蔚來 (NIO) 2024 Q3 法說會逐字稿

Hello, ladies and gentlemen.

女士們、先生們，大家好。

Thank you for standing by for NIO Incorporated's third-quarter 2024 earnings conference call.

感謝您出席蔚來汽車公司 2024 年第三季財報電話會議。

(Operator Instructions) today's conference call is being recorded.

（操作員指示）今天的電話會議正在錄音。

I will now turn the call over to your host, Mr. Rui Chen, Head of Investor Relations of the company.

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。

Please go ahead, Rui.

請繼續吧，瑞。

Good morning and good evening, everyone.

大家早安，晚上好。

Welcome to NIO's third-quarter 2024 earnings conference call.

歡迎參加蔚來汽車 2024 年第三季財報電話會議。

The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website.

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. Stanley Qu, CFO.

今天的電話會議有創辦人、董事長兼執行長李威廉先生；瞿先生，財務長。

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

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 US 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 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.

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.

現在，我將把電話轉給我們的執行長李威廉先生。

William, please go ahead.

威廉，請繼續。

Hello, everyone.

大家好。

Thank you for joining NIO's 2024 Q3 earnings call.

感謝您參加蔚來汽車 2024 年第三季財報電話會議。

In Q3, the company achieved a new quarterly record with 61,855 deliveries.

第三季度，該公司交付量達到 61,855 輛，創下季度新紀錄。

The NIO brand maintained its positioned as the top-selling brand in China's BEV segment priced above RMB300,000 with its market share reaching 48%.

蔚來品牌持續穩居中國30萬元以上純電動車細分市場第一品牌地位，市佔率達48%。

The ONVO brand also started to deliver its first model L60 on September 28, marking its entry into the broader mainstream family market.

ONVO品牌也於9月28日開始交付首款車型L60，標誌著其進軍更廣泛的主流家庭市場。

In October 2024, the company delivered 20,976 vehicles.

2024年10月，該公司交付了20,976輛汽車。

While the ONVO brand continues to ramp up production capacity, the company's total deliveries in Q4 are expected to be between 72,000 and 75,000 units.

在ONVO品牌持續提升產能的同時，該公司第四季的總交付量預計在72,000至75,000輛之間。

On the financial side, our Q3 results reflected continued improvement in component costs leading to a vehicle margin of 13.1%.

在財務方面，我們第三季的業績反映出零件成本的持續改善，導致車輛利潤率為 13.1%。

Besides the gross margin of other sales have improved steadily.

除此之外其他銷售的毛利率也穩定提升。

Supported by sustained growth in revenues and the gross margin, the company achieved a positive operating cash flow and free cash flow in Q3.

在收入和毛利率持續成長的支撐下，該公司第三季實現了正的經營現金流和自由現金流。

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

現在我想跟大家分享一下我們的產品、研發和營運的一些最新情況。

NIO's executive flagship ET9 is in the final testing and preparation before mass production and the delivery is expected to start in March next year.

蔚來執行旗艦ET9正在進行量產前的最後測試和準備，預計明年3月開始交車。

The ET9 brings together NIO's leading innovation.

ET9匯聚了蔚來領先的創新技術。

Its delivery will reinforce NIO's premium brand image.

它的交付將強化蔚來汽車的優質品牌形象。

With new models to be introduced in the coming year, the NIO brand will be more focused on improving profitability.

隨著明年新車型的推出，蔚來品牌將更專注於提高獲利能力。

The ONVO L60 aiming at the mainstream family market has been a hit with family users, thanks to its special cabin, ultra-low energy consumption, comprehensive safety features, and hassle-free charging and swapping experience.

針對主流家庭市場的ONVO L60憑藉其獨特的座艙、超低能耗、全面的安全特性以及無憂的充換電體驗，受到了家庭用戶的青睞。

Now we are ramping up our supply chain capacity.

現在我們正在增強我們的供應鏈能力。

ONVO's monthly production capacity is expected to hit 10,000 units in December and 20,000 units by March.

ONVO預計12月月產能將達1萬輛，3月月產能將達2萬輛。

Besides, on December 21, NIO's third brand officially named, firefly, will make a global debut at NIO Day 2024.

此外，12月21日，蔚來第三個品牌正式命名為“螢火蟲”，並將在NIO Day 2024全球首發。

Its first product will be delivered in the -- in the first half of next year.

其首款產品將於明年上半年交付。

Targeting the boutique compact car market, the firefly brand will enrich the company's product line up and make full use of existing sales network.

螢火蟲品牌瞄準精品小型轎車市場，將豐富公司的產品線，並充分利用現有的銷售網路。

In terms of smart driving by October, NIO's smart driving had over 610,000 users and 78.4% had -- activated NIO's Navigate on Pilot.

智慧駕駛方面，截至10月，蔚來智慧駕駛用戶已超過61萬，78.4%的用戶啟動了蔚來Navigate on Pilot。

Together, they had driven over 1.39 billion kilometers with NOP -- The ONVO smart driving based on the company's experience and expertise built over time was also rolled out with the L60, making ONVO the first brand to deliver vision-based navigation guided smart driving on urban road.

他們與NOP一起行駛了超過13.9億公里——基於公司長期積累的經驗和專業知識的ONVO智能駕駛也隨L60一起推出，使ONVO成為第一個提供基於視覺導航引導的智能駕駛的品牌城市道路。

The company's sales footprint continues to grow.

該公司的銷售足跡持續成長。

So far, NIO has 176 NIO Houses and 412 NIO Spaces worldwide, while ONVO 191 stores across China.

截至目前，蔚來在全球擁有176家蔚來之家和412家蔚來空間，ONVO在中國擁有191家門市。

On the service end, the company has 398 service centers and 65 delivery centers.

在服務端，公司擁有398個服務中心和65個配送中心。

The power up counties plan is making strong headway, with more partners joining us in expanding the network.

各縣通電計畫正在取得強勁進展，越來越多的合作夥伴加入我們，擴大網路。

As of now, the company has 2,737 power swap stations worldwide, including 887 on highways having provided over 58 million works for NIO and ONVO users.

截至目前，該公司在全球擁有2,737個換電站，其中高速公路換電站887個，為NIO和ONVO用戶提供了超過5,800萬次工作。

In addition, over 24,000 power chargers and the destination charges are up and running.

此外，超過 24,000 個充電器和目的地充電已啟動並運行。

We continue to expand globally.

我們繼續在全球擴張。

On November 28, the first NIO House in the MENA region will open Abu Dhabi, and our sales and delivery have already started in the UAE.

11月28日，中東和北非地區首家NIO House將在阿布達比開業，目前我們在阿聯酋的銷售和交付已經開始。

Next year, with new products from ONVO and firefly, the company will accelerate its international market entry.

明年，憑藉ONVO和螢火蟲的新產品，公司將加速進軍國際市場。

On September 29, NIO China signed a new investment agreement and secured RMB3.3 billion from the strategic investors.

9月29日，蔚來中國簽署新投資協議，取得戰略投資者33億元人民幣投資。

This capital boost reinforces our balance sheet and reflects the investor's high confidence in NIO's industry leadership.

此次資本增加增強了我們的資產負債表，反映了投資者對蔚來汽車產業領導地位的高度信心。

On October 26, the 2024 NIO Cup Formula Students Electric China came to an end.

10月26日，2024蔚來盃中國學生電動方程式錦標賽落下帷幕。

Supporting the event for 10 years, NIO has helped more than 60,000 talented students chase their dreams in the rapidly evolving smart EV industry.

蔚來支持該賽事10年來，已幫助超過6萬名優秀學生在快速發展的智慧電動車產業中追逐夢想。

November 25 marks NIO's 10th anniversary, a milestone that wouldn't have been possible without the trust and support of our users and investors.

11月25日是蔚來汽車成立10週年，這項里程碑的實現離不開用戶和投資者的信任和支持。

Going forward, as the NIO brand starts to enter new product cycle, and ONVO and firefly will deliver more new products, the company is embarking on a phase of robust growth.

未來，隨著蔚來品牌開始進入新產品週期，ONVO和螢火蟲將推出更多新產品，公司正進入強勁成長階段。

We are confident in what's to come.

我們對未來充滿信心。

Thank you for the support.

感謝您的支持。

With that, I will now turn the call over to Stanley for Q3's financial details.

現在，我將把電話轉給 Stanley，以了解第三季的財務詳細資訊。

Over to you, Stanley.

