蔚來 (NIO) 2023 Q4 法說會逐字稿

Thank you for standing by for NIO Incorporated's Fourth Quarter and Full Year 2023 Earnings Conference Call. (Operator Instructions) 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.

感謝您出席蔚來汽車公司 2023 年第四季和全年財報電話會議。 （操作員指示）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 fourth quarter and full year 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.

大家早安，晚上好。歡迎參加蔚來第四季及 2023 年全年財報電話會議。該公司的財務和經營業績已在今天早些時候的新聞稿中發布，並發佈在該公司的投資者關係網站上。

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

今天的電話會議有創辦人、董事長兼執行長李威廉先生；馮峰先生，財務長；以及財務高級副總裁屈斯坦女士。

Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

在我們繼續之前，請注意今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。

Forward looking statements involve inherent risks and uncertainties.

前瞻性陳述涉及固有風險和不確定性。

As such, the company's actual results may be materially different from the views expressed today.

因此，公司的實際結果可能與今天表達的觀點有重大差異。

Further information regarding risks and uncertainties is included in certain filings of the company with the U.S. Securities and Exchange Commission, the Stock Exchange of Hong Kong Limited and the Singapore Exchange Securities Trading Limited.

有關風險和不確定性的更多資訊包含在該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。

The company does not assume any obligation to update any forward-looking statements except as required under applicable law.

除適用法律要求外，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 the unaudited GAAP financial information as well as unaudited non-GAAP financial 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。

Please refer to NIO's press release, which contains a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures. With that, I will now turn the call over to our CEO, Mr. William Li. William, please go ahead.

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。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。

Hello, everyone. Thank you for joining NIO's 2023 Q4 and full year earnings call. In Q4 of 2023, NIO delivered a total of 50,045 premium smart EVs, up 25% year-over-year. In 2023, NIO's cumulative delivery reached 160,038 units, representing a growth of 30.7% from 2022. In January and February of 2024, due to the seasonality of our industry and the Chinese New Year, NIO delivered 18,187 vehicles.

大家好。感謝您參加蔚來汽車 2023 年第四季及全年財報電話會議。 2023年第四季，蔚來累計交付高階智慧電動車50,045輛，較去年同期成長25%。 2023年，蔚來汽車累計交車量達16萬輛，較2022年成長30.7%。2024年1月及2月，由於產業季節性及農曆新年，蔚來汽車交車量為18,187輛。

On March 7, NIO will start to deliver the 2024 models, featuring enhanced performance and experience.

3月7日，蔚來將開始交付2024款車型，性能與體驗都將增強。

With that, NIO's sales will gradually bounce back and the total deliveries in Q1 is expected to be between 31,000 to 33,000 units. In terms of NIO's financial performance, with continuous improvements on the [bond] cost, the vehicle gross margin increased to 11.9% in Q4.

預計蔚來汽車銷售將逐步回升，第一季總交付量預計在3.1萬至3.3萬輛之間。從蔚來財務表現來看，隨著[債券]成本持續改善，第四季整車毛利率提升至11.9%。

Now, I would like to share with you the recent highlights of our products, R&D and operations. On December 23, NIO Day 2023 was held in Xi'an, Shaanxi Province, where the smart electric executive flagship, NIO ET9 was unveiled. ET9 embodies NIO's full-stack capabilities and the global leading technologies, featuring core technologies such as in-house developed AD chip, NX9031; full-domain 900 volt architecture; SkyRide chassis system; and the flagship safety and security. ET9 defines the technology standard for the next-generation premium smart EVs.

以下我跟大家分享我們近期的產品、研發和營運的亮點。 12月23日，2023蔚來日在陝西西安舉行，智慧電動行政旗艦蔚來ET9亮相。 ET9體現了蔚來全端能力與全球領先技術，擁有自主研發的AD晶片NX9031等核心技術；全局900伏架構； SkyRide底盤系統；以及旗艦安全和安保。 ET9定義了下一代高階智慧電動車的技術標準。

The delivery will start in Q1 2025.

交付將於 2025 年第一季開始。

In the meantime, NIO will soon start to deliver its 2024 models with the configuration and the performance upgrades, including the brand new Central Computing Cluster, Adam, which brings the computing power to a new level. Enabled by the industry's highest computing power, NIO's software release has become faster, making our products more competitive.

同時，蔚來即將開始交付2024款車型，其配置和性能都進行了升級，其中包括全新的中央計算集群Adam，它將計算能力提升到一個新的水平。在業界最高算力的加持下，蔚來的軟體發表速度變得更快，讓我們的產品更具競爭力。

With respect to NIO Assisted and Intelligent Driving or NAD, NIO's collective intelligence capability has seen better growth, with the total validated urban mileage increasing a 100 volt in five months. As of the end of January, Navigate on Pilot Plus were validated and made available more than 1 million kilometers of roads in China, including 650,000 kilometers of complicated urban driving scenarios in 606 cities.

在蔚來輔助智慧駕駛（NAD）方面，蔚來的集體智慧能力得到了更好的成長，五個月內驗證的城市總里程增加了100伏特。截至1月底，Navigate on Pilot Plus在中國已驗證並上線超過100萬公里道路，其中包括606個城市的65萬公里複雜城市駕駛場景。

In Q2, the NOP+ for urban roads is expected to be released to all NT2 users, which will make this OTA update the largest public release of its kind in China. Through computing sharing across different domains on the Central Computing Cluster, NOMI GPT, a multi-modal large vision model will be released soon, making the cockpit smarter and more secure. In addition, NIO's mass market brand will make its debut in Q2.

第二季度，城市道路NOP+預計將向所有NT2用戶發布，這將使本次OTA更新成為國內此類OTA更新中最大規模的公開發布。透過中央運算叢集上跨域的運算共享，NOMI GPT多模態大視覺模型即將發布，讓座艙更聰明、更安全。此外，蔚來大眾市場品牌將於第二季首次亮相。

The first product will be launched in Q3 with the mass deliveries to start in Q4.

第一款產品將於第三季推出，第四季開始大量交付。

As for the sales and service network, so far, NIO has 148 NIO Houses and 352 NIO Spaces, as well as 314 service centers and 62 delivery centers.. About the charging and swapping networks, to-date NIO have 2,419 power swap stations worldwide, providing over 39.5 million swaps cumulatively. It also has installed over 10,000 power chargers and 11,600 destination chargers.

在銷售和服務網絡方面，截至目前，蔚來擁有148個蔚來之家和352個蔚來空間，以及314個服務中心和62個交付中心。在充換電網絡方面，蔚來目前在全球擁有2419個換電站累計提供超過3950萬筆掉期。它還安裝了10,000多個充電器和11,600多個目的地充電器。

During the Chinese New Year, on the previous date, NIO completed 19,199 swaps, (inaudible) stations on highway provides to 195 swaps. Battery swap has become the most reliable solution for NIO users. Following the battery swap cooperation with Changan and Geely, another two strategic cooperation agreement was signed with JAC and Chery in January.

在前一天的農曆新年期間，蔚來汽車完成了 19,199 次互換，高速公路（聽不清楚）站點提供了 195 次互換。換電已成為蔚來用戶最可靠的解決方案。繼與長安、吉利進行換電合作後，1月又與江淮、奇瑞簽署了兩項戰略合作協議。

NIO will rollout comprehensive and in-depth cooperation on battery swap with these partners.

蔚來汽車將與這些合作夥伴在換電方面展開全面、深入的合作。

Moreover, NIO has partnered with multiple energy companies, such as Anhui Energy Group and the China Southern Power Grid to jointly build swap stations. The value of our battery swap has been appreciated by more people, making a holistic chargeable, swappable and upgradable solution, a well-recognized the core advantage of NIO. In 2024, NIO plans to build 1,000 new battery swap stations and 20,000 chargers, bringing the total to over 3,310 swap stations and 41,000 chargers by the end of 2024.

