Xpeng Inc (XPEV) 2022 Q3 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for the Third Quarter 2022 Earnings Conference Call for XPeng, Inc. (Operator Instructions) Today's conference call is being recorded. I will now turn the call over to your host, Mr. Alex Xie, Head of Investor Relations of the company. Please go ahead, Alex.

女士們，先生們，您好。感謝您支持 XPeng, Inc. 2022 年第三季度收益電話會議（操作員說明）今天的電話會議正在錄製中。我現在將電話轉給您的主持人，公司投資者關係主管 Alex Xie 先生。請繼續，亞歷克斯。

Thank you. Hello, everyone, and welcome to XPeng's Third Quarter 2022 Earnings Conference Call. Our financial and operating results were issued by newswire services earlier today and available online. You can also view the earnings press release by visiting the IR section of our website at ir.xpeng.com.

謝謝你。大家好，歡迎來到小鵬汽車2022年第三季度財報電話會議。我們的財務和經營業績今天早些時候由新聞專線服務發布，可在線查閱。您還可以訪問我們網站 ir.xpeng.com 的 IR 部分查看收益新聞稿。

Participants on today's call from our management will include: Co-Founder, Chairman and CEO, Mr. He Xiaopeng; Vice Chairman and President, Dr. Brian Gu; Vice President of Finance, Mr. Dennis Lu; Vice President of Corporate Finance and Investment, Mr. Charles Zhang; and myself.

我們管理層今天電話會議的參與者包括：聯合創始人、董事長兼首席執行官何小鵬先生；副董事長兼總裁顧博良博士；財務部副總裁盧志強先生；企業融資與投資副總裁張朝陽先生；和我自己。

Management will begin with prepared remarks, and the call will conclude with a Q&A session. A webcast replay of this conference call will be available on the IR section of our website.

管理層將從準備好的發言開始，電話會議將以問答環節結束。本次電話會議的網絡直播重播將在我們網站的 IR 部分提供。

Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the relevant public filings of the company as filed with the U.S. Securities and Exchange Commission.

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的風險和不確定性。因此，該公司的業績可能與今天表達的觀點存在重大差異。有關這些及其他風險和不確定性的更多信息包含在公司提交給美國證券交易委員會的相關公開文件中。

The company does not assume any obligation to update any forward-looking statements, except as required under the applicable law. Please also note that XPeng's earnings press release and this conference call include the disclosure of the unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. XPeng's earnings press release contains a reconciliation of the unaudited non-GAAP financial measures to the unaudited GAAP measures.

公司不承擔任何更新任何前瞻性陳述的義務，除非適用法律要求。另請注意，小鵬汽車的收益新聞稿和本次電話會議包括未經審計的 GAAP 財務指標以及未經審計的非 GAAP 財務指標的披露。 XPeng 的收益新聞稿包含未經審計的非 GAAP 財務指標與未經審計的 GAAP 指標的對賬。

I will now turn the call over to our Co-Founder, Chairman and CEO, Mr. He Xiaopeng. Please go ahead.

我現在將電話轉交給我們的聯合創始人、董事長兼首席執行官何小鵬先生。請繼續。

[Interpreted] Hi, everyone. I'm He Xiaopeng. In the third quarter of 2022, XPeng delivered 29,570 electric vehicles, a year-over-year increase of 15%. Cumulative deliveries in the first 3 quarters of 2022 totaled 98,553 electric vehicles, representing a growth of 75% year-over-year. Frankly, we're going through a very challenging period in pursuing our long-term goals.

【翻譯】大家好。我是何小鵬。 2022年第三季度，小鵬電動汽車交付29,570輛，同比增長15%。 2022年前三季度累計交付電動汽車98,553輛，同比增長75%。坦率地說，我們在追求長期目標的過程中正在經歷一個非常具有挑戰性的時期。

In response, we recently conducted an in-depth strategic review and implemented organizational restructure. The competition for smart EVs is similar to a marathon. I believe that only strong players with core technologies, well-rounded capabilities and the ability to monetize from both hardware and software will eventually win in the long run.

作為回應，我們最近進行了深入的戰略審查並實施了組織重組。智能電動汽車的競爭類似於馬拉松。我相信，只有擁有核心技術、全面能力和軟硬件雙贏能力的強者，才能最終勝出。

To enhance our product competitiveness and boost cells, we'll simplify configurations while improving our hardware and software products attractiveness to incorporate customers' voices and needs. As market competition intensifies, we'll sharpen our marketing to highlight the great value in our industry-leading smart and electrification technologies and further enhance our branding, sales and service capabilities. I would also like to take this opportunity to sincerely thank our customers and shareholders for their valuable suggestions regarding these areas for improvement.

為了增強我們的產品競爭力和增強細胞，我們將簡化配置，同時提高我們的硬件和軟件產品的吸引力，以納入客戶的聲音和需求。隨著市場競爭的加劇，我們將加強營銷，突出行業領先的智能化和電氣化技術的巨大價值，進一步提升品牌、銷售和服務能力。本人亦藉此機會衷心感謝我們的客戶及股東就這些方面提出的寶貴建議，以供改善。

Within the new organizational structure, I will focus on XPeng's strategy, product planning and R&D. My goal will be to drive organizational change and upgrades, ensure customer values is reflected in our entire product development process, including design, R&D, sales and service holistically making our business operation more concentrated and efficient. In a recent strategic review, I'm more convinced that the adoption of smart EVs will accelerate in the second half of 2023.

在新的組織結構中，我將專注於小鵬汽車的戰略、產品規劃和研發。我的目標是推動組織變革和升級，確保客戶價值體現在我們整個產品開發過程中，包括設計、研發、銷售和服務，使我們的業務運營更加集中和高效。在最近的戰略回顧中，我更加相信智能電動汽車的採用將在 2023 年下半年加速。

We'll unwaveringly invest in the R&D of autonomous driving and smart cockpit technologies to strive to reduce the cost of these technologies to our customers while ensuring that customers needs and preferences are at the center of our innovation to enhance our smart products' competitiveness and profitability as well as our customer satisfaction.

我們將堅定不移地投入自動駕駛和智能座艙技術的研發，努力降低客戶在這些技術上的成本，同時確保以客戶需求和偏好為中心的創新，提升我們智能產品的競爭力和盈利能力以及我們的客戶滿意度。

At the same time, the platform-based approach for our vehicles and powertrain will improve the efficiency of our research and development and will help consistently reduce our R&D expenses and BOM costs through technologies. Besides, our ecosystem affiliates, XPeng Aero HT and XPeng Robotics have both raised funds recently and are now well equipped to operate independently. As a result, I will be spending much less of my time on our ecosystem affiliates operations. Our co-founder, Mr. Heng Xia will resign as an Executive Director of the Board of Directors to focus more on products.