交給你了，史丹利。

Thank you, William.

謝謝你，威廉。

Let's now review our key financial results for the third quarter of 2024.

現在讓我們回顧一下 2024 年第三季的主要財務表現。

Our total revenues were RMB18.7 billion, decreased 2.1% year over year and up 7% quarter over quarter.

我們的總收入為人民幣187億元，年減2.1%，較上季成長7%。

Vehicle sales were RMB16.7 billion, down 4.1% year over year, primarily driven by a lower average selling price due to changes in product mix, partially offset by higher deliveries.

汽車銷售量為人民幣167億元，年減4.1%，主要是因為產品結構變化導致平均售價下降，但被交付量增加部分抵銷。

Vehicle sales increased 6.5% quarter over quarter, which was mainly due to the increased delivery volume.

汽車銷量較上月成長6.5%，主要得益於交車量的增加。

Moving to the performance of other business.

轉向其他業務的績效。

Other sales were RMB2 billion, grew by 19.2% year over year and 11.9% quarter over quarter.

其他銷售額為人民幣20億元，較去年成長19.2%，較上季成長11.9%。

The year-over-year increase was mainly due to the increase in sales of parts, accessories, and aftersales vehicle services and provision of power solutions and partially offset by lower sales of used cars.

年比成長主要是由於零件、配件、售後車輛服務以及提供動力解決方案的銷售增加，但部分被二手車銷售下降所抵消。

The increase quarter over quarter was mainly attributed to the increase in sales of parts, accessories, and aftersales vehicle services, and provision of power solutions.

環比成長主要歸因於零件、配件和售後車輛服務以及提供動力解決方案銷售的成長。

Vehicle margin was 13.1% in this quarter compared to 11% in the same period of 2023 and 12.2% last quarter.

本季車輛利潤率為 13.1%，而 2023 年同期為 11%，上季為 12.2%。

The year-over-year increase was mainly due to decreased the material cost per unit and partially offset by lower average selling price, as result of changes in product mix.

年比成長主要是由於單位材料成本下降，並被產品結構變化導致的平均售價下降部分抵消。

The quarter-over-quarter increase was mainly due to decreased material costs per unit.

環比增長主要是由於單位材料成本下降。

Overall gross margin was 10.7%, up from 8% in the same period of last year and 9.7% in the last quarter.

整體毛利率為10.7%，高於去年同期的8%和上季的9.7%。

Turning to OpEx.

轉向營運支出。

R&D expenses were RMB3.3 billion, increased 9.2% year over year and 3.1% quarter over quarter.

研發費用為人民幣33億元，較去年成長9.2%，較上季成長3.1%。

The year-over-year increase was both mainly driven by the increased personnel costs in R&D functions.

年比成長主要是由於研發職能人員成本增加所致。

SG&A expenses RMB4.1 billion increased 13.8% year over year at 9.3% quarter over quarter, which was mainly driven by higher personnel costs related to sales functions and increased sales and marketing activities associated with new product launch.

銷售及管理費用人民幣 41 億元，年增 13.8%，季增 9.3%，主要是由於與銷售職能相關的人員成本上升以及與新產品推出相關的銷售和行銷活動增加。

Loss from operations was RMB5.2 billion, up 8.1% year over year and relatively flat quarter over quarter.

經營虧損為人民幣52億元，較去年成長8.1%，較上季持平。

Net loss was RMB5.1 billion, showing an increase of 11% year over year and remaining relatively stable quarter over quarter.

淨虧損為人民幣51億元，較去年成長11%，較上季維持相對穩定。

Lastly, we ended the quarter with a stronger balance sheet with total cash and cash equivalents, restricted cash, short-term investments, and long-term time deposit amounting to RMB42.2 billion.

最後，本季結束時，我們的資產負債表更加強勁，現金和現金等價物、限制性現金、短期投資和長期定期存款總額達 422 億元人民幣。

That wraps up our prepared remarks.

我們準備好的發言就到此結束。

For more information and details of our unaudited third quarter 2024 financial results, please refer to our earnings press release.

有關我們未經審計的 2024 年第三季財務業績的更多資訊和詳情，請參閱我們的收益新聞稿。

Now, I will turn the call over to the operator to start our Q&A session.

現在，我將把電話轉給接線員，開始我們的問答環節。

Thank you.

謝謝。

(Operator Instructions) Tim Hsiao, Morgan Stanley.

（操作員指示）Tim Hsiao，摩根士丹利。

Hi.

你好。

Good evening, NIO management team, this is Tim from Morgan Stanley.

晚上好，蔚來管理團隊，我是來自摩根士丹利的提姆。

Thanks for taking my questions.

感謝您回答我的問題。

I have two questions.

我有兩個問題。

The first one is about brand strategy alignment because we noticed since the L60, ONVO L60 was launched in September, the orders of NIO brands and ONVO brands have being see-sawing.

第一個是品牌策略對接，因為我們注意到自從9月L60、ONVO L60上市以來，蔚來品牌和ONVO品牌的訂單一直在拉鋸。

Order trends of NIO and ONVO appear contrived.

NIO和ONVO的訂單趨勢顯得做作。

Should we be worried about the potential cannibalization between these two brands when it comes to the end demand brand position and the supply chain management?

在終端需求品牌地位和供應鏈管理方面，我們是否應該擔心這兩個品牌之間潛在的蠶食？

That's my first question.

這是我的第一個問題。

Thank you.

謝謝。

(interpreted) Thank you for the question.

（解釋）謝謝你的提問。

Regarding the overall delivery volume of the NIO brand, you see a decrease in our delivery volumes starting October.

從蔚來品牌的整體交付量來看，從10月開始，我們的交付量有所下降。

That is more of a active adjustment than a passive results.

這更多的是一種主動調整，而不是被動結果。

As before October, our monthly delivery volume was above 20,000 units for several months consecutively.

截至10月份，我們的月出貨量連續幾個月維持在2萬台以上。

But in the meantime, we also realized that the vehicle margin has been under pressure as we have some promotions and marketing expenses on the product.

但同時，我們也意識到，由於我們對產品有一些促銷和行銷費用，車輛利潤率一直面臨壓力。

Then starting October, we have dialed back on our expenses on that part by reducing around RMB15,000 per unit on the promotional costs and the marketing costs.

然後從10月開始，我們減少了這方面的開支，每台的促銷費用和行銷費用減少了約15,000元人民幣。

With that, inevitably, you'll see the impact on the sales volume.

這樣，您將不可避免地看到對銷售的影響。

But starting November, as we are stabilizing our delivery volume and the demand, we are seeing the recovery from our volume.

但從 11 月開始，隨著我們的交付量和需求趨於穩定，我們的銷售量正在復甦。

And regarding our brand strategy, overall speaking, we think that using two or three brands to target different user groups is a successful strategy for now.

至於我們的品牌策略，整體來說，我們認為使用兩個或三個品牌來針對不同的使用者群體是目前一個成功的策略。

For the ONVO, it is still competing with other competitors in the same price segment.

對於ONVO來說，它仍在與同價位段的其他競爭對手競爭。

Right now, when we are looking at the main source of ONVO users, a majority of them actually come from the Model 3 users.

目前來看ONVO用戶的主要來源，其實大部分來自Model 3用戶。

And internally, we are also looking at the potential competition between the ONVO brand and the NIO brand, but the actual overlapping or the impact on the NIO brand is pretty minimum, only around 2%.

在內部，我們也正在研究ONVO品牌和蔚來品牌之間的潛在競爭，但實際的重疊或對蔚來品牌的影響很小，只有2%左右。

It is true that few users may choose ONVO over NIO, but the overall impact on the sales and delivery of the NIO brand is limited.

誠然，很少有用戶可能會選擇ONVO而不是NIO，但整體對蔚來品牌銷售和交付的影響有限。

In that case, the combined increments of both ONVO and NIO still surpass the volume loss we had on the NIO brand in the past one or two months.

這樣的話，ONVO和蔚來的增量加起來仍然超過蔚來品牌過去一兩個月的銷售損失。

To clarify that, to look at the source of our ONVO users, the top one source of this ONVO users actually is coming from Model 3.

澄清一下，看我們ONVO的用戶來源，這個ONVO用戶的第一大來源其實是來自Model 3。

Thank you very much, William.

非常感謝你，威廉。

My second question is about the production ramp up.

