蔚來 (NIO) 2025 Q1 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for NIO Incorporated's first quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. Today's conference call is being recorded.

女士們、先生們，大家好。感謝您參加蔚來汽車公司 2025 年第一季財報電話會議。此時，所有參與者都處於只聽模式。今天的電話會議正在錄音。

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

現在我將電話轉給主持人、公司投資人關係主管陳睿先生。請繼續，瑞。

Good morning, and good evening, everyone. Welcome to NIO's first quarter 2025 earnings conference call. The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website.

大家早安，晚上好。歡迎參加蔚來汽車2025年第一季財報電話會議。該公司的財務和經營業績已於今天早些時候的新聞稿中公佈，並發佈在該公司的 IR 網站上。

On today's call, we have Mr. William Li, Founder, Chairman of the Board and CEO; and Mr. Stanley Qu, Chief Financial Officer. Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today.

參加今天電話會議的有創辦人、董事會主席兼執行長李斌先生和財務長 Stanley Qu 先生。在我們繼續之前，請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。因此，該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. Please also note that NIO's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to NIO's press release, which contains a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures.

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。另請注意，蔚來汽車的收益新聞稿和本次電話會議包括未經審計的 GAAP 財務資訊以及未經審計的非 GAAP 財務指標的討論。請參閱蔚來汽車的新聞稿，其中包含未經審計的非公認會計準則指標與可比較公認會計準則指標的對帳。

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

現在，我將把電話轉給我們的執行長威廉李先生。威廉，請繼續。

Hello, everyone. Thank you for joining NIO's 2025 Q1 earnings call. In Q1, the company delivered 42,094 smart EV, up 4.1% year-over-year. This includes 27,313 deliveries from NIO and 14,781 deliveries from ONVO. Since Q2, the company's deliveries have picked up pace month-over-month, supported by a solid start of delivery in ET9 and firefly and growing demand for ONVO L60.

大家好。感謝您參加蔚來 2025 年第一季財報電話會議。第一季度，該公司交付了42,094輛smart EV，較去年同期成長4.1%。其中包括來自蔚來的 27,313 輛交付和來自 ONVO 的 14,781 輛交付。自第二季以來，該公司的交付量逐月回升，這得益於 ET9 和 Firefly 交付量的穩定成長以及 ONVO L60 需求的不斷增長。

In April and May, the total deliveries were 23,900 and 23,231. In late May, we successfully launched and delivered the new ES6, EC6 and ET5, and ET5T. We expect total deliveries in Q2 to be between 72,000 and 35,000, representing 25.5% to 30.7% growth year-over-year.

4月和5月累計出貨量分別為2.39萬架和2.3231萬架。5月下旬，我們成功推出並交付了新款ES6、EC6和ET5、ET5T。我們預計第二季總交付量將在 72,000 至 35,000 輛之間，年增 25.5% 至 30.7%。

On the financial side, the company continued the cost reduction efforts on all fronts, achieving year-over-year growth in both vehicle gross margin and overall gross margin. Now I'd like to share some updates on our products, R&D and operations.

財務方面，公司持續全方位降低成本，整車毛利率和整體毛利率均實現年增。現在我想分享一些有關我們的產品、研發和營運的最新情況。

For the NIO brand, the deliveries of ET9, NIO's executive flagship van surpassed BMW 7 Series and Audi A8 in China in the first four delivery months. This marks the first time that a Chinese brand has made a breakthrough in a premium executive segment long led by BBA.

對於蔚來品牌而言，蔚來行政旗艦廂型車ET9在前四個月的交付量超過了中國市場的寶馬7系和奧迪A8。這是中國品牌首次在長期由BBA領銜的高端行政級細分市場中取得突破。

On May 16, we launched the new ES6 and the ET6 and start delivery on May 20. On May 25, the new ET5 and ET5T were launched and delivered started on May 27. This upgraded models give greater perceived value and the product trends, along with major improvements in cost.

5月16日，我們推出了新款ES6和ET6，並於5月20日開始交付。5月25日，新款ET5、ET5T上市，並於5月27日開始在交車。此升級型號具有更高的感知價值和產品趨勢，同時成本也有了重大改進。

For the NIO brand -- for the ONVO brand, since April, ONVO has rolled out a service operational and organizational adjustments, significant improvement in the productivity and operational efficiency of the sales force.

對於蔚來品牌－對於ONVO品牌，自4月以來，ONVO推出了服務營運和組織調整，顯著提高了銷售團隊的生產力和營運效率。

Such change also shifted ONVO towards a positive cycle of brand awareness and product reputation. With that, ONVO orders have been risen steadily since late April. ONVO's (inaudible) L90, a smart large space flagship SUV made its debut on Shanghai Auto Show. With the class-leading space, auto low energy consumption and the extensive charging and working network, ONVO L90 has grown strong increase from three row SUV by us. This model will be launched and delivered in Q3.

這樣的轉變也讓ONVO的品牌知名度和產品美譽走向了良性循環。由此，ONVO訂單自4月下旬以來穩定上升。ONVO（聽不清楚）智慧大空間旗艦SUV L90亮相上海車展。憑藉同級領先的空間、自動低能耗以及廣泛的充電和工作網絡，ONVO L90 已成為我們強勁升級的三排 SUV。該車型將於第三季上市並交付。

The smart electric high-end smart small car brand, firefly, has started product delivered in late April, engineered for the five star safety in China and Europe and with the thought for space, smart digital experience and (inaudible) dynamics, firefly stands out in its segment.

智慧電動高階智慧小型車品牌螢火蟲已於4月下旬開始交付產品，該品牌以中國和歐洲的五星級安全為設計理念，在空間、智慧數位體驗和（聽不清楚）動力等方面均有所突破，在同級車款中脫穎而出。

In terms of tax innovation, NIO smart driving chip NS931 has been deployed in the flagship model ET9 as well as the NIO ES6, EC6, ET5 and ET5T and will be rolled out on new -- more new models of NIO. These new models are also equipped with NIO (inaudible) domain vehicle operating system, Sky OS and the intelligent (inaudible) system.

在稅務創新方面，蔚來智慧駕駛晶片NS931目前已搭載於旗艦車型ET9以及蔚來ES6、EC6、ET5、ET5T等車型，並將陸續搭載於更多蔚來新車型。這些新車型也搭載了NIO（聽不清楚）領域車輛作業系統、Sky OS和智慧（聽不清楚）系統。

Such innovations not only enhance the product competitiveness and also improve the vehicle cost structure. As for smart driving, the first NIO (inaudible) version has been rolled out to vehicles on the (inaudible) platform since late May.

這些創新不僅增強了產品競爭力，也改善了車輛成本結構。至於智慧駕駛，第一個 NIO（聽不清楚）版本已於 5 月底在（聽不清楚）平台上推出。

The NIO World Model or NWM, provides full upgrades in active city, urban and highway driving as well as parking, especially in key areas of active cities, NWM brand enhancement in handling driver emergency mitigating and preventing real collisions and recognizing general objects based on unable comprehensive understanding and the weakening of (inaudible) model information in real time.

NIO World Model 或 NWM，在活躍城市、城區和高速公路駕駛以及停車方面提供全面升級，特別是在活躍城市的關鍵區域，NWM 品牌在處理駕駛員緊急情況、緩解和防止真實碰撞以及基於無法實時全面理解和弱化（聽不清）模型信息識別一般物體方面進行了增強。

Navigate on Pilot+ or (inaudible) can guide cars through toll gates across China with automatic navigation to frequent parking spots as well as (inaudible) and non-memory based way (inaudible) also delivers a seamless (inaudible) smart driving experience. NIO World Model will continue to iterate (inaudible) and smart driving cost all scenarios.

Pilot+ 或（聽不清楚）上的導航可以引導汽車通過中國各地的收費站，自動導航到常用停車位以及（聽不清楚）非基於記憶的方式（聽不清楚）還提供無縫的（聽不清楚）智慧駕駛體驗。NIO世界模型將持續迭代（聽不清楚），智慧駕駛涵蓋全場景。

So far, NIO operated 184 NIO (inaudible) and 461 NIO spaces and ONVO 445 stores in China. On the service side, the company operates 391 service centers and 66 delivery centers. We will continue to improve efficiency and resource allocation through better operations and performance evaluation across the SaaS network.

截至目前，蔚來在中國已經營 184 家 NIO（聽不清楚）和 461 家 NIO 空間以及 445 家 ONVO 門市。在服務方面，該公司經營391個服務中心和66個配送中心。我們將透過改善整個 SaaS 網路的營運和績效評估來繼續提高效率和資源配置。

As of now, the company has 3,408 (inaudible) stations worldwide, including 989 stations on highway in China and has provided over 35 million (inaudible) to users. Besides, NIO has installed over 26,000 power charges and the destination charges. To date, NIO (inaudible) network has achieved a country-level coverage in Beijing, Shanghai, Zhangzhu, Zujang, Guangdong and Tianjin.

