Xpeng Inc (XPEV) 2023 Q3 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for the Third Quarter 2023 Earnings Conference Call for XPeng Inc. (Operator Instructions) Today's conference call is being recorded. I will now turn the call over to your host, Mr. Alex Xie, Head of Investor Relations of the company. Please go ahead, Alex.

女士們、先生們，大家好。感謝您耐心等待小鵬汽車 2023 年第三季業績電話會議（操作員說明） 今天的電話會議正在錄音。現在我將電話轉交給東道主，公司投資人關係主管謝先生。請繼續，亞歷克斯。

Thank you. Hello, everyone, and welcome to XPeng's Third Quarter 2023 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.xiaopeng.com.

謝謝。大家好，歡迎參加小鵬汽車2023年第三季業績電話會議。我們的財務和經營業績今天早些時候由新聞專線服務發布並可在線查看。您也可以造訪我們網站 ir.xiaopeng.com 的 IR 部分，查看收益新聞稿。

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

出席今天電話會議的管理團隊成員包括我們的共同創辦人、董事長兼執行長何小鵬先生；副主席兼總裁顧布萊恩博士；企業融資與投資副總裁、財務會計副總裁張朝陽先生；吳先生和我本人。

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

管理階層將以準備好的發言開始，電話會議將以問答環節結束。本次電話會議的網路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.

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做出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。因此，該公司的業績可能與今天表達的觀點有重大差異。

Further information regarding these and other risks and uncertainties is included in the relevant public filings of the company as filed with 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.

有關這些以及其他風險和不確定性的更多資訊包含在該公司向美國證券交易委員會提交的相關公開文件中。除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。

Please also note that XPeng's earnings press release and this conference call include the 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，小鵬汽車的獲利新聞稿和本次電話會議包括揭露未經審計的 GAAP 財務指標以及未經審計的非 GAAP 財務指標。小鵬汽車的獲利新聞稿包含未經審計的非公認會計原則措施與未經審計的公認會計原則措施的調節表。

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

我現在將電話轉給我們的共同創辦人、董事長兼執行長何小鵬先生。請繼續。

[Interpreted] Hello, everyone. Today, I'm pleased to report to our shareholders and customers that after 3 quarters of transformation and efforts, we have entered into the initial phase of a virtuous cycle driving improvements in sales, brand image, team morale and free cash flow. It is extremely difficult to deliver such a turnaround in the smart car manufacturing industry. Therefore, I would like to express my gratitude for your support and patience throughout the journey. Going forward, we're confident in achieving rapid sales growth and notable improvement of gross margin in the fourth quarter. And we're ready to gain considerable market share in 2024, achieving a high growth target that is significantly above the industry average.

【解讀】大家好。今天，我很高興地向我們的股東和客戶報告，經過三個季度的轉型和努力，我們已經進入了銷售、品牌形象、團隊士氣和自由現金流改善的良性循環的初始階段。智慧汽車製造業要實現這樣的翻盤是極為困難的。因此，我謹對您在整個旅程中的支持和耐心表示感謝。展望未來，我們有信心在第四季度實現銷售快速成長和毛利率顯著提升。我們已準備好在 2024 年獲得可觀的市場份額，實現遠高於行業平均水平的高成長目標。

China's new energy vehicle industry has witnessed resilience and growth in this increasingly intensified competition throughout 2023, creating great opportunities to reshape the industry landscape. The competition on electrification and smartification is speeding up the replacement of ICE cars with NEVs. And AI is revolutionalizing the technical structure of smart EVs and transforming automakers business models. There are no shortcuts to ADAS technology. The only way to determine whether massproduction and the inflection point of ADAS technology have been reached is the achievement of nationwide coverage with low cost, a high level of safety and great customer experience across different models.

2023年，中國新能源汽車產業在日益激烈的競爭中展現出韌性和成長力，為重塑產業格局創造了巨大機會。電動化、智慧化的競爭正在加速新能源汽車對內燃機汽車的替代方案。人工智慧正在徹底改變智慧電動車的技術結構，並改變汽車製造商的商業模式。 ADAS 技術沒有捷徑。判斷ADAS技術能否量產、是否達到拐點的唯一標準，是能否以低成本、高安全性、多車型的客戶體驗實現全國覆蓋。

During our tech day on October 24, we launched the public testing of XNGP in the first batch of 20 cities where high-definition maps are unavailable. Our plan is to expand our coverage to 50 cities by the end of this year. Our technology and AI will empower our customers to use ADAS wherever they drive throughout the country. XPeng has been a pioneer and leader in ADAS technology and its customer adoption. I strongly believe that the demand for ADAS will surge in the next 5 years and XPeng will be the preferred Smart EV brand for customers.

10 月 24 日科技日期間，我們在首批 20 個沒有高清地圖的城市啟動了 XNGP 的公開測試。我們的計劃是到今年年底將覆蓋範圍擴大到50個城市。我們的技術和人工智慧將使我們的客戶能夠在全國各地駕駛時使用 ADAS。小鵬汽車一直是 ADAS 技術及其客戶採用的先驅和領導者。我堅信，未來5年，ADAS的需求將會激增，小鵬汽車將成為顧客首選的智慧電動車品牌。

Next year, we'll consolidate and integrate our full stack in-house R&D capabilities in a wide range of systems, including the NextGen E/E architecture to unifi ADAS domain, smart cockpit and voice assistant, brand-new large language models, the NextGen chassis and powertrain. As a result, we'll be able to deploy multiple models for the global market rapidly and realize the integration of cars between different platforms as well as between cars and other vehicles. I believe this will significantly enhance our engineering capabilities to support various products in the global market, strengthening our edge and smart technologies by integrating different systems.

明年，我們將在廣泛的系統中鞏固和整合我們的全端內部研發能力，包括NextGen E/E架構到unifi ADAS域、智慧座艙和語音助理、全新的大語言模型、下一代底盤和動力總成。這樣，我們就能夠快速地為全球市場部署多種車型，以實現汽車在不同平台之間、汽車與其他汽車之間的整合。我相信這將顯著增強我們的工程能力，以支援全球市場上的各種產品，透過整合不同的系統來增強我們的優勢和智慧技術。

Apart from our commitment to ADAS and Smart EV technologies, we have made crucial changes to our corporate strategies, organizational structure, senior management team and product and technology road map over the past 3 quarters. Making various changes at such a magnitude simultaneously could have brought risks and impacted near-term results. However, thanks to the mutual trust and endeavors of the whole XPeng team, these changes did not affect our short-term performance. Instead, they allowed us to deliver better-than-expected results.

除了對ADAS和智慧電動車技術的承諾外，過去三個季度我們對公司策略、組織結構、高階管理團隊以及產品和技術路線圖進行了重大改變。同時進行如此大規模的各種變革可能會帶來風險並影響短期結果。但由於整個小鵬團隊的相互信任和努力，這些變化並沒有影響我們的短期績效。相反，他們讓我們取得了好於預期的結果。

For the third quarter of 2023, our vehicle deliveries exceeded 40,000, representing a 72% increase quarter-over-quarter. Additionally, we achieved positive free cash flow with over RMB 1 billion in cash inflow.

2023年第三季度，我們的車輛交付量超過4萬輛，較上季成長72%。此外，我們也實現了正的自由現金流，現金流入超過10億元。

We're confident of setting a new record for vehicle deliveries in the fourth quarter. Our target is over 6 million units -- sorry, 60,000 units.

