維持在30億元至35億元。

As mentioned also mentioned by William in previous statements, we will ensure investment in core technologies and also maintain the advantages of technology and product and guarantee the timely launch of the new product. The investments, R&D, will not decrease, there will be a slight fluctuation across different quarters. Thank you, Paul.

正如William在先前的演講中也提到的，我們會確保核心技術的投入，同時也保持技術和產品的優勢，保證新產品的及時推出。研發投入不會減少，不同季度會有小幅波動。謝謝你，保羅。

Thank you, that's very helpful. Thank you.

謝謝，這非常有幫助。謝謝。

The next question comes from [Xue Deng] with CICC. Please go ahead.

下一個問題來自中金公司的[Xue Deng]。請繼續。

(Spoken in Chinese) My first question is regarding autonomous driving. We have already opened the submission of a wish list in September, so relying on Group intelligence we try to extend the (inaudible) function near (inaudible) cities, which is a little bit different from other OEMs. They open up city by city. So (inaudible) ideas on the implementation of the([inaudible) function is (inaudible). Also, I see that our target of the cumulative mileage of 60,000 kilometers by the end of this year, so how is our current progress?

（中文） 我的第一個問題是關於自動駕駛的問題。我們已經在 9 月開放了願望清單的提交，因此依靠集團情報，我們嘗試將（聽不清楚）功能擴展到（聽不清楚）城市附近，這與其他 OEM 略有不同。他們逐個城市地開放。所以（聽不清楚）關於實現（[聽不清楚）函數的想法是（聽不清楚）。另外，我看到我們的目標是今年年底累積行駛里程達到6萬公里，那麼目前進展如何？

(Interpreted) In terms of new NOP+ for cities, actually we leverage our generalization capabilities, as well as the (inaudible) AI capabilities, so that we can roll out this NOP, route by route, for our users based on their demand. Of course, in the meantime, we have also formulated the data closed loop capabilities where we can really leverage all this data coming from the generalization and also [code] AI

（解讀）針對城市的新NOP+，實際上我們利用我們的泛化能力，以及（聽不清楚）人工智慧能力，這樣我們就可以根據用戶的需求，逐條推出這個NOP。當然，同時，我們也制定了資料閉環功能，我們可以真正利用來自泛化和[程式碼]人工智慧的所有數據

At the NIO Day we have announced that by end of this year we're going to open up the routes covering around 60,000 kilometers of mileage and so far our progress is pretty good and we already have established the capabilities of releasing NOP+ for early bird users in more than 100 cities and we will be rolling out such service and invite our users into the program step by step, so that it can be covering more cities with more users gradually.

在NIO Day我們宣布，今年年底我們將開通6萬公里左右的航線，目前進展還不錯，已經具備了為早鳥用戶發布NOP+的能力我們將在100多個城市推出這項服務，並逐步邀請我們的用戶加入該計劃，以便逐步覆蓋更多的城市和更多的用戶。

Of course, in terms of in terms of city-based, route-based autonomous driving or NOP, we did see some of our peers, they have some marketing slogans regarding their services. But we believe that NOP+, especially NOP+ for cities, is a pretty serious service and we would like to make sure that our users have a safe and also good experience and then we will roll out the service and its coverage, step by step. But overall speaking, our progress has far surpassed our expectations and after all, we already have more than 100,000 vehicles running on the road. This will also help us to further formulate and improve our data closed loop.

當然，在基於城市、基於路線的自動駕駛或NOP方面，我們確實看到了一些同行，他們有一些關於他們的服務的行銷口號。但我們相信NOP+，尤其是針對城市的NOP+，是一項相當嚴肅的服務，我們希望確保我們的用戶有一個安全、良好的體驗，然後我們將逐步推出該服務及其覆蓋範圍。但總體來說，我們的進展遠遠超出了我們的預期，畢竟我們已經有超過10萬輛汽車在路上行駛。這也將有助於我們進一步製定和完善我們的數據閉環。

Especially for every new NIO NT2 vehicle, it is standard with (inaudible) and also 33 high performance sensors. This will further help us to formulate the data closed loop and improve the data capabilities and in return we will also accelerate the capabilities for iteration. This is also a very unique advantage of NIO, which is quite different from any other competitors offering a similar service.

特別是對於每輛新的 NIO NT2 車輛，它都標配（聽不清楚）以及 33 個高性能感測器。這將進一步幫助我們形成資料閉環，提升資料能力，同時也加速迭代能力。這也是蔚來非常獨特的優勢，與其他提供類似服務的競爭對手有很大不同。

(Spoken in Chinese) My second question is regarding overseas markets, will it still be one of our strategic focus? Could you please introduce the current operation situation of our overseas market this year regarding our sales volumes and our layout program for our core regions and also about the dealerships and the interest [structure] and also our next year's target and plan.

