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.

各位女士、先生大家好。感謝您撥冗參加蔚來汽車第四季度及2021全年業績電話會議。目前所有參會者均處於僅收聽模式。本次電話會議將被錄音。現在我把電話交給本次會議主持人——來自資本市場與投資者關係部的唐唯女士。Eve，請開始。

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.

各位早上好、晚上好。歡迎參加蔚來第四季度及2021全年業績電話會議。公司財務及經營業績已於今日稍早在新聞稿中發布，並已刊登於公司投資者關係網站。今天的電話會議上，我們有公司創始人、董事長兼首席執行官李斌先生，首席財務官馮蔚先生，以及財務高級副總裁曲玉先生。

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，提醒各位，今天的討論將包含根據1995年《美國私人證券訴訟改革法案》安全港條款所作的前瞻性陳述。前瞻性陳述具有內在風險與不確定性。因此，公司實際結果可能與今天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.

有關風險與不確定性的更多資訊，已載於公司向美國證券交易委員會及香港聯合交易所有限公司提交的若干文件中。除適用法律要求外，公司不承擔更新任何前瞻性陳述的義務。

Please also note that NIO's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial 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，蔚來的業績新聞稿及本次電話會議包含對未經審計的GAAP財務資訊以及未經審計的非GAAP財務資訊的討論。請參閱蔚來新聞稿，其中包含未經審計的非GAAP指標與可比GAAP指標之間的調節表。

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

接下來，我把電話交給我們的首席執行官李斌先生。William，請開始。

(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。感謝各位參加蔚來第四季度及2021全年業績電話會議。2021年第四季度，我們交付了25,034輛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年對蔚來以及全球汽車行業而言都是充滿挑戰的一年。通過克服疫情、半導體短缺、供應鏈波動以及其他諸多困難，我們持續引領中國高端智能電動車市場，2021年全年共交付91,429輛新車，同比大幅增長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，同比增長34%。考慮到春節假期，蔚來於2022年2月交付6,131輛，同比增長10%。假期期間，我們對生產線進行了調整，為2022年3月下旬ET7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.

儘管用戶需求與訂單動能依然強勁，但生產與交付受到新冠疫情以及供應鏈產能波動的影響。我們預計2022年第一季度總交付量將在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ET7，這是NT2平台上的首款產品。3月初，我們在全國範圍內啟動了ET7試駕。試駕過ET7的用戶對產品評價很高。試駕到下單的轉化率超出我們預期，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超預期的快速上行趨勢。根據中國乘用車市場信息聯席會（CPCA）數據，純電動汽車零售滲透率從去年1月的5.9%提升至12月的18.6%。在中國的一線、二線城市（如上海），純電動汽車滲透率增長更為顯著。

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，在售價35萬元人民幣以上的所有燃油（ICE）及電動SUV銷量中，蔚來以23%的市場份額位居2021年銷量榜首。我們相信，這一電動化增長趨勢未來也將逐步擴展至三線、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.

在毛利率方面，受益於單車收入提升以及75kWh磷酸鐵鋰（LFP）/三元（NCM）混合電池帶來的成本優化，2021年第四季度整車毛利率達到20.9%，2021年全年整車毛利率為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.

目前整個行業都面臨成本上升的壓力。我們正密切關注供應鏈動態，並與合作夥伴緊密協作提升效率，以降低對整車毛利率的影響。

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，蔚來已於2022年3月10日以介紹方式在香港聯合交易所有限公司上市，股票代號為9866。香港上市標誌著蔚來發展歷程中的又一里程碑，也使我們未來能夠服務更多投資者。

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

接下來，我想分享我們研發與運營方面近期的一些關鍵亮點。

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年全年非GAAP研發費用超過人民幣41億元。我們加快了新產品開發，並增加了在全棧自動駕駛及其他核心技術方面的投入。

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.

研發投入對於中長期競爭力至關重要。從今年開始，我們將能看到去年研發投入與努力所帶來的部分豐碩成果。

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

2022年，我們計劃交付三款基於NT2平台的新產品，其中ET7將是第一款。

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。該產品在多個方面引領行業，包括自動駕駛計算能力。

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日的NIO Day上，我們發布了ET5——一款中型智能電動轎車。作為蔚來超跑DNA與面向自動駕駛（AD）設計理念的完美結合，ET5搭載了NAD蔚來自動駕駛以及PanoCinema全景數字座艙，並由AR與VR技術賦能。

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.