我們有信心在第四季創下車輛交付量新紀錄。我們的目標是超過 600 萬台——抱歉，是 6 萬台。

Regarding product sales, the G6 electric SUV has become the top-selling vehicle in the RMB 250,000 price range during its first quarter on the market. In October, over 8,700 G6 vehicles were delivered. This early success of the G6 is a strong validation of XPeng's ability to create and introduce a new benchmark model in the relevant market segment, thanks to our highly differentiated technologies and effective marketing. By doing so, we're bringing Smart EV technologies to a much broader customer base.

從產品銷售來看，G6純電動SUV第一季上市就成為25萬元價位段最暢銷車款。 10月，G6交付超過8,700輛。 G6的早期成功有力地驗證了小鵬汽車憑藉高度差異化的技術和有效的營銷，在相關細分市場創建和推出新標竿車型的能力。透過這樣做，我們將智慧電動車技術帶給更廣泛的客戶群。

In September, we launched the 2024 addition of XPeng G9 with a higher gross margin than that of the original version. This cost reduction was made possible through advancement in technology and engineering. In October, we delivered over 4,000 units of G9, making it one of the top-selling electric SUVs in the RMB 300,000 price segment.

9月，我們推出了2024款小鵬G9，毛利率比原版更高。技術和工程的進步使得成本降低成為可能。 10月，G9銷量超過4,000輛，成為30萬元價位段最暢銷的電動SUV之一。

In October, we achieved a record-breaking sales month with over 20,000 vehicle deliveries and secured the top spot among EV start-ups for BEV sales volume again.

10月，我們實現單月銷量突破2萬輛的歷史新高，再次穩坐電動車新創企業純電動銷量第一的寶座。

We're excited to announce that we will showcase our flagship MPV, the XPeng X9 at the Guangzhou Auto Show and start presell on November 17. The X9 is a 7-seater pure electric smart MPV built on the SEPA 2.0 architecture. It stands out from traditional MPV models with superior space design and maneuvering that perfectly combine the advantages of MPV and SUV. Moreover, the X9 comes equipped with rear wheel steering as a standard configuration, enabling a turning radius similar to that of the P7. With XNGP, our industry-leading technology that does not rely on high-definition maps, maneuvering and MPV has never been easier and more agile. These technical capabilities are not found in any other MPV models on the market. X9 will be delivered from the beginning of January 2024. We're confident that X9 will become the top seller in the large electric MPV market.

我們很高興地宣布，我們將在廣州車展上展示我們的旗艦MPV小鵬X9，並於11月17日開始預售。X9是一款基於SEPA 2.0架構打造的7座純電動智慧MPV。它以卓越的空間設計和操控性從傳統MPV車型中脫穎而出，完美結合了MPV和SUV的優點。此外，X9標配後輪轉向系統，轉彎半徑與P7相當。有了XNGP，我們不依賴高清地圖的業界領先技術，操控和MPV變得前所未有的簡單和敏捷。這些技術能力是市場上任何其他MPV車型所不具備的。 X9將於2024年1月開始交車。我們有信心X9將成為大型電動MPV市場的暢銷產品。

In 2024, we plan to launch highly competitive new models based on the SEPA 2.0 architecture. Additionally, we intend to introduce a new EV brand in the RMB 150,000 price segment. Leveraging our partnership with DiDi, China's leading mobility technology platform, we believe that this new brand will greatly accelerate our sales growth and expand our market share in the A-class EV market. Our team is currently on track to develop MONA, the first model under this brand, with an expected launch date in the third quarter of 2024. We believe that MONA is just the beginning of an exciting journey, and we're committed to pushing the boundaries of technology and keeping costs under control. This will enable us to launch Smart EV models that both autonomous driving technology in the mass market segment at a price point of RMB 150,000 or USD 20,000. This move will give our product a significant edge over other models in the segment, allowing us to reach a wider audience in the Blue Ocean market segment.

2024年，我們計劃推出基於SEPA 2.0架構的極具競爭力的新車型。此外，我們打算在15萬元價位段推出新的電動車品牌。憑藉我們與中國領先的行動技術平台滴滴的合作，我們相信這個新品牌將大大加速我們的銷售成長並擴大我們在A級電動車市場的市場份額。我們的團隊目前正在開發 MONA，這是品牌下的首款車型，預計發布日期為 2024 年第三季。我們相信 MONA 只是令人興奮的旅程的開始，我們致力於推動技術邊界和控製成本。這將使我們能夠以 15 萬元或 2 萬美元的價格在大眾市場推出搭載自動駕駛技術的智慧電動車車型。此舉將使我們的產品相對於該細分市場的其他型號具有顯著優勢，使我們能夠在藍海細分市場中接觸到更廣泛的受眾。

Our President, Ms. Wang Fengying, has been meeting a significant overhaul of our sales network, making it more efficient, flexible and expanding faster to cover more Tier 3 and Tier 4 cities. We closed almost 100 low-performing stores during the first 3 quarters this year and launched the Jupiter project, a program to recruit more competent franchisee partners. We secured investment for over 100 new stores within 2 months and established cooperation with top-tier dealer groups specializing in luxury vehicles. As we head into the fourth quarter, we're accelerating new store openings and expanding our sales network to reach our goal of 500 stores by the end of the year or early next year. These upgrades and rapid expansions, coupled with innovations and marketing, will become one of the most important drivers for our sales growth in 2024 and beyond.

我們的總裁王鳳英女士一直在對我們的銷售網絡進行重大改革，使其更加高效、靈活並更快地擴展以覆蓋更多的三四線城市。今年前三季度，我們關閉了近100家業績不佳的門市，並啟動了木星項目，旨在招募更多有能力的加盟合作夥伴。我們在2個月內投資了100多家新店，並與頂級豪華車經銷商集團建立了合作。進入第四季度，我們正在加快新店開張速度並擴大銷售網絡，以期在年底或明年初實現 500 家店的目標。這些升級和快速擴張，加上創新和行銷，將成為我們 2024 年及以後銷售成長的最重要驅動力之一。

During late September, I had the opportunity to visit the Volkswagen Group's headquarters in Wolfsburg. We had a detailed discussion with Mr. Bloom and Volkswagen's senior management regarding our comprehensive strategic partnership, which helped clarify the blueprint for our long-term strategic cooperation in technology. We also explored deeper strategic cooperation opportunities in the international market. Currently, we're jointly developing models based on the G9 platform, which is in full swing. The strategic corporation in the supply chain is also progressing effectively, and we expect cost reduction in the supply chain to generate meaningful results in the next year. To enhance our cost control, we learn from the best practice of OEMs in the industry. The progress of cost reduction in the entire process of design, R&D and manufacturing and marketing has given me confidence in accelerating the progress to reach the goal of 25% cost reduction by the end of 2024 or even exceed it, which will significantly increase the gross profit margin next year.

九月下旬，我有機會參觀了大眾汽車集團位於沃爾夫斯堡的總部。我們與布魯姆先生及大眾汽車高層就全面戰略合作夥伴關係進行了詳細討論，明確了雙方長期技術戰略合作的藍圖。我們也在國際市場探索了更深層的策略合作機會。目前，我們正在共同開發基於G9平台的車型，正在緊鑼密鼓地進行中。供應鏈策略合作也在有效進展，我們預期供應鏈成本降低將在明年產生有意義的成果。為了加強成本控制，我們學習業界主機廠的最佳實務。設計、研發、製造、行銷全流程成本降低的進展，讓我有信心加快進度，實現2024年底成本降低25%甚至超過的目標，這將大幅增加毛利率明年的利潤率。

Let's look at the cash flow. We had approximately RMB 36.5 billion in cash at the end of the third quarter of 2023, and we generated over RMB 1 billion in positive cash flow during the same quarter. With our new products and technology-driven cost reduction, we expect to see a significant improvement in our gross margin, resulting in even stronger positive free cash flow in the fourth quarter. This is an important milestone for us to achieve profitability at scale in the long term.

