Xpeng Inc (XPEV) 2024 Q1 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for the First Quarter 2024 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 2024 年第一季業績電話會議（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 First Quarter 2024 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. Participants on today's call from our management team will include a Co-Founder, Chairman and CEO, Mr. Xiaopeng; Vice Chairman and President, Dr. Brian Gu; Vice President of Corporate Finance and Investments; Mr. Charles Zhang, Vice President of Finance and Accounting, Mr. Jiaming Wu and myself. 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. 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.

謝謝。大家好，歡迎參加小鵬汽車2024年第一季業績電話會議。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。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；張朝陽先生、財務會計副總裁、吳家明先生和我自己。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。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。

Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the relevant public filings of the company as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that XPeng's earnings press release and this conference call includes the disclosure of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. XPeng's earnings press release contains a reconciliation of unaudited non-GAAP measures to the unaudited GAAP measures. I will now turn the call over to our Co-Founder, Chairman and CEO, Mr. Xiaopeng. Please go ahead.

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。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。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。小鵬汽車的收益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。我現在將電話轉給我們的共同創辦人、董事長兼執行長小鵬先生。請繼續。

Good evening, everyone. In the first quarter of 2024, XPeng announced the delivery of a 21,821 smart EVs, marking a 20% year-over-year increase, notwithstanding significant market competition, our first quarter gross margin expanded substantially to 12.9%, doubling from the previous quarter with an increase of 6.7 percentage points. This development underscores XPeng's innovative approach to enhancing profitability and international market potential through the provision of smart technologies based on its smart EV business. This has created a completely new unique model. Over the past decade since its inception, XPeng has consistently made a robust investment in R&D for smart EV platforms, electrical electronic architecture and advanced driver assistance systems or others for short. These strategic investments are now yielding positive financial outcomes. As artificial intelligence continues to redefine the auto industry in China and globally. Xponghas been at the forefront of exporting its in-house developed smart technologies, resulting in significant recurring revenue and profit. This achievement is poised to profound the impact of the company's profitability model instilling confidence in paving the way for further technical advancements as XPeng continues to lead the technology transformation within the automotive sector.

各位晚上好。 2024年一季度，小鵬汽車宣布交付智慧電動車21,821輛，較去年同期成長20%，儘管市場競爭激烈，第一季毛利率大幅提升至12.9%，較上季翻倍，成長6.7個百分點。這項發展凸顯了小鵬汽車透過基於其智慧電動車業務提供智慧技術來提高獲利能力和國際市場潛力的創新方法。這創造了一個全新的獨特模型。自成立以來的十年間，小鵬汽車持續在智慧電動車平台、電氣電子架構和先進駕駛輔助系統等領域進行大力研發投入。這些策略投資現已產生積極的財務成果。隨著人工智慧不斷重新定義中國乃至全球的汽車產業。 Xpong 一直處於出口其內部開發的智慧技術的前沿，帶來了可觀的經常性收入和利潤。這項成就將對公司的獲利模式產生深遠的影響，為小鵬汽車繼續引領汽車產業的技術轉型，為進一步技術進步奠定基礎。

At the end of Q1, we had RMB 41.4 billion in cash. With our significantly improved gross margin, this healthy cash position allows us to concentrate more on strategic initiatives for the future. Our strategic transformation is not solely focused on boosting sales volume as the past. We are also dedicated to achieving excellence in quality, efficiency and overall enhancement of the company's competitiveness. By leveraging our strengths and addressing any weaknesses, our goal is to become well-rounded and pursue larger scale and profits in the long run. I am very delighted to say that we have been able to start this thinking and have the decision much earlier on than our peers. Moving forward, we will rigorously drive this transformation whilst accelerating crucial talent recruitment and improving organizational effectiveness and strategic execution. We have confidence that with our hyper integrated, comprehensive intelligence technology platform, XPeng is well positioned to efficiently launch highly competitive models worldwide and lead the widespread adoption of AI-powered smart cars.

第一季末，我們擁有現金414億元。隨著毛利率的顯著提高，這種健康的現金狀況使我們能夠更加專注於未來的策略性舉措。我們的策略轉型不再像過去那樣只注重銷售量的提升。我們也致力於實現卓越的品質、效率和公司競爭力的全面提升。透過發揮優勢、彌補劣勢，我們的目標是全面發展，追求更大的規模和長期利潤。我很高興地說，我們比同行更早開始思考並做出決定。展望未來，我們將大力推動這項轉型，同時加速關鍵人才招聘，提高組織效率和策略執行力。我們相信，憑藉超整合的綜合智慧技術平台，小鵬汽車有能力在全球範圍內高效推出極具競爭力的車型，引領人工智慧智慧汽車的廣泛應用。

Since the beginning of 2024, Expand has been actively recruiting top talent in other R&D, brand marketing, style design and other key areas. We will see introduce them to you. Our goal is to rapidly elevate our marketing, customer experience and design capabilities to industries in most cutting-edge levels. This will enable us to effectively translate our long technologies into compelling product experiences and utilize the marketing strategies to better communicate the value of our technology to customers. With our weaknesses are properly addressed, our industry-leading AI capabilities, comprehensive R&D framework supporting rapid global scalability and customer-oriented product design will better serve as the competitive edges that set us apart and drive our success. During the first quarter, the X9, our largest 7-digit flagship model emerged as a top center in the pure electric MPV segment as well as the pure electrode 3-row model segment following its market launch. The success of the X9 firmly establishes the product innovation and technological advancements as our most effective competitive edges. Moving forward, we will confidently build on this success to enrich our premium product portfolio. Our aim is to provide family customers with the most advanced smart EV technologies in large vehicles, delivering signing, space, comfort and opulent again to luxury cars priced above RMB 1 million.

2024年開始，Expand就積極招募其他研發、品牌行銷、款式設計等關鍵領域的頂尖人才。我們將會看到向您介紹它們。我們的目標是迅速將我們的行銷、客戶體驗和設計能力提升到行業最前沿的水平。這將使我們能夠有效地將長期技術轉化為引人注目的產品體驗，並利用行銷策略更好地向客戶傳達我們技術的價值。如果我們的短板得到妥善解決，我們行業領先的人工智慧能力、支援全球快速擴展的綜合研發框架以及以客戶為導向的產品設計將更好地成為我們脫穎而出並推動我們成功的競爭優勢。一季度，我們最大的7位旗艦車型X9上市後，成為純電動MPV細分市場以及純電極三排車型細分市場的中鋒。 X9的成功，穩固確立了產品創新和技術進步作為我們最有效的競爭優勢。展望未來，我們將滿懷信心地以此成功為基礎，豐富我​​們的優質產品組合。我們的目標是為家庭客戶提供最先進的大型車輛智慧電動技術，為100萬元以上的豪華車帶來簽名、空間、舒適和華麗。

In the third quarter of this year, we will embark on an extensive product launch cycle, introducing a number of new models within the next 3 years. These models will cover major price segments ranging from RMB 100,000 to RMB 400,000. Like the X9, our new models will come with disruptive innovations to do new segments. All products will feature cutting-edge other technology and with the various product series, we do cater to diverse customer needs in pricing and design both home and abroad. We are committed to establishing a Volkswagen like super brand in the EV space with a global market presence and a wide-ranging product portfolio that caters to broad customer groups, ultimately bringing AI-powered vehicles into the mainstream. Our new A-class electric sedan, the first model of our MONA series products will debut in June and especially launch and combine the mass delivery in the third quarter of this year. This groundbreaking products in both ties exquisite siding, amongst intelligence and highly competitive cost structure, making it a potential favorite among younger consumer groups within the RMB 200,000 price range. We are confident that it will set the standard in the A-class BEV market. Over the next 2 years, we will introduce several additional products based on the A-class platform. In addition, we are determined to target the RMB 100,000 to RMB 200,000 prices segment, where the highest sales volume is with our high-level orders.