同時，整車和動力總成平台化將提升研發效率，通過技術手段持續降低研發費用和BOM成本。此外，我們的生態系統附屬公司小鵬航空HT和小鵬機器人最近都完成了融資，現在已經具備獨立運營的條件。因此，我將花費更少的時間在我們的生態系統附屬機構運營上。我們的聯合創始人夏恆先生將辭去董事會執行董事一職，以更加專注於產品。

In addition, we are restructuring our brand and marketing team through a strengthened team and more targeted content, I believe will succeed in addressing the key factors that affect consumers purchase decisions in the most sought-after channels and across a broad range of customer demographics, paving the way for more powerful brand awareness of XPeng in our products.

此外，我們正在通過加強團隊和更有針對性的內容來重組我們的品牌和營銷團隊，我相信這將成功解決影響消費者在最搶手的渠道和廣泛的客戶群體中購買決策的關鍵因素，為小鵬在我們產品中更強大的品牌知名度鋪平道路。

Leveraging our dedicated EV platforms with a focus on architecture and powertrain, we expect to increase our R&D efficiency, enhance our cost control measures and improve supply chain management. In line with our mission, we have invested in 3 powerful EV platforms over the past few years including our fully established E platform and our third-generation F platform and H platform, both of which are expected to be mass produced next year.

利用我們專注於架構和動力總成的專用 EV 平台，我們希望提高研發效率、加強成本控制措施並改善供應鏈管理。根據我們的使命，我們在過去幾年投資了 3 個強大的 EV 平台，包括我們完全成熟的 E 平台和我們的第三代 F 平台和 H 平台，這兩個平台都有望在明年量產。

Together, these advanced platforms form a solid technology foundation to support our product upgrades and iterations. Our core technologies, including our powertrain system, advanced driver assistance systems, chassis and electrical and electronic architecture will be shared across multiple vehicles we are developing as much as possible. As a result, the required R&D cycle time and expenditure for each new product will be reduced, while the vehicle software and hardware quality will be more stable.

這些先進的平台共同構成了堅實的技術基礎，支持我們的產品升級和迭代。我們的核心技術，包括我們的動力總成系統、高級駕駛員輔助系統、底盤和電氣和電子架構，將盡可能在我們正在開發的多款車輛上共享。如此一來，每款新產品所需的研發週期和支出將減少，而整車軟硬件質量將更加穩定。

We have also adjusted the organizational structure for our EV product management team accordingly. Each EV platform will be led by a senior product manager in charge of product development across the complete product cycle from design and development to sell, forming a market-led closed-loop system to improve user experience in sales.

我們還相應地調整了電動汽車產品管理團隊的組織結構。每個電動汽車平台都將由一名高級產品經理負責產品開發，貫穿從設計開發到銷售的整個產品週期，形成以市場為主導的閉環系統，以提高銷售中的用戶體驗。

Mass deliveries of the G9, our flagship SUV equipped with our most advanced technologies, commenced at the end of October. All of the G9s are equipped with an 800-volt high-voltage platform that enables excellent driving range. Its charging speed also outperforms all the other EV models in the market. The increasing market recognition of G9's outstanding capabilities has marked XPeng's leadership in not only smart technology but also electrification.

我們搭載最先進技術的旗艦 SUV G9 已於 10 月底開始批量交付。 G9全系搭載800伏高壓平台，續航里程極佳。其充電速度也優於市場上所有其他電動汽車車型。市場對G9卓越能力的認可度越來越高，標誌著小鵬不僅在智能科技，在電動化領域也處於領先地位。

Such a reputation is not only popularized in China but also overseas. Despite near-term challenges brought by COVID-related restrictions and production ramp-up, we are confident that the G9 will soon rank among the top 3 in terms of monthly sales volume in a battery electric SUV segment priced above RMB 300,000 and draw closer to #1 next year as we continue to enhance our brand recognition.

這樣的美譽不僅在國內流行，在海外也廣為流傳。儘管疫情相關限制和產量提升帶來了近期挑戰，但我們有信心 G9 很快將躋身 30 萬元以上純電動 SUV 細分市場的月銷量前三，並接近隨著我們繼續提高品牌知名度，明年排名第一。

We believe G9's sales ramp-up will drive future sales volume and pull it out of the trial we experienced in October. Moreover, beginning in the first quarter of next year, we will successfully launch 3 new vehicle models, which will further strengthen our product competitiveness. We also expect consistent improvement in our marketing capabilities to make our subsequent product launches successful.

我們相信 G9 的銷量增長將推動未來的銷量，並將其從我們 10 月份經歷的考驗中拉出來。而且，從明年一季度開始，我們將成功推出3款新車型，進一步增強我們的產品競爭力。我們還期望不斷提高我們的營銷能力，以使我們的後續產品發布取得成功。

As we continue to roll out new products and technologies, coupled with technology differentiation of our next-generation full scenario ADAS products, we're confident that we will achieve a significant increase in sales volume and average selling price, gaining a revenue growth in 2023 that exceeds the industry average and increasing our market share.

隨著我們不斷推出新產品和新技術，加上我們下一代全場景ADAS產品的技術差異化，我們有信心在2023年實現銷量和平均售價的顯著增長，實現收入增長這超過了行業平均水平並增加了我們的市場份額。

Since the third quarter of this year, we have made significant progress in the mass production of autonomous driving technology. We continue cultivating consumers' trust in and willingness to purchase our product with best-in-class ADAS software. On September 17, we delivered our City NGP pilot program in Guangzhou. .

今年三季度以來，我們在自動駕駛技術量產方面取得了重大進展。我們通過一流的 ADAS 軟件繼續培養消費者對我們產品的信任和購買意願。 9 月 17 日，我們在廣州開展了城市 NGP 試點項目。 .

In urban traffic scenarios, which are significantly more complex than highway scenarios, XPeng's P5 took the lead in delivering the best-in-class driver safety and driving experience at a much lower hardware cost.

在比高速公路場景複雜得多的城市交通場景中，小鵬P5率先以更低的硬件成本提供了一流的駕駛安全和駕駛體驗。

We are accelerating the development of our next-generation full scenario advanced driver-assistance product, XNGP and plan to release its major functions to several dozen cities in the third quarter of 2023. In my view, the upcoming release of XNGP will represent an inflection point where smart driver assistance software becomes a must-have product with high-frequency usage.

我們正在加速開發下一代全場景高級輔助駕駛產品XNGP，計劃在2023年第三季度將其主要功能推向數十個城市。我認為即將發布的XNGP將是一個拐點智能駕駛輔助軟件成為高頻使用的必備產品。

We're also pleased to see that a high proportion of current G9 orders are for the max version that features XNGP ahead of the XNGP's OTA rollout. We look forward to enabling our cost competitive XNGP next year in more models. Furthermore, we believe XNGP's hardware costs will have the opportunity to be reduced as our technology advances and become significantly lower than that of our peers. Driven by strong brand awareness of our product and cost competitiveness, we're confident that XNGP will rapidly gain widespread adoption nationwide.

