Xpeng Inc (XPEV) 2021 Q2 法說會逐字稿

Hello, ladies and gentlemen.

女士們，先生們，您好。

Thank you for standing by for the Second Quarter 2021 Earnings Conference Call for XPeng Inc.

感謝您支持小鵬汽車2021年第二季度財報電話會議。

(Operator Instructions) Today's conference call is being recorded.

（操作員說明）正在錄製今天的電話會議。

I will now turn the call over to your host, Mr. [Ziling Ma], Director of Investor Relations of the company.

我現在將電話轉給您的主持人，公司投資者關係總監[Ziling Ma]先生。

Please go ahead, [Mr.

請繼續，[先生。

Ma].

嘛]。

Thank you.

謝謝你。

Hello, everyone, and welcome to XPeng's Second Quarter 2021 Earnings Conference Call.

大家好，歡迎來到小鵬汽車2021年二季度財報電話會議。

Our financial and operating results were issued by Newswire services earlier today and are available online.

我們的財務和經營業績今天早些時候由 Newswire 服務發布，可在線查閱。

You can also view the earnings press release by visiting the IR section of our website at ir.xiaopeng.com.

您還可以訪問我們網站 ir.xiaopeng.com 的 IR 部分查看收益新聞稿。

Participants on today's call will include our Co-Founder, Chairman and CEO, Mr. He Xiaopeng; Vice Chairman and President, Dr. Brian Gu; Vice President of Finance, Mr. Dennis Lu; Managing Director of Strategy, Mr. Charles Zhang; and myself.

今天電話會議的參與者包括我們的聯合創始人、董事長兼首席執行官何小鵬先生；副董事長兼總裁顧博良博士；財務部副總裁盧志強先生；策略部董事總經理，張朝陽先生；和我自己。

Management will begin with prepared remarks, and the call will conclude with a Q&A session.

管理層將從準備好的發言開始，電話會議將以問答環節結束。

A webcast replay of this conference call will be available on the IR section of our website.

本次電話會議的網絡直播重播將在我們網站的 IR 部分提供。

Before we continue, please note that today's discussion will contain forward-looking statements under safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

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安全港條款的前瞻性陳述。

Forward-looking statements involve inherent risks and uncertainties.

前瞻性陳述涉及固有的風險和不確定性。

As such, the company's results may be materially different from views expressed today.

因此，該公司的業績可能與今天表達的觀點存在重大差異。

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

有關這些及其他風險和不確定性的更多信息包含在公司提交給美國證券交易委員會的相關公開文件中。

The company does not assume any obligation to update any forward-looking statements, except as required under applicable law.

公司不承擔任何更新任何前瞻性陳述的義務，除非適用法律要求。

Please also note that XPeng's earnings press release and this conference call will include the disclosure of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures.

另請注意，小鵬汽車的收益新聞稿和本次電話會議將披露未經審計的 GAAP 財務指標以及未經審計的非 GAAP 財務指標。

XPeng's earnings press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures.

XPeng 的收益新聞稿包含未經審計的非 GAAP 措施與未經審計的 GAAP 措施的調節。

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

我現在將電話轉交給我們的聯合創始人、董事長兼首席執行官何小鵬先生。

Please go ahead.

請繼續。

(foreign language)

（外語）

[Interpreted] Hello, everyone.

【解讀】大家好。

Thank you for joining XPeng's Second Quarter 2021 Earnings Conference Call.

感謝您參加小鵬汽車 2021 年第二季度財報電話會議。

In the second quarter of 2021, XPeng's vehicle deliveries reached 17,398, another quarterly record high, representing a 439% increase year-over-year.

2021年二季度，小鵬汽車交付量達到17,398輛，再創季度新高，同比增長439%。

For the 6-month period ended June 30, 2021, XPeng delivered 30,738 vehicles, surpassing the total number of vehicles delivered for the full year of 2020.

截至2021年6月30日止6個月，小鵬汽車交付30,738輛，超過2020年全年交付量。

And in July, our monthly deliveries exceeded 8,000 units, setting a new monthly record with an all-time high order backlog.

而在 7 月，我們的月交付量超過 8,000 台，創下了歷史新高的訂單積壓單月記錄。

With the rapid growth in deliveries, our second quarter profitability further improved, and our gross margin reached 11.9%.