我們來看看現金流。截至2023年第三季末，我們擁有約365億元人民幣的現金，並在同一季度產生了超過10億元人民幣的正現金流。隨著我們的新產品和技術驅動的成本降低，我們預計毛利率將顯著改善，從而在第四季度帶來更強勁的正自由現金流。這是我們長期實現規模獲利的重要里程碑。

Looking ahead, we're projecting our total vehicle deliveries to be between 59,500 and 63,500 units in the fourth quarter of 2023. With a quarter-over-quarter growth rate of 48.7% to 58.7%. We expect our revenue to be between RMB 12.7 billion and RMB 13.6 billion during this period. We are committed to implementing transformation primarily in our organization and marketing strategy, which we believe will produce more favorable results in 2024 and beyond. This, in turn, will enable us to accelerate our growth and expand our scale from the fourth quarter of 2024. Our aim is to capitalize on growth opportunities arising from our leadership in Smart EV technologies, improve our organizational efficiency and gain a dominant market share. Our ultimate goal is to establish XPeng as the top Smart EV company by 2020 -- by 2030.

展望未來，我們預計 2023 年第四季的汽車總交付量將在 59,500 輛至 63,500 輛之間。季增率為 48.7% 至 58.7%。我們預計在此期間我們的收入將在人民幣127億元至人民幣136億元之間。我們致力於主要在組織和行銷策略方面實施轉型，我們相信這將在 2024 年及以後產生更有利的結果。這反過來將使我們能夠從2024 年第四季開始加速成長並擴大規模。我們的目標是利用我們在智慧電動車技術領域的領先地位所帶來的成長機會，提高我們的組織效率並獲得主導市場占有率.我們的最終目標是到 2020 年乃至 2030 年將小鵬汽車打造成頂級智慧電動車公司。

Thank you, everyone. And with that, I'll now turn the call over to our VP of Finance, Mr. James Wu to discuss our financial performance for the third quarter of 2023.

謝謝大家。現在，我將把電話轉給我們的財務副總裁 James Wu 先生，討論我們 2023 年第三季的財務表現。

Thank you, Xiaopeng. Now I'd like to provide a brief overview of our financial results for the third quarter of 2023. I'll reference RMB only in my discussion today, unless otherwise stated. Our total revenues were RMB 8.53 billion for the third quarter of 2023, an increase of 25% year-over-year, and an increase of 68.5% quarter-over-quarter. Revenues from vehicle sales were RMB 7.84 billion for the third quarter of 2023, representing an increase of 25.7% year-over-year, and an increase of 77.3% quarter-over-quarter. The year-over-year and quarter-over-quarter increases were mainly attributable to the accelerating sales growth of the G6 in the third quarter of 2023.

謝謝你，小鵬。現在我想簡要概述我們 2023 年第三季的財務業績。除非另有說明，我在今天的討論中僅提及人民幣。 2023年第三季我們的總營收為人民幣85.3億元，年增25%，季增68.5%。 2023年第三季汽車銷售收入為人民幣78.4億元，年增25.7%，季增77.3%。年比和環比成長主要得益於2023年第三季G6銷量加速成長。

Gross margin was negative 2.7% for the third quarter of 2023 compared with 13.5% for the same period of 2022, and negative 3.9% for the second quarter of 2023. Excluding the negative impact attributable to the G3i end of production, as we described in the prior quarter, the gross margin would have been breakeven for this quarter.

2023 年第三季的毛利率為負 2.7%，而 2022 年同期為 13.5%，2023 年第二季的毛利率為負 3.9%。 不包括 G3i 停產帶來的負面影響，正如我們在與上一季度相比，本季的毛利率將達到盈虧平衡。

Vehicle margin was negative 6.1% for the third quarter of 2023 compared with 11.6% for the same period of 2022, and negative 8.6% for the second quarter of 2023. The year-over-year decrease was explained by: first, the inventory write-downs amounting to RMB 0.23 billion related to the model G3i as we finish the rest of the production in its life cycle, with a negative impact of 2.9 percentage points on vehicle margin; and secondly, increased sales promotions and the expiry of new energy vehicle subsidies. The quarter-over-quarter increase was primarily attributable to the improvement in our product mix and battery cost reduction.

2023年第三季車輛利潤率為負6.1%，而2022年同期為11.6%，2023年第二季為負8.6%。年減的原因是：首先，庫存寫入-由於G3i車型已完成其生命週期的剩餘生產，因此導致了2.3億元的下降，對車輛利潤率產生了2.9個百分點的負面影響；二是促銷力道加大以及新能源汽車補貼到期。環比成長主要歸因於我們產品結構的改善和電池成本的降低。

R&D expenses were RMB 1.31 billion for the third quarter of 2023, representing a decrease of 12.9% year-over-year and a decrease of 4.5% quarter-over-quarter. The year-over-year and quarter-over-quarter decreases were mainly in line with the development timing and progress of new vehicle programs.

2023年第三季研發費用為人民幣13.1億元，較去年同期下降12.9%，季減4.5%。年比和環比下降主要與新車專案的開發時機和進度一致。

SG&A expenses were RMB 1.69 billion for the third quarter of 2023, representing an increase of 4% year-over-year and an increase of 9.6% quarter-over-quarter. The year-over-year and quarter-over-quarter increases were primarily attributable to the higher commissions paid to our franchise stores.

2023年第三季SG&A費用為人民幣16.9億元，年增4%，季增9.6%。同比和環比增長主要歸因於向我們的特許經營店支付的佣金增加。

As a result of the foregoing, loss from operations were RMB 3.16 billion for the third quarter of 2023 compared with RMB 2.18 billion for the same period of 2022, and RMB 3.09 billion for the second quarter of 2023. Fair value loss on derivative liability was RMB 0.97 billion for the third quarter of 2023. On July 26, 2023, our company entered into an agreement with Volkswagen Group to issue up to 4.99% of our company's ordinary shares for a fixed purchase price of USD 15 per ADS. Until the transaction closes, fluctuations in the fair value of the forward share purchase agreement were measured through profit and loss resulting in a noncash loss of RMB 0.97 billion for this quarter.

綜上所述，2023 年第三季經營虧損為人民幣 31.6 億元，而 2022 年同期為人民幣 21.8 億元，2023 年第二季營業虧損為人民幣 30.9 億元。衍生性負債公允價值損失為2023年第第三季9.7億元。2023年7月26日，本公司與大眾汽車集團達成協議，以每股ADS 15美元的固定購買價格發行最多4.99%的我公司普通股。截至交易完成，遠期股份購買協議的公允價值波動透過損益計量，導致本季非現金損失9.7億元人民幣。

Net loss was RMB 3.89 billion for third quarter of 2023 compared with RMB 2.38 billion for the same period of 2022, and RMB 2.8 billion for the second quarter of 2023. Non-GAAP net loss, which excludes share-based compensation expenses and fair value loss on derivative liability, was RMB 2.79 billion for the third quarter of 2023, compared with RMB 2.22 billion for the same period of 2022, and RMB 2.67 billion for the second quarter of 2023.

2023 年第三季淨虧損為人民幣38.9 億元，而2022 年同期為人民幣23.8 億元，2023 年第二季淨虧損為人民幣28 億元。非公認會計原則淨虧損，不包括股權激勵費用和公允價值衍生性商品負債損失，2023年第三季為人民幣27.9億元，2022年同期為人民幣22.2億元，2023年第二季為人民幣26.7億元。

As of September 30, 2023, our company had cash and cash equivalents, restricted cash, short-term investments and time deposits in total of RMB 36.48 billion. The positive free cash flow in Q3, as Xiaopeng mentioned earlier, was the main driver for our higher quarter-over-quarter cash balance. To be mindful of the length of our earnings call, I would encourage listeners to refer to our earnings press release for more details on our third quarter financial results. This concludes our prepared remarks. We'll now open the line to questions. Operator, please go ahead.