我們也很高興地看到，在 XNGP 的 OTA 推出之前，當前 G9 訂單中有很大一部分是針對具有 XNGP 功能的最大版本。我們期待明年在更多模型中啟用我們具有成本競爭力的 XNGP。此外，我們相信 XNGP 的硬件成本將有機會隨著我們技術的進步而降低，並顯著低於同行。在我們產品的強大品牌知名度和成本競爭力的推動下，我們相信 XNGP 將迅速在全國范圍內得到廣泛採用。

On October 31, the XPeng G9 obtained the Guangzhou Intelligent Connected Vehicle Road Test permit making XPeng G9 the first unmodified mass-produced vehicle to qualify for autonomous driving tests on China's public roads. With the parallel development of our advanced driver-assistance system XNGP and mobile taxi capabilities alongside a closed-loop data and a complementary approach in software iterations, we plan to be the first to realize autonomous driving with cost-effective mass-produced vehicles.

10月31日，小鵬G9獲得廣州市智能網聯汽車道路測試許可證，小鵬G9成為首款獲得中國公共道路自動駕駛測試資格的未改裝量產車型。隨著我們先進的駕駛輔助系統 XNGP 和移動出租車功能的並行開發，以及閉環數據和軟件迭代中的互補方法，我們計劃率先通過具有成本效益的量產車輛實現自動駕駛。

As we strive to bring our smart technologies and electrification technologies into commercialization, we firmly believe in the value proposition that our in-house developed, industry-leading technologies bring to our customers as well as our commercial value for our enterprise. We're open to opportunities for strategic corporation and technology collaborations globally.

在我們努力將我們的智能技術和電氣化技術轉化為商業化的過程中，我們堅信我們內部開發的行業領先技術為我們的客戶帶來的價值主張以及我們為企業帶來的商業價值。我們對全球戰略公司和技術合作的機會持開放態度。

Regarding cash liquidity, our current cash amounts to over RMB 40 billion. We have become increasingly aware of the importance for automakers to maintain steady growth in adversity and not just in prosperity. Therefore, we will implement prudent cost control initiatives over the next few quarters and next few years to improve operational efficiency and streamline our investment projects.

在現金流動性方面，我們目前的現金超過400億元人民幣。我們越來越意識到汽車製造商在逆境中保持穩定增長的重要性，而不僅僅是在繁榮中。因此，我們將在未來幾個季度和未來幾年實施審慎的成本控制措施，以提高運營效率並精簡我們的投資項目。

Building on our more focused R&D strategy and vehicle and technology platforms that can be applied across different vehicle models, we plan to roll out future products at a lower R&D cost. A stronger product portfolio and internal organizational restructuring will also help significantly improve our sales efficiency. Furthermore, thanks to our early investment in our production capabilities, our CapEx needs will significantly decrease over the next couple of years compared with 2022. Therefore, we're confident that our cash position of RMB 40 billion will support our business growth in the coming years. Also, our cash flow will substantially improve as our product sales grow.

基於我們更加專注的研發戰略以及可應用於不同車型的車輛和技術平台，我們計劃以更低的研發成本推出未來的產品。更強大的產品組合和內部組織重組也將有助於顯著提高我們的銷售效率。此外，由於我們對生產能力的早期投資，與 2022 年相比，未來幾年我們的資本支出需求將大幅減少。因此，我們有信心 400 億元人民幣的現金狀況將支持我們未來的業務增長年。此外，隨著我們產品銷售的增長，我們的現金流量將大幅改善。

Looking ahead to the fourth quarter, we'll focus on mitigating the impact of COVID-related restrictions in China and making internal adjustments for our medium- and long-term development. Our November deliveries are estimated to reach at least 5,800 units, mainly due to the impact of the G9 production ramp-up. We're trying our best to expedite deliveries of our order backlog.

展望第四季度，我們將著重於減輕中國與 COVID 相關限制的影響，並為我們的中長期發展進行內部調整。我們 11 月的交付量估計至少達到 5,800 台，這主要是由於 G9 產量提升的影響。我們正在盡最大努力加快交付積壓的訂單。

In December, our deliveries will rebound significantly month-to-month -- month-over-month. We expect to deliver a total of 20,000 to 21,000 vehicles in the fourth quarter of 2022 and generate revenue between RMB 4.8 billion to RMB 5.1 billion. We will accelerate internal organizational adjustments and management upgrades in the coming quarters. We're confident that we will rank among the top players in the smart vehicle industry in the medium to long term.

12 月，我們的交付量將逐月顯著反彈 - 逐月。我們預計 2022 年第四季度共交付 20,000 至 21,000 輛汽車，並產生 48 億元至 51 億元的收入。未來幾個季度，我們將加快內部組織調整和管理升級。我們有信心在中長期內躋身於智能汽車行業的領先者之列。

Thank you, everyone. With that, I'll now turn the call over to our VP of Finance, Mr. Dennis Lu, to discuss our financial performance for the third quarter of 2022.

謝謝大家。有了這個，我現在將電話轉給我們的財務副總裁 Dennis Lu 先生，討論我們 2022 年第三季度的財務業績。

Thank you, Mr. He, and hello, everyone. Now I would like to provide a brief overview of our financial results for the third quarter of 2022. I will reference RMB only in my discussion today, unless otherwise stated.

謝謝何老師，大家好。現在我想簡要介紹一下我們 2022 年第三季度的財務業績。除非另有說明，否則我今天的討論將僅提及人民幣。

Our total revenues were RMB 6.8 billion for the third quarter of 2022, an increase of 19.3% year-over-year and a decrease of 8.2% quarter-over-quarter. Revenues from vehicle sales were RMB 6.2 billion for the third quarter of 2022, an increase of 14.3% year-over-year and a decrease of 10.1% from the last quarter.

2022 年第三季度，我們的總收入為人民幣 68 億元，同比增長 19.3%，環比下降 8.2%。 2022年第三季度汽車銷售收入為人民幣62億元，同比增長14.3%，環比下降10.1%。

The year-over-year increase was mainly attributable to higher vehicle deliveries, while the quarter-over-quarter decrease was mainly due to lower vehicle deliveries for the P5 and G3i. Gross margin was 13.5% for the third quarter of 2022 compared with 14.4% for the same period of 2021 and 10.9% for the last quarter.

同比增長主要是由於車輛交付量增加，而環比下降主要是由於 P5 和 G3i 的車輛交付量減少。 2022 年第三季度的毛利率為 13.5%，而 2021 年同期為 14.4%，上一季度為 10.9%。

Vehicle margin reached 11.6% for the third quarter of 2022 compared with 13.6% for the same period of 2021 and 9.1% for the last quarter. The quarter-over-quarter increase was mainly attributable to product mix changes. R&D expenses were RMB 1.5 billion for the third quarter of 2022, an increase of 18.5% year-over-year and an increase of 18.5% quarter-over-quarter.

2022 年第三季度汽車利潤率達到 11.6%，而 2021 年同期為 13.6%，上一季度為 9.1%。環比增長主要歸因於產品結構的變化。 2022年第三季度研發費用為人民幣15億元，同比增長18.5%，環比增長18.5%。

The year-over-year increase was mainly due to the increase in employee compensation as a result of expanded research and development staff. And the quarter-over-quarter increase was primarily associated with higher new vehicle development to support our future goals. SG&A expenses were RMB 1.6 billion for the third quarter of 2022, an increase of 5.7% year-over-year and a decrease of 2.3% quarter-over-quarter. The year-over-year increase was mainly due to expansion of our sales network and associated personnel costs.