今年第三季度，我們將開啟廣泛的產品發布週期，在未來三年內推出多款新車型。這些車型將覆蓋10萬元至40萬元的主要價位段。與X9一樣，我們的新車型將透過顛覆性創新來開拓新的細分市場。所有產品都將採用其他尖端技術，並透過豐富的產品系列，滿足國內外客戶在定價和設計上的不同需求。我們致力於在電動車領域建立像大眾汽車一樣的超級品牌，擁有全球市場影響力和廣泛的產品組合，以滿足廣大客戶群的需求，最終將人工智慧驅動的汽車帶入主流。我們的新A級電動轎車，我們MONA系列產品的首款車型將於6月亮相，特別是今年第三季推出並大量交付。這款開創性的產品結合了精緻的壁板、智慧化的設計以及極具競爭力的成本結構，使其成為20萬元價位內年輕消費群體的潛在寵兒。我們有信心它將為A級純電動車市場樹立標準。未來兩年，我們將推出基於A級平台的更多產品。此外，我們的目標是10萬元至20萬元的價格段，其中銷量最高的是我們的高等級訂單。

In the upcoming fourth quarter, we will be launching a new Expo branded B-class battery electric sedan. We have successfully achieved a 25% cost reduction through technological advancements for the first time with this model. We expect this to become a best selling B-class BEV model in the second half of this year. with the incremental volume from this new B-class model and MONA, we are confident of substantial year-over-year growth in monthly delivery volume in the fourth quarter. On AI Day, May 20, we began the full-scale rollout of our AI-powered in-car operating system XOS 5.1.0, AI Tianji OS. This cutting-edge large model built system seamlessly integrates the AI technology into smart upgrade and the XOS 5.1 is available to all owners of our major models, solidifying expose position at the forefront of the non-HD map an end-to-end AI model applications in China -- and in China's auto industry. Which means our technology architecture is a 1 or 2 generation ahead of our competitors without using any of these HD maps and which also means that by third quarter of this year, XNGP not only would be able to roll it out in all the national roads, and we would be able to drive all the roads around China and from end to end to (inaudible). All the cars, which means that going forward, in terms of autonomous driving capabilities in each quarter, we would be able to see exponential times of improvement, and this would mean that in terms of the old way of human-made method of rules and the coating method, this will be revised into the training of models and based on the algorithms, we aim to have XNGP accessible on order road nationwide by 3rd of the quarter, as I have said. And our end-to-end AI model will enable us to rapidly announce our software and AI technology on a monthly basis.

在即將到來的第四季度，我們將推出一款新的Expo品牌B級純電動轎車。透過此模型的技術進步，我們首次成功實現了 25% 的成本降低。我們預計它將成為今年下半年最暢銷的B級純電動車款。隨著新B級車型和MONA的增量，我們有信心第四季度月度交付量同比大幅增長。 5月20日AI Day，我們開始全面推出人工智慧車載作業系統XOS 5.1.0——AI天機OS。這一尖端的大模型構建系統將AI技術無縫融入智慧升級，XOS 5.1面向所有主力車型車主開放，鞏固了在非高精地圖端到端AI車型領域的領先地位在中國以及中國汽車行業的應用。這意味著我們的技術架構在不使用任何這些高清地圖的情況下領先競爭對手一兩代，這也意味著到今年第三季度，XNGP不僅能夠在所有國道上推廣，我們將能夠駕駛中國各地的所有道路，從一端到另一端（聽不清楚）。所有的汽車，這意味著未來，就每個季度的自動駕駛能力而言，我們將能夠看到指數倍的改進，這意味著就舊的人為規則和方法而言，塗層方法，這將被修改為模型的訓練，並基於演算法，我們的目標是在本季度第三季度之前讓XNGP 在全國範圍內的訂單道路上可用，正如我所說的。我們的端到端人工智慧模型將使我們能夠每月快速發布我們的軟體和人工智慧技術。

And we predict that by the end of 2025, we will be able to elevate the city road others experience to match a start of the current highway NGP, which means only one manual takeover per hundreds of kilometers of driving. Our XNGP is expected to achieve the driving capabilities that are equal or equal to or surpass those of human drivers in complex scenarios. This will soon be possible as our ADAS technology architecture is powered by a launched end-to-end AI model with extensive training using masters amounts of high-quality data, underscoring our competitive edge in data. With our (inaudible) model, commencing deliveries in the second half of this year, broader customers that base will soon have access to AI-powered other features. The widespread adoption of high-level auto will accelerate and rapidly scale up our XNGP fleet, which in turn will generate a tremendous amount of data to expedite AI model training and iteration. Large AI models will bring our owners an unprecedented AI-powered driving experience, boosting the penetration of its margins is quite with high-level auto features.

我們預測，到 2025 年底，我們將能夠提升其他人經歷的城市道路，以匹配當前高速公路 NGP 的起點，這意味著每數百公里行駛只需一次手動接管。我們的XNGP有望在複雜場景下實現等於或超越人類駕駛員的駕駛能力。這很快就會成為可能，因為我們的 ADAS 技術架構由已推出的端到端人工智慧模型提供支持，並使用大量高品質數據進行了廣泛的培訓，突顯了我們在數據方面的競爭優勢。透過我們的（聽不清楚）模型，從今年下半年開始交付，更廣泛的客戶群很快將能夠使用人工智慧驅動的其他功能。高級汽車的廣泛採用將加速並快速擴大我們的XNGP車隊，這反過來又會產生大量數據來加快AI模型的訓練和迭代。大型AI車型將為我們的車主帶來前所未有的AI驅動體驗，其利潤率的滲透率與高水準的汽車功能相當。

Regarding the international market. This year, we will expedite our expansion into drive sales and profit growth. We plan to expand our overseas sales network from Nordic countries to over 20 countries worldwide. In the first half of 2024, we established partnerships with the leading auto dealership groups in Western Europe, Southeast Asia, the Middle East and Australia. New sales at stores have gradually opened under these partnerships. In early April, we shipped nearly 1,000 lines worth over RMB 500 million to. In May, we announced that the selling price and started accepting pre-orders for the GG6 model with a left-hand drive in Europe. We plan to introduce the right-hand drive a G6 in the third quarter. Highway NGP test in the overseas markets are progressing well, too. Our product strength such as auto faster charging and smart technologies are highly valued by overseas dealers and consumers. XPeng is confidently positioned as a mid- to high-end tech-savvy brand in international markets, offering superior product experiences and eco-friendly smart EV models.

