Xpeng Inc (XPEV) 2023 Q1 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for the First Quarter 2023 Earnings Conference Call for XPeng Inc. (Operator Instructions) Today's conference call is being recorded.

女士們，先生們，您好。感謝您支持 XPeng Inc. 2023 年第一季度收益電話會議（操作員說明）今天的電話會議正在錄製中。

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

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 First Quarter 2023 Earnings Conference Call. Our financial and operating results were issued by our 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2023年一季度財報電話會議。我們的財務和經營業績今天早些時候由我們的新聞專線服務發布，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將包括聯合創始人、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. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law.

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。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。

Please also note that XPeng's earnings press release and this conference call include disclosure of 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.

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] Hi, everyone. Beginning in the first quarter of 2023, facing future competition, XPeng has centered around change. With that in mind, I took action to make considerable changes to XPeng's business plan, organizational structure and management team. As a result, some senior management who completed their mission on our journey from 0 to 1 have stepped down. Nonetheless, more new talents, full of energy and entrepreneurial passion have quickly stepped up and taken on leadership position through both the internal promotions and external recruitment. I'm excited to see these new team members have fit in well in a short amount of time and made remarkable changes. I'm also very encouraged to see the passion and determination of all XPeng employees to change as if today were XPeng's day 1 as we shifted the focus of our innovation towards cost, efficiency and customers.

【翻譯】大家好。從2023年一季度開始，面對未來的競爭，小鵬以變革為中心。考慮到這一點，我採取行動對小鵬的商業計劃、組織架構和管理團隊進行了相當大的改變。因此，一些在我們從 0 到 1 的旅程中完成使命的高級管理人員已經卸任。儘管如此，更多充滿活力和創業激情的新銳人才通過內部提拔和外部招聘，迅速走上領導崗位。我很高興看到這些新的團隊成員在短時間內很好地適應並做出了顯著的改變。當我們將創新的重點轉向成本、效率和客戶時，我也非常鼓舞地看到所有小鵬員工改變的熱情和決心，就好像今天是小鵬的第一天。

It is very hard for the manufacturing industry to reverse the declining trend and set up a virtuous cycle, but we managed to start the reform with ourselves and rebuild the fundamentals of the company. Compared with competitors in the industry, such a reform makes me confident that we'll be able to perform well consistently in each battle and create a virtuous product sales cycle, boost team morale, increase customer satisfaction and raise our brand reputation from the third quarter of 2023.

製造業要扭轉頹勢，建立良性循環，難度很大，但我們從自身開始改革，重建企業基本面。與同行業的競爭對手相比，這樣的改革讓我有信心，從三季度開始，我們一定能夠在每場戰鬥中表現穩定，創造良性的產品銷售循環，提振團隊士氣，提高客戶滿意度，提升品牌美譽度。 2023 年。

In the face of macroeconomic challenges and more intense competition, we achieved a month-on-month growth of new orders for the past 4 months. More excitingly, order intake for the higher end and NCM versions of our new P7i model, which was just launched in March, has exceeded our expectations. The original production capacity we planned was not enough to cover demand. Compared with the previous P7 model, the P7i offers more streamlined SKU specifications with a more efficient go-to-market strategy. Starting from June, we'll work with supplier partners to significantly ramp up the production of P7i's components and aim to accelerate deliveries of this popular new model with its aesthetically pleasing style design and distinguishing smart features, future drive -- further driving P7i sales growth.

面對宏觀經濟挑戰和更加激烈的競爭，過去4個月我們實現了新訂單環比增長。更令人興奮的是，我們 3 月份剛剛推出的新款 P7i 機型的高端和 NCM 版本的訂單量超出了我們的預期。我們計劃的原始產能不足以滿足需求。與之前的 P7 機型相比，P7i 提供了更精簡的 SKU 規格和更高效的上市策略。從 6 月開始，我們將與供應商合作夥伴合作，大幅提高 P7i 組件的產量，並旨在通過其美觀的風格設計和與眾不同的智能功能加速這款流行的新型號的交付，未來的驅動力——進一步推動 P7i 的銷售增長.

Our latest production model debuted at the Shanghai Auto Show in April, the G6, which was our first production model that is built on XPeng's next-generation technology architecture platform, SEPA2.0 or Fuyao in Chinese. It's debut was met with remarkable enthusiasm from attendees at the expo. The G6 features a stylish, esthetic design and best-in-class interior space, ensuring a comfortable ride. Fully equipped with a world-class 800-volt high-voltage SiC platform and a 3C fast-charging battery, the G6 is uniquely positioned within its segment, boasting ultra-long range as high as 755 kilometers, ultra-high energy efficiency and ultrafast charging.

我們最新的量產車型 G6 在 4 月的上海車展上首次亮相，這是我們的第一款基於小鵬下一代技術架構平台 SEPA2.0 或中國福耀的量產車型。它的首次亮相受到了世博會與會者的極大熱情。 G6採用時尚、美觀的設計和一流的內部空間，確保乘坐舒適。 G6搭載世界一流的800伏高壓SiC平台和3C快充電池，在同級別車型中獨樹一幟，擁有高達755公里的超長續航、超高能效和超快收費。

More importantly, upon market delivery, the G6 will be equipped with XNGP, the industry's leading ADAS. I'm pleased to share with you that G6 test drives by media began last week. The feedback from media is that G6 is well ahead of other EV models by one generation in terms of ADAS capabilities. And its 800-volt platform with faster charging and lower energy consumption which is an analogy to the 3G technology replacing 2G in mobile phones. The G6 will be officially launched in June and began mass deliveries in July, accompanied by a fast ramp up. We believe the G6 will emerge as one of the best-selling models in China's NEV SUV market segment within the RMB 200,000 to RMB 300,000 price range.

更重要的是，G6上市後將搭載業界領先的ADAS XNGP。很高興與大家分享，G6 媒體試駕活動已於上週開始。媒體反饋，G6在ADAS能力方面領先其他EV車型一代。其 800 伏平台具有更快的充電速度和更低的能耗，類似於 3G 技術取代手機中的 2G。 G6 將於 6 月正式推出，7 月開始批量交付，並伴隨著快速增長。我們相信 G6 將成為中國 20 萬至 30 萬元價格區間內新能源 SUV 細分市場中最暢銷的車型之一。

We expect this model to drive substantial growth in XPeng's third quarter delivery volume and significantly outperformed the industry's growth in both year-over-year and quarter-over-quarter terms. This will mark the first inflection point in our sales growth following our strategic and organizational adjustment. Additionally, in the fourth quarter, we plan to launch a 7-seat electric MPV model, which we call X9 internally, and roll out more clearly defined configurations for existing models in order to further boost our sales growth.

我們預計該模式將推動小鵬汽車第三季度交付量大幅增長，並在同比和環比方面顯著優於行業增長。這將是我們戰略和組織調整後銷售增長的第一個拐點。此外，在第四季度，我們計劃推出一款7座電動MPV車型，我們內部稱之為X9，並為現有車型推出更明確的配置，以進一步推動我們的銷售增長。

We also firmly believe that 2023 will mark an inflection point in the development of smart technologies for EV and the starting point of smart technologies' widespread user adoption. We expect most of our potential customers to recognize value by 2024 to 2025. At the end of March this year, we rolled out our City NGP on Max stream of multiple models for customers in Guangzhou, Shenzhen and Shanghai via OTA update. The customer feedback we received has been inspiring.