同比增長主要是由於研發人員擴大導致員工薪酬增加。環比增長主要與支持我們未來目標的新車開發增加有關。 2022 年第三季度的 SG&A 費用為人民幣 16 億元，同比增長 5.7%，環比下降 2.3%。同比增長主要是由於我們銷售網絡的擴張和相關的人員成本。

The quarter-over-quarter decrease was mainly attributable to lower operating expenses. As a result of foregoing loss from operations was RMB 2.2 billion for the third quarter of 2022 compared with RMB 1.8 billion for the same period of 2021 and RMB 2.1 billion for the last quarter.

環比下降主要是由於運營費用減少。由於上述原因，2022 年第三季度的運營虧損為人民幣 22 億元，而 2021 年同期為人民幣 18 億元，上一季度為人民幣 21 億元。

Net loss was RMB 2.4 billion for the third quarter compared with RMB 1.6 billion for the same period a year ago and RMB 2.7 billion for the last quarter. Comprehensive loss was RMB 0.7 billion for the third quarter compared with RMB 1.6 billion for the same period a year ago and RMB 0.8 billion for the last quarter.

第三季度淨虧損為人民幣 24 億元，去年同期為人民幣 16 億元，上一季度為人民幣 27 億元。第三季度綜合虧損為7億元人民幣，去年同期為16億元人民幣，上季度為8億元人民幣。

The primary difference between the comprehensive loss and net loss was foreign currency translation gain resulting from the rapid appreciation of U.S. dollar-denominated assets.

綜合損失與淨損失的主要區別在於美元計價資產快速升值產生的外幣折算收益。

As of September 30, 2022, we had cash and cash equivalents, restricted cash, short-term investments and time deposits in total of RMB 40.1 billion. To be mindful of the length of our earnings call, I will encourage listeners to refer to our press release for more details on our third quarter financial results.

截至2022年9月30日，我們持有現金及現金等價物、受限制現金、短期投資和定期存款合計人民幣401億元。請注意我們的財報電話會議的長度，我鼓勵聽眾參考我們的新聞稿，了解有關我們第三季度財務業績的更多詳細信息。

This concludes our prepared remarks. We will now open the call to questions. Operator, please go ahead.

我們準備好的發言到此結束。我們現在將開始提問。接線員，請繼續。

(Operator Instructions) We have a first question from the line of Tim Hsiao with Morgan Stanley.

（操作員說明）我們有來自 Tim Hsiao 與摩根士丹利的第一個問題。

(foreign language) So my first question is about deliveries because the vehicle deliveries have been slow in rest of the month, likely due to the modern translation and COVID curbs. XPeng has done a series of organizational restructuring, but how fast could this adjustment translate into more meaningful volume recovery in the upcoming months, assuming the impact from the COVID restriction could ease over time?

（外語）所以我的第一個問題是關於交付，因為本月剩餘時間車輛交付緩慢，可能是由於現代翻譯和 COVID 限制。小鵬汽車已經進行了一系列的組織重組，但假設 COVID 限制的影響會隨著時間的推移而緩解，這種調整在未來幾個月內能以多快的速度轉化為更有意義的銷量恢復？

And separately, have we adjusted our 10,000 target for G9 per month or the new P7 next year due to the current supply-demand challenges, as this is also hardly correlated to the company's profitability into 2023? So this is my first question.

另外，由於當前的供需挑戰，我們是否調整了 G9 每月 10,000 台或明年新 P7 的目標，因為這也與公司到 2023 年的盈利能力幾乎沒有關聯？所以這是我的第一個問題。

[Interpreted] All right. First of all, thank you for your question. Regarding -- well, I just reviewed a lot of historic cases of how manufacturers do changes over time. And currently, the organization adjustment that XPeng is conducting is for the mid- to long-term goals, not for the short term. So we ask for your patience.

[解釋] 好的。首先，謝謝你的問題。關於——好吧，我剛剛回顧了很多關於製造商如何隨著時間的推移做出改變的歷史案例。而目前，小鵬汽車正在進行的組織調整是為了中長期目標，而不是短期目標。因此，我們請求您的耐心等待。

At the same time, we are very confident that we can see more significant changes to be translated into our sales performance in the coming several quarters. And in 2023, our market share will be further expanded. Now in the short term, if the pandemic can be well under control, we are confident that in December, we can still maintain our original goal of reaching 10,000 of monthly sales for G9, and we can -- we are very confident that we can be ranked among the top 3 players in the battery electric SUV's segment, price above RMB 300,000.

同時，我們非常有信心在未來幾個季度看到更多重大變化轉化為我們的銷售業績。到2023年，我們的市場份額將進一步擴大。現在短期來看，如果疫情能得到很好的控制，我們有信心在12月份，我們仍然可以保持G9月銷10000的原定目標，而且我們可以——我們非常有信心我們可以進入純電動SUV細分市場前三，售價30萬元以上。

Now in 2023, with the rollout of our further developed XNGP function, we believe that G9's sales volume can be further enhanced to further exceed actually P7's performance compared to the same developmental stage in the history. At the same time, P7's competitiveness will be further enhanced alongside with our technological improvements with the -- and also their sales performance will be improved in the coming year as well.

現在到2023年，隨著我們進一步開發的XNGP功能的推出，我們相信G9的銷量可以進一步提升，與歷史上同一發展階段相比，實際上進一步超過P7的表現。同時，隨著我們的技術改進，P7的競爭力將進一步增強——他們的銷售業績也將在來年得到改善。

Now in mid-2023, we expect to launch a new product or a new model that are priced between RMB 200,000 to RMB 300,000, which will be a B-class mid-sized SUV and that will definitely help us to further boost our product sales. And we believe that the sales volume of this particular model will actually exceed our current product portfolio. Thank you.

現在2023年年中，我們預計會推出一款售價在20萬元到30萬元之間的新產品或新車型，這將是一款B級中型SUV，這肯定會幫助我們進一步提升產品銷量.而且我們相信這種特定型號的銷量實際上會超過我們目前的產品組合。謝謝你。

Just want to make a clarification. We mentioned that the December delivery overall will reach 10,000, not just G9, the overall delivery for December. Just want to make that clarification.

只是想澄清一下。我們提到12月份的整體交付量會達到10000個，不僅僅是G9，12月份的整體交付量。只是想澄清一下。

(foreign language) So my second question is about the cash flow. In light of the challenging macro backdrop, investors are increasingly concerned about expense cash flow. The company still has a pretty strong cash position and balance sheet based on the latest financial statement. But will there be any potential changes to our supplier payment turn or surge in new model investment next year that may deteriorate our operating cash flow? What kind of cash burn should we expect next year?

（外語） 所以我的第二個問題是關於現金流的。鑑於充滿挑戰的宏觀背景，投資者越來越關注費用現金流。根據最新的財務報表，該公司仍然擁有相當強勁的現金狀況和資產負債表。但明年我們的供應商付款轉向或新模式投資激增是否會有任何潛在變化，可能會惡化我們的經營現金流？明年我們應該期待什麼樣的現金消耗？

And separately, based on the latest financial statement, expense short-term borrowing also increased more substantially in the quarter. Is there any specific reason to that? That's my second question.