我的第二個問題是關於產量的增加。

Because we noticed the production ramp-up of L60 so far is still a little bit slow.

因為我們注意到到目前為止L60的產量成長仍然有點慢。

What is the main reason to a more moderate ramp up pace would there be any impact to our current order backlog towards the yearend.

較溫和的成長速度的主要原因是什麼，這會對我們目前的年底訂單積壓產生任何影響嗎？

And in the meantime, in view of the busy model pipeline, firefly and also the new ET9 in March next year, as William just mentioned and more upcoming models under ONVO and NIO.

同時，考慮到繁忙的車型儲備，Firefly以及William剛才提到的明年3月的新款ET9以及ONVO和NIO旗下更多即將推出的車型。

How would the group consider solving the bottlenecks into 2025?

到2025年，集團將如何考慮解決瓶頸問題？

That's my second question.

這是我的第二個問題。

Thank you.

謝謝。

(interpreted) Thank you for the question.

（解釋）謝謝你的提問。

For the ONVO L60, it's true that people in the market has a higher expectation for its ramp-up and production capacity.

對於ONVO L60來說，市場人士對其產能和產能的期望確實更高。

However, we also need to understand that L60 comes with a lot of cutting-edge technologies.

不過，我們也需要了解，L60擁有許多尖端技術。

For example, it has a 900-volt high voltage architecture, which is also intertwined with the production and preperation of the battery and powertrain systems.

例如，它具有900伏特高壓架構，這也與電池和動力系統的生產和準備交織在一起。

It also has a pretty advanced e-architecture operating system and digital system like Coconut also equipped with a lot of the new technologies.

它還擁有相當先進的電子架構操作系統和像Coconut一樣的數位系統，也配備了許多新技術。

So such technology preparation will also take time.

所以這樣的技術準備也需要時間。

And we also didn't prepare a sufficient launch stock so that we will realize a very high delivery in the first month.

而且我們也沒有準備足夠的上市庫存，因此我們無法在第一個月實現非常高的交付。

We actually believe that ramping up to 10,000 units per month in December, that is our third month of the full month delivery and then ramping up to 20,000 in March next year is a reasonable speed and pace.

事實上，我們認為，在 12 月（也就是我們全月交付的第三個月）每月增加到 10,000 台，然後在明年 3 月增加到 20,000 台，是一個合理的速度和節奏。

It's true that this speed may not live up to some of your expectations.

確實，這個速度可能達不到您的某些期望。

And we also understand that on the subsidy side, by the end of this year, some local subsidies and also the national trade-in subsidy will be gone.

我們也了解到，在補貼方面，到今年年底，一些地方補貼以及國家以舊換新的補貼將會消失。

In that case, for some users who placed order later may not have their cars picked up by the end of this year, and that will affect their subsidy.

那麼，對於一些較晚下單的用戶來說，今年年底可能還沒有提車，這將影響他們的補貼。

In that case, we have also looked at the users who eventually turned us off or turned us down, and 50% to 60% of those users eventually rejected us was because of the late delivery and the failure of not getting the subsidy by the end of this year.

在這種情況下，我們也觀察了那些最終拒絕我們的用戶，其中50%到60%的用戶最終拒絕我們是因為延遲交付以及最終未能獲得補貼今年的。

We -- it's also understandable as after all ONVO product is around 200,000-something and 10,000 or 20,000 subsidy can be a significant amount to them.

我們——這也是可以理解的，畢竟ONVO的產品在20萬左右，一萬、兩萬的補貼對他們來說是一筆不小的數目。

For ET9 and the firefly, in general, they also have their own ramp-up pace and the preparation.

對於ET9和螢火蟲來說，總的來說，他們也有自己的爬坡節奏和準備。

But for these two products, we will prepare the launch stock more actively.

但對於這兩款產品，我們會更積極地準備首發庫存。

Nick Lai, JPMorgan.

尼克‧賴 (Nick Lai)，摩根大通。

Thank you for taking my questions.

感謝您回答我的問題。

Nick from JPMorgan.

來自摩根大通的尼克。

My first question is for William is how do -- strategically, how do you find the balance between profitability and volume.

我向威廉提出的第一個問題是，如何在策略上找到獲利能力和銷售之間的平衡。

And, William just mentioned that in the third quarter in recent months, we reduced the incentive by RMB15,000 that obviously should support vehicle margin into yearend.

而且，William 剛剛提到，在最近幾個月的第三季度，我們將激勵措施減少了 15,000 元人民幣，這顯然應該支持年底的車輛利潤率。

At the same time, that's probably at expense of the slower sales volume.

同時，這可能是以銷量放緩為代價的。

So longer term, can you share with us how should we think about the balance between profit margin and volume?

那麼從長遠來看，您能跟我們分享一下我們該如何思考利潤率和銷售之間的平衡嗎？

Or in other word, do we have a desired vehicle margin in 4Q in the medium to longer term?

或者換句話說，中長期來看，我們在第四季度的車輛利潤率是否達到了理想的水平？

I remember in the past, talk about a longer-term vehicle margin between 15%, 18%, or even 20%.

我記得過去談論的長期車輛利潤率在 15%、18% 甚至 20% 之間。

Can you share with us the medium to longer-term volume and profit margin strategy?

能與我們分享中長期的銷售和利潤率策略嗎？

Thanks.

謝謝。

(interpreted) Thank you for the question.

（解釋）謝謝你的提問。

This is Stanley speaking.

我是史丹利。

Regarding your question on the balance between the volume and the profitability, as also mentioned by William, after the launch of ONVO, for the NIO brand, our primary focus is to keep enhancing our premium brand positioning and improve our product profitability.

關於你提到的銷售量與獲利之間的平衡問題，William也提到，ONVO推出後，對於蔚來品牌來說，我們的首要任務是不斷提升我們的高端品牌定位，提高我們的產品獲利能力。

So this will be our focus from now and beyond.

因此，這將是我們現在及以後的重點。

And also starting October, we started to dial back on our product promotions and incentives.

同樣從十月開始，我們開始減少產品促銷和激勵措施。

For the short term, it has affected our sales volume.

從短期來看，它影響了我們的銷售量。

But in the past one month or so, with operations, we also see a bounce-back momentum on our order backlog.

但在過去一個月左右的時間裡，我們也看到了訂單積壓的反彈動能。

And regarding the vehicle margin of the NIO brand in the third quarter, it's 13.1%, and for the fourth quarter, we set the target at 15% for the NIO brand, and we are confident to gradually leave up to that target in Q4 this year.

而蔚來品牌第三季的整車利潤率是13.1%，第四季我們為蔚來品牌設定的目標是15%，我們有信心在第四季逐步達到這個目標。

And as we keep enhancing the premium positioning of this brand for the year of 2025, we will take 15% vehicle margin as a baseline.

隨著我們不斷提升品牌的高端定位，2025年我們將以15%的整車利潤率作為基準。

And by improving our marketing strategies and supply chain, we target to realize 20% gross margin going forward for the NIO brand.

透過改善行銷策略和供應鏈，我們的目標是蔚來品牌未來實現20%的毛利率。

Thank you.

謝謝。

My second question is related to CapEx and OpEx guidance.

我的第二個問題與資本支出和營運支出指導有關。

As we are launching new brand firefly into '25 also higher -- high end ET9 product and so on.

正如我們在25年推出的新品牌firefly也更高——高階ET9產品等等。

So can you give us some guidance regarding OpEx -- in the OpEx ratio as well as CapEx in '25?

那麼您能給我們一些關於營運支出的指導嗎—25 年營運支出比率以及資本支出？

Thanks.

謝謝。

(interpreted) Thank You for the question.

（翻譯）謝謝你的提問。

As mentioned, starting next year, we will start to deliver our ET9 and there will also be new models coming from our second and the third brand.

如前所述，從明年開始，我們將開始交付 ET9，並且我們的第二和第三品牌也將推出新車型。

So overall speaking, there will be increments with our OpEx.

總的來說，我們的營運支出將會增加。

As you can see, actually, in the third quarter of this year, we already see a increment in our SG&A expenses.

正如您所看到的，實際上，在今年第三季度，我們已經看到 SG&A 費用增加。

That is mainly because we are preparing -- we were preparing the sales network and the sales force for the launch of the ONVO brand.

這主要是因為我們正在準備——我們正在為ONVO品牌的推出準備銷售網路和銷售隊伍。

And such expenses will continue in Q4 and will also continue to increase in Q4 as right now, we have around 190 stores -- ONVO stores in China.