ET5標配100項舒適、安全與智能科技配置。發布後，ET5吸引了更廣泛且更多元的用戶群體，訂單量超出我們預期。ET5預計將於今年9月開始交付。

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.

不久之後，我們也將推出ES7——我們首款基於NT2平台的SUV車型，定位為中大型高端五座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，我們將持續提升研發投入，並加大在核心技術方面的努力，尤其是在全棧自動駕駛與電池技術等關鍵能力上。我們相信，對核心技術的投入不僅將提升我們在技術與產品層面的可持續競爭力，也將在長期改善毛利率與盈利能力，最終為股東創造長期價值。

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.

在產能方面，江淮-蔚來先進製造中心的產線升級正分階段推進。到年中，各車間的生產節拍將達到每小時60個工位。我們位於NeoPark的第二製造基地F2的廠房建設已基本完成，設備安裝也已完成，目前正在進行校準。F2計劃於今年第三季度投產，設計產能節拍為每小時60個工位。3月16日，首台ET5驗證車已從F2整車動力生產中心下線。

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，我們仍面臨晶片供應波動、原材料成本上升、新冠疫情以及國際形勢變化帶來的挑戰。在過去兩年多的時間裡，我們的團隊與合作夥伴在保障生產供應方面積累了豐富經驗。我們將繼續緊密協作，盡最大努力保障未來的生產與交付。

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 年是我們在充電與換電基礎設施以及銷售與服務網路方面果斷投入的一年。在銷售與服務網路方面，我們目前在全球 155 個城市擁有 46 家 NIO House 與 341 個 NIO Space。在中國，我們在 146 個城市新增了 60 家服務中心與 179 家授權服務中心。

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.

隨著銷售與服務網路快速擴張，我們在為用戶提供高品質服務的同時，持續優化網路佈局與各觸點的營運效率。2022 年，我們計畫新開設超過 100 個銷售據點，以及超過 50 家新的服務中心與授權服務中心。

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.

在充電與換電網路方面，我們已在 190 個城市部署 866 座換電站，並在中國完成超過 760 萬次換電。截至目前，我們在中國擁有 711 座超級充電站與 3,786 個目的地充電樁。2022 年，我們將在 Power Up Plan 中新增 30 條新的目的地充電路線。屆時，蔚來將在中國累計營運超過 1,300 座換電站、6,000 個充電樁以及 10,000 個目的地充電樁。我們將進一步擴展能源網路，為用戶提供更佳的充電與換電體驗。

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.

在全球市場方面，ES8 在挪威已獲得用戶的認可。今年，我們的月度交付量在六座或七座乘用車中排名前二。挪威市場的成功交付與高品質用戶服務，也幫助我們累積了在其他國家與地區提供服務的寶貴經驗，並增強了進入更多新市場的信心。

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，蔚來將把產品與全面服務帶到德國、荷蘭、瑞典與丹麥。團隊建設與入市準備正順利推進。大眾市場品牌亦按計畫推進。我們已建立符合戰略方向與品牌定位的核心團隊，並使首批產品研發進入關鍵階段。

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.

蔚來的發展離不開用戶的持續支持。2021 年，3,756 名用戶志願者在車展、NIO Day 等活動中投入時間與精力。超過 12,000 名用戶參與了 260 多場公益活動，積極回饋社會。

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，我們宣布了用戶夥伴計畫，讓新用戶之間可以共享權益，並在社群中建立更深的用戶連結。

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，蔚來推出了「Clean Parks」生態共建倡議。截至目前，我們已在中國六個國家公園與自然保護區落地該倡議。

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.

我們旨在為生態建設作出貢獻，支持自然保護區採用智慧電動車與清潔能源基礎設施，並建立清潔、低碳的能源循環，以保護生態系統的真實性與完整性。

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 年是蔚來夯實基本功、為下一階段發展做全面準備的一年。2022 年是蔚來全速前進的一年。我們將交付三款新產品，持續投入研發與基礎設施以提升長期競爭力，擴大產能以滿足更快速增長的用戶需求，並為更多國家與地區的用戶提供服務。

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.

我們將始終堅守以用戶利益為先的初心，持續改進，交付超越用戶期待的產品與服務。

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，感謝各位的支持。接下來我將把電話會議交給 Steven，請他為各位介紹本季度的財務細節。Steven，請開始。

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.