截至2023年9月30日，本公司持有現金及現金等價物、限制性現金、短期投資及定期存款合計人民幣364.8億元。正如小鵬之前提到的，第三季的正自由現金流是我們現金餘額較上季增加的主要動力。為了注意我們的財報電話會議的長度，我鼓勵聽眾參考我們的財報新聞稿，以了解有關我們第三季財務業績的更多詳細資訊。我們準備好的演講到此結束。我們現在開始提問。接線員，請繼續。

(Operator Instructions) Your first question comes from Tim Hsiao with Morgan Stanley.

（操作員說明）您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 competition. As we noticed that there are more tech companies like Huawei and Xiaomi challenging the company makers. We noticed that tech companies have the advantages of a cross division ecosystem, as well as the channel that remain quite difficult for carmakers to replicate. How would XPeng make up for such shortcomings versus tech players in the following quarters? That's my first question.

（外語）所以我的第一個問題是關於比賽的。我們注意到，越來越多的科技公司，如華為和小米，正在挑戰公司製造商。我們注意到科技公司擁有跨部門生態系統的優勢，以及汽車製造商仍難以複製的通路優勢。在接下來的幾個季度裡，小鵬汽車將如何彌補與科技公司的差距？這是我的第一個問題。

[Interpreted] Thank you so much for your question. This is Xiaopeng. Now this is a very good question, but not an easy question. I'd like to start by reviewing my path entrepreneurly experience. I first started with an international Internet company. And also, and then I went on to invest in XPeng. I mean your question has always been a question of thinking for many years in the past of my experience. Let me give you an example. When I was in the internet -- mobile internet business, we saw a lot of competition, and there are different ways to compete in that landscape. For example, people turn to acquiring traffic, and that is a good way to actually make up for different shortcomings in the ecosystem or the lack of different capabilities or abilities in different aspects. And you saw a lot of crossover from different players in different sectors. And you realize that the problem with using or relying PLA on traffic is that there are a lot of media that has the traffic that is not transferable. Let me give you an example. Audience from traditional -- watching traditional TV, may not be the same audience who rely so heavily on mobile phones, et cetera.

[解釋]非常感謝您的提問。這是小鵬。這是一個非常好的問題，但不是一個簡單的問題。首先我想回顧一下我的創業經驗。我先在一家國際互聯網公司開始工作。而且，然後我就繼續投資小鵬汽車。我的意思是，你的問題一直是我多年來思考的問題。讓我舉一個例子。當我從事網路——行動互聯網業務時，我們看到了很多競爭，並且在這個領域有不同的競爭方式。例如人們轉向獲取流量，這實際上是一個很好的方式來彌補生態系統中不同的短板或不同方面的不同能力或能力的缺乏。你看到了不同領域不同參與者的許多交叉。您意識到使用或依賴 PLA 的流量問題在於，有許多媒體的流量無法轉移。讓我舉一個例子。來自傳統觀看傳統電視的觀眾可能與嚴重依賴手機等的觀眾不同。

And so that actually leads to a lot of failures. But right now, you also are seeing a lot of competitions from players across different sectors who tried to actually enter a new domain using different ecosystem or capabilities their own sector. For example, you see players from the real estate, the mobile smartphone industry and also from the Internet and a lot of tech companies as well. So when we compare ourselves against these players from other sectors, we have to really come down to our internal capability. We have to look at what we have as our strength, for example. We are very strong with our technology. We're very strong with our AI capability and also manufacturing capability as well as the supply chain as well. So really what help us to differentiate ourselves and stand out from the crowd is that we can actually focus on what we already have and expand using different partnerships. For example, we've been started -- we have been very committed to actually expand our ecosystem by -- for example, investing in our other formats of mobility, different vehicle format. We have invested in our robotics technology and flying cars, et cetera.

這實際上導致了很多失敗。但現在，您也看到來自不同行業的參與者的許多競爭，他們試圖使用自己行業的不同生態系統或能力來實際進入新領域。例如，你會看到來自房地產、行動智慧型手機產業、網路以及許多科技公司的參與者。因此，當我們與其他行業的參與者進行比較時，我們必須真正歸結為我們的內部能力。例如，我們必須看看我們擁有什麼優勢。我們的技術非常強大。我們的人工智慧能力、製造能力以及供應鏈都非常強大。因此，真正幫助我們脫穎而出並脫穎而出的是，我們實際上可以專注於我們已經擁有的東西，並利用不同的合作夥伴關係進行擴展。例如，我們已經開始 - 我們一直非常致力於透過投資我們的其他形式的移動、不同的車輛形式來實際擴展我們的生態系統。我們投資了機器人技術和飛行汽車等。

We also have announced our partnership with Volkswagen in different aspects, including supply chain technology, global sales and marketing and also aftersales and services as well. And in August, we also announced our partnership with DiDi, a leading mobility tech platform, to expand our market share in the A-class vehicle segment also to build the foundation for our future expansion in Robotaxi, et cetera. Now these are just some of the examples of how we try to make up for our shortcoming in the ecosystem. And we believe that by combining different capabilities through this partnership, we can actually strengthen our overall competency, building on the strong foundation that we already have, which is our technology and our core manufacturing capability as a carmaker.

我們也宣布與大眾汽車在不同方面建立合作夥伴關係，包括供應鏈技術、全球銷售和行銷以及售後服務。 8月份，我們也宣布與領先的出行科技平台滴滴合作，擴大我們在A級車領域的市場份額，也為我們未來在Robotaxi等領域的拓展奠定基礎。現在，這些只是我們如何嘗試彌補生態系統缺陷的一些例子。我們相信，透過這種合作關係結合不同的能力，我們實際上可以加強我們的整體能力，建立在我們已經擁有的堅實基礎上，這就是我們作為汽車製造商的技術和核心製造能力。

(foreign language) So my second question is about the pricing power because as mentioned earlier in the call, I think the company targets to cut the 2024 production cost by 25% as the company optimizes design and efficiency, et cetera. However, without enhancing the pricing power, very likely the benefit of cost savings might still be depleted by the constant price on the cutting, especially quite a lot of carmakers outsource their pricing strategies these days to like Tesla and BYD and just respond passively. So how does XPeng plan to strengthen its pricing power on top of the cost reduction into 2024? That's my second question.

（外語）所以我的第二個問題是關於定價能力，因為正如前面在電話會議中提到的，我認為隨著公司優化設計和效率等，公司的目標是在2024 年將生產成本削減25% 。然而，在不增強定價能力的情況下，成本節約的好處很可能仍會因為價格的不斷下調而被消耗殆盡，尤其是目前不少車企將定價策略外包給特斯拉、比亞迪等公司，只是被動應對。那麼到2024年，小鵬汽車計畫如何在降低成本的基礎上增強定價能力呢？這是我的第二個問題。

[Interpreted] Thank you for your question. First of all, I agree with your opinion that pricing power is very important. And in the long term, we definitely want to become the Apple in automaking, which has very, very strong bargaining power and pricing power. As a carmaker, an OEM, we believe that there are several aspects that is important that our pricing power. One is scale, and the other is cost control capability as well as our branding and differentiation. Definitely, the scale of sales affect our cost and it's also the same the other way around as well. And right now, we are in the process of reshaping our overall capability as well as our brand. It is very important that we can actually, first of all, build our brand image as well as contributing to the customer value by really strengthening our differentiation. Our President, Ms. Wang Fengying is a big advocate on internal and also systematic innovation. So going forward, going into 2024 and 2025, we will continue our effort and commitment in the second -- scaling up our sales and volume, controlling our cost, building our brand as well as our differentiation in order to gain bigger pricing power.