而且這樣的費用在第四季還會持續，並且在第四季也會繼續增加，因為現在我們在中國有大約190家商店——ONVO商店。

And by the end of this year, we plan to have around 300 stores up and running for the ONVO brand.

到今年年底，我們計劃開設約 300 家 ONVO 品牌專賣店。

So we will need to invest in those facilities and the stores.

因此，我們需要投資這些設施和商店。

And in the meantime, as our target for March next year is to realize a 20,000 monthly target.

同時，我們明年3月份的目標是實現每月2萬的目標。

In that case, we will need to keep improving our sales network and also sales force.

在這種情況下，我們需要不斷改進我們的銷售網絡和銷售團隊。

But as we are building up the sales capacity and the capability for the ONVO brand and going into Q1 next year when the capability and capacity are well established our SG&A expenses will also gradually coming down.

但隨著我們正在建立 ONVO 品牌的銷售能力和能力，並進入明年第一季度，當能力和能力建立良好時，我們的 SG&A 費用也將逐漸下降。

So at the moment, the SG&A is taking a major chunk -- taking a big chunk of our sales revenue, but this will gradually come to a reasonable level starting Q1 next year.

因此，目前，SG&A 佔據了我們銷售收入的很大一部分，但從明年第一季開始，這將逐漸達到合理的水平。

In that case, our OpEx, along with the increase of our sales volume, will have a efficiency improvement quarter over quarter from next year.

這樣的話，我們的營運支出，隨著銷售量的增加，從明年開始，效率將逐季提高。

Regarding CapEx, this year, our overall CapEx actually had a significant decrease from last year.

關於資本支出，今年我們的整體資本支出實際上比去年有顯著下降。

The full year CapEx is around RMB8 billion.

全年資本支出約人民幣80億元。

And for next year, we will keep it around the same level.

明年，我們將保持在同一水平。

So we will keep a very prudent management of our CapEx expenses.

因此，我們將非常謹慎地管理我們的資本支出。

Ming-Hsun Lee, Bank of America.

李明勳，美國銀行。

Hi William, this is Ming from Bank of America.

嗨，William，我是美國銀行的 Ming。

So my first question is related to the situation in Europe.

我的第一個問題是關於歐洲的情況。

I want to know that after the tariff in EU is increased.

我想知道歐盟關稅提高後的情況。

Do you change your pricing strategy?

您會改變定價策略嗎？

And currently, does this impact the demand in Europe?

目前，這是否會影響歐洲的需求？

That's my first question.

這是我的第一個問題。

(interpreted) Thank you for the question.

（解釋）謝謝你的提問。

It's true that with the tariffs on the battery electric vehicles from China, it has affected our pricing strategy and also sales volume in Europe, but overall speaking for the overseas market, we still adopt this unified global pricing strategy.

誠然，中國對純電動車加徵關稅，影響了我們的定價策略，也影響了我們在歐洲的銷量，但總體來說海外市場，我們還是採用全球統一的定價策略。

That is basically a cost with a markup on top.

這基本上是一個帶有加價的成本。

In that case, because of the tariffs, our prices in Europe actually have gone up quite significantly.

那麼，由於關稅的原因，我們在歐洲的價格實際上已經上漲了相當大的幅度。

However, our strategy for the European market is always aiming for the long term.

然而，我們對歐洲市場的策略始終著眼於長期。

At the moment, we will stay focused on improving our sales and service network.

目前，我們將繼續專注於改善我們的銷售和服務網絡。

Understanding the needs of the local users and to improve our user satisfaction on the services and products.

了解當地用戶的需求，提高用戶對服務和產品的滿意度。

This is actually where -- this strategy is not just because of the tariff even before the tariffs we've been focusing on the several key targets than simply prioritizing our sales volume.

實際上，這個策略不僅僅是因為關稅，甚至在關稅之前，我們一直專注於幾個關鍵目標，而不是簡單地優先考慮我們的銷售量。

We will need to make sure that we have a reasonable investment into our European business. while maintaining a good user satisfaction and also improving our brand awareness.

我們需要確保對歐洲業務進行合理的投資。同時保持良好的用戶滿意度並提高我們的品牌知名度。

Again, our target for Europe is for the long term.

再次強調，我們對歐洲的目標是長期的。

And also out of the five European countries we have already entered Norway is not affected by the tariff policy.

而且在我們已經進入的五個歐洲國家中，挪威也沒有受到關稅政策的影響。

In that case, our sales volume in the Norwegian market is still pretty good.

那我們在挪威市場的銷售量還是不錯的。

Thank you.

謝謝。

So my second question is related to the gross margin profile for ONVO brand because Stanley just mentioned the NIO brand in 4Q, gross margin will continue to improve to around 15%.

所以我的第二個問題與ONVO品牌的毛利率狀況有關，因為Stanley剛剛在第四季提到了蔚來品牌，毛利率將繼續改善至15%左右。

But I assume you will deliver around 20,000 units ONVO in 2024, what is the rough gross margin profile for this brand.

但我假設你們將在 2024 年交付約 20,000 台 ONVO，這個品牌的毛利率概況是多少？

And when your monthly delivery reached 20,000 units for ONVO brand, what is the potential gross margin profile for the brand?

當ONVO品牌的月交付量達到20,000台時，該品牌的潛在毛利率是多少？

Thank you.

謝謝。

(interpreted) Thank you for the question.

（解釋）謝謝你的提問。

For this year, as we have just launched and started to deliver the product at the early stage of the ramp-up and also because of the exclusive user rights for the early users, the actual vehicle margin for the ONVO L60 is not very high.

今年，由於我們剛推出並開始交付產品，處於爬坡初期，由於早期用戶的獨家用戶權益，ONVO L60的實際車輛利潤率不是很高。

It's a positive gross margin, but in the single digit.

毛利率為正，但僅為個位數。

For next year, for the year of 2025, as we ramp up both production capacity and the delivery volume, we expect that for the ONVO brand, its vehicle margin will be around 10%, and that will be our baseline for the next year to work on.

明年，2025年，隨著我們產能和交付量的提升，我們預計ONVO品牌的整車利潤率將在10%左右，這是我們明年的基準。

And with the continuous improvement on the product cost structure and also with more products joining the overall lineup, we believe that for the next year, our overall vehicle margin target for the ONVO brand will be around 15%.

而隨著產品成本結構的不斷改善以及更多產品的加入，我們相信明年ONVO品牌的整體整車利潤率目標將在15%左右。

Bin Wang, Deutsche Bank.

王斌，德意志銀行。

Thank you very much.

非常感謝。

My problem is about the new products in the second half.

我的問題是關於下半年的新產品。

You just mentioned we have a robust growth in '25 first half would be always niche products such as the ET9 and a new brand.

您剛才提到我們在 25 年上半年實現了強勁成長，但始終是小眾產品，例如 ET9 和新品牌。

However, what's the plan for the second half?

不過，下半年的計畫是什麼？

Do you plan to refresh go-to-new generation for your volume products, such as the ET5, ET5 Touring, and ES6, ET6.

您是否計劃更新您的大量產品的新一代，例如 ET5、ET5 Touring 和 ES6、ET6。

All thefour products will go to new generation or not in 2025 second half?

2025年下半年這四款產品是否都會換代？

Thank you.

謝謝。

(interpreted) Thank you for the question.

（解釋）謝謝你的提問。

For next year, under the NIO brand, our products will be upgraded to the next-generation platform and ET9 will be the first product coming off from the latest generation platform.

明年，蔚來品牌下的產品將升級到下一代平台，ET9將是最新一代平台下的首款產品。

There are also other products in the pipeline.

還有其他產品正在醞釀中。

There will be also facelifts and upgrades.

還將進行改款和升級。

Those will be the facelifts and upgrades of our existing products.

這些將是我們現有產品的改款和升級。

So basically, in 2025 and 2026, we will complete the upgrades of our existing NIO products set by step.

所以基本上，我們會在2025年、2026年分階段完成現有蔚來產品的升級。

Regarding the ONVO brand.

關於ONVO品牌。

Next year, we will continue to deliver and sell our first product, L60.

明年，我們將繼續交付和銷售我們的第一個產品 L60。

But in the meantime, we also have another two family SUVs in the pipeline, ready to launch into the market next year.