Steven Feng：謝謝你，William。接下來我將回顧我們 2021 年第四季度及全年主要財務業績。為了控制本次電話會議的時長，我建議各位聽眾參考我們先前已在網上發布的新聞稿，以獲取更多細節。

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.

我們第四季度總營收為人民幣 99 億元（約 16 億美元），同比增長 49.1%，環比增長 1%。我們的總營收由兩部分構成：整車銷售與其他銷售。其中，第四季度整車銷售收入為人民幣 92 億元（約 14 億美元），佔本季度總營收的 93%。該項收入同比增長 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.

整車銷售同比增長主要歸因於交付量提升。整車銷售環比增長主要歸因於平均售價提高、補貼減少、採用共同融資安排，以及交付量提升。第四季度其他銷售收入為人民幣 7 億元（約 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.

其他銷售同比增長主要歸因於隨著銷量增加，服務與能源套裝及配件銷售帶來的收入提升，以及 2021 年第四季度二手車銷售與汽車金融服務收入增加；部分被 2020 年第四季度汽車監管積分銷售所抵消。其他銷售環比下降主要歸因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（約 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由 2021 年第四季度交付量增加所帶動。

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.

第四季度毛利為人民幣 17 億元（約 2.667 億美元），同比增長 48.8%，環比下降 14.7%。毛利同比增長主要由整車銷售增加及整車毛利率提升所貢獻。毛利環比下降主要由於 2021 年第三季度汽車監管積分銷售帶來較高利潤。

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%，與 2020 年第四季度的 17.2% 持平，較 2021 年第三季度的 20.3% 下降。毛利率環比下降主要由於 2021 年第三季度汽車豪華車積分銷售帶來較高毛利率。

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.

更具體而言，第四季度整車毛利率為 20.9%，相比 2020 年第四季度的 17.2% 以及 2021 年第三季度的 18% 均有所提升。整車毛利率同比提升主要由平均售價提高所帶動，原因是 100 千瓦時電池的選裝率更高。整車毛利率環比提升主要歸因於用戶車輛融資安排中的補貼減少。

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（約 2.869 億美元），同比增長 120.5%，環比增長 53.3%。研發費用同比與環比增加主要歸因於研發職能人員成本上升，以及新產品與新技術帶來的新增設計與開發成本。

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.

第四季度銷售、一般及行政費用（SG&A）為人民幣 23.6 億元（約 3.701 億美元），同比增長 95.4%，環比增長 29.2%。SG&A 費用同比與環比增加主要由於銷售與服務職能人員成本上升，以及銷售與服務網路擴張相關成本，並包括新增的市場行銷與推廣費用（其中包含 2021 年 12 月舉辦 NIO Day 的相關費用）。

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.

第四季營運虧損為人民幣24.5億元（或3.837億美元），同比增加162.5%，環比增加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.

第四季以股份為基礎的薪酬費用為人民幣3.967億元（或6,230萬美元），同比增加559%，環比增加49.4%。以股份為基礎的薪酬費用同比及環比上升，主要歸因於新增授予的期權及限制性股票。

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").

第四季淨虧損為人民幣21.4億元（或3.364億美元），同比增加54.4%，環比增加156.6%。第四季歸屬於蔚來普通股股東的淨虧損為人民幣14.9億元（原文如此——見新聞稿「人民幣21.79億元」）或2.287億美元（原文如此——見新聞稿「3.420億美元」），同比下降48.4%，環比增加[35.6%]（見新聞稿——「較2020年第四季增加46.0%，較2021年第三季下降23.8%」）。

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.

第四季每股ADS的基本及攤薄淨虧損均為人民幣1.36元（或每股ADS 0.21美元）。剔除以股份為基礎的薪酬費用及可贖回非控股權益向贖回價值的增值後，非GAAP調整後每股ADS的基本及攤薄淨虧損均為人民幣1.07元（或每股ads 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、受限制現金及短期投資餘額為人民幣554億元（或87億美元）。此外，我們在2021年全年實現了經營活動現金流為正。

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.

接下來是我們的業務展望。如William所提及，對於2022年第一季，公司預計交付量介於25,000至26,000輛，較2021年同期約增加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.