此外，蔚來也與安徽能源集團、南方電網等多家能源公司合作，共同興建換電站。換電的價值被更多人認可，可充電、可換電、可升級的整體解決方案成為蔚來汽車公認的核心優勢。 2024年，蔚來計畫新建1,000個換電站和20,000個充電樁，到2024年底，換電站總數將超過3,310個，充電樁數量將超過41,000個。

Regarding the capital market, in December, NIO received USD 2.2 billion strategic investment from an Abu Dhabi investor CYVN Holdings. The investment has further strengthened NIO's balance sheet, laying a solid foundation for NIO's investment into the next-generation core technologies and products.

資本市場方面，12月，蔚來汽車獲得阿布達比投資者CYVN Holdings 22億美元策略投資。這項投資進一步增強了蔚來的資產負債表，為蔚來投資下一代核心技術和產品奠定了堅實的基礎。

Shouldering the corporate social responsibility and supporting global sustainable development, NIO always have stayed true to its foundation vision of Blue Sky Coming. In general, NIO was selected by Corporate Knights into the 2024 Global 100 Most Sustainable Companies, making to the list for the second time in a row.

肩負企業社會責任，支持全球永續發展，蔚來始終堅守「藍天來臨」的創業願景。整體而言，蔚來汽車入選《Corporate Knights》2024年全球最具永續發展企業100強，這是蔚來汽車連續第二次上榜。

NIO was placed 15th among more than 6,000 companies worldwide, up 29 spots from last year.

蔚來汽車在全球 6,000 多家公司中排名第 15 位，比去年上升了 29 位。

As the competition intensified in 2024, we see both challenges and opportunities with faster deployment of charging and swapping facilities, and the change in consumer behavior, the premium BEV segment to which NIO brand belongs will soon arrive at an inflection point of growth.

2024年，隨著競爭的加劇，挑戰與機會並存，充換電設施的加速部署以及消費者行為的改變，蔚來品牌所屬的高端純電動車細分市場即將迎來成長轉折點。

In the second half, a new brand for the mass market will also become our growth lever. In 2024, we will continue to focus on the corporate top priority; level-up system capabilities, strengthen [cost mindset] and the cost to management so as to bring our A game to the next phase of the competition.

下半年，面向大眾市場的新品牌也將成為我們的成長槓桿。 2024年，我們將持續聚焦企業重中之重；提升系統能力，強化【成本思維】和成本管理，讓我們的A遊戲進入下一階段的競爭。

As always, thank you for your support. With that, I will now turn the call over to Steven for Q4's financial details. 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，以了解第四季度的財務詳細資訊。交給你了，史蒂文。

Thank you, William. I will now go over our key financial results for the fourth quarter of 2023. And 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 2023 年第四季的主要財務業績。為了注意本次電話會議的長度，我將在今天的討論中僅提及人民幣。我鼓勵聽眾參考我們發佈在網路上的收益新聞稿，以了解更多詳細資訊。

Let me start with revenue. For the fourth quarter of 2023, total revenues reached RMB 17.1 billion, up 6.5% year-over-year and down 10.3% quarter-over-quarter.

讓我從收入開始。 2023年第四季，總營收達171億元，年增6.5%，季減10.3%。

90% of revenue comes from vehicle sales in Q4, which was RMB 15.4 billion, representing an increase of 4.6% year-over-year and a decrease of 11.3% quarter-over-quarter. The improvement year-over-year was driven by growing delivery volume, despite the impact of lower average selling price, resulted from product mix changes. The decrease quarter-over-quarter was mainly attributed to a decrease of 9.3% in delivery volume.

第四季90%的營收來自汽車銷售，為154億元，年增4.6%，季減11.3%。儘管產品結構變化導致平均售價下降，但交付量的成長推動了同比成長。環比下降的主要原因是交付量下降9.3%。

Moving to other sales. Other sales reached RMB 1.7 billion, growing 27.6% year-over-year and 0.4% quarter-over-quarter. The year-over-year increase was mainly due to increased sales in accessories and the provision of power solutions, which both grew with our user base. Then, let's have a look at the gross margin.

轉向其他銷售。其他銷售額達到人民幣17億元，較去年成長27.6%，季增0.4%。同比增長主要是由於配件銷售和電源解決方案的提供增加，這兩者都隨著我們的用戶群的增長而增長。然後，我們來看看毛利率。

Overall gross margin was 7.5% compared with 3.9% in the same period of last year and 8.0% in the last quarter. The increase year-over-year was mainly attributed to the increased vehicle margin. The slight decrease quarter-over-quarter was due to the decrease in margin from provision of power solutions as a result of expanded power network, even though vehicle margin was growing.

整體毛利率為7.5%，去年同期為3.9%，上季為8.0%。年成長主要歸因於車輛利潤率的增加。儘管車輛利潤率正在成長，但由於電網擴張，提供電力解決方案的利潤率下降，環比略有下降。

A closer look at vehicle margin, which was up to 11.9% in this quarter compared with 6.8% in Q4 2022 and 11.0% in Q3 2023. The year-over-year increase was mainly due to the decreased material cost per unit in Q4 2023 and lower base in Q4 2022, which resulted from the inventory provisions, accelerated depreciation on production facilities and the losses on purchase commitments for the previous generation of ES8, ES6 and EC6 recorded.

仔細觀察整車利潤率，本季高達 11.9%，而 2022 年第四季為 6.8%，2023 年第三季為 11.0%。年成長主要是由於 2023 年第四季單位材料成本下降2022 年第四季季度基數較低，這是由於庫存撥備、生產設施加速折舊以及記錄的上一代ES8、ES6 和EC6 的採購承諾損失所致。

Let me move on to the operating expenses. R&D expenses were RMB 4.0 billion, remained stable year-over-year and increased 30.7% quarter-over-quarter.

讓我繼續討論營運費用。研發費用為人民幣40億元，較去年同期維持穩定，較上季成長30.7%。

The increase was mainly driven by incremental design and development costs for new products and technologies and higher personnel costs in R&D functions. SG&A expenses were RMB 4.0 billion; increased 12.6% year-over-year and 10.1% quarter-over-quarter, which was mainly related to higher personnel costs in sales functions and increased sales and marketing activities.

這一成長主要是由於新產品和新技術的設計和開發成本增加以及研發職能人員成本增加。 SG&A 費用為人民幣 40 億元；年成長12.6%，季增10.1%，主要與銷售職能人員成本增加以及銷售和行銷活動增加有關。

Let's move further to the bottom line. Loss from operations was RMB 6.6 billion, representing a decrease of 1.6% year-over-year and an increase of 36.8% quarter-over-quarter. Interest and investment income was RMB 1.4 billion, increased 288.7% year-over-year and 375% quarter-over-quarter. The increase was primarily attributed to the recycling of unrealized gains from other comprehensive income to investment income of RMB 977.3 million for the available-for-sale debt related to upstream industry investment.

讓我們進一步討論底線。經營虧損為人民幣66億元，較去年同期下降1.6%，較上季成長36.8%。利息及投資收益14億元，較去年成長288.7%，較上季成長375%。增加的主因是與上游產業投資相關的可供出售債務將其他綜合收益未實現收益回收至投資收益人民幣9.773億元。

Net loss was RMB 5.4 billion, representing a decrease of 7.2% year-over-year, and an increase of 17.8% quarter-over-quarter.

淨虧損為人民幣54億元，年減7.2%，較上季增加17.8%。

Last but not least, our balance sheet gets strengthened with RMB 57.3 billion in cash and cash equivalents, restricted cash, short-term investments and long-term time deposits as of December 31, 2023.

最後但並非最不重要的一點是，截至 2023 年 12 月 31 日，我們的資產負債表得到加強，現金及現金等價物、限制性現金、短期投資和長期定期存款為 573 億元。

For more information details of our unaudited 2023 full year financial results, please refer to our earnings press release. Now, this concludes our prepared remarks. I will now turn the call over to the operator to facilitate our Q&A session.

有關我們未經審計的 2023 年全年財務業績的更多信息，請參閱我們的收益新聞稿。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。

(Operator Instructions) Your firs question comes from Tim Hsiao from Morgan Stanley.