截至目前，該公司在全球擁有 3,408 個（聽不清楚）站點，其中包括中國境內 989 個高速公路站點，已為用戶提供超過 3,500 萬（聽不清楚）的行動旅行服務。此外，蔚來汽車已安裝超過26,000個充電樁和目的地充電樁。目前，蔚來（聽不清楚）網路已在北京、上海、漳州、蘇江、廣東、天津等地實現國家級覆蓋。

Next, we will continue to expand the coverage through partnerships with site operations, great companies and the capital investors. In international expansion, NIO has partnered with more than -- more than 10 local partners in over 15 core markets worldwide, and is onboarding more partners. In Q3, firefly will roll out in various markets, delivering global user experience beyond the expectations.

接下來我們會透過與站點營運方、優秀企業以及資本方的合作，繼續擴大覆蓋範圍。在國際擴張方面，蔚來已在全球超過15個核心市場與10多家本地合作夥伴建立合作關係，並正在吸收更多合作夥伴。第三季度，Firefly 將在各個市場全面上線，為全球用戶帶來超乎預期的體驗。

On April 7, NIO completed a share offering in Hong Kong, risen over HKD4 billion. This financial round was over subscript multiple times and has brought in a number of global long-term investors. 2025 is the hardest year for products as much core models are to be launched in the second half.

4月7日，蔚來汽車在香港完成股票發行，募資逾40億港元。本輪融資超額認購數倍，並引進了一批全球長期投資者。 2025年是產品最艱難的一年，許多核心車型將在下半年推出。

The company's deliveries are set to accelerate from Q3 with stronger sales, lower supply chain costs and better boom efficiency from new products and technologies, both vehicle and overall gross margin will keep improving in improving operational efficiency. Since Q1 we have implemented strict investment and the return we built across R&D, supply chain, sales and service functions under the (inaudible) unit mechanism.

隨著銷售量的增加、供應鏈成本的降低以及新產品和新技術帶來的更好的繁榮效率，該公司的交付量將從第三季開始加速，車輛和整體毛利率都將繼續提高，營運效率也將提高。自第一季以來，我們在（聽不清楚）單位機制下實施了嚴格的投資，並在研發、供應鏈、銷售和服務職能領域建立了回報。

We have set clear goals for operationals and ROI. We've got the organization and consolidated teams prioritize high-value projects and introduced the plan to improve productivity and cost efficiency. These measures have taken hold in Q2 and will continue through the year.

我們為營運和投資報酬率設定了明確的目標。我們已經讓組織和合併的團隊優先考慮高價值項目，並推出了提高生產力和成本效率的計劃。這些措施已在第二季生效，並將持續到今年年底。

With (inaudible) improving margins and better cost control, we are confident in improving the company's financial position starting Q2 and meeting our full year business targets. Thank you for your support.

隨著（聽不清楚）利潤率的提高和成本控制的改善，我們有信心從第二季開始改善公司的財務狀況並實現全年業務目標。感謝您的支持。

With that, I will now turn the call over to Stanley for Q1 financial details. Over to Stanley.

說完這些，我現在將電話轉給史丹利，詢問第一季的財務細節。交給史丹利。

Thank you, William. Let's now review our key financial results for the first quarter of 2025. Our total revenues reached RMB12 billion, increased 21.5% year-over-year, have decreased 38.9% quarter-over-quarter. Legal sales were RMB9.9 billion, up 18.6% year-over-year and down 43.1% quarter-over-quarter. The year-over-year growth was mainly due to higher deliveries, partially offset by a lower average selling price from product mix changes.

謝謝你，威廉。現在讓我們回顧一下 2025 年第一季的主要財務表現。總營收達120億元人民幣，較去年成長21.5%，季減38.9%。法律銷售額為人民幣99億元，較去年成長18.6%，季減43.1%。同比增長主要歸因於交付量增加，但產品組合變化導致的平均售價下降部分抵消了這一增長。

The quarter-over-quarter decrease was mainly attributable to fewer deliveries impacted by seasonality. Other sales were RMB2.1 billion, grew by 37.2% year-over-year and decreased 5.9% quarter-over-quarter. The annual growth was from increased sales of parts, after sales vehicle services and provision of power solutions along with a rise in sales of used cars and technical R&D services. The decrease quarter-over-quarter was due to decreased sales in technical R&D services and auto financing services.

環比下降主要是由於受季節性影響，交付量減少。其他銷售額為21億元，年增37.2%，季減5.9%。年度成長源於零件銷售、售後汽車服務和動力解決方案的增加以及二手車銷售和技術研發服務的增加。環比下降是由於技術研發服務和汽車融資服務銷售下降。

Looking at margins. Vehicle margin was 10.2% compared with 9.2% in Q1 last year and 13.1% last quarter. The year-over-year increase was mainly due to lower material costs per unit, partially offset by changes in product mix.

看看利潤。汽車利潤率為 10.2%，而去年第一季為 9.2%，上季為 13.1%。年比增長主要是由於單位材料成本下降，但部分被產品結構變化所抵消。

The quarter-over-quarter decline was mainly due to the increased manufacturing cost per unit from lower production volume. Overall gross margin was 7.6% compared with 4.9% in Q1 last year, and 11.7% last quarter.

環比下降主要是由於產量下降導致單位製造成本增加。整體毛利率為 7.6%，而去年第一季為 4.9%，上季為 11.7%。

The year-over-year increase was mainly driven by first, higher sales of parts, accessories, after sales vehicle services and technical R&D services which carry relatively higher margins. Second, higher vehicle margin; and third, the reduced gross loss rate from Power Solutions as our user base grew. The decrease quarter-over-quarter was mainly attributable to lower vehicle margin.

年比成長主要得益於：一是零件、配件、售後汽車服務和技術研發服務的銷售增加，這些產品的利潤率相對較高。第二，車輛利潤率更高；第三，隨著用戶群的成長，Power Solutions 的毛損失率降低。環比下降主要歸因於車輛利潤率下降。

Turning to OpEx. R&D expenses were RMB3.2 billion, increased 11.1% year-over-year and decreased 12.5% quarter-over-quarter. The year-over-year increase was mainly due to the incremental design and development costs for the new products and technologies as well as the increased personnel cost in R&D functions.

轉向 OpEx。研發費用為32億元，年增11.1%，季減12.5%。年比成長主要由於新產品、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。

The quarter-over-quarter decrease was mainly driven by decreased the design and development costs resulting from different stages of development, partially offset by increased personnel costs. SG&A expenses were RMB4.4 billion, up 46.8% year-over-year and down 9.8% quarter-over-quarter.

環比下降主要是由於不同開發階段導致的設計和開發成本下降，但被人員成本的增加部分抵消。銷售、一般及行政費用為人民幣44億元，較去年成長46.8%，較上季下降9.8%。

The year-over-year increase was mainly driven by the increase in personnel costs related to sales functions and the increase in sales and marketing activities. The quarter-over-quarter decrease was mainly due to the decrease in sales and marketing activities and professional services, partially offset by the incremental personnel costs.

年比成長主要由於與銷售職能相關的人員成本增加以及銷售和行銷活動的增加。環比下降主要由於銷售和行銷活動以及專業服務的減少，但被增量的人事成本部分抵消。

Loss from operations was RMB6.4 billion, up 19% year-over-year and 6.4% quarter-over-quarter. Net loss was RMB6.8 billion, showing an increase of year-over-year and a decrease of 5.1% quarter-over-quarter.

經營虧損為人民幣64億元，較去年成長19%，較上季成長6.4%。淨虧損為68億元，年成長，季減5.1%。

That wraps up our prepared remarks. For more information and the details of our unaudited first quarter 2025 financial results, please refer to our earnings press release. Now I will turn the call over to the operator to start our Q&A session. Thank you.

我們的準備好的演講到此結束。有關更多資訊和我們未經審計的 2025 年第一季度財務業績的詳細信息，請參閱我們的收益新聞稿。現在我將把電話轉給接線員，開始我們的問答環節。謝謝。

(Operator Instructions) Tim Hsiao, Morgan Stanley.

（操作員指示）摩根士丹利的 Tim Hsiao。

Hi, William, Stanley, and Tim. Thanks for taking my question. This is Tim from Morgan Stanley. I actually have two questions. The first one is about the volume sales. Because (inaudible) at the announcement in the second quarter volume guidance about 72,000 to 75,000 vehicles. I think that implies a more moderate sales increase despite the rest of launches of four new models.

嗨，威廉、史丹利和蒂姆。感謝您回答我的問題。我是摩根士丹利的提姆。我實際上有兩個問題。第一個是關於銷量。因為（聽不清楚）公告中第二季銷售預期約為 72,000 至 75,000 輛。我認為這意味著儘管還有四款新車型推出，但銷售成長仍將較為溫和。

So looking for how could NIO give the sales NIO 5 and 6 series and extra push in the following months to achieve our previous target of 30,000 monthly sales for the NIO's main brand by year-end? That's my first question. Thank you.

