Xpeng Inc (XPEV) 2023 Q4 法說會逐字稿

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

女士們、先生們，大家好。感謝您耐心等待小鵬汽車 2023 年第四季及財年獲利電話會議（操作員說明） 今天的電話會議正在錄音。

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

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 fourth quarter and fiscal year 2023 earnings conference call. Our financial and operating results were issued via 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，歡迎參加小鵬汽車第四季及2023財年財報電話會議。我們的財務和經營業績今天早些時候透過 Newswire 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 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；企業融資投資副總裁張朝陽先生；財務會計副總裁 James Wu 先生和我自己。

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

管理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. I am pleased to share that Xpeng experienced impressive growth in our delivery volume quarter-by-quarter in 2023, which exceeded 60,000 in Q4, up 171% year-over-year, thanks to our proactive change to business strategy and organizational structure, as well as the new product launches.

【解讀】大家好。我很高興地告訴大家，小鵬汽車在2023年的季度交付量取得了令人矚目的增長，第四季度交付量超過6萬輛，同比增長171%，這得益於我們積極調整業務戰略和組織架構。以及新產品的發布。

In total, we delivered over 140,000 units in 2023. Our efforts to focus on platform-based R&D, technology-driven cost reduction, and operational efficiency improvement have begun to yield positive results.

2023年，我們的交付量總計超過14萬台。我們在平台化研發、技術驅動的成本降低和營運效率提升方面的努力已開始取得積極成果。

In Q4, our growth margin improved to 6.2%, with a vehicle margin expansion of 10 percentage points compared to the previous quarter. Our company achieved a positive free cash flow of more than RMB 6 billion for the second half of 2023, and achieved for the first time positive full-year operating cash flow.

第四季度，我們的成長率提高至 6.2%，其中整車利潤率比上一季擴大了 10 個百分點。本公司2023年下半年實現正自由現金流超過60億元人民幣，首次實現全年正營運現金流。

As of the end of 2023, we had over RMB 45 billion in cash, which puts us in a strong financial position to deliver high quality and rapid growth in a highly competitive environment. I believe this is just the beginning of the change, and I look forward to bringing more improvements and positive results in our capabilities and operations in 2024.

截至2023年底，我們擁有超過450億元的現金，這使我們擁有強大的財務實力，能夠在激烈的競爭環境中實現高品質、快速的成長。我相信這只是變革的開始，我期待在 2024 年我們的能力和營運方面帶來更多改進和積極成果。

In 2024, we will be celebrating the 10th anniversary of our founding, and it will also be the first year filled with intense competition in the Chinese Automobile industry. Since the first quarter of the year, there has been an industry-wide price war, which has been growing increasingly fierce. Against this backdrop, several EV startups have been forced to wind down their operations, and certain renowned technology companies have terminated their investment in Auto business. These dynamics suggest that the race for smart EVs for the larger wave of growth in intensified price competition, we have adjusted our strategies in a number of fields.

2024年，我們將迎來成立十週年，也是中國汽車產業競爭激烈的元年。一季以來，全產業價格戰愈演愈烈。在此背景下，多家電動車新創公司被迫退出，一些知名科技公司也終止了對汽車業務的投資。這些動態表明，智慧電動車爭奪更大一波成長的價格競爭加劇，我們在多個領域調整了策略。

We enhanced our organization and efficiency in an all-around manner. We made significant improvements in the quality of our operations and fully closed-loop customer experience. We built comprehensive competitiveness in products, technologies, and supply chain to support our planned larger scale.

全面提升組織效率。我們在營運品質和全閉環客戶體驗方面取得了顯著提升。打造產品、技術、供應鏈等綜合競爭力，以支持規模化發展。

We upgraded our sales and service capabilities in China and overseas markets. We made a full scenario others and autonomous driving more accessible and affordable, and reaccelerated our global expansion.

提升中國及海外市場的銷售和服務能力。我們讓其他場景和自動駕駛變得更加容易獲得和負擔得起，並重新加速了我們的全球擴張。

To put it differently, we are long-term oriented and never plan for the future based on the assumption of short-term or growth at small scale. As I formulated our strategies and tactics for the knockout round of EV competition, I am excited about the strategic opportunities underway. We have completed the framework of our organizational adjustment, which starts to deliver positive results. We are about to embark on a strong product cycle and launch more than 10 new vehicle models over the next 3 years, together with the corresponding left-hand drive and right-hand drive models for the international market, as well as facelift versions, there will be nearly 30 projects SOP in the next 3 years.

換句話說，我們以長期為導向，從不基於短期或小規模成長的假設來規劃未來。當我制定電動車淘汰賽的策略和戰術時，我對正在出現的戰略機會感到興奮。我們的組織調整框架已基本完成，並已初見成效。我們即將開啟強大的產品週期，未來3年將推出10餘款新車，以及針對國際市場的相應左駕、右駕車型，以及改款版本。未來3年將有近30個項目SOP。

Thanks to our strong capabilities to leverage modules in platform and higher efficiency in R&D. Incremental R&D expenses for these projects is limited. We are leveraging artificial intelligence to drive our autonomous driving technology forward, which enables us to lower cost and deploy extraordinary experience in more vehicle models with a new business model. Lastly, international expansion opens new avenues for our growth.

得益於我們強大的平台模組能力和更高的研發效率。這些項目增加的研發費用有限。我們正在利用人工智慧來推動我們的自動駕駛技術向前發展，這使我們能夠降低成本，並以新的商業模式在更多車型上部署非凡的體驗。最後，國際擴張為我們的成長開闢了新的途徑。

The upcoming competition isn't solely focused on gaining a larger market share in the short term. It is also about demonstrating the automaker's capacity to maintain its leadership position by achieving high-quality and efficient growth, showcasing expertise in smart technology, expanding globally, and creating competitive advantages through innovative products and business models.

即將到來的競爭不僅僅是為了在短期內獲得更大的市場份額。它還展示了汽車製造商透過實現高品質、高效成長、展示智慧技術專業知識、全球擴張以及透過創新產品和商業模式創造競爭優勢來保持領先地位的能力。

From my perspective, in order to capitalize on the strategic opportunities from smart technology and global markets, XPeng must continue to make innovative breakthroughs and address any organizational shortcomings. In my view, in the past, we were either really -- we never really showed very obvious shortcomings or advantages, but going forward, we will need to address these shortcomings definitely.

在我看來，為了抓住智慧技術和全球市場的策略機遇，小鵬汽車必須不斷創新突破，解決組織上的短板。在我看來，過去我們確實——我們從未真正表現出非常明顯的缺點或優勢，但展望未來，我們絕對需要解決這些缺點。

By 2024, we are looking to take our marketing strategy to the next level by creating a new and potent marketing team. We will upgrade our marketing strategies to leverage advantages of mobile internet platforms for the automobile sector. In the past, automobile marketing was primarily dominated by PGC on centralized platforms.

到 2024 年，我們希望透過創造一支新的、強大的行銷團隊，將我們的行銷策略提升到一個新的水平。升級行銷策略，發揮汽車產業行動互聯網平台優勢。過去，汽車行銷主要由中心化平台上的PGC主導。

Now, we will focus more on decentralized social media platforms and make full use of the UGC from a broad base of customers. For example, we launched a campaign during the Chinese New Year to call for videos sharing of ADAS experience by Xpeng customers. Over 20,000 customers participated in the event, spreading the reputation of Xpeng ADAS from Tier 1 cities to hundreds of cities across the nation.