我們也堅信，2023年將是電動汽車智能技術發展的拐點，也是智能技術被廣泛應用的起點。我們預計我們的大多數潛在客戶將在 2024 年至 2025 年之前認識到價值。今年 3 月底，我們通過 OTA 更新為廣州、深圳和上海的客戶在 Max stream 上推出了我們的城市 NGP。我們收到的客戶反饋鼓舞人心。

In the first month following the OTA rollout, City NGP's mileage penetration rate reached over 60% and has become assisting driver for users' daily commute. For the first time, I personally have also gotten used to driving with XNGP every day. It made me feel much more relaxed to drive. City NGP test drives are already available at all XPeng stores in Guangzhou, Shenzhen and Shanghai.

OTA上線首月，城市NGP里程滲透率超過60%，成為用戶日常通勤的代駕。第一次，我個人也習慣了每天用 XNGP 開車。這讓我開車感覺輕鬆多了。城市NGP試駕已在廣州、深圳和上海的所有小鵬門店開放。

In April, the percentage of order of the Max stream of our P7i and G9 models in a total order of P7i and in G9 increased substantially to more than 50%. We also plan to start the rollout of highway NGP 2.0 in June. Highway NGP 2.0 was developed based on the framework of XNGP. So it's code increased by 5x compared to the original version. Equipped with algorithms changing complex urban driving scenarios, Highway NGP 2.0 is able to offer a highway driver assistance experience close to that of L4, meaning high efficiency, consistent performance, no getting stuck, no disturbance and also no intention to take over. By the end of 2023, the number of manual takeovers per 1,000 kilometers when using our Highway NGP is expected to be reduced to one or fewer.

4月，我們P7i和G9機型的Max流訂單佔P7i和G9總訂單的比例大幅提升至50%以上。我們還計劃在 6 月開始推出高速公路 NGP 2.0。 Highway NGP 2.0是基於XNGP框架開發的。因此，與原始版本相比，它的代碼增加了 5 倍。 Highway NGP 2.0搭載算法改變複雜的城市駕駛場景，能夠提供接近L4的高速公路輔助駕駛體驗，即高效、一致的性能、不卡頓、不干擾、不意圖接管。到2023年底，使用我們的高速公路NGP時，每1000公里的人工接管次數有望減少到一個或更少。

By the end of the third quarter this year, we'll begin nationwide rollout of our XNGP across more cities without high-definition map coverage. This will be the first time for the mass production of City NGP or equivalent with our HD map in China. Based on our experience, the mass production of City NGP in cities without high-definition map coverage is 100 times more difficult than the mass production of Highway NGP with a high-definition map. It sets a new benchmark for our R&D teams, technologies and data capabilities.

到今年第三季度末，我們將開始在全國范圍內在更多沒有高清地圖覆蓋的城市推出 XNGP。這將是在中國首次量產城市NGP或等同於我們的高精地圖。根據我們的經驗，在沒有高清地圖覆蓋的城市，City NGP的量產難度是Highway NGP量產的100倍。它為我們的研發團隊、技術和數據能力樹立了新的標杆。

However, it's well worth it because it will considerably enhance our user experience once we achieve it. At present, our XNGP has the driving abilities equivalent to a novice driver, moving forward, and supported by the large-scale data set generated in urban driving environment and strong back-end closed loop data training systems, we expect to introduce quarterly OTA updates for XNGP, which we expect to enrich its driving experience by 1 year each time, offering increased safety and generalization ability. And incorporate some capabilities of large language model or LLM into XNGP.

然而，這是非常值得的，因為一旦我們實現它，它將大大增強我們的用戶體驗。目前我們的XNGP已經具備了新手司機的駕駛能力，繼續前行，在城市駕駛環境下產生的大規模數據集和強大的後端閉環數據訓練系統的支持下，我們預計會推出季度OTA更新對於XNGP，我們希望每次都能豐富其一年的駕駛體驗，提供更高的安全性和泛化能力。並將大型語言模型或LLM的一些能力融入到XNGP中。

I firmly believe that as we continue to make breakthroughs in XNGP's experience, scenario coverage and ownership costs based on data in the 3 cities we have launched sales of the Max stream of our models with XNGP will grow significantly.

我堅信，隨著我們在XNGP體驗上的不斷突破，基於我們在3個城市推出的Max流車型的XNGP銷量，基於數據的場景覆蓋和保有成本將有較大幅度的增長。

Good design really matters to young consumers. So since the end of last year, I have been directly managing the styling and design department and put more efforts and resources into improving our design capabilities. Recently, we invited several talented designers with experience in designing top-selling models to join XPeng. We also got healthy competition between excellent external design teams and our in-house design teams to generate even more creative design ideas for new models. In addition to that, the LLM also is very helpful to our design improvement. I believe these changes will enable our new models and future facelift versions to be equipped with market-leading interior and exterior styling and design.

好的設計對年輕消費者來說真的很重要。所以從去年年底開始，我直接管理造型設計部門，投入更多的精力和資源來提升我們的設計能力。最近，我們邀請了幾位有設計暢銷車型經驗的才華橫溢的設計師加入小鵬汽車。我們還與優秀的外部設計團隊和我們的內部設計團隊進行良性競爭，為新模型產生更多創意設計理念。除此之外，LLM對我們的設計改進也有很大的幫助。我相信這些變化將使我們的新車型和未來的改款車型能夠配備市場領先的內部和外部造型和設計。

Since the first quarter, our sales, marketing and service capabilities has been upgraded in the concerted efforts under the leadership of our President Wang Fengying and also the whole company is making external and internal customer-centric transformation quickly. By enhancing our customer experience throughout the entire sales and service process and speeding up our response to customer demand since early this year through April, we have achieved consecutive improvement in our NPS, one of our core customer satisfaction indicators. Now as of April, our NPS has rebounded to Tier 1 level in industry.

一季度以來，在王鳳英總裁的帶領下，我們的銷售、營銷和服務能力得到全面提升，公司內外也在快速推進以客戶為中心的轉型。從今年年初到4月，通過提升銷售服務全流程的客戶體驗，加快客戶需求響應速度，我們的客戶滿意度核心指標之一的NPS持續提升。現在截至 4 月，我們的 NPS 已回升至行業一級水平。

Looking ahead into the next quarter, our top priority will remain clearly focused on rapid acceleration of our sales and EV market share growth. We have already implemented measures to flatten the management structure across our sales organization and establish a middle office that is more efficient and can more quickly respond to requests that come from the front line. The next step will be to take a more selective approach on our existing sales network in order to strengthen the competitiveness of our channel as a whole.

展望下一季度，我們的首要任務仍將明確地集中在我們的銷售和電動汽車市場份額增長的快速加速上。我們已經採取措施，在整個銷售組織中實現管理結構扁平化，並建立一個更高效、更快速響應來自一線的請求的中台。下一步將對我們現有的銷售網絡採取更具選擇性的方法，以加強我們整個渠道的競爭力。

In addition to increasing operational efficiency across our Tier 1 and Tier 2 cities sales network, we'll also introduce more high-quality dealers in Tier 3 and Tier 4 cities to bolster our product road map and sales targets over the next few years in the RMB 150,000 to RMB 250,000 price range market segment.