公司亦預計2022年第一季總營收介於人民幣96.3億元至99.0億元（或15.1億美元至15.7億美元）。這將較2021年同期約增加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.

本業務展望反映公司目前及初步對業務情況與市場狀況的看法，可能會有所變動。

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

以上為我們事先準備的發言。現在我將把電話交給接線員，以協助進行問答環節。

(Operator Instructions)

（接線員指示）

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（Morgan Stanley）的Tim Chau。請發言。

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

嗨，William、Steven和Stanley。恭喜這個早期成果，也謝謝你們回答我的問題。我基本上有兩個問題。

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?

第一個問題關於成本與毛利。因為我們知道蔚來即使不漲價，也更有能力應對電池成本通膨，但我想請問，高毛利的100千瓦時、75千瓦時混合電池包占比提升，或其他舉措，是否已足以在今年之前抵消毛利[此前的壓力]？

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，或只有在某一天我們需要調漲價格時，蔚來是否可以同時對已購買電池的消費者以及電池資產管理公司提高價格？還是說，因為更像是[2B]業務，與電池資產管理公司重新協商（聽不清）合約會需要更長時間？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.

第二個問題關於車型。目前我認為ES6和ES8已經以人民幣35萬元到60萬元的價格區間，全面覆蓋SUV市場。

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.

由於我們很快將推出ES7，如William剛才所提到，我們如何在不[造成]稀釋的情況下，有效將ES7與既有SUV車型做出差異化？我們是否會調整定價策略，或在推出ES7的同時重新定位現有SUV車型？以上是我這邊的兩個問題。謝謝。

(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.

（口譯）謝謝你，Tim。關於第一個問題，實際上從去年第41週開始，我們開始向用戶交付75千瓦時LFP與NCM混合電池包，這有助於成本優化，並帶動第四季整車毛利率提升。

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.

但我相信大家都知道，從去年第三季和第四季開始，我們看到行業原材料成本上升，整個產業鏈上游出現了大量成本增加，這意味著我們將需要逐步在整個行業中分攤這些壓力。

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.

目前我們尚無任何提價計畫，但因為今年我們將升級產品競爭力與能力，因此屆時我們也可能會根據行業原材料成本來評估定價策略。不過在目前這個時間點，我們不會提高產品價格。

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.

另外一點，隨著銷量成長，我們認為這也有助於成本攤銷，並帶動整車毛利率提升；但原材料成本上升不僅是電池，還包括銅、鋁等其他大宗商品，這些原材料成本上升也影響了我們的整車毛利率。

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%.

考量我剛才提到的原材料成本上升以及其他[債券]成本，2022年全年整車毛利率仍將以達到約18%至20%為目標。

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平台的SUV產品，定位為中大型五座SUV。在這一細分市場，我們近期看到用戶需求有所增加。

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，我們認為BMW X5很快將開始本地化生產。對於ES7而言，它將配備行業領先的電池、電驅動力總成，以及智慧化技術。

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.

我們相信它將展現產品的高性能能力，同時在高端感與豪華感方面滿足用戶需求。

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品質與高端感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.

因此，總體而言，我們認為ES7將對現有ES8、ES6和ET6形成補充，而不是影響現有產品的銷售。

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推出ES7，並會在當時分享定價資訊。目前我們看到，人民幣40萬元以上的中/大型SUV細分市場，其可觸達市場規模超過20萬輛。

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

該市場規模也在成長。這就是為什麼我們對ES7上市後的表現非常有信心。

Thank you.

謝謝。

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（Credit Suisse）的Bin Wang。請發言。

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?

我其實有一個關於ET7服務的問題，因為最近有一場媒體電話會。第一點，[EV]他們說ET7收到非常好的訂單流，大約有15,000張訂單積壓，這表示月銷量可能在5,000輛左右。你們對此有何評論？

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%.

第二點是關於毛利，因為我們看到去年第四季服務業務的成本毛利率其實非常負面，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.

背後的原因是什麼？未來這個固定毛利率的展望如何？另外，您剛才提供了 18% 到 20% 的毛利率指引。這只是車輛毛利率，還是已經包含服務毛利率？謝謝。

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

（口譯）關於第一個有關 ET7 的問題，當然我們目前無法討論具體的訂單數量。

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.