另外，根據最新的財務報表，本季度費用性短期借款也大幅增加。有什麼具體原因嗎？這是我的第二個問題。

Tim, it's Brian. Let me address your question. First of all, the payment terms for our suppliers, we don't see any material change. We're actually maintaining a pretty favorable payment terms with our suppliers and partners. And then if you look at the cash -- operating cash outflow, the first 3 quarters is actually less than RMB 6 billion. And then we actually also foresee the entire CapEx for this year 2022 to be less than RMB 4.5 billion and lower than what we anticipated earlier in the year.

蒂姆，是布萊恩。讓我來回答你的問題。首先，我們供應商的付款條件，我們沒有看到任何重大變化。實際上，我們與供應商和合作夥伴保持著非常優惠的付款條件。然後如果你看現金——經營現金流出，前三個季度實際上不到 60 億元人民幣。然後我們實際上還預計今年 2022 年的整個資本支出將低於 45 億元人民幣，低於我們今年早些時候的預期。

And then looking to 2023, we actually see a significant change and reduction in CapEx due to a number of factors. First of all, as Xiaopeng mentioned earlier that we actually pretty much completed our capacity build out, so we don't need to incur significant CapEx for that. We also have also completed the construction of these new product platforms for the new car launches. So a lot of these CapEx has been already incurred already.

然後展望 2023 年，由於多種因素，我們實際上看到資本支出發生重大變化和減少。首先，正如小鵬之前提到的，我們實際上已經基本完成了我們的產能建設，所以我們不需要為此承擔大量的資本支出。我們也已經為新車發布完成了這些新產品平台的建設。所以很多這些資本支出已經發生了。

So next year, we think the CapEx for us will be significantly lower, actually below RMB 3 billion in our estimate for next year. And also in line with the current streaming line and focus that we are doing in our R&D projects, we think the R&D expenses next year compared to 2022 will also see not growth actually in line or reduction. And we also see that SG&A expenses going down due to some of the structural organizational changes we mentioned.

所以明年，我們認為我們的資本支出將大大降低，實際上低於我們對明年的估計的 30 億元人民幣。而且根據我們目前在研發項目中的流水線和重點，我們認為明年的研發費用與 2022 年相比也不會實際增長或減少。我們還看到，由於我們提到的一些結構性組織變化，SG&A 費用下降了。

So overall, we're actually very confident that we can see free cash flow outflow significantly improve next year compared to this year. And also with our current cash on hand, we have very adequate resources to meet our business plan and we also anticipate that carries us to our projected cash flow positive sometime in 2024.

所以總的來說，我們實際上非常有信心，與今年相比，明年我們可以看到自由現金流出顯著改善。此外，憑藉我們目前的手頭現金，我們有非常充足的資源來滿足我們的業務計劃，我們還預計這將使我們在 2024 年的某個時候實現預期的正現金流。

Tim, this is Dennis. I just want to supplement one point regarding your question on the short-term borrowing. Yes, you're right, we have increased our short-term borrowing in the third quarter. The reason is basically for the kind of the money management because we have established considerable credit lines with a variety of banks. And then we tactically draw down some part of the credit lines to strengthen the relationship with banks. So that's why you see a slight increase in the short-term borrowing at the end of September.

蒂姆，這是丹尼斯。關於你關於短期借款的問題，我只想補充一點。是的，你是對的，我們在第三季度增加了短期借款。原因主要是資金管理的類型，因為我們已經與多家銀行建立了可觀的信貸額度。然後我們戰術性地提取部分信貸額度，以加強與銀行的關係。這就是為什麼你會看到 9 月底的短期借款略有增加。

This is Alex. I just like to clarify, when Brian mentioned the decrease of SG&A expenses, it means like as a percentage of revenues in 2023 compared with as a percentage of revenues in 2022. Thank you.

這是亞歷克斯。我只是想澄清一下，當布賴恩提到 SG&A 費用減少時，它的意思是 2023 年佔收入的百分比與 2022 年佔收入的百分比相比。謝謝。

We have next question from the line of Ming-Hsun Lee with Bank of America.

我們有來自美國銀行的 Ming-Hsun Lee 的下一個問題。

(foreign language) My question is that the ASP trend in 4Q based on the difference between your volume guidance and also the revenue guidance. So could you give us a more color on this? And besides that, looking into 2023, what's your plan to control the component costs as well as the battery costs in order to maintain your gross margin?

（外語）我的問題是，第四季度的 ASP 趨勢基於您的銷量指導和收入指導之間的差異。那麼你能給我們更多的顏色嗎？除此之外，展望2023年，您有什麼計劃來控制組件成本以及電池成本以維持您的毛利率？

Ming, this is Dennis. Regarding your question on the ASP, yes, you're right, in the third quarter, our ASP increased primarily -- compared with quarter 2, primarily due to the better mix, better P7 as mentioned also improved the margin.

明，這是丹尼斯。關於你關於 ASP 的問題，是的，你是對的，在第三季度，我們的 ASP 主要增加 - 與第二季度相比，主要是由於更好的組合，提到的更好的 P7 也提高了利潤率。

For the quarter 4, the P7 -- in terms of P7 mix will be lower. However, because of the mass delivery of the G9, so we'll be able to maintain together the P7 and the G9 mix at about maybe 55% to 60%. So we should -- we actually will have slight increase in terms of ASP compared with the quarter 3, offsetting some variable marketing spending on the P5 and G3. So that's the answer to your first question.

對於第 4 季度，P7——就 P7 組合而言將會更低。然而，由於 G9 的大規模交付，因此我們將能夠將 P7 和 G9 的混合比例保持在 55% 到 60% 左右。所以我們應該——與第三季度相比，我們實際上將在 ASP 方面略有增加，抵消 P5 和 G3 上的一些可變營銷支出。這就是你第一個問題的答案。

In terms of material cost increase. So far, we haven't seen the big changes in terms of the battery cost for the next year, mainly for the first quarter. But we believe due to more supply, we are seeing opportunities in terms of the battery supply. And that would, in return, translate into a cost reduction maybe in the second half. So with that, the cost improvement will help to maintain or to improve our margin, offsetting the NEV subsidy discontinuation.

在材料成本增加方面。到目前為止，我們還沒有看到明年（主要是第一季度）電池成本方面的重大變化。但我們相信，由於供應增加，我們在電池供應方面看到了機會。作為回報，這可能會在下半年轉化為成本降低。因此，成本改善將有助於維持或提高我們的利潤率，抵消新能源汽車補貼的終止。

Yes. So Ming, just to also add to this, the fourth quarter, due to the volume contraction and also launching of our new product, G9, I think the gross profit will face some pressure versus the third quarter. And then the first quarter, given the subsidy elimination, which impacts some of our lower-priced models, so that will also present a challenge for the gross profit.