（操作員指示） 您的第一個問題來自摩根士丹利的 Tim Hsiao。

I have two questions. The first one is about our upcoming mass-market agreement with Alps. So is NIO still targeting to launch and deliver the first model on the Alps in [late third] quarter? And separately, as it is just less than two quarters away, could you share more information about the channel strategy, targeted numbers of stores, store types and the scale of our charging network et cetera. So any additional colors about Alps would be highly appreciated.

我有兩個問題。第一個是關於我們即將與阿爾卑斯山達成的大眾市場協議。那麼蔚來是否仍計劃在[第三]季度末在阿爾卑斯山推出並交付第一款車型？另外，由於距離只有不到兩個季度的時間，您能否分享更多有關渠道策略、目標商店數量、商店類型以及我們的充電網絡規模等的信息。因此，任何有關阿爾卑斯山的其他顏色都將受到高度讚賞。

So that's my first question.

這是我的第一個問題。

Thank you for the question. As I've mentioned in the prepared remarks, in the second quarter of this year, we are going to unveil our second brand, the brand for the mass market. And in the third quarter, we will launch the very first product of this new brand, and the mass release and delivery will be starting from the fourth quarter of this year. Actually, the verification build, the [baby build] of this car already rolled off the line in Q4 last year and we were pretty satisfied with the conditions of that build.

感謝你的提問。正如我在準備好的發言中提到的，今年第二季度，我們將推出第二個品牌，即面向大眾市場的品牌。第三季度，我們將推出這個新品牌的首款產品，並從今年第四季開始大量發布和交付。事實上，這輛車的驗證版本，[嬰兒版本]已經在去年第四季下線，我們對這個版本的條件非常滿意。

In terms of the sales and service network of this new brand, for the point of sales, it will have its separated and independent sales network. But in terms of the after-sales services and the touch points, we do can leverage the existing service resources of the new brands.

在這個新品牌的銷售和服務網絡方面，從銷售點來看，它將擁有獨立的銷售網絡。但在售後服務和接點方面，我們確實可以利用新品牌現有的服務資源。

In terms of the power swap network, we've previously mentioned that for the power swap network, we have a private network and a public network, similar to the cloud infrastructure and cloud service.

在換電網路方面，我們之前提到，對於換電網絡，我們有一個私人網路和一個公有網絡，類似雲端基礎設施和雲端服務。

For the private network, basically, it's the power swap stations and the facilities that's designated and exclusive to the new brand. But in addition to that, we have a public network where we will share the power swapping resources with not only our second brand as well as other car companies. As you've also show -- know that we've already signed the agreements with several car companies and more will join the public service facility as well.

對於專用網路來說，基本上就是一個換電站和新品牌專用的設施。但除此之外，我們還有一個公共網絡，我們不僅可以與我們的第二個品牌以及其他汽車公司分享換電資源。正如您還表明的那樣，我們已經與多家汽車公司簽署了協議，更多汽車公司也將加入公共服務設施。

Our fourth generation power swap station will have the compatibility for both NIO products as well as Alps products, and we will start to build the fourth generation swap stations from April this year. Previously, we've mentioned that in 2024, we are going to install another 1,000 swap stations, and most of these stations will be fourth generation stations for the public network.

我們的第四代換電站將相容於蔚來產品和阿爾卑斯產品，我們將從今年4月開始建造第四代換電站。先前我們提到，到2024年，我們將再安裝1000個交換站，其中大部分將是公共網路的第四代交換站。

Really appreciate all the details. So my second question is now on the margin target because I recall that, back to third quarter results, I think the management team mentioned that vehicle gross profit margin for 2024, i.e. this year would be around 15% to 18%. And there could be additional like 0.5% margin uptick contributed by in-house production. So based on current market environment and competitive landscape, do you still maintain the same target this year or [ripped] for any potential changes to the margin target?

真的很欣賞所有的細節。所以我的第二個問題現在是關於利潤率目標，因為我記得，回到第三季的業績，我認為管理團隊提到2024年，也就是今年，汽車毛利率將在15%至18%左右。內部生產可能還會帶來 0.5% 的額外利潤成長。那麼，基於目前的市場環境和競爭格局，今年您是否仍維持相同的目標，還是因利潤率目標可能改變而[撕裂]？

That's my second question.

這是我的第二個問題。

Tim, about the margin, yes, for the whole year, I think we keep this 15% to 18% target. But the quarter to -- by quarter, I think there will be some change. As you may know, we will upgrade our -- all our NT2 product to 2024 version in March. And during the transition of old and new products, more promotions are offered for the old models, leading to the decrease of gross profit margin in Q1.

提姆，關於利潤率，是的，我認為全年我們都會保持 15% 到 18% 的目標。但我認為每季都會發生一些變化。如您所知，我們將於 3 月將所有 NT2 產品升級至 2024 版本。而新舊產品過渡期間，老款促銷力度加大，導致第一季毛利率下降。

But starting from Q2, along with the volume ramp up of our 2024 version and also the further cost optimization activities as we mentioned, we believe our vehicle margin can come back to an upward trend. And so, starting from Q2, we are confident that 15% to 18% weaker margin can be achieved for NIO brands.

但從第二季開始，隨著 2024 年版本銷售的增加以及我們提到的進一步成本優化活動，我們相信我們的車輛利潤率可以恢復上升趨勢。因此，從第二季開始，我們有信心蔚來品牌的利潤率可以達到 15% 至 18% 的下降。

And from a long run, our target -- our margin target for NIO brand will also be over 20%.

從長遠來看，我們的目標－蔚來品牌的利潤率目標也將超過20%。

Your next question comes from Ben Wang from Deutsche Bank.

您的下一個問題來自德意志銀行的 Ben Wang。

My first question is about 2024 volume targets. In the mid-year report, you target 200,000 units for the full year '24, which means 25% growth. Can you confirm whether this is your target? That's number one question. Number two is about a second product from the NIO brand, mass market brand.

我的第一個問題是關於 2024 年的銷售目標。在年中報告中，您的目標是 24 年全年銷量達到 20 萬台，這意味著成長 25%。您能確認這是否是您的目標嗎？這是第一個問題。第二個是關於蔚來品牌（大眾市場品牌）的第二個產品。

In a recent interview, Wei actually mentioned a full-size SUV bigger than the first one. There will be a second product followed by MPV. Can I confirm this is your plan for the -- your plan in the next second and third products?

在最近的一次採訪中，魏實際上提到了一款比第一款更大的全尺寸SUV。 MPV之後也將推出第二款產品。我可以確認這是您對下一個第二和第三個產品的計劃嗎？

Thank you for the question. Definitely, for this year, the competition is going to be -- continue to be intense. But as we've also mentioned that we will be having our products for the 2024 model with enhanced performance, especially much better computing power, the computing power will continue to lead the global market. So this will help us to improve the overall competitiveness of our investing into products. This year, we will focus on accelerating the software release so that we can release more new (technical difficulty) on the chips and computing power.

感謝你的提問。毫無疑問，今年的競爭將持續激烈。但正如我們也提到的，我們的2024模型的產品將具有增強的性能，特別是更好的運算能力，運算能力將繼續領先全球市場。所以這將有助於我們提高產品投資的整體競爭力。今年我們會專注於加快軟體發布，以便在晶片和算力上發布更多新的（技術難度）。

And also in the second quarter, we are going to release our NOP+ for urban roads to all the NT2 users.

同樣在第二季度，我們將向所有 NT2 用戶發布適用於城市道路的 NOP+。

By doing this public release, we can also enhance the competitiveness of the products. Plus, we also have other new features like large language models, large vision models and the NOMI GPT et cetera.

透過這次公開發布，我們也可以增強產品的競爭力。另外，我們還有其他新功能，如大型語言模型、大型視覺模型和 NOMI GPT 等。

In terms of our sales channel and the network, so far, we have around 500 NIO Houses and NIO Spaces, and we will continue to enlarge the reach of our sales and service network to the lower-tier cities. And in the meantime, from last year, we have enlarged our sales force as the team is getting more matured and skillful with the sales and getting more -- getting better understanding of our products. We also see this sales force start to kick in, especially in our delivery results for the February.