但同時，我們還有另外兩款家庭 SUV 正在醞釀中，準備明年推向市場。

The R&D of these two products is in good progress, and they are also getting ready for the mass production.

這兩款產品的研發工作進展順利，也正在為量產做好準備。

Regarding -- with these two products launched into market, we will have a complete lineup for the family SUVs under the ONVO brand.

隨著這兩款產品的上市，我們將擁有ONVO品牌的家庭SUV的完整陣容。

For these two new products, one will be a mid-large sized SUV offering with six- and seven-seater versions and another will be a large five-seater SUV.

這兩款新品，一款是中大型SUV，提供六人座和七人座版本，另一款是大型五人座SUV。

And these two products are pretty competitive regarding their cost structure and the product performance.

這兩款產品在成本結構和產品性能方面都具有相當的競爭力。

A proper benchmark to look for will be L8 and L7 of Li Auto.

合適的基準是理想汽車的L8和L7。

If you look at our L60 with L6 from Li Auto, the price difference is USD40,000 and -- sorry, RMB40,000, and you will probably understand the rough price range for our next two ONVO SUVs.

如果你看一下理想汽車的L60和L6，價格差異是40,000美元——抱歉，40,000元人民幣，你可能就會明白我們接下來兩款ONVO SUV的大致價格範圍。

It will be also with the similar pricing strategy.

它也將採用類似的定價策略。

And with that, the price will be highly competitive.

這樣一來，價格將具有很強的競爭力。

In the meantime, we are also completing our charging and swapping network, especially with more facilities available in the county level places in China.

同時，我們也正在完善我們的充換電網絡，特別是在中國的縣級地方有更多的設施。

In that case, with more comprehensive sales network and service network, we are very confident with the overall performance of the ONVO brand next year.

那麼，憑藉著更完善的銷售網絡和服務網絡，我們對ONVO品牌明年的整體表現非常有信心。

Regarding firefly, we are going to deliver our very first product of the firefly next year.

關於螢火蟲，我們將於明年推出我們的第一個螢火蟲產品。

The product is actually named firefly.

該產品實際上被命名為螢火蟲。

We actually follow the MINI strategy where the brand and the first product will share the same name.

我們實際上遵循 MINI 的策略，即品牌和首款產品將使用相同的名稱。

We are going to share more details on the brand and the project on December 21 of this year at our NIO Day.

我們將在今年 12 月 21 日的 NIO Day 上分享有關該品牌和項目的更多細節。

Our brand will be making an official debut, and we will also unveil the first product.

我們的品牌將正式亮相，我們也將推出第一款產品。

And overall speaking, we are very confident with this product and the brand lineup with that for the entire company, our sales volume next year will be doubling on top of this year's results.

總的來說，我們對這個產品和整個公司的品牌陣容非常有信心，明年我們的銷售量將在今年的基礎上翻倍。

Thank you.

謝謝。

I got a second question about your service margin because you actually have improving in the sales margin in the third quarter to hold negative 8.8%.

我的第二個問題是關於你們的服務利潤率的，因為你們第三季的銷售利潤率實際上有所改善，保持在負 8.8% 的水平。

Can you explain what's the driver for the margin increase in the third quarter in service?

您能否解釋一下第三季服務利潤成長的驅動因素是什麼？

And what's your guidance for the number four quarters this year and 2025 for the service.

您對該服務今年第四個季度和 2025 年的指導是什麼？

Is it going to be single-digit net gross margin in next year?

明年淨毛利率會是個位數嗎？

So what's your guidance?

那你的指導是什麼？

Thank you.

謝謝。

(interpreted) Thank you for the question.

（解釋）謝謝你的提問。

Regarding the vehicle margin improvement in the third quarter, it is mainly because of the two drivers.

第三季整車利潤率的改善，主要是兩位司機的功勞。

The first is the improvement and optimization on the cost of the parts and components, including batteries and other parts.

首先是零件成本的改進和最佳化，包括電池等零件。

In the third quarter, such improvement is more significant than the previous quarters.

第三季度，這種改善比前幾季更為顯著。

And the second driver is, as we are ramping up our sales volume, our production capacity and volume is also leveling up.

第二個驅動因素是，隨著我們銷售量的增加，我們的產能和產量也不斷提高。

In that case, we can also leverage the efficiency improvement and the better amortization on the manufacturing side.

在這種情況下，我們還可以利用製造方面的效率提高和更好的攤提。

With that, we have improved our vehicle margin from 12.2% in Q2 to 13.1% in Q3.

這樣，我們的車輛利潤率從第二季的 12.2% 提高到第三季的 13.1%。

And going into the fourth quarter, for the NIO brand.

進入第四季度，對於蔚來品牌。

As we've mentioned, our focus will be enhancing the premium positioning of this brand.

正如我們所提到的，我們的重點將是增強該品牌的高端定位。

In that case, we will keep improving the product profitability by dialing back on the marketing expenses and the promotions and also keep improving our supply chain cost structure.

在這種情況下，我們將透過減少行銷費用和促銷費用來持續提高產品獲利能力，並持續改善我們的供應鏈成本結構。

With that, we are confident that we can gradually realize a vehicle margin of 15% in the Q4 this year for the NIO brand.

因此，我們有信心今年第四季蔚來品牌能夠逐步實現15%的整車利潤率。

Going into next year, we will also look for several key drivers to continuously improve our vehicle margin, including the improvements on the supply chain and the supply side.

進入明年，我們還將尋找幾個關鍵驅動因素來持續提高我們的車輛利潤率，包括供應鏈和供應端的改進。

Next year, there will be several major integrations and upgrades on the smart hardware, which can further improve our cost structure.

明年在智慧硬體上會有幾次重大的整合和升級，可以進一步改善我們的成本結構。

And also, as mentioned by William, next year, there will be iterations and facelifts on the NIO brand and NIO products by introducing more competitive products with more competitive cost structure into our portfolio, we can also improve the overall profitability of the brand.

而且，正如William所提到的，明年蔚來品牌和蔚來產品將會進行迭代和改款，透過將更具競爭力的產品和更具競爭力的成本結構引入我們的產品組合中，我們也可以提高品牌的整體獲利能力。

With that, we are also confident to realize a 20% vehicle margin for the NIO brand in 2025.

由此，我們也有信心在2025年實現蔚來品牌的汽車利潤率達到20%。

Yuqian Ding, HSBC.

丁宇謙，匯豐銀行。

Thanks team, Yuqian here.

感謝團隊，雨倩。

I've got two questions.

我有兩個問題。

The first is on the autonomous driving.

首先是自動駕駛。

What the management would see -- would say the key milestone for NIO in the coming 6 to 12 months on this account?

管理層會看到什麼——蔚來汽車在未來 6 到 12 個月內會看到什麼關鍵里程碑？

What's the key challenges at the moment?

目前面臨的主要挑戰是什麼？

What is the biggest highlight of NIO's capability.

蔚來能力最大的亮點是什麼？

Maybe give us a bit of a breakdown in terms of the user adoption end-to-end modeling, development, processing power and this cost.

也許可以讓我們對使用者採用端到端建模、開發、處理能力和成本進行一些細分。

Thank you.

謝謝。

(interpreted) Thank you for the question.

（解釋）謝謝你的提問。

In late July, at the NIO IN 2024, we have introduced the NIO World Model and also the end-to-end solution based on the NIO World Model, NWM, and we have already started to release some functionalities based on the NIO architecture and the World Model and also have invited users for some internal testing and experience of this new architecture.

7月下旬，在NIO IN 2024上，我們推出了NIO世界模型，以及基於NIO世界模型的端到端解決方案NWM，並且我們已經開始發布一些基於NIO架構和世界模型，並邀請用戶對這種新架構進行一些內部測試和體驗。

Actually, before that, we have already released end-to-end active safety features and in some third-party testing and assessments on active safety performance of the electric vehicles.

其實，在此之前，我們已經發布了端到端的主動安全功能，以及一些電動車主動安全性能的第三方測試和評估。

Our performance is actually pretty good, better than many of our peers.

我們的表現其實還不錯，比很多同行都好。

And for the ONVO brand, it is also the first brand to deliver a vision-based navigation guided smart driving for the urban road.

而對於ONVO品牌來說，它也是第一個為城市道路提供視覺導航引導智慧駕駛的品牌。

Recently, we have also just launched a new release, and our users also really appreciate it and like that feature.

