蔚來 (NIO) 2021 Q4 法說會逐字稿

Hello ladies and gentlemen. Thank you for standing by for NIO Incorporated's fourth quarter and Full Year 2021 earnings conference call. At this time, all participants are in a listen only mode. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Eve Tang, from Capital Markets and Investor Relations. Please go ahead, Eve.

你好女士們先生們。感謝您參與 NIO Incorporated 的第四季度和 2021 年全年收益電話會議。此時，所有參與者都處於只聽模式。今天的電話會議正在錄音中。我現在將把電話轉給您的主持人，資本市場和投資者關係部的 Eve Tang 女士。請繼續，夏娃。

Good morning and good evening everyone. Welcome to NIO's fourth quarter and full year 2021 earnings conference call. The Company's financial and operating results were published in the press release earlier today and are posted at the Company's IR website. On today's call we have Mr William Li, Founder, Chairman of the Board and Chief Executive Officer, Mr Steven Feng, Chief Financial Officer and Mr Stanley Qu, Senior VP of Finance.

大家早上好，晚上好。歡迎來到蔚來汽車 2021 年第四季度和全年財報電話會議。公司的財務和經營業績於今天早些時候發佈在新聞稿中，並發佈在公司的投資者關係網站上。在今天的電話會議上，我們有創始人、董事會主席兼首席執行官 William Li 先生、首席財務官 Steven Feng 先生和財務高級副總裁 Stanley Qu 先生。

Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the 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.

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作出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。因此，本公司的實際結果可能與今天所表達的觀點存在重大差異。

Further information regarding risks and uncertainties is included in certain filings of the Company with the US Securities and Exchange Commission and the Stock Exchange of Hong Kong Limited. The Company does not assume any obligation to update any forward-looking statements except as required under applicable law.

有關風險和不確定性的進一步信息包含在公司向美國證券交易委員會和香港聯合交易所有限公司提交的某些文件中。除適用法律要求外，本公司不承擔更新任何前瞻性陳述的任何義務。

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 information. Please refer to NIO's press release which contains a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures.

另請注意，蔚來汽車的收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務信息以及未經審計的非 GAAP 財務信息的討論。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原則措施與可比公認會計原則措施的對賬。

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

有了這個，我現在將把電話轉給我們的首席執行官 William Li 先生。威廉，請繼續。

(Interpreted) Hello everyone. Thank you for joining NIO's fourth quarter and full year 2021 earnings call. In the fourth quarter of 2021 we delivered 25,034 ES8, ES6 and EC6 representing an increase of 44% year over year.

（翻譯）大家好。感謝您參加蔚來汽車 2021 年第四季度和全年財報電話會議。 2021 年第四季度，我們交付了 25,034 台 ES8、ES6 和 EC6，同比增長 44%。

2021 was a year full of challenges for NIO and the global auto industry. By overcoming the pandemic, semiconductor shortages, supply chain volatilities and many other difficulties we have continued to lead the premium smart electric vehicle market in China with a total delivery of 91,429 new vehicles in 2021 representing a strong increase of 109.1%.

2021年對於蔚來汽車和全球汽車行業來說是充滿挑戰的一年。克服疫情、半導體短缺、供應鏈波動等諸多困難，我們繼續引領中國高端智能電動汽車市場，2021年累計交付91,429輛新車，強勁增長109.1%。

In January 2022 NIO delivered 9,652 vehicles increasing by 34% year over year. In light of the Chinese New Year holiday NIO delivered 6,131 vehicles in February 2022 representing a growth of 10% year over year. During the holiday we adjusted the production lines to prepare for the delivery of ET7 in late March 2022.

2022 年 1 月，蔚來交付 9,652 輛汽車，同比增長 34%。鑑於春節假期，蔚來汽車在 2022 年 2 月交付了 6,131 輛汽車，同比增長 10%。假期期間我們調整了生產線，為2022年3月下旬ET7的交付做準備。

Although user demand and order momentum remains strong, production and delivery have been affected by COVID and the volatility of the supply chain production capacity. We expect total delivery in the first quarter of 2022 to be between 25,000 to 26,000 vehicles.

儘管用戶需求和訂單勢頭依然強勁，但生產和交付受到了新冠疫情和供應鏈產能波動的影響。我們預計 2022 年第一季度的總交付量將在 25,000 至 26,000 輛之間。

We will start the delivery of ET7, the first product on NT2 on March 28, 2022. In early March we kicked off the test drive of ET7 nation-wide. Users who test drove ET7 have spoken highly about the product. The test drive to order conversion rate exceeds our expectations which gives us great confidence towards the competitiveness of NT2.

我們將於2022年3月28日開始交付NT2上的第一款產品ET7。3月初，我們開始了ET7的全國試駕。試駕ET7的用戶對該產品評價很高。試駕到訂單的轉化率超出了我們的預期，這讓我們對 NT2 的競爭力充滿信心。

In 2021 the battery electric vehicle market maintained a faster than expected up-trend. According to China Passenger Car Association the retail penetration rate of battery electric vehicles grew from 5.9% in January to 18.6% in December last year. In Tier 1 and Tier 2 cities in China such as Shanghai, the penetration rate of battery electric vehicles witnessed a more prominent growth.

2021年純電動汽車市場保持了快於預期的上升趨勢。根據中國乘用車協會的數據，純電動汽車的零售滲透率從 1 月份的 5.9% 增長到去年 12 月份的 18.6%。在上海等中國一二線城市，純電動汽車滲透率增長較為顯著。

In Shanghai, among the sales of all ICE and electric SUVs priced above RMB350,000 NIO enjoyed a market share of 23% with its sales ranked at the top in 2021. We believe that this EV growth trend will also gradually expand to Tier 3 and Tier 4 cities in the future.

在上海，35萬元以上的內燃機和電動SUV銷量中，蔚來汽車的市場份額為23%，2021年銷量位居前列。我們相信，這種電動汽車的增長趨勢也將逐漸擴大到三級和三級。未來的四線城市。

In terms of gross margin, benefitted from the increase of revenue per vehicle and the cost optimization brought forward by the 75kWh LFP NCM hybrid battery. The vehicle gross margin reached 20.9% in Q4 2021 and 20.1% for the full year 2021 respectively.

毛利率方面，受益於單車收入的增加和75kWh LFP NCM混合動力電池帶來的成本優化。 2021年第四季度汽車毛利率達到20.9%，2021年全年達到20.1%。

Currently the whole industry is confronted with the pressure of cost increases. We are paying close attention to the dynamics in the supply chain and are working closely with other partners to enhance efficiency in order to reduce the impact to the vehicle gross margin.

當前，整個行業都面臨著成本上漲的壓力。我們正在密切關注供應鏈的動態，並與其他合作夥伴密切合作以提高效率，以減少對車輛毛利率的影響。

On a separate note, NIO started to be listed, by way of introduction, on the Stock Exchange of Hong Kong under Stock Code 9866 from March 10, 2022. The listing in Hong Kong marks another milestone in the history of NIO and enables us to serve more investors in the future.

另外，蔚來汽車於 2022 年 3 月 10 日開始以介紹方式在香港聯合交易所上市，股票代碼 9866。在香港上市是蔚來汽車歷史上的又一里程碑，使我們能夠未來服務更多投資者。

Next, I would like to share some recent key highlights of our R&D and operations.

接下來，我想分享一下我們最近在研發和運營方面的一些重要亮點。

In 2021 we started to step up our investment in R&D with the overall non-GAAP R&D expenses exceeding RMB4.1 billion in 2021. We have sped up the development of new products and increased our investments in full-stack autonomous driving and other core technologies.

2021年我們開始加大研發投入，2021年非美國通用會計準則研發費用總額超過人民幣41億元。我們加快新產品開發，加大全棧自動駕駛等核心技術的投入.

Investment in R&D is of a critical importance for near to long-term competitiveness. Starting from this year, we will be able to see part of the fruitful results from last year's R&D investment and efforts.

研發投資對於近期或長期的競爭力至關重要。從今年開始，我們將能夠看到去年的研發投入和努力取得的部分豐碩成果。

In 2022, we plan to deliver three new products based on NT2 with ET7 being the first.

2022年，我們計劃推出三款基於NT2的新產品，其中ET7為首發。

The mass production of ET7 is well on track. The product itself has led the industry in various aspects including computing power for autonomous driving.

ET7的量產進展順利。該產品本身在包括自動駕駛計算能力在內的各個方面都處於行業領先地位。

At the NIO Day on December 18, 2021, we unveiled ET5, a mid-size smart electric sedan. As a perfect combination of NIO's supercar DNA and the concept of design for AD, ET5 is equipped with NAD NIO autonomous driving and PanoCinema, panoramic digital cockpit enabled by AR and the VR technologies.