（中文）我的第二個問題是關於海外市場，它還會是我們的策略重點之一嗎？請您介紹我們今年海外市場的經營情況，包括我們的銷售量、我們核心區域的佈局方案以及經銷商和利益[結構]以及我們明年的目標和計劃。

(Interpreted) At the moment in five European countries, we have opened six NIO Houses, eight NIO spaces, two multi-function service centers and also partnered with 54 authorized service centers. We have also installed 30 power swap stations in five European countries.

（解說）目前，我們在歐洲5個國家開設了6家蔚來之家、8家蔚來空間、2家多功能服務中心，並與54家授權服務中心合作。我們也在五個歐洲國家安裝了 30 個換電站。

But in terms of our business development in Europe, we're still at the early stage of the business development and expansion. We want to continue to test the water, ensure we have good user experience, before we scale our operations and the business there. That's why volume is not a priority for us in terms of our European business and in the coming one year we will continue to stay at this stage. We will make sure that our capability and capacity are sufficient to serve our users in Europe before we start to work on a higher scale.

但就我們在歐洲的業務發展而言，我們仍處於業務發展和擴張的早期階段。我們希望繼續試水，確保我們擁有良好的用戶體驗，然後再擴大我們的營運和業務。這就是為什麼就我們的歐洲業務而言，銷售並不是我們的首要任務，在未來的一年裡，我們將繼續停留在這個階段。在我們開始更大規模的工作之前，我們將確保我們的能力和容量足以服務歐洲的使用者。

Your next question comes from Jason Getz with Mizuho Securities USA. Please go ahead.

您的下一個問題來自瑞穗證券美國公司的 Jason Getz。請繼續。

Hi, thanks for letting me ask a question. You talked a couple of months back about 20,000 vehicles a month in December, we're running a little bit below that now. What have been the biggest headwinds there, has there been some production challenges, maybe broader macro weakness and then, what would it take to get to that 20,000 units and how should we think about the run rate moving through 2024 with the new sales force?

你好，謝謝你讓我問一個問題。幾個月前您曾說過 12 月每月有 20,000 輛汽車，但我們現在的運行速度略低於這個數字。那裡最大的阻力是什麼，是否存在一些生產挑戰，也許是更廣泛的宏觀疲軟，然後，如何才能達到 20,000 輛單位，我們應該如何考慮新銷售隊伍到 2024 年的運行率？

(Interpreted) Thank you for your questions. As we have mentioned earlier today, in the premium battery electric vehicle segment priced over RMB300,000, NIO has realized the 45% market share in the third quarter of this year. Actually, our market share in this segment has been pretty stable, around 40%. This has proven that we have a relatively solid foothold in the premium BEV segment, we have a pretty significant also stable market share already established in the segment.

（翻譯）謝謝你的提問。正如我們今天早些時候提到的，在30萬元以上的高端純電動車領域，蔚來汽車今年第三季已實現45%的市場份額。事實上，我們在這個領域的市佔率一直很穩定，大約在40%左右。這證明我們在高端純電動車領域擁有相對穩固的立足點，我們在該領域建立了相當大且穩定的市場份額。

But when it comes to convincing users of premium ICE cars of buying a premium EV, it is actually more difficult than convincing mass market users. Because for the mass market users buying a car of RMB100,000 or RMB200,000, they pay attention to the ownership cost and also the usage cost of the product. But for the users of premium electric vehicles, they pay more attention to other factors.

但當涉及說服高端內燃機汽車用戶購買高端電動車時，實際上比說服大眾市場用戶更困難。因為對於購買10萬元、20萬元汽車的大眾市場用戶來說，他們關注的是產品的擁有成本，也關注的是產品的使用成本。但對於高端電動車的用戶來說，他們更關注其他因素。

The second reason that may be affecting the wider adoption of the premium BEV is regarding the coverage of infrastructure. As I have also shared, in the Yangtze River Delta areas, mainly Shanghai, Jiangsu and Zhejiang, we have a pretty significant market share. Our sales volume has outnumbered that of BMW, Audi and Mercedes with their ICE car sales. A very important reason behind is because we have 700 power swap stations already established in this area, so infrastructure is also playing a very important role in boosting the sales volume and the adoption of electric vehicles.