在銷售管道和網路方面，目前我們擁有約500家蔚來之家和蔚來空間，我們將繼續將銷售和服務網路擴展到低線城市。同時，從去年開始，我們擴大了銷售隊伍，團隊變得更加成熟，銷售技巧更加嫻熟，並且對我們的產品有了更好的了解。我們也看到這支銷售團隊開始發揮作用，特別是在我們二月的交付結果中。

Inside of the BEV segment or the new energy vehicle market, our delivery results in February was actually pretty good, especially in comparison to our results in January. This has also reflected the effectiveness and the efficiency of our sales force and also sales channel enlargement.

在純電動車領域或者說新能源汽車市場裡面，我們2月份的交付​​成績其實還是不錯的，特別是和1月的成績相比。這也反映了我們銷售團隊的有效性和效率以及銷售管道的擴大。

And thirdly, we will also continue to deploy our power swapping network.

第三，我們也將繼續部署我們的換電網路。

As I've mentioned, we will deploy both public network and private networks for NIO and for Alps. And for our power swap network this year, we will mainly serve the purpose of boosting sales volume because we already have more than 2,000 swap stations. So we basically have established initial network for the power swap services, and now we will focus more on boosting sales via installing these stations.

正如我所提到的，我們將為 NIO 和 Alps 部署公共網路和專用網路。今年換電網路主要是為了銷量，因為我們已經有2000多個換電站了。所以我們基本上已經建立了初步的換電服務網絡，現在我們將更加專注於透過安裝這些換電站來促進銷售。

So overall speaking, we are confident with our sales and the delivery results this year. As in our guidance, in the first quarter of this year, we are going to deliver around 31,000 to 33,000 units. In March, as whether it gets better and the market gets more dynamic and vibrant, we are also confident that our sales volume will increase.

總的來說，我們對今年的銷售和交付結果充滿信心。根據我們的指導，今年第一季度，我們將交付約 31,000 至 33,000 輛。進入3月，無論天氣好轉，市場更加活躍，我們也對銷量的成長充滿信心。

For the mid-term, we hope that our sales volume can still be back to around 20,000 units per month, and we hope that this can happen sooner.

對於中期來說，我們希望我們的銷量仍然可以回到每月20,000台左右，而且我們希望這能早點發生。

And for your second question about our mass market brand, some media has already captured some of our publicly tested vehicles on the roads and also reported some sneak peeks of our very first product. For our second brand, as we've previously introduced, its overall positioning is to target at the family-oriented users, basically families of different sizes or for family of different sizes, we are going to launch different sizes of vehicles, but all with strong product competitiveness.

關於你關於我們大眾市場品牌的第二個問題，一些媒體已經捕捉到了我們在道路上公開測試的一些車輛，並且還報道了我們第一個產品的一些先睹為快。對於我們第二個品牌，我們之前介紹過，它的整體定位是面向家庭用戶，基本上是不同規模的家庭，或者說針對不同規模的家庭，我們會推出不同尺寸的車輛，但是都是針對不同規模的家庭。強大的產品競爭力。

As we started relatively late in the family-oriented segment, we do can leverage such opportunities to better look into the real demand of the target users and launched competitive products accordingly. The first product of our mass market brand will have head-on on competition with the most popular model of Tesla, that is Model Y. But our car will support battery swap. So in terms of the cost and performance, we believe that this model will be highly competitive.

由於我們在家庭細分領域起步較晚，我們確實可以利用這樣的機會，更好地了解目標用戶的真實需求，並相應地推出有競爭力的產品。我們大眾市場品牌的第一款產品將與特斯拉最受歡迎的車型Model Y正面競爭。但我們的汽車將支援電池更換。所以從成本和性能上來說，我們相信這款車型將會具有很強的競爭力。

In terms of the BOM cost, it will be roughly 10% lower than that of Model Y, which also gives us better flexibility for the product pricing.

從BOM成本來看，它會比Model Y低10%左右，這也為我們在產品定價上提供了更好的彈性。

And the second model of our mass market brand will be a SUV model for the large family. The R&D is in good progress. We have already kicked off the toolings for the second model, and this car will be launched in 2025. And the third model is also underway. We have already started product designation and R&D, but it's too early to share the information, and we will disclose more information when it's appropriate.

我們大眾市場品牌的第二款車型將是一款面向大家庭的SUV車型。研發工作進展順利。我們已經啟動了第二款車型的模具製作，這款車將於 2025 年推出。第三款車型也在進行中。我們已經開始產品指定和研發，但現在分享資訊還為時過早，我們會在適當的時候透露更多資訊。

Your next question comes from Yuqian Ding from HSBC.

你的下一個問題來自匯豐銀行的丁宇謙。

Thanks, team. Yuqian here. I've got two questions. The first is, we want to understand what is management's priority or strategy between pricing and volume? We noticed that the company acted quite refrained in pricing among universal price action from peers.

謝謝，團隊。雨倩來了我有兩個問題。首先，我們想了解管理階層在定價和銷售之間的優先順序或策略是什麼？我們注意到，在同業普遍的價格行為中，該公司的定價行為相當克制。

Has that been -- we have been seeing the ticket price rather stable. So does that read as more profitability as a priority over volume for this year or it's a rope-a-dope tactic before our new mass market brand coming to the market? That's the first one.

我們一直看到票價相當穩定。那麼，這是否意味著今年的獲利能力優先於銷量，還是我們新的大眾市場品牌進入市場之前的一種繩索策略？這是第一個。

Thank you for the question. Starting in the second half of this year, NIO Group will sell two brands simultaneously. So strategy-wise, we have also differentiated for these two brands. For the NIO brand for this -- for now, we will not sell any products that will be cheaper than the existing ET5. Even for the products in our pipeline, we will be targeting at the premium segment, which means that our products for the NIO brand will be more gross margin oriented.

感謝你的提問。從今年下半年開始，蔚來集團將同時販售兩個品牌。所以在策略上，我們也對這兩個品牌進行了差異化。對於蔚來品牌來說，目前我們不會銷售任何比現有ET5更便宜的產品。即使對於我們正在開發的產品，我們也將瞄準高端市場，這意味著我們的蔚來品牌產品將更加以毛利率為導向。

We will be carrying more on the gross profit of our product than the volume. So we will not cut the prices. We'll enter the price war. We will not realize higher volume at the cost of our compromised margin or gross profit.

我們產品的毛利將超過銷售量。所以我們不會降價。我們將進入價格戰。我們不會以犧牲利潤或毛利為代價來實現更高的銷量。

And for the second brand, the brand for the mass market, it is targeted at the mass market and also for the family-oriented users, where the competition is also more intense. But luckily, it can leverage the existing electrification and smart technologies and infrastructures already developed by NIO.

而對於第二個品牌，面向大眾市場的品牌，它針對的是大眾市場，同時也是面向家庭用戶，競爭也更加激烈。但幸運的是，它可以利用蔚來已經開發的現有電氣化和智慧技術和基礎設施。

So it has certain advantages than starting a completely new brand from the ground up. For this second brand, we will be focusing more on the volume. So the volume is prioritized over the gross margin of the products. That's the overall strategy for these two brands. We believe that with this combined brand portfolio, it will also help us to realize a healthier, long-term sustainable development and operations.

因此，它比從頭開始創建一個全新品牌具有一定的優勢。對於第二個品牌，我們將更加關注銷售。因此，銷量優先於產品的毛利率。這是這兩個品牌的整體策略。我們相信，透過這個聯合的品牌組合，也將幫助我們實現更健康、長期的永續發展和營運。

Got it. And my second question is, the recent two sessions talked about supporting SOEs to move more aggressively on the EV without constraint on the profitability. So it looks like another pressure and making the industry harder and harder to consolidate. So thanks for the strong color on the new mass market brand and value proposition. I guess, this is us changing the way of asking other than the strong product, are we aggressive enough on the pricing?

知道了。我的第二個問題是，最近兩次會議都談到支持國有企業在不限制獲利能力的情況下更積極地發展電動車。因此，這看起來像是另一種壓力，使該行業越來越難整合。因此，感謝新的大眾市場品牌和價值主張的強烈色彩。我想，這是我們改變了詢問方式，除了強大的產品之外，我們在定價上是否足夠激進？

You talked about the volume priority, but if the pressure is going to be overhang for longer, are we be ready for being aggressive on the pricing for longer?