隨著出貨量的快速增長，二季度盈利能力進一步提升，毛利率達到11.9%。

Our rapid delivery growth was driven by consumers' increasing demand for Smart EVs and our leadership position in smart electric vehicle products and our fast product iterations.

消費者對智能電動汽車日益增長的需求以及我們在智能電動汽車產品方面的領先地位以及我們快速的產品迭代推動了我們快速的交付增長。

In the second quarter, the attach rate of XPILOT 3.0 software reached 25%.

第二季度，XPILOT 3.0軟件的附著率達到25%。

Among the nearly 35,000 P7s that have been delivered as of the end of June 2021, close to 8,000 units were equipped with XPILOT 3.0.

在截至2021年6月下旬已交付的近3.5萬台P7中，近8000台搭載了XPILOT 3.0。

Also in June, our highway NGP mileage penetration rate exceeded 60%, and NGP assisted our customers in driving for around 1.45 million kilometers.

同樣在6月，我們的高速公路NGP里程普及率超過60%，NGP助力客戶行駛約145萬公里。

The average monthly usage rate of NGP exceeded 65%.

NGP月均使用率超過65%。

This is a clear demonstration of customers' increasing adoption and reliance on our advanced driver-assistance system.

這清楚地表明客戶越來越多地採用和依賴我們的高級駕駛輔助系統。

With the rollout of XPILOT 3.5 earlier next year and afterwards, XPILOT 4.0, our future advanced driver-assistance system built on our next-generation hardware platform, will be able to empower a broad range of end-to-end driver driving scenarios, including those not covered by HD maps.

隨著 XPILOT 3.5 於明年初及之後的推出，我們未來基於下一代硬件平台構建的高級駕駛員輔助系統 XPILOT 4.0 將能夠支持廣泛的端到端駕駛員駕駛場景，包括那些沒有被高清地圖覆蓋的。

As a result, customers' demand and reliance on advanced driver-assistance system will continue to increase.

因此，客戶對先進駕駛輔助系統的需求和依賴將繼續增加。

As we advance in developing cutting-edge technologies, safety will always remain our top priority.

隨著我們在開發尖端技術方面取得進展，安全始終是我們的首要任務。

We have an unwavering commitment to enhancing driver safety education and providing hardware redundancy and software iteration to ensure our customers can safely use our advanced driver-assistance system.

我們堅定不移地致力於加強駕駛員安全教育並提供硬件冗餘和軟件迭代，以確保我們的客戶可以安全地使用我們先進的駕駛員輔助系統。

To illustrate, XPeng is the first EV maker to implement a driver safety proficiency test for customers before they can activate our advanced driver-assistance system.

為了說明這一點，小鵬汽車是第一家在客戶激活我們的高級駕駛輔助系統之前為客戶實施駕駛員安全能力測試的電動汽車製造商。

In addition, we are also the first in the industry, starting from our P5 model, that equip larger technology to be adopted in some of the configurations to increase redundancy of perception through hardware and sharpen its adaptabilities in handling corner cases to further safeguard driver safety.

此外，我們還率先在行業內從P5車型開始，在部分配置上採用更大的科技，通過硬件增加感知冗餘度，增強處理邊角情況的適應性，進一步保障行車安全。 .

Our strategic focus on advancing fast product iteration allows us to further expand our addressable market.

我們對推進快速產品迭代的戰略重點使我們能夠進一步擴大我們的潛在市場。

In the second quarter, we began sales and deliveries of lithium iron phosphate or LFP battery-powered G3s and P7s, and their deliveries comprise more than 20% of total deliveries for each model.

第二季度，我們開始銷售和交付磷酸鐵鋰或磷酸鐵鋰電池驅動的 G3 和 P7，它們的交付量佔每個型號總交付量的 20% 以上。

These new additions expand our price range and customer base.

這些新增產品擴大了我們的價格範圍和客戶群。

With the growing supply of LFP cells, we're confident with the increasing proportion of LFP models among our deliveries in the future.

隨著 LFP 電池供應量的增加，我們對未來交付的 LFP 模型比例不斷增加充滿信心。

Moreover, the strong margin response to our recently launched G3i, the new mid-cycle facelift version of the G3, exceeded our expectations.