可能影響優質純電動車更廣泛採用的第二個原因是基礎設施的覆蓋範圍。我也介紹過，在長三角地區，主要是上海、江蘇、浙江，我們有相當大的市佔率。我們的銷量已經超過了寶馬、奧迪和賓士的內燃機汽車銷量。一個很重要的原因是因為我們在這個地區已經建立了700個換電站，所以基礎設施對於促進銷售和電動車的採用也發揮著非常重要的作用。

So far in China we have already installed over 2,000 power swap stations, but roughly 700 of them are along the highways. In some regions and areas our power swap stations are still not widely accessible. In this case, we will need to also speed up and enhance our infrastructure coverage so that we can further boost the wider adoption of electric vehicles, so basically two main reasons. The first is regarding the consumption habits of the premium vehicle users and the second is mainly because of the coverage of the infrastructure for electric vehicles.

到目前為止，我們在中國已經安裝了2,000多個換電站，其中約700個位於高速公路沿線。在一些地區和地區，我們的換電站仍然無法廣泛使用。在這種情況下，我們還需要加快和提高基礎設施覆蓋率，以便進一步推動電動車的更廣泛採用，所以基本上有兩個主要原因。一是高端車用戶的消費習慣，二是主要是電動車基礎設施的覆蓋範圍。

But we believe that this trend of convincing ICE users of buying EVs, or this overall trend of transforming into battery electric vehicles, will be picking up at speed. Because we also find that some of our peers and competitors, before they only had hybrid vehicles or range extended vehicles, but now they are also launching their battery electric vehicles. Such a strategy will also push the transformation of the entire industry, so we are actually happy to see such transformation.

但我們相信，說服內燃機汽車用戶購買電動車的趨勢，或轉變為純電動車的整體趨勢，將迅速加速。因為我們也發現，我們的一些同行和競爭對手，以前只有混合動力汽車或增程式汽車，但現在他們也推出了純電動車。這樣的策略也會推動整個產業的轉型，所以我們其實很高興看到這樣的轉型。

Also, many car companies are now also installing and expanding their charging network and NIO is working on our battery swap network. With wider infrastructure we will also boost the adoption of the battery electric vehicles. Overall speaking, we believe that 2024 will be better off than in 2023, because in 2024 we will also be having a more stable product portfolio, without frequent product launch and delivery, which has also slightly disturbed our overall execution.

此外，許多汽車公司現在也正在安裝和擴展他們的充電網絡，蔚來正在開發我們的電池交換網路。透過更廣泛的基礎設施，我們也將促進純電動車的採用。整體來說，我們認為2024年會比2023年更好，因為2024年我們也會有一個更穩定的產品組合，不會出現頻繁的產品上線和交付，這也對我們整體的執行力造成了輕微的干擾。

Got it, thanks and then a quick follow-up. On the battery swap partnership side, are there any kind of design changes that your partners will have to do to their vehicles in order for them to use the swap stations? If so, have you guys talked about what per cent of mix of vehicles they produce might need to be changed or edited in the production process in order to do battery swapping?

明白了，謝謝，然後快速跟進。在電池交換合作夥伴方面，您的合作夥伴是否需要對其車輛進行任何類型的設計變更才能使用交換站？如果是這樣，你們是否討論過他們生產的車輛組合中，有多少百分比可能需要在生產過程中進行更改或編輯才能進行電池更換？

(Interpreted) Actually we have shared the battery spikes and also the design details of our battery packs for the mass market brand to our battery swap partners. They will need to design and engineer their vehicle products, mainly chassis interfaces following our battery standards. It will take some time for them to decide on the right models and complete the product R&D, but the overall investment and R&D expenses for developing such new models based on our battery standards won't be very high.

（解釋）實際上，我們已經向我們的電池交換合作夥伴分享了電池尖峰以及大眾市場品牌電池組的設計細節。他們需要設計和製造他們的車輛產品，主要是遵循我們的電池標準的底盤介面。他們需要一些時間來決定合適的型號並完成產品研發，但根據我們的電池標準開發此類新型號的整體投資和研發費用不會很高。

Jason Getz Got it, thank you.

賈森蓋茲 明白了，謝謝。

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

由於沒有其他問題，現在我想將電話轉回公司進行結束語。

Thank you again for joining us today. If you have further questions, please feel free to contact NIO's Investor Relations team through the contact information provided on our website. This concludes today's 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，請隨時透過我們網站上提供的聯絡資訊聯絡蔚來投資者關係團隊。今天的電話會議到此結束。現在您可以斷開線路了，謝謝。