在 2021 年 12 月 18 日蔚來汽車日，我們發布了中型智能電動轎車 ET5。作為蔚來超級跑車DNA和AD設計理念的完美結合，ET5搭載了NAD NIO自動駕駛和PanoCinema，搭載AR和VR技術的全景數字座艙。

It comes as standard with 100 configurations for comfort, safety and smart technology. After the launch, ET5 has attracted a wider and more diversified user base and received more orders than our expectations. The delivery of ET5 is expected to start in September this year.

它標配 100 種舒適、安全和智能技術配置。推出後，ET5 吸引了更廣泛、更多元化的用戶群，收到的訂單也超出了我們的預期。 ET5的交付預計將於今年9月開始。

Soon we also launch ES7 our first SUV model on NT2 which is positioned as a mid-large premium five-seater SUV and expected to start delivery from the third-quarter of this year.

很快我們也推出了我們在NT2上的首款SUV車型ES7，定位為中大型高檔五座SUV，預計將於今年第三季度開始交付。

In the coming years, we will continue to elevate both our R&D investment and efforts in core technologies especially in key capabilities such as the full-stack autonomous driving and battery technologies. We believe the investment in core technologies will not only enhance our sustainable competitiveness in both of our technologies and products but also improve our gross margin and profitability in the long run and ultimately create long-term value for our shareholders.

未來幾年，我們將繼續加大對核心技術的研發投入和力度，特別是在全棧自動駕駛和電池技術等關鍵能力方面。我們相信，對核心技術的投資不僅將增強我們在技術和產品方面的可持續競爭力，而且從長遠來看，也將提高我們的毛利率和盈利能力，並最終為我們的股東創造長期價值。

With regards to production capacity, the production line upgrade at the JAC-NIO advanced manufacturing center is in progress phase by phase. By mid-year, the production cadence across all workshops will reach 60 jobs per hour. We have largely completed the building construction of our second manufacturing facility F2 located in NeoPark. Finished the equipment installation and are now working on the calibration, F2 is planned to be put in operation in third quarter this year with a designed production cadence of 60 jobs per hour. On March 16, the first validation viewed of ET5 rolled off the production line from the F2 vehicle powered production center.

產能方面，江淮蔚來先進製造中心的產線升級正在分階段進行。到年中，所有車間的生產節奏將達到每小時 60 個工作崗位。我們已經基本完成了位於 NeoPark 的第二個製造工廠 F2 的建設。設備安裝完畢，正在進行校準，F2計劃於今年第三季度投產，設計生產節奏為每小時60個。 3 月 16 日，ET5 的首次驗證從 F2 車輛動力生產中心下線。

On the side of the supply chain, we are still faced with challenges from chip supply volatility, raw material cost increase, COVID and the changing international situation. In the past two years and more, our teams and partners have accumulated rich experience in securing supplies for production. We will continue to work closely and to try our best to safeguard the production and delivery going forward.

在供應鏈方面，我們仍然面臨著來自芯片供應波動、原材料成本上漲、新冠肺炎和國際形勢變化的挑戰。在過去兩年多的時間裡，我們的團隊和合作夥伴在保障生產供應方面積累了豐富的經驗。我們將繼續密切合作，盡最大努力保障未來的生產和交付。

2021 has been a year of decisive investment in charging and swapping infrastructure as well as the sales and service network. In terms of the sales and service network, we now have 46 NIO houses and 341 NIO spaces in 155 cities worldwide. In China, we have 60 new service centers and 179 authorized service centers in 146 cities.

2021 年是對充電和交換基礎設施以及銷售和服務網絡進行決定性投資的一年。在銷售和服務網絡方面，我們目前在全球155個城市擁有46家蔚來房屋和341個蔚來車位。在中國，我們在 146 個城市擁有 60 個新服務中心和 179 個授權服務中心。

As the sales and service network expands quickly, we have been continuously optimizing the network deployment and the operational efficiency of each touchpoint while delivering high quality services to users. In 2022, we plan to open more than 100 new sales outlets and over 50 new service centers and authorized service centers.

隨著銷售和服務網絡的快速擴張，我們在為用戶提供優質服務的同時，也在不斷優化網絡部署和每個接觸點的運營效率。 2022年，我們計劃新開100多家銷售網點，新增50多家服務中心和授權服務中心。

In terms of the charging and swapping network, we have deployed 866 battery swap stations in 190 cities and completed over 7.6 million swaps in China. So far, we have 711 super charging stations and 3786 destination chargers in China. In 2022, we will add 30 new destination charging routes to the Power Up Plan. With that, NIO will accumulatively operate over 1300 battery swap stations, 6000 power chargers and 10,000 destination chargers in China. We will further expand our power network to provide a better charging and swapping experience to users.

在充換電網絡方面，我們在全國190個城市部署了866個換電站，完成換電超過760萬次。目前，我們在中國擁有711個超級充電站和3786個目的地充電樁。 2022年，我們將在Power Up計劃中增加30條新的目的地充電路線。至此，蔚來將在中國累計運營1300多個換電站、6000個充電樁和10000個目的地充電樁。我們將進一步擴展我們的電力網絡，為用戶提供更好的充電和交換體驗。

In the global market, ES8 has formed an appreciation of users in Norway. This year, our monthly deliveries have ranked the top two among the six-seater or seven-seater passenger cars. The successful delivery and high-quality user service in Norway also helped us accumulate valuable experience in providing services in other countries and regions and gain confidence in entering more new markets.

在全球市場上，ES8已經形成了挪威用戶的讚賞。今年，我們的月交付量在六座或七座乘用車中排名前兩位。在挪威的成功交付和優質的用戶服務，也幫助我們積累了在其他國家和地區提供服務的寶貴經驗，為進入更多新市場樹立了信心。

In 2022, NIO will bring its product and comprehensive services to Germany, the Netherlands, Sweden and Denmark. The team building and market entry preparation are moving forward smoothly. The mass-market brand has been progressing according to plan. We have established the core team specified at the strategic direction and the brand positioning and reached a critical research and development stage of the first batch of products.

2022年，蔚來將把產品和綜合服務帶到德國、荷蘭、瑞典和丹麥。團隊建設和市場准入準備工作進展順利。大眾市場品牌一直在按計劃進行。建立了戰略方向和品牌定位明確的核心團隊，首批產品進入關鍵研發階段。

The development of NIO won't be possible without the continued support of our users. In 2021, 3756 user volunteers contributed their time and efforts in events like auto shows and the NIO Day. More than 12,000 users participated in over 260 charity events to make active contributions to society.

NIO的發展離不開廣大用戶的持續支持。 2021年，3756名用戶志願者在車展、蔚來日等活動中貢獻了自己的時間和精力。超過 12,000 名用戶參與了 260 餘場公益活動，為社會做出積極貢獻。

At NIO Day 2021, we announced the user partner program with which new users can share benefits with each other and build an even deeper connection among users in the community.

在 NIO Day 2021 上，我們宣布了用戶合作夥伴計劃，新用戶可以通過該計劃相互分享利益，並在社區用戶之間建立更深層次的聯繫。

In addition, NIO launched the Clean Parks, an ecosystem co-construction initiative. So far, we have rolled out the initiative in six national parks and natural reserves in China.

此外，蔚來還發起了生態共建“清潔公園”倡議。到目前為止，我們已在中國六個國家公園和自然保護區推廣了該倡議。

We aim to contribute to ecosystem building, support the adoption of smart electric vehicles and clean energy infrastructure in the natural reserves, and establish a clean and low-carbon energy circulation to protect the authenticity and integrity of ecosystems.

我們旨在為生態系統建設做出貢獻，支持在自然保護區採用智能電動汽車和清潔能源基礎設施，建立清潔低碳的能源循環，保護生態系統的真實性和完整性。

2021 was a year for NIO to develop fundamental powers and make comprehensive preparations for the next stage of development. 2022 is a year for NIO to press ahead at full speed. We will deliver three new products, continue to invest in R&D and infrastructure to improve our long-term competitiveness, expand our production capacity to meet the faster-growing user demand, and serve users in more countries and regions.

2021年，是蔚來全面發力、全面準備下一階段發展的一年。 2022年是蔚來全速前進的一年。我們將推出三款新產品，持續投入研發和基礎設施建設以提高我們的長期競爭力，擴大產能以滿足更快增長的用戶需求，服務更多國家和地區的用戶。

We will always stay true to our original aspiration of putting users' interests first, make continuous improvements, and deliver products and services beyond user expectations.

我們將始終不忘用戶利益至上的初心，持續改進，提供超越用戶期望的產品和服務。

As always, thank you for your support. With that, I will now turn the call over to Steven to provide you the financial details for the quarter. Steven, please go ahead.