此外，我們最近推出的 G3i（G3 的新中期改款版本）的強勁利潤率反應超出了我們的預期。

The production preparation and switching of G3i is expected to have impact on G3 and G3i production and delivery for a few weeks.

G3i的生產準備和切換預計將對G3和G3i的生產和交付產生數週的影響。

We plan to start deliveries at the end of August and will increase delivery scale in the next quarter.

我們計劃8月底開始發貨，下季度將增加發貨規模。

In July, we announced configuration details and the price range for our third production model, the P5, and its market reception has been overwhelmingly positive.

7 月，我們公佈了第三款量產機型 P5 的配置細節和價格範圍，其市場反響非常積極。

We expect to officially launch the P5 and unveil its MSRP in mid-September and begin its deliveries in October.

我們預計將在 9 月中旬正式推出 P5 並公佈其廠商建議零售價，並於 10 月開始交付。

With P7, we have already demonstrated the unique driving experience brought by our full-stack in-house algorithm for advanced driver-assistance system that is capable of handling complex driving scenarios in China.

憑藉P7，我們已經展示了自研全棧高級駕駛輔助系統算法帶來的獨特駕駛體驗，能夠應對中國複雜的駕駛場景。

Now with P5, we are bringing to our users a driving experience that will enable them to utilize advanced driver-assistance system in urban driving scenarios with ability to switch between different driving scenarios smoothly.

現在有了 P5，我們正在為用戶帶來一種駕駛體驗，使他們能夠在城市駕駛場景中使用先進的駕駛輔助系統，並能夠在不同的駕駛場景之間平滑切換。

I believe this is only the start of XPeng's journey to accentuate the development of our leading advanced driver-assistance technologies.

我相信這只是小鵬汽車專注於開發我們領先的高級駕駛輔助技術的旅程的開始。

Moreover, with the P5, we're able to offer our industry-leading advanced driver-assistance system and smart cockpit technology to the broader family sedan market with an attractive pricing range from RMB 160,000 to RMB 230,000, further accelerating the EV disruption of the traditional ICE and nonintelligent automobile market.

此外，憑藉 P5，我們能夠以 16 萬元至 23 萬元的極具吸引力的定價區間，為更廣泛的家用轎車市場提供我們行業領先的先進駕駛輔助系統和智能座艙技術，進一步加速電動汽車對汽車市場的顛覆。傳統的 ICE 和非智能汽車市場。

Here, I would like to share some of my predictions for the future.

在這裡，我想分享一些我對未來的預測。

First, in China, vehicles priced between RMB 150,000 and RMB 400,000 will constitute the largest segment in EV market and show the fastest growth rate.

首先，在中國，售價在15萬元至40萬元之間的汽車將成為電動汽車市場最大的細分市場，並呈現出最快的增長速度。

Furthermore, the disruptive forces that Smart EV brings to traditional mobility in this segment will also be the most vigorous and the swiftest.

此外，Smart EV在這一細分領域對傳統出行帶來的顛覆性力量也將是最強勁、最迅猛的。

Second, high-level or advanced driving-assistance system will trigger qualitative changes in users' mobility experience.

其次，高級駕駛輔助系統將引髮用戶出行體驗的質變。

Third, as China is poised to take the lead in the development of Smart EVs around the world, China's Smart EV makers will be an excellent position to expand globally.

第三，隨著中國有望引領全球智能電動汽車的發展，中國智能電動汽車製造商將處於全球擴張的絕佳位置。

In order to be able to capitalize on such opportunities, on July 7, XPeng completed our dual primary IPO on the Hong Kong Stock Exchange and raised HKD 15.8 billion.

為了能夠抓住這些機會，7 月 7 日，小鵬汽車完成了在香港聯交所的雙重主要 IPO，籌集了 158 億港元。

Looking ahead, we plan to further increase investment in intelligent technology innovations, branding and marketing, service facilities across our supercharging sales channel network and global expansion.

展望未來，我們計劃進一步加大在智能技術創新、品牌營銷、服務設施等方面的投入，助力我們的銷售渠道網絡和全球擴張。

Our differentiated products and technological path we chose, along with investments in human capital and global expansion not only bolster our leading position in the current landscape, but also underscore our long-term vision and strategic deployment.

我們選擇的差異化產品和技術路徑，以及對人力資本和全球擴張的投資，不僅鞏固了我們在當前領域的領先地位，也凸顯了我們的長期願景和戰略部署。

Looking forward, in a few years' time, we will accelerate the pace of our new product deployment -- development.

