Xpeng Inc (XPEV) 2022 Q4 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for the Fourth Quarter and Fiscal Year 2022 Earnings Conference Call for XPeng Inc. (Operator Instructions) Today's conference call is being recorded. I will now turn the conference 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。感謝您等待 XPeng Inc. 第四季度和 2022 財年收益電話會議（操作員說明）今天的電話會議正在錄製中。我現在將會議轉交給您的主持人，公司投資者關係負責人 Alex Xie 先生。請繼續，亞歷克斯。

Thank you. Hello, everyone, and welcome to XPeng's Fourth Quarter and Fiscal Year 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。大家好，歡迎來到小鵬汽車2022財年第四季度財報電話會議。我們的財務和經營業績今天早些時候由 Newswire services 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本人。

Management will begin with the 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 applicable law. Please also note that XPeng's earnings press release and this conference call includes 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 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披露未經審計的 GAAP 財務指標以及未經審計的非 GAAP 財務指標。 XPeng 的收益新聞稿包含未經審計的非 GAAP 措施與未經審計的 GAAP 措施的調節。

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] Hello, everyone. In 2022, XPeng delivered more than 120,000 electric vehicles, a year-over-year increase of 23% and ranking #10 among emerging EV makers in China as measured by vehicle insurance registration volume. Throughout the year, a challenging macro environment and increasingly intense competition in the NEV market placed pressure on our performance. Amidst this pressure, we saw an opportunity to become a first mover in tackling the challenges faced by industry and examine inhibitors to our business growth at the same time.

【解讀】大家好。 2022年，小鵬電動汽車交付量超過12萬輛，同比增長23%，按車險登記量排名中國新興電動汽車廠商第10名。全年，充滿挑戰的宏觀環境和日益激烈的新能源汽車市場競爭給我們的業績帶來了壓力。在這種壓力下，我們看到了成為應對行業挑戰的先行者的機會，同時檢查了阻礙我們業務增長的因素。

At the end of last year, I rapidly and decisively conducted a review of our strategies and implemented a series of significant adjustments to our organizational structure with a focus on improving areas of weakness. We have decided to start the change with ourselves and revamp XPeng's business with a start-up mindset on an elevated platform with new angles. I believe XPeng is approaching an inflection point. As we have clearly identified what our goals are and what our strengths and weaknesses are, we're now building recovery momentum in our sales and market share expansion.

去年底，我迅速果斷地對戰略進行了梳理，對組織架構進行了一系列重大調整，重點補短板。我們決定從自己開始改變，以創業的心態，在更高的平台上，以新的角度改造小鵬的業務。我相信小鵬正在接近拐點。由於我們已經清楚地確定了我們的目標是什麼以及我們的優勢和劣勢是什麼，我們現在正在為我們的銷售和市場份額擴張建立復蘇勢頭。

As we do this, we're placing a high premium on improving our organization and cost efficiency to fortify our strong foundation and better position our company for sustainable growth over the long term. Our overarching goal is to make XPeng a leader in the Chinese EV market and ultimately win the global EV race.

在我們這樣做的過程中，我們非常重視改善我們的組織和成本效率，以鞏固我們堅實的基礎並更好地定位我們的公司以實現長期的可持續增長。我們的總體目標是讓小鵬成為中國電動汽車市場的領導者，並最終贏得全球電動汽車競賽。

What excites me is that our strategic adjustment has induced meaningful results in the first quarter of this year, which gives me confidence that we will achieve sustainable and greater breakthroughs in the next few quarters. My first step to the organizational restructure started with changes and upgrades in our top leadership. Ms. Fengying Wang has joined our team as President of the company, bringing us more than 30 years of experience in the automotive industry.

令我興奮的是，我們的戰略調整在今年一季度取得了有意義的成果，這讓我有信心在未來幾個季度實現可持續的更大突破。我組織重組的第一步是對我們的最高領導層進行變動和升級。王鳳英女士作為公司總裁加入了我們的團隊，為我們帶來了超過30年的汽車行業經驗。

Fengying is taking full responsibility for our product planning and sales operations and is also in charge of our product platform management scheme. Her extensive industry experience, in-depth market insight and strong execution capabilities will help our product capture customer demand more accurately, while greatly improving efficiency in our sells and services division. At the same time, the adaptations to our management's organization are geared toward a flatter and more concentrated structure.

FengYing 全面負責我們的產品規劃和銷售運營，並負責我們的產品平台管理方案。她豐富的行業經驗、深入的市場洞察力和強大的執行能力將幫助我們的產品更準確地捕捉客戶需求，同時極大地提高我們銷售和服務部門的效率。同時，對我們管理層組織的調整是為了更扁平、更集中的結構。

In February, all design, R&D, production, supply chain and organizational management functions directly report to me. I believe that these shifts will significantly improve our planning capabilities and lift the efficiency of our decision-making and execution in the coming months. More importantly, these adjustments have effectively refreshed our execution and competitiveness. For the foreseeable future, I will remain focused on lifting the labor efficiency across our organization by multiple times so as to generate increased customer value with the same headcount and greatly reduced costs across a full range of processes through technology and management innovation.

2月，所有設計、研發、生產、供應鍊和組織管理職能直接向我匯報。我相信這些轉變將顯著提高我們的規劃能力，並在未來幾個月內提升我們的決策和執行效率。更重要的是，這些調整有效地刷新了我們的執行力和競爭力。在可預見的未來，我將繼續專注於將整個組織的勞動效率提升數倍，以通過技術和管理創新，以相同的員工人數創造更高的客戶價值，並大大降低全流程的成本。

With regard to our product planning and design, we concentrate on customer perceived value and product differentiation in our innovation. We'll make substantial changes to future products model configuration mix, whole vehicle modulized design and consistency in smart features. In terms of interior and exterior styling and design to meet XPeng customers' high standards for aesthetics, I am directly running the styling design division and building 3 teams that compete with each other to generate creative ideas.

在我們的產品規劃和設計方面，我們在創新中專注於客戶感知價值和產品差異化。我們將在未來產品車型配置組合、整車模塊化設計和智能功能一致性方面進行實質性改變。在滿足小鵬客戶高標準審美的內外飾造型設計方面，我直接運營造型設計事業部，組建3個團隊，相互競爭，產生創意。

These initiatives will continuously improve our interior and exterior styling and space design capabilities. At the same time, I incorporated the Net Promoter Score or NPS into the core performance indicators for a variety of business functions and required feedback collection on a monthly basis. The NPS performance evaluation will anchor the transformation of our product planning, design and development toward a customer-centric pathway. I believe our new products, our OTAs and new services to come will demonstrate substantial progress.