一如既往，感謝您的支持。有了這個，我現在將把電話轉給史蒂文，為你提供本季度的財務細節。史蒂文，請繼續。

Steven Feng: Thank you, William. I will now go over our key financial results for the fourth quarter and full-year of 2021. To be mindful of the length of this call, I encourage listeners to refer to our earlier press release which is posted online for additional details.

史蒂文馮：謝謝你，威廉。我現在將回顧我們 2021 年第四季度和全年的主要財務業績。為了注意這次電話會議的長度，我鼓勵聽眾參考我們之前發佈在網上的新聞稿以了解更多詳細信息。

Our total revenue in the fourth quarter were RMB9.9 billion, or $1.6 billion, representing an increase of 49.1% year-over-year, an increase of 1% quarter-over-quarter. Our total revenues are made of two parts: vehicle sales, and other sales, because sales in the fourth quarter were RMB9.2 billion or $1.4 billion, accounting for 93% of total revenues in this quarter. It represented an increase of 49.3% year-over-year, an increase of 6.7% quarter-over-quarter.

第四季度總收入為人民幣 99 億元，即 16 億美元，同比增長 49.1%，環比增長 1%。我們的總收入由兩部分組成：汽車銷售和其他銷售，因為第四季度的銷售額為人民幣 92 億元或 14 億美元，佔本季度總收入的 93%。同比增長49.3%，環比增長6.7%。

The increase in vehicle sales year-over-year was mainly attributed to high deliveries. The increase in vehicle sales quarter-over-quarter was mainly attributed to a higher average selling price, decrease in subsidization, the use of the co-financing arrangements, and higher deliveries. Other sales in the fourth quarter were RMB0.7 billion or $107.5 million, representing an increase of 46.8% year-over-year and a decrease of 41.3% quarter-over-quarter.

汽車銷量同比增長主要歸功於高交付量。汽車銷量環比增長的主要原因是平均售價上漲、補貼減少、聯合融資安排的使用以及交付量增加。第四季度其他銷售額為 7 億元人民幣或 1.075 億美元，同比增長 46.8%，環比下降 41.3%。

The increase in other sales year-over-year was mainly attributed to the increased revenues derived from sales of service and energy packages and accessories in line with the incremental sales as well as increased revenues from used car sales and auto-financing services in the fourth quarter of 2021, which was partially offset by sales of automotive regulatory credits in the fourth quarter of 2020. The decrease in other sales quarter-over-quarter was mainly attributed to the sales of automotive regulatory credits in the third quarter.

其他銷售額同比增長的主要原因是隨著銷售額的增加，服務和能源包及配件的銷售收入增加，以及二手車銷售和汽車金融服務收入增加。 2021年第四季度，部分被2020年第四季度汽車監管積分的銷售所抵消。其他銷售額環比下降主要是由於第三季度汽車監管積分的銷售。

Cost of sales in the fourth quarter was RMB8.2 billion or $842.8 million, representing an increase of 49.1% year-over-year, an increase of 5% quarter-over-quarter. The increase in cost of sales year-over-year was mainly driven by the increase of delivery volume in the fourth quarter of 2021.

第四季度銷售成本為人民幣 82 億元或 8.428 億美元，同比增長 49.1%，環比增長 5%。銷售成本同比增長主要受2021年第四季度交付量增長的推動。

Gross profit in the fourth quarter was RMB1.7 billion or $266.7 million, representing an increase of 48.8% year-over-year and a decrease of 14.7% quarter-over-quarter. The increase in gross profit year-over-year was mainly contributed by increased vehicle sales and increased vehicle margin. The decrease of gross profit quarter-over-quarter mainly resulted from the sales of automotive regulatory credits in the third quarter of 2021 which contributed a higher profit.

第四季度毛利潤為人民幣 17 億元或 2.667 億美元，同比增長 48.8%，環比下降 14.7%。毛利潤同比增長主要是由於汽車銷量增加和汽車利潤率提高。毛利環比下降主要是由於2021年第三季度汽車監管積分的銷售貢獻了更高的利潤。

Gross margin in the fourth quarter of 2021 was 17.2% compared with 17.2% in the fourth quarter of 2020 and 20.3% in the third quarter of 2021. The decrease of gross margin quarter-over-quarter mainly resulted from sales of automotive luxury credit in the third quarter of 2021 which contributed a higher gross margin.

2021年第四季度毛利率為17.2%，2020年第四季度和2021年第三季度分別為17.2%和20.3%。 2021年第三季度貢獻了更高的毛利率。

More specifically, vehicle margin in the fourth quarter was 20.9% compared with 17.2% in the fourth quarter of 2020 and 18% in the third quarter of 2021. Increase of vehicle margin year-over-year was mainly driven by the higher average selling price with higher take rate of 100-kilowatt hour battery. The increase of vehicle margin quarter-over-quarter was mainly attributed to decrease in subsidization in user vehicle financing arrangements.

更具體地說，第四季度汽車利潤率為 20.9%，而 2020 年第四季度為 17.2%，2021 年第三季度為 18%。汽車利潤率同比增長主要是由於平均售價較高100千瓦時電池的取電率更高。車輛利潤率環比增長主要是由於用戶車輛融資安排的補貼減少。

R&D expenses in the fourth quarter were RMB1.83 billion or $286.9 million, representing an increase of 120.5% year-over-year, an increase of 53.3% quarter-over-quarter. The increase of R&D expenses quarter-over-quarter and year-over-year was mainly attributed to the increased personnel costs in research and development functions as well as the incremental design and development costs for new products and technologies.

第四季度研發費用為人民幣18.3億元或2.869億美元，同比增長120.5%，環比增長53.3%。研發費用環比和同比增長主要是由於研發職能人員成本增加以及新產品和新技術的設計開發成本增加所致。

SG&A expenses in the fourth quarter were RMB2.36 billion or $370.1 million, representing an increase of 95.4% year-over-year, an increase of 29.2% quarter-over-quarter. The increase in SG&A expenses year-over-year and quarter-over-quarter was primarily due to the increase in personnel costs in sales and service functions, and costs related to the sales and service network expansion as well as incremental marketing and promotion expenses including for the host of NIO Day in December of 2021.

第四季度SG&A費用為人民幣23.6億元或3.701億美元，同比增長95.4%，環比增長29.2%。 SG&A 費用同比和環比增加的主要原因是銷售和服務部門的人員成本增加，以及與銷售和服務網絡擴張相關的成本以及增量營銷和促銷費用，包括2021年12月蔚來日的主辦方。

Loss from operations in the fourth quarter was RMB2.45 billion or $383.7 million, representing an increase of 162.5% year-over-year, an increase of 146.5% quarter-over-quarter.

第四季度經營虧損為人民幣 24.5 億元或 3.837 億美元，同比增長 162.5%，環比增長 146.5%。

Share-based compensation expenses in the fourth quarter were RMB396.7 million or $62.3 million, representing an increase of 559% year-over-year, an increase of 49.4% quarter-over-quarter. The increase in share-based compensation expenses year-over-year and quarter-over-quarter was primarily attributed to additional options and restricted shares granted.

第四季度股權激勵費用為人民幣 3.967 億元或 6,230 萬美元，同比增長 559%，環比增長 49.4%。股權激勵費用同比和環比增長主要歸因於授予的額外期權和限制性股票。

Net loss in the fourth quarter was RMB2.14 billion or $336.4 million, representing an increase of 54.4% year-over-year, an increase of 156.6% quarter-over-quarter. Net loss attributable to NIO's ordinary shareholders in the fourth quarter was RMB1.49 billion (sic -- see press release, "RMB2.179 billion") or $228.7 million (sic -- see press release, "$342.0 million), representing a decrease of 48.4% year-over-year, an increase of [35.6%] quarter-over-quarter (see press release -- "representing an increase of 46.0% from the fourth quarter of 2020 and a decrease of 23.8% from the third quarter of 2021").

第四季度淨虧損為人民幣 21.4 億元或 3.364 億美元，同比增長 54.4%，環比增長 156.6%。第四季度歸屬於蔚來汽車普通股股東的淨虧損為人民幣 14.9 億元（原文——見新聞稿，“RMB21.79 億”）或 2.287 億美元（原文——見新聞稿，“3.42 億美元”），同比減少同比增長 48.4%，環比增長 [35.6%]（見新聞稿——“比 2020 年第四季度增長 46.0%，比第三季度下降 23.8% 2021 年”）。

Basic and diluted net loss per ADS in the fourth quarter were both RMB1.36 or $0.21 per ADS. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, non-GAAP adjusted basic and diluted net loss per ADS were both RMB1.07 RMB or $0.16 per ads.