除了提高一二線城市銷售網絡的運營效率外，我們還將在三四線城市引入更多優質經銷商，以加強我們未來幾年的產品路線圖和銷售目標。 15萬元至25萬元價格區間的細分市場。

We believe the automotive industry landscape will be transformed by technology innovations and fierce competition over the next few years. In addition to great product proposition and new technology, the key to success also lies in cost reduction to the greatest extent and efficient involvement in R&D and operations. Our next-generation technology architecture, SEPA 2.0, boosts powerful competitive strength in R&D efficiency and technology innovations. With G6 mass production, the SEPA 2.0 architecture represent platform-based technology capabilities that we've built through consistent, intensive R&D efforts over the past 5 years, which will strengthen our leadership in technology over the next 3 years.

我們相信，未來幾年，技術創新和激烈競爭將改變汽車行業格局。除了出色的產品主張和新技術，成功的關鍵還在於最大程度地降低成本並有效參與研發和運營。我們的下一代技術架構SEPA 2.0在研發效率和技術創新方面增強了強大的競爭優勢。隨著 G6 量產，SEPA 2.0 架構代表了我們通過過去 5 年持續、密集的研發努力建立的基於平台的技術能力，這將加強我們在未來 3 年的技術領先地位。

We are rolling out new products that offer more competitive cost and consistent customer experience based on SEPA 2.0. The new models in our R&D pipeline, which covers RMB 150,000 to [RMB 350,000] price segment, and a variety of new car types will be built on a suite of shared technology platforms, spanning powertrain system, electronic and electrical architecture, smart cabins and ADAS. It will shorten the future models R&D cycle by 20% and up to 80% of architectural components will be compatible between different models, both of which enable XPeng to substantially reduce R&D spending on new models and bond costs.

我們正在推出基於 SEPA 2.0 提供更具競爭力的成本和一致的客戶體驗的新產品。我們研發管線中的新車型，涵蓋 15 萬元至 [35 萬元] 的價格段，以及各種新車型將建立在一套共享技術平台上，涵蓋動力總成系統、電子電氣架構、智能座艙和高級駕駛輔助系統。這將使未來車型的研發週期縮短20%，高達80%的架構組件將在不同車型之間兼容，這兩者都使小鵬汽車能夠大幅降低新車型的研發支出和債券成本。

Over the second half of 2023 through 2024, we are planning to map out a clear and practical plan to achieve our target of a 25% cost reduction by the end of 2024. And we expect to realize some benefits of cost reduction initiatives in part design and powertrain and vehicle hardware as soon as this year. In this round of industry revolution, I believe that cost control both for hardware and software and efficiency enhancement for both operation and products will be among the core competitive edges to win the ultimate competition.

從 2023 年下半年到 2024 年，我們計劃制定一個明確且切實可行的計劃，以實現到 2024 年底將成本降低 25% 的目標。我們希望在零件設計中實現成本降低舉措的一些好處以及動力總成和車輛硬件最快在今年。在這一輪產業革命中，我相信從硬件和軟件兩個方面控製成本，從運營和產品兩個方面提升效率，將成為贏得最終競爭的核心競爭優勢。

Now this, the competition is mainly around volume or scale, but the next round of competition requires comprehensive competitiveness in scale, innovation, design, cost, efficiency, quality and global markets, all of which are indispensable.

現在這個，競爭主要是圍繞數量或者規模，但下一輪競爭需要規模、創新、設計、成本、效率、質量和全球市場的綜合競爭力，缺一不可。

In terms of our cash flow, our cash on hand at the end of the first quarter of 2023 amounted to over RMB 34 billion. I'll further simplify our operations concentrate our R&D investment on what customers recognize and build our long-term competitive position by advancing our platform-based technology approach. At the same time, we'll continue to optimize our organizational structure and management process significantly to further improve our operating efficiency across the company. Beginning in July with the mass delivery of G6, along with other new product launches that will see a rapid sales growth, I expect our monthly deliveries to increase significantly in the third quarter compared with that in the second quarter.

現金流方面，截至2023年一季度末，我們在手現金超過340億元。我將進一步簡化我們的運營，將我們的研發投資集中在客戶認可的領域，並通過推進我們基於平台的技術方法來建立我們的長期競爭地位。同時，我們將繼續大力優化組織架構和管理流程，進一步提升全公司的運營效率。從7月份開始G6的批量交付，以及其他銷量快速增長的新產品發布，我預計我們第三季度的月度交付量將比第二季度有顯著增長。

Furthermore, as our monthly delivery targets exceed 20,000 vehicles in the fourth quarter of 2023, I expect our cash flow generated from operations to turn positive accordingly.

此外，由於我們在 2023 年第四季度的每月交付目標超過 20,000 輛，我預計我們的運營產生的現金流量將相應轉正。

Now moving to our guidance, we expect our total vehicle deliveries to be between 21,000 and 22,000 units in the second quarter of 2023, representing 15% to 21% quarter-over-quarter growth. And the revenue to be between RMB 4.5 billion and RMB 4.7 billion. From the third quarter of 2022, even though we underwent 4 consecutive quarters of pain in terms of deliveries, I always believed that in every challenge lies an opportunity. It prompted us to reflect earlier on how to win the knockout phase in 2025 and how to get into the semifinals in 2027.

現在轉向我們的指導，我們預計 2023 年第二季度我們的汽車總交付量將在 21,000 至 22,000 輛之間，環比增長 15% 至 21%。收入在45億元至47億元之間。從2022年第三季度開始，雖然我們在交付方面連續經歷了4個季度的陣痛，但我始終相信，每一次挑戰都是機遇。這促使我們更早地反思如何在2025年贏得淘汰賽階段以及如何在2027年進入半決賽。

Drawing on our more competitive new products and more effective sales channels, we will achieve substantial sales volume growth on a sequential quarterly basis in the third and fourth quarters of 2023.

憑藉我們更具競爭力的新產品和更有效的銷售渠道，我們將在 2023 年第三和第四季度實現銷量環比大幅增長。

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 first quarter of 2023.

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 2023 年第一季度的財務業績。

Thank you, Mr. He, and hello, everyone. Now I would like to provide a brief overview of our financial results for the first quarter of 2023. I will reference RMB only in my discussion tonight unless otherwise stated. Our total revenues were RMB 4.03 billion for the first quarter of 2023, a decrease of 45.9% year-over-year and a decrease of 21.5% quarter-over-quarter. Revenues from vehicle sales were RMB 3.5 billion for the first quarter of 2023, a decrease of 49.8% year-over-year and a decrease of 24.6% from the last quarter. The year-over-year and quarter-over-quarter decreases were mainly attributable to lower vehicle deliveries and discontinuation of new energy vehicle subsidies.

謝謝何老師，大家好。現在我想簡要介紹一下我們 2023 年第一季度的財務業績。除非另有說明，否則我今晚的討論將僅提及人民幣。 2023 年第一季度，我們的總收入為人民幣 40.3 億元，同比下降 45.9%，環比下降 21.5%。 2023年一季度汽車銷售收入為人民幣35億元，同比下降49.8%，環比下降24.6%。同比和環比下降的主要原因是汽車交付量下降和新能源汽車補貼終止。

Gross margin was 1.7% for the first quarter of 2023 compared with 12.2% for the same period of '22 and 8.7% for the first quarter of 2022. Vehicle margin was minus 2.5% for the first quarter of 2023, compared with 10.4% for the same period 2022 and 5.7% for the first quarter of 2022. The year-over-year and quarter-over-quarter decreases were mainly experienced by increased sales promotions and the expiry of new energy vehicle subsidies mentioned above.