是的。所以明，還要補充一點，第四季度，由於銷量收縮以及我們新產品 G9 的推出，我認為與第三季度相比，毛利潤將面臨一些壓力。然後是第一季度，考慮到取消補貼，這會影響我們的一些低價車型，因此這也將對毛利構成挑戰。

However, our view is that with the volume rebounding starting in the second quarter and in the rest of the year with scale, and also, we anticipate battery prices moderate and also show some opportunities for decline later in the year, I think the gross profit trend will improve significantly in the later half of next year.

然而，我們的觀點是，隨著銷量從第二季度開始反彈，並在今年餘下的時間裡規模化，而且我們預計電池價格溫和，並在今年晚些時候也顯示出一些下降的機會，我認為毛利明年下半年趨勢將明顯好轉。

We have next question from the line of Nick Lai with JPMorgan.

我們有來自摩根大通的 Nick Lai 的下一個問題。

(foreign language) Now let me translate my question firstly. Now Chairman just mentioned that you are going to change a lot of strategy regarding the management, including branding and marketing team and can you elaborate more what are going to change in terms of branding strategy and marketing campaign? And what -- when can we expect those changes having an impact on underlying demand or volume?

（外語）現在讓我先翻譯一下我的問題。現在主席剛才提到您將改變很多有關管理的策略，包括品牌和營銷團隊，您能否詳細說明在品牌策略和營銷活動方面將發生哪些變化？還有什麼——我們什麼時候可以預期這些變化會對潛在需求或數量產生影響？

[Interpreted] All right. Thank you, Nick, for your question. We're actually conducting or in the midst of doing this organizational adjustment with focus on our branding and marketing. Looking back, I mean, in the past, our branding and sales and marketing mainly focus on sales with more focus on boosting the sales of our products, but going into the future, we're going to balance different aspects of our branding, marketing and sales with innovative measures, and we plan to actually reduce our spending to boost in the sales, while increasing our spending in marketing.

[解釋] 好的。尼克，謝謝你的問題。我們實際上正在進行或正在進行這種組織調整，重點是我們的品牌和營銷。回顧過去，我的意思是，在過去，我們的品牌和營銷主要側重於銷售，更側重於促進我們產品的銷售，但展望未來，我們將平衡品牌、營銷的不同方面和銷售採取創新措施，我們計劃實際減少支出以促進銷售，同時增加營銷支出。

Now the second thing that is regarding the organization adjustment is that we plan to -- we expect to integrate our organization to make it more efficient and effective, and we plan to recruit very high-quality talent from different industries in order to boost our sales and marketing efficiency and we aim to launch a series of measures in order to tackle different challenges as well as boost our effectiveness in order to align our product portfolio as well as to achieve higher customer satisfaction rate, while adjusting the customer demand.

現在關於組織調整的第二件事是我們計劃 - 我們希望整合我們的組織以使其更加高效和有效，我們計劃從不同行業招募非常優質的人才以促進我們的銷售和營銷效率，我們旨在推出一系列措施，以應對不同的挑戰並提高我們的效率，以調整我們的產品組合併實現更高的客戶滿意度，同時調整客戶需求。

Now we are talking about our near-term strategy for this organizational changes in the coming 15 months, but we believe that in the long run, we will continue such adjustment in order to achieve our mid-to-long-term goal. Thank you.

現在我們正在談論我們未來15個月的組織變革的近期戰略，但我們相信從長遠來看，我們將繼續進行這種調整，以實現我們的中長期目標。謝謝你。

And just allow me to add to several key points. The first one is that we will have a clearer positioning of our brands and products. And the second thing is that we are aiming for the long game. We are not doing this for the short term.

請允許我補充幾個關鍵點。第一個是我們將對我們的品牌和產品有更清晰的定位。第二件事是我們的目標是長期比賽。我們不會在短期內這樣做。

And the third point is that we are going to be more aggressive and more proactive in our sales and marketing campaigns rather than being rather passive just like in the past. And the fourth and the last point is that we will remain a very customer-oriented and focused.

第三點是，我們將在銷售和營銷活動中更加積極主動，而不是像過去那樣被動。第四點也是最後一點是我們將保持以客戶為導向和專注。

(foreign language) My second question is really about autonomous driving XNGP solution. And can you give a little bit more how are we different from the other solutions such (inaudible) Huawei and so on? And also management mentioned that we are looking for potential opportunity to work with other potential partners on NGP product, and can you explain a bit more on that as well?

（外語）我的第二個問題是關於自動駕駛XNGP解決方案。您能否再多說一點，我們與（聽不清）華為等其他解決方案有何不同？管理層還提到我們正在尋找與其他潛在合作夥伴合作開發 NGP 產品的潛在機會，您能否對此做更多解釋？

[Interpreted] First of all, allow me to address the first part of your question. From our own user experience, there are 4 key components to the adoption of ADAS technology nowadays. The first one is scenario coverage or scenario support.

[解讀]首先，請允許我回答你問題的第一部分。從我們自己的用戶體驗來看，如今採用 ADAS 技術有 4 個關鍵組成部分。第一個是場景覆蓋或場景支持。

Now from our data, we noticed that highway and parking only took up about 10% of people's daily use in terms of the scenario, and 90% of people's use of ADAS technology is actually on city roads. And the second component to the adoption of ADAS is the cost. How much people are willing to pay for the advanced technology?

現在從我們的數據中，我們注意到高速公路和停車在人們日常使用的場景中只佔了10%左右，而人們對ADAS技術的90%實際上是在城市道路上。採用 ADAS 的第二個組成部分是成本。有多少人願意為先進技術買單？

And we actually are confident that in the future, the cost of affording our XNGP or related ADAS software will be able to be reduced to 20% to 30% of their current cost. And the third component is safety, and the fourth component is the true value that you are able to contribute to your customers. Now for XNGP, where we are able to roll out our City-based scenario or function, we are actually expanding the scenario coverage by over 9x because 90% of the usage happens on city roads compared to only 10% happen on highways and parking scenarios.

我們實際上有信心，在未來，提供我們的 XNGP 或相關 ADAS 軟件的成本將能夠降低到他們目前成本的 20% 到 30%。第三個組成部分是安全，第四個組成部分是您能夠為客戶貢獻的真正價值。現在對於 XNGP，我們能夠推出基於城市的場景或功能，我們實際上將場景覆蓋範圍擴大了 9 倍以上，因為 90% 的使用發生在城市道路上，而只有 10% 發生在高速公路和停車場景中.

Now in the past, without our XNGP, people mainly rely on, for example, high definition maps or laser-related -- laser-based technology, et cetera, those pose a lot of challenges, especially in areas where you don't have high definition mapping available and that caused a sharp difference -- that actually produced a sharp difference in terms of user experience and in terms of the safety as well. And we don't think that, that is our final target.