第四季度每股 ADS 的基本和攤薄淨虧損均為人民幣 1.36 元或每股 ADS 0.21 美元。剔除股權補償費用和可贖回非控股權益對贖回價值的增加，非公認會計原則調整後的每股美國存託憑證基本和攤薄淨虧損均為人民幣 1.07 元人民幣或每支廣告 0.16 美元。

Our balance of cash and cash equivalents, restricted cash and short-term investment was RMB55.4 billion or $8.7 billion as of December 31, 2021. Additionally, we achieved positive cash flow for our operating activities for the full year 2021.

截至 2021 年 12 月 31 日，我們的現金及現金等價物、受限現金和短期投資餘額為 554 億元人民幣或 87 億美元。此外，我們在 2021 年全年的經營活動實現了正現金流。

Now for our business outlook. As William mentioned, for the first quarter of 2022, the Company expects deliveries to be between 25,000 to 26,000 vehicles, representing an increase of approximately 24.6% to 29.6% from the same quarter of 2021.

現在是我們的業務前景。正如威廉所說，公司預計 2022 年第一季度的交付量將在 25,000 至 26,000 輛之間，較 2021 年同期增長約 24.6% 至 29.6%。

The Company also expects the total revenues of the first quarter of 2022 to be between RMB9.63 billion and RMB9.9 billion or between $1.51 billion and $1.57 billion. This would represent an increase of approximately 20.6% to 25.1% from the same quarter of 2021.

公司還預計 2022 年第一季度的總收入將在人民幣 96.3 億元至人民幣 99 億元之間，或在 15.1 億美元至 15.7 億美元之間。這將比 2021 年同期增加約 20.6% 至 25.1%。

This business outlook reflects the Company's current and preliminary view on the business situation and market condition, which is subject to change.

該業務展望反映了公司對業務形勢和市場狀況的當前和初步看法，可能會發生變化。

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

現在，我們準備好的評論到此結束。我現在將把電話轉給接線員，以方便我們的問答環節。

(Operator Instructions)

（操作員說明）

The first question comes from the line of Tim Chau of Morgan Stanley. Please go ahead.

第一個問題來自摩根士丹利的 Tim Chau。請繼續。

Hi, William and Steven and Stanley. Congratulations on this early result and thanks for taking my questions. Basically, I have two questions.

嗨，威廉、史蒂文和斯坦利。祝賀這個早期的結果，感謝你提出我的問題。基本上，我有兩個問題。

The first question is about the cost and margin. Because we know that NIO is better positioned to cope with the battery cost inflation even without a price hike, but may I know if the rising mix of the high-margin 100-kilowatt hour, 75-kilowatt hour hybrid battery pack, or other initiatives could have sufficiently offset a margin [prior to] this year?

第一個問題是關於成本和利潤的。因為我們知道，即使沒有價格上漲，蔚來汽車也能更好地應對電池成本上漲，但我想知道高利潤的 100 千瓦時、75 千瓦時混合動力電池組或其他舉措的組合是否正在上升可以充分抵消今年[之前]的利潤嗎？

Separately, if any, or only if we need to raise the prices one day, could NIO increase the price to the consumers who bought the batteries and also the battery asset management companies simultaneously, or it would take longer to renegotiate a (inaudible) contract with the battery asset management company as it's more like a [2B] business. That's the first question.

另外，如果有的話，或者只有在我們需要提高價格的一天，NIO 是否可以同時向購買電池的消費者和電池資產管理公司提高價格，或者重新談判（聽不清）合同需要更長的時間與電池資產管理公司合作，因為它更像是 [2B] 業務。這是第一個問題。

Second question is about the model. Currently, I think ES6 and ES8 have comprehensively covered the SUV market with pricing range from RMB350,000 to RMB600,000.

第二個問題是關於模型的。目前，我認為ES6和ES8已經全面覆蓋了SUV市場，定價從35萬元到60萬元不等。

Since we will soon launch ES7, as William just mentioned, how could we effectively differentiate ES7 from incumbent SUV models without [a fall in] dilution and are we going to adjust the pricing strategy or reposition current SUV models along with the launch of ES7? Those are the two questions from my side. Thank you.

既然我們即將推出 ES7，正如 William 剛才提到的，我們如何才能有效地將 ES7 與現有 SUV 車型區分開來而不[下降]稀釋，隨著 ES7 的推出，我們是否會調整定價策略或重新定位現有的 SUV 車型？這是我這邊的兩個問題。謝謝你。

(Interpreted) Thank you, Tim. Regarding the first question, actually starting from the 41 of last year we started to deliver the 75-kilowatt hour LFP and NCM hybrid battery pack to the users, which has contributed to the cost optimization and benefited our vehicle gross margin growth in the fourth quarter.

（翻譯）謝謝你，蒂姆。關於第一個問題，實際上從去年41開始我們就開始向用戶交付75千瓦時的LFP和NCM混合動力電池組，這有利於成本優化，也有利於我們四季度的整車毛利率增長.

But I believe everyone knows that starting from the third quarter and the fourth quarter of last year, we have been seeing some raw material cost increase in the industry, and there has been lots of cost increase in upstream of the whole industry chain which means that we won't need to share the pressure across the whole industry, gradually.

但相信大家都知道，從去年三季度和四季度開始，我們看到行業原材料成本有所增加，整個產業鏈上游成本也有很多增加，這意味著我們不需要逐步分擔整個行業的壓力。

At this moment, we do not have any plan to increase our pricing yet, but because during the year we are going to upgrade our product competitiveness and capabilities so at that time probably based on the cost of the raw materials in the industry we will evaluate our pricing strategy as well. But at this moment we're not going to increase our price for the products.

目前，我們還沒有任何提高定價的計劃，但因為年內我們將提升我們的產品競爭力和能力，所以屆時我們可能會根據行業的原材料成本進行評估我們的定價策略也是如此。但目前我們不會提高產品的價格。

On another point, because of the sales growth, we believe this has also contributed to the amortization of the cost and benefit of our vehicle gross margin increase, but regarding the raw material cost increase is not just about the battery but also other commodities like copper and aluminum, those raw material cost increases have also affected our vehicle gross margin as well.

另一方面，由於銷售增長，我們認為這也有助於我們汽車毛利率增加的成本和收益的攤銷，但原材料成本的增加不僅僅是電池，還有銅等其他商品和鋁，這些原材料成本的增加也影響了我們的汽車毛利率。

In light of the cost increase of those raw materials I have just mentioned and other [bond] cost, over full year vehicle gross margin for 2022 will still target to reach around 18% to 20%.

考慮到我剛才提到的那些原材料的成本增加和其他[債券]成本，2022年全年汽車毛利率仍將達到18%至20%左右。

The second question is about the ES7. This is going to be the first SUV product based on the NT2 and it's positioned as a mid-large five-seater SUV. In this specific segment we have witnessed some user demand increase recently.

第二個問題是關於 ES7。這將是首款基於NT2的SUV產品，定位為中大型五座SUV。在這個特定的細分市場中，我們最近目睹了一些用戶需求的增加。

For example, the BMW X5 we believe is going to start the local production very soon. For the ES7, it's going to have industry leading battery, electro power train and also the smart technologies as well.

例如，我們相信寶馬 X5 很快就會開始本地生產。對於 ES7，它將擁有行業領先的電池、電動動力總成以及智能技術。

We believe it's going to showcase the high-performance capabilities of the product and also satisfy users demand in terms of the premiumness and luxury feeling.

我們相信它將展示產品的高性能，同時滿足用戶對高級感和奢華感的需求。

We also believe this is going to attract users who will have a very high requirement regarding the product quality and the premiumness.

我們也相信這將吸引對產品質量和優質性有非常高要求的用戶。

So, all in all we believe the ES7 is going to contribute and going to be complementary to other current ES8, ES6 and ET6 instead of affecting the sales of the current products.

所以，總而言之，我們相信 ES7 將會對其他當前的 ES8、ES6 和 ET6 做出貢獻並與之互補，而不是影響當前產品的銷售。

We are going to launch the ES7 in the second quarter of this year and will share the pricing information as well at that time. At this moment we can see regarding the market segment of the mid/large SUV priced above RMB400,000 is actually has an addressable market size of over 200,000 units.

我們將在今年第二季度推出 ES7，屆時也會分享定價信息。目前我們可以看到，對於售價在40萬元以上的中大型SUV這個細分市場，實際上擁有超過20萬輛的潛在市場規模。

This market size is also growing. That's why we're very confident with the performance of the ES7 after its launch.

這個市場規模也在增長。這就是為什麼我們對 ES7 推出後的表現非常有信心。

Thank you.

謝謝你。

Thank you for the questions. Next question comes from the line of Bin Wang of Credit Suisse. Please go ahead.

謝謝你的提問。下一個問題來自瑞士信貸的王斌。請繼續。

I actually have got a question about the ET7 service because recently there was a media call. First one, [EV] they say that ET7 received very good order flow, about 15,000 order backlog, which indicate monthly volume could be around 5K. What's your comment about this?