2023 年第一季度毛利率為 1.7%，2022 年同期為 12.2%，2022 年第一季度為 8.7%。2023 年第一季度汽車利潤率為負 2.5%，而 2023 年第一季度為 10.4% 2022年同期為5.7%，2022年一季度為5.7%。同比和環比下降主要是受上述促銷力度加大和新能源汽車補貼到期影響。

R&D expenses were RMB 1.3 billion for the first quarter of 2023, representing an increase of 6.1% from RMB 1.2 billion for the same period of 2022 and an increase of 5.3% from RMB 1.2 billion for the first quarter of 2022. The year-over-year and quarter-over-quarter increases were mainly due to higher expenses relating to the development of new vehicle models.

2023 年第一季度研發費用為人民幣 13 億元，較 2022 年同期的人民幣 12 億元增長 6.1%，較 2022 年第一季度的人民幣 12 億元增長 5.3%。 -同比和環比增長主要是由於與新車型開發相關的費用增加。

SG&A expenses were RMB 1.4 billion for the first quarter of 2023, representing a decrease of 15.5% from RMB 1.6 billion for the same period of 2022 and a decrease of 21% from RMB 1.8 billion for the first quarter of 2022. The year-over-year and quarter-over-quarter decrease is mainly due to lower commission paid to franchisee stores and lower marketing and advertising expenses. As a result of foregoing, loss from operations was RMB 2.6 billion for the first quarter of 2023 compared with RMB 1.9 billion for the same period of 2022 and RMB 2.5 billion for the last quarter.

2023 年第一季度的 SG&A 費用為人民幣 14 億元，較 2022 年同期的人民幣 16 億元下降 15.5%，較 2022 年第一季度的人民幣 18 億元下降 21%。 -同比和環比下降主要是由於支付給加盟店的佣金減少以及營銷和廣告費用減少。綜上所述，2023 年第一季度經營虧損為人民幣 26 億元，而 2022 年同期為人民幣 19 億元，上一季度為人民幣 25 億元。

Net loss was RMB 2.3 billion for the first quarter of 2023 compared with RMB 1.7 billion for the same period a year ago and RMB 2.4 billion for the last quarter. As of March 31, 2023, our company had cash, cash equivalents, restricted cash, short-term investments and term deposits in total of RMB 34.1 billion. To be mindful of [events] of our earnings call, I will encourage listeners to refer to our earnings press release for more details on our first quarter financial results.

2023 年第一季度淨虧損為 23 億元人民幣，去年同期為 17 億元人民幣，上一季度為 24 億元人民幣。截至2023年3月31日，本公司持有現金、現金等價物、受限制現金、短期投資及定期存款合計人民幣341億元。為了注意我們財報電話會議的[事件]，我鼓勵聽眾參考我們的財報新聞稿，了解有關我們第一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) Today's first question comes from Tim Hsiao with Morgan Stanley.

（操作員說明）今天的第一個問題來自摩根士丹利的 Tim Hsiao。

(foreign language) So my first question is about the pricing strategy. So how should we think about expense price strategy for G6 and the upcoming models? Given the severe pricing competition, will actually intend to price the model more aggressively when bringing the model to the market to ensure the company can stay much ahead of peers in terms of price performance ratio? Especially, I think that Mr. Hu just mentioned, the group will happily focus on the volume growth or the company would prefer to leave some room for a cheaper version to follow on after the volume picking off in order to effectively respond to peer's pricing adjustment and to better balance our near-term profitability? So that's my first question.

（外語）所以我的第一個問題是關於定價策略。那麼我們應該如何考慮 G6 和即將推出的車型的費用定價策略呢？面對激烈的定價競爭，究竟會不會在推向市場時，將車型定價更為激進，以確保公司在性價比上遙遙領先於同行？特別是，我覺得胡總剛才提到，集團會很高興地專注於銷量增長，或者公司寧願在銷量回升後留出一些空間讓更便宜的版本跟進，以有效應對同行的價格調整並更好地平衡我們的近期盈利能力？這是我的第一個問題。

[Interpreted] All right. Thank you for your question. We've considered internally these 2 possibilities. First of all, we will prioritize scale before considering pricing. And we definitely expect to have a long-term stable pricing. And also, we will take into consideration the cost structure of our products, including the inflation of, for example, the LFP batteries and other parts. Taken into consideration those factors together with our cost control measures, we definitely consider long-term stable pricing at a more competitive level for G6 and also other upcoming models. But in a nutshell, you will -- we will prioritize the scale.

[解釋] 好的。謝謝你的問題。我們已經在內部考慮了這兩種可能性。首先，在考慮定價之前，我們會優先考慮規模。我們絕對希望有一個長期穩定的定價。此外，我們將考慮產品的成本結構，包括 LFP 電池和其他部件的膨脹率。考慮到這些因素以及我們的成本控制措施，我們肯定會考慮以更具競爭力的水平為 G6 和其他即將推出的車型提供長期穩定的定價。但簡而言之，你會 - 我們將優先考慮規模。

Yes, Tim, let me just add here. So Tim, let me just add here. This is Brian. I think, first of all, the scale, we believe, will lead to a better profitability ultimately because obviously, a number of costs can be amortized and reduced in a more efficient manner. And also, as you heard in our previous description is that we aim to significantly lower the overall cost and BOM for our vehicles in the coming months or the coming year. So with better scale and our aim of achieving better costs saving on these products, I think the profitability will naturally return. So that's how we view the sequence of events in our strategy.

是的，蒂姆，讓我在這裡補充一下。所以蒂姆，讓我在這裡補充一下。這是布萊恩。我認為，首先，我們相信規模最終會帶來更好的盈利能力，因為很明顯，許多成本可以以更有效的方式攤銷和減少。而且，正如您在我們之前的描述中所聽到的那樣，我們的目標是在未來幾個月或來年顯著降低我們車輛的總體成本和 BOM。因此，隨著規模擴大以及我們在這些產品上實現更好的成本節約目標，我認為盈利能力自然會回歸。這就是我們如何看待我們戰略中的事件順序。

Got it. Super clear. (foreign language) So my second question is about the supply risk. Because the P7i supply bottleneck will be resolved in June. But if there is any negativity across to the supply ramp up to G6. In the meantime, G6 will be the first model built on the new architecture within the body of aluminum die casting? Would that result in slower pace of production ramp-up after June launch? So should we take that into consideration?

知道了。超級清晰。 （外語） 所以我的第二個問題是關於供應風險。因為 P7i 的供應瓶頸將在 6 月份得到解決。但是，如果對 G6 的供應有任何負面影響。同時，G6會是首款採用鋁壓鑄車身全新架構的車型嗎？這是否會導致 6 月推出後的增產步伐放緩？那麼我們應該考慮到這一點嗎？

[Interpreted] Thank you for your question. Now G6 is different from G9 in a sense that we actually are well prepared for its delivery. We've given it 2 months between the SOP to the final delivery. So we made the announcement in January, we expect to have the deliveries in July. And so in Q3, definitely, we expect a much faster ramp-up for the delivery of G6 compared to P7 or G9 in the past. And also G6 is different from P7i in a sense that we have a really well prepared supply chain to support the future delivery.