這些舉措將不斷提升我們的內外造型和空間設計能力。同時，我將 Net Promoter Score 或 NPS 納入了各種業務功能的核心績效指標，並要求每月收集反饋。 NPS 績效評估將推動我們的產品規劃、設計和開發向以客戶為中心的路徑轉變。我相信我們的新產品、OTA 和即將推出的新服務將取得實質性進展。

In terms of branding and marketing, we'll harness our core differentiation in autonomous driving to the full extent and enhance customer perception. We are broadening our addressable market, expanding our penetration from Tier 1 and Tier 2 cities to Tier 3, Tier 4 cities. So far, we have completed a preliminary merge between our branding and marketing teams and refreshed our overall strategy.

在品牌和營銷方面，我們將充分利用我們在自動駕駛方面的核心差異化，提升客戶感知。我們正在擴大我們的潛在市場，將我們的滲透率從一線和二線城市擴大到三線和四線城市。到目前為止，我們已經完成了品牌和營銷團隊的初步合併，並更新了我們的整體戰略。

This will help us improve the quality, effectiveness and flexibility of marketing activities in an effective way going forward, while significantly reducing marketing expenses. We have already flattened out the management hierarchy in our sales network. Furthermore, we are enhancing our network coverage, increasing competitive capabilities in our frontline sales staff and developing XPeng's powerful data-driven sales touch points in order to achieve significant strides in sales growth.

這將有助於我們以有效的方式提高營銷活動的質量、有效性和靈活性，同時顯著降低營銷費用。我們已經在我們的銷售網絡中拉平了管理層級。此外，我們正在加強我們的網絡覆蓋，提高我們一線銷售人員的競爭力，並開發小鵬強大的數據驅動的銷售觸點，以實現銷售的顯著增長。

On March 10, we officially launched the new P7i sports sedan, which is an upgraded version of our highly successful P7 model. Deliveries to customers also commenced in this month. I'm pleased to see our in-store traffic and test driving volume both hit new heights in recent months following the P7i's launch. This new product's smart features, styling, design and performance among other clear advantages in [livery] with similar products were well received among customers.

3 月 10 日，我們正式推出了新款 P7i 運動型轎車，它是我們大獲成功的 P7 車型的升級版。本月也開始向客戶交貨。我很高興看到我們的店內客流量和試駕量在 P7i 推出後的最近幾個月都達到了新的高度。這款新品的智能功能、造型、設計和性能等明顯優於同類產品，受到了客戶的一致好評。

Amid the market's prevailing weakness in new order intake, our results outperformed the market. Our new order intake in February increased 100% over the previous month. With the strong momentum of P7i orders, following its official launch, we expect to see a considerable month-on-month growth of total new order intake in March. This marks an initial success following our comprehensive transformation, which has also boosted our company morale.

在市場新訂單普遍疲軟的情況下，我們的業績跑贏大市。我們 2 月份的新訂單量比上個月增長了 100%。隨著P7i訂單的強勁勢頭，隨著P7i正式上市，我們預計3月份的新訂單總量環比將有可觀的增長。這標誌著我們全面轉型取得了初步的成功，同時也鼓舞了我們的士氣。

Our second new product model coming up this year, the G6 will make its debut at the Shanghai Auto Show. Its official launch and vehicle deliveries will occur around the end of the second quarter. The G6 will bring the most advanced electrification and smart mobility technologies due to 200,000 to 300,000 yuan priced NEV SUV markets. With unrivaled interior space, range, styling and interior decoration, we believe the G6 will become the top-selling model in its market segment.

今年第二款新品G6將在上海車展亮相。其正式發布和車輛交付將在第二季度末左右進行。面向20萬-30萬元新能源SUV市場，G6將帶來最先進的電氣化和智能出行技術。憑藉無與倫比的內部空間、範圍、造型和內飾，我們相信 G6 將成為其細分市場中最暢銷的車型。

Following the ramp-up of G6 mass production, we expect G6 monthly sales target to be 2x to 3x that of its P7 predecessor sales. In addition, in the second half of 2023, we'll launch a brand-new BEV 7-seat MPV. This new MPV model is designed to cater to customer cohorts that demand a larger interior room, while serving the needs of our family customers for a human-machine copilot.

隨著 G6 量產的加速，我們預計 G6 的月銷量目標將是其前身 P7 銷量的 2 至 3 倍。此外，2023年下半年，我們將推出全新純電動7座MPV。這款全新 MPV 車型旨在滿足需要更大內部空間的客戶群，同時滿足我們家庭客戶對人機副駕駛的需求。

Recently, ChatGPT 4.0 and other AI-based applications have created a buzz among hundreds of millions of users on the massive potential of generative AI models. I am also very excited about this. It represents a brand-new phase of artificial general intelligence, which on premise -- with on-premise deployment that does not rely on cloud end, which not only redefines the pathway to realize autonomous driving, but also increases its efficiency. Given this development, there is an even higher possibility that autonomous technology further advances from L4 to L5. We expect to incorporate GPT technology deeply into XPeng's business across the board to create groundbreaking user experiences and exceptional improvements to our operational efficiency.

最近，ChatGPT 4.0 和其他基於 AI 的應用程序在數億用戶中引起了對生成 AI 模型的巨大潛力的熱議。我對此也很興奮。它代表了通用人工智能的一個全新階段，即on-premise——on-premise部署，不依賴雲端，不僅重新定義了自動駕駛的實現路徑，而且提高了效率。如此發展，自動駕駛技術進一步從L4進階到L5的可能性更大。我們希望將 GPT 技術全面深入地融入小鵬汽車的業務，以創造突破性的用戶體驗並顯著提高我們的運營效率。

In late March, we began accelerating the OTA rollout of City NGP compatible with multiple models in several cities, including Guangzhou, Shenzhen and Shanghai. Through City NGPs OTA, we took the lead in mass producing the transformer-based BEV Time Series network or XNet in China, which achieved a milestone in deep learning algorithm development and application. In the second half of this year, XNGP, powered by XNet's deep learning algorithms, will no longer depend on a high-definition map.

3月下旬，我們開始在廣州、深圳、上海等多個城市加速OTA兼容多款城市NGP。通過City NGPs OTA，我們在國內率先量產了基於transformer的BEV Time Series網絡或XNet，實現了深度學習算法研發和應用的里程碑。今年下半年，基於XNet深度學習算法的XNGP將不再依賴高清地圖。

That said, XNGP will be supporting drivers on more urban roads across over 10 cities in China. Results from our testings showed the new version of XNGP outperformed peers actual on-road performance in the United States. This leads us to believe XPeng's autonomous technology and its customer adoption is approaching a pivotal turning point.