我實際上有一個關於 ET7 服務的問題，因為最近有一個媒體電話。第一個，[EV] 他們說 ET7 收到了非常好的訂單流，大約 15,000 個訂單積壓，這表明每月的交易量可能在 5K 左右。你對此有何評論？

Second thing is about the margin, because we've seen in the fourth quarter last year that service actually had very big negative cost margin, more than 30%.

第二件事是關於利潤率，因為我們在去年第四季度看到，服務實際上有非常大的負成本利潤率，超過 30%。

What's the reason behind that and what's the outlook of this fixed margin going forward? Meanwhile, you just provided 18% to 20% margin guidance. Is this just the vehicle gross margin or actually including the service margin already? Thank you.

這背後的原因是什麼？這個固定保證金的前景如何？同時，您剛剛提供了 18% 到 20% 的保證金指導。這只是車輛毛利率還是實際上已經包括服務毛利？謝謝你。

(Interpreted) Regarding the first question of the ET7, of course we cannot discuss the specific order number at this moment.

（解讀）關於ET7的第一個問題，目前當然不能討論具體的訂貨號。

But what I can say is that it is actually much more than the media report. For the ET7 market segment, we can see some other benchmarks. For example, the BMW 5 Series, Audi A6 and the Mercedes C-Class. ET7 has the similar pricing as the target group which sells the product as well, especially regarding the BMW 5 Series.

但我能說的是，它實際上遠不止媒體報導。對於 ET7 細分市場，我們可以看到其他一些基準。例如，寶馬 5 系、奧迪 A6 和奔馳 C 級。 ET7 的定價與銷售該產品的目標群體相似，尤其是在 BMW 5 系方面。

So, for BMW 5 Series we can see that the monthly delivery number is around 12,000 to 15,000. Of course, for the ET product it will need some time for the users to adopt and accept but if we look at the examples of the Shanghai market, right now in the premium SUV segment in Shanghai, our market share is around 23%.

因此，對於寶馬 5 系，我們可以看到每月的交付數量在 12,000 到 15,000 輛左右。當然，對於ET產品，用戶接受和接受還需要一段時間，但如果我們以上海市場為例，目前在上海的高端SUV細分市場，我們的市場份額在23%左右。

So, if we also mirror this to the sedan market, we believe there is a lot of room for growth and also potential for our ET7.

因此，如果我們也將這一點反映到轎車市場，我們相信我們的 ET7 有很大的增長空間和潛力。

So, at this moment we cannot see how much we're going to deliver every month, but according to the user feedback we receive right now, we're very confident with the ET7s performance in the future.

所以，目前我們無法看到我們每個月要交付多少，但根據我們目前收到的用戶反饋，我們對 ET7 未來的表現非常有信心。

[Over speaking]

[說多了]

(spoken in foreign language).

（用外語說）。

No, Stanley (spoken in foreign language).

不，斯坦利（說外語）。

William (spoken in foreign language).

威廉（說外語）。

(Interpreted) Regarding the ES7, previously I have also mentioned that the ES7 is positioned in the mid-larger premium SUV segment.

（解讀）關於ES7，之前我也提到過，ES7定位於中大型高端SUV細分市場。

If we talk about the specific benchmark, we can refer to BMW X5. After the local production of the BMW X5 we can see that the market actually has very high expectations for BMW X5 performance.

如果說具體的標杆，可以參考寶馬X5。在寶馬X5本土化生產之後，我們可以看到，市場其實對寶馬X5的性能有著非常高的期待。

The current market buy of this segment is over 200,000 units so if we look at the comparables, we can use the BMW X5 as a reference and based on this, we're very confident with our ES7 because we believe it can actually out compete the BMW X5.

目前該細分市場的購買量超過 200,000 輛，因此如果我們查看可比車型，我們可以使用 BMW X5 作為參考，基於此，我們對我們的 ES7 非常有信心，因為我們相信它實際上可以與寶馬X5。

Okay for the second question, as the service flows, we accelerated the construction of power cell station in 2021 and more power cell station (inaudible) to provide service to end users, which lead to the cost increase of other revenue [other business] compared with Q3.

好的，對於第二個問題，隨著服務的流動，我們在 2021 年加快了電池站的建設和更多的電池站（聽不清）為最終用戶提供服務，這導致其他收入 [其他業務] 相比成本增加與 Q3。

In 2022, we will continue to deploy the batteries charging and swapping facilities. Anticipated depreciation of operating expenses will keep rising but we believe the upfront deployment of battery swap stations can contribute to our branding, user experience and also sales with long term value to the Company.

2022年，我們將繼續部署電池充電和更換設施。預計運營費用的折舊將繼續上升，但我們相信電池更換站的前期部署可以為我們的品牌、用戶體驗以及對公司具有長期價值的銷售做出貢獻。

So, bearing a short-term loss of power cell station constitutes a strategic decision of the Company. In the long run the cumulative vehicle deliveries going up and the improvement for service efficiency.

因此，承擔電池站短期損失是公司的戰略決策。從長遠來看，累計車輛交付量上升，服務效率提高。

We expect that the next two margins resulting from power, maintenance and repair service and also other services will gradually improve. Other revenues and margins contributed by innovative business models like BaaS, NIO Life and also (inaudible) service will keep growing.

我們預計未來兩個由電力、維護和維修服務以及其他服務帶來的利潤率將逐步提高。 BaaS、NIO Life 和（聽不清）服務等創新商業模式貢獻的其他收入和利潤將繼續增長。

Okay.

好的。

The gross profit margin target, 18% to 20% for 2022 is for vehicle, not the overall gross margin. Thank you.

2022 年 18% 至 20% 的毛利率目標是針對車輛，而不是整體毛利率。謝謝你。

Thank you for the questions. Next question comes from the line of Ming Hsun Lee of Bank of America. Please go ahead.

謝謝你的提問。下一個問題來自美國銀行的李明勳。請繼續。

(Interpreted) So my question is regarding the capacity in lidar hybrid battery and also the chip especially if (inaudible) SHS also announced the chip shortage will cause the price hike.

（解釋）所以我的問題是關於激光雷達混合電池和芯片的容量，特別是如果（聽不清）SHS 也宣布芯片短缺將導致價格上漲。

So, I also want to know whether the (inaudible) chip will constraint your vehicle delivery this year? (Spoken in foreign language)

那麼，我還想知道（聽不清）芯片是否會限制您今年的車輛交付？ （用外語講）

(Interpreted) So regarding the production capacity, previously I have also mentioned that by the middle of this year, our first factory that is the JAC-NIO Manufacturing Centre is going to reach a production cadence across the different workshops.

（解讀）所以關於產能，我之前也提到過，到今年年中，我們的第一家工廠，江淮蔚來製造中心，將在不同車間達到生產節奏。

That is around 60 jobs per hour. The designed production capacity of the Factory 2 is also going to be around 60 jobs per hour. Of course, for the Factory 2, because this is a new factory, then we will need some time to ramp up the production gradually.

也就是每小時大約 60 個工作崗位。工廠 2 的設計生產能力也將達到每小時 60 個工作崗位左右。當然，對於二廠來說，因為這是一個新廠，所以我們需要一些時間來逐步提高產量。

So, if we think about the 60 jobs per hour it means that if we work with 4,000 hours every year, then the annual production capacity is going to be 240,000 units and for every month is around 20,000 units.

因此，如果我們考慮每小時 60 個工作崗位，這意味著如果我們每年工作 4,000 小時，那麼年生產能力將是 240,000 台，每個月約為 20,000 台。

If we work overtime (inaudible) to 5,000 hours per year, then it means that the annual production capacity is going to reach around 300,000 units. So, this is about the vehicle production capacity.

如果我們每年加班（聽不清）到 5,000 小時，那麼這意味著年產能將達到 300,000 台左右。所以，這是關於汽車生產能力的。

We believe that in the fourth quarter of this year we will see some fundamental improvements regarding the vehicle production capacity, which is going to support our next step of production.

我們相信，今年四季度我們會看到整車產能出現一些根本性的提升，這將支撐我們下一步的生產。

For the battery production capacity bottleneck, yes previously we have also mentioned about this and starting from last year, we have been working together with our partner, CATL, to add additional production lines for the battery cells.

對於電池產能瓶頸，是的，我們之前也提到過，從去年開始，我們一直在與我們的合作夥伴寧德時代合作，為電池增加額外的生產線。

We believe, according to the current plan in 2022, the battery production capacity should be able to meet our demand. Of course, the cost increase of the battery is another matter.

我們認為，按照目前2022年的規劃，電池產能應該能夠滿足我們的需求。當然，電池的成本增加是另一回事。

Actually, I believe the chip shortage is a bigger challenge for us, because in our vehicle we have over 1,000 chips and among those 1,000 chips, we have probably around 10% of the chips may face the supply shortages or challenges from time to time.