就國際市場而言。今年，我們將加速擴張，推動銷售和利潤成長。我們計劃將海外銷售網路從北歐國家擴展到全球20多個國家。 2024年上半年，我們與西歐、東南亞、中東和澳洲的領先汽車經銷商集團建立了合作關係。在這些合作關係下，新的商店銷售已逐漸展開。 4月初，我們出貨近1000條線，價值超5億元。 5月，我們公佈了GG6左舵車型在歐洲的售價並開始接受預訂。我們計劃在第三季推出右側駕駛的 G6。海外市場的高速公路NGP測試也進展順利。我們的汽車快充、智慧科技等產品實力受到海外經銷商和消費者的高度評價。小鵬汽車自信地定位為國際市場中高端科技品牌，提供卓越的產品體驗和環保的智慧電動車款。

Our strategic partnership with the Volkswagen Group is rapidly deepening and expanding. Within just 1 year of establishing our partnership. On April 17, we announced our third strategic corporation projects in with Volkswagen. This project involves the joint development of the industry-leading EV architecture for Volkswagen the EV platform designed for the Chinese market. This platform, which will be applied to China produced Volkswagen branded EV models starting from 2026, will integrate XPeng's latest generation of EV architecture based on centralized computing and domain controller technologies. We are confident in our ability to leverage a more mutually beneficial cooperation opportunities with Volkswagen and create significant strategic synergies as we lead the global automobile industry transition into the AI-powered driving era. Since the first quarter of 2024, our platform and software services have become a significant driver of our earnings. This clearly showcases XPeng's innovative and unique business model. setting us apart from the traditional auto companies. Our cutting-edge smart technologies not only enhance the monetization to XPeng's branded EV sales, but also through partnership with a world-leading auto OEM. This will result in an expanded market presence and increased the financial returns for our company.

我們與大眾汽車集團的策略合作關係正在迅速深化和擴大。我們建立合作關係僅一年之內。 4 月 17 日，我們宣布了與大眾汽車的第三個策略合作項目。該專案涉及與大眾汽車共同開發業界領先的電動車架構，即專為中國市場設計的電動車平台。該平台將從2026年開始應用於中國生產的大眾品牌電動車，將整合小鵬汽車最新一代基於集中運算和網域控制器技術的電動車架構。我們有信心與大眾汽車建立更多互惠互利的合作機會，產生顯著的策略協同效應，引領全球汽車產業轉型為人工智慧駕駛時代。自2024年第一季以來，我們的平台和軟體服務已成為我們獲利的重要驅動力。這清楚地展示了小鵬汽車創新且獨特的商業模式。讓我們有別於傳統汽車公司。我們的尖端智慧技術不僅增強了小鵬汽車品牌電動車銷售的變現能力，而且還透過與世界領先的汽車原始設備製造商的合作。這將擴大我們公司的市場份額並增加財務回報。

I would like to reiterate in this ultra-competitive market, we should not only have our eyes on the scale of the sales rather should focus on becoming a well-rounded player in the market. Despite the headwinds in the auto market in the second quarter, we have already observed a positive impact from our ongoing organizational and transformative changes. That said, we anticipate that the total delivery volume will range between 29,000 and 32,000 units in the second quarter of 2024, reflecting a year-over-year increase of 25% to 37.9% and a quarter-over-quarter increase of 32.9% to 46.6%. Furthermore, we project that our second quarter total revenue will fall within the range of RMB 7.5 billion to RMB 8.3 billion, representing a year-over-year increase of 48.1% to 63.9%. We anticipate witnessing more transformation-driven results in the latter half of this year. Starting in October, we will be poised to enter a fast-track growth phase, confident in achieving significant break fluids in sales volume, margins, cash flow and AI-powered order system, and this is for the long run into the future as well. Thank you, everyone, again. With that, I will now turn the call over to our VP of Finance, Mr. James Wu to discuss our financial performance for the first quarter of 2024.

我想重申，在這個競爭異常激烈的市場，我們不應該只關注銷售規模，而應該專注於成為市場的全面參與者。儘管第二季汽車市場面臨阻力，但我們已經觀察到我們正在進行的組織和變革變革產生了積極影響。儘管如此，我們預計 2024 年第二季總交付量將在 29,000 至 32,000 輛之間，年增 25%至 37.9%，季增 32.9%至46.6%。此外，我們預計第二季總營收將在人民幣75億元至人民幣83億元之間，年增48.1%至63.9%。我們預計今年下半年將看到更多轉型驅動的成果。從10月份開始，我們將進入快速成長階段，有信心在銷量、利潤、現金流和人工智慧驅動的訂單系統方面實現顯著突破，這也是面向未來的長期目標。再次謝謝大家。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 2024 年第一季的財務表現。

Thank you, Xiaopeng. Now let me provide a brief overview of our financial results for the first quarter of 2024. I'll reference RMB only in my discussion today, unless otherwise stated. Our total revenues were 6.55 billion for the first quarter of 2024, an increase of 62.3% year-over-year and a decrease of 49.8% quarter-over-quarter. Revenues from vehicle sales were 5.54 billion for the first quarter of 2024, representing an increase of 57.8% year-over-year and a decrease of 54.7% quarter-over-quarter. The year-over-year increase was mainly attributable to higher deliveries, particularly the model X9 in the first quarter of 2024. The quarter-over-quarter decrease was mainly attributable to lower deliveries of the G6 and the 2024 G9 compounded by seasonal impact, which is partially offset by a contribution of the X9. Revenues from services and others were 1 billion for the first quarter of 2024, representing an increase of 93.1% year-over-year and an increase of 22.1% quarter-over-quarter. The year-over-year and quarter-over-quarter increases were primarily attributable to the increases of revenue from technical research and development service related to the platform and software strategic technical collaboration with the Volkswagen Group.

謝謝你，小鵬。現在讓我簡要概述我們 2024 年第一季的財務表現。 2024年第一季我們的總營收為65.5億，年增62.3%，季減49.8%。 2024年第一季汽車銷售收入55.4億美元，年增57.8%，季減54.7%。同比增長主要是由於交付量增加，特別是 2024 年第一季的 X9 車型。 。 2024年第一季服務及其他收入為10億，年增93.1%，季增22.1%。年比和環比成長主要歸因於與大眾集團的平台和軟體策略技術合作相關的技術研發服務收入的成長。

Gross margin was 12.9% for the first quarter of 2024 compared with 1.7% for the same period of 2023 and 6.2% for the fourth quarter of 2023. Vehicle margin was 5.5% for the first quarter of 2024 compared with negative 2.5% for the same period of 2023 and 4.1% for the fourth quarter of 2023. The year-over-year and quarter-over-quarter increases were primarily attributable to the cost reduction and the improvement in product mix of models, partially offset by the inventory provision and losses on purchase commitments related to the Model P5 with a negative impact of 3.2 percentage points on vehicle margin for this quarter. As management lowered the P5 forecasted sales due to the expected stronger market amounts for the upcoming new vehicle models. R&D expenses were $1.35 billion for the first quarter of 2024, representing an increase of 4.2% year-over-year and an increase of 3.3% quarter-over-quarter. The year-over-year and quarter-over-quarter increases were mainly in line with the timing and progress of new vehicle programs. SG&A expenses were 1.39 billion for the first quarter of 2024, which is flat on a year-over-year basis and a decrease of 28.3% quarter-over-quarter. The quarter-over-quarter decrease was mainly due to lower commissions to the franchise stores and lower marketing, promotional and advertising expenses.