那麼，蔚來汽車如何在接下來的幾個月裡進一步推動蔚來 5 和 6 系列的銷量，以實現我們先前設定的年底蔚來主品牌月銷量 30,000 輛的目標呢？這是我的第一個問題。謝謝。

(spoken in foreign language)

（用外語說）

Thank you for the question. As we have stated, our quarterly guidance for the (inaudible) 72,000 to 75,000 units. In that case, we expect to deliver around 25,000 to 28,000 units in June. And in terms of the core volume driver for the new brand, as we have just risen the upgraded and launched our NIO (inaudible) EC6, ET5, ET5T in late May, and we have just started delivery of this four new models, then they are going to experience their first (inaudible) month in June.

謝謝你的提問。正如我們所說，我們的季度預期是（聽不清楚）72,000 到 75,000 個單位。在這種情況下，我們預計 6 月份交付量約為 25,000 至 28,000 台。就新品牌的核心銷售驅動力而言，由於我們剛剛在 5 月底升級並推出了 NIO（聽不清楚）EC6、ET5、ET5T，並且我們剛開始交付這四款新車型，它們將在 6 月迎來第一個（聽不清楚）月份。

As you can tell from their MSRP, there is actually no changes with the selling price of this four model, yet considering that before the launch of the four models to clean up the inventories, we had provided some promotions on this four models in the previous generation.

從建議零售價可以看出，這四款車型的售價其實沒有什麼變化，但考慮到在推出這四款車型之前為了清理庫存，我們在上一代車型上對這四款車型進行了一定的促銷。

With that, the actual price increase is around 10% from lost generation to this generation. So for the next step, we are going to stabilize on the prices of these four new models. And looking at the vehicle gross margin, actually the improvement is more than 10% from last generation to the model year '25. And also, the bigger principle for us is to realize a good gross profit than simply looking at vehicle sales volume.

這樣一來，從失去的一代到這一代，實際價格漲幅約為 10%。所以下一步我們會穩定這四款新車型的價格。從車輛毛利率來看，與上一代車型相比，25 款車型實際上提高了 10% 以上。而且，對我們來說，更大的原則是實現良好的毛利，而不是簡單地看汽車銷售。

As we also look at our overall performance from the P&L perspective, in that case, we really need to strike a balance between the sales volume and also the selling prices of our products. And also in the meantime, we will keep improving our operational efficiency and the system.

由於我們也從損益角度看待我們的整體業績，因此在這種情況下，我們確實需要在產品的銷售量和售價之間取得平衡。同時，我們也將持續提高營運效率和系統。

And going into the fourth quarter, we are going to introduce our all new ES8, the next generation ES8, which is a highly competitive product. With that, we believe that in Q4, for the NIO brand, the monthly delivery will be around 25,000 units.

進入第四季度，我們將推出全新的 ES8，即下一代 ES8，這是一款極具競爭力的產品。因此，我們認為第四季蔚來品牌的月交付量將在2.5萬輛左右。

That's around 20% year-over-year growth from last year's Q4, which was around 20,000 units a month. In that case, while improving the sales volume, we are also going to improving our vehicle gross margin significantly for the new brand to be above 20% in Q4.

與去年第四季每月約 2 萬台的銷量相比，這一數字年增了約 20%。這樣，在提高銷售量的同時，我們也將大幅提高新品牌的汽車毛利率，到第四季達到20%以上。

Thank you very much. Yeah. My second question is about the cost reduction. Because you noticed that NIO has implemented a series of cost-cutting majors over the past six months. So we're not going to see more meaningful contribution from such cost reduction effort and could you please quantify (inaudible) we could probably see more significant improvement into second half? That's my second question. Thank you.

非常感謝。是的。我的第二個問題是關於降低成本。因為您注意到蔚來汽車在過去六個月中實施了一系列削減成本的重大舉措。因此，我們不會看到這種成本削減措施帶來更有意義的貢獻，您能否量化（聽不清楚）我們可能會在下半年看到更顯著的改善？這是我的第二個問題。謝謝。

(spoken in foreign language)

（用外語說）

Thank you for the question. As you've mentioned, since March, we have conducted a series of cost control and efficiency improvement measures. And here, I would like to further elaborate on that from the following aspects.

謝謝你的提問。正如您所說，自3月以來，我們實施了一系列成本控制和效率提升措施。這裡，我願從以下幾個面向作進一步闡述。

The first is regarding our short-term work. Basically, when we view and sort out all the key matters, projects and organizations and to look at the things that are not going to generate positive return on investment within the year, and we have made the determined actions in terminating (inaudible) for the short-term return.

第一是關於我們短期工作。基本上，當我們查看並整理所有關鍵事項、專案和組織，並查看哪些事項在一年內不會產生正投資回報時，我們就採取了堅決的行動來終止（聽不清楚）短期回報。

And the second is regarding the efficiency improvement, this is also mentioned by William in his prepared remarks. In terms of improving efficiency, we also conducted the actions in the following aspects. The first is from the R&D perspective.

第二是關於提高效率，威廉在他的準備好的演講中也提到了這一點。在提升效率方面，我們也進行了以下幾方面的行動。第一是從研發角度。

We have established a new mechanism called (inaudible) product line. With that, we have majorly merged the R&D resources of the NIO brand, ONVO brand and firefly brand to further improve the overall efficiency of our R&D activities.

我們建立了一種稱為（聽不清楚）產品線的新機制。在此基礎上，我們將蔚來品牌、ONVO品牌與螢火蟲品牌的研發資源進行重點整合，進一步提升整體研發效率。

(spoken in foreign language)

（用外語說）

And the second is regarding the improvements in the industrialization cluster, we have optimized and restructured the logistics functions, quality functions and also supply chain by streamlining the team and also merging repetitive roles. And certainly, we have also made improvements in the sales and the service side.

第二是關於產業群聚的改進，我們透過精簡團隊和合併重複角色，優化和重組了物流職能、品質職能和供應鏈。當然，我們在銷售和服務方面也取得了進展。

For the non-frontline teams, we have also made a major improvements and also consolidations on the teams, including their roles and also positions to better improve the efficiency and the productivity of the teams, especially the back-end teams. With that, we are going to witness the savings from the spending perspective and such savings will be reflected in our Q2 earnings and also the corresponding results.

對於非第一線團隊，我們也對團隊進行了較大的改進和整合，包括他們的角色和職位，以更好地提高團隊，特別是後端團隊的效率和生產力。這樣，我們將從支出角度見證節省，這種節省將反映在我們的第二季收益和相應的結果中。

(spoken in foreign language)

（用外語說）

And more specifically on the tighter control over the spending regarding the R&D spending, in Q2, our target is after excluding the one-off impact, we would like to achieve a 15% improvement were actually R&D expense reduction.

更具體地說，在對研發支出進行更嚴格的控制方面，在第二季度，我們的目標是在排除一次性影響後，實現 15% 的改善，實際上是研發費用的減少。

And in Q4, as we also have the breakeven target, we aim to control our R&D expenses to be within RMB2 billion to RMB2.5 billion per quarter. That represents a 20% to 25% year-over-year decrease from last year. And regarding the SG&A expenses, this is also relevant to the marketing activities and also the tightened competition in the market as well as our sales performance.

而在第四季度，我們也有損益平衡的目標，我們的目標是將每季的研發費用控制在20億元至25億元之間。與去年相比，這一數字下降了 20% 至 25%。至於銷售、一般及行政費用，這也與行銷活動、市場競爭加劇以及我們的銷售業績有關。

So we will also manage the SG&A expenses in a very careful and prudent way. carefully balancing the return and also the investments on all these campaigns and activities. The target is to reduce the SG&A expenses quarter-over-quarter from Q2 this year. And by Q4, considering the breakeven target as well, our target is to control our non-GAAP SG&A expenses to be within 10% of the sales revenue.

因此，我們也將以非常謹慎和審慎的方式管理銷售、一般和行政費用，仔細平衡所有這些活動和活動的投資和回報。目標是從今年第二季開始逐季減少銷售、一般及行政費用。到第四季度，考慮到損益平衡目標，我們的目標是將非 GAAP SG&A 費用控制在銷售收入的 10％ 以內。

Thank you, thanks a lot.

謝謝，非常感謝。

Ming-Hsun Lee, Bank of America.

美國銀行的李明勳（Ming-Hsun Lee）。

Thank you, Benjamin. This is Ming. I also have two questions. My first question is related to your NIO World Model. So after you launch the NIO World Model in (inaudible) what is the feedback from your users? And also compared to your original rule-based autonomous driving solution, how more advanced after you launch your World Model?

謝謝你，班傑明。這是明。我也有兩個問題。我的第一個問題與您的 NIO 世界模型有關。那麼，在您推出 NIO World Model 之後（聽不清楚），您的用戶的回饋如何？另外，與您原來的基於規則的自動駕駛解決方案相比，推出世界模型後，它有多先進？

And for your -- because right now, in certain models, you are using your own design chip. So you already save some cost. Do you also give up those benefit to users. In the future, we'll no also use the same chips. Thank you. That's my first question.