現在過去，如果沒有我們的 XNGP，人們主要依賴，例如，高清地圖或與激光相關的——基於激光的技術，等等，這些帶來了很多挑戰，尤其是在你沒有的領域高清地圖可用，這導致了明顯的差異——實際上在用戶體驗和安全性方面產生了明顯的差異。我們不認為那是我們的最終目標。

That's why we launched XNGP, that allows very consistent performance even in areas where we don't have high-definition mapping or high-definition maps available. And that actually is the reason why we are so excited that with the rollout of our city road based or city scenario-based XNGP, we will be able to support a true -- a full scenario functionality in a true sense, and we will be able to provide a very consistent experience when people are switching the use of such functionality from areas with high definition maps and without high-definition maps.

這就是我們推出 XNGP 的原因，即使在我們沒有高清地圖或高清地圖可用的區域，它也能提供非常一致的性能。這實際上就是我們如此興奮的原因，隨著我們基於城市道路或基於城市場景的 XNGP 的推出，我們將能夠支持真正意義上的完整場景功能，我們將當人們從有高清地圖和沒有高清地圖的區域切換使用此類功能時，能夠提供非常一致的體驗。

And that will allow our customers to have a very easy and safe and efficient driving experience just like when you are a passenger in a car driven by an experienced driver and that kind of seamless integration is our goal here, and that is why we are very confident with the rollout of our XNGP to achieve higher customer satisfaction. Thank you.

這將使我們的客戶擁有非常輕鬆、安全和高效的駕駛體驗，就像您乘坐由經驗豐富的司機駕駛的汽車一樣，這種無縫集成是我們的目標，這就是為什麼我們非常我們對推出 XNGP 以實現更高的客戶滿意度充滿信心。謝謝你。

Yes. And Nick, to answer your second question regarding the openness in terms of collaboration and cooperation, I think it's all generated from the recognition that we have spent a lot of effort and resources to develop market-leading technologies. And we think actually, in addition to increase our sales, I think there is tremendous value embedded in these technologies that can be monetized in other ways potentially.

是的。尼克，要回答你關於合作與合作方面的開放性的第二個問題，我認為這一切都源於我們已經花費了大量的努力和資源來開發市場領先的技術。我們認為，實際上，除了增加我們的銷售額之外，我認為這些技術還蘊含著巨大的價值，可以通過其他方式潛在地貨幣化。

We also saw tremendous interest in such technologies. We have leading technology in smart driving autonomy, in smart cockpit, in electrification and high-voltage platform, et cetera. So I think these technologies, I think, could become valuable if we actually have ability to make it more scalable and also using -- leveraging potential partners' resources to quickly penetrate scenarios or markets that we currently doesn't focus on.

我們還看到了對此類技術的極大興趣。我們在智能自動駕駛、智能座艙、電氣化和高壓平台等方面擁有領先的技術。因此，我認為，如果我們真的有能力使其更具可擴展性並使用——利用潛在合作夥伴的資源來快速滲透我們目前不關注的場景或市場，那麼我認為這些技術可能會變得有價值。

So with that, I think our openness, I think that we are evaluating a number of potential opportunities to hopefully help us to make these technology reach more scale, at the same time without compromising our focus on producing sort of attractive and competitive products ourselves. So this is an attitude. Obviously, if there is more specific progresses we are happy to update when it's available.

因此，我認為我們的開放性，我認為我們正在評估一些潛在的機會，希望能幫助我們使這些技術達到更大的規模，同時又不影響我們自己生產具有吸引力和競爭力的產品的重點。所以這是一種態度。顯然，如果有更具體的進展，我們很樂意在可用時進行更新。

We have next question from the line of Bin Wang with Crédit Suisse.

下一個問題來自 Bin Wang 與 Crédit Suisse 的對話。

(foreign language) My first question is about auto backlog, basically 2 parts. Number one, what's the new order flow for G9 in November? Second, what's the accumulative order backlog for G9? Because this year delivery should be more than 10,000, order backlog already secured?

（外語） 我的第一個問題是關於auto backlog，基本上是2個部分。第一，11 月 G9 的新訂單流程是什麼？第二，G9累計訂單積壓情況如何？因為今年出貨量應該超過10000個，訂單積壓已經有保障了？

Bin, it's Brian. First of all, as you have tried a number of times but we don't disclose backlog on any model of particular company backlogs. But there are a few things that I want to point out to you. One is that as you can see that our delivery timetable has now been extended to later in the first quarter, that shows the strong -- our orders at hand, and we will be also delivering a significant number in December of G9, so that's 1 indication.

斌，是布萊恩。首先，因為您已經嘗試了很多次，但我們不會披露特定公司積壓的任何模型的積壓。但有幾件事我想向你指出。一個是正如你所看到的，我們的交付時間表現在已經延長到第一季度晚些時候，這表明我們手頭的訂單很強勁，我們還將在 G9 的 12 月交付大量訂單，所以這是 1適應症。

Secondly is that we also are confident that with our sales momentum, we see G9 become 1 of the top 3, if not the top 2 battery electric SUV models over RMB 300,000 price, and that's also an indication of the level of demand that we see.

其次，我們也有信心，憑藉我們的銷售勢頭，我們看到 G9 成為前 3 名之一，如果不是價格超過 30 萬元人民幣的前 2 名純電動 SUV 車型，這也表明我們看到的需求水平.

(foreign language) Actually, I was just want to check because on your official website, when we try to book G9 online actually they show up expected deliver time. I want to know whether this might change according to your order backlog? Because some the test actually, if you go to the China website can show the model waiting time. Sometimes it was 1 to 4 weeks, sometimes it's 12 weeks, actually indicated demand, waiting time is changing according to the order backlog. So I just want to know whether G9 waiting time in your website is changing according to your order backlog on real-time basis?

（外語）實際上，我只是想檢查一下，因為在你們的官方網站上，當我們嘗試在線預訂 G9 時，實際上他們顯示的是預計交貨時間。我想知道這是否會根據您的訂單積壓而改變？因為有些測試實際上，如果你去中國網站可以顯示模型等待時間。有時是1到4週，有時是12週，實際上表明需求，等待時間根據訂單積壓而變化。所以我只想知道你們網站的G9等待時間是否根據你們的訂單積壓實時變化？

Yes, Bin, I think you're right. The wait time is correlated to the real-time demand and also our production ramp-up capabilities. So what you see in the retail store reflects the various models real-time delivery timetable.

是的，賓，我認為你是對的。等待時間與實時需求以及我們的生產提升能力相關。因此，您在零售店看到的反映了各種型號的實時交貨時間表。

We have next question from the line of [WU Pingyue] with Citic Securities.

我們有來自中信證券[WU Pingyue]專線的下一個問題。

(foreign language) I will translate my question. And my question is about how to be demand-oriented? And specifically, the first one is what is the real customers' demand? And secondly, how do we find them? And what will we do in terms of our structure? Yes, that's my question.

（外語）我會翻譯我的問題。我的問題是如何以需求為導向？具體來說，第一個是真正的客戶需求是什麼？其次，我們如何找到它們？我們將在結構方面做什麼？是的，這是我的問題。

[Interpreted] All right, thank you for your question. Now there are 2 basic logics behind the industry of automaking, especially for our OEMs. The first one is to adopt the theory of bucket, which means that you have to identify your weakest links and also identify your strengths as well.