2024年第一季的毛利率為12.9%，而2023年同期為1.7%，2023年第四季為6.2%。年同期成長4.1%，2023年第四季成長4.1%。車輛利潤率產生了3.2 個百分點的負面影響。由於預計即將推出的新車型的市場銷售將更加強勁，管理層下調了 P5 的銷售預測。 2024年第一季研發費用為13.5億美元，年增4.2%，季增3.3%。年比和環比成長主要與新車專案的時間和進度一致。 2024 年第一季的 SG&A 費用為 13.9 億美元，與去年同期持平，季減 28.3%。環比下降主要是由於特許經營店佣金減少以及行銷、促銷和廣告費用減少。

Fair value gain on derivative liability relating to the contingent consideration was 0.18 billion for the first quarter of 2024 compared with 0.03 billion for the fourth quarter of 2023. This noncash gain was resulted from the fair value change of the contingent consideration related to the acquisition of DD's smart auto business. As a result of the foregoing, loss from operations was 1.65 billion for the first quarter of 2024 compared with 2.59 billion for the same period of 2023 and 2.05 billion for the fourth quarter of 2023. Net loss was 1.37 billion for the first quarter of 2024 compared with 2.34 billion for the same period of 2023 and 1.35 billion for the fourth quarter of 2023. As of March 31, 2024, our company had cash and cash equivalents, restricted cash, short-term investments and time deposits in total of 41.4 billion. 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 first quarter 2021 financial results. This concludes our prepared remarks. We'll now open the line for questions. Operator, please go ahead.

2024 年第一季與或有對價相關的衍生負債公允價值收益為 1.8 億，而 2023 年第四季為 0.3 億。綜上所述，2024年第一季營運虧損為16.5億美元，而2023年同期為25.9億美元，2023年第四季為20.5億美元。下，2023年同期為23.4億，2023年第四季為13.5億。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 2021 年第一季財務業績的更多詳細資訊。我們準備好的演講到此結束。我們現在將開通提問熱線。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。

So my first question is about the revenue contribution from the collaboration with Volkswagen. The management roughly quantify the contribution of the service revenue from Volkwagen in first quarter, and we know that it's recurring. So will it continue climbing quarter-over-quarter in the following months? Is there any chance that the revenue from the new agreements related to the E/E architectures to those who can't do within the year? So that's my first question.

所以我的第一個問題是關於與大眾合作的收入貢獻。管理階層粗略地量化了大眾汽車第一季服務收入的貢獻，我們知道它是經常性的。那麼在接下來的幾個月裡它會繼續逐季攀升嗎？那些在年內無法做到的人是否有機會從與E/E架構相關的新協議中獲得收入？這是我的第一個問題。

Tim, this is Charles. So the platform software collaboration revenue from Volkswagen has been recorded in the service and other revenue in Q1. As you know that it is a recurring in nature. So I think that going forward, every quarter, we will be able to book such platform software, technical services revenue. So in Q1, we booked a multihundred million platform and software services revenue. And I think we believe that in the subsequent quarters, such revenue will be more than what we booked in Q1. And so obviously, I think that given the nature of the platform and the software revenue, it is a very high-margin business for us. And we believe that with our vehicle sales business and also the platform and software technical services revenue, our company level GP margin can be sustainable at the low to mid-teens GP margin -- percentage GP margin. And therefore, I think that we, as Xiaopeng pointed out, we created a very unique business model in the auto industry. In addition to that, and we will continue to deliver our cost reductions through technology and also the supply chain and to further improve our vehicle GP margin. To address your question regarding the revenue from the E/E architecture, and we expect that the revenue from the E/E architecture will start to be recognized from the second half of this year. Thank you.

提姆，這是查爾斯。因此，大眾汽車的平台軟體協作收入已計入Q1的服務和其他收入。如您所知，它本質上是反覆出現的。所以我認為，未來每個季度，我們都將能夠預定這樣的平台軟體、技術服務的收入。所以在第一季度，我們預訂了數億的平台和軟體服務收入。我認為我們相信在接下來的幾個季度中，這樣的收入將超過我們在第一季預訂的收入。顯然，我認為考慮到平台的性質和軟體收入，這對我們來說是一項利潤率非常高的業務。我們相信，憑藉我們的汽車銷售業務以及平台和軟體技術服務收入，我們公司的毛利率可以維持在低至中十幾的毛利率（毛利率百分比）。因此，我認為，正如小鵬所指出的，我們在汽車行業創造了一種非常獨特的商業模式。除此之外，我們將繼續透過技術和供應鏈降低成本，並進一步提高我們的車輛毛利率。針對您關於E/E架構收入的問題，我們預計從今年下半年開始，E/E架構的收入將開始得到確認。謝謝。

Got it. Charles. So my second question is about Tom driving because we noticed that experience to leverage end-to-end large model to upgrade xG by third quarter of this year to cover basically overall in China and would achieve a Level 4 vehicle autonomy next year. So to achieve that target, should we expect expand to manfully increase R&D spending during the period -- and when do you think such a technological leadership can translate into upside to new car sales or potential monetization opportunity? That's my second question.

知道了。查爾斯.所以我的第二個問題是關於湯姆駕駛的，因為我們注意到利用端到端大型模型的經驗，到今年第三季度升級xG，基本上覆蓋中國，明年將實現4級車輛自動駕駛。因此，為了實現這一目標，我們是否應該期望在此期間大力增加研發支出——您認為這種技術領先地位何時可以轉化為新車銷售的成長空間或潛在的貨幣化機會？這是我的第二個問題。

Thank you very much for your question. And before I answer your question, there's one correction to make and which is that we hope to achieve the ability of L4 next year. However, we know that being able to actually implement that would also need to have the hardware as well as the rules and regulations to catch up. So that's point one. And point two, with respect to the large models, and we know that AI large models is going to have a huge impact on all the companies involved. And therefore, as we say, in the past, in terms of the rules and regulations people have and those need to change. And the large models will actually generate these new rules. And thirdly, we don't actually need to increase our manpower at the moment, and we have about the same amount of people working -- continue to work on globalization. In terms of how fast it's going to take or what the speed is going to be like. I would say that it's hard to say. It's hard to sponsify. In the past, when we relied on human power and one would be able to say how many people we would need how much time we would need, however, with a large model and it's about the scale, the algorithm and the speed, et cetera. And my original thinking was that it's going to be the latter half of 2025. And now with the faster development of the technology and AI, and I think that it would be earlier than 2025 or possibly next year. So we'll wait and see.

非常感謝您的提問。在回答你的問題之前，有一點需要修正，那就是我們希望明年能達到L4的能力。然而，我們知道，要真正實施這一目標，還需要有硬體以及規則和法規來跟上。這就是第一點。第二點，關於大型模型，我們知道人工智慧大型模型將對所有相關公司產生巨大影響。因此，正如我們所說，在過去，就人們擁有的規則和規定而言，這些規則和規定需要改變。大型模型實際上會產生這些新規則。第三，我們目前實際上不需要增加人力，而且我們有大約相同數量的人員在工作——繼續致力於全球化。就需要多快或速度會是什麼樣子而言。我想說這很難說。很難贊助。過去，當我們依靠人力時，我們可以說我們需要多少人，我們需要多少時間，但是，對於一個大型模型，它涉及規模、演算法和速度等等。我原來的想法是2025年下半年。所以我們拭目以待。

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

你的下一個問題來自美國銀行的李明。

So my first question is related to more details of your new product pipeline. So in the second half, you will have 2 products. The first product is related to MONA project. So could you give more details regarding the launch timing for the 2B version and also the 2C version? And for the next year, the product pipeline, could you also give some guidance regarding the numbers of your MONA brand product and also your on (inaudible) brand product.