您談到了銷售優先，但如果壓力將持續更長時間，我們是否準備好在更長時間內積極定價？

It's true that doing business in China, it's inevitable that we will face competitions coming from all types of car companies, including companies like Tesla, many start-ups from China, private companies well-established ones in China and also joint ventures and the state-owned enterprises. Overall speaking, the China's automotive market is a highly open market and such competition can actually benefit or bring benefits to the end users.

誠然，在中國做生意，我們不可避免地會面臨來自各類汽車公司的競爭，包括特斯拉這樣的公司、許多來自中國的新創公司、中國成熟的私人企業以及合資企業和國家企業。獨資企業。整體而言，中國汽車市場是一個高度開放的市場，這樣的競爭實際上能夠讓最終用戶受益或帶來好處。

However, it can be more difficult and challenging for car companies. But we believe that by the end of the day, those companies with good overall capabilities and competence as well as those companies who care about the experience of the end users will survive from the fierce competition. And we are confident that we will withstand such competition from all the competitors.

然而，對於汽車公司來說，這可能會更加困難和更具挑戰性。但我們相信，最終，那些綜合能力和競爭力較好的公司以及那些關心最終用戶體驗的公司將在激烈的競爭中生存下來。我們有信心能夠經得起所有競爭對手的競爭。

But in the meantime, we also see cooperations out of the competition. For example, we have announced power swap cooperation with many car companies.

但同時，我們也看到了競爭中的合作。例如我們已經宣布與許多車企進行換電合作。

China Automobile is the first car company to partner with NIO in power swap. Later, we also collaborated with Geely Holding, JAC Group and Chery on the battery swap.

神州汽車是第一家與蔚來汽車進行換電合作的車企。後來我們也和吉利控股、江淮集團、奇瑞合作進行電池更換。

We also have partnerships with energy companies like Sinopec and PetroChina for the construction of power swap stations as well as with China Southern Power Grid on the energy storage as well as power swap stations. So in general, NIO is pretty good at partnering up with the peers in the industry. Since the competition is inevitable, we would like to look at how we can navigate through the intense competition from the reasonability of the business perspective.

我們也與中石化、中油等能源公司合作興建換電站，與南方電網合作興建儲能及換電站。所以總的來說，蔚來在與業界同行的合作方面還是比較擅長的。既然競爭是不可避免的，那麼我們想從商業的合理性角度來思考如何在激烈的競爭中度過難關。

Your next question comes from Ming-Hsun Lee from Bank of America.

您的下一個問題來自美國銀行的 Ming-Hsun Lee。

So I also have two questions. So first question is regarding the overseas market. Do you expect NIO to enter the new countries this year? Will you cooperate with more local distributors in other overseas market or you will maintain the direct sales business model? Also do you have any overseas sales target for this year?

所以我也有兩個問題。第一個問題是關於海外市場。您預計蔚來汽車今年會進入新的國家嗎？您會在其他海外市場與更多當地經銷商合作還是維持直銷業務模式？另外今年海外銷售有什麼目標嗎？

That's my first question.

這是我的第一個問題。

Thank you for the question. Regarding the global market or international markets, at the moment, we will still primarily focus on the Chinese market as it is the largest and also the most competitive market for the automotive industry. But, in the meantime, we will not stop our exploration into the international markets.

感謝你的提問。對於全球市場或國際市場，目前我們還是會主要關注中國市場，因為它是汽車產業最大、也是競爭最激烈的市場。但同時，我們也不會停止對國際市場的探索。

So far, we have already entered five European countries, and we will keep refining our operations and management in these five European countries. And this year, we are also planning to enter into several new countries. For example, UAE, as we are invested by the Abu Dhabi strategic investors So we are also preparing for the market entry and the sales and service in that market.

目前，我們已經進入歐洲五個國家，我們將持續改善在這五個歐洲國家的運作和管理。今年，我們也計劃進入幾個新的國家。例如阿聯酋，因為我們是阿布達比策略投資者投資的，所以我們也在準備進入該市場以及在該市場的銷售和服務。

For the other countries, we are more waiting to see the development of the conditions and strategic wise, we will also become more flexible because there are two major changes.

對於其他國家，我們更多的是觀望條件和策略的發展，我們也會變得更加靈活，因為有兩個重大變化。

The first change is that as we will soon have our mass market brand and the next year, we are going to announce our third brand. The price will be below RMB 200,000, which means that with all three brands combined, we will be able to cover larger markets with more segments, because NIO as a brand, primarily focused on the premium segment, basically China, U.S. and Europe.

第一個變化是，我們很快就會擁有大眾市場品牌，明年我們將宣布我們的第三個品牌。價格將低於20萬元人民幣，這意味著三個品牌結合起來，我們將能夠覆蓋更大的市場、更多的細分市場，因為蔚來作為一個品牌，主要專注於高端細分市場，基本上是中國、美國和歐洲。

These three continents contribute 90% of the sales of the premium segment. But for our second and third brands, as they are more affordable, they will be standing a bigger chance of tapping into a more diversified markets and in more regions. So our global market entry will also take these three brands into consideration.

這三大洲貢獻了高端細分市場 90% 的銷售額。但對於我們的第二和第三品牌來說，由於價格更實惠，他們將有更大的機會進入更多元化的市場和更多地區。所以我們的全球市場進入也會考慮這三個品牌。

And the second change is regarding our strategy entering into each market.

第二個變化是我們進入各個市場的策略。

At the moment, in China and in five European countries, we adopted a direct selling model. And in China, we will continue to have the direct sale with -- direct touch points with users. But for the other markets outside of China, we need to respect the local conditions and also the special characteristics of each market.

目前，在中國和歐洲五個國家，我們採用的是直銷模式。在中國，我們將繼續與用戶進行直接接觸點的直接銷售。但對於中國以外的其他市場，我們需要尊重當地的情況，也要尊重每個市場的特色。

In that case, we will keep our strategy very flexible and very open. We will look at which way we'll be bringing us quicker return on investment. We don't exclude any possibilities of cooperating with local partners for the market entry.

在這種情況下，我們將保持我們的策略非常靈活和開放。我們將研究哪種方式可以為我們帶來更快的投資回報。我們不排除與當地合作夥伴合作進入市場的任何可能性。

So in general, we will have a very flexible and very open strategy towards markets outside of China.

所以總的來說，我們對中國以外的市場將採取非常靈活和非常開放的策略。

My second question is -- my second question is regarding the battery technology. So recently, some auto brands started to launch 5C 800-volt charging battery and the system. So when do we expect that the NIO brand and also probably your second brand will start to provide this spec? And if after you have a fast-charging battery, will you switch to expand more charging station instead of battery substation in 2025?

我的第二個問題是──我的第二個問題是關於電池技術的。所以最近一些汽車品牌開始推出5C 800伏特充電電池及系統。那麼，我們預計蔚來品牌以及您的第二個品牌什麼時候會開始提供此規格？如果您擁有快速充電電池後，您會在 2025 年轉而擴建更多充電站而不是電池變電站嗎？

Thank you for the question. In terms of the battery technologies, actually, NIO has been having this long-standing strategy of studying the ultrafast charging as well as ultra quick battery swapping. In terms of charging, actually, NIO is the most active brand in terms of deploying public chargers for the users in China. And as of now, 80% of our [electricity] were charged for the non-NIO users than for the NIO users.

感謝你的提問。在電池技術方面，實際上，蔚來一直有研究超快充電和超快換電的策略。在充電方面，實際上，蔚來是為中國用戶部署公共充電樁最積極的品牌。截至目前，我們的[電費]是向非蔚來用戶收取的，而不是向蔚來用戶收取的。

For the NIO Power's charging business by itself, it is already breaking even, and we will continue to deploy the chargers for the users. Very soon, we are going to install and launch our 640 kilowatt power chargers.