也就是說，XNGP 將在中國 10 多個城市的更多城市道路上為司機提供支持。我們的測試結果表明，新版 XNGP 在美國的實際道路性能優於同行。這讓我們相信小鵬的自主技術及其客戶採用正在接近一個關鍵的轉折點。

We have built notable leadership in smart technologies as well as customer adoption of smart technologies compared with peers. We're driving our technology road map and commercialization pathway to cross over the inflection point and reach an accelerated growth curve. While keeping high safety standards remains a top priority of our technology advancements will also be focused on rapid development to improve scenario coverage, user experience and software and hardware cost optimization. In terms of scenario coverage, we have expanded the usage of the advanced technology from highway scenarios into city scenarios, where ADAS are used at high frequency and even become an essential driving tool.

與同行相比，我們在智能技術以及客戶對智能技術的採用方面建立了顯著的領導地位。我們正在推動我們的技術路線圖和商業化路徑跨越拐點並達到加速增長曲線。雖然保持高安全標準仍然是我們技術進步的重中之重，但我們也將專注於快速開發，以提高場景覆蓋率、用戶體驗以及軟硬件成本優化。在場景覆蓋方面，我們將先進技術的使用範圍從高速公路場景擴展到城市場景，ADAS的使用頻率很高，甚至成為必不可少的駕駛工具。

Going forward, we'll strive to further broaden ADAS usage to more end-to-end driving scenarios, such as internal compound waste and nonpublic growth and expand our geographical coverage from 3 cities to more major cities nationwide beginning in the third quarter. In terms of user experience, we have achieved an important psychological barrier -- we have achieved an important psychological barrier for customers to use autonomous driving to relieve drivers, that is drivers can let the machine safely take the wheel, resting assured that they are acting only as a supervisor.

展望未來，我們將努力將 ADAS 的使用進一步擴大到更多端到端的駕駛場景，例如內部複合廢物和非公共增長，並從第三季度開始將我們的地理覆蓋範圍從 3 個城市擴大到全國更多主要城市。在用戶體驗方面，我們實現了一個重要的心理關卡——我們實現了客戶使用自動駕駛減輕司機壓力的一個重要心理關卡，就是司機可以讓機器安全地掌控方向盤，放心自己在行動只作為監督者。

Looking ahead, we expect that through continuous OTA upgrades, XNGP's driving skills will escalate every year. And in 2 to 3 years, reach a level that is equivalent to a human driver with 3 years of driving experience. We also expect that the number of manual takeovers per 100 kilometers will be reduced to 1 or fewer. Regarding cost efficiency, we plan to cut XNGP's bond cost significantly next year and adjust our sales model from one that bundles the sales of software and hardware to one that splits the sales of software and hardware, which is going to enable autonomous driving on all of our new vehicles and allow more customers to use the latest autonomous driving capabilities.

展望未來，我們預計通過不斷的OTA升級，XNGP的駕駛技術將逐年升級。並在 2 到 3 年內，達到相當於具有 3 年駕駛經驗的人類駕駛員的水平。我們還預計百公里人工接管次數將減少到1次或更少。在成本效率方面，我們計劃明年大幅降低新金幣的債券成本，並將我們的銷售模式從軟硬件捆綁銷售調整為軟硬件拆分銷售，這將實現自動駕駛。我們的新車，讓更多的客戶使用最新的自動駕駛功能。

In pursuit of breakthroughs in the aforementioned 3 realms will bring great value to our customers and build our competitive edge in technologies, delivering long-term sustainable revenue growth at scale and with improved margin contribution.

追求上述三個領域的突破將為我們的客戶帶來巨大價值，並建立我們在技術方面的競爭優勢，實現長期可持續的規模收入增長，並提高利潤率貢獻。

It has been said that the past 5-year period was the golden age for new energy vehicles. I believe the next 5-year period will be the golden age for autonomous driving. During the 5 years to come, XPeng's highly advanced autonomous driving technology and our efforts in optimizing our organization and making up for our weaknesses will help XPeng accelerate our ability to gain top market share.

有人說，過去5年是新能源汽車的黃金時代。我相信未來5年將是自動駕駛的黃金時代。未來5年，小鵬汽車高度領先的自動駕駛技術，以及我們優化組織、補短板的努力，將幫助小鵬汽車加速搶占第一市場份額。

In the face of fierce competition, in addition to our leadership in autonomous driving and aesthetic design, while greatly improving our product planning abilities, marketing efficiency and organizational capabilities, I believe more powerful cost control will be the core competitive edge that will enable XPeng to secure its leadership in EV market. We'll advance the platform-based approach and technology innovation to propel our cost reduction strategy.

面對激烈的競爭，除了我們在自動駕駛和美學設計方面的領先優勢，同時大幅提升我們的產品策劃能力、營銷效率和組織能力，相信更強大的成本控制將是小鵬汽車的核心競爭力。確保其在電動汽車市場的領導地位。我們將推進基於平台的方法和技術創新，以推進我們的成本削減戰略。

Entering 2023, we're applying a full platform engineering approach for our BEV vehicle platform, electrical and electronic architecture, powertrain system and ADAS, software and hardware development. This signals that we are entering a new phase of car making in a unified system. In this way, we're able to develop products with superior product quality and customer experience at a faster pace and at a lower cost.

進入 2023 年，我們將對我們的 BEV 車輛平台、電氣和電子架構、動力總成系統和 ADAS、軟件和硬件開發應用全平台工程方法。這標誌著我們正在進入一個統一系統造車的新階段。通過這種方式，我們能夠以更快的速度和更低的成本開發出具有卓越產品質量和客戶體驗的產品。

In the past, our R&D strength were primarily manifested by our leading product performance. In the future, our R&D strengths will be underlined by maintaining the leading performance, while achieving remarkable cost reductions. We have mapped out our strategic execution road map with associated cost reduction, including an over 50% decrease for autonomous driving costs and at about 25% decrease for vehicle hardware costs, including powertrain, over the 2023 to 2024 period by means such as technology innovation and optimized configurations. I'm pleased to see that the design technology, R&D, supply chain and manufacturing teams are now working in a synergistic way to make our efforts and products more competitive through innovation.

過去，我們的研發實力主要體現在領先的產品性能上。未來，我們的研發實力將通過保持領先的性能，同時實現顯著的成本降低來突顯。我們已經制定了戰略執行路線圖以及相關的成本削減，包括通過技術創新等方式在 2023 年至 2024 年期間將自動駕駛成本降低 50% 以上，包括動力總成在內的車輛硬件成本降低約 25%和優化配置。我很高興看到設計技術、研發、供應鍊和製造團隊現在以協同的方式工作，通過創新使我們的努力和產品更具競爭力。

In terms of cash liquidity, our cash on hand at the end of 2022 amounted to over RMB 38 billion, as we have nearly completed our investment in our 2 manufacturing basis over the past few years, including this year, our CapEx will decline substantially. We have also established 3 powerful vehicle platforms that can support a series of new model launches over the next 3 years. Our R&D will further concentrate on initiatives that best correspond with long-term trends and further differentiate our products in terms of customer experience and cost.