但我可以說的是，實際上遠高於媒體報導。就 ET7 所在的市場區隔而言，我們可以參考一些其他標竿，例如 BMW 5 系列、Audi A6 以及 Mercedes C-Class。ET7 的定價與這些目標族群相近，尤其是在 BMW 5 系列方面。

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%.

以 BMW 5 系列來看，我們可以看到其每月交付量約為 12,000 到 15,000 輛。當然，對於 ET 產品而言，使用者需要一些時間去採用並接受；但如果我們看上海市場的例子，目前在上海的高端 SUV 細分市場，我們的市佔率約為 23%。

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對照到轎車市場，我們相信仍有很大的成長空間，也有利於 ET7 的潛力。

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，目前我們還無法判斷每個月會交付多少，但根據我們目前收到的使用者回饋，我們對 ET7 未來的表現非常有信心。

[Over speaking]

【同時說話】

(spoken in foreign language).

（以外語發言）。

No, Stanley (spoken in foreign language).

不，Stanley（以外語發言）。

William (spoken in foreign language).

William（以外語發言）。

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

（口譯）關於 ES7，我之前也提到過，ES7 定位在中大型高端 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.

如果談到具體的對標車型，我們可以參考 BMW X5。BMW X5 在本地化生產之後，我們可以看到市場對 BMW X5 的表現其實有非常高的期待。

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.

目前這個細分市場的市場容量超過 200,000 輛；如果看可比對象，我們可以以 BMW X5 作為參考。基於此，我們對 ES7 非常有信心，因為我們相信它實際上可以在競爭中勝過 BMW 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，第二個問題，隨著服務量的增加，我們在 2021 年加速了換電站的建設，並新增更多換電站（聽不清）為終端使用者提供服務，這導致其他收入【其他業務】的成本相較於第三季有所上升。

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.

在 2022 年，我們將持續部署充電與換電設施。預期折舊等營運費用將持續上升，但我們相信前期部署換電站能夠提升品牌力、使用者體驗，並帶動銷售，對公司具有長期價值。

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，短期承擔換電站的虧損是公司的策略性決策。從長期來看，隨著累計車輛交付量提升以及服務效率改善。

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.

我們預期由電力、保養與維修服務以及其他服務所帶來的毛利率將逐步改善。由 BaaS、NIO Life 以及（聽不清）服務等創新商業模式所貢獻的其他收入與毛利率也將持續成長。

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% 到 20% 的毛利率目標是針對車輛，而不是整體毛利率。謝謝。

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

謝謝您的提問。下一個問題來自美國銀行的 Ming Hsun Lee，請發言。

(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.

（口譯）我的問題是關於雷達、混合電池以及晶片的產能，尤其是如果（聽不清）SHS 也宣布晶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)

我也想了解（聽不清）的晶片是否會限制你們今年的車輛交付？（以外語發言）

(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.

（口譯）關於產能方面，我之前也提到過，到今年年中，我們的第一座工廠，也就是江淮蔚來製造中心，將在各個車間達到一個生產節拍。

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.

大約是每小時 60 個工位（jobs）。第二工廠的設計產能也將是每小時約 60 個工位。當然，第二工廠因為是新工廠，需要一些時間逐步爬坡提升產量。

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.

如果以每小時 60 個工位來計算，假設每年工作 4,000 小時，那麼年產能將達到 240,000 輛，每月約 20,000 輛。

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.

如果加班（聽不清）到每年 5,000 小時，那麼年產能將達到約 300,000 輛。以上是車輛生產產能的情況。

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.

我們相信在今年第四季，車輛生產產能方面會看到一些根本性的改善，這將支持我們下一步的產量提升。

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.

至於電池產能瓶頸，是的，我們之前也提過。從去年開始，我們一直與合作夥伴寧德時代（CATL）一起新增電芯的產線。

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.

我們相信，按照 2022 年目前的計畫，電池產能應該能夠滿足我們的需求。當然，電池成本上升是另一個議題。

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.

其實我認為晶片短缺對我們是更大的挑戰，因為我們一輛車上有超過 1,000 顆晶片，而在這 1,000 顆晶片中，可能約有 10% 的晶片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.

對我們而言，從 2021 年開始，我們就看到晶片成本上升，這也影響了我們 2021 年的車輛毛利率。

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，我們在制定車輛毛利率目標時，已經把晶片成本上升的因素納入考量。

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.