[解釋]謝謝你的提問。首先，我同意你的觀點，定價能力非常重要。從長遠來看，我們肯定想成為汽車製造領域的蘋果，擁有非常非常強的議價能力和定價能力。作為汽車製造商、原始設備製造商，我們認為有幾個方面對我們的定價能力很重要。一是規模，二是成本控制能力以及我們的品牌和差異化。當然，銷售規模會影響我們的成本，反之亦然。目前，我們正在重塑我們的整體能力和品牌。非常重要的是，我們實際上首先可以透過真正加強我們的差異化來建立我們的品牌形象並為客戶價值做出貢獻。我們的總裁王鳳英女士是內部創新和系統創新的大力倡導者。因此，展望未來，進入2024年和2025年，我們將繼續我們第二年的努力和承諾——擴大我們的銷售和數量，控制我們的成本，建立我們的品牌以及我們的差異化，以獲得更大的定價權。

Your next question comes from Ming-Hsun Lee with Bank of America.

您的下一個問題來自美國銀行的 Ming-Hsun Lee。

(foreign language) So after Ms. Wang joined XPeng, the channels sales stores reforming is continuing. So do you have any metrics regarding to evaluate your progress on your channel reform? And besides that, do we have any target to -- about the long-term direct sales and also dealership percentage?

（外文）所以王女士加入小鵬汽車後，通路銷售店的改革仍在持續。那麼您有什麼指標來評估您的通路改革進度嗎？除此之外，我們是否有任何關於長期直銷和經銷商比例的目標？

[Interpreted] Thank you for your question. Now I would like to address this by giving you a little bit of background information about our President, Ms. Wang. She comes from (foreign language) Great wall, and traditional OEM, and she has been excellent in controlling costs, developing channels and also leading innovative systematic overhaul of the company. So in the first few months that she joined our company, she's spent a lot of time observing what we currently have. We used to have this hybrid channel of having our cell phone stores together with some franchisees, but we had a total control of the pricing for all of the stores -- I mean, all of the channels. And going into Q3 -- I mean for the past quarter in Q3, we have already set our future strategy of channel innovation or reform, which will actually cater to different kinds of dynamics or changes coming to -- going into 2025 to 2026. We are talking about, for example, significantly more models that we're going to launch in 2025. And also we take into consideration the future market competition, market environment and also our future expansion to cover not just Tier 1, Tier 2 cities but also Tier 3, Tier 4 cities as well.

[解釋]謝謝你的提問。現在我想向大家介紹一下我們的王主席的一些背景資訊。她來自（外語）長城，傳統主機廠，在控製成本、開拓管道以及領導公司創新系統化改革方面表現出色。因此，在她加入我們公司的頭幾個月裡，她花了很多時間觀察我們目前擁有的東西。我們曾經擁有這種混合管道，將我們的手機商店與一些特許經營商放在一起，但我們完全控制了所有商店的定價 - 我的意思是所有管道。進入第三季度——我的意思是在第三季度的最後一個季度，我們已經制定了未來的通路創新或改革策略，這實際上將迎合2025年至2026年即將到來的不同類型的動態或變化。我們例如，我們正在談論，例如，我們將在 2025 年推出更多的車型。我們還考慮到未來的市場競爭、市場環境以及我們未來的擴張，不僅覆蓋一二線城市，還覆蓋三四線城市也是如此。

So in the mid- to long term, we aim to have at least 5 franchise stores that are capable of not only doing sales, but services as well. And in the mid- to long term, we also plan to have a total of at least 1,000 service centers across the country that can help us to provide better services to our customers. And going into Q4, we plan to open 100 new stores that can allow us to expand our sales network more extensively. And so by the end of 2023, we're going to have a total of 500 stores of different modes. And over time, because it takes time for those new stores to build up their capability and experience, so we believe that the time of the Q1 and Q2 next year will be the time when we could actually see a lot of growth in our deliveries and sales, and that can also allow us to see growth in deliveries and sales in lower-tier cities in China as well because we are going to build more stores in those areas and regions.

所以從中長期來看，我們的目標是擁有至少5家專營店，既能做銷售，又能做服務。而且中長期來看，我們也計劃在全國總共有至少1000個服務中心，可以幫助我們為客戶提供更好的服務。進入第四季度，我們計劃開設 100 家新店，這可以讓我們更廣泛地擴展我們的銷售網絡。所以到2023年底，我們將總共有500家不同模式的商店。隨著時間的推移，因為這些新店需要時間來建立他們的能力和經驗，所以我們相信明年第一季和第二季的時間將是我們真正可以看到我們的交付和數量大幅增長的時候。銷售，這也可以讓我們看到中國低線城市的交付和銷售的成長，因為我們將在這些地區和地區建立更多商店。

In terms of the pricing control, we will remain very strong in terms of the extent of price control, and we are going to evaluate the performance of different stores from different aspects, including their NPS, and we can equip them and empower them with a wide range of tools, and we can control the procedures, and we can do a lot more things to maintain our strong control of the service qualities of those stores as well.

在價格管控方面，我們在價格管控的力度上會保持非常強的力度，我們會從不同的方面來評估不同門店的表現，包括他們的NPS，我們可以給他們裝備、賦能。工具種類繁多，我們可以控制流程，我們還可以做更多的事情來保持對這些商店的服務品質的強有力的控制。

Now in terms of the efficiencies of the performance of the stores, I agree with you. And we believe that it is very important that we keep improving the overall efficiencies of our stores. Because currently, we see still a lot of room for growth there for improvement there. And by 2024, we expect to see a huge uptake in terms of the efficiencies of our store.

現在就商店績效的效率而言，我同意你的觀點。我們相信，不斷提高商店的整體效率非常重要。因為目前，我們看到那裡仍然有很大的成長空間和改進空間。到 2024 年，我們預計商店的效率將大幅提高。

(foreign language) So my second question is related to export business. So in October, you also shipped a few thousands of cars to overseas market. So in the future, will you consider to build more direct operated stores or you will rely more on the distributors locally? And regarding your current product portfolio, do you think that you will export all the models overseas or you will select a few models for overseas market?

（外語）我的第二個問題是關於出口業務的。所以10月你們也向海外市場發運了幾千輛汽車。那麼未來你們會考慮建立更多的直營店還是更依賴當地的經銷商？那麼就你們目前的產品組合而言，你們認為是全部車型出口海外，還是選擇部分車型面向海外市場？

Lastly, do you have any plan for Southeast Asia market?

最後，您對東南亞市場有什麼計畫嗎？

Ming, it's Brian. Let me address your question. Regarding the international expansion, you're correct that we currently employ sort of hybrid model in the Nordic countries. We have direct own stores as well as our partnership and agents. But going forward, we're probably going to opt to use more of a collaborative partnership model using either agents or distributors for specific markets. So that's probably going to be likely the mix will shift towards the more partnership-oriented model.

明，是布萊恩。讓我回答你的問題。關於國際擴張，您說得對，我們目前在北歐國家採用了某種混合模式。我們有自己的直營商店以及合作夥伴和代理商。但展望未來，我們可能會選擇更多地使用合作夥伴關係模式，針對特定市場使用代理商或經銷商。因此，這種組合很可能會轉向更以合作夥伴為導向的模式。

In terms of products that for international markets, you saw that we currently have G9 and P7i currently starting in Europe already. We will be launching G6 as a global product next year. So I would say it's only the subset of product that we will design and approve for international use, not all our products. So the products I mentioned are the ones that we currently decided for global markets. And also, we have plans for right-hand driving models next year as well. For example, by the end of next year, we plan to roll out our first right-hand driving model likely to be based on the G6 model. So with that, we'd be able to tackle Southeast Asia market. So that would definitely be in our sight, and we'll be also looking at other right-hand driving model markets as well.