在現金流動性方面，我們在2022年底的手頭現金超過380億元人民幣，因為我們在過去幾年包括今年在內幾乎完成了對我們2個製造基地的投資，我們的資本支出將大幅下降。我們還建立了 3 個強大的車輛平台，可以支持未來 3 年一系列新車型的發布。我們的研發將進一步專注於最符合長期趨勢的舉措，並在客戶體驗和成本方面進一步區分我們的產品。

We will also pursue improvement in our operating efficiency throughout the entire process. For example, within our sales operations, we strive to improve same-store efficiency by optimizing our store network. We believe these cost optimization efforts will start to deliver material results beginning in the coming several months, including in the second half of this year.

我們還將在整個過程中追求運營效率的提高。例如，在我們的銷售業務中，我們努力通過優化門店網絡來提高同店效率。我們相信，這些成本優化工作將在未來幾個月開始產生實質性成果，包括今年下半年。

It has always been my intention to build a successful company that can grow in scale instead of a small company in a niche market or just any generic company out there. Expanding our scale and market share to achieve economy of scale in both software and hardware is the primary goal in our long-term strategy. Although the product and management adjustment cycle in the automotive industry is more difficult than other industries and takes a longer period of time, we're still willing to sacrifice the short-term sales and more patiently pursue greater victories in the medium and long term.

我一直打算建立一家可以擴大規模的成功公司，而不是一家利基市場中的小公司或任何一家普通公司。擴大我們的規模和市場份額以實現軟件和硬件的規模經濟是我們長期戰略的首要目標。雖然汽車行業的產品和管理調整週期比其他行業更艱難，需要更長的時間，但我們仍然願意犧牲短期銷售，更耐心地追求中長期更大的勝利。

Excitingly, as we rapidly implement adjustments and changes to our management, in addition to instituting a host of upgrades and iterations in our product portfolio and marketing capabilities, we have seen encouraging changes and positive results. I'm firmly convinced that beginning in the third quarter of this year, XPeng's monthly sales number will achieve significant growth, both sequentially and year-over-year as well as be much higher than the industry's average growth rate.

令人欣喜的是，隨著我們管理的快速調整和變革，除了產品組合和營銷能力的大量升級和迭代，我們也看到了令人鼓舞的變化和積極的成果。我堅信，從今年第三季度開始，小鵬汽車的月銷量將實現環比和同比的顯著增長，並遠高於行業平均增長率。

I would reiterate that our current focus is on building and improving our capabilities in organization, product design, marketing and cost control. Continuous efforts in refining, management and accelerated new product launches in the era of autonomous driving will lead us to the next level of exponential growth. We'll continue to strive for this goal. Lastly, we expect our total vehicle deliveries to be between 18,000 and 19,000 units in the first quarter of 2023 and revenue to be between RMB 4 billion and RMB 4.2 billion.

我要重申，我們目前的重點是建立和提高我們在組織、產品設計、營銷和成本控制方面的能力。在自動駕駛時代持續做精、做管理、加速新品上市，將引領我們進入下一個指數級增長階段。我們會繼續為這個目標而努力。最後，我們預計 2023 年第一季度我們的汽車總交付量將在 18,000 至 19,000 輛之間，收入將在 40 億元至 42 億元人民幣之間。

Thank you, everyone. I will now hand over to our Finance VP, Dennis Lu.

謝謝大家。我現在將交給我們的財務副總裁 Dennis Lu。

Thank you, Mr. He, and hello, everyone. Now I would like to provide a brief overview of our financial results for the first 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 年第一季度的財務業績。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 5.1 billion for the fourth quarter of 2022, a decrease of 39.9% year-over-year and a decrease of 24.7% quarter-over-quarter. Revenues from vehicle sales were RMB 4.7 billion for the fourth quarter of 2022, a decrease of 43.1% year-over-year and a decrease of 25.3% from the last quarter. The year-over-year decrease was mainly attributable to lower vehicle deliveries for the G3 and P7, while the quarter-over-quarter decrease was mainly due to lower vehicle deliveries for the P5 and P7 with partially offset by the newly-launched G9.

2022 年第四季度，我們的總收入為人民幣 51 億元，同比下降 39.9%，環比下降 24.7%。 2022年第四季度汽車銷售收入為人民幣47億元，同比下降43.1%，環比下降25.3%。同比下降主要是由於 G3 和 P7 的車輛交付量下降，而環比下降主要是由於 P5 和 P7 的車輛交付量下降，但部分被新推出的 G9 所抵消。

Gross margin was 8.7% for the fourth quarter of 2022 compared with 12% for the same period 2021 and 13.5% for the last quarter. Vehicle margin was 5.7% for the fourth quarter of 2022 compared with 10.9% for the same period of 2021 and 11.6% for the last quarter. The year-over-year and quarter-over-quarter decreases were mainly explained by the increased sales promotion.

2022 年第四季度的毛利率為 8.7%，而 2021 年同期為 12%，上一季度為 13.5%。 2022 年第四季度汽車利潤率為 5.7%，而 2021 年同期為 10.9%，上一季度為 11.6%。同比和環比下降主要是由於促銷力度加大所致。

R&D expenses were RMB 1.2 billion for the fourth quarter of 2022, a decrease of 15.3% year-over-year and a decrease of 17.9% quarter-over-quarter. The year-over-year and quarter-over-quarter decreases mainly in line with timing and progress on new vehicle programs.

2022年第四季度研發費用為人民幣12億元，同比下降15.3%，環比下降17.9%。同比和環比下降主要與新車項目的時間安排和進展一致。

SG&A expenses were RMB 1.8 billion for the fourth quarter of 2022, a decrease of 12.9% year-over-year and an increase of 8% quarter-over-quarter. The year-over-year decrease was mainly due to the decrease of the commission paid to the franchise stores associated with the lower vehicle deliveries. The quarter-over-quarter increase is mainly attributable to higher marketing, promotional and advertising expense to support vehicle sales. As a result of the foregoing loss from operations was RMB 2.5 billion for the fourth quarter of 2022 compared with RMB 2.4 billion for the same period 2021 and RMB 2.2 billion for the last quarter.

2022 年第四季度的 SG&A 費用為人民幣 18 億元，同比下降 12.9%，環比增長 8%。同比下降主要是由於車輛交付量減少，支付給加盟店的佣金減少。環比增長的主要原因是為支持汽車銷售而增加的營銷、促銷和廣告費用。由於上述原因，2022 年第四季度的運營虧損為人民幣 25 億元，而 2021 年同期為人民幣 24 億元，上一季度為人民幣 22 億元。

Net loss was RMB 2.4 billion for the fourth quarter compared with RMB 1.3 billion for the same period a year ago and RMB 2.4 billion for the last quarter. As of December 31, 2022, our company had cash, cash equivalents, restricted cash, short-term deposits, short-term investments and time deposits in total RMB 38.3 billion.