[已翻譯] 謝謝你的提問。現在 G6 與 G9 的不同之處在於我們實際上已經為它的交付做好了充分的準備。從 SOP 到最終交付，我們給了它 2 個月的時間。所以我們在 1 月份發布了公告，預計 7 月份交貨。因此，在第三季度，我們預計與過去的 P7 或 G9 相比，G6 的交付速度會更快。而且 G6 與 P7i 的不同之處在於我們有一個準備充分的供應鏈來支持未來的交付。

And in terms of the technology application for the integrated aluminum die casting technology, definitely, it's been a challenge for the whole industry facing the low yield rate of that particular technology. However, we've been in this particular -- using this technology for the -- for over a year. And right now, the development has been very satisfactory, and we expect to have no severe challenge in using this technology on G6. Thank you.

而在一體化鋁壓鑄技術的技術應用方面，毫無疑問，對於整個行業來說，面對該技術的良品率低，這一直是一個挑戰。然而，我們已經在這個特定的領域——使用這項技術——一年多了。而現在，發展已經非常令人滿意，我們預計在G6上使用這項技術不會有什麼嚴峻的挑戰。謝謝。

And our next question today comes from Bin Wang with Credit Suisse.

我們今天的下一個問題來自瑞士信貸的 Bin Wang。

(foreign language) My first question is about battery. Recently the copper price has declined. So what's the impact for your battery sourcing and the margin in the second quarter?

（外語）我的第一個問題是關於電池的。近期銅價有所回落。那麼第二季度對您的電池採購和利潤率有何影響？

Bin, this is Dennis. Thank you for your question. Actually, in the first quarter, we see the battery cost reduction compared with quarter 4 last year, we have about 5% reduction. And then in the second quarter, we see further reduction about 10% to 12% over the quarter 4 last year. So that's about 5 to 7 percentage points increase compared with the quarter 1. Having said that, we also have the marketing spending, variable marketing spending.

斌，這是丹尼斯。謝謝你的問題。實際上，在第一季度，我們看到電池成本與去年第四季度相比下降了大約 5%。然後在第二季度，我們看到比去年第四季度進一步減少約 10% 至 12%。所以這比第一季度增加了大約 5 到 7 個百分點。話雖如此，我們還有營銷支出，可變營銷支出。

So in terms of material cost, especially for the battery cost will improve the margin by, for example, the battery costs would be -- will account for about 40% of the total cost. So 7 percentage points would translate into like 3 to 4 percentage margin improvement. That's from the material side. But the other big chunk would be the revenue side, that will also impact the margin as well. So this a brief answer to your questions.

因此，在材料成本方面，尤其是電池成本將提高利潤率，例如，電池成本將佔總成本的 40% 左右。因此，7 個百分點將轉化為 3 到 4 個百分點的利潤率改善。這是從物質方面來說的。但另一大塊是收入方面，這也會影響利潤率。所以這是對你問題的簡短回答。

My second and last question is about your full year volume guidance. Previously, you actually guided that in this year, you target more than 30% growth. Do you maintain the same target if you maintain in price in the second of this year? The -- on average monthly volume will be 20,000, (inaudible) the full year volume target change or not?

我的第二個也是最後一個問題是關於你的全年銷量指導。此前，您實際上指導的是，今年您的目標是增長 30% 以上。如果今年第二年維持價格，你會維持同樣的目標嗎？ -- 平均每月交易量將為 20,000，（聽不清）全年交易量目標是否有變化？

(foreign language).

（外語）。

(foreign language).

（外語）。

Bin, regarding the volume growth, we still expect we're going to be growing faster than market this year. Obviously, the market growth this year is going to be tempered given what's going on in the industry. But what we see most importantly is that third and fourth quarter, we expect our growth will be significantly higher than the market growth. And also, we believe that with the G6 volume delivery starting in the third quarter, we would like to aim to achieve monthly delivery over 15,000 vehicles per month in the third quarter as one of the targets. And then in the fourth quarter, given the continued growth and also additional model sort of mix -- favorable changes we think that we can actually also target over 20,000 per month in the fourth quarter as our peak sales. So these are our goals in the second half.

Bin，關於銷量增長，我們仍然預計今年我們的增長速度將快於市場。顯然，鑑於該行業正在發生的事情，今年的市場增長將會放緩。但我們看到最重要的是第三和第四季度，我們預計我們的增長將明顯高於市場增長。而且，我們相信隨著第三季度開始的 G6 批量交付，我們希望將第三季度每月交付超過 15,000 輛汽車作為目標之一。然後在第四季度，考慮到持續增長和其他型號組合——有利的變化，我們認為我們實際上也可以在第四季度將每月超過 20,000 件作為我們的銷售高峰期。所以這些是我們下半場的目標。

And our next question comes from Paul Gong with UBS.

我們的下一個問題來自瑞銀集團的 Paul Gong。

Two questions as well. The first question is regarding the new orders intake on the P7i as well as our preparation. (foreign language) So my first question is regarding the P7i, the orders versus our preparation on the supply chain. Can you quantify a little bit what was the order implied like monthly level? What is our production preparation for that? And why we have overestimated G9 demand or underestimated the P7i demand?

還有兩個問題。第一個問題是關於 P7i 的新訂單接收以及我們的準備工作。 （外語）所以我的第一個問題是關於 P7i，訂單與我們在供應鏈上的準備。你能稍微量化一下隱含的訂單是什麼，比如月度水平嗎？我們的生產準備是什麼？為什麼我們高估了 G9 需求或低估了 P7i 需求？

[Interpreted] All right. Thank you for your question. Now regarding our supply chain preparations for P7i, definitely, we experienced some challenges due to, for example, the supply chain and also, for example, the ups and downs of the pricing for NCM batteries.

[解釋] 好的。謝謝你的問題。現在關於我們為 P7i 準備的供應鏈，當然，我們遇到了一些挑戰，例如供應鏈以及 NCM 電池定價的起伏。

But right now, we have well prepared because for May and June, we already expect ramp-up in battery production capacity to supply -- to prepare for our deliveries of P7i in the future. Now looking back for the past several quarters, basically, the whole industry experienced challenges in terms of estimated their deliveries and preparing for that kind of market demand due to a number of factors, including the supply of different parts, the cost of different parts and also the overall environment of the industry.

但現在，我們已經做好了充分的準備，因為在 5 月和 6 月，我們已經預計電池生產能力會增加以供應——為我們未來交付 P7i 做準備。現在回顧過去的幾個季度，基本上整個行業在預估交貨和準備這種市場需求方面都經歷了挑戰，原因是多種因素，包括不同零件的供應，不同零件的成本和還有行業的整體環境。

As a result, starting from Q4 going into Q1 this year, we have actually started a series of policies in our guidance and also estimates that is more cautious and reserved in order to work better with our suppliers to reduce the gap in between the estimate of the deliveries and the actual preparation of the capacity. Going forward, we also will do better in optimizing our -- the matching with the future delivery estimates with our suppliers in terms -- and also our production capacity overall so that we can actually do better in integrated these several aspects.