最近，我們也剛推出了一個新版本，我們的用戶也非常欣賞它並喜歡這個功能。

So overall speaking, with our computing power and sensing capabilities on the vehicles with our data close loop and also our end-to-end World Model, we will have -- we will be leveraging these capabilities.

總的來說，憑藉我們在車輛上的計算能力和感測能力以及我們的數據閉環以及我們的端到端世界模型，我們將擁有——我們將利用這些能力。

And in the following months, there will also be several releases.

在接下來的幾個月裡，還將有幾個版本發布。

And gradually, you will see the effect coming from all these R&D investments.

逐漸地，你會看到所有這些研發投資的效果。

And for the entire industry, there are actually different roadmaps and solutions.

而對於整個產業來說，其實有不同的路線圖和解決方案。

And we have chosen this roadmap, and we are confident in the success and the result of that roadmap.

我們選擇了這個路線圖，我們對該路線圖的成功和結果充滿信心。

And regarding our smart driving, we always have this principle that is it should serve the benefits and the interest of our users.

對於我們的智慧駕駛，我們總是有一個原則，就是要為使用者的利益服務。

In that case, we have two principles.

在這種情況下，我們有兩個原則。

The first is that the smart driving should relieve the driving pressure of our users and secondly, should reduce accidents -- traffic accidents.

第一個是智慧駕駛應該緩解我們用戶的駕駛壓力，第二個應該是減少事故——交通事故。

And for next year, our target is that with the smart driving assisting the driving tests of the human drivers, the safety level should be 10 times higher than fully driving by the human drivers.

明年我們的目標是，智慧駕駛輔助人類駕駛者的駕駛測試，安全等級應該比人類駕駛完全駕駛高出10倍。

And this is actually an achievable target.

這實際上是一個可以實現的目標。

And safety is always a top priority of our features.

安全始終是我們功能的重中之重。

On top of that, by securing a good safety of the future, we will then look at the usability and also the experience of the feature, such as further releasing the pressure and stress of driving.

除此之外，在確保未來良好的安全性的基礎上，我們也會專注於該功能的可用性和體驗，例如進一步釋放駕駛的壓力和壓力。

We have the same approach for our other features like our end-to-end model we started with active safety, and we see significant benefits on improving the safety of our users with that feature.

我們對其他功能採用相同的方法，例如我們從主動安全開始的端到端模型，並且我們看到該功能對提高使用者安全性有顯著的好處。

Thank you, William.

謝謝你，威廉。

The second question is on breakeven and capital requirements.

第二個問題是關於損益平衡和資本要求。

It looks like next year is very exciting, fully loaded with a strong product cycle also coupled with CapEx and OpEx intensity.

看起來明年非常令人興奮，充滿了強勁的產品週期以及資本支出和營運支出強度。

So do we have a refreshed breakeven timetable?

那我們有更新的損益平衡時間表嗎？

And how do we look at the capital requirement in the coming 12 to 18 months?

我們如何看待未來12至18個月的資本需求？

(interpreted) Thank you for the question.

（解釋）謝謝你的提問。

Regarding the requirements for the capitals.

關於首都的要求。

In the third quarter of this year, we have a realized positive free cash flow.

今年第三季度，我們實現了正的自由現金流。

And in Q4, according to the current volume guidance, we expect to continue the positive operating cash flow.

在第四季度，根據目前的銷售指導，我們預計將繼續保持正的營運現金流。

And for the year of 2025, as we target to double our delivery volume and also by controlling our funding and the pace quarter over quarter, we expect that we will continue a positive growth on our operating cash flow and such growth will sustain our OpEx and the CapEx on the activities.

到 2025 年，由於我們的目標是將交付量翻倍，並透過控制我們的資金和季度環比的速度，我們預計我們的營運現金流將繼續正成長，這種成長將維持我們的營運支出和活動的資本支出。

So regarding the capital requirement, we're in general, fundraising requirement, we don't have a must-to-have agenda.

因此，關於資本要求，我們一般來說是籌款要求，我們沒有必須要做的議程。

Instead, we will adjust our fund-raising plan and agenda according to the market more dynamically.

相反，我們會根據市場更動態地調整我們的募資計畫和議程。

And regarding your question on the profitability, I would like to answer to that from three perspectives.

關於你提到的獲利能力問題，我想從三個方面來回答。

The first is that as a still a young automotive company, sales volume is still a very important factor for us to consider.

首先，作為一家還年輕的汽車公司，銷售量仍然是我們考慮的一個非常重要的因素。

And just now, we have introduced the product plan of all three brands for the next year.

而剛才我們已經介紹了三個品牌明年的產品規劃。

With new brands and new products coming into the market, we will be able to realize higher volume, and we are also confident with our sales volume in the coming years.

隨著新品牌、新產品的進入市場，我們將能夠實現更高的銷量，我們對未來幾年的銷售也充滿信心。

And the second is regarding the vehicle margin.

第二個是關於車輛利潤。

We also will continue to improve our vehicle margin from Q4 this year, together with our sales volumes.

從今年第四季開始，我們也將繼續提高我們的汽車利潤率和銷售。

And the third is the continuous cost saving and efficiency improvement initiatives.

三是持續降本增效舉措。

Inside of the company, we actually started a project called cost mining to just identify the waste and also improve the cost structure and reduce -- or save costs on all aspects.

在公司內部，我們實際上啟動了一個名為成本挖掘的項目，旨在識別浪費，並改善成本結構並減少或節省各個方面的成本。

And we also see pretty good effect with this initiative.

我們也看到這個舉措取得了很好的效果。

With that, we expect that with improved volume with improved operations, our loss will also be gradually narrowed.

因此，我們預計，隨著成交量的改善和經營的改善，我們的虧損也將逐步縮小。

(interpreted) This is William speaking.

（翻譯）我是威廉。

Stanley has just introduced our approach to narrow the loss.

史丹利剛剛介紹了我們縮小損失的方法。

Regarding our overall expenses, our R&D expenses will be continue to stay at this relatively high level.

從我們的整體費用來看，我們的研發費用將繼續保持在這個相對較高的水平。

And for the SG&A expenses, because of our power up counties plan, we will roll out the charging and swapping networks and also, we will need to build up the sales and service network for the ONVO brand, so the SG&A expenses will also be under short-term pressure.

至於SG&A費用，由於我們的縣縣通電計劃，我們將推出充換電網絡，此外，我們還需要建立ONVO品牌的銷售和服務網絡，因此SG&A費用也將低於短期壓力。

But still, we will make sure that we are on the right track to gradually narrow our losses.

但我們仍然會確保我們走在正確的軌道上，逐步縮小損失。

And regarding the profitability, the entire company still use 2026 as the timing where we will achieve the full year breakeven.

而獲利方面，整個公司還是以2026年為全年損益平衡的時間點。

And we will be also planning our strategies and activities according to that target.

我們還將根據該目標規劃我們的策略和活動。

Chang Jing, CICC.

常靜，中金公司。

Hi.

你好。

Thank you for taking my questions.

感謝您回答我的問題。

So my first question is a following-up question for the overseas market.

所以我的第一個問題是針對海外市場的後續問題。

So we actually -- our brand and automotive in Europe market quite early as a pioneer, but now we also see some peer brands, companies, they accelerate their exposure in the European market.

所以我們實際上——我們的品牌和汽車在歐洲市場很早就是先鋒，但現在我們也看到一些同行品牌、公司，他們加速了在歐洲市場的曝光。

So can you share our current, like European market strategies, whether we can differentiate our brands and also to further expand our volume.

那麼您能否分享我們目前的市場策略，例如歐洲市場策略，我們是否可以使我們的品牌脫穎而出，並進一步擴大我們的銷售量。

Also, especially combined with the launch of firefly new models next year, where there be aggressive overseas extension targets next year.

此外，特別是結合明年螢火蟲新車型的推出，明年還有積極的海外拓展目標。

(interpreted) Thank you for the question.

（解釋）謝謝你的提問。

It's true that NIO has been in the European market for a while and its overall operations and performance didn't really live up to our original expectation.

確實，蔚來進入歐洲市場已經有一段時間了，其整體營運和業績並沒有真正達到我們最初的預期。

Yet, for the NIO brand, our expectations were for the European market is actually a pretty long-term vision.

然而，對於蔚來品牌來說，我們對歐洲市場的期望其實是一個相當長期的願景。

And also starting this year and the next year, another difference is regarding our second and third brand, ONVO and firefly, these two brands have a broader market globally.