就面向國際市場的產品而言，您看到我們目前已經在歐洲推出了 G9 和 P7i。我們將於明年推出 G6 作為全球產品。所以我想說，這只是我們將設計和批准供國際使用的產品的子集，而不是我們的所有產品。所以我提到的產品是我們目前決定面向全球市場的產品。此外，我們也計劃明年推出右側駕駛車型。例如，到明年年底，我們計劃推出首款右側駕駛車型，可能基於 G6 車型。這樣，我們就能進軍東南亞市場。因此，這肯定會在我們的視線範圍內，我們也會關注其他右側駕駛車型市場。

Your next question comes from Tina Hou with Goldman Sachs.

您的下一個問題來自高盛的蒂娜·侯。

(foreign language) So my first question is regarding our sales volume. So according to our fourth quarter sales volume guidance, it seems that November and December will be flat versus the October volume. So just wondering what is the reason here? Are we just being conservative? Or is there any specific trends that we've observed in the industry?

（外語）所以我的第一個問題是關於我們的銷售量。因此，根據我們第四季度的銷售指導，11 月和 12 月的銷售似乎將與 10 月持平。所以只是想知道這裡的原因是什麼？我們只是保守嗎？或者我們觀察到該行業有什麼具體趨勢嗎？

And then the second question is regarding gross margin. So management mentioned, excluding the impairment loss of G3, the vehicle gross margin was breakeven in third quarter '23. So the last time we delivered over 40,000 units of vehicles was in the fourth quarter of 2021. And then back then, the vehicle gross margin was actually 10.9%. So just wondering what is leading to the differential in gross margin?

第二個問題是關於毛利率。因此管理階層提到，除去G3的減損損失，23年第三季車輛毛利率已達到損益兩平。所以我們上一次交付超過4萬輛汽車是在2021年第四季。當時，汽車毛利率實際上是10.9%。那麼只是想知道是什麼導致了毛利率的差異？

And also related to that, management mentioned that next year, we're expecting to see a great gross margin enhancement. Obviously, we know the cost reduction is pretty on track, even ahead of our progress. But then how much price decline are we factor into this gross margin expectation because we see that this year -- for the 3 quarters this year, an average ASP actually declined by 6% year-over-year. So how much of the competition are we factoring in into next year in terms of gross margin guidance?

與此相關的是，管理階層提到明年，我們預期毛利率將大幅提高。顯然，我們知道成本削減已步入正軌，甚至領先於我們的進度。但是，我們將價格下降多少考慮到毛利率預期中，因為我們看到今年——今年的三個季度，平均平均售價實際上比去年同期下降了 6%。那麼，在明年的毛利率指導方面，我們會考慮多少競爭因素呢？

So Tina, this is Brian. Let me first answer your first question. The guidance of 60,000 this quarter, I think, reflect our confidence of the progress we've made in the recent months. We think it's actually a very important milestone for us to reach on average 20,000 per month. So this is, I think, is a very, I would say, important milestone for us. And also by giving this guidance, we also are considering the competition as well as macroeconomic backdrop that we're facing in the fourth quarter. We are very confident with the guidance because obviously, the backlog we have already as well as the momentum we've seen in our order intake. But I think this is also reflective of the market at the moment, and we hope that this is a realistic target for us.

蒂娜，這是布萊恩。我先回答你的第一個問題。我認為，本季 60,000 人的指導反映了我們對最近幾個月取得的進展的信心。我們認為，達到平均每月 20,000 人實際上是一個非常重要的里程碑。所以我認為這對我們來說是一個非常重要的里程碑。透過提供這項指導，我們也考慮了我們在第四季度面臨的競爭和宏觀經濟背景。我們對這項指導非常有信心，因為顯然，我們已經積壓了訂單，並且我們在訂單接收方面也看到了勢頭。但我認為這也反映了目前的市場，我們希望這對我們來說是一個現實的目標。

And now I'll hand over to James for the growth process comments.

現在我將把成長過程的評論交給詹姆斯。

Yes, Tina. From a gross margin perspective, first of all, as we talked about earlier, even if we compare to -- on a year-over-year basis, the reduction in margin came from, as you mentioned, the G3 EOP impact that we have booked in this quarter. And this is -- this will be the final impact from the G3 EOP perspective. And secondly, going into 2023, the new energy vehicle subsidy has been removed from the market. And that obviously has an impact on our margin as well. You did mention our ASP has reduced over time. I believe that's a overall market dynamic as well because we are -- we've been trying to improve the product competitiveness for our product as well throughout this journey.

是的，蒂娜。從毛利率的角度來看，首先，正如我們之前談到的，即使我們與去年同期相比，利潤率的下降也來自，正如您所提到的，我們對 G3 EOP 的影響本季已預訂。從 G3 EOP 的角度來看，這將是最終的影響。其次，進入2023年，新能源汽車補貼退出市場。這顯然也對我們的利潤率產生了影響。您確實提到我們的平均售價隨著時間的推移而降低。我相信這也是整體市場動態，因為我們在整個過程中一直在努力提高我們產品的產品競爭力。

In the meantime, as Xiaopeng mentioned, we do expect our gross margin to improve in Q4 meaningfully, particularly our vehicle margin will become positive, we believe, in the fourth quarter. And one proving factor as we improve our product mix is that as we launched a new G9 in 2024, we see the gross profit margin is actually higher than our older version of G9. This is a great proving point for us to continue to drive profitability of our products. Hopefully, that answers your question.

同時，正如小鵬汽車所提到的，我們確實預計第四季度的毛利率將顯著改善，特別是我們相信，第四季度我們的汽車利潤率將轉為正值。我們改進產品組合的一個證明因素是，當我們在 2024 年推出新款 G9 時，我們發現毛利率實際上高於舊版 G9。這是我們持續提高產品獲利能力的一個很好的證明。希望這能回答你的問題。

(foreign language) I just have a very quick follow-up. So in terms of the cost reduction technology, improvement cost reduction, which are the models that can benefit from the cost reduction?

（外語）我只是有一個非常快速的跟進。那麼在降本技術、改良降本方面，哪些車款能夠從降本中受益呢？

[Interpreted] From all of the models that we have will benefit from the cost reduction driven by technology advancement. But among our top-selling models, we are going to put more effort into driving up the cost reduction.

【解讀】從我們所有的車型來看，都將受益於技術進步所帶來的成本降低。但在我們最暢銷的車款中，我們將投入更多的努力來推動成本的降低。

Your next question comes from Paul Gong with UBS.

你的下一個問題來自瑞銀集團的龔保羅。

(foreign language) So my first question is regarding the positioning of the MONA brand. I understand the pricing point is generally lower than our main brands, but it's not really too much lower. And how should we differentiate the brand positioning of the 2 brands? Is MONA also going to be available at our current stores to be sold simultaneously?

（外語）所以我的第一個問題是關於MONA品牌的定位。據我所知，定價通常低於我們的主要品牌，但也沒有低太多。兩個品牌的品牌定位又該如何區分呢？ MONA 是否也會在我們現有的商店同步銷售？

[Interpreted] Thank you. We are going to disclose more information regarding MONA next year, I mean 2024. We'll talk about this new brand in terms of spending positioning, it's channels and after-sale services. And right now, we are actively preparing for the launch of MONA for next year. One thing that I can address or I can share is that there's definitely going to separate channels -- going to have separate channels to sell MONA with -- apart from our current XPeng lineups.