我們認為晶片的主要挑戰更多在於供應。對於像 Nvidia（或 ring）晶片以及 Qualcomm 8155 這類高端晶片，我們與 Nvidia 和 Qualcomm 有長期且直接的策略合作。

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，我們相信應該能夠為生產取得充足供應。至於一些通用晶片或較便宜的晶片，例如 TI 和 Infinium 的產品，我們可能會不時遇到挑戰，這將影響我們的生產。當然，我們也有其他方式來緩解這些挑戰，例如尋找其他晶片替代，或在市場上掃貨建立策略性庫存，以避免這些風險。

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.

總體而言，我們相信在今年下半年或大約第四季，我們在車輛產能與電池產能方面都能看到一些根本性的改善。但在供應鏈波動方面，尤其是半導體，我們可能仍會面臨一些挑戰。

Thank you.

謝謝。

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

謝謝您的提問。下一個問題來自花旗的 Jeff Chung，請發言。

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。第一，為了抵消電池與鋁材可能的成本上升，我們是否應該在短期內考慮上調 MSRP（建議零售價）？如果是，會如何調整？如果不是，為什麼不調？

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?

第二個問題是關於現有【EC6】產品在未來幾個月的銷量能見度。我們是否有信心維持每月 10,000 輛？另外——能否請您多談一些第二季 ET7 的爬坡節奏？

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.

最後一個問題是中國的鋰現貨價格。您認為在近期政府介入之後，價格是否已經見頂？謝謝。

(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.

（口譯）就目前的 ES8、ES6 和 EC6 而言，當然如果我們看數位（聽不清），這其實是基於 2018 年開發的蔚來技術平台 1.0。因此，若運行一些複雜的軟體，這顆晶片的效率可能會受到影響。

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，我們認為今年會把現有產品的智慧硬體進行升級。我們也將針對智慧硬體升級，為用戶提供售後升級服務。我們會在適當的時間推出這個方案。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.

但當然，基於現有產品的智慧硬體升級，以及我們也將推出一些年式（model year）產品，屆時我們認為可能可以根據供應鏈成本上升的情況，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.

你也問到我們目前產品的表現，是否仍能維持每月 10,000 台。根據我們 3 月的訂單動能，我們認為可以符合預期；我們也認為用戶需求對我們不是問題，因為如果把目前的 ES6 和 EC6 與市場上的其他純電（EV）產品以及燃油車（ICE）產品相比，我們認為我們仍有很多競爭優勢，因此整體需求動能仍然相當強。

(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.

（口譯）關於 ET7 的產能爬坡（ramp-up），因為 ET7 將在我們稱為 F1 的第一工廠生產，並且會與目前的 ES8、ES6 和 EC6 共用產線；同時，我們也會在 ET7 的生產中導入一些新的製造技術與工藝。因此，從去年開始，我們就開始調整 F1 的產線，以支援新產品的生產。

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，我也提到今年第三季開始交付的 ES7。這款產品也將在 F1 生產。所以你可以看到，F1 的情況相當複雜，因為我們需要確保有足夠的產能來支援現有的 ES8、ES6 和 EC6，但同時也要生產 ET7，並為 ES7 的生產做準備。

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.

因此，我們認為 ET7 的爬坡進度可能會比 ET5 稍慢一些。看起來 ET5 會在一座獨立的新工廠 F2 生產。所以我們認為大約在今年第三季左右，ET7 應該可以達到正常的生產節奏。

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.

關於碳酸鋰成本上升，我們針對整個產業鏈，尤其是上游，做了非常深入的研究。我們認為成本上升或價格上漲主要是因為趁勢（opportunistic）的漲價，並不是因為碳酸鋰材料在供需之間出現了明顯的巨大缺口。

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，目前我們也看到一些中國主管部門（例如工信部 MIIT）已經開始建立一些機制來管理這種情況。同時，我們也希望呼籲產業鏈上游的企業，應更多從整個產業長期發展的利益出發，而不是操縱或趁著成本上升的機會來提高價格。

(Spoken in a foreign language)

（以外語發言）

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

謝謝提問。下一個問題來自摩根大通（J.P. Morgan）的 Nick Lai，請發言。

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，謝謝讓我提問。兩個簡單問題：第一個關於利潤率，第二個關於[出口]業務。我的意思是，William 和[聽不清]已經談過毛利率（GP margin）了。我想把焦點轉到營業利潤率（OP margin）。是的。去年我們理解研發支出增加很多，部分原因——很大一部分原因是——主要是因為營收規模上升。那麼展望 2022 年，我們應該如何看待 SG&A 和研發費用：不論以金額或占營收比例來看？是否可以說研發費用占營收比例（以人民幣口徑）應該會明顯下降，而 SG&A 應該會或多或少與營收增長同步？

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]。我理解它可能不是汽車總銷售中的大部分，但考慮到歐洲最新的動態，以及相對於美元或歐元更強的收入表現，ASPOR 方面有沒有更新？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.