展望未來，幾年後，我們將加快新產品部署——開發的步伐。

Starting from 2023, we plan to launch at least 2 or 3 new vehicles every year, supporting XPILOT 3.0 or above.

從2023年開始，我們計劃每年至少推出2-3款新車，支持XPILOT 3.0或以上版本。

We intend to make these future new models, including hardware, software and services simultaneously available in China and in international markets.

我們打算讓這些未來的新模式，包括硬件、軟件和服務同時在中國和國際市場上可用。

We'll also broaden our primary price range in China from between RMB 150,000 and RMB 300,000 to between RMB 150,000 to RMB 400,000, making our cutting-edge Smart EVs accessible to a broader customer base.

我們還將把我們在中國的主要價格範圍從人民幣 15 萬元至人民幣 30 萬元擴大到人民幣 15 萬元至人民幣 40 萬元，使我們的尖端智能電動汽車能夠為更廣泛的客戶群所用。

As we accelerate our effort in technology innovations and product design and development for more new models, we are committed to growing and developing our R&D team.

隨著我們加快技術創新和產品設計與開發更多新車型的努力，我們致力於發展和發展我們的研發團隊。

As of the end of second quarter 2021, our R&D headcount exceeded 3,000, a nearly 50% increase compared to the beginning of this year.

截至2021年二季度末，研發人員超過3000人，較年初增長近50%。

And by the end of 2021, it will increase to more than 4,500.

到 2021 年底，將增加到 4500 多個。

We also plan to increase the number of engineers dedicated to research and development of autonomous driving technology, spanning software, hardware, big data and navigation map for international markets.

我們還計劃增加專門研發自動駕駛技術的工程師人數，涵蓋面向國際市場的軟件、硬件、大數據和導航地圖。

We estimate the total number of engineers working in our autonomous driving software, hardware and relative supporting infrastructure teams to exceed 1,500 by the end of this year.

我們估計到今年年底，在我們的自動駕駛軟件、硬件和相關支持基礎設施團隊工作的工程師總數將超過 1,500 人。

In this June, the penetration rate of the EVs in China's market has surpassed 10% for the first time.

今年6月，中國市場電動汽車普及率首次突破10%。

I believe the Chinese Smart EV market is navigating through an inflection point for the next level of growth, which arrived earlier than expected.

我相信中國智能電動汽車市場正在經歷下一個增長水平的轉折點，這個增長水平比預期的要早。

To tap into this booming opportunities, we will accelerate the construction of our infrastructure facilities, underpinning our long-term strategic road map and investments.

為抓住這個蓬勃發展的機遇，我們將加快基礎設施建設，以支持我們的長期戰略路線圖和投資。

As of the end of June, XPeng's physical sales network consisted of 200 sales stores across 72 cities in China.

截至 6 月底，小鵬汽車的實體銷售網絡由遍布中國 72 個城市的 200 家銷售門店組成。

Of these sales stores, 110 were directly operated by us.

在這些銷售門店中，有 110 家由我們直接經營。

To keep pace with our rapid development delivery growth, we plan to lift our guidance of the number of sales stores from 300 to more than 350 stores by the end of 2021.

為了跟上我們快速發展的交付增長，我們計劃到 2021 年底將銷售門店數量的指導從 300 家提高到 350 多家。

We also continue to rapidly expand our supercharging network.

我們還繼續快速擴展我們的增壓網絡。

As of June 30, the number of XPeng-branded supercharging station grew to 231, covering 65 cities.

截至6月30日，小鵬品牌超充站數量增至231座，覆蓋65個城市。

Recently, the first batch of 11 XPeng-branded supercharging stations has been deployed on the Shandong section of the Beijing-Shanghai Expressway and the Hunan section of the Beijing-Hong Kong-Macau Expressway.

近日，京滬高速山東段、京港澳高速湖南段首批11座小鵬品牌超充站落地。

We'll move forward to deploy our supercharging capabilities across the entire Beijing-Shanghai, Beijing-Guangzhou and Beijing-Hong Kong-Macau Expressway, further enhancing our ability to serve our customers in long-distance driving.