現在，我們將更加關注去中心化的社群媒體平台，充分利用廣大客戶群的 UGC。例如，我們在過年期間發起了一項活動，號召小鵬汽車客戶分享 ADAS 體驗的影片。超過2萬名客戶參與了此次活動，將小鵬汽車ADAS的聲譽從一線城市傳播到全國數百個城市。

In the past month, customer interest grew by over 100% in key social platforms. Through marketing innovation, we should not only achieve a substantial increase in word of mouth in sales leads, but also continuously strengthen Xpeng's brand recognition as a leader in autonomous driving technology.

過去一個月，主要社群平台的客戶興趣成長超過 100%。透過行銷創新，不僅要實現銷售線索口碑的大幅提升，還要不斷強化小鵬汽車作為自動駕駛技術領導者的品牌認知。

As part of our 2024 sales growth strategy, we need to expand and transform our sales channel network. In 2023, we accomplished a series of upgrades and optimizations to our sales channels, which included closing over 130 low-performing stores and adding over 160 strong franchise partners through our Jupiter projects.

作為我們 2024 年銷售成長策略的一部分，我們需要擴大和改造我們的銷售通路網路。 2023年，我們完成了一系列銷售管道的升級與優化，包括關閉130多家業績不佳的門市，並透過木星計畫新增160多家實力雄厚的加盟合作夥伴。

Even if these impacts, these closing down of the stores and the reorganization actions that we have taken had some impact on our Q4 last year and Q1 this year's sales, and we believe that these changes not only improved our sales channel capabilities, but also will help us expand our presence in the 40 new low-tier cities.

即使有這些影響，我們所採取的這些關店和重組行動對我們去年第四季和今年第一季的銷售也有一定的影響，我們相信這些變化不僅提高了我們的銷售管道能力，而且還將幫助我們擴大在40 個新低線城市的業務。

In 2024, while we cultivate our new stores, we will continue to broaden our sales network coverage and accelerate channel expansion in lower-tier markets, such as in the Fifth and Sixth cities. Our objective is to increase the number of sales stores to 600 by the third quarter of 2024. Our sales network will continue to grow following the launch of our new brand product.

2024年，我們在培育新店的同時，將持續擴大銷售網路覆蓋範圍，加速五、六線城市等低線市場的通路拓展。我們的目標是到 2024 年第三季將銷售店數量增加到 600 家。隨著新品牌產品的推出，我們的銷售網絡將繼續擴大。

Starting in the second quarter of this year, as our new sales stores gradually open for business, we will roll out an innovative franchise model. We are asking our franchise partners to take inventory, which is equivalent to their sales in half a month. We expect the new model will significantly speed up deliveries and incentivize the franchisees to drive more sales. We'll use our systems and monitoring mechanism to manage inventory closely and ensure consistency in customer experience no matter where they are. This will also allow us to overcome issues in the traditional franchise sales model.

從今年第二季開始，隨著新銷售店的逐步開業，我們將推出創新的特許經營模式。我們要求加盟商盤點庫存，相當於他們半個月的銷售額。我們預計新模式將顯著加快交付速度並激勵加盟商推動更多銷售。我們將使用我們的系統和監控機制來密切管理庫存，並確保客戶體驗的一致性，無論他們身在何處。這也將使我們能夠克服傳統特許經營銷售模式中的問題。

We have brought together our smart technologies, power train, and vehicle platforms onto a comprehensive intelligent platform to ensure maximum compatibility across various models. By adopting a platform-based R&D approach and economies of scale, we can reduce costs in the supply chain and manufacturing processes, which can accelerate our goal of achieving an over 25% cost reduction.

我們將智慧技術、動力總成和車輛平台整合到一個綜合智慧平台上，以確保各種車型之間的最大相容性。透過採用平台化的研發方式和規模經濟，我們可以降低供應鏈和製造流程的成本，加速實現成本降低25%以上的目標。

Additionally, this approach significantly improved the technology iteration efficiency. From a product planning perspective, both Jiaming and I will continue to drive product innovation as we believe that it is the best way to maximize the value creation. We understand that the differentiation factor brought by innovative products is a far greater advantage than any competitive advantage among homogenous products could ever be.

此外，這種方法顯著提高了技術迭代效率。從產品規劃的角度來看，我和嘉明都會繼續推動產品創新，因為我們相信這是最大化價值創造的最佳途徑。我們深知，創新產品帶來的差異化因素遠比同質產品之間的競爭優勢更大。

For example, with the X9, we have created a new category that suits both 4 and 7 feature vehicles, which appeals to customers who are looking for NPVs and large SUVs. X9 became the best-selling model of BEV with 3 rows of seats in just the first 2 months of delivery. We expect that the delivery of X9 in March and April will continue to increase significantly month-on-month.

例如，透過 X9，我們創建了一個適合 4 人座和 7 人座功能車的新類別，這吸引了尋找 NPV 和大型 SUV 的客戶。 X9交貨僅2個月，就成為三排座純電動車最暢銷車款。我們預計，3、4月X9的交車量將持續季比大幅成長。

Furthermore, we are officially launching a new brand targeting the RMB 100,000 to RMB 150,000 price range during the Beijing Auto Show next month. The market of the RMB 100,000 to RMB 150,000 price range has huge market potential. But it is extremely difficult to provide great products with all-round competitiveness, including high-level ADAS in this price range and even more difficult to achieve profitability at the same time. It takes a comprehensive capabilities at scale to realize this goal.

此外，我們也將在下個月的北京車展期間正式推出新品牌，定位於10萬元至15萬元的價格區間。 10萬元至15萬元價格區間的市場，市場潛力大。但要提供具有全面競爭力的優秀產品，包括這個價位的高級ADAS，是極其困難的，同時實現盈利更是困難。實現這一目標需要大規模的綜合能力。

Many of our peers are also exploring this price range, but still none can provide excellent ADAS experience at this range. After 10 years of preparation. Today, we are finally ready. Our new brand is committed to building the first AI-powered smart card for the young generation. This brand will be a new species of innovation. The first vehicle model under this new brand will officially launch and commence deliveries in the third quarter. We are confident that it will be the most striking and sought-after A-class BEV model in this segment.

我們的許多同行也在探索這個價格範圍，但仍然沒有一家能夠在這個範圍內提供出色的 ADAS 體驗。經過10年的準備。今天，我們終於準備好了。我們的新品牌致力於為年輕一代打造第一張人工智慧智慧卡。這個品牌將是一個新的創新物種。新品牌首款車型將於第三季正式上市並開始交付。我們有信心它將成為該細分市場中最引人注目、最受追捧的 A-Class 純電動車型。

Furthermore, we will introduce multiple models on this platform and overseas markets in the coming future. In addition to this new brand, the second half of this year we will deliver a new Xpeng branded model bringing the number of new products we launched this year to 3 and will unveil more new products.

此外，未來我們也將在該平台和海外市場推出多款車款。除了這個新品牌之外，今年下半年我們還將推出一款新的小鵬品牌車型，使我們今年推出的新產品數量達到3個，並將推出更多新產品。

We all know that the last decade was the decade of new energy and the next decade would be the decade of smart technology. AI-powered smart EV technology and architecture are no longer just a mid- to long-term goal. At Xpeng, we have already begun the process of AI-defined cars that are centered on autonomous driving. The advanced differentiation edges stemming from AI R&D capabilities and AI product experiences will determine how quickly the transition from traditional ICE to smart EVs occurs and shape the auto industry's long-term competitive landscape.