實際上，我認為芯片短缺對我們來說是一個更大的挑戰，因為在我們的車輛中我們有超過 1,000 個芯片，而在這 1,000 個芯片中，我們大概有 10% 左右的芯片可能會不時面臨供應短缺或挑戰。

For us, starting from 2021, we started to see some chip cost increase, and this has affected our vehicle gross margin in 2021.

對我們來說，從 2021 年開始，我們開始看到芯片成本有所增加，這影響了我們 2021 年的汽車毛利率。

Based on this experience in 2021, we have already taken into consideration of the chip cost increase in terms of setting our target for the vehicle gross margin.

基於2021年的經驗，我們在設定整車毛利率目標時已經考慮到了芯片成本的增加。

We believe the main challenge regarding the chip is more about the supply. Regarding those high-end chips like the Nvidia [or ring] chips and the Qualcomm 8155 we have a long-term and direct strategic cooperation with Nvidia and Qualcomm.

我們認為，有關芯片的主要挑戰更多在於供應。對於英偉達芯片、高通8155等高端芯片，我們與英偉達、高通有長期直接的戰略合作。

So, we believe we should be able to have sufficient supplies for our production. For those common chips or the cheaper chips, like from TI and Infinium, we may face some challenges from time to time and this is going to affect our production. Of course we have some other ways to mitigate those challenges. For example we can find some other chips to replace those chips or we can probably scan the market to build up our strategic inventory to avoid those risks.

因此，我們相信我們應該能夠為我們的生產提供足夠的供應。對於那些普通的芯片或者比較便宜的芯片，比如TI和Infinium，我們可能會不時面臨一些挑戰，這會影響我們的生產。當然，我們還有其他一些方法可以緩解這些挑戰。例如，我們可以找到一些其他的芯片來代替那些芯片，或者我們可以掃描市場來建立我們的戰略庫存來規避這些風險。

We believe, overall speaking, in the second half of this year or around the fourth quarter of this year we should be able to see some fundamental improvement in terms of our vehicle production capacity and the battery production capacity. But we may still face some challenges in terms of the supply chain volatility especially the semiconductors.

我們認為，總體而言，在今年下半年或今年四季度左右，我們的整車產能和電池產能應該能夠看到一些根本性的提升。但在供應鏈波動尤其是半導體方面，我們仍可能面臨一些挑戰。

Thank you.

謝謝你。

Thank you for the questions. Our next question comes from the line of Jeff Chung of Citi. Please go ahead.

謝謝你的提問。我們的下一個問題來自花旗銀行的 Jeff Chung。請繼續。

I've got three questions. So number one is should we consider any MSRP hike in the near term to offset potential battery and aluminum cost hike? If yes, how and if no, why not?

我有三個問題。那麼第一是我們是否應該考慮在短期內提高建議零售價以抵消潛在的電池和鋁成本上漲？如果是，如何，如果不是，為什麼不呢？

The second question is about the existing [EC6] product sales volume visibility over the next few months. Any confidence we can maintain 10,000 units a month as well as the -- could you give us more color on the ET7 ramp-up pace in the second quarter?

第二個問題是關於未來幾個月現有 [EC6] 產品銷量的可見性。我們是否有信心每月維持 10,000 台以及 - 您能否為我們提供更多關於第二季度 ET7 加速增長速度的信息？

Last but not least is the lithium spot price in China. Do you think it has already peaked due to the recent government intervention? Thank you.

最後但並非最不重要的是中國的鋰現貨價格。您認為由於最近的政府乾預，它已經達到頂峰嗎？謝謝你。

(Interpreted) For the current ES8, ES6 and EC6 of course if we look at the digital (inaudible) this is actually based on the NIO Technology Platform 1.0 which was developed in 2018. So for this chip the efficiency may be impaired if we run some complicated software.

（解釋）對於當前的 ES8、ES6 和 EC6 當然如果我們看數字（聽不清）這實際上是基於 2018 年開發的 NIO 技術平台 1.0。所以對於這個芯片，如果我們運行可能會降低效率一些複雜的軟件。

So that's why starting from this year we think this year we are going to upgrade to the smart hardware of our existing products. We are also going to provide after-sales upgrade services for users regarding the smart hardware upgrades. We are going to launch this program at an appropriate time. For the existing ES8, ES6 and EC6 we believe we do not need to adjust the pricing at this moment.

所以這就是為什麼從今年開始，我們認為今年我們將升級到現有產品的智能硬件。我們還將為用戶提供智能硬件升級的售後升級服務。我們將在適當的時候啟動這個計劃。對於現有的 ES8、ES6 和 EC6，我們認為目前不需要調整定價。

But of course based on the smart hardware upgrade of the existing products and also we are going to launch some model year product, then at that time we believe probably we can re-evaluate our pricing strategy based on the cost increase in the supply chain.

但是當然基於現有產品的智能硬件升級，並且我們將推出一些車型年的產品，那麼到那時我們相信我們可能可以根據供應鏈成本的增加重新評估我們的定價策略。

You have also asked about the performance of our current product, whether it should be able to still maintain the 10,000 units per month. According to our order momentum in March we believe that this can meet our expectations and we believe that user demand is not a problem for us because if we compare over current years ADS6 and EC6 with other ED products and ICE products in the market, we believe we still have a lot of competitive advantages so the overall demand momentum stays quite strong.

您還問到我們現在的產品性能，是否應該還能維持每月10000台的水平。根據我們 3 月份的訂單勢頭，我們認為這可以滿足我們的預期，我們相信用戶需求對我們來說不是問題，因為如果我們將近年來的 ADS6 和 EC6 與市場上的其他 ED 產品和 ICE 產品進行比較，我們認為我們仍然擁有很多競爭優勢，因此整體需求勢頭保持強勁。

(Interpreted) For the ET7 product ramp-up, because the ET7 is going to be manufactured in the first factory we called F1 and they're going to share the production line with the current product ES8, ES6 and EC6, at the same time we will also introduce some new manufacturing technologies and techniques in the production of ET7. So that's why, starting from last year, we started to adjust the production lines in the F1 to support the new product production.

（解釋）對於ET7產品的量產，因為ET7將在我們稱為F1的第一家工廠生產，他們將與當前產品ES8、ES6和EC6同時共享生產線我們還將在ET7的生產中引入一些新的製造技術和工藝。所以從去年開始，我們開始調整F1的生產線，以支持新產品的生產。

In the meantime, I have also mentioned about the ES7 which is going to start delivery in the third quarter of this year. This product is also going to be manufactured in the F1. So, the situation in F1 is quite complicated as you can see because we need to make sure we have sufficient production capacities to support the current ES8, ES6 and EC6 but at the same time, we also need to produce the ET7 and also prepare for the production of the ES7.

同時，我也提到了即將在今年第三季度開始交付的 ES7。該產品也將在 F1 中生產。所以，你看F1的情況是相當複雜的，因為我們需要確保我們有足夠的生產能力來支持現在的ES8、ES6和EC6，但同時我們也需要生產ET7，也需要準備ES7的生產。

So that's why we believe the ramp-up progress of the ET7 is probably going to be a little bit slower compared with that of the ET5. So, it seems ET5 is going to be manufactured in a separate new plant called F2. So, we believe that probably around the third quarter of this year, we should be able to reach a normal production cadence for the ET7.

這就是為什麼我們認為 ET7 的升級進度可能會比 ET5 慢一些。因此，ET5 似乎將在一個名為 F2 的單獨新工廠中生產。因此，我們認為大概在今年第三季度左右，我們應該能夠達到 ET7 的正常生產節奏。

Regarding the lithium carbonate cost increase, we have done very in-depth research regarding the overall industry chain especially the upstream. We believe the cost increase or the price hikes is mainly due to the opportunistic price hikes and there is no specific big gaps in terms of the demand and the supply of the lithium carbonate materials.

關於碳酸鋰成本上漲，我們對整個產業鏈尤其是上游做了非常深入的研究。我們認為成本增加或價格上漲主要是由於機會性價格上漲，碳酸鋰材料的供需並沒有特別大的缺口。

Of course, right now, we can see some Chinese authorities like MIIT have already started to set up some mechanisms to manage the situation. At the same time, we also like to urge the companies in the upstream of the industry chain that they should think more from the long-term benefit of the overall development of the whole industry instead of manipulate or take the opportunity of the cost increases to increase their price.

當然，現在我們可以看到，像工信部這樣的中國一些主管部門已經開始建立一些機制來管控這種情況。同時，我們也希望產業鏈上游的企業多從整個行業整體發展的長遠利益考慮，而不是利用成本上升的機會操縱或乘機。提高他們的價格。

(Spoken in a foreign language)

（用外語講）

Thank you for the questions. Next question comes from the line of Nick Lai of J.P. Morgan. Please go ahead.