所以我的第一個問題與你們的新產品管道的更多細節有關。所以在下半年，你將有 2 個產品。第一個產品與 MONA 項目相關。那麼您能否提供有關 2B 版本和 2C 版本的發佈時間的更多詳細資訊？對於明年的產品管道，您能否就您的 MONA 品牌產品以及您的（聽不清楚）品牌產品的數量提供一些指導。

Thank you for your question. And first of all, in terms of all our car models and the mainstream offer that we bring to the market would still be for the 2C market and the 2B market is not really our focus, including MONA. And for MONA, this brand and as we say, because what we are looking at is to build in this 2B most beautiful anesthetic cars out there in the market. And therefore, we do not really see this having too much of a big penetration rate into the 2B market. And then secondly, starting from Q3 this year, following onwards and in each different quarters, we will have a different car models being launched in the market and some quarters perhaps there will be a few more different models. And in certain quarters, perhaps this will be simply an updated version of an existing model or a mixed version model, so to speak. And starting from 2024 to 2026, we will continue to roll out different car models into the market. And in terms of the specifics, I don't think that I'm in a position to release further details to the market at the moment. And our plans that you have already heard in my previous presentation. So the second part of my answer to your question. And for the Moneris and actually going forward and next month, we will have more to share with the market in terms of our thinking about the MONA series. And as I said before, for MONA series, we are looking at building a car that is the most beautiful and the most authentic on the external. And in addition, we also hope that this is a car that will bring the company a good amount of profit, and it will also cover various grades of intelligent or autonomous driving. And we hope that in the past for autonomous driving, it was mainly for deposit in the price range of above 200,000. And with MONA series, we hope to bring the autonomous driving into the car with a price range of being 200,000.

謝謝你的問題。首先，就我們所有的車型而言，我們為市場帶來的主流產品仍然是2C市場，2B市場並不是我們真正的重點，包括MONA。對於 MONA 這個品牌，正如我們所說，因為我們的目標是打造市場上最漂亮的 2B 麻醉車。因此，我們並沒有真正看到它對 2B 市場有太大的滲透率。其次，從今年第三季開始，之後在每個不同的季度，我們都會在市場上推出不同的車型，有些季度可能會有更多不同的車型。在某些方面，可以這麼說，也許這只是現有模型的更新版本或混合版本模型。從2024年到2026年，我們將繼續向市場推出不同的車型。就具體細節而言，我認為目前我無法向市場發布更多細節。您在我之前的演講中已經聽說過我們的計劃。所以我回答你問題的第二部分。對於 Moneris，實際上在下個月，我們將與市場分享更多關於 MONA 系列的想法。正如我之前所說，對於 MONA 系列，我們正在尋求打造一輛外觀最美麗、最真實的汽車。而且除此之外，我們也希望這是一款能為公司帶來不錯的利潤的車，同時也能夠涵蓋各個層級的智慧或自動駕駛。而我們希望過去對於自動駕駛，主要是20萬以上價格區間的押金。而MONA系列，我們希望將自動駕駛帶入20萬價位的汽車中。

So last week, PM brand officially entered the Hong Kong market also in the next few months expanding more countries, especially in South. So right now, based on your order launching overseas market and also the progress of you're entering a new market. Right now, are you ahead of your original target, which you mean you mentioned that the total volumes will be a few times more than 10,000 units. And when you incur more R&D expense because you will also provide XNGP onshares in overseas market.

於是上週，PM品牌正式進入香港市場，並在接下來的幾個月內拓展更多的國家，尤其是南部。所以現在，根據您啟動海外市場的訂單以及您進入新市場的進展。現在，您是否超越了最初的目標，即您提到的總銷售量將是 10,000 單位的幾倍。當你承擔更多的研發費用時，因為你也會在海外市場提供XNGP股票。

It's Brian. Let me address your question. First of all, regarding our overseas plan, I would say this year, we are, as you can see, accelerating our pace of international development. We are targeting to roll out to more than 20 countries with our industry-leading technology advanced EVs. The exact number of markets, obviously also correlates to the type of models that we can make available to these markets. For example, right now in Europe, we're already selling the G9 P7. We are launching the left -and driving G6 this month will hopefully deliver very soon. In other markets, for example, in Southeast Asia, and you point out Hong Kong, we are launching the right-hand driving G6 I would say, probably in a couple of months and also will probably be followed with the right-hand driving in to be delivered probably by the end of this year or early next year. So as you can see that the whole international expansion is on track. We think the original guidance we gave in terms of number in terms of tens of thousands as well as this quarter, we would like to achieve more than 10% of our overall delivery number is still valid. So those are the right guidance we want to give international expansion.

是布萊恩。讓我回答你的問題。首先，關於我們的海外計劃，我想說，今年，大家也看到了，我們正在加快國際化發展的腳步。我們的目標是向 20 多個國家推出我們行業領先技術的先進電動車。市場的確切數量顯然也與我們可以向這些市場提供的模型類型有關。例如，目前在歐洲，我們已經在銷售 G9 P7。我們正在推出左側駕駛 G6，希望很快就能交付。在其他市場，例如在東南亞，你指出香港，我們正在推出右側駕駛的 G6，我想說，可能會在幾個月內，隨後也可能會在香港推出右側駕駛的產品。年底或明年初交付。正如你所看到的，整個國際擴張正在步入正軌。我們認為，我們最初給出的數以萬計的指導以及本季度我們希望實現總交付量超過 10% 的指導仍然有效。因此，這些是我們希望為國際擴張提供的正確指導。

And regarding the technical XNGP-related smart driving technology, we are actively now testing a number of overseas markets, currently also working with regulatory bodies to make sure that this compliance with -- and also developing regulations in these markets. The development is actually not going to make material increase in our overall R&D. First of all, I think we are still very targeted in the number of markets that we want to bring the subsets of our XNGP capabilities. But again, also just echo what Xiaopeng just mentioned, our capability of development also has been increasing now with the help of AI and large model capabilities and also removing the need for the map as well as using the large language model to accelerate the development in different scenarios also will benefit our development overseas. So in all, I think we will look forward to seeing some of these capabilities being made available by later this year as well as probably early next year in some of the overseas markets. And also, at the same time, we don't see material increases of R&D expense because of that effort.

至於XNGP相關的智慧駕駛技術，我們現在正在積極測試一些海外市場，目前也與監管機構合作，以確保其符合併正在製定這些市場的法規。這個開發其實並不會讓我們整體的研發有實質的成長。首先，我認為我們對於希望引入 XNGP 功能子集的市場數量仍然非常有針對性。但同樣，也呼應小鵬剛才提到的，我們的開發能力現在也在人工智慧和大模型能力的幫助下不斷增強，並且不再需要地圖以及使用大語言模型來加速開發不同的場景也有利於我們在海外的發展。總而言之，我認為我們將期待在今年稍後甚至明年初在一些海外市場看到其中一些功能的推出。同時，我們也沒有看到研發費用因這項努力而大幅增加。

Your next question comes from (inaudible) with Deutsche Bank.