第四季度淨虧損為人民幣 24 億元，去年同期為人民幣 13 億元，上一季度為人民幣 24 億元。截至2022年12月31日，本公司持有現金、現金等價物、受限制現金、短期存款、短期投資和定期存款合計人民幣383億元。

To be mindful for the length of our earnings call, I will encourage listeners to refer to our earnings press release for further details of our financial results for the fourth quarter and full year 2022.

請注意我們財報電話會議的時長，我鼓勵聽眾參考我們的財報新聞稿，了解我們 2022 年第四季度和全年財務業績的更多詳情。

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) Our first question will come from Tim Hsiao of Morgan Stanley.

（操作員說明）我們的第一個問題將來自摩根士丹利的 Tim Hsiao。

(foreign language) So my first question is about the competition because the market with pricing -- price segment of RMB 200,000 to RMB 350,000 or USD 30,000 to USD 50,000 is (inaudible) on hold as a key volume driver. However, if you look at what happened over the past few quarters, I think Tesla, EV start-up, BYD and even traditional carmakers, EV brands are getting more aggressive in this pricing segment.

（外語）所以我的第一個問題是關於競爭的，因為定價市場 - 200,000 元人民幣至 350,000 元人民幣或 30,000 美元至 50,000 美元的價格段（聽不清）作為關鍵的銷量驅動因素被擱置。然而，如果你看看過去幾個季度發生的事情，我認為特斯拉、電動汽車初創公司、比亞迪甚至傳統汽車製造商、電動汽車品牌在這個定價領域都變得更加積極。

And I think yesterday, BYD just upgraded its HAN EV and TANG DM-i to focus on the 200,000-plus market, and [Tesla] might consider having another round the price [cuts]. So how do you think about the competitive landscape in this pricing segment? And how could XPeng make sure that its upcoming models, including G6 and model next year, could stand out in the crowd of competitors, where we'd be more pricing aggressive with more meaningful cost down in the following quarters? So that's my first question.

而且我認為昨天，比亞迪剛剛升級了其 HAN EV 和 TANG DM-i 以專注於 20 萬以上的市場，並且 [Tesla] 可能會考慮進行另一輪降價 [cuts]。那麼您如何看待這個定價領域的競爭格局？小鵬汽車如何確保其即將推出的車型，包括 G6 和明年的車型，能夠在競爭者中脫穎而出，我們將在接下來的幾個季度中以更積極的定價和更有意義的成本下降？這是我的第一個問題。

[Interpreted] Thank you for your question. It's a very good one. Basically, we expect the market to experience a series of price cuts by different OEMs in the coming couple of years because of the very intensified competition or competitive landscape in the current market, especially for traditional OCE carmakers because we expect to see a lot of oversupply to the capacity in the market as well as some reduction in the raw material pricing, which will be a good foundation for a different price cut to be expected in the near future. And as a result, different brands and different players in the market will launch a series of price cuts in order to expand their market share.

[已翻譯] 謝謝你的提問。這是一個非常好的。基本上，由於當前市場的競爭或競爭格局非常激烈，我們預計未來幾年市場將經歷不同 OEM 的一系列降價，特別是對於傳統的 OCE 汽車製造商，因為我們預計會出現大量供過於求市場容量以及原材料價格的一些降低，這將為預期在不久的將來進行不同的降價奠定良好的基礎。因此，市場上不同的品牌和不同的參與者將推出一系列的降價措施，以擴大他們的市場份額。

Now as I mentioned in the prepared remarks that the current first priority for XPeng is to optimize our organization as well as to expand our scale and in addition to that, we also will continue to improve our autonomous driving capabilities as well as optimizing our design language. Now next to it, we also will prioritize the cost optimization. In the past, we mainly focused on the development of the functionalities and the overall performance of our products.

現在我在準備好的發言中提到，小鵬目前的首要任務是優化我們的組織和擴大我們的規模，除此之外，我們還將繼續提高我們的自動駕駛能力和優化我們的設計語言.接下來，我們還將優先考慮成本優化。過去，我們主要關注產品的功能和整體性能的開發。

Now when we expand our price -- targeted price range to cover more than RMB 250,000 and RMB 300,000 to actually a little bit lower to RMB 200,000, we realized there is actually a lot of room for improvement in terms of cost reduction, for example, just to reduce our overall bond cost in the R&D sector and also to integrate our software, I mean in aspects of our software and hardware design as well.

現在，當我們擴大我們的價格——目標價格範圍涵蓋超過人民幣 25 萬元和人民幣 30 萬元，實際上略低於人民幣 20 萬元時，我們意識到在降低成本方面實際上還有很大的改進空間，例如，只是為了降低我們在研發部門的整體債券成本，並整合我們的軟件，我的意思是在我們的軟件和硬件設計方面也是如此。

That is why in the coming future, we will, first of all, prioritize the scale development as well as improving our autonomous technology and overall product quality and performance, while improving our cost structure in many new areas, especially to be reflected in our newly launched products to be expected. And also we will expect some strategic price reduction in the near future as well, so as to expand our market share and promote deliveries.

所以在未來，我們會首先把規模化發展放在首位，提升自主技術和整體產品質量和性能，同時在很多新的領域改善我們的成本結構，特別是體現在我們的新產品上。推出的產品值得期待。此外，我們預計在不久的將來也會有一些戰略性降價，以擴大我們的市場份額並促進交付。

Looking back in 2017, there were about 300 car making start-ups and 70 passenger vehicle makers in the market. By now, there's only 50 players left. And in 5 years' time, maybe there will be less than 25 and in 10 years' time, less than 10, which means that by that time, the annual deliveries of each single carmakers will not be 100,000, 0.5 million or 700,000, it needs to be at least 7 million in order to survive, which means that we need to have a solid foundation in terms of our hardware and software capabilities as well as our cost control capabilities as well in order to just survive in the market and the fears and intensified competition, not letting alone becoming the winner in the competition. And that is why in the coming 5 to 10 years, our priority will be to solidify our leadership in our technological R&D capability as well as our cost control.