因此，從今年 Q4 進入 Q1，我們實際上已經在我們的指導中開始了一系列政策，並且估計更加謹慎和保守，以便與我們的供應商更好地合作，以減少與估計之間的差距交付和能力的實際準備。展望未來，我們還將更好地優化我們的 - 與我們的供應商未來交貨估計的匹配 - 以及我們的整體生產能力，以便我們實際上可以在整合這幾個方面做得更好。

Paul, just to -- obviously, your question on the color of P7i, clearly, we -- our order momentum is -- far exceeds our capacity increases in the last couple of months. We think you can actually tell by the average wait time for the product in our stores is stretched to over 6 weeks or even longer. We actually think with now, hopefully, the supply chain ramping up by June, they will elevate some of these wait time pressure which also, in turn, will help generate further momentum for the sales. So that's what we see today.

保羅，很明顯，你關於 P7i 顏色的問題，很明顯，我們的訂單勢頭遠遠超過了過去幾個月的產能增長。我們認為您實際上可以從我們商店中產品的平均等待時間延長到超過 6 週甚至更長的時間來判斷。我們實際上認為，現在，希望供應鏈在 6 月之前增加，他們將增加一些等待時間的壓力，這反過來也將有助於為銷售產生進一步的動力。這就是我們今天所看到的。

(foreign language) So my second question is regarding the brand units. We understand XPeng is pretty popular among young people. And right now, we are facing the young people with unemployment rates over 20%, does that impact our demand? And also when you come out with MPV end of this year, normally MPV are either for the commercial use or for the older families or more mature families? So how shall we match the young brand image of XPeng versus the MPV vans.

（外語）所以我的第二個問題是關於品牌單位。我們了解到小鵬汽車在年輕人中很受歡迎。而現在，我們面對的是失業率超過20%的年輕人，這對我們的需求有影響嗎？還有今年年底出MPV的時候，一般MPV是商用的還是老家庭或者成熟家庭的？那麼小鵬年輕化的品牌形象與MPV麵包車應該如何搭配呢？

[Interpreted] All right. Thank you for your question. Now XPeng's positioning is to really target young consumers, which is like who is also tech-oriented. And our sweet spot is really consumers between 25 years old to 35 years so. And right now, I mean, if I remember this correctly, the unemployment rate is, really talking about fresh graduates from colleges, that is over 20%. I don't recall seeing -- I don't recall reading anywhere that it's 20% unemployment rate for young people. So that is the differentiation here I would like to point out.

[解釋] 好的。謝謝你的問題。現在小鵬的定位是真正針對年輕消費者，就像誰也是科技型的。而我們的甜蜜點實際上是 25 歲到 35 歲之間的消費者。而現在，我的意思是，如果我沒記錯的話，失業率，真的是大學應屆畢業生，超過 20%。我不記得看到過——我不記得在任何地方讀到過年輕人的失業率為 20%。這就是我想指出的區別。

Another thing is that right now, among the targeted group, 25 to 35 years old, we really don't see a lot of impact on ourselves towards this particular consumer group regarding the overall -- the market environment. The second thing -- the second part of your question, how do we really connect the 7-seater MPV with younger consumers. This is a very good question. We have done a lot thinking and discussion internally. And as of the -- I mean, by the end of this year, when we -- when we roll out this new model, you can expect to hear about -- our answer by that time.

另一件事是，目前，在 25 至 35 歲的目標群體中，我們真的沒有看到在整體市場環境方面對這個特定消費群體的影響很大。第二件事——你問題的第二部分，我們如何真正將 7 座 MPV 與年輕消費者聯繫起來。這個問題問得好。我們內部做了很多思考和討論。截至 - 我的意思是，到今年年底，當我們 - 當我們推出這種新模式時，你可以期待聽到 - 到那時我們的答案。

And our next question comes from Nick Lai with JPMorgan.

我們的下一個問題來自摩根大通的 Nick Lai。

(foreign language) Just the first question is really about the sales and marketing and channel strategy, given we have the new model G3 in the third quarter ramping up and also new MPV starting to ramp up in 4Q. And we talk about the new product strategy [XNGP] and so on. Can you elaborate a bit more on the onsets and strategy.

（外語）第一個問題實際上是關於銷售和營銷以及渠道策略，因為我們在第三季度推出了新車型 G3，並且在第四季度也開始推出新款 MPV。並且我們談論新產品策略[XNGP]等等。你能詳細說明一下發作和策略嗎？

And the second question is really about GP margin trend and outlook in the second half. I understand you do not provide any guidance. But how should we think about the margin level in the second half given the competition and given even our pricing and point strategy?

第二個問題實際上是關於下半年 GP 利潤率趨勢和展望。我了解您不提供任何指導。但是，考慮到競爭，甚至考慮到我們的定價和積分策略，我們應該如何考慮下半年的利潤率水平？

[Interpreted] All right. Thank you for your question. Let me take the first one. Regarding the changes that have been brought about by President Wang since end of January, I mean, it has been really tremendous. She joined us as of the end of January, and it's been about 4 months now, and she's done a lot of changes. For example, starting from the organization, we grouped together the trading team and also the sales team together, and we have also changed our big middle office into a more swift and adaptable kind of smaller front office that allow us to be more agile.

[解釋] 好的。謝謝你的問題。讓我拿第一個。一月底以來，王總帶來的變化，我的意思是，真的是非常巨大。她從 1 月底加入我們，到現在已經 4 個月了，她做了很多改變。比如從組織上做起，我們把交易組和銷售組組在一起，我們也把我們的大中台變成了一種更敏捷、適應性更強的小前台，讓我們更敏捷。

And the second change is that we used to have multiple lines running different operations. Right now, we have one big line of business or our operational team that actually coordinates different projects, different lines of business that allowed us to actually improve our Net Promoter Score or NPS for several months in a row. And another big change happened actually to our marketing team. We have been doing a lot of things to improve the overall efficiency by using multiple newer tools, doing different project-based operation and also flatten our organizational structure overall.

第二個變化是我們以前有多條線運行不同的操作。現在，我們有一個大的業務線或我們的運營團隊實際上協調不同的項目，不同的業務線使我們能夠連續幾個月實際提高我們的淨推薦值或 NPS。我們的營銷團隊實際上發生了另一個重大變化。我們一直在做很多事情來提高整體效率，通過使用多個更新的工具，進行不同的基於項目的操作，並從整體上扁平化我們的組織結構。

Now also in our sales and we have done a lot of training to really improve the skill of our salespeople, especially in terms of introducing the different SKUs and different variation of our models in the market. Another big change also happened in the -- or to be expected is on our channel -- sales channel and distribution, both in China and also in the overseas market. And in Q3, you can expect to hear more about those big changes to come.

現在也在我們的銷售中，我們做了很多培訓，以真正提高我們銷售人員的技能，特別是在市場上引入不同的 SKU 和我們的模型的不同變體方面。另一個重大變化也發生在——或者可以預期的是我們的渠道——銷售渠道和分銷，無論是在中國還是在海外市場。在第三季度，您可以期待聽到更多關於即將發生的重大變化的消息。

And also in terms of our branding as well, we are going to actually instill more of the (inaudible) and all the -- also the youth into our brands so that you can hear more about XPeng and be more clear about our positioning. So overall, I would say that definitely, we have done a lot of changes overall. And it all originated from our DNA of XPeng, but at the same time, you are seeing a new sort of a facelift version of our brand as well.