您的下一個問題來自（聽不清楚）德意志銀行。

My first question is about the number for quarter this year. You're actually very confident about the number for quarter this year. If you say that the volume, we have very high growth. If we assume it will be a 50% growth last year in fourth quarter, monthly volume will be 20,000 if you do 30,000, what's the breakdown between the existing products and upcoming MONA and the 57 largest. Meanwhile, can comment about the margin because we see for margin. Number one is the cost reduction. Second is the export, sell have a higher margin and so on additional EA income from Volkswagen. So is that a gross margin close to 15%.

我的第一個問題是關於今年季度的數字。您實際上對今年季度的數字非常有信心。如果說數量的話，我們有非常高的成長。如果我們假設去年第四季成長 50%，如果做到 30,000，每月銷量將是 20,000，現有產品和即將推出的 MONA 以及 57 個最大的產品之間的細分是多少。同時，可以評論利潤，因為我們看到利潤。第一是降低成本。其次是出口、銷售有較高的利潤等來自大眾的額外EA收入。毛利率接近15%。

It's Brian. Let me just respond. First of all, in the first -- fourth quarter of this year, you will see that our MONA product will be in full delivery and also we'll be launching the delivery of our -- the segments then. So those 2 products will contribute very meaningfully into the monthly delivery in the fourth quarter, but at a very different -- at different stages, as you can tell, because the starting of the delivery is different. So we are very excited about the prospect of both products in terms of generating significant volume. I would say the -- I would say, assuming both models are in full delivery months, I think the monthly numbers, we anticipate simply increased over last year's comparable monthly delivery number is achievable. That's what we believe. Again, I'm not going to give you the exact number as well as breakdown, but that's how we envision the delivery number of growth. But also, what I want to emphasize is that as you just heard that these 2 products is only the beginning of our super product cycle that will last partly for the next 18 to 24 months. And also because the early next year, and we will also have additional products as well as updated models to be launched in the subsequent quarters. We want to make sure that the growth profile maintains stable as well as under control. So we actually want to make sure the additional volume that we want to achieve on a monthly basis is growing in a more stable and sequential manner rather than episodical big bursts like some other model launches you've seen. So I think that that's kind of probably less until the remaining of next year given the other models later.

是布萊恩。讓我簡單回應一下。首先，在今年第一季第四季度，您將看到我們的 MONA 產品將全面交付，屆時我們將啟動我們的細分市場的交付。因此，這兩種產品將對第四季度的每月交付做出非常有意義的貢獻，但在不同的階段，正如你所知，因為交付的開始是不同的。因此，我們對這兩種產品在產生大量產量方面的前景感到非常興奮。我想說的是，假設這兩種型號都處於完整交付月份，我認為我們預計每月交付數量比去年的可比每月交付數量增加是可以實現的。這就是我們所相信的。再次強調，我不會向您提供確切的數字和細分，但這就是我們對交付數量成長的期望。而且，我想強調的是，正如您剛剛聽說的那樣，這兩種產品只是我們超級產品週期的開始，該週期將在未來 18 至 24 個月內部分持續。而且因為明年初，我們還將在後續幾季推出額外的產品以及更新的型號。我們希望確保成長狀況保持穩定並受到控制。因此，我們實際上希望確保每月想要實現的額外銷售量以更穩定和連續的方式增長，而不是像您看到的其他一些模型發布那樣的間歇性大爆發。因此，我認為，考慮到稍後推出的其他型號，到明年剩餘時間，這可能會減少。

Hopefully, we'll give you a pre-look in the next few quarters of earnings. In terms of margin, I would like to comment, first of all, I would say, the MONA model, even though it's an A-class sort of (inaudible), we are still anticipating healthy positive margin contribution from this model and also in healthy quantities. For the B segment to then, we think it's going to be higher margin than probably our current models, except both will contribute, I would say, materially to the product profit gross profit mix. And also, as Charles mentioned, the contribution from Volkswagen will continue become a steady recurring income. At the same time, we anticipate additional contribution from EA collaboration. So with all these contribution as well as our sort of view currently on the potential gross profit margin for the new products. We are maintaining healthy mid- to low to mid-teen margin gross profit for our overall business by the end of this year.

希望我們能讓您預先了解未來幾季的收益。就利潤率而言，我想先評論 MONA 模型，儘管它是 A 級（聽不清楚），但我們仍然預計該模型會帶來健康的正利潤率貢獻，並且在健康的數量。對於當時的 B 細分市場，我們認為它的利潤率可能會比我們目前的模型更高，除非兩者都會對產品利潤毛利組合做出重大貢獻。而且，正如查爾斯所提到的，大眾汽車的貢獻將繼續成為穩定的經常性收入。同時，我們預計 EA 合作將做出更多貢獻。因此，考慮到所有這些貢獻以及我們目前對新產品潛在毛利率的看法。到今年年底，我們的整體業務毛利將保持在健康的中低至中雙位數的水平。

And the second question is that we do see our peers actually launched the EIB version and won't have a big increase. What's our plan for our power chain will also launch the EIV version for product.

第二個問題是，我們確實看到我們的同行實際上推出了EIB版本，並且不會有太大的成長。我們的動力鏈有什麼計劃，也會推出EIV版的產品。

Thank you for your question. And generally speaking, we would not be very willing to disclose any information in relation to our product designs because it is simply still in the planning stage. And going forward, this is something that we would be looking at being implemented in our flying cars. And in terms of the BEV and I can say that. So for the signing party and the auto part, it will be BEV and for the further details, it is better that we wait until the product actually becomes more concrete when we have more detailed plans and post to share with the market. So please allow me just to supplement a few points. And my first point is that, yes, indeed, in the past 1 year and in the next year to come, we will see that there is quite a lot of demand coming from the market, from the consumers or 4 PHEVs. However, you will see that a lot of these consumers, they will realize that to decide having a PHEV and out of the year in terms of the time that they actually go to the petrol station and to get it filled up, it's very little, only a few times. And by having this experience, more and more consumers actually have more confidence in BEVs in pure electric vehicles, so to speak. And at the moment, we are also working hard on the construction and the building of our UltraX5-series product. And I do believe that for consumers having experienced PHEV and for the next car model, and it is very likely that they will go for BEVs.

謝謝你的問題。一般來說，我們不太願意透露任何與我們的產品設計有關的信息，因為它還處於規劃階段。展望未來，我們將考慮在我們的飛行汽車中實現這一點。就純電動車而言，我可以這麼說。所以對於簽約方和汽車零件來說，將會是純電動車，至於更多的細節，我們最好等到產品真正變得更加具體時，我們有更詳細的計劃，然後發布與市場分享。所以請容許我補充幾點。我的第一點是，是的，確實，在過去的一年和未來的一年裡，我們將看到來自市場、來自消費者或 4 PHEV 的大量需求。然而，你會看到很多這樣的消費者，他們會意識到，要決定擁有一輛插電式混合動力汽車，從他們實際去加油站加油的時間來看，這一年的時間非常少，只有幾次。而有了這樣的體驗，越來越多的消費者其實對純電動車中的BEV更有信心了。目前，我們也在努力打造和打造我們的UltraX5系列產品。我確實相信，對於體驗過插電式混合動力車和下一代車型的消費者來說，他們很可能會選擇純電動車。

In addition, in terms of the technology and the movement from these cars and into BEVs actually it's quite a jump into -- in terms of the technology. And you can also see if we look at it globally and for instance, in certain countries in Asia versus certain countries in Europe or in elsewhere and sometimes certain parts could only run on a certain part or certain roads, et cetera. And we do think that it is not as simple, it is not as straightforward as what we hear from the market, and we do think that we would need to be very cautious, and we need to maintain very vigilant. And for XP, obviously, we will also continue to watch the space very carefully.