謝謝你的提問。下一個問題來自摩根大通的 Nick Lai。請繼續。

Yes, thank you for taking my question. Two simple questions. First on margin and the second on [export] business. I mean, William and [inaudible] talk about the GP margin already. Let me switch focus to the OP margin. Yes. Last year, we understand the R&D spend and assume an increase, a lot, in part, largely part due -- largely due to the top line increase. So, looking to 2022, how should we think about SG&A and R&D expense in terms of either dollar terms or percentage to revenue? Is it fair to state RMB percentage to revenue should increase - should drop meaningfully while SG&A should move more or less in tandem with the top-line sales?

是的，謝謝你提出我的問題。兩個簡單的問題。第一個是保證金，第二個是[出口]業務。我的意思是，William 和 [聽不清] 已經討論過 GP 保證金。讓我把焦點轉移到 OP 邊距。是的。去年，我們了解研發支出並假設增加了很多，部分原因，主要是由於收入增加。那麼，展望 2022 年，我們應該如何看待 SG&A 和研發費用，無論是美元還是收入百分比？說人民幣佔收入的百分比應該增加 - 應該顯著下降，而 SG&A 應該或多或少地與頂線銷售同步，這是否公平？

The second question is regarding [ASPOR]. I understand it's probably not a big portion of auto total sales but considering the latest dynamic in Europe and advising stronger revenue against either dollar or Euro, any update on ASPOR front? Thanks.

第二個問題是關於 [ASPOR]。我知道這可能不是汽車總銷售額的很大一部分，但考慮到歐洲的最新動態以及相對於美元或歐元的強勁收入，ASPOR 方面有什麼更新嗎？謝謝。

(Interpreted) Regarding the OP margin, last year in terms of the Company's strategy, we would like to make sure that the gross profit can cover the SG&A cost, and we believe through the efficiency improvement and execution we have followed through this strategy in 2021.

（解讀）關於OP利潤率，去年在公司戰略方面，我們希望確保毛利潤能夠覆蓋SG&A成本，我們相信通過效率提升和執行，我們在2021年通過這一戰略遵循.

In the coming years, we will continue to make decisive investments in terms of the R&D and the infrastructure. Of course, our strategy will stay the same; that is, we would like to make sure we can use the gross profit to cover the SG&A costs.

未來幾年，我們將繼續在研發和基礎設施方面進行決定性投資。當然，我們的策略將保持不變；也就是說，我們希望確保我們可以使用毛利潤來支付 SG&A 成本。

If we look at the EU market, of course last year, because that was the first year for us to enter the global market, then it means that last year we need to make some advance investment and we believe this year the efficiency is much higher than last year.

如果我們看歐盟市場，當然是去年，因為那是我們進入全球市場的第一年，那麼這意味著去年我們需要進行一些前期投資，我們相信今年效率會更高比去年。

In terms of the R&D front, we are going to step up our R&D investments. This year we believe the R&D investment is going to be more than doubling than that of 2021 because we are going to invest in some long-term core technologies and some fundamental technologies as well as the new products for 2023 as well as some product adaptation for the global market.

在研發方面，我們將加大研發投入。今年我們認為研發投入會比2021年翻一倍以上，因為我們要投入一些長期的核心技術和一些基礎技術，以及2023年的新產品和一些產品適配。全球市場。

By the yearend of 2022 our R&D headcount is going to reach around 9000 and we believe this is going to be a big increase compared with our current R&D team size. This is the overall plan for the 2022.

到 2022 年底，我們的研發人員將達到 9000 人左右，我們相信與我們目前的研發團隊規模相比，這將是一個很大的增長。這是2022年的總體規劃。

In terms of the overall strategic direction for the Company, our target is that we can achieve breakeven for a single quarter in the fourth quarter of 2023, and we can achieve breakeven or reach profitability in 2024 for the full year.

在公司整體戰略方向上，我們的目標是2023年第四季度實現單季度盈虧平衡，2024年全年實現盈虧平衡或盈利。

(Spoken in foreign language).

（用外語講）。

The second question is about our global business, right? No, actually right now every month we deliver about [108] in Norway, so that boosts our confidence a lot, it proves our [product's competitive] and also our business model.

第二個問題是關於我們的全球業務，對嗎？不，實際上現在我們每個月都會在挪威交付大約 [108]，這極大地增強了我們的信心，它證明了我們的 [產品的競爭力] 以及我們的商業模式。

However, since we will kick off our SUV in Europe in the second half of this year, so the contribution of the European market to sales volume won't be very significant in this year. But now on, NIO continues to develop and improve its product portfolio and service network, establish local user communities, and pursue a high user satisfaction. With that we believe that market share and sales volume in Europe will come along naturally.

不過，由於我們將於今年下半年在歐洲推出SUV，因此今年歐洲市場對銷量的貢獻不會很大。但現在，蔚來繼續發展和完善產品組合和服務網絡，建立本地用戶社區，追求高用戶滿意度。我們相信，歐洲的市場份額和銷量自然會隨之而來。

Thank you for the questions. I would now take the next questions.

謝謝你的提問。我現在要回答下一個問題。

(Inaudible).

（聽不見）。

Please continue. Allow me to take the next questions from Fei Fang of Goldman Sachs. Please go ahead.

請繼續。請允許我接受高盛的方飛的下一個問題。請繼續。

(Interpreted) Let me just quickly translate for myself. Can management talk a little bit about the utilization metrics of your infrastructure, battery swap stations, and Supercharger stations, how often people use it, what's the unit economics, or what's the difference between top cities versus lower-tier cities? Thank you.

（翻譯）讓我自己快速翻譯一下。管理層能否談談您的基礎設施、電池更換站和增壓站的利用率指標，人們使用它的頻率，單位經濟性如何，或者頂級城市與低線城市之間的區別是什麼？謝謝你。

(Interpreted) Previously, we have also mentioned that cumulatively we have completed over 7.6 million swaps, and it means that the current status for the swap station is that every day we can complete around 30,000 swaps.

（解讀） 之前我們也提到過，我們累計完成了超過760萬次掉期，也就是說目前的換站狀態是每天可以完成3萬次左右的掉期。

For some areas with more users of course we will be able to accommodate over 1000 swaps for one power swap station in one day, but highways probably in one day the power swap station is going to accommodate around 10 to 20 swaps per power swap station.

對於一些用戶較多的地區，我們當然可以在一天內為一個換電站容納超過 1000 次換電，但高速公路可能在一天內換電站將容納大約 10 到 20 次換電。

Because we have deployed the power swap station network in advance, probably one or two years in advance, because of the design target of the power swap station network is that the ratio between the power swapper to the user should be around 1 to 1000. But if we look at our parent power network, especially for the power swap network, we have over-deployed some power swap stations at this moment to make sure we have a much better experience for the users.

因為我們提前部署了換電站網絡，大概提前一兩年，因為換電站網絡的設計目標是換電站和用戶的比例應該在1比1000左右。但是如果我們看看我們的母電力網絡，特別是對於電力交換網絡，我們現在已經過度部署了一些電力交換站，以確保我們為用戶提供更好的體驗。

(Spoken in foreign language).

（用外語講）。

Next question.

下一個問題。

Certainly. Next question comes from the line of Edison Yu of Deutsche Bank. Please go ahead.

當然。下一個問題來自德意志銀行的 Edison Yu。請繼續。

Thank you for taking our questions. First one, can you give us some sense of the feature rollout cadence in the autonomous driving? What kind of features do you think the LiDAR will enable and when can we expect those to arrive on the car?

感謝您提出我們的問題。第一個，您能給我們一些關於自動駕駛功能推出節奏的感覺嗎？您認為 LiDAR 將啟用什麼樣的功能？我們什麼時候可以期待這些功能出現在汽車上？

And then the second question is about the NIO ecosystem more broadly speaking. There are reports that you're working on a smartphone. How do we think about what's going on beyond the car? I know there's - VR could be a big part. Any (inaudible) would be appreciated. Thank you.

然後第二個問題是關於更廣泛的蔚來生態系統。有報導稱您正在使用智能手機。我們如何看待汽車之外發生的事情？我知道有——VR 可能是很重要的一部分。任何（聽不清）將不勝感激。謝謝你。

(Interpreted) Thank you for your question. Of course, and the timing of the delivery of the ET7 we are going to start to provide the enhanced [ADMS] features first to the users.

（翻譯）謝謝你的提問。當然，以及 ET7 的交付時間，我們將首先向用戶提供增強的 [ADMS] 功能。

But on top of that, we have already queued up the full stack of autonomous driving capabilities from the perception to the controlling strategy. We target to start providing the AD as a service probably in the fourth quarter of this year with our NAD technology.