而且就我們的品牌而言，我們實際上將向我們的品牌灌輸更多（聽不清）和所有 - 以及年輕人，以便您可以更多地了解 XPeng 並更清楚地了解我們的定位。所以總的來說，我肯定會說，我們總體上做了很多改變。這一切都源於我們小鵬的 DNA，但與此同時，您也看到了我們品牌的一種全新改版。

And Nick, this is Brian. For your question on the margin. So for the second quarter, we think given the modest volume increase as well as the older product mix continue to be the selling. I think there's still going to be margin pressure despite some of the battery cost savings that Dennis mentioned.

尼克，這是布萊恩。對於邊緣的問題。因此，對於第二季度，我們認為鑑於適度的銷量增長以及較舊的產品組合繼續成為賣點。我認為儘管丹尼斯提到了一些電池成本節省，但利潤率壓力仍然存在。

But with the second half, the increased delivery volume increase with P7i, G6 as well as the new MPV by the end of this year, we think the overall gross margin will improve gradually with obviously changing of these product mixes. But the most significant margin increase will happen, I think, next year, given all these cost reduction measures as well as the further volume and scalability coming into play, that's where we see the trend.

但隨著下半年 P7i、G6 以及年底新 MPV 的交付量增加，我們認為隨著這些產品結構的明顯變化，整體毛利率將逐漸改善。但考慮到所有這些降低成本的措施以及進一步的數量和可擴展性發揮作用，我認為明年將出現最顯著的利潤增長，這就是我們看到的趨勢。

And our next question comes from Ming Lee with BofA.

我們的下一個問題來自美國銀行的 Ming Lee。

(foreign language) My first question is regarding the -- your expectation on the reasonable lithium component price in the next 1 to 2 years, if supply is more than demand? And will you consider to change your battery repricing frequency to follow closely to a spot raw material price? And also, what is your current volume sales breakdown by LFP and NCM battery? Do you think that LFP battery sales -- cars will continue to increase?

（外語） 我的第一個問題是——如果供大於求，您對未來 1 到 2 年合理的鋰組件價格的預期？你會考慮改變你的電池重新定價頻率以緊跟現貨原材料價格嗎？另外，您目前按 LFP 和 NCM 電池劃分的銷量細分是多少？您認為 LFP 電池銷量——汽車會繼續增長嗎？

[Interpreted] Thank you for your question. It's really hard to estimate the future ups and downs of the lithium pricing. But in the short term, I believe that the inflation of the lithium pricing should be temporary. And by the second half of the year, we expect to have a lower pricing for this material. But what is going to be the targeted or the right range -- price range for this material, it's very hard to say. But personally, I believe that within RMB 200,000 should be a reasonable range for it.

[已翻譯] 謝謝你的提問。未來鋰價的漲跌真的很難預估。但從短期來看，我認為鋰價的上漲應該是暫時的。到今年下半年，我們預計這種材料的定價會更低。但目標或正確範圍是什麼——這種材料的價格範圍，很難說。但個人認為20萬以內應該是比較合理的區間。

Now right now we are working with our supplier partners in a very flexible manner, meaning that we're actually taking to consideration the inflation or the fluctuation of raw material pricing in the market before determining the sourcing price of our products, which can really help us to optimize our cost structure.

現在我們正在以非常靈活的方式與我們的供應商合作夥伴合作，這意味著我們在確定我們產品的採購價格之前實際上正在考慮市場上的通貨膨脹或原材料價格的波動，這確實有助於我們優化我們的成本結構。

Now going into the future, definitely, we will launch a series of technological innovations to actually reduce the use of batteries, but supporting a wider or longer driving range, which means that we're going to use more of LFP or other similar battery technologies in order to reduce our overall raw material costs while increasing or enhancing the safety of our products and driving up -- the driving range of our products to a satisfactory level of our customers.

現在展望未來，我們肯定會推出一系列技術創新，真正減少電池的使用，但支持更寬或更長的續航里程，這意味著我們將使用更多的 LFP 或其他類似的電池技術為了降低我們的整體原材料成本，同時增加或增強我們產品的安全性，並提高——我們產品的行駛里程達到客戶滿意的水平。

(foreign language) Also my second question is regarding your new software, the XNGP. How it helps to increase of your -- more orders or more foot traffic to your stores? And then besides that, since you mentioned that you will roll out the XNGP service to more than 10 cities in second half this year. So do you think you can also get the approval from city government very quickly? Or there still could be some potential bottleneck?

(外語) 我的第二個問題是關於你們的新軟件，XNGP。它如何幫助增加你的——更多的訂單或更多的客流量到你的商店？然後除此之外，因為你提到你將在今年下半年將 XNGP 服務推出到 10 多個城市。那麼您認為您也可以很快獲得市政府的批准嗎？或者仍然存在一些潛在的瓶頸？

Ming, this is Charles. I'll address the question. First of all, I think as you know that we launched the City NGP in 3 cities in China at the end of March, namely Shenzhen, Guangzhou and Shanghai. So I think that's why I think -- if you visit our stores in those cities, right now, our customers can all drive the XNGP. And also, we heard that also customers actually requested to test drive the XNGP, which drive up the penetration rate of the Max stream of our P7i and G9 to more than 50% in those 3 cities in April. And we believe that as we're rolling out XNGP to more cities, and also, we continue to improve our XNGP customer experience every quarter, and that we continue to see the upside of the penetration rate of the Max stream of our new models.

明，這是查爾斯。我會解決這個問題。首先，我想正如你所知，我們於 3 月底在中國的 3 個城市推出了城市 NGP，即深圳、廣州和上海。所以我認為這就是我認為的原因——如果你現在訪問我們在這些城市的商店，我們的客戶都可以駕駛 XNGP。另外，我們聽說也有客戶要求試駕XNGP，這使得4月份我們P7i和G9的Max流在這三個城市的滲透率達到了50%以上。而且我們相信，隨著我們將 XNGP 推廣到更多城市，而且我們每個季度都會繼續改善 XNGP 客戶體驗，並且我們會繼續看到新型號 Max 流的滲透率上升。

To answer your second half of your question, I think our plans to decouple our XNGP from HD map, starting from the softening from the end of Q3. So therefore, I think that because we -- our ability to decouple our XNGP from the HD maps. So therefore, I think that we are able to roll out our XNGP without the requirement of the government approval, et cetera. So therefore, I think we are expecting that towards the end of the year, we can offer XNGP services probably in a few dozen cities in China and more cities over the next couple of quarters.

為了回答你問題的後半部分，我認為我們計劃從第三季度末的軟化開始，將我們的 XNGP 與高清地圖分離。因此，我認為這是因為我們有能力將我們的 XNGP 與高清地圖分離。因此，我認為我們能夠在沒有政府批准等要求的情況下推出我們的 XNGP。因此，我認為我們預計到今年年底，我們可能會在中國的幾十個城市和未來幾個季度的更多城市提供 XNGP 服務。

And our next question comes from Pingyue Wu with Citic Securities.

我們的下一個問題來自中信證券的 Pingyue Wu。

(foreign language) And I have a question for autonomous driving. And a lot of Chinese and foreign OEMs are doing the research and produce autonomous driving, how do we see the leadership of XPeng. And also, we know that data is very important. And while the short-term sales pressure (inaudible) our technology improvements?