因為現在，在某些型號中，您正在使用自己設計的晶片。所以你已經節省了一些成本。你們也放棄那些對使用者的利益嗎？將來，我們不會再使用相同的晶片。謝謝。這是我的第一個問題。

(spoken in foreign language)

（用外語說）

Thank you for the question. In late May, we have started to release and roll out our first smart driving version based on the New World Model, NWM to the Banyan users. Those are the users who are running on our second-generation platform product.

謝謝你的提問。5月下旬，我們開始向Banyan用戶發布並推廣基於新世界模型的首個智慧駕駛版本NWM。這些都是使用我們第二代平台產品的使用者。

(spoken in foreign language)

（用外語說）

And actually, in the previous versions, we have already released a series of active safety features based on our end-to-end architecture and solutions. With that, we also see a significant decrease in the accidents and also the (inaudible) of the accidents and a better driving safety with our active safety features.

實際上，在先前的版本中，我們已經基於端到端架構和解決方案發布了一系列主動安全功能。同時，我們也看到事故發生率和（聽不清楚）顯著下降，並且透過我們的主動安全功能提高了駕駛安全性。

For example, for the New World Model, we have also released the emergency safety pullover. This also is one of the first in the industry. Overall speaking, our vision for smart driving is to reduce traffic accidents. And in that case, our active safety and our smart driving future in general has been leading in the industry.

例如，針對新世界車型，我們也推出了緊急安全套衫。這也是業界首創之一。整體來說，我們對智慧駕駛的願景是減少交通事故。在這種情況下，我們的主動安全性和智慧駕駛未來總體上在行業中處於領先地位。

(spoken in foreign language)

（用外語說）

And the second key vision of our smart driving is to release the driving pressure and stress. In that case, NWM-based version has also provided better experience across all scenarios. For example, we have -- we are also one of the first to release the point-to-point smart driving and also parking. Our overall experience is better our peers in the industry. With NWM, we have achieved a better experience in highways and also urban express ways.

我們智慧駕駛的第二個關鍵願景是釋放駕駛壓力和緊張。這樣一來，基於NWM的版本也在所有場景下提供了更好的體驗。例如，我們也是最早發佈點對點智慧駕駛和停車技術的公司之一。我們的整體經驗比業內同行更好。借助NWM，我們在高速公路和城市快速路上獲得了更好的體驗。

Our original experience based on the previous version was already good. And right now, we the overall smart driving experience even more seamless. For example, automatic pass-through of the toll gates on highways.

我們原本基於之前版本的體驗就已經很好了。現在，我們的整體智慧駕駛體驗更加無縫。例如高速公路收費站的自動通行。

And in terms of the smart driving in urban roads, we have also achieved very good point-to-point smart driving. That's basically smart driving from a parking well to a parking lot with a high usability and good experience. So basically, we have achieved a good smart driving experience across three key scenarios of our users.

而且在城市道路的智慧駕駛方面，我們也實現了非常好的點對點智慧駕駛。這基本上就是從停車場到停車場的智慧駕駛，具有很高的可用性和良好的體驗。所以基本上我們在用戶的三個關鍵場景中實現了良好的智慧駕駛體驗。

(spoken in foreign language)

（用外語說）

For example, we have released this automatic (inaudible) in the parking lots where our users can provide natural language comment to ask the car to navigate to a parking space across different floors or even regions within the parking lot. And this is just one of the many new features that we are going to release based on the NWM enabled smart driving features. And with that, we also see the possibilities in improving the experience with NWM.

例如，我們在停車場發布了這款自動（聽不清楚）系統，使用者可以提供自然語言評論，讓汽車導航到不同樓層甚至停車場內不同區域的停車位。而這只是我們即將發布的基於NWM支援的智慧駕駛功能的眾多新功能之一。由此，我們也看到了改善 NWM 體驗的可能性。

So overall speaking, this is a version that we have restructured the entire smart driving with our data close look and also future close look. For the next step, we will keep improving and iterating this feature based on the feedback provided by our users to make the overall experience more seamless and also more useful.

所以總體來說，這是我們透過對數據的深入觀察和對未來的深入觀察，對整個智慧駕駛進行重構的版本。下一步，我們將根據使用者的回饋不斷改進和迭代此功能，以使整體體驗更加無縫且更加實用。

(spoken in foreign language)

（用外語說）

So that's the NWM-based smart driving version released to the Banyan system. And in the meantime, as our third-generation platform, (inaudible) EC9 and also the new (inaudible) products, they are running on our in-house developed smart driving chip NX1931. And the NWM-based version running on NX1931 will be released in late June.

這就是基於NWM向Banyan系統發布的智慧駕駛版本。同時，作為我們的第三代平台，（聽不清楚）EC9 以及新的（聽不清楚）產品，它們都運行在我們自主研發的智慧駕駛晶片 NX1931 上。而基於NX1931運行的NWM版本將於6月下旬發布。

That's our expected release date. But that is around one month later than the release to (inaudible) platform and the specific release date will also be dependent on the actual approving process and the reporting process. The R&D process is actually in good progress.

這就是我們的預計發布日期。但這比發佈到（聽不清楚）平台晚了大約一個月，具體發布日期還將取決於實際的審批流程和報告流程。研發過程其實進展順利。

(spoken in foreign language)

（用外語說）

And for the long term, ONVO products will also switch to the in-house developed smart driving chips.

而從長遠來看，ONVO產品也將轉向自主研發的智慧駕駛晶片。

Yeah, so next question is related to ONVO brand. So after you have some measurement change, what is the strategy to enhance the volume sales of L60? And also, what is your expectation of L80 and L90?

是的，下一個問題與 ONVO 品牌有關。那麼在進行一些尺寸調整後，提高L60銷售的策略是什麼呢？另外，您對 L80 和 L90 的期望是什麼？

(spoken in foreign language)

（用外語說）

Thank you for the question. In April, we have made major organizational and operational adjustments to ONVO, including the adjustments to the core management, sales team as well as the regional teams. As we were making major investments, the good sign is that we did major impact or a negative impact on the sales volume of L60.

謝謝你的提問。今年4月，我們對ONVO進行了重大的組織和營運調整，包括核心管理層、銷售團隊以及區域團隊的調整。由於我們正在進行重大投資，好的跡像是我們對 L60 的銷量產生了重大影響或負面影響。

Actually, in late April, we witnessed the growing order momentum of this product. And in May, the monthly delivery of L60 is more than 40% higher than in April. And these are the positive changes that we've seen.

事實上，在4月下旬，我們就見證了該產品訂單成長的動能。且5月份L60的月交貨量較4月份成長了40%以上。這些都是我們所看到的正面改變。

(spoken in foreign language)

（用外語說）

And if we look at the actual product performance and competitiveness in the market, regarding L60 in the first four months of this year, among the battery electric vehicle price between CNY200,000 to CNY300,000 (inaudible) has been the top three bestselling product in that segment. And we also expect its performance to continue to pick up in May and June. And this has also demonstrated the strong product performance and strength in the market.

而如果從實際的產品表現和市場競爭力來看，L60今年前四個月在20萬到30萬（聽不清楚）價位的純電動車中，已經是該價位段銷量前三的產品。我們也預計其業績將在5月和6月繼續回升。而這也體現了其強大的產品性能和市場實力。

(spoken in foreign language)

（用外語說）

However, the product competitiveness and performance is just one of the foundations. In the meantime, we also see the maturity with our sales and service network. ONVO now have more than 440 stores, and many of the stores, including the frontline and the follow teams are also getting more mature and adapted to (inaudible) that case for the next step, we will also -- as they are making major contribution or growing contribution to the sales volume for the next step, we will also keep improving the operating efficiency and also productivity of the teams and stores.

然而，產品競爭力和性能只是基礎之一。同時，我們也看到我們的銷售和服務網絡日趨成熟。ONVO現在有超過440家門市，許多門市包括第一線和後續團隊也都越來越成熟和適應（聽不清楚），對於下一步的情況，我們也將——因為他們對銷售量的貢獻越來越大，對於下一步，我們也將繼續提高團隊和門市的營運效率和生產力。

(spoken in foreign language)

（用外語說）

And the third key driver is regarding our battery swap and also hybrid charging and swapping network, mainly the battery swapping network. Right now, in China, more than 1,900 power (inaudible) are available for ONVO users with more -- a lot more batteries available or circulating in the power swap system for the ONVO users.

第三個關鍵驅動因素是我們的電池更換以及混合充電和更換網絡，主要是電池更換網絡。目前，在中國，有超過 1,900 個電源（聽不清楚）可供 ONVO 用戶使用，並且有更多的電池在電源交換系統中可供 ONVO 用戶使用或流通。

And in the meantime, we are rolling out this (inaudible) where we are increasing the content level coverage of our power (inaudible) network, so far in Beijing, Shanghai, (inaudible), we already see the country level coverage of our power swap network.