此外，就技術以及從這些汽車到純電動車的發展而言，實際上，就技術而言，這是一個相當大的飛躍。你也可以看到，如果我們在全球範圍內觀察它，例如，在亞洲的某些國家與歐洲或其他地方的某些國家，有時某些部分只能在某些部分或某些道路上運行，等等。我們確實認為這並不像我們從市場上聽到的那麼簡單、那麼簡單，我們確實認為我們需要非常謹慎，我們需要保持非常警覺。對於 XP，顯然我們也將繼續非常仔細地關注這個領域。

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。

So my first question is regarding the big mode. There has been some feedback in the industry seeing that it involves uncertainty in terms of the decision-making and also it's more difficult to figure out why the decision was made in that way. And also, the feedback is when the model becomes mature, it kind of slows down in terms of upgrading. So how does XPeng think about this issue? This is my first question.

所以我的第一個問題是關於大模式的。業界有一些回饋認為，這涉及決策的不確定性，而且更難弄清楚為什麼會做出這樣的決定。而且，回饋是當模型變得成熟時，升級速度會變慢。那麼小鵬汽車是如何看待這個問題的呢？這是我的第一個問題。

Thank you very much for your question. Yes, indeed in the very beginning, we did worry about it. And however, with the advancement of the technology, we can now see the huge value that end-to-end large models are can bring. And of course, with the technologies that there are always uncertainty. And what we need to do is to make sure that we are able to keep NI and ensuring the safety of the black box of the control of the vehicle, et cetera, and as well as the end-to-end capability. And secondly, we are also building a large size analog model OEMs to help us to carry out the various pilots and the trials. With respect to your second question, I'm not entirely sure if I have understood what you are trying to get, but I'll try the best to answer. And I would say that from an autonomous driving model versus a large language model, these 2 are actually different and looking at it from transformers and this is on open source. And if we do have our own model, actually, we do not need to use such amount of data as what the industry requires was set to be and for instance, 30B or whatever. And we would be able, once identifying the appropriate model, and we would be able to work on that basis and to move forward.

非常感謝您的提問。是的，確實一開始我們確實擔心這個問題。然而，隨著技術的進步，我們現在可以看到端到端大型模型可以帶來的巨大價值。當然，隨著技術的發展，總是存在著不確定性。而我們要做的就是確保我們能夠保住NI，確保車輛的控制黑盒子等的安全性，以及端到端的能力。其次，我們也在建立一個大尺寸的模擬模型OEM來幫助我們進行各種試點和試驗。關於你的第二個問題，我不完全確定我是否理解你想要得到的訊息，但我會盡力回答。我想說，從自動駕駛模型與大型語言模型來看，這兩個模型實際上是不同的，並且從 Transformer 的角度來看，這是開源的。如果我們確實有自己的模型，實際上我們不需要使用業界所要求的資料量，例如30B或其他資料。一旦確定了適當的模型，我們就能夠在此基礎上開展工作並繼續前進。

So my second question is regarding the distribution channel. So far, I can see that the stores are mostly in some prime location, but with relatively limited area XPeng as gradually announce new models and expand the portfolio, including MONA, do you see the need to expand the average size of the stores or the area of the stores even at a cost of say shifting out from the most prime location.

所以我的第二個問題是關於分銷通路的。目前來看，我看到門市大部分都在一些黃金地段，但面積相對有限，小鵬汽車隨著逐漸推出新車型和擴大產品組合，包括MONA，您認為是否需要擴大門店的平均規模或甚至以從最黃金地段搬遷為代價。

Thank you for your question. And first of all, we have always continued to optimize our channels. And for instance, we are looking at going into the lower tier cities and to try and cover as many lower-tier cities as possible. In the past, we have mainly focused on the high end and the mid-end tier cities. And secondly, we do believe that 4 asset stores these comprehensive of stores we would be able to provide a better support of services. And thirdly, even with the new stores that we opened up in the malls. And again, we are not going to open the office with a huge area of floor area and because we do believe that even with an appropriate amount of space available for these stores in the more and the conversion rate of successful order is actually very high. And in addition, in terms of our plans for store openings in Q4 last year, and we can see that it has been well recovered in Q1 and Q2 this year, and we predict that by Q3 this year, we will have about 400 to 600 stores.

謝謝你的問題。首先，我們一直持續優化我們的頻道。例如，我們正在考慮進入低線城市，並嘗試覆蓋盡可能多的低線城市。過去，我們主要專注於高端和中端一線城市。其次，我們確實相信4家資產商店這些綜合性的商店我們將能夠提供更好的服務支援。第三，即使我們在購物中心開設了新商店。再說一次，我們不會開設面積很大的辦公室，因為我們確實相信，即使有適當的空間可供這些商店使用，成功訂單的轉換率實際上也非常高。另外，從我們去年Q4的開店計畫來看，今年Q1、Q2已經恢復得很好了，我們預計到今年Q3，我們會有400到600家左右的開店計畫。

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。

Let me just translate. So in terms of our MONA brand, so for the 2C customers, what are some of the competing models in the market? And then also for the customers with this price segment, they might have less demand in terms of the smart functions and higher demand for like the pricing. So aside from, I think, the vehicle design, what are some of our key competitive advantages in the segment. Also, do we have any sales volume target for the 2B part of MONA distribution.

我簡單翻譯一下吧。那麼對於我們MONA這個品牌來說，那麼對於2C客戶來說，市場上有哪些競爭的型號呢？然後對於這個價位段的顧客來說，他們可能對智慧功能的需求較少，而對定價等方面的需求較高。因此，我認為除了車輛設計之外，我們在該領域的一些主要競爭優勢是什麼。另外，我們對於 MONA 發行的 2B 部分有什麼銷售目標嗎？

Thank you very much for your question. And actually, this question is better asked in our mono product launch events. Anyway, I'll make a few comments. And first of all, for this MONA product as introduced and presented earlier, and this is a product with a very high beauty as well as external asset exit. And in addition, it also comes with a cheaper price. And we actually have a model and which is what we call the USD 10,000 rule and which means that every time the price goes down by USD 10,000, and you will see that the sales of that product will actually go up by one time will actually go up by 2x, and this model has been validated in our old experience with our other vehicles of a price range above 200,000. And now if we would be able to implement this and to give a bit of a price discount for MONA series, and in terms of the specific price reduction, we will talk about in our MONA product launch. And I believe the sale that we are looking at is actually huge. And I would say it's about 2 to 4x of the present level. In the past, for 100,000 to 200,000 price range, nobody was able to provide the consumers with the part that is not only beautiful, has a good space, but also a smart card with a very good technology. After 4 years of hard work and R&D and so much investment into this, finally, XP has been able to come up with the product in MONA that is able to meet all the above demand. In other words, if you look at our competitors at the moment, yes, it's kind of from data they can sell 20,000 to 50,000 units of cars per month. And however, I can assure you that for our MONA product and you would see a huge difference between our car versus the competitors' cards because not only that we are able to provide the beauty to provide the space, but also to provide this range of price and with a good technology and the good smart driving functionality that it was this need that was not able to be met in the past.