回顧2017年，市場上約有300家造車初創企業和70家乘用車製造商。到現在，只剩下50名玩家了。 5年後，可能會少於25輛，10年後，可能會少於10輛，這意味著到那時，每個汽車製造商的年交付量將不是10萬輛、50萬輛或70萬輛，它至少需要700萬才能生存，這意味著我們需要在硬件和軟件能力以及成本控制能力方面有堅實的基礎，才能在市場和恐懼中生存並且競爭愈演愈烈，更不用說成為比賽的贏家了。這就是為什麼在未來 5 到 10 年，我們的首要任務是鞏固我們在技術研發能力和成本控制方面的領先地位。

(foreign language) So my second question is about the sales network. Could you please help to update us the XPeng's channel strategy this year? While Tier 1, 2 cities that we'll see that's strategically critical, the growth in the lower-tier cities in China was going to outpace the higher-tier cities and become the key growth driver. So quite a few EV makers are targeting to pantry into the lower-tier cities. So how is XPeng going to grow its presence in the lower-tier cities? And in the meantime, we had the company change its hybrid business model, consisting of the direct sales and the dealership, will be there any material changes in upcoming quarters? That's my second question.

（外語）那麼我的第二個問題是關於銷售網絡的。能不能幫我們更新一下今年小鵬的渠道策略？雖然我們將看到的 1、2 線城市在戰略上至關重要，但中國低線城市的增長將超過高線城市，成為主要的增長動力。因此，不少電動汽車製造商的目標是進入低線城市。那麼小鵬汽車將如何在低線城市擴大影響力呢？與此同時，我們讓公司改變了其混合業務模式，包括直銷和經銷商，未來幾個季度會有任何重大變化嗎？這是我的第二個問題。

[Interpreted] Our newly recruited senior management member, Ms. Wang Fengying, experience than me in terms of channel distribution. And since -- 1 month after her enrollment, she already had numerous discussions regarding our distribution channel to now our network development. So for this year, we have several strategies in place already. First of all, we will maintain our current model of having directly run and franchise stores in order to promote ourselves and distribution. However, the mix from franchise stores will increase.

【解讀】我們新入職的高級管理人員王鳳英女士在渠道分銷方面比我有經驗。自從 - 入學 1 個月後，她就我們的分銷渠道到現在的網絡發展進行了多次討論。所以今年，我們已經制定了多項戰略。首先，我們會維持目前的直營店和加盟店的模式，以促進我們自己和分銷。然而，特許經營店的組合將會增加。

And the second point is that we have and we will continue to flatten out our management structure so as to improve the overall service quality as well as to improve the profitability and efficiency of our distribution channels. And the third point is that we will actually expand the functionality of those kind of channels to include not only sales purposes or functionality, but also to increase [force] function as well, so as to provide a more comprehensive set of services to our customers.

第二點是我們已經並將繼續扁平化我們的管理結構，以提高整體服務質量以及提高我們分銷渠道的盈利能力和效率。第三點是我們實際上會擴展這些渠道的功能，不僅包括銷售目的或功能，還包括增加[力]功能，以便為我們的客戶提供更全面的服務。 .

Now one of our upcoming next steps, which I can review right now, is that we don't believe that it would be very effective to have a large number of small distributors or small channels, rather we prefer to prioritize the development of quality channels to improve our overall service and distribution efficiency.

現在我們即將採取的下一步行動之一，我現在可以回顧一下，我們認為擁有大量小型分銷商或小型渠道不會非常有效，我們更願意優先發展優質渠道以提高我們的整體服務和分銷效率。

Regarding the second part of your question, which is the channel network in Tier 3, Tier 4 cities. First of all, we will work with our partners to expand the channel and network. In addition to that, we also design and curate appropriate products suitable for Tier 3, Tier 4 cities, and we do have some facelift products upcoming to be expected.

關於你問題的第二部分，就是三四線城市的渠道網絡。首先，我們將與我們的合作夥伴一起擴大渠道和網絡。除此之外，我們還設計和策劃了適合三四線城市的產品，我們確實有一些改款產品即將推出。

The next question comes from Paul Gong of UBS.

下一個問題來自瑞銀集團的Paul Gong。

(foreign language) My first question is regarding on the arrival of Ms. Wang Fengying's new role as President. What has been our biggest criticism on the XPeng Motor for the current situation? And what is her plan to change it?

(外語) 第一個問題是關於王鳳英女士新任行長的到來。對於目前的情況，我們對小鵬汽車最大的批評是什麼？她改變它的計劃是什麼？

[Interpreted] No. This is a very interesting question. Ms. Wang has been with us -- has arrived for more than 1.5 months. Her biggest criticism for the company is twofold. First one is on the planning side and the other is on sales and marketing. I mean, this is definitely a very positive time because it is better to see the problems and have solutions, rather than being fully complacent without seeing the root cause of the problems. And so right now, we are in full force to correct some of the mistakes that we previously had. And personally, I feel a lot of pressure from Ms. Wang because she is working 7 days a week. And right now, we are all following this trend of being very, very diligent at work. So that is a lot of pressure on me.

[解釋] 不。這是一個非常有趣的問題。王女士已經和我們一起——來了1.5個多月了。她對公司最大的批評是雙重的。第一個是在規劃方面，另一個是在銷售和營銷方面。我的意思是，這絕對是一個非常積極的時期，因為最好是看到問題並找到解決方案，而不是在沒有看到問題的根本原因的情況下完全自滿。所以現在，我們正在全力糾正我們以前犯的一些錯誤。就我個人而言，我從王女士那裡感受到了很大的壓力，因為她每週工作 7 天。現在，我們都在追隨這種工作非常非常勤奮的趨勢。所以這對我來說壓力很大。

(foreign language) So my second question is regarding your interesting comments on the GPT supplication into the smart vehicles. Can you give us some kind of some example of how do you imagine such kind of technologies to be used in the long term in the smart vehicles? And if so, should we pay for some technology royalty or kind of technology servicing fee on that?

（外語）所以我的第二個問題是關於您對 GPT 申請進入智能汽車的有趣評論。您能否給我們舉一些例子，說明您如何看待這種技術在智能汽車中的長期使用？如果是這樣，我們是否應該為此支付一些技術使用費或某種技術服務費？

[Interpreted] Thank you for your question. Now definitely, ChatGPT and related AI technologies will provide a lot of values for our midterm and long-term development. Now when we look at autonomous driving technology or capabilities, the lower level or medium level kind of autonomous driving technology always face the conundrum of being not smart enough as human drivers because cars definitely can be very capable as a driving vehicle.

[已翻譯] 謝謝你的提問。現在可以肯定的是，ChatGPT 以及相關的AI 技術將會為我們的中長期發展提供很多的價值。現在，當我們看自動駕駛技術或能力時，較低級別或中等級別的自動駕駛技術總是面臨著作為人類駕駛員不夠聰明的難題，因為汽車作為駕駛車輛肯定是非常有能力的。

But in terms of decision making, a lot of it comes down to the intelligence level. So the fact that the ChatGPT AI technology allows on-premise deployment as well as cloud and connection will actually be a catalyst in terms of the development of autonomous driving technology all the way from Level 4 to Level 5.