我們都知道，過去的十年是新能源的十年，未來的十年將是智慧科技的十年。 AI驅動的智慧電動車技術和架構不再只是一個中長期目標。在小鵬汽車，我們已經開始了以自動駕駛為核心的人工智慧定義汽車的進程。 AI研發能力和AI產品體驗所帶來的先進差異化優勢，將決定傳統內燃機轉型為智慧電動車的速度，並塑造汽車產業的長期競爭格局。

This presents a tremendous opportunity for us. That is why we have been increasing our long-term investment in AI and recruited a number of top talents for AI with international vision. In the second quarter of this year, we will achieve the mass production of AI-enabled ADAS with large model capabilities. This will be the first mass-produced automotive artificial intelligence and automotive cognitive engine in the China automobile industry, making our software smarter.

這為我們提供了巨大的機會。為此，我們不斷增加對人工智慧的長期投入，引進一群具有國際視野的人工智慧頂尖人才。今年第二季度，我們將實現具有大模型能力的AI ADAS量產。這將是中國汽車產業第一個量產的汽車人工智慧和汽車認知引擎，讓我們的軟體更加智慧。

Furthermore, we are firmly committed to promoting equity and inclusion in the Advanced Autonomous Driving. We will continue to lead the innovation of autonomous driving technology, making it affordable and accessible to a much broader customer base and enter into the international markets. We will continue to expand our scale and strengthened our technology leadership as well as accelerate the commercialization of our industry-leading technologies.

此外，我們堅定致力於促進先進自動駕駛的公平和包容性。我們將繼續引領自動駕駛技術的創新，讓更廣泛的客戶群負擔得起、用得起，並進入國際市場。我們將繼續擴大規模，加強技術領先地位，加速業界領先技術的商業化。

Earlier this year, we introduced XNGP product users, across 200 cities nation-wide. XNGP others enables intelligence driving our urban roads in February, XNGP is a monthly active user penetration rate reached an impressive 83%. We are proud to be the industry leader in terms of active user scale, user experience and mileage penetration rate.

今年早些時候，我們引進了XNGP產品用戶，遍佈全國200個城市。 XNGP等讓智慧駕駛我們的城市道路 2月份，XNGP的月活躍用戶滲透率達到了令人印象深刻的83%。我們很自豪能夠在活躍用戶規模、用戶體驗和里程滲透率方面成為業界領先者。

During the Chinese New Year travel rush, XNGP helped our car owners drive over 70 million kilometers. The average daily utilization rate of XNGP on highways and in urban areas reached 67% and 49% respectively. To take our XNGP-assisted driving experience to the next level, we have set a challenging goal for ourselves. We want to benchmark our XNGP-assisted driving experience in core cities such as Beijing, Shanghai, Guangzhou, and Shenzhen against Waymo's and Robotaxi experience in San Francisco.

春節出遊高峰期間，XNGP幫助車主行駛超過7,000萬公里。 XNGP在高速公路和城市地區的每日平均利用率分別達到67%和49%。為了將我們的 XNGP 輔助駕駛體驗提升到一個新的水平，我們為自己設定了一個具有挑戰性的目標。我們希望將北京、上海、廣州和深圳等核心城市的 XNGP 輔助駕駛體驗與舊金山的 Waymo 和 Robotaxi 體驗進行比較。

As our ADAS approaches the inflection point of experience, signification cost reduction will emerge as another key driver to accelerate its further penetration. We plan to employ innovative technology solutions to reduce XNGP-related hardware costs by 50%, starting with the new model to be launched in the second half of this year. Our aim is to significantly boost our smart EV's competitiveness in terms of cost, accelerating the widespread adoption of advanced smart technologies.

隨著我們的 ADAS 接近體驗拐點，降低成本將成為加速其進一步滲透的另一個關鍵驅動因素。我們計劃從今年下半年推出的新型號開始，採用創新技術解決方案，將XNGP相關硬體成本降低50%。我們的目標是大幅提升智慧電動車的成本競爭力，加速先進智慧技術的廣泛採用。

We have ambitious plans to expand our business globally by taking advantage of the increasing adoption of electric vehicle in international markets, and we plan to significantly accelerate the expansion of overseas business in 2024.

我們制定了雄心勃勃的計劃，利用國際市場上電動車日益普及的機會，在全球範圍內拓展業務，併計劃在 2024 年大幅加速海外業務的擴張。

In the second half of 2023, we launched G9 into the Northern European market, and we were thrilled to receive a tremendous response. Within just 2 months of its launch in Norway and Denmark, the Xpeng G9 became the best-selling mid to large BEV SUV in this category, which clearly shows that our smart EVs with advanced technology offer exceptional value to customers worldwide.

2023 年下半年，我們向北歐市場推出了 G9，我們很高興收到了巨大的迴響。在挪威和丹麥上市後的短短兩個月內，小鵬G9就成為該類別中最暢銷的中大型純電動SUV，這清楚地表明我們擁有先進技術的智慧電動車為全球客戶提供了卓越的價值。

In the second quarter of 2024, we plan to introduce an international left-hand drive G6 model, which will be followed by the right-hand drive version in the second half of the year. We believe that the G6 will be even more successful than the G9 in terms of global sales potential and will become a best-seller worldwide.

2024年第二季度，我們計畫推出國際左駕G6車型，下半年將推出右駕版本。我們相信，就全球銷售潛力而言，G6將比G9更成功，並成為全球暢銷產品。

To expand our sales channels, we will concentrate on collaborating with high-quality dealers to efficiently enter key global markets, including Western Europe, Middle East, Southeast Asia, and Commonwealth nations.

為了拓展我們的銷售管道，我們將集中力量與優質經銷商合作，高效進入全球主要市場，包括西歐、中東、東南亞、英聯邦國家。

We have achieved significant milestones in our strategic cooperation with the Volkswagen Group. Recently, we entered into a master agreement with them for platform and software strategic technical collaboration, and the joint sourcing program has also been launched. We are happy to see that strategic synergies have started to materialize.

我們與大眾汽車集團的策略合作取得了重要的里程碑。近期，我們與他們簽訂了平台和軟體策略技術合作主協議，聯合採購計畫也已啟動。我們很高興看到策略協同效應已經開始顯現。

By 2024, we expect revenue generated from platform and software services to become a meaningful and ongoing contributor to our financial results, especially to growth margin. We have created an innovative business model in the automotive industry, generating excellent returns on our R&D investment in electrification, intelligent driving, and AI technology.

到 2024 年，我們預計平台和軟體服務產生的收入將為我們的財務表現（尤其是成長率）做出有意義且持續的貢獻。我們在汽車產業中開創了創新的商業模式，在電動化、智慧駕駛、人工智慧技術等方面的研發投入獲得了豐厚的回報。

Xpeng and Volkswagen have formed a long-term strategic alliance with complementary strengths and mutual benefits. Going forward, we will work together to unleash greater strategic synergies and address industry shifts and challenges.

小鵬汽車與福斯汽車已形成優勢互補、互惠互利的長期策略聯盟。未來，我們將共同發揮更大的策略協同效應，應對產業變化和挑戰。

We have proactively started a new round of transformation to strengthen our competitiveness since the fourth quarter of 2023. We focus more on marketing on short video platforms while cutting inefficient marketing spending on sales leads. We phased out a number of underperforming sales stores and we adapt our supply chain and production to an intense product launch cycle for a large number of models.

自2023年第四季起，我們積極啟動新一輪轉型，以增強競爭力。我們更專注於短影片平台的行銷，同時削減銷售線索上的低效行銷支出。我們逐步淘汰了一些表現不佳的銷售商店，並對我們的供應鏈和生產進行調整，以適應大量車型的緊張產品發布週期。

We faced intensified competition and the above-mentioned adjustments in marketing and sales channel in the first quarter, taking challenges both internally and externally into consideration. We now expect our total vehicle deliveries to be between 21,000 and 22,500 units in the first quarter of 2024, up 15.2% to 23.4% year-over-year. We expect our first quarter revenue to be between RMB 5.8 billion and RMB 6.2 billion, up 43.8% to 53.7% year-over-year.