（口譯）關於營業利潤率（OP margin），去年就公司的策略而言，我們希望確保毛利能夠覆蓋 SG&A 成本；我們相信透過效率提升與執行力，我們在 2021 年已經貫徹了這一策略。

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.

在未來幾年，我們將持續在研發與基礎設施方面進行果斷投資。當然，我們的策略會保持不變；也就是說，我們希望確保可以用毛利來覆蓋 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.

如果看歐盟市場，當然去年因為是我們進入全球市場的第一年，意味著去年需要做一些前置投資；我們認為今年的效率會比去年高很多。

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。我們認為今年的研發投入將超過 2021 年的兩倍，因為我們將投資一些長期核心技術與基礎性技術，以及 2023 年的新產品，並且也會做一些面向全球市場的產品適配。

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 年年底，我們的研發人員規模將達到約 9,000 人；我們認為相較於目前的研發團隊規模，這將是一個很大的增長。這就是 2022 年的整體規劃。

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.

就公司整體策略方向而言，我們的目標是在 2023 年第四季實現單季損益兩平，並在 2024 年全年實現損益兩平或達到盈利。

(Spoken in foreign language).

（以外語發言）。

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，對吧？不，其實目前我們在挪威每個月交付大約[108]台，這大大提升了我們的信心，也證明了我們[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，由於我們將在今年下半年在歐洲啟動 SUV，因此歐洲市場對今年銷量的貢獻不會非常顯著。但從現在開始，蔚來（NIO）將持續發展並完善其產品組合與服務網路，建立本地用戶社群，並追求高用戶滿意度。我們相信，在此基礎上，歐洲的市占率與銷量將會自然提升。

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

謝謝提問。我現在來回答下一個問題。

(Inaudible).

（聽不清）。

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

請繼續。接下來我請高盛（Goldman Sachs）的 Fei Fang 提問，請發言。

(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.

（口譯）我先快速替自己翻譯一下。管理層能否談談你們基礎設施的使用率指標：換電站與超充站的使用情況、人們使用的頻率、單站經濟性（unit economics），以及一線城市與低線城市之間有何差異？謝謝。

(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.

（口譯）此前我們也提到，截至目前我們累計已完成超過 760 萬次換電，這意味著目前換電站的狀態是：每天大約可以完成 30,000 次換電。

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.

在一些用戶較多的地區，當然單座換電站一天可以承載超過 1,000 次換電；但在高速公路上，換電站一天大概每站只能承載約 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路，可能提前了一到兩年；換電站網路的設計目標是換電站與用戶的比例約為 1:1000。但如果看我們目前的換電網路，尤其是換電網路，我們現階段其實部署得偏多，以確保用戶能有更好的體驗。

(Spoken in foreign language).

（以外語發言）。

Next question.

下一個問題。

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

當然可以。下一個問題來自德意志銀行（Deutsche Bank）的 Edison Yu，請發言。

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?

感謝讓我們提問。第一個問題，能否請您談談自動駕駛功能的推出節奏？您認為 LiDAR 會帶來哪些功能，我們預期何時能在車上看到這些功能上線？

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.

第二個問題是關於蔚來生態系更廣泛的布局。有報導稱你們正在開發智慧型手機。我們應該如何看待汽車以外的進展？我知道——VR 可能會是很重要的一部分。若能分享任何（聽不清）資訊將不勝感激。謝謝。

(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）謝謝您的提問。當然，隨著 ET7 開始交付的時間點，我們會先向用戶提供增強版的 [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.