同樣從今年和明年開始，另一個差異是我們的第二、第三個品牌ONVO和螢火蟲，這兩個品牌在全球有更廣闊的市場。

With that, we will also be able to continue our international expansion, leveraging these two brands, and these two brands will be playing a bigger role in our next step.

這樣，我們也將能夠利用這兩個品牌來繼續我們的國際擴張，而這兩個品牌將在我們下一步發揮更大的作用。

Especially for NIO, it is a premium brand.

尤其對於蔚來來說，它是一個高端品牌。

Now with the tariffs in Europe, its selling price is basically on par with the price of Porsche.

現在加上歐洲關稅，它的售價基本上與保時捷持平。

In that case, its market is becoming more and more limited, but we will still keep a long-term presence of the NIO brand in the European market.

這樣的話，它的市場就會越來越有限，但我們仍然會保持蔚來品牌在歐洲市場的長期存在。

But in the meantime, we will prioritize the global expansion with the ONVO and the firefly brand.

但同時，我們將優先考慮ONVO和螢火蟲品牌的全球擴張。

That will be our strategy.

這將是我們的策略。

So starting next year, you will see that ONVO the firefly products are becoming available in one more countries and regions.

所以從明年開始，你會看到ONVO螢火蟲產品將在更多的國家和地區上市。

And another difference is that here in the Chinese market, we started with the NIO brand for the premium segment.

另一個差異是，在中國市場，我們從高端市場開始使用蔚來品牌。

And then we established the power swapping and the charging network and ONVO brand is now sharing all this established resources and network.

然後我們建立了換電和充電網絡，ONVO品牌現在正在共享所有這些已建立的資源和網路。

But when it comes to the global market, actually, according to the product definition and brand positioning, ONVO actually has a larger market.

但說到全球市場，其實從產品定義和品牌定位來看，ONVO其實有更大的市場。

And also, it can ramp up to a higher volume much faster than the NIO brand.

而且，它可以比蔚來品牌更快增加銷售量。

In that case, the power swap stations and the charging facilities deployed for the ONVO brand will then be leveraged by the NIO brand.

屆時，ONVO品牌部署的換電站和充電設施將由蔚來品牌使用。

So in the global markets, actually, NIO, the NIO brand will rely more on the ONVO brand.

所以在全球市場上，其實蔚來，蔚來這個品牌會更多的依賴ONVO這個品牌。

And with that, we will be establishing the charging and swapping facilities centering on the ONVO brand and the firefly brand for the global market.

以此為基礎，我們將在全球市場建立以ONVO品牌和螢火蟲品牌為核心的充換電設施。

Okay, thanks.

好的，謝謝。

My second question is regarding to the other sales gross loss.

我的第二個問題是關於其他銷售毛損失。

So we can see the gross loss of other sales also narrowed significantly for the previous quarters, so which I think may be related to the increase in our sales volume and also the increase in our like charging and swapping charges and our services.

所以我們可以看到其他銷售的毛損失比前幾季也大幅收窄，所以我認為這可能與我們銷售的增加以及我們類似的充換電費用和服務的增加有關。

So how do we look forward to the trend of the gross profit margin of other sales?

那我們要如何展望其他銷售的毛利率走勢呢？

And whether we have an expectation when they can turn positive?

我們是否期待它們什麼時候能夠轉好？

(interpreted) Thank you for the question.

（解釋）謝謝你的提問。

Regarding other business, in the second and the third quarter, we have narrowed the losses on other business and also improved the gross margin.

其他業務方面，第二季和第三季度，我們其他業務的虧損有所收窄，毛利率也有所提高。

This is mainly because on the one hand, we have been improving the efficiency of our aftersales services.

這主要是因為一方面我們一直在提高售後服務的效率。

And on the other hand, because of the R&D pace of the fourth-generation power substation, we had slowed down the network deployment and infrastructure construction of power swap stations.

另一方面，由於第四代變電站的研發步伐，我們放慢了換電站的網路部署和基礎設施建設。

With that, our net loss has narrowed in the third quarter.

這樣，我們第三季的淨虧損就收窄了。

But in the coming quarters, we will -- on the one hand, we will still continue to improve the efficiency and also the profitability of our aftersales services.

但在未來幾季，我們一方面仍將持續提高售後服務的效率和獲利能力。

However, on the other hand, for the entire company, especially for the ONVO brand, we will need to speed up our infrastructure construction so that we will have our power swap stations and other facilities built in advance, earlier than the actual need.

但另一方面，對於整個公司，尤其是ONVO品牌來說，我們需要加快基礎設施建設，讓我們的換電站等設施提前建成，比實際需要的時間還要早。

And in the meantime, with our power up counties plan for the coming quarters, we will speed up the installation and construction of these swap stations.

同時，根據我們未來幾季的縣供電計劃，我們將加快這些換電站的安裝和建設。

With that, there will be a higher loss on other business.

這樣一來，其他業務的損失就會更大。

But overall speaking, we hope that the profitability or the improvement on the aftersales services can offset the loss we have on the advanced deployment of these power swap facilities.

但總體而言，我們希望獲利能力或售後服務的改善能夠抵消我們因提前部署這些換電設施而造成的損失。

That will be our overall strategy.

這將是我們的整體策略。

Paul Gong, UBS.

龔保羅，瑞銀集團。

Hi, William.

嗨，威廉。

Thanks for taking my questions.

感謝您回答我的問題。

Two questions here.

這裡有兩個問題。

The first question is regarding the demand visibility for the ONVO L60.

第一個問題是關於 ONVO L60 的需求可見度。

You seem to be pretty confident with 20,000 units of the volume of the L60 delivery in March.

您似乎對3月L60的2萬輛交付量很有信心。

That would put L60 on par to Xiaomi SU7 and Li Auto L6 for now.

這將使 L60 目前與小米 SU7 和理想汽車 L6 持平。

But when you consider right now, it is a peak season with the help of the stimulus.

但現在考慮一下，在刺激措施的幫助下，現在是一個旺季。

And moving to Q1 is going to be slack season with perhaps less policy support.

進入第一季將是淡季，政策支持可能會減少。

How do you have such visibility?

你怎麼有這樣​​的知名度？

Will you carry over, let's say, a significant amount of the backlog you take from right now into the Q1 delivery?

比方說，您是否會將目前積壓的大量訂單轉入第一季交貨？

Or how do you have such kind of strong visibility for the 20,000 deliveries in March?

或者說你們是如何對3月份的20,000輛交付量有如此強的可見度的？

(interpreted) Thank you for the question.

（解釋）謝謝你的提問。

We are confident in the demand for the L60 as in the recent several months wait time for the L60 -- the wait time for the delivery of the L60 is relatively long.

我們對L60的需求充滿信心，因為最近幾個月L60的等待時間——L60交付的等待時間相對較長。

And also starting next year, some of the subsidies on the vehicles will be gone.

而且從明年開始，部分車輛補貼將取消。

In that case, our short-term demand were -- is affected because of this disturbance.

在這種情況下，我們的短期需求會因為這種幹擾而受到影響。

But if you look at the actual conversion rate from test drive to order, you will see a pretty high rate.

但如果你看看從試駕到訂購的實際轉換率，你會發現相當高的轉換率。

Please forgive me that I cannot disclose the specific number, yet this conversion rate is higher than any existing NIO products.

請原諒我不能透露具體數字，但這個轉換率比任何現有的蔚來產品都要高。

So overall speaking, with a competitive product with a competitive price, we are confident with this product even against the competition in the market.

所以整體來說，憑藉具有競爭力的產品和有競爭力的價格，即使面對市場競爭，我們也對這款產品充滿信心。

And for the moment, our main focus is to enhance the coverage of its sales and service network.

目前，我們的重點是擴大銷售和服務網路的覆蓋範圍。

At the moment, it has around 190 ONVO stores.

目前，ONVO擁有約190家門市。

And for the next step, we will enlarge the coverage as in comparison to Tesla, and Li Auto, such coverage is not extensive enough.

下一步我們會擴大覆蓋範圍，相對於特斯拉、理想車來說，這個覆蓋範圍還不夠廣泛。

So we will open more stores.

所以我們會開設更多商店。

We will enhance and enlarge our sales force.

我們將加強和擴大我們的銷售團隊。

Gradually you will see the positive effects of these actions.

漸漸地，你會看到這些行動的正面影響。

And starting in January next year as the subsidies will be basically be canceled or removed for all the products in the similar segment.