一季我們面臨激烈的競爭以及上述行銷和銷售管道的調整，考慮到內部和外部的挑戰。我們目前預計 2024 年第一季的汽車總交付量將在 21,000 輛至 22,500 輛之間，年增 15.2% 至 23.4%。我們預計第一季營收將在人民幣58億元至人民幣62億元之間，年增43.8%至53.7%。

Although, there would be challenges due to transformation in the near-term, I have seen the initial positive results in March. I believe that the positive effects of these changes will be evident starting from the second quarter and second half of the year. We expect the growth in deliveries in second quarter of 2024 will increase significantly on both quarter-on-quarter and year-on-year terms.

雖然短期內轉型會遇到一些挑戰，但我在三月已經看到了初步的正面成果。我相信這些變化的正面效應從第二季和下半年開始就會顯現出來。我們預計2024年第二季的交屋量較上季和年比均將大幅成長。

Thank you everyone. With that, I will now turn the call over to our VP of Finance Mr. James Wu to discuss our financial performance for the fourth 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 年第四季的財務表現。

Thank you, Xiaopeng. Now, let me provide a brief overview of our financial results for the fourth quarter of 2023. I'll reference RMB only in my discussion today, unless otherwise stated.

謝謝你，小鵬。現在，讓我簡要概述我們 2023 年第四季的財務業績。除非另有說明，我在今天的討論中僅提及人民幣。

Our total revenues were RMB 13.05 billion for the fourth quarter of 2023, an increase of 153.9% year-over-year and an increase of 53% quarter-over-quarter. Revenues from vehicle sales were RMB 12.23 billion for the fourth quarter of 2023, representing an increase of 162.3% year-over-year and an increase of 55.9% quarter-over-quarter. The year-over-year and quarter-over-quarter increases were mainly attributable to the accelerating sales growth of the G6 and G9 in the fourth quarter of 2023.

2023年第四季我們的總營收為人民幣130.5億元，年增153.9%，季增53%。 2023年第四季汽車銷售收入為人民幣122.3億元，年增162.3%，季增55.9%。年比和環比成長主要得益於2023年第四季G6和G9銷量加速成長。

Gross margin was 6.2% for the fourth quarter of 2023 compared with 8.7% for the same period of 2022 and negative 2.7% for the third quarter of 2023. Vehicle margin was 4.1% for the fourth quarter of 2023 compared with 5.7% for the same period of 2022 and negative 6.1% for the third quarter of 2023.

2023 年第四季毛利率為6.2%，2022 年同期毛利率為8.7%，2023 年第三季毛利率為負2.7%。2023 年第四季汽車毛利率為4.1%，2023 年第四季毛利率為5.7% 2022 年第三季負 6.1%。

The year-over-year decrease was explained by: first, the inventory provisions and losses on purchase commitments as a result of upgrades of existing models with a negative impact of 1.9 percentage points; and secondly, increased sales promotions and the expiry of new energy vehicle subsidies, offset partially by cost reduction and improvement in product mix. The quarter-over-quarter increase was primarily attributable to the cost reduction and better product mix.

年比下降的原因是：一是現有車型升級造成的庫存撥備和採購承諾損失負面影響達1.9個百分點；其次，促銷活動的增加和新能源汽車補貼的到期，部分被成本降低和產品結構改善所抵銷。環比成長主要歸因於成本降低和更好的產品組合。

R&D expenses were RMB 1.31 billion for the fourth quarter of 2023, representing an increase of 6.3% year-over-year and an increase of 0.1% quarter-over-quarter. The year-over-year increase was mainly in line with the development timing and progress of new vehicle programs.

2023年第四季研發費用為人民幣13.1億元，較去年同期成長6.3%，季增0.1%。年比成長主要與新車專案的開發時機和進度一致。

SG&A expenses were RMB 1.94 billion for the fourth quarter of 2023, representing an increase of 10.3% year-over-year and an increase of 14.4% quarter-over-quarter. The year-over-year and quarter-over-quarter increases were primarily attributable to the higher commissions paid to the franchise stores, driven by higher sales volume.

2023年第四季SG&A費用為人民幣19.4億元，年增10.3%，季增14.4%。同比和環比增長主要歸因於銷售增加推動向特許經營店支付的佣金增加。

Furthermore, the quarter-over-quarter increase was also due to higher marketing, promotional and advertising expenses to support vehicle sales. As a result of the foregoing, loss from operations was RMB 2.05 billion for the fourth quarter of 2023 compared with RMB 2.52 billion for the same period of 2022 and RMB 3.16 billion for the third quarter of 2023.

此外，環比成長也歸因於支持汽車銷售的行銷、促銷和廣告費用增加。綜上所述，2023年第四季營運虧損為人民幣20.5億元，而2022年同期為人民幣25.2億元，2023年第三季營運虧損為人民幣31.6億元。

Fair value gain on derivative liability was RMB 0.56 billion for the fourth quarter of 2023. This is due to our share purchase agreement with Volkswagen Group entered in Q3. Until the transaction closes, the fluctuations in the fair value of the forward share purchase agreement were measured through profit and loss, resulting in a non-cash gain of RMB 0.56 billion in this quarter.

2023年第四季衍生負債公允價值收益為5.6億元。這是由於我們在第三季與大眾汽車集團簽訂了股份購買協議。截至交易完成，遠期購股協議公允價值的波動透過損益計量，導致本季非現金收益5.6億元。

On December 6, 2023, the transaction was successfully completed. Net loss was RMB 1.35 billion for the fourth quarter of 2023 compared with RMB 2.36 billion for the same period of 2022 and RMB 3.89 billion for the third quarter of 2023. On the cash front, we've achieved an important milestone of operating cash flow positive for the full year of 2023. This, together with the strategic investment from Volkswagen helped bolster our liquidity.

2023年12月6日，交易順利完成。 2023年第四季淨虧損為人民幣13.5億元，而2022年同期淨虧損為人民幣23.6億元，2023年第三季淨虧損為人民幣38.9億元。在現金方面，我們實現了經營現金流的重要里程碑2023 年全年業績樂觀。這一點，再加上大眾汽車的策略投資，有助於增強我們的流動性。

As of December 31, 2023, our cash -- our company had cash and cash equivalents, restricted cash, short-term investments and time deposits in total of RMB 45.7 billion. This will be a strong foundation to support our growth strategy in the years to come.

截至2023年12月31日，我們的現金－我們公司擁有現金及現金等價物、限制性現金、短期投資及定期存款共計人民幣457億元。這將成為支持我們未來幾年成長策略的堅實基礎。

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 fourth quarter and full year 2023 financial results. This concludes our prepared remarks. We'll now open the call to questions.

為了注意我們財報電話會議的長度，我鼓勵聽眾參考我們的財報新聞稿，以了解有關我們第四季度和 2023 年全年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。

Operator, please go ahead.

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 product strategy because XPeng plans to launch about 13 new models and faceless in the next 3 years, which implies the company will have a new model coming in the market, basically every quarter, starting from the second half of this year. So with such an intense launch schedule, what would you do to avoid the capitalization from the new product and keep the sales momentum of the whole lined-up? As over the past few years, we noticed that whenever XPeng launch the new cars, the sales of a model always decline. So how should we avoid that? That's my first question.