[已翻譯] 謝謝。明年我們會透露更多關於MONA的信息，我是說2024年。我們會從消費定位、通路和售後服務方面來談論這個新品牌。目前，我們正在積極準備明年MONA的推出。我可以解決或分享的一件事是，除了我們目前的小鵬陣容之外，肯定會有單獨的管道 - 會有單獨的管道來銷售 MONA。

(foreign language) So my second question is regarding your earlier comments, you have discussed with Volkswagen regarding the global market. How do you think the business model between Stellantis and Leapmotor that grind the Chinese products leverage with global OEMs, global footprint and going to the global market? Would that accelerate your globalization in terms of the market reach?

（外語）我的第二個問題是關於您先前的評論，您已經與大眾討論了全球市場的問題。您如何看待Stellantis與零跑車將中國產品與全球主機廠撬動、全球化佈局、走向全球市場的商業模式？這會加速您的市場全球化進程嗎？

Paul, this is Charles Zhang. I will address the question. I think first of all, our joint development on -- for the model based on the G9 platform has been going on really efficiently. And I think we're going to achieve a milestone very soon. And I think the international market collaboration is one of the strategic initiatives we are exploring with our partner, Volkswagen. And I think that we are -- I think Volkswagen has global manufacturing footprint and also the supply chain capabilities. I think there's a lot of areas we can learn from our partner and also leverage each other's strengths in the international market. We wouldn't comment on other company's collaboration model. Thank you.

保羅，這是張朝陽。我將回答這個問題。我認為首先，我們基於G9平台的模型的共同開發一直在非常有效地進行。我認為我們很快就會實現一個里程碑。我認為國際市場合作是我們與合作夥伴大眾汽車正在探索的策略舉措之一。我認為大眾汽車擁有全球製造足跡和供應鏈能力。我認為我們可以向合作夥伴學習很多領域，也可以在國際市場上發揮彼此的優勢。我們不會評論其他公司的合作模式。謝謝。

Your next question comes from Pingyue Wu with Citic Securities.

你的下一個問題來自中信證券的吳平岳。

(foreign language) So my first question is about to sell cars in the lower-tier markets. How do we think of the demand for the lower-tier cities? And how do we utilize our strengths in those markets?

（外語）所以我的第一個問題是關於在低線市場銷售汽車。我們如何看待低線城市的需求？我們如何利用我們在這些市場的優勢？

(foreign language) My second question is about the research and development for 2024. What will the R&D total amount like increase next year? And where will this money be spent on?

（外語）我的第二個問題是關於2024年的研發，明年的研發總量會增加多少？而這筆錢會花在哪裡呢？

[Interpreted] Let me address your first question. Regarding our product lineup, we are going to meet the lower-tier city demand by offering MONA and other new products. And right now, we're not in a position to disclose too much specific information, but what I can see -- what I can say right now is that we aim to offer top-notch ADAS technology and capabilities to a lower-tier market as well, including Tier 2 or way to Tier 4 cities' audience -- I mean, customers. And we are going to set those autonomous driving capability as standard configurations in our future lineups for those cities as well. And we are also going to reform our distribution channels for the lower-tier markets.

[解讀]我先回答你的第一個問題。在我們的產品陣容方面，我們將透過提供MONA和其他新產品來滿足低線城市的需求。目前，我們還不能透露太多具體訊息，但我能看到的——我現在能說的是，我們的目標是向低端市場提供一流的 ADAS 技術和能力也包括二線或四線城市的受眾——我的意思是顧客。我們也將把這些自動駕駛能力作為我們未來針對這些城市的產品陣容的標準配備。我們也將改革低線市場的分銷管道。

Regarding your second question on the R&D expenses, actually, we've been putting in a lot of thoughts in the past 3 quarters, and we've actually done a lot in -- starting from the beginning of this year to reduce our R&D fee. Let me give you several examples. When we started the overhaul in our restructuring of the organization, the first thing we did is cut R&D expenses. And we also have been advocating this module-based designed rationale that allow us to put everything on the same architecture to SEPA 2.0. We also have actually encouraged and asked our suppliers to put their R&D expenses into the BOM to reduce the overall R&D expenses on our front.

關於你提到的第二個問題，研發費用，實際上，過去三個季度我們思考了很多，也做了很多工作——從今年年初開始，降低我們的研發費用。 。讓我舉幾個例子。當我們開始組織架構改革時，我們首先做的就是削減研發費用。我們也一直倡導這種基於模組的設計原理，使我們能夠將所有內容置於與 SEPA 2.0 相同的架構上。我們實際上也鼓勵並要求我們的供應商將研發費用納入BOM，以減少我們整體的研發費用。

The last thing that we -- another thing that we did was to actually equip our R&D team with more systematic tools and ways that can allow better integration and mutual compatibility of different parts so that our overall R&D expenses can be cut even further. So going into 2024, we are going to actually strengthen several capabilities. The first one is our overall design capability of our models and products. We also will strengthen our craftsmanship, which is also critical in manufacturing. We will continue to improve our smartification. I mean, the intelligence of our products will also do R&D improvement in the -- for the international market to strengthen our globalization capability. And we will also put in some R&D efforts to prepare for our long-term development and also for our long-term strategy as well.

我們最後做的一件事——我們做的另一件事是實際上為我們的研發團隊配備了更系統化的工具和方法，可以讓不同部分更好地整合和相互兼容，從而使我們的整體研發費用可以進一步削減。因此，進入 2024 年，我們將實際加強多項能力。第一個是我們的模型和產品的整體設計能力。我們也將加強我們的工藝，這對於製造也至關重要。我們將不斷提升智能化水準。我的意思是，我們產品的智慧化也會針對國際市場進行研發改進，以增強我們的全球化能力。我們也會投入一些研發工作，為我們的長期發展、為我們的長期策略做準備。

So in terms of the absolute value of our R&D expenses in 2024, definitely it's going to be higher than this year.

所以從我們2024年研發費用的絕對值來看，一定會比今年更高。

The next question comes from Jing Chang with CICC.

下一個問題來自中金公司的常靜。

(foreign language) Okay. This is my only one question regards to autonomous driving, which we believe will become the key sector in the few next years. So how do we expect to (inaudible) the competitive landscape of the industry? Will it be very quickly to be seen in the maybe next 1 to 2 years, how we will be taking a much longer time? We also see that many traditional OEMs have chosen to cooperate with other companies in the practice of autonomous driving. So in contrast, can you share some details of our advantages of our in-house research?

（外語）好的。這是我關於自動駕駛的唯一一個問題，我們相信自動駕駛將成為未來幾年的關鍵領域。那我們如何預期（聽不清楚）產業的競爭格局？可能在接下來的一到兩年內就會很快看到，我們會如何需要更長的時間？我們也看到許多傳統主機廠在自動駕駛的實務上都選擇與其他企業合作。那麼相較之下，您能否詳細介紹一下我們內部研究的優點？

[Interpreted] Thank you for your question. This is Xiaopeng. I think the upcoming 5 years will actually usher in an era of rapid development for ADAS adoption and technology development. It's going to be very similar to the stage where we see the rapid development of NEV penetration from back in 2018 to 2022. And I remember back in 2020, we saw a huge uptick in the penetration rate of new energy vehicles in the market. And I think, right now, in terms of ADAS technology adoption, we're still in a warming up stage in terms of the technology readiness also for the whole industry as well. We definitely are seeing more and more younger customers who are embracing this new technology who are willing to try this new experience. And in the future, we are very optimistic about the adoption rate improvement. Because we -- first of all, we're very excited to see that there are more and more participants in the industry that are helping us to educate the wider audience that are cultivating the market to get it ready for this upcoming exciting era of ADAS adoption.