此外，我們已經把從感知到控制策略的全棧自動駕駛能力排入計畫。我們目標是在今年第四季左右，透過我們的 NAD 技術開始以服務形式提供自動駕駛（AD as a service）。

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，我們一直積極探索車輛與智慧型手機及其他行動終端之間可能的連結與協同效應，因為我們相信這兩類產品在底層技術、供應鏈以及軟體方面有很多協同。

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（NIO Day）發布 ET5 時，我們也介紹了一些 AR 與 VR 技術；我們相信仍有很大的創新空間，也可以思考在車內的一些創新應用。

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

謝謝各位的提問。下一個問題來自中金公司（CICC）的鄧雪，請發言。

(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）我的下一個問題是，2022 年的資本支出（CapEx）預算是多少？能否請您介紹主要投向方向以及具體金額？謝謝。

(Spoken in foreign language).

（以外語發言）。

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，如 William 所提到的，我們的毛利率已經可以覆蓋我們的銷售、一般及行政（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，我們手上的現金主要將用於研發活動，以及用於新產品開發與生產設施、服務網路擴張，並包括充電與換電等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.

整體而言，也如我們先前所說，我們將在 2022 年底把換電站增加到 1,300 座。我們也將在 2022 年新增 100 家 NIO House 與 NIO Space，並新增 60 個服務中心——2022 年新增 50 個服務中心。

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.

另外，我們也將在 2022 年進一步建設位於合肥的 NeoPark。因此，總支出我認為將——相較 2021 年可能會有大幅增加。是的，謝謝。

(Spoken in foreign language).

（以外語發言）。

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

謝謝各位的提問。下一個問題來自瑞銀（UBS）的 Paul Gong，請發言。

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，嗨，謝謝讓我提問。很高興在這麼晚的時候我還有機會提問。我就把問題限制在一個。

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.

我想更了解你們對大眾市場品牌的看法。顯然，為了更具吸引力的定價點或成本對比，你們必須在一些蔚來品牌具備的功能上做出取捨。

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，新產品所包含的功能，例如外觀、內裝、先進駕駛功能、加速性能、續航里程、換電站，以及例如數位體驗與服務等。

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，對於大眾市場品牌，你們認為哪些方面會選擇妥協、並且會專門保留給蔚來品牌，而不會期待大眾市場品牌提供？就這個問題。謝謝。

(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）謝謝您的提問。當然，如果我們想提升銷量並擴大用戶基礎，不同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，一些同業如特斯拉，他們採取了與我們非常不同的策略。對特斯拉而言，他們基本上透過很大的價差，將 Model 3 與 Model Y 與 Model X 與 Model S 做出區隔。

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.

透過這樣的方式，他們以 Model 3 與 Model Y 進入大眾市場。到目前為止相當成功，但同時我們也看到一些負面影響。

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，儘管處於產品週期之中，Model X 與 Model Y 的銷量仍顯著下降。因此，我們認為汽車產業存在一些底層的基本規律。

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，單一品牌的承載帶寬是有限的。很難想像一個品牌能同時支撐從人民幣 10 萬到人民幣 100 萬的定價區間。這不可行，我認為這也違背常識。

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.

因此，對蔚來而言，我們目前鎖定約 5 萬到 10 萬美元的市場區間；如果要下探到主流市場，也就是約 3 萬到 5 萬美元的定價區間。

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.

我們認為這是一個更大的市場，具備合理的市場規模可供我們成長，同時也能實現合理的成長毛利率。

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.

我們也需要從 Model 3 與 Model Y 的經驗中汲取教訓。我們理解，當然，面向這個大眾市場，我們也需要重新思考產品的底層架構，並考慮使用不同的材料以及不同的製造技術來打造產品。

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，當然也需要以效率為驅動。對於這個 3 萬到 5 萬美元的細分市場，我們認為以新品牌進入該市場區間是更合理的做法。我們相信這對我們而言是更好的策略。我們也看到市場上有一些成功案例，例如奧迪與福斯，以及雷克薩斯與豐田。

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顛覆市場的一種策略。當然，對於大眾市場品牌，其前提是確保我們能達到高效率，並實現合理的整車毛利率。

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

謝謝各位的提問。現在，我想把電話會議交回公司作結語。

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：再次感謝各位今天參與。如果您還有進一步問題，歡迎透過我們網站上提供的聯絡資訊與蔚來投資者關係團隊聯繫。

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

本次電話會議到此結束。您現在可以掛線。謝謝。

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.

本逐字稿中標註（翻譯）的部分，為現場電話會議中由口譯員所說。該口譯員由本活動的主辦公司提供。