（外語）所以我的第一個問題是關於產品策略，因為小鵬汽車計劃在未來三年內推出大約13款新車型和不露面的車型，這意味著該公司基本上每個季度都會有一款新車型上市，從今年下半年。那麼，在如此緊張的發布計劃下，您將如何避免新產品的資本化並保持整個產品線的銷售勢頭？與過去幾年一樣，我們注意到，每當小鵬汽車推出新車時，一款車型的銷售量總是會下降。那我們該如何避免這種情況呢？這是我的第一個問題。

[Interpreted] So not in beginning of this year, and this is a Jiaming Wu and myself, we have done, and this was our #1 task. And it is very important to carry out the planning and that involves the planning for products, the technology, supply chain as well as the manufacturing and the launches of products. And if one would like to do this, usually, the preparation should really start 2 to 3 years beforehand. And this would involve, for instance, looking at to the price range, the size of different cars, the capabilities and as well as time lines.

[解讀]所以不是在今年年初，這是吳家明和我自己已經完成的，這是我們的第一號任務。其中規劃非常重要，涉及產品的規劃、技術的規劃、供應鏈的規劃、產品的製造和上市。如果想這樣做，通常需要提前兩到三年開始準備。例如，這將涉及考慮價格範圍、不同汽車的尺寸、功能和時間表。

So especially with our brand-new products and these products and for instance, certain products, we do not really have a lot of volume in the past. And for our product team and starting from Q1 of last year, and we had reorganized the team and in order to be able to come up with a product that is suitable for the new technology. And at the moment, we simply would only need 1 architecture, 2 powertrain and 2 autonomous driving system, and this would be able to support our products.

因此，特別是對於我們的全新產品和這些產品，例如某些產品，我們過去的銷售量並不大。對於我們的產品團隊來說，從去年第一季開始，我們對團隊進行了重組，以便能夠拿出適合新技術的產品。目前，我們只需要1個架構、2個動力系統和2個自動駕駛系統，就可以支援我們的產品。

And in the past, we have had situations whereby once a product has been launched into market. However, the supply chain wasn't strong enough to cope with the demand for delivery. And this time around, we had also looked at and discussed very comprehensively regarding this issue in terms of supply chain management, manufacturing, and we will also have a digital process in place to make sure that all the processes are done and followed exactly the same to ensure quality improvement, production improvement, efficiency improvement as well as cost reduction.

過去，我們也遇過產品一旦投入市場就出現的情況。然而，供應鏈不夠強大，無法滿足交付需求。這次，我們也從供應鏈管理、製造方面非常全面地研究和討論了這個問題，我們還將建立一個數位化流程，以確保所有流程的完成和遵循完全相同確保提高品質、提高產量、提高效率、降低成本。

You will be able to see after Q3 of this year, and we will have different launches, and this is something that we have done for the past 12 months to 18 months. And as I have said, and this would be, for instance, in terms of the price range, the models of different vehicles and not only just for China but also globally for our procurement as well. And in the market, you can also see that as the market changes, and we'll also see our peers and competitors, they will also be playing their cards very quickly. And often, these state changes and adjustments will be made on a quarterly basis or every 2 quarters.

今年第三季之後你就能看到，我們將推出不同的產品，這是我們過去12個月到18個月所做的事情。正如我所說，這將是，例如，在價格範圍、不同車輛的型號方面，不僅針對中國，而且針對我們的全球採購。而且在市場上，你也可以看到，隨著市場的變化，我們也會看到我們的同業和競爭對手，他們也會很快出牌。通常，這些狀態變化和調整將按季度或每兩個季度進行一次。

And as I have mentioned earlier in my financial report and the statements, it is not only enough to focus on the short term, but also on the long term and in the meantime, staying flexible and be able to adapt to the changes and what is core of being able to achieve that is really to put together a very strong team...

正如我之前在財務報告和報表中提到的，不僅要專注於短期，還要著眼於長期，同時保持靈活性，能夠適應變化和情況。能夠實現這一目標的核心實際上是組建一支非常強大的團隊......

And to respond to the second part of your question and which was about from a marketing perspective and how to avoid cannibalization. And basically, starting from end of last year, and we have already put in together this XNGP process and to ensure that everything is compliant and the process are followed exactly the same. And secondly, and when we look at different prices and the different capabilities of our products, and we also ensure that there is differentiation in these regards. So those are the 2 main points that we would be adopting to avoid cannibalization.

回答你問題的第二部分，即從行銷角度以及如何避免蠶食。基本上，從去年年底開始，我們已經整合了這個 XNGP 流程，並確保一切都合規，並且流程遵循完全相同。其次，當我們考慮不同的價格和產品的不同功能時，我們也確保在這些方面有差異化。因此，這些是我們為避免蠶食而採取的兩個要點。

(foreign language) So my second question is about the competition. As we noticed that competition on the Veeco prices and new products has been getting fiercer year-to-date, in addition to the increase in new models in the second half of this year, how we react to the price war and in the meantime, effectively increase sales of existing models. That's my second question.

（外語）所以我的第二個問題是關於比賽的。我們注意到今年以來Veeco價格和新品的競爭越來越激烈，加上今年下半年新車型的增加，我們如何應對價格戰，同時，有效提升現有車型銷量。這是我的第二個問題。

[Interpreted] And to be honest, that this is really quite a tough question. And I believe the answer different automobile companies will have different ways to deal with competition. And for us, really, to answer your question from 2 perspectives, and the first one is from a macro perspective. And I think it's really important about building up the systematically a very strong foundation. And the second one is all about innovation. And the innovation, having innovative product is the only possible way to avoid competition. And thirdly, we are always pursuing quality first and then to scale. If you do it the other way around, if you start with scale first, and it would be very difficult to improve quality.

[解讀] 說實話，這確實是一個很難回答的問題。而我相信答案不同的汽車企業會有不同的應對競爭的方式。對我們來說，實際上，從兩個角度回答你的問題，第一個是從宏觀角度。我認為有系統地建立一個非常堅實的基礎非常重要。第二個是關於創新。而創新，擁有創新的產品是避免競爭的唯一可能的方法。第三，我們始終追求品質第一，然後規模。如果反之，如果先從規模開始，品質就很難提升。

And secondly, if we talk about on the short-term micro level, and I think that it would have the following areas, and the first one would be marketing. And we are always looking at how to spend less money to improve the marketing results. And then secondly, it's all about the sales and service capability. As I talked earlier, last quarter of 2023. And we had terminated 130 dealers and those were the underperforming ones. And by Q2 this year, once we have built up our new dealer partners and matured and natured all these dealers. And we believe that, this is the dealers who would help us to be able to further promote our vehicles in the third and fourth tier cities. And thirdly, it is about the functionality and the capability of your product. And so from the micro level, it is all about marketing plus sales plus service and cross your product.

其次，如果從短期微觀層面來講，我認為有以下幾個方面，第一個就是行銷。我們一直在研究如何花更少的錢來提高行銷效果。其次，這一切都與銷售和服務能力有關。正如我之前所說，2023 年最後一個季度。我們已經終止了 130 家經銷商，這些都是表現不佳的經銷商。到今年第二季度，一旦我們建立了新的經銷商合作夥伴，並使所有這些經銷商成熟和自然。我們相信，正是這些經銷商將幫助我們能夠進一步在三、四線城市推廣我們的車輛。第三，它與產品的功能和能力有關。因此，從微觀層面來看，這一切都與行銷、銷售、服務以及跨產品有關。

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 my first question is regarding your cooperation with Volkswagen. Could you give more quantified answer regarding your cooperation? For example, how many components you are able to co-purchase along with Volkswagen and how much cost do you expect to save?