同時，我們正在推出這項（聽不清楚）計劃，以增加我們的電力（聽不清楚）網路的內容級覆蓋範圍，到目前為止，在北京、上海（聽不清楚），我們已經看到了我們的電力交換網絡的國家級覆蓋範圍。

And for the next step, we will continue to increase such coverage across more provinces and countries which will be actually even more important for the ONVO users and products.

下一步，我們將繼續擴大覆蓋範圍，涵蓋更多的省份和國家，這對 ONVO 用戶和產品來說其實更為重要。

(spoken in foreign language)

（用外語說）

And in the meantime, in lower-tier cities like third or fourth tier cities, we are also trying to use a power swap station as a window of opportunities for point of sales for the Southern operations but offer lower fixed costs than physical stores.

同時，在三、四線城市等低線城市，我們也嘗試利用換電站作為南方業務銷售點的機會窗口，但固定成本卻低於實體店。

So to put it simple, basically in some countries and also (inaudible) cities we don't need to open up the actual stores or showrooms, in fact, we can use the power swap station as a point of the sales to present our products, provide experience and (inaudible) test drive sessions for our users supported and facilitated by the local sales team.

簡單來說，基本上在一些國家和（聽不清楚）城市，我們不需要開設實際的商店或展廳，事實上，我們可以使用換電站作為銷售點來展示我們的產品，在當地銷售團隊的支持和協助下，為我們的用戶提供體驗和（聽不清楚）試駕課程。

This is actually a unique advantage of NIO as the entire company, especially to boost the sales in the lower-tier cities. This will be very important and also a systematic approach to boost the sales of ONVO.

這其實是蔚來汽車作為整個公司的獨特優勢，特別是能夠推動低線城市的銷售。這對於提升 ONVO 的銷售量非常重要，也是一個系統性的方法。

(spoken in foreign language)

（用外語說）

With that, we are confident that the monthly sales volume of ONVO L60 will be bouncing back to more than 10,000 units. And in the meantime, the second product of ONVO L90 will be released and delivered in Q3 this year.

有信心，ONVO L60的月銷量將回升至10,000台以上。同時，ONVO L90的第二款產品也將於今年第三季發表並交付。

Since its debut at the Shanghai Auto Show, we have also brought the product to several cities for the showcasing, and our users are actually looking forward to this product as L90 comes with a huge trunk. This has also solved one of the biggest pinpoints of a three row SUV without enough space for storage and luggage.

從上海車展亮相之後，我們也帶著這款產品到國內多個城市進行過展示，而且由於L90擁有超大的後備箱，用戶對於這款產品也是非常期待的。這也解決了三排SUV最大的問題之一，儲物和行李空間不足。

And also in the recent information released by the MIIT, ONVO L90 also boosted impressive energy consumption and energy efficiency within its class. So basically, we believe that L90 will be a game changer in the large space, SUV or three row SUV segment. And in Q4, we will also release the L80 product then by end of this year, there will be three products under the ONVO brand.

而且在近期工信部公佈的資訊中，ONVO L90的能耗比和能源效率比也在同級中提升了不少。所以基本上，我們相信 L90 將會改變大空間、SUV 或三排 SUV 領域的遊戲規則。並且在第四季度，我們也將發表L80產品，到今年底，ONVO品牌下將有三款產品。

And this three products will all be targeting family segments with high good qualities and experiences. And this lineup will also better -- will also provide better synergies. And in that case, our target is to realize a monthly delivery of 25,000 units of these three products in Q4.

而這三款產品都將瞄準高品質、高體驗的家庭市場。而且這個陣容也會更好——也會提供更好的綜效。在這種情況下，我們的目標是在第四季度實現這三種產品的每月交付量為 25,000 台。

Bin Wang, Deutsche Bank.

德意志銀行王斌。

(spoken in foreign language) My first question is about second quarter because you've got a new (inaudible) price and in-house semiconductor. Is any chance you can further (inaudible) expansion in the second quarter for vehicle margin, which will help the overall gross margin back to double digit.

（用外語說）我的第一個問題是關於第二季的，因為你們有一個新的（聽不清楚）價格和內部半導體。您是否有可能在第二季進一步（聽不清楚）擴大汽車利潤率，這將有助於整體毛利率回到兩位數。

(spoken in foreign language)

（用外語說）

Thank you for the question. As in Q2, we have completed the product transition for the NIO brand, we have successfully launched and started to deliver our NIO ET5, ET5T, EC6 and ES6. With that, we also witnessed the increase in the average selling price of the new models.

謝謝你的提問。與第二季一樣，我們完成了蔚來品牌的產品轉型，成功推出並開始交付蔚來ET5、ET5T、EC6和ES6。同時，我們也見證了新車型平均售價的上漲。

And also as the new models are equipped with the in-house developed chip, this can also contribute around RMB10,000 savings and cost reduction per unit. With that in Q2, the vehicle gross margin of the NIO brand will be improved to around 15%. .

而且由於新車型都配備了自主研發的晶片，每輛車也能節省約1萬元人民幣的成本。預計第二季蔚來品牌整車毛利率將提升至15%左右。。

And for the ONVO brand as in the second quarter, it will still only have one product, L60, as the L90 will be released in Q3. Then with -- as we expect the growing volume for the L60, we also expect certain improvements regarding the manufacturing costs driven by the volume increase.

ONVO品牌與第二季一樣，仍然只有一款產品L60，L90將於第三季發布。然後——正如我們預期的那樣，L60 的銷量會不斷增長，我們也預計產量增加會推動製造成本有所改善。

But only contributed by one model, the improvements from the manufacturing cost perspective will be limited. And the major gross margin driver for the ONVO brand will still be happening in Q3, driven by the launch of the new model. With that, we believe that the overall gross margin in Q2 will be coming back to double digit. That's our target.

但僅憑一款機型的貢獻，從製造成本角度來看改善幅度將有限。而ONVO品牌毛利率的主要驅動力仍將在第三季度，受新車型推出的推動。因此，我們相信第二季的整體毛利率將回升至兩位數。這就是我們的目標。

(spoken in foreign language)

（用外語說）

And a little bit more information on the NIO products. As our core volume product, 55 and 66, we're having the vertical product transition during the April and May with that to clean up the inventories for the previous generations, we offered promotions with that the actual vehicle margin for that generation was relatively low.

以及有關 NIO 產品的更多資訊。作為我們的核心量產產品55和66，我們在4月和5月期間進行了垂直產品轉型，為了清理前幾代產品的庫存，我們推出了促銷活動，但該代產品的實際車輛利潤率相對較低。

But starting to and as we are rolling out and delivering new products, we also witnessed better or improved the margin on this product. For ES6, the vehicle gross margin will be around 20%, EC6 slightly higher than the S6 and also for the ET5 and ET5 Touring, we also expect to improved vehicle gross margin. So overall speaking for the new brand, the vehicle margin improvement is on the right track.

但隨著我們開始推出和交付新產品，我們也見證了該產品利潤率的提高或改善。對於 ES6，車輛毛利率將在 20% 左右，EC6 略高於 S6；對於 ET5 和 ET5 Touring，我們也預計車輛毛利率會有所提高。因此總體而言，對於新品牌而言，車輛利潤率的提高正走在正確的軌道上。

(spoken in foreign language) My question is about the number four quarter breakeven assumptions. Basically, you just guide NIO brand will reach 25,000 in the four quarter this year. Similarly, ONVO brand, we will also reach 25,000. 130,000 in the four quarter, we have RMB250,000. Roughly, we can reach [RMB35 billion] top line. So we got 18% gross margin, [RMB6 billion] gross profit.

（以外語說）我的問題是關於第四季損益平衡假設。基本上你剛剛引導蔚來品牌今年第四季銷售量會達到2.5萬輛。同樣ONVO品牌，我們也將達到2.5萬。第四季13萬，我們有25萬人民幣。粗略地講，我們的營收可以達到[350億元人民幣]。因此我們的毛利率為 18%，毛利為 60 億元。

You have mentioned you (inaudible). You also actually guided in the same (inaudible) will be around (inaudible) of the top line. So overall, the total (inaudible) Can I assume roughly the assumption to reach a breakeven in four quarter? Thank you.

你提到過你（聽不清楚）。您實際上也引導了相同的（聽不清楚）將圍繞（聽不清楚）頂線。所以整體而言，整體（聽不清楚）我可以大致假設在四個季度內達到收支平衡嗎？謝謝。

(spoken in foreign language)

（用外語說）

Thank you for the question. Actually, the equation you have mentioned is more or less our operational target internally as well. Regarding the monthly sales volume slightly over 50,000 units a month, vehicle gross margin 17% to 18% combined margin.