NIO Power本身的充電業務已經實現損益平衡，我們將繼續為用戶配置充電器。很快，我們將安裝並推出我們的 640 千瓦充電器。

So definitely, we will follow the latest technologies in the charging industry. In the meantime, we also need to emphasize on how fast the power swap can be because no matter how quick you are on the charging rate, it can never outrun the power swap. Some media has used the analogy where power swap is as fast as charging at 20C in comparison to 5C on a common charger. Not to mention that battery swap also have the best experience for the users.

所以我們肯定會關注充電產業的最新技術。同時，我們也需要強調換電速度有多快，因為無論你的充電速度有多快，它永遠無法超越換電速度。有些媒體打了個比方，換電速度相當於 20C 充電速度，而一般充電器則為 5C。更不用說電池更換也為用戶帶來了最好的體驗。

And in NIO's holistic solution, in addition to chargeable and swappable, we also have upgradable, which is also very important, especially to serve the interests of our users. Very soon, we are going to have our 150-kilowatt-hour battery.

而在蔚來的整體解決方案中，除了可充電、可換電之外，我們還有可升級，這也是非常重要的，特別是要服務我們用戶的利益。很快，我們就會擁有 150 千瓦時的電池。

We also have a 5C charging rate that will become available on our first model from the third-generation products, ET9.

我們還提供 5C 充電速率，將在我們第三代產品的第一款型號 ET9 上提供。

But in addition to looking at the battery capacity and the charging rate, what really matters is the lifetime of the battery. For that, we think that it's very important because at the moment, the industry average warranty duration is around eight years or a 100,000 kilometers something or when the battery hit 70% state of health. But if you look at the vehicle, it has a life cycle of around 15 years.

但除了查看電池容量和充電速率外，真正重要的是電池的使用壽命。為此，我們認為這非常重要，因為目前行業平均保固期約為八年或 100,000 公里左右或當電池達到 70% 的健康狀態時。但如果你看一下車輛，它的生命週期約為 15 年。

For most of the electric vehicles running on the street, they haven't really hit the end of life of their batteries yet. But as the car companies, we really need to consider about the 15-year life cycle of your products, including cars, including batteries. That's why the calendar lifetime of the batteries becomes more important for the car companies.

對於大多數在街上行駛的電動車來說，它們的電池還沒有真正達到使用壽命。但作為汽車企業，我們確實需要考慮一下你的產品15年的生命週期，包括汽車，包括電池。這就是為什麼電池的日曆壽命對汽車公司來說變得更加重要。

Over the past several years, we have tackled the difficulties on the battery safety, efficiency of charging and also the accessibilities of the charging and swapping facilities.

幾年來，我們攻克了電池安全、充電效率、充換電設施無障礙等難題。

And from this year, we will focus on the long life batteries. We have already done some research and studies on the technologies and recently, we are going to share more information with the industry.

從今年開始，我們將專注於長壽命電池。我們已經對這些技術做了一些研究和研究，最近我們將與業界分享更多資訊。

What we believe is that with a longer battery life, especially longer calendar life, it will help not only the battery electric vehicles, but also PHEVs and EREVs or the new energy vehicles in general. Because after eight years, when the battery hits its end of warranty life, you cannot ask the user to pay another RMB 100,000 to upgrade the battery or to buy a new battery.

我們相信，更長的電池壽命，特別是更長的日曆壽命，不僅對純電動車有幫助，對插電式混合動力汽車、增程式電動車甚至新能源汽車也有幫助。因為八年後，當電池達到保固期時，你不能要求用戶再支付10萬元升級電池或購買新電池。

Even for a smaller battery pack of only 40 kilowatt hour capacity, you cannot ask them to pay RMB 80,000 or RMB 90,000 for a brand new battery. So as a car company, we needed to look after both battery and cars across -- or throughout its life cycle. In that case, we needed to provide the ultimate battery solution to the industry.

即使是容量只有40千瓦時的小電池組，你也不能要求他們花8萬元或9萬元買一個全新的電池。因此，作為一家汽車公司，我們需要在整個生命週期中照顧電池和汽車。在這種情況下，我們需要為業界提供終極的電池解決方案。

Your next question comes from Paul Gong from UBS.

您的下一個問題來自瑞銀集團的 Paul Kong。

My first question is regarding your R&D budget for 2024. How much do you plan to spend into R&D for this year? And if you can, would you please give a rough breakdown, how much of this would go to the NIO models and how much go to the Alps? How much do go to the third brand and how much go to the autonomous driving software and some key components, et cetera? Yes.

我的第一個問題是關於你們2024年的研發預算。你們今年打算在研發上花費多少？如果可以的話，請您提供一個粗略的細分，其中有多少將用於蔚來車型，多少將用於阿爾卑斯山？多少投入第三品牌，多少投入自動駕駛軟體和一些關鍵零件等？是的。

So regarding the R&D spending plan for 2024.

那麼關於2024年的研發支出計畫。

Paul, this is Stanley. Regarding your question about the R&D expense expectation for 2024. Generally, the scale of R&D expense will be consistent with 2023. And on average, the quarterly spendings for R&D will also be around RMB 3 billion. Yes. That's the general guidance for R&D.

保羅，這是史丹利。關於你關於2024年研發費用預期的問題，整體來說，研發費用規模將與2023年保持一致。平均而言，每季的研發費用也在30億元人民幣左右。是的。這是研發的一般指導。

In terms of how to allocate the R&D expenses this year, we will mostly allocate our resources on the fundamental technologies as well as the technologies that can be shared across all three brands. We have mainly focused on the smart and electric technologies, which can already be shared across NIO Alps and also Firefly, which is our third brand. And last year, in September, we have announced our 12 full-stack technologies at the NIO Inc. Tech Day. And basically, our R&D investments will be dedicated into these 12 main areas.

今年的研發費用如何分配，我們主要配置在基礎技術以及三個品牌可以共享的技術上。我們主要專注於智慧和電動技術，這些技術已經可以在NIO Alps和我們的第三個品牌Firefly之間共享。去年 9 月，我們在 NIO Inc. Tech Day 上宣布了 12 項全端技術。基本上，我們的研發投資將致力於這 12 個主要領域。

And in terms of the personnel structure, around 70% of our R&D people are focusing on the smart technologies were relevant areas.

從人員結構來看，我們約有70%的研發人員專注於智慧技術相關領域。

No, sure. My second question is regarding the cost of Alps. Just now I think you mentioned that the cost is going to be about 10% lower than Tesla. Can we give a little bit more color given this is actually pretty impressive number when you consider Tesla is building almost 1 million cars in China a year of which 700,000 is already like Model Y. What volume scale are you based on to assume the Alps' costs, and what are the key advantages that you have adopted for this cost advantage compared to Tesla?

不確定。我的第二個問題是關於阿爾卑斯山的費用。剛才我想你提到成本會比特斯拉低10%左右。考慮到特斯拉每年在中國生產近100 萬輛汽車，其中70 萬輛已經像Model Y 那樣，這實際上是一個相當令人印象深刻的數字。我們可以提供更多的資訊嗎？您是根據什麼數量規模來假設阿爾卑斯山的成本，與特斯拉相比，你們為了實現這成本優勢而採用的關鍵優勢是什麼？

Thank you for the question. Actually, for Tesla, as they also public their gross margin details on the product, so it's easy for us to make a comparison. In terms of what advantages we can take for the Alps and its cost structure, actually, China is the largest automotive market. It is also the biggest market for the smart electric vehicles with already well-established supply chain.

感謝你的提問。其實對於特斯拉來說，他們也公開了產品的毛利率細節，所以我們很容易進行比較。從阿爾卑斯山的優勢和成本結構來看，中國其實是最大的汽車市場。它也是智慧電動車的最大市場，擁有完善的供應鏈。

So we can already leverage the advantages of the domestic supply chains here in China, not to mention that in the past several years, we have made investments and also we achieved accumulations on the R&D activities. And R&D is one of the key drivers of improving the cost structure and reducing the BOM cost of the product.

所以我們已經可以利用中國國內供應鏈的優勢，更不用說過去幾年我們有投資，也有研發上的累積。而研發是改善成本結構、降低產品BOM成本的關鍵驅動力之一。

In that case, we already have a pretty good foundation.