（外語）我的第一個問題是關於你們與大眾汽車的合作。關於你們的合作，你能給出更量化的答案嗎？例如，您可以與大眾汽車共同採購多少零件以及您希望節省多少成本？

Ming, this is Charles. I think a few weeks ago, we announced that we have entered into the master agreement for the platform and the software services. That is a major development milestone for the projects we're working together based on our G9 platform.

明，這是查爾斯。我想幾週前，我們宣布我們已經簽署了平台和軟體服務的主協議。對於我們基於 G9 平台合作的專案來說，這是一個重要的發展里程碑。

In the meantime, we also enter into the joint procurement program that we will jointly procure the components for both our models on top of the G9 platform and also the Volkswagen model building on our G9 platform. I will say that, that's a very high degree of the platform and the component sharing and through the joint procurement program, also leveraging Volkswagen's world-class supply chain capabilities. We have seen the initial good results coming out of from the joint sourcing program.

同時，我們也進入了聯合採購計劃，我們將聯合採購基於G9平台的兩款車型以及基於G9平台打造的大眾車型的零件。我想說的是，這是高度的平台和零件共享，透過聯合採購計劃，也利用了大眾汽車世界一流的供應鏈能力。我們已經看到聯合採購計劃取得了初步良好的成果。

And we believe that, such joint sourcing program will continue to allow us to optimize our cost structure and also quickly bring our on cost structure to the competitive level in the market. Also, I think last point is that, as Xiaopeng mentioned in his remarks, the revenue generating from the platform software services will start to kick in from 2024. And it is the recurring -- once we started to record in our P&L, it will be a recurring revenue and will have meaningful impact -- meaningfully positive impact to our GP margin. And so it will continue to give us the positive contribution to our profitability.

我們相信，這樣的聯合採購計劃將繼續使我們能夠優化我們的成本結構，並迅速使我們的成本結構達到市場競爭水平。另外，我認為最後一點是，正如小鵬在演講中提到的，平台軟體服務產生的收入將從2024 年開始開始發揮作用。而且這是經常性的——一旦我們開始在損益表中記錄，它將成為一項經常性收入，並將產生有意義的影響——對我們的毛利率產生有意義的積極影響。因此，它將繼續為我們的盈利能力做出積極貢獻。

(foreign language) So, my second question is related to your MONA project product. So how do you think about your integration level between our XPENG brand as well as the MONA project brand? And could you also give us more details about the progress for you to launch the 2B model and also to 2C model. And also lastly, is the autonomous driving functions provided by MONA, similar to XPILOT 3.5?

（外語）那麼，我的第二個問題與你們的MONA專案產品有關。那麼您覺得我們小鵬品牌和MONA計畫品牌的融合程度如何呢？您能否向我們詳細介紹一下您推出2B模型和2C模型的進展？最後，MONA提供的自動駕駛功能是不是跟XPILOT 3.5類似？

Ming, it's Brian. Let me address your question on this MONA project. Yes, we are very excited that we'll be launching the MONA sub-brand in a very short time. And also, we think it will be, I would say, one of the blockbuster products in the category. The reason we think there's a potential is because, one, we think it's a very well-designed product has, I think, I would say, best-in-class design as well as in some of the functions, especially as related to smart function, we think it will have differentiation compared to similar products in this category.

明，是布萊恩。讓我來解答您關於 MONA 計畫的問題。是的，我們非常高興我們將在很短的時間內推出 MONA 子品牌。而且，我想說，我們認為它將成為該類別中的重磅產品之一。我們認為有潛力的原因是，第一，我們認為這是一款設計非常精良的產品，我認為，我想說，它具有一流的設計以及某些功能，特別是與智能相關的功能。功能上，我們認為與該類別的同類產品相比會有差異化。

At the same time, we have done a lot of effort trying to make sure the product is also very competitive from both cost as well as competitiveness in terms of the -- focusing on both 2C and 2B channels. So needless to say, we have high hopes for the MONA product.

同時，我們也做了很多努力，試圖確保產品無論是在成本上還是在2C和2B通路方面都具有很強的競爭力。所以不用說，我們對MONA產品寄予厚望。

And also the in terms of strategy, we think it will have actually the dual-pronged channels. I think it will start from the 2C channel first to make sure it will be received as a premium product and then followed by, I think, 2B channel sales. So that's likely to be the sequence of our marketing.

在策略方面，我們認為它實際上將擁有雙管齊下的管道。我認為它將首先從 2C 管道開始，以確保它將作為優質產品受到歡迎，然後我認為，接下來是 2B 通路銷售。這可能就是我們行銷的順序。

From the specific product functions and capabilities, I will probably leave that to the launch event to give the full details. But needless to say again, we think it's a very competitive product. We also have plans to steadily improve on this product based on additional, I would say, development plan for later this year as well as early next year. So this is also going to be improving as a platform in this A-class. So again, I mean, I think this is a lot to expect for. And I think I would love all of you to wait until our launch event, which will happen probably very soon.

至於具體的產品功能和能力，我可能會留到發表會再詳細介紹。但不用再說一遍，我們認為這是一款非常有競爭力的產品。我們還計劃根據今年稍後和明年初的額外開發計劃穩步改進該產品。因此，作為這款 A 級車的平台，這也將得到改進。再說一遍，我的意思是，我認為這是一個值得期待的事情。我想我希望你們所有人都等到我們的發布會，這可能很快就會發生。

Your next question comes from Bin Wang with Deutsche Bank.

您的下一個問題來自德意志銀行的王斌。

(foreign language) And my question is about the full year 2024 volume target. Couple of media report at your targeted 260,000 units to 280,000 units, is that wide range you are thinking about? If a place, which means in each quarter, you actually need to sell about 75,000 units in pride monthly 25,000. So if you -- when you can achieve this 25,000 if it's true? Separately, do you actually get some commitments from TD to certain 2B from MONA? And how much volume from the export?

（外語）我的問題是關於 2024 年全年的銷售目標。有幾家媒體報導你們的目標是26萬到28萬台，你們考慮的範圍寬嗎？如果一個地方，這意味著在每個季度，你實際上需要銷售大約 75,000 單位，每月 25,000 單位。那麼，如果這是真的的話，你什麼時候才能達到 25,000 呢？另外，您是否真的從 MONA 獲得了 TD 對某些 2B 的承諾？出口量有多少？

Bin, it's Brian again. I think good try, but I think as usual, we do not give specific annual guidance delivery numbers, our policy. But what I can say, at least for our perspective, we are very optimistic about this year, given the product lineup and the launch schedule. We think we can achieve on a full year basis, the much greater than market sort of growth rate. And I think we will be gaining significant market share increases. That's our expectation. We also think this year will be similar to last year in terms of first half will be light given obviously the industry dynamics as well as our product launch schedules, but we think we will start to pick up speed towards the second -- towards the second quarter as well as the second half based on the changes we're making in our sales and marketing channels as well as our product launch in the third and fourth quarter.

賓，又是布萊恩。我認為很好的嘗試，但我認為像往常一樣，我們沒有給出具體的年度指導交付數字，即我們的政策。但我可以說，至少從我們的角度來看，考慮到產品陣容和發佈時間表，我們對今年非常樂觀。我們認為我們可以實現全年遠高於市場的成長率。我認為我們的市場佔有率將會顯著增加。這是我們的期望。我們也認為今年將與去年類似，鑑於行業動態以及我們的產品發佈時間表，上半年將會很輕鬆，但我們認為我們將開始加快下半年的速度基於我們在銷售和行銷管道方面所做的改變以及我們在第三季和第四季推出的產品，我們對第四季和下半年的情況進行了預測。

For MONA, I think it's -- like I said, it's a very exciting product. We'll be launching the 2C channel first, which we think will likely happen in the second or third quarter in terms of delivery. And also for the 2B channel, will probably be a few months behind. We do not have a specific number to give you in terms of what the MONA expectation is. But I think, as you can tell, to be a successful product in the A-class category, I think you will have to deliver a sort of range around about 10,000 months type of scale to be successful. So obviously, at a steady state, we think MONA should be achieving that level of sales.