非常感謝您的提問。事實上，這個問題最好在我們的單晶產品發表會上提出。無論如何，我會發表一些評論。首先，對於前面介紹和展示的這款MONA產品來說，這是一款顏值和外部資產退出都非常高的產品。此外，它的價格也更便宜。我們實際上有一個模型，這就是我們所說的 10,000 美元規則，這意味著每當價格下降 10,000 美元，你會看到該產品的銷量實際上會上升一倍提升了2倍，而且這個車型已經在我們之前與其他20萬價位以上車輛的經驗中得到了驗證。現在如果我們能夠實現這一點，給MONA系列一些價格折扣，具體的降價幅度，我們會在我們的MONA產品發布會上講。我相信我們正在尋找的銷售實際上是巨大的。我想說這大約是目前的 2 到 4 倍。過去，在10萬到20萬的價格區間，沒有人能夠提供消費者既美觀、空間大，又技術非常好的智慧卡。經過4年的努力和研發以及大量的投入，XP終於在MONA推出了能夠滿足上述所有需求的產品。換句話說，如果你看看我們目前的競爭對手，是的，這是從他們每月可以銷售 20,000 到 50,000 輛汽車的數據來看的。然而，我可以向您保證，對於我們的 MONA 產品，您會看到我們的汽車與競爭對手的卡之間存在巨大差異，因為我們不僅能夠提供美觀、提供空間，而且還能夠提供一系列價格以及良好的技術和良好的智慧駕駛功能，正是這種需求是過去無法滿足的。

So to answer your second question and with respect to smart driving or autonomous driving. And I would say that it is likely yet that some of these consumers that they may not need a very highly advanced functions, and we will possibly be looking at a strategy that is classifying and getting out the different levels of orders to the consumers. And I would actually like to put the Internet thinking that when I was establishing my business and something was quite popular in the industry back in those days. And what it says is that for the mobile phone users, actually, they are not the high-end generators of the data. It is rather that the people who are making fewer phone calls are the high-end data generators. So adopted that analogy without thinking. And if we look at the RMB 100 to RMB 200,000 price range, and this is actually the group of consumers that would use more of the autonomous driving functions. It's simply that in the past, this was out of their price range, and they were not able to afford this once they are able to afford this, they would be all over the autonomous driving cars in the prince range. And I do believe that the next year in 2025, we will see this coming into a reality.

所以回答你的第二個問題，關於智慧駕駛或自動駕駛。我想說的是，其中一些消費者可能不需要非常先進的功能，我們可能會考慮一種策略，對消費者進行分類並向消費者發出不同程度的訂單。我其實想把網路的想法放在我創業的時候，當時業界很流行一些東西。而它所說的就是，對於手機用戶來說，其實他們並不是數據的高階產生者。更確切地說，打電話較少的人是高階數據產生者。於是不假思索地採用了這個比喻。而如果我們看100到20萬元的價格區間，這其實是更多使用自動駕駛功能的消費者群。只是在以前，這超出了他們的價格範圍，他們買不起，一旦買得起，他們就會遍及王子系列的自動駕駛汽車。我相信明年，也就是 2025 年，我們將看到這成為現實。

Also, this is Brian. Let me just comment on your question on the 2B segment. what we see in this price segment product, the successful 2C product will also -- will be used quite prevalently into channels as well. So I think the success of this product, even though not targeted at the 2B segment, but still, we'll have significant use cases apply to be mobility use. And also with our partnership in collaboration with DD, I think that multipurpose sort of use case will be very, very prudent in our user base for MONA.

另外，這是布萊恩。我簡單評論一下你關於2B部分的問題。我們在這個價格段產品中看到的，成功的 2C 產品也將在通路中相當普遍地使用。因此，我認為該產品的成功，儘管不是針對 2B 細分市場，但我們仍然會有重要的用例適用於行動用途。而且透過我們與 DD 的合作，我認為多用途用例在我們的 MONA 用戶群中將是非常非常謹慎的。

And so just to quickly follow up. So for the 2B part, should we still expect 100,000 units in the first 13 months and then 100,000 units in the next 12 months. Is this still a reasonable expectation?

所以只是為了快速跟進。那麼對於2B部分，我們是否應該仍然預期前13個月為10萬台，然後在接下來的12個月為10萬台？這仍然是一個合理的期望嗎？

The agreement we have with DD is still valid, we still provide such an incentive for MONA to be used in DD system in -- if they achieve those volumes, I think the incentive will still be valid. Yes.

我們與 DD 達成的協議仍然有效，我們仍然為 MONA 在 DD 系統中使用提供這樣的激勵——如果他們達到這些數量，我認為激勵仍然有效。是的。

So this is mainly -- so is up to DD, how many they want to purchase.

所以這主要取決於 DD，他們想要買多少。

No. I think if you read our agreement, which has made public available, it is actually an agreement that if the Mona product is used in the DD system, in the mobility ecosystem, they could add to a certain number, they will receive additional incentive. It does not relate to their own purchases.

不，我想如果你讀過我們已經公開的協議，它實際上是一個協議，如果Mona產品在DD系統中使用，在移動生態系統中，他們可以添加到一定數量，他們將獲得額外的激勵。與自己購買的物品無關。

So my second question is in terms of the software services revenue. So we see started recognition and has been very helpful in terms of our overall margin and profitability. So because our labor agreement with Volkswagen is not exclusive, are we actually actively exploring a similar collaboration with other partners?

所以我的第二個問題是軟體服務收入方面。因此，我們看到開始得到認可，這對我們的整體利潤和盈利能力非常有幫助。那麼，由於我們與大眾的勞資協議並不排他性，我們實際上是否正在積極探索與其他合作夥伴的類似合作？

In -- I think that our strategic collaboration with Volkswagen actually create a very strong value -- strategic value to each other. For example, we are collaborating on the technology. And also, we are collaborating on supply chain and also during the process, we also identified the opportunity to work more closely going forward in other areas. We believe there are a lot of things we can do as a strategic partner to each other. However, I think that from the collaboration perspective, our collaboration with Volkswagen were not exclusive to each other. So therefore, I think that we are also open-minded to looking for the strategic collaboration opportunity with other players. However, I think that what we value most is that we see the -- how we can bring value to a partnership and create value to each other, not just a supplier relationship.

我認為我們與大眾汽車的策略合作實際上為彼此創造了非常強大的價值——戰略價值。例如，我們正在技術方面進行合作。此外，我們正在供應鏈方面進行合作，在此過程中，我們還發現了在其他領域進行更密切合作的機會。我們相信，作為彼此的策略夥伴，我們可以做很多事情。不過，我認為從合作的角度來看，我們與大眾的合作並不是排他性的。因此，我認為我們也持開放的態度去尋找與其他參與者的策略合作機會。然而，我認為我們最重視的是我們如何為合作關係帶來價值並為彼此創造價值，而不僅僅是供應商關係。

That does conclude our question-and-answer session. I'd like to turn the call back over to the company for closing remarks.

我們的問答環節到此結束。我想將電話轉回公司以供結束語。

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 for the XPeng Financial Communications.

再次感謝您今天加入我們。如果您還有其他疑問，請隨時透過小鵬財經傳播網站提供的聯絡資訊聯絡小鵬汽車投資者關係部。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。