這樣的話，我們就已經有了很好的基礎了。

And with that, we doesn't needed to really realize a very huge volume to realize that level of cost structure. In China, for the manufacturing facility, a reasonable volume will be around 10,000 units per month. We don't need to really go to the level of 1 million to realize that level of BOM cost.

這樣，我們就不需要真正實現非常大的產量來實現這種水準的成本結構。在中國，對於製造工廠來說，合理的產量為每月 10,000 台左右。我們不需要真正達到 100 萬的水平即可實現該水準的 BOM 成本。

So the costs here are compared to Tesla China or Tesla Global for the 10%. Sorry, just a quick follow-up.

所以這裡的成本與特斯拉中國或特斯拉全球相比為 10%。抱歉，只是快速跟進。

Yes. To translate for that, we didn't really look at the Tesla China specifically, we are comparing with Tesla globally.

是的。換言之，我們並沒有真正關注特斯拉中國，而是與特斯拉在全球範圍內進行比較。

Your next question comes from Chang Jing from CICC.

你的下一個問題來自中金常靜。

Okay. I have two quick follow-on questions. The first is also about the charging and also battery swap network. We can see that our network is still -- our construction progress of the charging network is still the fastest in China. But at the same time, we see many other companies are still also accelerating their construction of the -- especially the fast charging network.

好的。我有兩個簡單的後續問題。第一個也是關於充電和電池交換網路。我們可以看到，我們的網路仍然——我們的充電網路建設進度仍然是中國最快的。但同時，我們看到許多其他公司也在加快建設——尤其是快速充電網路。

So how do we think that we can maintain our first-mover advantage? And also how do we look at the relationship between fast charging and also battery swap?

那我們認為如何才能保持先發優勢呢？我們又該如何看待快充和換電之間的關係呢？

Thank you for the questions. As we are very happy to see that many other car companies, including peers as well as other third-party companies are also dedicating their resources into installing chargers in China, as the more chargers we have publicly, the better the charging experience and the charging efficiency will be. So we are also dedicating -- or actually we are also installing a lot of charges.

謝謝你的提問。我們很高興看到許多其他車企，包括同行以及其他第三方公司也在投入資源在中國安裝充電樁，因為我們公開的充電樁越多，充電體驗和充電就越好效率將會。所以我們也在奉獻——或者實際上我們也在安裝很多費用。

But in addition to that, we also have many power swapping facilities. We are the car company with the most power swap stations. Some companies in the industry are also installing power swap stations, but so far, we are still the single largest swap station operators with already establishing -- with that, we have already established a very good network effect where we can further leverage on that.

但除此之外，我們還有許多電力交換設施。我們是擁有最多換電站的汽車公司。業內有一些公司也在安裝換電站，但到目前為止，我們仍然是已經建立的最大的單一換電站運營商，這樣我們就已經建立了非常好的網路效應，我們可以進一步利用它。

So overall speaking, many other car companies who are serious about the battery swap or who are interested in battery swap, now choose to join our battery swapping network and alliance because they can also rely on our network effect.

所以總體來說，很多其他認真對待換電或對換電感興趣的車企，現在選擇加入我們的換電網絡和聯盟，因為他們也可以依靠我們的網絡效應。

But another thing is that the charging and swapping, these two are never in conflict with each other. Of course, for the charging, there are some special benefits. For example, if you have chargers at home, you can always enjoy the best charging experience or if you are on the go and you only need to charge for 20% or 30% SoC, you can also choose faster charter. But if you need to have a full charge in a very short timeframe, power swap is still the best option for you.

但另一件事是，充電和交換，這兩者從來不衝突。當然，對於充電來說，還有一些特殊的好處。例如，如果您家裡有充電器，您可以隨時享受最佳的充電體驗，或者如果您在旅途中，只需充電 20% 或 30% SoC，您也可以選擇更快的包機。但如果您需要在很短的時間內充滿電，換電仍然是您的最佳選擇。

Like during the Spring Festival, over 90% of our users traveling on highways chose to do the power swap than doing their charging. So that's the special benefit of power swap, not to mention that battery swap station itself is a natural energy storage system.

像春節期間，我們90%以上的高速公路出行用戶選擇換電而不是充電。這就是換電的特殊好處，更何況換電站本身就是一個天然的儲能係統。

When users are doing power swap, they don't need to get off the car. The entire process is fully automated, not to mention that we also have a battery upgrade that is enabled by the swappabilities of the battery.

用戶在進行換電時，無需下車。整個過程是完全自動化的，更不用說我們也透過電池的可更換性實現了電池升級。

For example (technical difficulty) 80% of them chose a 100-kilowatt hour battery pack. That is our long-range backer pack. But before we had this many power swap stations in China, 50% of our users actually chose a 100-kilowatt hour battery pack.

例如（技術難度）80%的人選擇了100度電的電池組。這是我們的遠端支援包。但在我們中國沒有這麼多換電站之前，我們其實有50%的用戶選擇了100千瓦時的電池組。

By having more users choosing standard range battery packs, the benefit is that if you're only driving the car in Shanghai for the daily commute, you can be having a sufficient range with 75 kilowatt hour.

透過讓更多用戶選擇標準續航里程電池組，好處是，如果您只是在上海駕駛汽車進行日常通勤，則可以擁有 75 千瓦時的充足續航里程。

But when you need to have a weekend getaway, where you need to travel for long distance during the holidays like during the Spring Festival, you can use the flexible battery upgrade to upgrade to 100-kilowatt hour battery.

但當您需要週末出遊，需要在春節等假期進行長途旅行時，您可以使用靈活的電池升級功能，將電池升級為100千瓦時。

For example, during the Spring Festival, many of our users have chosen to upgrade their batteries flexibly. And very soon, we will launch a 150 kilowatt hour battery pack, which will fulfill a very rare need, maybe only 1% to 2% of the use cases where users needed to travel much longer.

例如春節期間，我們很多用戶都選擇了靈活升級電池。很快，我們將推出 150 千瓦時的電池組，這將滿足非常罕見的需求，可能只滿足用戶需要旅行更長時間的用例的 1% 到 2%。

And another benefit of power swap is regarding how it can benefit the management of the battery life because, I can use the analogy, if you eat too fast, it can damage your stomach than eating in a very slow manner. It's the similar thing to the power swap because if you always use supercharging, such quick charge may damage the battery life of your battery. But with battery swap, we can balance out the battery life, not to mention that we can also use other operating approaches and mechanism to further enhance the battery life. So overall speaking, we don't think battery swap and charging are conflicting with each other and these two actually (inaudible).

電源交換的另一個好處是它如何有利於電池壽命的管理，因為，我可以打個比方，如果你吃得太快，它比吃得很慢會損害你的胃。這與換電類似，因為如果你總是使用超級充電，這樣的快速充電可能會損害電池的壽命。但透過電池更換，我們可以平衡電池壽命，更何況我們還可以使用其他操作方式和機制來進一步提高電池壽命。總的來說，我們認為電池更換和充電並不相互衝突，而且這兩者實際上並不衝突（聽不清楚）。

Okay. My second question is regarding to the lower tier cities market. And I see that in 2023, our sales proportion in first tier cities has been increased a little bit percent. So will also our sales proportionally -- especially in third tier and below, is still less than 20%. So compared to like BMW, which that will be exceeding 40%.

好的。我的第二個問題是關於低線城市市場的。我看到2023年，我們在一線城市的銷售比例增加了一點點。我們的銷售額比例也是如此——特別是在第三層及以下，仍然低於 20%。與寶馬相比，這一比例將超過 40%。

So in terms of marketing and other aspects, so do we have some efforts to break through further to the lower tier cities?

那麼從行銷等方面來說，我們有沒有一些努力去進一步往低線城市突破呢？

Thank you for the question. It's true that in 2024, we needed to solve the problem regarding enlarging our reach in the lower-tier cities and also boosted the sales in those cities. We have realized the significance of this, and we have already started to take actions in the second half of 2023 by enlarging our reach into the lower-tier cities.