[已翻譯]好的，謝謝你的提問。現在汽車製造行業背後有兩個基本邏輯，尤其是我們整車廠。第一個是採用桶理論，這意味著你必須找出你最薄弱的環節，同時也要找出你的長處。

Now in the past several years, I think not just ourselves, but a lot of our peers have been doing their best to actually identify and also improve their weak links in terms of, for example, safety, product quality, service quality, and also cost control as well. We are also doing our best. We're striving to further perfect our service quality as well as our -- the design of our products, interior design as well as smart cockpit and other space design as well.

現在這幾年，我覺得不只是我們自己，還有很多同行都在盡最大的努力去真正找出和改進他們的薄弱環節，比如安全、產品質量、服務質量，還有成本控制也是如此。我們也在盡力而為。我們正在努力進一步完善我們的服務質量以及我們的產品設計、室內設計以及智能駕駛艙和其他空間設計。

So in the long term, one of the key competitive strengths is to really identify your goal, I'm talking about short-term as well as the long-term goal as well. You have to make sure that you understand the current focus, whether you aim for the short term or the long run?

所以從長遠來看，關鍵的競爭優勢之一就是真正確定你的目標，我說的是短期目標和長期目標。你必須確保你了解當前的重點，無論你的目標是短期還是長期？

And the second logic behind our auto-making industry is to define your customer portfolio or your targeted customer goal as well as your original target as well. Now for the past 2 to 3 years, XPeng has identified ourselves as a global company in the long run, and we really want to build scale as well. And that is why in the coming 3 years, well, based on which we have made our 3-year plan in the future. And I apologize that today, I won't be able to disclose further information regarding our future lineup or the market demand in regards to specific car models.

我們汽車製造行業背後的第二個邏輯是定義您的客戶組合或您的目標客戶目標以及您的原始目標。在過去的 2 到 3 年裡，從長遠來看，小鵬已經將自己定位為一家全球公司，我們也非常想建立規模。這就是為什麼在接下來的 3 年裡，嗯，基於我們制定未來 3 年計劃的原因。很抱歉，今天我無法透露有關我們未來陣容或特定車型市場需求的更多信息。

However, what I would like to mention is that in the future, autonomous driving or ADAS technology will be a standard configuration in our future product lineup with very consistent performance and very high-quality capabilities across our product. And also that's our long-term goal to -- based on which we will further enhance our technological capability and also do better in cost control so that we can deliver truly cost-competitive, high-quality products to our customers and that will be something that we embody in our next generations of products. Thank you.

但是，我想提的是，在未來，自動駕駛或ADAS技術將成為我們未來產品線的標準配置，並且在我們的產品中具有非常一致的性能和非常高質量的能力。這也是我們的長期目標——在此基礎上，我們將進一步提高我們的技術能力，並在成本控制方面做得更好，以便我們能夠為我們的客戶提供真正具有成本競爭力的高質量產品，這將是一件大事我們將體現在我們的下一代產品中。謝謝你。

Regarding the second part of your question, now our current organizational changes is mainly conducted to fulfill 2 goals or mainly focus on 2 areas. The first 1 is to do changes in terms of our product planning, product development and also to have a higher efficiency and effectiveness in implementing our technology and our future products and also to control -- well, first of all, to be able to identify true demand and to control our investment in the month that has less values. And that is why we have been invested so heavily in perfecting our, for example, electrical and electronic architecture, our whole vehicle architecture as well as our powertrain and other systems. With those systems and those integration, we will be able to truly offer an end-to-end solution that are able to deliver high-quality products to our customers. Thank you.

關於你問題的第二部分，我們目前的組織變革主要是為了實現2個目標或者說主要集中在2個方面。第一個是在我們的產品規劃、產品開發方面做出改變，並且在實施我們的技術和我們未來的產品方面具有更高的效率和有效性，並且還要控制——嗯，首先，能夠識別真正的需求，並控制我們在價值較低的月份的投資。這就是為什麼我們投入大量資金來完善我們的電氣和電子架構、我們的整車架構以及我們的動力總成和其他系統。通過這些系統和集成，我們將能夠真正提供端到端的解決方案，從而能夠為我們的客戶提供高質量的產品。謝謝你。

(foreign language) My second question is about P7. In 2023, we will have launched a new P7 with better configurations. And I think it would cause a rise in the down cost. And will we maintain relatively stable GP margin and drives our MSRP, or we want to boost our sales and maybe maintain our price or even lower our price?

（外語） 我的第二個問題是關於P7的。 2023年，我們將推出配置更好的全新P7。而且我認為這會導致羽絨成本上升。我們會保持相對穩定的 GP 利潤率並推動我們的廠商建議零售價，還是我們想提高銷量並可能維持我們的價格甚至降低我們的價格？

Yes, it's Brian again. On P7 next year, yes, we aim to launch the upgraded model to reflect the technology advancements, particularly the ones that you saw already on G9. So the P7 will have equally advanced autonomous driving architecture, will also have the faster charging capabilities and higher voltage capabilities as well as a number of other upgrades and fixes that will address the -- some of the shortcomings people have -- we received the feedback on.

是的，又是布賴恩。在明年的 P7 上，是的，我們的目標是推出升級模型以反映技術進步，尤其是你已經在 G9 上看到的那些。因此，P7 將擁有同樣先進的自動駕駛架構，還將擁有更快的充電能力和更高的電壓能力，以及許多其他升級和修復，這些將解決——人們的一些缺點——我們收到了反饋上。

Benefiting from the platform development actually, since a lot of these advancements are to sharing the modular and platform development, we actually are able to control the cost of the new P7 so to maintain the similar margins of the current version. And also the current -- some models of the current version P7 will continue to be selling along with the updated P7.

實際上受益於平台開發，因為很多這些進步都是為了共享模塊化和平台開發，我們實際上能夠控制新 P7 的成本，從而保持與當前版本相似的利潤率。還有當前——當前版本 P7 的某些型號將繼續與更新的 P7 一起銷售。

So it's actually I would say, the high end or upgraded version of the P7. So with that, I think we believe we can introduce a much more competitive P7 reflecting the top-of-the-line capabilities that we have in technology while maintaining the segment price and profitability on this series -- the P7 series.

所以實際上我會說，P7 的高端或升級版本。因此，我認為我們相信我們可以推出更具競爭力的 P7，反映我們在技術方面擁有的頂級能力，同時保持該系列（P7 系列）的細分市場價格和盈利能力。

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

由於沒有其他問題，現在我想將電話轉回給公司以作結束語。

Thank you once again for joining us today. If you have further questions, please feel free to contact XPeng's Investor Relations through the contact information provided on our website or the TPG Investor Relations. Thank you.

再次感謝您今天加入我們。如果您還有其他問題，請隨時通過我們網站上提供的聯繫信息或 TPG 投資者關係聯繫小鵬的投資者關係。謝謝你。

Thank you. This concludes today's conference call. You may disconnect your lines now. Thank you for your participation.

謝謝你。今天的電話會議到此結束。您現在可以斷開線路。感謝您的參與。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[此記錄中標記為 [已翻譯] 的部分由現場通話中的口譯員說出。]