而從明年1月開始，同類細分市場的所有產品的補貼將基本取消或取消。

In that case, we will be on the same level for the competition.

那樣的話，我們在比賽中就會處於同一水平。

But with a stronger product competitiveness and also established sales capacity and capability, we are confident with L60's overall performance.

但憑藉著更強的產品競爭力以及已建立的銷售能力和能力，我們對L60的整體表現充滿信心。

Thank you.

謝謝。

My second question is regarding the next-generation platform, NT3.

我的第二個問題是關於下一代平台NT3。

I think the NT2 versus NT1 has a significant improvement of the autonomous driving calculation power, including the 4 orins and also has improved some of the powertrain efficiency.

我認為NT2相對於NT1在自動駕駛運算能力上有顯著的提升，包括4個orins，同時也提高了一些動力總成效率。

Right now, when you are thinking about designing the NT3, how do you think of the platform in terms of, let's say, the computing power for the AD, the battery size, the power of the motor and the system integration, architecture, et cetera.

現在，當您考慮設計 NT3 時，您如何看待該平台，例如 AD 的運算能力、電池尺寸、馬達功率以及系統整合、架構等等等。

So can you give us a little bit color of the technology direction of the NT3 platform, please?

那您能為我們介紹一下NT3平台的技術方向嗎？

(interpreted) For the NIO brand, the ET9 will be the first model coming off from our latest generation technology platform.

（解讀）對於蔚來品牌來說，ET9將是基於我們最新一代技術平台的首款車型。

It is equipped with many new things, including high-voltage architecture, e-architecture, operating system, smart driving capabilities enabled by our in-house developed chip for the smart driving and also advanced and high-performance sensors.

它配備了許多新東西，包括高壓架構、電子架構、作業系統、由我們自主開發的智慧駕駛晶片實現的智慧駕駛功能以及先進的高性能感測器。

So if you look at its configuration and the performance, it is quite different from any of our existing products.

所以如果你看它的配置和性能，它與我們現有的任何產品都有很大不同。

It is basically at a different level.

基本上處於不同的水平。

And gradually, these technologies will be trickling down to our future products on the third-generation platform.

這些技術將逐漸滲透到我們第三代平台上的未來產品。

We will use these technologies to iterate and upgrade our existing products.

我們將利用這些技術來迭代和升級我們現有的產品。

And for ET9, it is the embodiment of our R&D investment, and the results achieved in the past 10 years.

而對ET9來說，它是我們研發投入，以及過去10年所取得成果的體現。

Tina Hou, Goldman Sachs.

蒂娜·侯，高盛。

Thanks management for taking my questions.

感謝管理層回答我的問題。

The first one is regarding operating expenses.

第一個是關於營運費用。

In terms of R&D, I also see that usually in the fourth quarter, there is around -- about close to RMB1 billion of higher R&D expense versus third quarter.

在研發方面，我還看到，通常在第四季度，研發費用比第三季增加約接近10億元。

Should we expect a similar type of seasonality in Q4 '24?

我們是否應該預期 24 年第 4 季會出現類似的季節性？

And also for 2025, as we continue to develop new products and then continue to invest in autonomous driving and other technologies.

到2025年，我們將繼續開發新產品，然後繼續投資自動駕駛和其他技術。

What kind of -- what level of R&D spending are we looking at?

我們正在考慮什麼樣的研發支出水準？

And also for sales and marketing in 2025, seeing that this year, we launched one model, the ONVO L60.

還有2025年的銷售和行銷，今年我們推出了一款車型，ONVO L60。

But next year, we're going to launch four new models.

但明年，我們將推出四種新型號。

So it doesn't seem like the sales -- the SG&A expense is going to slow down in terms of the growth.

因此，銷售—SG&A 費用的成長似乎不會放緩。

Is my understanding correct?

我的理解正確嗎？

Thanks.

謝謝。

(interpreted) Regarding the R&D expenses, in general, we will be having our investment in R&D for around RMB3 billion per quarter, and we will be stabilizing at around that level.

（解讀）研發費用方面，整體來說，我們每季的研發投入在30億元左右，並且會穩定在這個水準左右。

But because of the differences of the projects and also at the different stages of the product R&D, the actual spending -- there will be ups and downs in the actual spending for every quarter.

但因為專案的不同，也因為產品研發的不同階段，實際的支出——每季的實際支出都會有起伏。

For example, in the fourth quarter of this year, the R&D expenses will be higher or is expected to be higher than the third quarter.

例如，今年第四季度，研發費用將會高於或預期高於第三季。

That is also mainly because of the products are at the different stage of R&D and the cycle and the expenses will also be different accordingly.

這也主要是因為產品處於不同的研發階段，週期和費用也會隨之不同。

For the year of 2025, we will also keep our R&D expenses at the same -- at around the same level, that is around RMB3 billion per quarter on the non-GAAP basis.

至2025年，我們的研發費用也將維持在相同水平，即以非公認會計準則計算每季約30億元。

We will also keep the R&D team in the rough -- similar size, around 11,000 people.

我們也將保留研發團隊的規模——規模相似，約 11,000 人。

And then with -- as we progress with our R&D projects and product development, there will also be slight ups and downs in the R&D expenses on a quarterly basis.

然後，隨著我們研發項目和產品開發的進展，研發費用將按季度略有波動。

But in general, it will be around RMB3 billion.

但整體來說會在30億元左右。

Regarding the SG&A expenses, as also I've mentioned, in line with the increase of our sales volume, we will also have SG&A expenses going up, but we will also manage this quarter over quarter, so that we can make sure that we optimize the ratio of the SG&A in comparison to the overall sales revenue.

關於SG&A費用，正如我所提到的，隨著我們銷售的增加，我們的SG&A費用也會增加，但我們也會逐季進行管理，這樣我們就可以確保優化SG&A 與總銷售收入的比率。

Thanks, Stanley.

謝謝，史丹利。

So my second question is regarding the share of losses of equity investee.

所以我的第二個問題是關於股權被投資者的損失份額。

So we've seen over the past three quarters, that we have seen a negative number, and that number has been expanding.

因此，我們在過去三個季度中看到，我們看到了負數，而且這個數字一直在擴大。

So is this related to the Battery as a Service operation?

那麼這與電池即服務操作有關嗎？

And then how should we think about this loss from the equity investee going forward?

那我們該如何看待股權投資對象未來的損失呢？

Thanks.

謝謝。

(interpreted) Thank you for the question.

（解釋）謝謝你的提問。

In the third quarter, the share of the losses of the equity investee has an increase.

三季度，股權投資單位虧損份額增加。

That is mainly because for the entire company, we have made some investments into the upstream and downstream companies centering on this industry.

主要是因為對於整個公司來說，我們對圍繞這個行業的上下游公司做了一些投資。

And in the third quarter, the loss went up, it's mainly because of the losses of our investee, which is also acceptable and understandable as they are also in a highly competitive industry.

而第三季虧損有所上升，主要是被投公司虧損，這也是可以接受且可以理解的，因為他們也是處於競爭激烈的行業。

In terms of the -- in terms of Weineng, which is our battery asset management company, its actual business means that it will not worsen our losses on the shares because if you look at this actual business, since Q1 this year after we have adjusted the prices for the Battery as a Service monthly subscription fee, we actually have witnessed a higher take rate on the BaaS service, especially in the second half with both NIO and ONVO products into the market, the business actually experienced growth with the battery asset management.

就我們的電池資產管理公司威能而言，它的實際業務意味著它不會惡化我們的股票損失，因為如果你看看這個實際業務，自今年第一季我們調整後從電池即服務月費的價格來看，我們實際上看到BaaS服務的使用率更高，尤其是下半年隨著NIO和ONVO產品進入市場，該業務實際上隨著電池資產管理而經歷了增長。

In that case, it has a pretty promising profitability going forward.

在這種情況下，它未來的獲利能力相當有前途。

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.

再次感謝您今天加入我們。

If you have any further questions, please feel free to contact us through the contact information provided on our IR website.

如果您還有任何疑問，請隨時透過我們 IR 網站上提供的聯絡資訊與我們聯絡。

This concludes the conference call.

電話會議到此結束。

You may now disconnect your lines.

現在您可以斷開線路。

Thank you.

謝謝。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。

The interpreter was provided by the company sponsoring this event.

口譯員由贊助本次活動的公司提供。