但就決策而言，很多都歸結為情報層面。因此，ChatGPT AI 技術允許本地部署以及雲端和連接這一事實實際上將成為自動駕駛技術從 4 級到 5 級發展的催化劑。

Now in terms of the potential fee or cost of adopting the technology, first of all, we will look at the near-term application in the software side, which will be much sooner than its application on the hardware side because it's application in the hardware, we're talking about integrating the software together with the hardware, which is quite a different story from just applying it on the software side.

現在就採用該技術的潛在費用或成本而言，首先，我們將看在軟件方面的近期應用，這將比在硬件方面的應用要快得多，因為它是在硬件方面的應用，我們談論的是將軟件與硬件集成在一起，這與僅將其應用於軟件方面是完全不同的故事。

And we mainly will look at some of the key areas, for example, education and also document processing, language processing, et cetera. And definitely, we expect to see a lot of variations of related ChatGPT technology in China, and we will select the right partners for XPeng in the future according to our developmental pathway. And right now, we are in conversation actually with a lot of potential partners. And the -- in regards to the potential cost, we believe it's quite minimal.

我們主要看一些關鍵領域，例如教育，還有文檔處理、語言處理等。當然，我們期待在中國看到很多相關ChatGPT技術的變化，未來我們會根據我們的發展路徑為小鵬選擇合適的合作夥伴。而現在，我們實際上正在與許多潛在合作夥伴進行對話。而且 - 關於潛在成本，我們認為它非常小。

Next question comes from Bin Wang of Credit Suisse.

下一個問題來自瑞士信貸的王斌。

(foreign language) Now I actually have got 2 questions. Number one is about your cost reduction. You mentioned about 25% cut in the vehicle component cost, which is very amazing. Can you give me more details about how you can achieve that? For example, do you use the integrated die casting to the cost of cutting? This is very important. The second question is about G9. G9 actually has been doing not good recently. But previously, you were seeing kind of G9 volume will be even higher than P7. How you can maintain G9 sales for momentum and what's your maintenance status for G9?

（外語）現在我實際上有兩個問題。第一是關於降低成本。您提到車輛零部件成本降低了大約 25%，這非常驚人。你能給我更多關於如何實現這一目標的細節嗎？例如，您是否使用集成壓鑄來削減成本？這個非常重要。第二個問題是關於G9。 G9其實最近過得不好。但之前，你看到的是 G9 的體積會比 P7 還要高。您如何保持G9的銷售勢頭以及G9的維護狀態如何？

[Interpreted] Yes. Specifically speaking, the cost restructuring target of 25% is not amazing, per se. But it definitely indicates that in the past, we definitely still -- we're not doing good enough. There's still a lot of room improvement in terms of cost reduction. And right now, we are seeing multiple ways to actually reduce our cost of manufacturing and overall production. For example, as you mentioned, we have some new technologies in our hardware, the integrated stamping techniques that can help us to reduce the cost of manufacturing the whole car. And also in terms of pack of the whole vehicle as well, we have some viable methodology that can help us to reduce the cost by about 50% to 60%.

[解釋]是的。具體來說，25%的成本重組目標本身並不驚人。但這絕對錶明，在過去，我們肯定仍然——我們做得不夠好。在降低成本方面仍有很大的改進空間。現在，我們看到有多種方法可以真正降低製造和整體生產成本。比如你提到的，我們在硬件方面有一些新技術，集成沖壓技術，可以幫助我們降低整車的製造成本。而且在整車包方面，我們有一些可行的方法，可以幫助我們降低大約50%到60%的成本。

In addition to that, in terms of the overall [chip] and battery, we are now employing or adopting the whole vehicle platform engineering technique that can also help us to drive down costs. So as a result, there is a mix of methods and a rate of ways for us to reduce cost in terms of our powertrain, overall whole vehicle platform, engineering, architecture, scale and also different configuration as well. So overall in the coming period, in the second half of the year, first half of next year and also the second half of next year, we have a set of different developmental stages goals in terms of our cost reduction and the effect can be expected.

除此之外，在整體[芯片]和電池方面，我們現在正在採用或採用整車平台工程技術，也可以幫助我們降低成本。因此，我們可以採用多種方法和多種方式來降低動力系統、整車平台、工程、架構、規模以及不同配置方面的成本。所以整體來說未來一段時間，下半年，明年上半年，還有下半年，我們在降低成本方面有一套不同的發展階段目標，效果是可以預期的.

Now in regards to the deliveries of G9, definitely in the price range of RMB 300,000, among all the BEV rivals, there has been a lot of challenges in pushing itself. However, in the near future, we do have several moves in place to boost sales deliveries. The first one is that we're ramping up several configurations and the second one is by implementing the XNGP functions on G9 as well as on P7i, which we believe will greatly enhance the attractiveness of G9 as a product.

現在G9的交付量，肯定在30萬這個價位區間，在所有BEV的競爭對手中，已經有很多挑戰了。然而，在不久的將來，我們確實採取了幾項措施來促進銷售交付。第一個是我們正在提升幾個配置，第二個是通過在 G9 和 P7i 上實現 XNGP 功能，我們相信這將大大增強 G9 作為產品的吸引力。

In addition to that, we are now gathering a lot of positive feedback from our customers, who have received their G9 in terms of the product quality and overall performance. In addition to that, we believe that the launches of P7i as well as G6 will boost foot traffic in our stores as well as a encourage interest in G9 as well as part of the product line.

除此之外，我們現在還從收到 G9 的客戶那裡收集了很多關於產品質量和整體性能的積極反饋。除此之外，我們相信 P7i 和 G6 的推出將增加我們商店的客流量，並激發人們對 G9 和部分產品線的興趣。

In addition to that, we are now already seeing reinvigorated sales or deliveries in March compared to the months before, which was February in the market, and so we are still very confident that we can -- we are on the right trajectory to meet our delivery target for G9 for the year.

除此之外，我們現在已經看到 3 月份的銷售或交付與前幾個月相比有所恢復，這是市場上的 2 月份，因此我們仍然非常有信心我們可以——我們正走在正確的軌道上，以實現我們的目標G9年度交付目標。

The next question comes from Nick Lai of JPMorgan.

下一個問題來自摩根大通的 Nick Lai。

(foreign language)

（外語）

[Interpreted] I think what you mentioned in your questions might be viable 15 years ago, which was that you can basically sell anything as long as they are cheap enough. However, it might not work today, we still believe that product quality speaks volume. So for this year, in terms of our overall marketing and pricing strategy, we have set up different aggressive goals for, for example, the second half of the first quarter as well as for the upcoming several quarters of the year. So we definitely expect a lot of reinvigorated deliveries or sales outcome for the rest of the year.