對於 MONA 來說，我認為就像我說的，這是一個非常令人興奮的產品。我們將首先推出 2C 頻道，我們認為這可能會在第二或第三季交付。 2B 頻道也可能落後幾個月。我們沒有具體的數字來告訴您 MONA 的期望是什麼。但我認為，正如您所知，要成為 A 級類別中的成功產品，我認為您必須提供大約 10,000 個月的規模才能取得成功。顯然，在穩定狀態下，我們認為 MONA 應該達到這個銷售水準。

So again, I think I don't have specific numbers, but you can tell that this is how we envision the full year delivery will look like us. So let me just comment on that. Again, this year, we will be making significant expansion efforts into many new markets. I think that we will start to see the delivery results from those efforts. And I think from the volume perspective, we think we will be generating tens of thousands of sort of delivery from an international sales.

再說一次，我想我沒有具體的數字，但你可以看出，這就是我們設想的全年交付情況。讓我對此發表評論。今年，我們將再次大力拓展許多新市場。我認為我們將開始看到這些努力所取得的成果。我認為從數量的角度來看，我們認為我們將從國際銷售中產生數以萬計的交付量。

(foreign language) In the recent conference couple week, while we said that auto onus driving, however, while we want to make the situation change. Can you describe what's the technology differentiation between the XPeng technology and Huawei and how we maintain the leadership?

（外語）在最近幾週的會議上，雖然我們說汽車有責任駕駛，但是，當我們希望改變這種情況時。您能否描述一下小鵬科技與華為之間的技術差異是什麼以及我們如何保持領先地位？

[Interpreted] Actually, when Mr. Hu Houkun from Huawei was making this statement, I was happened to be among the audience and I was sitting down stairs in the audience. And so I would say that for Huawei and XPeng and both companies, we are working together and putting in our efforts into something that we both truly believe. And Huawei obviously is an excellent Chinese technology company, and we have a lot of respect for them.

【解讀】其實，華為胡厚昆先生發表此言論時，我正好在觀眾席中，而且我正坐在觀眾席的樓梯下。所以我想說，對於華為和小鵬汽車以及兩家公司來說，我們正在共同努力，為我們都真正相信的事情付出努力。華為顯然是一家優秀的中國科技公司，我們非常尊敬他們。

I would say that both companies have our unique advantages. And for XPeng in terms of what we have done, and we really started working more on our brand as well as our marketing from the end of last year. And in terms of autonomous driving, and I believe that there are 4 areas that would really be very important. And number one would be the capability or functionality of your car. Second would be safety. And thirdly would be the cost of the vehicle. And fourthly, would be how international that you can expand into for your product and to obtain more revenue and profit.

我想說，兩家公司都有我們獨特的優勢。對於小鵬汽車來說，就我們所做的事情而言，我們從去年年底開始真正開始在品牌和行銷方面投入更多精力。在自動駕駛方面，我認為有四個領域確實非常重要。第一個是你的汽車的性能或功能。其次是安全。第三是車輛的成本。第四，您的產品可以擴展到多大程度的國際化並獲得更多的收入和利潤。

In China, obviously, we can see that autonomous driving is something that everybody loves. And however, in terms of the general public demand, it is not quite yet met, and this is something that we need to work hard on in the next 18 months. And we can see that, for instance, in terms of the application in all areas and all around application and the cost reducting as well as more marketing work that to be carried out. And in the next 18 months, in addition, I do believe that huge changes will be brought by with the large model being applied to autonomous driving, and this is something that we should watch out for, and we believe that this will bring great benefits to the industry.

顯然，在中國，我們可以看到自動駕駛是每個人都喜歡的事。但從廣大群眾的需求來看，還沒有完全被滿足，這是我們未來18個月需要努力的。我們可以看到，例如，在所有領域的應用和全方位的應用以及成本的降低以及需要進行的更多行銷工作方面。另外，在接下來的18個月裡，我確實相信大型車型應用於自動駕駛會帶來巨大的變化，這是我們應該警惕的，我們相信這會帶來很大的好處到行業。

And since the first quarter of last year, we have also worked hard in bringing down the cost as well as working more on our marketing. And the same for Huawei and what we want to do is that we want to become an excellent company, but then coming back to autonomous driving, I would still say that, we are a company that is more specialized in vehicle and autonomous driving is really our strength, and this is our uniqueness.

從去年第一季開始，我們也在努力降低成本，同時加強行銷。華為也是一樣，我們想做的就是成為一家優秀的公司，但是回到自動駕駛，我還是想說，我們是一家更專業的公司，自動駕駛真的是我們的優勢，這是我們的獨特之處。

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 the first question is about our new brand. Since in terms of the pricing segment, it's actually quite separate from the Xiaopeng brand. So wondering, would our sales channel be share the current sales channel or have a separate sales channel considering the target customer segment would be differentiated? And then the second also related is that considering we are at a lower price range for the new brand, wondering the designed gross margin level, would it be also lower than the XPeng brand?

（外語）第一個問題是關於我們的新品牌。因為從定價細分來看，它實際上與小鵬品牌有很大區別。那麼想知道，我們的銷售管道是共享現有的銷售管道還是考慮到目標客戶群的差異化而有一個單獨的銷售管道？第二個也相關的是，考慮到我們新品牌的價格範圍較低，想知道設計的毛利率水平是否也會低於小鵬品牌？

[Interpreted] With respect to the new brand, and for the new brands, we will be launching them into our existing stores, and we will have independent exhibition also for the new branding. And in the future, we are also looking at building more dealerships and more independent stores dedicated to these new brands, and we hope that there will be hundreds of these new independent stores for the new brands dedicated to them. And with respect to your other question, and I will invite our Finance VP; and Mr. James Wu to take your question.

【解讀】對於新品牌來說，對於新品牌來說，我們會在現有的門市投放，而且我們也會為新品牌做獨立的展示。未來，我們也考慮建立更多的經銷商和更多專門針對這些新品牌的獨立商店，我們希望能夠有數百家專門針對新品牌的新獨立商店。關於你的另一個問題，我將邀請我們的財務副總裁；請吳先生回答你的問題。

Yes. On the margin front for MONA, typically, we won't give a specific margin for a particular car line. As Brian and Xiaopeng mentioned, MONA will be focusing on the A-class segment. Obviously, we won't imagine that A segment products to make the highest profit in our portfolio. But overall, our expectation is, MONA will achieve healthy positive margin for this brand overall. And as Brian mentioned, MONA that will be launched in the Beijing Auto Show will just be the first model. There will be additional models that's coming through the platform.

是的。在 MONA 的利潤方面，通常我們不會為特定汽車系列提供特定的利潤。正如Brian和小鵬所說，MONA將專注於A級細分市場。顯然，我們不會想像 A 細分市場的產品會在我們的產品組合中獲得最高的利潤。但總體而言，我們的預期是，MONA 將為該品牌整體實現健康的正利潤率。而如Brian所提到的，即將在北京車展上推出的MONA只是首款車型。該平台還將推出更多型號。

The other thing that over the long term we might be thinking about is a different commercialization strategy in terms of our software, and we'll give more guidance and information in the next couple of quarters. And the other thing, I want to mention is in terms of MONA, because it's large scale, the target customer base and our partnership with DiDi. So they will help us to market the product. Eventually, we expect relatively lower sales associated sales costs for MONA compared to Xiaopeng brand overall.