[解釋]謝謝你的提問。這是小鵬。我認為未來5年實際上將迎來ADAS採用和技術發展快速發展的時代。這與2018年到2022年新能源汽車滲透率快速發展的階段非常相似。我記得早在2020年，我們就看到新能源汽車在市場上的滲透率大幅上升。我認為，目前就 ADAS 技術的採用而言，整個產業的技術準備也仍處於預熱階段。我們確實看到越來越多的年輕客戶正在接受這項新技術，並願意嘗試這種新體驗。而未來，我們對採用率的提升非常樂觀。因為我們——首先，我們非常高興地看到越來越多的行業參與者正在幫助我們教育更廣泛的受眾，他們正在培育市場，為即將到來的激動人心的 ADAS 時代做好準備採用。

Now regarding our advantages or strengths in having this full stack in-house R&D capability, there's a long list of examples of strength that I can give you. I mean, just name a few, localization, the cell development of the technology is one of them. And the second thing is control the cost of production. Because even though we are seeing a wider customer base that are trying to embrace the technology, they still want to have both safety in terms of experience and also affordability as well. So having full stack development capability definitely allow us to control the cost better. And another good advantage of having that capability is that it can allow us to embrace upcoming and their cutting-edge technology very timely as well. For example, in the past year, we saw this emergence of the application of large language models and having full stack R&D capability allow us do full domain end-to-end application of this new technology, which would not be possible without that capability, and that is actually happening with a lot of our peers who are struggling to adopt new technology as well.

現在，關於我們擁有全端內部研發能力的優勢或優勢，我可以為您提供一長串優勢範例。我的意思是，僅舉幾例，在地化、細胞開發技術就是其中之一。第二件事是控制生產成本。因為即使我們看到更廣泛的客戶群正在嘗試接受這項技術，他們仍然希望在體驗方面既安全又負擔得起。所以擁有全端開發能力肯定能讓我們更好地控製成本。擁有這種能力的另一個好處是，它可以讓我們非常及時地擁抱即將到來的技術及其尖端技術。比如說去年我們看到了大語言模型應用的出現，有了全端的研發能力，我們可以把這個新技術做全領域的端到端的應用，如果沒有這個能力，這是不可能的，事實上，我們的許多同行也在努力採用新技術。

And another good point that I would like to make is that we are seeing more and more tighter and tighter coupling with AI technology with car manufacturing capability or R&D capability. And we need to have, for example, the NextGen E/E architecture, the unified ADAS domain, smart cockpit and voice assistant to actually embrace this tighter coupling with AI technology. And that actually requires a lot of integration on not just the hardware level, but also hardware together with software and AI as well. And we are very proud that currently we are very capable of doing that, thanks to our full stack R&D capability.

我想說的另一個好點是，我們看到人工智慧技術與汽車製造能力或研發能力的結合越來越緊密。例如，我們需要擁有下一代 E/E 架構、統一的 ADAS 域、智慧駕駛艙和語音助手，才能真正實現與人工智慧技術的更緊密耦合。這實際上不僅需要硬體層面的大量集成，還需要硬體與軟體和人工智慧的整合。我們非常自豪，由於我們的全端研發能力，目前我們非常有能力做到這一點。

And the last question is coming from Nick Lai with JPMorgan.

最後一個問題來自摩根大通的 Nick Lai。

(foreign language). I recall in the second quarter results call, which may indicate that the 4Q vehicle margin will likely turn to positively territory. Is that guidance is still [slow] at the moment? And at the same time, we are launching the new A segment sedan under MONA brand with pricing point of about RMB 150,000. At the same time, the new product will be equipped with a high-end -- ended product. How do we reconcile the competition in the low-end segment and also (inaudible) will equip the product with much more advanced ADAS content?

（外語）。我記得在第二季的業績電話會議上，這可能表明第四季的汽車利潤率可能會轉向正值。目前該指導仍然[緩慢]嗎？同時，我們也將推出MONA品牌的新款A-Class轎車，售價約15萬元。同時，新品將配備高端—高端產品。我們如何協調低端市場的競爭，並且（聽不清楚）為產品配備更先進的 ADAS 內容？

Thanks, Nick. This is James. So I'll answer your questions one by one. First of all, to reconfirm, we do believe our fourth quarter vehicle margin will turn positive to confirm your question. And this is bolstered by a better mix of products in Q4 compared to Q3. And as I mentioned earlier, we did see some level of battery cost reduction that came through towards the end of Q3. So for Q4, we'll see a full quarter of better cost reduction coming through and barring the lithium prices stable over time.

謝謝，尼克。這是詹姆斯。那我就一一回答大家的問題。首先，再次確認，我們確實相信我們第四季度的車輛利潤率將轉為正數，以證實您的問題。與第三季相比，第四季的產品組合更好，這也支撐了這一點。正如我之前提到的，我們確實看到第三季末電池成本下降。因此，在第四季度，我們將看到整整一個季​​度更好的成本削減，除非鋰價格隨著時間的推移保持穩定。

Going into 2024, we do expect our gross margin to be meaningfully improved versus 2023 on a full year basis. And this is also bolstered by our continued cost reduction to achieve our 25% or even more cost reduction targets, as Xiaopeng mentioned earlier. We will have better product mix next year as we launch, for example, G9, which will be amongst the highest -- X9 I'm sorry, X9, the highest gross margin product at this point in our portfolio.

進入 2024 年，我們預計全年毛利率將較 2023 年大幅提高。正如小鵬之前提到的，這也得益於我們持續降低成本，以實現 25% 甚至更多的成本降低目標。明年我們將推出更好的產品組合，例如，G9，它將成為最高的產品組合——X9，對不起，X9，目前我們產品組合中毛利率最高的產品。

And obviously, the new products coming from our SEPA 2.0 platform next year, we'll be -- we'll have better margin as well.

顯然，明年我們的 SEPA 2.0 平台推出的新產品，我們也將獲得更好的利潤。

And lastly, to your question on MONA, you're correct. It is targeting A segment, but we do see the MONA has a very good cost control and planning process, a very competitive from a cost perspective. first of all, and second of all, MONA will help us achieve great scale, which will benefit to the entire company from a scale perspective as we've seen our cost allocation, and therefore, improve our margin. And lastly, we do expect more controlled associated sales expense related to the MONA sales because of the scale. So it should not be a drag from a bottom line perspective in terms of profitability. Thank you.

最後，關於你關於 MONA 的問題，你是對的。它的目標是 A 細分市場，但我們確實看到 MONA 擁有非常好的成本控制和規劃流程，從成本角度來看非常有競爭力。首先，第二點，MONA 將幫助我們實現巨大的規模，從規模的角度來看，這將有利於整個公司，因為我們已經看到了我們的成本分配，從而提高了我們的利潤率。最後，由於 MONA 的規模，我們確實預期與 MONA 銷售相關的相關銷售費用將會得到更多控制。因此，從獲利能力的角度來看，這不應該成為一種拖累。謝謝。

Was there a follow-up question?

有後續問題嗎？

No, all good. Thank you.

不，一切都好。謝謝。

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

謝謝。由於現在沒有其他問題了，我想將電話轉回公司進行結束語。

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 Piacente Financial Communications.

再次感謝您今天加入我們。如果您還有其他疑問，請隨時透過我們網站或Piacente Financial Communications提供的聯絡方式聯絡小鵬汽車投資者關係部。

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。現在您可以斷開線路。謝謝。

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

[本文字記錄中標記為[已翻譯]的部分是由現場通話中的口譯員朗讀的。]