謝謝你的提問。實際上，您提到的這個等式，實際上也是我們內部的營運目標。每月銷量略高於5萬輛，整車毛利率為17%至18%，綜合利潤率。

And SG&A expenses within 10% of the sales revenues and for the R&D expenses also achieving that level of management and control. With that, we are able -- where we have the confidence of achieving the breakeven as we see also our peers who achieved the profitability running on a similar scale and also the similar numbers.

SG&A費用控制在銷售收入的10%以內，研發費用也達到了這個管控水準。有了它，我們就有信心實現收支平衡，因為我們也看到我們的同行在類似的規模和數字上實現了盈利。

(spoken in foreign language)

（用外語說）

Back in 2021, when we just had one NIO brand, we also managed to achieve a vehicle gross margin of over 20%. But back then, we haven't started the major investment in the R&D or the multi-brand strategy. As starting recent years, we have witnessed quarter-over-quarter losses, mainly because of our intensive investment into the R&D of the new products and technologies, multi-brand strategy and also the network development, especially infrastructure network.

2021年我們只有一個蔚來品牌的時候，也做到了整車毛利率超過20%。但當時我們還沒有開始對研發或多品牌策略進行大規模投資。從最近幾年開始，我們出現了季度環比虧損，主要是因為我們對新產品和新技術的研發、多品牌策略以及網路建設，特別是基礎設施網路的大量投資。

But starting Q2 this year, we are also starting up a year of a harvest or a period of harvest where we are going to see the tangible results starting Q2 and then towards Q4 this year, the results from our brand development product development network and also network development as well as the cost reductions and efficiency improvements. With that, I think your equation or your assumption is also a guidance for us to achieve our operational target and also profitability in Q4 this year, and we are confident in that.

但從今年第二季度開始，我們也開始了收穫的一年或收穫期，我們將從今年第二季度開始看到切實的成果，然後到今年第四季度，我們將看到品牌發展、產品開發網絡和網絡發展的成果，以及成本降低和效率提高的成果。因此，我認為您的公式或假設也對我們實現今年第四季的營運目標和獲利能力具有指導作用，我們對此充滿信心。

Thank you very much. Thank you.

非常感謝。謝謝。

Paul Gong, UBS.

保羅龔，瑞銀。

Hi, William. Thanks for taking my question. My first question is regarding the market feedback after the delivery of the 5 Series and 6 Series. I have seen some positive comments, but also have seen some disappointment among some of the car buyers saying it is still using like 400 volt battery instead of like the 900 volts (inaudible).

你好，威廉。感謝您回答我的問題。我的第一個問題是關於5系和6系交付後的市場回饋。我看到了一些正面的評論，但也看到一些購車者表示失望，他們說這款車仍然使用 400 伏特電池，而不是 900 伏特（聽不清楚）。

Do you have any plan to switch into the 900-volt battery system at certain point? And what other feedback have you received from the car buyers? That's my first question. Thank you.

您是否有計劃在某個時候切換到 900 伏特電池系統？您還收到了哪些購車者的回饋？這是我的第一個問題。謝謝。

(spoken in foreign language)

（用外語說）

Thank you for the question. Since the launch of our new ES6, EC6, ET5 and ET5T in late May, we have received quite a lot market feedback and mostly positive as people do see significant improvement in the product competitiveness, especially for the chip technologies, (inaudible) operating system and also active safety features we have debuted on the (inaudible) also now available on the 5 and the 6 Series models.

謝謝你的提問。自從 5 月底推出新款 ES6、EC6、ET5 和 ET5T 以來，我們收到了相當多的市場反饋，而且大多是積極的，因為人們確實看到了產品競爭力的顯著提高，尤其是晶片技術、（聽不清楚）操作系統以及我們在（聽不清楚）上首次推出的主動安全功能現在也適用於 5 系列和 6 系列車型。

(spoken in foreign language)

（用外語說）

And regarding the high-voltage platform for the 55 and the 66, they are still running on the 400 volts. The overall feedback is also okay as we not only have improved the energy efficiency of these 4 models for extended driving range than the previous generation, we also have our power swap network that can ensure a good experience our users, especially we have dischargeable, swappable and upgradable network enabled by the power swap. We also provided the flexible battery upgrade (inaudible) to our users for the new 55 and 66 models.

至於 55 和 66 的高壓平台，它們仍然在 400 伏特下運作。整體回饋還不錯，我們不僅提升了這4款車型的能效，延長了續航里程，比上一代車型有了提升，而且我們還有換電網絡，可以保證用戶的良好體驗，特別是我們擁有可放電、可更換、可升級的換電網絡。我們也為新款 55 和 66 型號的用戶提供了靈活的電池升級（聽不清楚）。

In that case, they have the flexibility to upgrade to 100-kilowatt hour battery for longer range. And if they I would like to have an even longer range, they can also choose to upgrade to 150-kilowatt-hour battery with more than 1,000 kilometer driving range.

在這種情況下，他們可以靈活地升級到 100 千瓦時的電池，以增加續航里程。如果他們想要更長的續航里程，他們還可以選擇升級到 150 千瓦時的電池，續航里程超過 1,000 公里。

So overall speaking with improved energy efficiency and also chargeable, swappable network, the feedback on the high-voltage system is fine. And for the short term, we don't have plan to upgrade these four models to the 900-volt architecture platform.

因此，整體而言，隨著能源效率的提高以及可充電、可交換網路的出現，高壓系統的回饋很好。而且短期內我們還沒有打算將這四款車型升級到900伏特架構平台。

Thank you Paul.

謝謝你，保羅。

Yeah, thank you. My second question is regarding the channel network. Right now, you have the NIO, ONVO network and (inaudible) is sold within the NIO system. And just now you have mentioned that there is some innovative and NIO exclusive solutions (inaudible) station and to do the product demo and (inaudible)

是的，謝謝。第二個問題是關於通路網路的。現在，您擁有 NIO、ONVO 網絡，並且（聽不清楚）在 NIO 系統內銷售。剛才您提到，有一些創新和蔚來專屬解決方案（聽不清楚）站，並進行產品展示和（聽不清楚）

Do you foresee at certain points that you could further reform the channels and by (inaudible) with the synergies between the two network and perhaps some cross-sell or some time like merger of the network, how do you think about the channel management?

您是否預見到在某些時候您可以進一步改革管道，並透過（聽不清楚）兩個網路之間的協同作用以及一些交叉銷售或網路合併，您如何看待管道管理？

(spoken in foreign language)

（用外語說）

Thank you for the questions. Regarding the point of sale for the ONVO and the NIO brands, we will still keep them separated. But in the mid and back end, we are leveraging the synergies and also better integrate between these two brands both in the headquarters and also in the regions.

謝謝您的提問。關於 ONVO 和 NIO 品牌的銷售點，我們仍然會將它們分開。但在中端和後端，我們正在利用協同效應，並在總部和各地區更好地整合這兩個品牌。

As actually, in many regions, the general managers of those regions are taking the (inaudible) roles to manage the sales of both new and the ONVO brands. So overall speaking, we will better integrate these two brands from the mid and back-end perspective for better efficiency and synergies.

實際上，在許多地區，這些地區的總經理都承擔著（聽不清楚）管理新品牌和 ONVO 品牌銷售的職責。所以整體來說，我們會從中後端的角度把這兩個品牌更好地整合起來，從而提高效率和協同效應。

But in the meantime, we will also need to strike a balance between efficiency and the brand differentiation. So the longer term is to further integrate and leverage the synergies that will not be combining the point of sale.

但同時，我們也需要在效率和品牌差異化之間取得平衡。因此，長期目標是進一步整合和利用不會合併銷售點的綜效。

(spoken in foreign language)

（用外語說）

Regarding using power substations as a point of sales, we are doing some demonstrations and the pilot rounds in certain regions where we will not open the stores, but use the power substations as a window to get -- to reach out to our users and demonstrate our products and services.

關於使用變電站作為銷售點，我們正在某些地區進行一些演示和試點，在這些地區我們不會開設商店，而是使用變電站作為窗口來接觸我們的用戶並展示我們的產品和服務。

In that case, we will have the sales team and follows on site, but they will promote the product without having the stores. This is actually a unique selling point where a unique advantage of the NIO company by leveraging the power (inaudible).

在這種情況下，我們將有銷售團隊和現場跟進人員，但他們將在沒有商店的情況下推廣產品。這實際上是蔚來汽車的一個獨特賣點，透過利用其強大的（聽不清楚）。

And especially for the ONVO users in our survey, we have find that around 60% of ONVO users actually think power swap station where the capability of doing power swap is the top purchasing reason for them to buy the ONVO product. This is also another demonstration of the significant value of the power swap for the ONVO products and ONVO sales.

尤其對於我們調查中的 ONVO 用戶，我們發現大約 60% 的 ONVO 用戶實際上認為換電站的換電能力是他們購買 ONVO 產品的首要原因。這也再次反映了此次股權置換對於ONVO產品和ONVO銷售的重要價值。

And the same actually happens to the NIO brand as there is a small county in (inaudible). And in that place -- actually there's a town in (inaudible). And in that place, we have no stores or showrooms but only several power swap stations, yet in that place, we have more than 1,000 new users.