（外語）我有一個關於自動駕駛的問題。而且很多中外整車廠都在研發生產自動駕駛，我們怎麼看小鵬的領導力。而且，我們知道數據非常重要。而短期銷售壓力（聽不清）我們的技術改進？

[Interpreted] Thank you for your question. One thing that I would like to make clear is that for XNGP, when it's used within a city and urban scenario, it's actually quite different then Highway NGP when it's used on a highway setting, especially within the cities, we're talking about areas without high-definition maps. So it's very hard to really judge how much ahead in the competition we are, compared to our peers.

[已翻譯] 謝謝你的提問。我想澄清的一件事是，對於 XNGP，當它在城市和城市場景中使用時，它實際上與 Highway NGP 在高速公路環境中使用時完全不同，尤其是在城市中，我們談論的是區域沒有高清地圖。因此，與我們的同行相比，很難真正判斷我們在競爭中領先多少。

Because right now within the industry, we only see a couple of companies that are able to claim that have -- they have similar technologies, but they are really limited to scenarios where there is a high definition maps available. Whereas for XPeng, we are actually able to roll out our XNGP software in areas without high-definition maps. And we also have the capability to actually roll out it further to 50 to 200 cities. So that is definitely very, very advanced. That's the only thing I can say. And typically, it takes about 12 to 18 months to be able to use the XNGP similar functionality from the testing phase of the gray scale testing to the actual rollout.

因為現在在行業內，我們只看到幾家公司能夠聲稱擁有——他們擁有類似的技術，但他們實際上僅限於有高清地圖可用的場景。而對於小鵬，我們實際上可以在沒有高清地圖的地區推出我們的XNGP軟件。我們也有能力將其進一步推廣到 50 到 200 個城市。所以這絕對是非常非常先進的。這是我唯一能說的。通常，從灰度測試的測試階段到實際推出，大約需要 12 到 18 個月才能使用 XNGP 類似的功能。

So it's quite challenging to reach that milestone of the actual rollout. And so I believe that definitely, for XPeng, we have very solid technology in our architecture that actually support multiple sales cycle, including data cycle within the XNGP software itself. And so I would say XNGP, on average, is leading ahead of competition by about 12 months' time.

因此，要達到實際推出的里程碑非常具有挑戰性。所以我相信，對於小鵬來說，我們在架構中擁有非常紮實的技術，實際上支持多個銷售週期，包括 XNGP 軟件本身的數據周期。所以我想說 XNGP 平均領先競爭對手大約 12 個月的時間。

And the second part of your question is about significance of data to the actual performance of the technology. Now I would say data definitely means a lot, and it's very valuable to autonomous driving. However, right now, based on our current sales cycle scale and adoption rate and also the deliveries in the near term, we believe that data here is not going to cause a big issue or really pose a lot of difference because right now, we are still doing vision-based or vision-centric kind of data gathering. And in the future, we expect to have actually more data coming from, for example, language processing language input and that will also help us to actually have a better performance in the software execution.

你問題的第二部分是關於數據對技術實際性能的重要性。現在我想說數據肯定很重要，它對自動駕駛非常有價值。但是，現在，根據我們當前的銷售週期規模和採用率以及近期的交付情況，我們認為這裡的數據不會造成大問題或真正造成很大差異，因為現在，我們仍在進行基於視覺或以視覺為中心的數據收集。在未來，我們期望實際上有更多的數據來自，例如，語言處理語言輸入，這也將幫助我們實際上在軟件執行中有更好的性能。

And I think that right now, our capabilities to support that kind of data processing is sufficient. Definitely, in a longer term, data will really means more when you have more autonomous driving cars on the road that can actually contribute to your data set, but it's in a much longer future. And so right now, it's very hard to say where or when the inflection point will be.

我認為現在，我們支持這種數據處理的能力已經足夠了。當然，從長遠來看，當路上有更多自動駕駛汽車實際可以為您的數據集做出貢獻時，數據將真正意味著更多，但這是在更長的未來。所以現在，很難說拐點會在何時何地出現。

And our next question today comes from Jing Chang with CICC.

我們今天的下一個問題來自 CICC 的 Jing Chang。

(foreign language) So my first question is about as Mr. He Xiaopeng has just mentioned that we hope to sell more than 20,000 units per month in the first quarter. So can you help us to break down our major model structure, including a sales percentage of G6, G7 and G9. So that we think is the successful sales volume of G6, and how to further improve the sales performance of G7 and G9?

(外語) 那麼我的第一個問題就是剛才何小鵬老師提到我們希望第一季度月銷量超過2萬台。那你能不能幫我們分解一下我們的主要車型結構，包括G6、G7、G9的銷量佔比。以至於我們認為G6的銷量是成功的，而G7和G9的銷量如何進一步提升呢？

And my second question is about, can you help us to further explain the overall product planning by 2025. So how many models are planned in our strategy and the main focus price range? And what our main idea is about the premium market above RMB 300,000 and the market below RMB 150,000?

我的第二個問題是，你能不能幫我們進一步解釋一下到2025年的整體產品規劃。那麼我們的戰略中規劃了多少車型以及主要關注的價格區間？而30萬以上的高端市場和15萬以下的市場，我們的主要思路是什麼？

[Interpreted] Thank you for your question. But it's really hard to provide a very definitive or clear answers since it has something to do with our future planning. And what I can only say about Q4 is that I think I would only be satisfied if we can achieve, for example, for G6 deliveries, we expect it to be at 2x of P7. And also, we expect to wrap up our G9 deliveries as well. So right now, we really cannot provide a clear sales breakdown for the monthly sales target of 20,000. Now going forward into 2025, we definitely already have the pipeline in place. We very clear plans for our future portfolio.

[已翻譯] 謝謝你的提問。但是真的很難給出一個非常明確或明確的答案，因為這與我們未來的規劃有關。關於第四季度，我只能說的是，我認為只有我們能夠實現，例如，對於 G6 交付，我們預計它是 P7 的 2 倍，我才會感到滿意。而且，我們希望也能完成 G9 交付。所以目前，對於20,000的月銷售目標，我們確實無法提供明確的銷售明細。現在進入 2025 年，我們肯定已經準備好了管道。我們對未來的投資組合有非常明確的計劃。

What I can only say for now is that we are going to optimize our cost structure and also we are going to a lot of modularized -- we're going to launch a lot of modularized sort of development on the same platform, we expect to have about 10 models in our 2025 lineup. And we still really prioritize the RMB 200,000 to RMB 300,000 price range, and that will be our main market segment. We will have very limited number of offerings in below RMB 200,000 and also above RMB 300,000 price segment.

我現在只能說的是，我們將優化我們的成本結構，而且我們將進行大量模塊化——我們將在同一平台上推出大量模塊化開發，我們希望我們的 2025 陣容中大約有 10 款車型。而且我們仍然真正優先考慮人民幣200,000元至人民幣300,000元的價格範圍，這將是我們的主要細分市場。我們將提供非常有限的 20 萬元以下和 30 萬元以上價格段的產品。

Thank you. This concludes our question and answers. And now I'd now like to turn the call back over to the company for closing remarks.

謝謝。我們的問答到此結束。現在我想把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 [PSM] 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 [PSM] 財務通訊聯繫小鵬的投資者關係。

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

謝謝。今天的電話會議到此結束。您現在可以斷開線路。謝謝。

[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。]