從長遠來看，我們可能考慮的另一件事是我們的軟體採用不同的商業化策略，我們將在接下來的幾個季度提供更多指導和資訊。我想提到的另一件事是 MONA 方面，因為它的規模很大，目標客戶群以及我們與滴滴的合作夥伴關係。因此他們將幫助我們行銷產品。最終，我們預期與小鵬品牌整體相比，MONA 的銷售相關銷售成本相對較低。

(foreign language) So my second question is regarding -- I think in the February delivery report, we mentioned that there were some supply chain bottleneck regarding to X9 before the Chinese New Year. And the company expects after Chinese New Year, these bottlenecks would be resolved and the delivery volume of X9 should increase. So just wondering, what kind of bottleneck were we facing? And also going forward, how shall we -- how do we plan to prevent the similar situations from happening again?

（外語）所以我的第二個問題是關於——我想在2月份的交付​​報告中，我們提到春節前X9存在一些供應鏈瓶頸。該公司預計春節後，這些瓶頸將得到解決，X9的交付量將會增加。所以只是想知道，我們面對什麼樣的瓶頸？展望未來，我們將如何－我們計劃如何防止類似情況再次發生？

[Interpreted] That is an excellent question, and thank you for putting this forward. So in terms of the supply chain issue that you had mentioned encountered by X9 end of February after Chinese New Year, this problem has already been resolved. And yes, indeed, in the past, we have also encountered similar issues. Internally, we have also been reflecting how to resolve this problem. And since taking over the supply chain myself personally last October, and we have accommodated through a new management system, and we are now reducing the number of suppliers, and we're mainly focused on these high-quality privately -- private Chinese companies, which are listed and those are the ones who can also provide us with certain flexibilities. And so in the future, I don't think that we need to worry about this issue because we do now have long-term strategic partners in place.

[解釋]這是一個很好的問題，感謝您提出這個問題。所以你提到的X9在春節後2月底遇到的供應鏈問題，這個問題已經解決了。是的，確實，過去我們也遇到類似的問題。我們內部也一直在反思如何解決這個問題。自從去年十月我親自接管供應鏈以來，我們通過新的管理體系進行了適應，現在我們正在減少供應商的數量，我們主要關注這些高質量的私營中國私營企業，列出的那些也可以為我們提供一定的彈性。所以在未來，我認為我們不需要擔心這個問題，因為我們現在已經有了長期的策略夥伴。

And the second, in terms of our margins products, and we now have standardized modules. And generally speaking, and we have about 1 to 2 partners who provide us with these modules that can be used in quite a broad spectrum of different models of cars. And this will improve the efficiency and bring down the cost as well as ensure the quality, and they are very flexible partners to work with.

第二，就我們的利潤產品而言，我們現在擁有標準化模組。一般來說，我們大約有 1 到 2 個合作夥伴為我們提供這些模組，這些模組可用於相當廣泛的不同車型。這將提高效率、降低成本並保證質量，他們是非常靈活的合作夥伴。

And thirdly, in terms of supply chain management team, we have also done work to adjust our existing supply chain management time in terms of the organizational structure, and we now have a new system in place. And so internally, our company has the determination that we are ready and for all of these products to be launched. And for the first 3 months, and we want to make sure that we will achieve a very good scale of sales.

第三，在供應鏈管理團隊方面，我們也對現有的供應鏈管理時間在組織架構上做了調整，現在有了新的系統。因此，我們公司內部決心已做好準備並推出所有這些產品。在前三個月，我們希望確保能夠達到非常好的銷售規模。

Your next question comes from Xinchi Yin with Citic Securities.

你的下一個問題來自中信證券的尹新馳。

(foreign language) On last year, you mentioned that 2027 will be a critical year for autonomous driving in China, where we will probably witness 30% of car in China will adopt for their autonomous driving. I was wondering, what is your latest view on that? And could you possibly share the theory behind your estimation?

（外文）去年您提到2027年將是中國自動駕駛的關鍵一年，屆時我們可能會看到中國30%的汽車將採用自動駕駛。我想知道您對此有何最新看法？能分享一下您的估計背後的理論嗎？

[Interpreted] And yes, indeed, for this year, and I do believe that we would be able to complete the task a little bit ahead of time, ahead of schedule as to what I have mentioned in the last year. And first of all, in terms of the large model and being adopted in other systems. And through our testing, we had already been able to discover that the large model could really help with the speeding up and the realization of the generic intelligence and smart autonomous driving. So it is definitely an advantage, and we have already done the testing and it has already approved to this.

[解讀]是的，確實是今年，我確實相信我們能夠提前一點完成任務，比我去年提到的計劃提前完成。首先，就大型模型以及在其他系統中採用而言。而透過我們的測試，我們已經能夠發現，大模型確實能夠幫助加速和實現通用智慧和智慧自動駕駛。所以這絕對是一個優勢，我們已經完成了測試，並且已經批准了這一點。

Secondly, and we know that in terms of hardware cost and for XPeng, obviously, we would like to bring it down, and we also would like to see that providing support to our systems by a large scale. And not only just that for others, XPeng believe and we'd like to see the cost to come down. And we also see out there in the market, there are other people providing even cheaper solutions. And what we have discovered is that, with the large model OEMs, it definitely would be able to provide more computing power and more CPU and this would be able to help and push for the faster and better achievement in our vehicles and to bring the success faster to the market.

其次，我們知道，就硬體成本而言，對於小鵬來說，顯然我們希望將其降低，我們也希望看到大規模地為我們的系統提供支援。小鵬汽車相信，不僅對於其他公司而言，我們希望看到成本下降。我們也看到市場上還有其他人提供更便宜的解決方案。而我們發現，對於大型車型主機廠來說，它肯定能夠提供更多的運算能力和更多的CPU，這將能夠幫助和推動我們的車輛更快更好地取得成功，帶來成功。更快地推向市場。

And another point I would like to mention is that, in certain restricted scenarios or in certain scenarios whereby there are a lot of limitations, and we can see that a large model has actually helped with the speeding up of realizing fully autonomous driving, and this is something that we are focusing on. And so we have a lot of confidence in this.

還有一點我想提的是，在某些受限場景或某些有很多限制的場景下，我們可以看到大模型實際上有助於加速實現完全自動駕駛，這是我們正在關注的事情。所以我們對此充滿信心。

Apologies. And I have one last point to add, and which is that in terms of the non-HD map and we -- in the beginning and when we looked at this and we thought that, yes, we will speed up the process in a linear process. However, it wasn't linear. It was actually extremely fast in terms of how it has ramped up, and we do believe that having this data in our hand and having witnessed the non-HD map, how it's working in reality, and we do think that this is something will help again with the large model and its adoption and helping further advancing the others and autonomous driving.

道歉。我還有最後一點要補充，那就是就非高清地圖而言，我們 - 一開始，當我們看到這個時，我們認為，是的，我們將以線性方式加快這一過程。然而，它不是線性的。就其成長方式而言，它實際上非常快，我們確實相信，擁有這些數據並親眼目睹了非高清地圖，它在現實中是如何工作的，我們確實認為這會有所幫助大型模型及其採用再次有助於進一步推進其他車型和自動駕駛。

Thank you. That is all the time we have for questions. Now, I'd like to turn the call back over to the company for closing remarks.

謝謝。這就是我們提問的全部時間。現在，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。]