同樣的情況也發生在蔚來汽車身上，因為（聽不清楚）。在那個地方——實際上有一個小鎮（聽不清楚）。在那個地方，我們沒有商店，沒有展廳，只有幾個換電站，但是，在那個地方，我們卻有1000多個新用戶。

This is also a lively case showing how power swap station can contribute to the sales volume. In that case, we are doing a series of systematic measures and also design centering on using power swap as a point of sale.

這也是換電站對銷售貢獻的一個鮮活的案例。在這種情況下，我們正在採取一系列系統性措施，並圍繞使用電力交換作為銷售點進行設計。

Thank you, Paul.

謝謝你，保羅。

Thank you very much, William. That's quite helpful.

非常感謝，威廉。這很有幫助。

Yuqian Ding, HSBC.

丁宇謙，匯豐銀行。

Yeah, thank you team. I got two questions. The first is on the continuous ONVO model. So the two new models is actually at a higher pricing point. What was the key selling point against the current backdrop that seems to be a little bit consumption downgrade this year? And roughly what's the mix between 60, 80 and 90 expectation, especially into -- by the end of the fourth quarter?

是的，謝謝團隊。我有兩個問題。第一個是關於連續 ONVO 模型。因此這兩款新車型的定價實際上更高。在目前看來今年消費似乎略有下降的背景下，關鍵賣點是什麼？預計 60、80 和 90 之間的比例大概是多少，尤其是到第四季末？

(spoken in foreign language)

（用外語說）

Thank you for the question. ONVO L90 is a smart market space flagship SUV. It's a three row SUV and the L80 is large five seater SUV, and both models are for -- mainly for the family users.

謝謝你的提問。ONVO L90是一款智慧市場空間旗艦SUV。它是一款三排 SUV，而 L80 是一款大型五人座 SUV，這兩款車型主要面向家庭用戶。

(spoken in foreign language)

（用外語說）

And overall speaking for the almost products, it is based out on NIO's technology and innovation with targeted design for the family users.

整體來說，幾乎所有產品都是基於蔚來的技術和創新，針對家庭用戶進行有針對性的設計。

(spoken in foreign language)

（用外語說）

And with that, we actually studied the mainstream family users in the Chinese market, and we have developed a value equation for the product definition and also development of the ONVO brand. With that, our design and also functionalities of the projects will mainly serve the value creation for the family users.

在此基礎上，我們實際上研究了中國市場的主流家庭用戶，並為 ONVO 品牌的產品定義和發展制定了價值方程式。因此，我們的專案設計和功能將主要為家庭用戶創造價值。

(spoken in foreign language)

（用外語說）

And as we have built the L9 (inaudible), we have demonstrated how large the space is with this model, especially with its big trunk with six occupants on board, the cars is still enough to accommodate (inaudible) Actually, this is an unprecedented functionality for a three row SUV, be it running on batteries, (inaudible) range extender. This is actually a product innovation driven by our tech innovation and space innovation.

當我們製造 L9（聽不清楚）時，我們已經展示了這種車型的空間有多大，特別是它的大後備箱，即使車上坐了六名乘客，汽車仍然足以容納（聽不清楚）實際上，對於三排 SUV 來說，這是一個前所未有的功能，無論是依靠電池運行，（聽不清楚）增程器。這其實是我們的技術創新和空間創新驅動的一個產品創新。

(spoken in foreign language)

（用外語說）

And in the recent information released by the MIIT people is also impressed by the low energy consumption and the energy efficiency of L90 because it's such a big three row SUV and running on 85-kilowatt hour battery, the car still manages to achieve 600-kilometer driving range.

而在工信部最近公佈的訊息中，L90的低能耗和能源效率也給人留下了深刻的印象，因為它是一款大型三排SUV，在85千瓦時的電池驅動下，該車仍能實現600公里的續航里程。

This is actually an impressive results achieved on this model and also a very important advantage for the family users considering the overall driving range and also the cost of their ownership.

這實際上是該車型取得的令人印象深刻的成果，對於家庭用戶來說，考慮到整體行駛里程和擁有成本，這也是一個非常重要的優勢。

(spoken in foreign language)

（用外語說）

And actually driven by the tech innovation and also the lowering (inaudible) price or in general battery costs, we are seeing a turning point for the growth of the mid and large SUV -- battery electric SUV. If you look at the first four months of this year regarding the growth rate in the mid- to large and also large SUV segments, the growth rates for the above models is actually 63% year-over-year. For the range-extended version is only 1%. For (inaudible), it's also roughly 60%.

實際上，在技術創新和降低（聽不清楚）價格或整體電池成本的推動下，我們看到了中大型 SUV——電池電動 SUV 成長的轉折點。如果看今年前四個月中大型和大型SUV細分市場的成長率，上述車型的成長率實際上比去年同期成長了63%。而增程版僅為 1%。對於（聽不清楚），也大約是 60%。

With this as a backdrop, we believe that L80 and L90 will be two game changers in this segment. And we have confidence for that as we are creating better experience and also more user value through our tech innovation and product innovation.

在此背景下，我們相信 L80 和 L90 將成為該領域的兩大遊戲規則改變者。我們對此充滿信心，因為我們正在透過技術創新和產品創新創造更好的體驗和更多的用戶價值。

Plus, we have our nationwide available power swap network to help relieve the range anxiety of our users. With that, we believe that this year, we'll also witness the turning point for the growth of mid and large battery electric SUV segment.

此外，我們擁有覆蓋全國的換電網絡，可以幫助用戶緩解續航里程焦慮。因此，我們相信，今年我們也將見證中大型純電動SUV市場的成長轉折點。

Thank you.

謝謝。

Thank you William. The second question is --

謝謝你，威廉。第二個問題是--

Yeah, go ahead please.

是的，請繼續。

Yeah, sorry, while the company is heading towards the fourth quarter breakeven target, we're also conscious that gearing ratio is also running high. Could you share a little bit more about the cash flow improvement and the cash management?

是的，抱歉，雖然公司正在朝著第四季度盈虧平衡的目標邁進，但我們也意​​識到負債率也很高。您能否分享更多有關現金流改善和現金管理的資訊？

(spoken in foreign language)

（用外語說）

Thank you for the question. In Q1 this year, we see the lower range of our cash position. This is partially due to the seasonality of the car sales as -- for last year, our sales volume was 72,000 units well in Q1, it's 42,000 units.

謝謝你的提問。今年第一季度，我們的現金狀況處於較低水準。這部分是由於汽車銷售的季節性，因為去年我們的銷售量為 72,000 輛，而第一季為 42,000 輛。

That has actually caused the outflow of the working capital of more than RMB10 billion. And in the meantime, we also have some capital expenses as well as the one-off expenses, for example, the put option for our convertible bonds, which is around RMB2.7 billion.

這實際上造成了100多億元的營運資金流出。同時，我們還有一些資本支出以及一次性支出，例如可轉換債券的看跌期權，約為人民幣27億元。

But in the meantime, we are also raising funds in late March, we have completed the funding comes through our -- in Hong Kong Stock Exchange and raising around HKD4.03 billion, yet this part of the fund raising was not recognized until early April.

但同時，我們也在籌募資金。 3月底，我們已經透過香港交易所完成了融資，籌集了約40.3億港元，但這部分融資直到4月初才到達。

So it was actually not recognized in our Q1 financial results. But as we have shared, starting April, we are seeing our sales volume to pick up the pace. With that, this will also help bring our operating cash flow to the normal track.

因此，它實際上並未在我們的第一季財務表現中得到體現。但正如我們所分享的，從四月開始，我們的銷售量開始加快成長。這樣，這也有助於使我們的經營現金流回到正常軌道。

(spoken in foreign language)

（用外語說）

And as we have mentioned, our volume guidance for Q2 is between 72,000 to 75,000 units. This will help improve -- further improve our operating cash flow. And in Q3 and Q4, we have a higher expectation and targets for the sales force which will help our operating cash flow to continue to grow and improve in Q4 this year. And for the full year, we also see the possibility of achieving positive free cash flow.

正如我們所提到的，我們對第二季度的銷售預期是在 72,000 到 75,000 台之間。這將有助於進一步改善我們的經營現金流。而在第三季和第四季，我們對銷售團隊有更高的期望和目標，這將有助於我們的經營現金流在今年第四季持續成長和改​​善。而就全年而言，我們也看到了實現正自由現金流的可能性。

(spoken in foreign language)

（用外語說）

In the meantime, we will continue our cost reduction and efficiency improvement efforts to have a tighter control over our OpEx and the CapEx to make sure that our expenses are necessary.

同時，我們將繼續努力降低成本、提高效率，嚴格控制營運支出和資本支出，確保我們的支出是必要的。

Thank you.

謝謝。

Jing Chang, CICC.