但最重要的是，我們已經將從感知到控制策略的全部自動駕駛能力排隊。我們的目標是可能在今年第四季度開始使用我們的 NAD 技術提供 AD 即服務。

Of course we have always been actively -- explore the possible connections and the synergies between the vehicle and smart phones and other mobile terminals because we believe there are lots of synergies between these two products in terms of the fundamental technologies, the supply chain and the software.

當然我們一直都在積極探索汽車與智能手機等移動終端之間可能存在的聯繫和協同作用，因為我們認為這兩種產品在基礎技術、供應鍊和終端產品方面有很多協同作用。軟件。

At the launch of the ET5 at the NIO Day, we have also introduced some AR and VR technologies as well and we believe there should be lots of room for innovation and we can also think about some innovative applications in the vehicles.

在蔚來日發布ET5的時候，我們也引入了一些AR和VR技術，我們認為應該有很大的創新空間，我們也可以考慮一些在車輛上的創新應用。

Thank you for the questions. Next question will come from the line of Xue Deng from CICC. Please go ahead.

謝謝你的提問。下一個問題將來自中金公司的鄧雪一行。請繼續。

(Interpreted) So my next question is, what's the CapEx budget in 2022 and will you please introduce the detail about the main directions and the exact amount of money? Thank you.

（翻譯）所以我的下一個問題是，2022年的CapEx預算是多少，請您介紹一下主要方向和具體金額的細節？謝謝你。

(Spoken in foreign language).

（用外語講）。

Thank you Deng Xue. Yes, as mentioned by William, our gross profit margin already can cover our SG&A expense and this is also our target for 2022.

謝謝鄧雪。是的，正如威廉所說，我們的毛利率已經可以支付我們的 SG&A 費用，這也是我們 2022 年的目標。

So, our cash on hand will mainly be used for our R&D activities and also capital expenditures for our new product developments and production facilities, service network and expansion and also the charging and working infrastructures.

因此，我們手頭的現金將主要用於我們的研發活動以及我們的新產品開發和生產設施、服務網絡和擴展以及充電和工作基礎設施的資本支出。

Overall, also as mentioned in our previous explanations, we will increase our swap stations to 1300 stations by the end of 2022. We will further open 100 new house and new space and 60 new service centers -- 50 new service centers in 2022.

總體而言，也正如我們之前的解釋所提到的，我們將在 2022 年底之前將我們的交換站增加到 1300 個。我們將進一步開設 100 個新房和新空間以及 60 個新服務中心 - 2022 年新服務中心 50 個。

So, and we will further to -- construct our NeoPark, located in Hefei, in 2022. So, the total expenditure I think is over -- could be a big increase compared with 2021. Yes, thank you.

所以，我們將進一步——在 2022 年建設我們位於合肥的 NeoPark。所以，我認為總支出已經結束——與 2021 年相比可能會有很大的增加。是的，謝謝。

(Spoken in foreign language).

（用外語講）。

Thank you for the questions. The next question comes from the line of Paul Gong from UBS. Please go ahead.

謝謝你的提問。下一個問題來自瑞銀的 Paul Gong。請繼續。

Yes, hi, thanks for taking my question. Glad I still have a chance to ask how you went at this late moment. Let me just limit my question to one.

是的，您好，感謝您提出我的問題。很高興我還有機會問你在這麼晚的時候過得怎麼樣。讓我把我的問題限制在一個。

I want to know more about your thoughts about the mass market brands. Obviously, you have to compromise some of the features that NIO has for more attractive pricing points or some cost comparatives.

我想更多地了解您對大眾市場品牌的看法。顯然，您必須妥協 NIO 的一些功能以獲得更具吸引力的定價點或一些成本比較。

So, the amount of the features for the new offering including say the exterior, the interior, the advanced driving features, the acceleration, the driving range, the battery swap stations, as well as let's say the digital experience and also the service.

因此，新產品的功能數量包括外觀、內飾、高級駕駛功能、加速、續航里程、電池更換站，以及數字體驗和服務。

So, what do you think is the things that you are waiting to compromise on your mass market brands that would be reserved exclusively for the NIO brands and you're not expecting from the mass market brands? Just this question. Thank you.

那麼，您認為您正在等待對您的大眾市場品牌妥協的事情是專門為 NIO 品牌保留的，而您對大眾市場品牌沒有期望？就這個問題。謝謝你。

(Interpreted) Thank you for your question. Of course, if we want to increase our volume and expand our user base, different companies will have very different strategies.

（翻譯）謝謝你的提問。當然，如果我們想增加我們的體量並擴大我們的用戶群，不同的公司會有非常不同的策略。

For example, some peers like Tesla, they have adopted very different strategies compared with ours. For Tesla, they basically differentiated the Model 3 and Model Y from the Model X and Model S with a very big price gap.

例如，像特斯拉這樣的同行，與我們相比，他們採取了非常不同的策略。對於特斯拉來說，他們基本上將 Model 3 和 Model Y 與 Model X 和 Model S 區分開來，價格差距非常大。

So, by doing this they entered the mass market with the Model 3 and Model Y. So far this has been quite successful, but at the same time we have also seen some downside.

所以，通過這樣做，他們帶著 Model 3 和 Model Y 進入了大眾市場。到目前為止，這已經相當成功，但同時我們也看到了一些不利因素。

For example, the sales of the Model X and Model Y have decreased significantly despite the product cycle. So, we believe there are some underlying fundamental rules of the auto industry.

例如，儘管有產品週期，Model X 和 Model Y 的銷量卻大幅下降。因此，我們認為汽車行業存在一些潛在的基本規則。

That is, there is a limited bandwidth of a specific brand. It's very difficult to imagine a single brand can actually support the pricing range from RMB100,000 to RMB1 million. It's not feasible and I believe this is against the common sense.

也就是說，特定品牌的帶寬有限。很難想像一個品牌真的能撐起10萬到100萬元的定價區間。這是不可行的，我認為這是違反常識的。

So, for NIO right now, we target the market segment that is around $50,000 to $100,000 and if we want to reach down to the mainstream market, that is priced around $30,000 to $50,000.

所以，對於蔚來現在來說，我們定位的細分市場是5萬到10萬美元左右，如果我們想深入到主流市場，價格在3萬到5萬美元左右。

We believe this is a much bigger market and there is reasonable market size for us to grow and we can also achieve reasonable growth margin.

我們相信這是一個更大的市場，有合理的市場規模供我們成長，我們也可以實現合理的增長幅度。

We also need to take some lessons learnt from the Model 3 and Model Y. We understand of course, for this mass market, we will also need to rethink the fundamental architecture of our product and also need to think about using different kind of materials and also different manufacturing technologies for our products.

我們還需要從 Model 3 和 Model Y 中吸取一些教訓。當然，我們明白，對於這個大眾市場，我們還需要重新思考我們產品的基本架構，也需要考慮使用不同種類的材料和我們的產品也有不同的製造技術。

In terms of the mass market of course there also needs to be efficiency driven. For this specific market segment, priced from $30,000 to $50,000 we believe a more sensible approach versus to use a new brand to enter this new market segment. We believe this is a better strategy for us. We can also see some successful examples in the market with this strategy. For example, Audi and Volkswagen and the Lexus and Toyota.

就大眾市場而言，當然也需要效率驅動。對於這個價格從 30,000 美元到 50,000 美元不等的特定細分市場，我們認為比使用新品牌進入這個新細分市場更明智。我們相信這對我們來說是一個更好的策略。我們也可以在市場上看到一些採用這種策略的成功例子。例如，奧迪和大眾以及雷克薩斯和豐田。

We believe this can also be a strategy for us to disrupt the market as well. Of course, for the mass market brands, the prerequisite for this is to make sure we can achieve high efficiency and also achieve reasonable vehicle gross margin.

我們相信這也可以成為我們擾亂市場的策略。當然，對於大眾市場的品牌來說，這樣做的前提是確保我們能夠實現高效率，同時也能夠實現合理的車輛毛利率。

Thank you for the questions. Now, I would like to turn the call back over to the Company for closing remarks.

謝謝你的提問。現在，我想將電話轉回公司進行結束髮言。

Eve Tang: Thank you once again for joining us today. If you have further questions please feel free to contact NIO's Investor Relations team through the contact information provided on our website.

Eve Tang：再次感謝您今天加入我們。如果您還有其他問題，請隨時通過我們網站上提供的聯繫信息聯繫 NIO 的投資者關係團隊。

This concludes the conference call. You may now disconnect your line. Thank you.

電話會議到此結束。您現在可以斷開您的線路。謝謝你。

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

此成績單中標記（翻譯）的部分由現場通話中的口譯員朗讀。翻譯由主辦本次活動的公司提供。