[解讀]我覺得你提的問題在15年前可能是可行的，就是基本上什麼都可以賣，只要夠便宜。然而，今天它可能行不通，我們仍然相信產品質量決定數量。因此，今年，就我們的整體營銷和定價策略而言，我們為第一季度下半年以及今年即將到來的幾個季度製定了不同的進取目標。因此，我們肯定希望在今年餘下的時間裡有很多重新煥發活力的交付或銷售結果。

(foreign language)

（外語）

[Interpreted] Now in regards to battery supply. First of all, in January last year, we saw this pricing inflation that happens in the industry, which really encouraged the development of hybrid vehicles in the market, but rather much -- but heard a lot of development in the EV sector. However, this year, we are happy to see that the pricing of barriers have come down. And this newly launched price war in the industry, led by a lot of very makers, especially the leaders, it's definitely a very good signs or very beneficial for the development of BEV and can help us to improve our pricing competitiveness as well.

[解釋]現在關於電池供應。首先，去年 1 月，我們看到了行業中發生的這種定價通脹，這確實鼓勵了混合動力汽車在市場上的發展，但相當多——但聽到了電動汽車領域的很多發展。然而，今年，我們很高興看到壁壘定價有所下降。而這個行業新發起的價格戰，由很多非常大的廠商，尤其是領導者牽頭，對於純電動汽車的發展來說，絕對是一個非常好的跡象，或者是非常有利的，也可以幫助我們提高價格競爭力。

Now so far, based on our conversation with our battery suppliers, we are confident that the price reduction -- the degree of the price reduction by XPeng supplied by our supplier partners will be more aggressive than the industry average. And that's just from the outside. Looking internally, we also have discovered different ways to optimize our cost structure to reduce our costs in terms of the powertrain, batteries as well as our [parts] by, for example, integration as well -- integrating some of the parts as well as replacing traditional NCM or NCA barriers with LFP batteries, also by extending the usage or the driving range that it can support per battery by about 10% to 20%. All of these ways can help us to further drive down our battery cost and you can actually see the effectiveness or outcome in the coming 12 months.

到目前為止，根據我們與電池供應商的對話，我們有信心降價——我們供應商合作夥伴供應的小鵬汽車降價幅度將超過行業平均水平。那隻是從外面看的。從內部來看，我們還發現了不同的方法來優化我們的成本結構，以降低我們在動力總成、電池以及我們的 [零件] 方面的成本，例如，也通過整合——整合一些零件以及用 LFP 電池取代傳統的 NCM 或 NCA 屏障，還可以將每個電池可支持的使用或行駛里程延長約 10% 至 20%。所有這些方法都可以幫助我們進一步降低電池成本，您可以在未來 12 個月內實際看到效果或結果。

The next question comes from Ming Lee of Bank of America.

下一個問題來自美國銀行的李明。

(foreign language) So my first question is regarding product competitiveness of G6 because the management team just mentioned they expect G6, in the future, the stabilized monthly sales could be 2x to 3x of P7, but -- because G6 is in a similar price segment of P7. So what is the product competitiveness to give you the confidence?

（外語）所以我的第一個問題是關於 G6 的產品競爭力，因為管理團隊剛剛提到他們期望 G6，在未來，穩定的月銷售額可能是 P7 的 2 到 3 倍，但是——因為 G6 的價格相近P7的部分。那麼是什麼產品競爭力給了你信心呢？

[Interpreted] I'm -- apologies, I really cannot review too many details regarding our yet-to-launch models, but you can expect to learn more about G6 in mid-to-low April this year in Shanghai Auto Show. But something that I can mention about some highlights of G6 is, first of all, it has a longer driving range, supported by our optimized weight of the whole vehicle driven by our integrated stamping technology as well as better heat management and wind resistance management technology as well. In addition to that, the interior space of G6 is amazing, especially if you are looking at the second row of the car, the seating area is pretty spacious. And another characteristic to G6 or highlight is its aesthetic. The design language follow the XPeng style, which is going to be very appealing to our customers.

[解讀]我——抱歉，關於我們尚未推出的車型，我真的不能回顧太多細節，但你可以期待在今年 4 月中下旬的上海車展上了解更多關於 G6 的信息。但是對於G6的一些亮點我可以提一下，首先是續航里程更長，加上我們集成沖壓技術驅動的優化的整車重量，以及更好的熱管理和風阻管理技術。以及。除此之外，G6的車內空間還是很不錯的，尤其是看第二排的時候，坐著的地方還是蠻寬敞的。 G6 的另一個特點或亮點是它的美感。設計語言遵循小鵬風格，這將非常吸引我們的客戶。

(foreign language) So my second question is related to the battery technology. So in the future, will you consider to use a different type of battery, for example, like a cylindrical type of battery. And besides that, regarding your current order backlog, G9, you already provide the high-voltage fast-charging battery. What is the -- is that ratio high enough? Or if it is not high enough, is this because the charging infrastructure is still not enough or consumers feel comfortable based on the current -- the normalized battery pack sizes?

（外語） 所以我的第二個問題與電池技術有關。那麼在未來，你會不會考慮使用不同類型的電池，比如像圓柱型的電池。除此之外，關於你們目前的訂單積壓，G9，你們已經提供了高壓快充電池。什麼是——這個比率足夠高嗎？或者，如果它不夠高，這是因為充電基礎設施仍然不夠，還是消費者根據電流（標準化電池組尺寸）感到舒適？

[Interpreted] Regarding G9 and all of our upcoming new models and facelift versions, all of them will be equipped with the fast-charging capabilities suitable for 800 voltage and also silicon carbide, fast charging technology. And we will also expand construction of this fast-charging infrastructure as well. Now what I would like to mention is that this fast charging technology will not only work on the dedicated charging pile, but also in the original charging pile as well. So you can actually charging by using the technology on both charging piles. In addition to that, we also have put in place our modulized optimization technology to optimize the batteries as well as the chip in the design of those new vehicles. So we are open to the possibility of adopting cylindrical batteries in the future.

【解讀】關於G9以及我們即將推出的所有新車型和改款版本，它們都將配備適用於800電壓的快速充電功能以及碳化矽快速充電技術。我們還將擴大這個快速充電基礎設施的建設。現在我想說的是，這項快充技術不僅適用於專用充電樁，也適用於原裝充電樁。所以你可以在兩個充電樁上使用該技術實際充電。除此之外，我們還採用了模塊化優化技術來優化這些新車設計中的電池和芯片。所以我們對未來採用圓柱電池的可能性持開放態度。

Due to time constraints for this call, I'd like to turn the call back over to the company for closing remarks.

由於此電話的時間限制，我想將電話轉回公司以進行結束髮言。

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 [Pearson's] Financial Communications.

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 [Pearson's] Financial Communications 聯繫小鵬的投資者關係。

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

今天的電話會議到此結束。您現在可以斷開線路。謝謝。