張靜，中金公司。

Thank you for taking my question. I will have one question about overseas market strategy target and especially for the (inaudible) global expansion. So regarding to the overseas market, I think that last year, we have already achieved sales volume of 7,000 units, especially in European market.

感謝您回答我的問題。我有一個關於海外市場策略目標的問題，特別是（聽不清楚）全球擴張。那麼關於海外市場，我認為去年我們已經實現了 7,000 台的銷售量，尤其是在歐洲市場。

So in this year, from the beginning, we see that several brands in UK market, they expand a lot and grow rapidly. And also considering the potential adjustment of the tariff policies (inaudible) market our overseas suspension become a strategic priority for 2024 and what's our overseas sales target for this year?

因此，今年從一開始我們就看到英國市場上的幾個品牌擴張迅速且成長迅速。此外，考慮到關稅政策（聽不清楚）市場的潛在調整，我們的海外暫停成為 2024 年的策略重點，我們今年的海外銷售目標是多少？

And also, we see that we have mentioned the (inaudible) global expansion. So please share more details, including the timing of also region priority and also the pricing strategy?

而且，我們看到我們已經提到了（聽不清楚）全球擴張。那麼請分享更多細節，包括區域優先的時間以及定價策略？

(spoken in foreign language)

（用外語說）

As mentioned, starting this year, we have started to change our global expansion strategy. Before in Europe, we mainly rely on our on sales and service network via the direct sales model. Starting this year, we started to switch to look for local partners for each country.

正如所提到的，從今年開始，我們已經開始改變我們的全球擴張策略。之前在歐洲，我們主要依賴直銷模式建立銷售和服務網絡。從今年開始，我們開始轉向為每個國家尋找當地的合作夥伴。

And as I've mentioned, we have already partnered with more than 10 partners in more than 15 markets, and we are bringing more partners on board for more for broader market entry. And regarding the overall global expansion and the strategy, we actually have a pretty long-term view for our international development.

正如我所提到的，我們已經與 15 多個市場的 10 多個合作夥伴建立了合作關係，我們正在引入更多合作夥伴以拓展更廣泛的市場。至於整體的全球擴張和策略，我們對於國際發展實際上有一個相當長遠的眼光。

For the firefly brand, it will be rolled out to several European countries as well as several other countries this year. And regarding the product the ONVO and the NIO brands, depending on the demand of the markets, we will also see if there are good products for some countries and regions worldwide. But overall speaking, we don't have a very aggressive volume assumption or target for the global market because we mainly look at this for a very long-term perspective.

對於螢火蟲品牌，今年它將推廣到幾個歐洲國家以及其他幾個國家。至於ONVO和NIO品牌的產品，根據市場的需求，我們也會看看是否有適合全球某些國家和地區的好產品。但總體而言，我們對全球市場的銷售假設或目標並不十分激進，因為我們主要從長遠角度來看待這個問題。

I'm good, thank you.

我很好，謝謝。

Tina Hou, Goldman Sachs.

高盛的 Tina Hou。

Thanks, management for taking my questions. I have two questions. The first one is as we are targeting to reach the more than 50,000 monthly volume at the 4Q of this year, how are we planning our production capacity? What kind of production capacity do we have now? And then what level will we reach by 4Q? And then are we adding new lines or adding double shift to achieve that?

謝謝管理層回答我的問題。我有兩個問題。第一個問題是，我們的目標是在今年第四季達到月產量 5 萬輛以上，我們該如何規劃生產能力？我們現在有什麼樣的生產能力？那麼到第四季我們會達到什麼水準呢？那麼我們是否要增加新生產線或增加雙班來實現這一目標？

(spoken in foreign language)

（用外語說）

Thank you for the question. Our current production capacity will be enough to support our delivery assumptions for Q4 this year. We are preparing our third factory and it will be put in operation starting September this year. And for certain production lines in some factories, we also have the flexibilities to arrange double shifts. In that case, production capacity won't be a problem for us.

謝謝你的提問。我們目前的生產能力足以支持我們今年第四季的交付假設。我們正在籌備第三家工廠，將於今年9月投入營運。對於一些工廠的某些生產線，我們也可以靈活地安排雙班制。這樣的話，生產能力對我們來說就不是問題了。

Thank you. And then my second question is regarding our working capital, our cash conversion cycle because we have observed that both if we look at full year 2024 versus 2023, the account payable days, account receivable as well as inventory days have actually gotten longer.

謝謝。我的第二個問題是關於我們的營運資本、現金轉換週期，因為我們觀察到，如果我們看 2024 年全年與 2023 年全年，應付賬款天數、應收賬款以及庫存天數實際上都變長了。

And if we look at 1Q '25 versus 1Q '24, these days also got longer on a year-over-year basis. So going forward, I think for the full year of 2025 and maybe longer term, how should we think about this cash conversion cycle? What is the like optimal days for these working capital? Thanks.

如果我們比較一下 2025 年第一季和 2024 年第一季度，我們會發現這些天數同比也變得更長了。那麼展望未來，我認為從 2025 年全年甚至更長遠來看，我們應該如何看待這個現金轉換週期？這些營運資金的最佳使用天數是多久？謝謝。

(spoken in foreign language)

（用外語說）

Thank you for the question. As you have mentioned two key parameters: inventory level and also the account payable. Regarding the inventory level, as we see growing intensity in terms of the market competition, we are also switching our sales model from OTD that's order to delivery model to more inventory-based.

謝謝你的提問。正如您所提到的兩個關鍵參數：庫存水準和應付帳款。關於庫存水平，隨著市場競爭日益激烈，我們也將銷售模式從OTD（訂單到交付模式）轉變為以庫存為基礎的銷售模式。

In that case, this is also a better practice to cater to the demand of the consumers where many of them would like to pick up their cars as soon as possible. So as now we are switching to the inventory-based sales model.

在這種情況下，這也是一種更好的做法，以滿足許多消費者的需求，他們中的許多人都希望盡緩存車。所以現在我們正在轉向基於庫存的銷售模式。

We also are higher inventory levels regarding the vehicles as well as the production materials in comparison to the OTD mode. If we would like to continue to keep up the sales volume against the growing fierce competition, we will also see the growing level of the inventory, but we will have a very strict and tight control over the inventories of both vehicles and the materials. Basically, the reasonable inventory level of vehicles will be around one-third to half of the monthly sales volume of each brand.

與 OTD 模式相比，我們的車輛和生產材料的庫存水準也更高。如果我們想在日益激烈的競爭中繼續保持銷量，庫存水準也會不斷上升，但我們會非常嚴格地控制車輛和材料的庫存。基本上，合理的車輛庫存量在各品牌月銷售的三分之一到二分之一左右。

(spoken in foreign language)

（用外語說）

And regarding your second question on or the second parameter on the accounts payable, actually, the payment duration we set for our suppliers has always been the same. That's around the 90 days.

關於您的第二個問題或應付帳款的第二個參數，實際上，我們為供應商設定的付款期限一直是一樣的。大約是 90 天。

But due to the accounting and also financial releases quarter-over-quarter, there are certain fluctuations that is also mainly related to the use of the track for the payment. Within the 90 day payment duration, we normally will pay half in cash to our suppliers and another half in check.

但由於會計和財務報告的季度環比變化，存在一定的波動，這也主要與使用軌道進行支付有關。在 90 天的付款期限內，我們通常會以現金形式向供應商支付一半，以支票支付另一半。

But depending on the supply of the goods and also the urgency of the supply or the types of suppliers, they will also have a variety terms and conditions for the payment. (inaudible) 100% payment only, 100% payment in check and certain will only receive (inaudible) for 100% payment in cash within 60 days. So the payment terms and conditions also vary from supplier to supplier. But the overall duration is consistent.

但根據貨物的供應情況以及供應的緊急程度或供應商的類型，他們也會有各種付款條款和條件。 （聽不清楚）僅 100% 付款、100% 支票付款，且某些只會收到（聽不清楚）60 天內 100% 現金付款。因此，付款條款和條件也因供應商而異。但總體持續時間是一致的。

As we see growing sales volume in that case we will also see growth in the purchasing value of these commodities and goods from our suppliers multiplied by volume and also the duration, we will also see the rising level with our account payable. But overall speaking, that's actually normal as it's relevant to the volume, the soft volume of the product.

隨著銷售量的成長，我們也會看到從供應商購買這些商品和貨物的價值乘以數量和持續時間的成長，我們也會看到應付帳款水準的上升。但整體來說，這其實很正常，因為它與產品的體積、軟體積有關。

Thank you, Tina.

謝謝你，蒂娜。

Thank you. That's very clear. Thanks William and Stanley.

謝謝。這非常清楚。感謝威廉和史丹利。

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

由於沒有其他問題，現在我想將電話轉回公司進行結束語。

Thank you again for joining us today. If you have further questions, please feel free to contact our IR team through the contact information on the 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。如果您還有其他問題，請隨時透過網站上的聯絡資訊聯絡我們的 IR 團隊。電話會議到此結束。現在您可以斷開線路了。謝謝。