感謝你的提問。確實，2024年，我們需要解決擴大低線城市的影響力，同時提升低線城市的銷售量。我們已經意識到這一點的重要性，並在2023年下半年開始採取行動，擴大對低線城市的影響力。

Right now, if you look at our sales volume distribution, basically more than 50% of our sales volume is contributed by the sales in the Yangtze River Delta areas. And if we look at all the Tier one cities, more than 70% of the sales actually happen in the first tier cities. So it's very important for us to find the right approach to penetrate into the lower-tier cities and enlarge our channel reach in these cities.

現在看我們的銷售分佈，基本上我們50%以上的銷售量是由長三角地區的銷售貢獻的。如果我們看所有一線城市，70%以上的銷售額實際上發生在一線城市。因此，找到正確的方法滲透到低線城市並擴大在這些城市的通路覆蓋範圍對我們來說非常重要。

On the other hand, we have also realized that the infrastructure like the charging and the swapping facilities are also playing a very important role in boosting the sales in these lower-tier cities.

另一方面，我們也意識到充電、換電設施等基礎設施對於促進這些低線城市的銷售也扮演著非常重要的角色。

So this year, we will also focus on installing more chargers and swap stations in this third -- in the third or fourth tier cities so that we can enhance the overall user experience and the competitiveness in those areas. This is an opportunity as well as a challenge for us in 2024. We need to find the efficient approach to tap into the lower tier cities and to improve the sales volume in those areas.

所以今年我們也會專注在第三、三、四線城市安裝更多的充電樁和換電站，這樣我們就可以提高這些地區的整體使用者體驗和競爭力。 2024年，這對我們來說是機會也是挑戰。我們需要找到有效的方法來進軍低線城市，提高這些地區的銷售量。

Your next question comes from Tina Hou from Goldman Sachs.

你的下一個問題來自高盛的蒂娜侯。

So the first question is regarding your sales network and sales team expansion plan this year. So just wondering for both the NIO rand and for the Alps brand, how many new stores do you expect to open this year, and how many new sales people do you expect to hire for each of these brands?

那麼第一個問題是關於你們今年的銷售網絡和銷售團隊的擴張計劃。那麼，想知道蔚來蘭特和阿爾卑斯品牌，您預計今年將開設多少家新店，以及您預計為每個品牌僱用多少新銷售人員？

Hi, Tina. Can you repeat your question, please?

嗨，蒂娜。您能重複一下您的問題嗎？

Sorry. So my first question is regarding your sales network and sales team expansion. So could you share for 2024, how many stores do you plan to open for both NIO and the Alps brand? And also how many sales people do you expect to hire for these brands?

對不起。所以我的第一個問題是關於你們的銷售網絡和銷售團隊的擴張。那麼能否分享一下，到2024年，蔚來和阿爾卑斯品牌計畫開設多少家店？您預計為這些品牌聘用多少銷售人員？

Thank you for your questions. For NIO, as the brand, actually, we have already opened 500 NIO Houses and NIO Space in China. So for this year, our priority is not on opening up more stores or spaces for the NIO brand. Instead, we will focus on improving the efficiency of each point of sale, including phasing out some low-efficiency locations and replace them with stores and locations of higher efficiencies.

謝謝您的提問。對蔚來這個品牌來說，其實我們已經在中國開了500家蔚來之家和蔚來空間。因此，今年我們的首要任務不是為蔚來品牌開設更多商店或空間。相反，我們將專注於提高每個銷售點的效率，包括逐步淘汰一些低效率的地點，並以效率更高的商店和地點取代。

And in terms of the sales force for the NIO brand, so far, we have already have more than 5,000 people on the team. And enlarging the team will not be the focus either, instead, we will focus on the efficiency of the overall operations of the team.

而就蔚來品牌的銷售團隊而言，到目前為止，我們的團隊已經超過5,000人。而擴大團隊也不會是重點，我們會關注團隊整體運作的效率。

So enlarging sales team, we're increasing the number of self-stores for NIO will not be the priority for the current year.

因此，擴大銷售團隊、增加蔚來自營店數量並不是今年的首要任務。

But when it comes to our new brand, the second brand, the approach will be different. We have already secured some locations and resources for the new brand. So we will not have a very long lead time to prepare for the store opening. Basically, when we launched the brand, we also hope that we can open no less than 200 points of sales for the second brand.

但當談到我們的新品牌，即第二個品牌時，方法就會有所不同。我們已經為新品牌爭取了一些地點和資源。所以我們不會有很長的準備開店時間。基本上我們在推出品牌的時候，也希望能夠為第二個品牌開設不下200個銷售點。

In terms of people, it's the same logic, as we can leverage the existing training system of NIO to train the team, to make the entire sales team to be prepared for the launch of the very first model. So we will focus on the efficiency of such sales team.

對人來說，也是同樣的邏輯，我們可以利用蔚來現有的訓練系統來培訓團隊，讓整個銷售團隊為第一款車型的上市做好準備。所以我們會關注這樣的銷售團隊的效率。

Not to mention that for Alps, they will start with only one product. So the efficiency of the cells be relatively easy to manage and improve. This is also another advantage of starting a brand based on existing resources and the network of NIO than starting everything from ground up.

更不用說對阿爾卑斯來說，他們一開始只會推出一種產品。因此電池的效率相對容易管理和提高。這也是基於現有資源和蔚來網路創立品牌比一切從頭開始的另一個優勢。

William, can I just have a follow-up? So would the Alps store location resemble that of NIO's location?

威廉，我可以跟進嗎？那麼阿爾卑斯店的位置會與蔚來的位置相似嗎？

As Alps, our second brand, is targeting at different types of user groups with different price segments and the range, which means that this brand will also have its own principal and logic for the store locations and network development. So for Alps, they will select their own stores and locations and also deploy the network according to their own demand.

由於我們的第二個品牌Alps針對的是不同類型的使用者群體，有不同的價位段和範圍，這意味著這個品牌在店面選址和網路發展上也會有自己的原則和邏輯。所以對於阿爾卑斯來說，他們會根據自己的需求來選擇自己的門市和地點，並部署網路。

And of course, the sales network of Alps will also be more efficient as Alps does not need to have the full-fledged sales stores like NIO House. So its -- point of sales will be more efficiency oriented, similar to the sales stores of Tesla.

當然，阿爾卑斯的銷售網絡也會更有效率，因為阿爾卑斯不需要像NIO House那樣擁有完善的銷售店。因此，它的銷售點將更加以效率為導向，類似於特斯拉的銷售商店。

And my second question is, could you give us some CapEx guidance for 2024? And then the breakdown between vehicle CapEx and also your charging/swapping infrastructure CapEx?

我的第二個問題是，您能給我們一些 2024 年資本支出指引嗎？然後車輛資本支出與充電/交換基礎設施資本支出之間的細分？

Yes, sure. We will control our CapEx investment in 2024. Like we already canceled a delayed project with payback period longer than two to three years. And generally, the CapEx in this year will be significantly lower than 2023. Regarding the deployment of our power swap station network, we will fully leverage the resources of our business partners for the further expansion, as mentioned in [William's] previous statements.

是的，當然。我們將在2024年控制我們的資本支出投資。就像我們已經取消了一個延遲的項目，投資回收期超過兩到三年。總體而言，今年的資本支出將大大低於2023年。關於我們換電站網路的部署，我們將充分利用我們業務合作夥伴的資源進行進一步擴展，正如[William]之前的發言中提到的。

Yes. That means we'll utilize our own resource to build the network.

是的。這意味著我們將利用我們自己的資源來建立網路。

So will not utilize your own resource?

那麼不會利用自己的資源嗎？

Yes, for the power swap network -- station network, we've minimized the use of our own resource.

是的，對於換電網絡——車站網絡，我們已經最大限度地減少了對我們自己資源的使用。

That's very -- yes, that's very clear and helpful.

這非常——是的，非常清晰且有幫助。

Thank you.

謝謝。

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

由於現在沒有其他問題了，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 on our website. This concludes the conference call. You may now disconnect the 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的聯絡方式聯繫蔚來投資者關係團隊。電話會議到此結束。現在您可以斷開線路。謝謝。