推進京滬高速、京廣高速、京港澳高速全線增壓佈局，進一步提升長途客戶服務能力。

We plan to have more than 500 XPeng-branded supercharging stations operational by the end of this year, accelerating the expansion of our charging network across lower-tier cities.

我們計劃在今年年底前擁有 500 多個小鵬品牌超級充電站投入運營，加速我們在低線城市的充電網絡擴張。

In terms of our international expansion, as of this June 30, we had explored approximately 500 G3s to Norway.

在我們的國際擴張方面，截至今年 6 月 30 日，我們已經探索了大約 500 個前往挪威的 G3。

And in August, we plan to export P7 to the Norwegian market as well.

8 月份，我們還計劃將 P7 出口到挪威市場。

We'll continue our efforts in Norway and other European markets to further strengthen our local operations through sales, delivery and customer service enhancements.

我們將繼續在挪威和其他歐洲市場努力，通過加強銷售、交付和客戶服務來進一步加強我們在當地的業務。

Our target is to prepare ourselves for the overseas market in both left- and right-hand drive countries within the 3 years' time of 2020 to 2022, and accelerate our penetration into international markets with our upcoming Smart EV models equipped with XPILOT 4.0 starting from 2023.

我們的目標是在2020年至2022年的3年時間裡做好準備在左駕和右駕國家的海外市場，並通過我們即將推出的配備XPILOT 4.0的Smart EV車型加速我們對國際市場的滲透。 2023.

Turning to our production.

轉向我們的生產。

With our G3i and P5 commencing production, our Zhaoqing factory is now able to produce the G3i, P7 and P5 concurrently.

隨著我們的G3i和P5開始生產，我們的肇慶工廠現在可以同時生產G3i、P7和P5。

And in August, we added a second production shift at the Zhaoqing factory.

8 月，我們在肇慶工廠增加了第二個生產班次。

With the increase in production output, we expect our monthly delivery volume to potentially reach 15,000 in the fourth quarter.

隨著產量的增加，我們預計我們的月交付量在第四季度可能達到 15,000 個。

That said, supply chain challenges, particularly those pertaining to chip shortage, remain the biggest production hurdle we are facing.

也就是說，供應鏈挑戰，尤其是與芯片短缺有關的挑戰，仍然是我們面臨的最大生產障礙。

With the support of the Zhaoqing municipal government, in August, we kicked off the Phase 2 expansion of our Zhaoqing factory, which we expect to increase annual design production capacity at the site from 100,000 to 200,000 by the end of the first half of 2022.

在肇慶市政府的支持下，我們於 8 月啟動了肇慶工廠的二期擴建，我們預計到 2022 年上半年末，該工廠的年設計產能將從 10 萬輛增加到 20 萬輛。

Construction for our Guangzhou factory remains on track, and we expect the main structure to be completed in the first quarter next year and mass production to begin in the third quarter 2022.

我們廣州工廠的建設仍在進行中，我們預計主體結構將於明年第一季度完成，並於 2022 年第三季度開始量產。

In summary, we'll continue to strive to overcome the various challenges before us stemming from chip shortage, sales structural shortage, COVID-19 resurgence in some parts of the world and production transition from G3 to G3i.

總之，我們將繼續努力克服擺在我們面前的各種挑戰，這些挑戰源於芯片短缺、銷售結構性短缺、世界某些地區的 COVID-19 捲土重來以及從 G3 到 G3i 的生產過渡。

In the third quarter of 2021, we expect our Smart EV deliveries to be between approximately 21,500 and 22,500 units and our total revenue to be between approximately RMB 4.8 billion and RMB 5 billion.

在 2021 年第三季度，我們預計我們的智能電動汽車交付量將在約 21,500 至 22,500 輛之間，我們的總收入將在約人民幣 48 億元至人民幣 50 億元之間。

I look forward to sharing with you our latest progress on technology innovations on our third XPeng Technology Day on October 24 this year.

期待在今年 10 月 24 日的第三個小鵬科技日與大家分享我們在技術創新方面的最新進展。

Thank you, everyone.

謝謝大家。

With that, I will now turn the call over to our VP of Finance, Mr. Dennis Lu, to discuss our financial performance for the second quarter of 2021.

有了這個，我現在將把電話轉給我們的財務副總裁 Dennis Lu 先生，討論我們 2021 年第二季度的財務業績。

Thank you, Xiaopeng, and hello, everyone.

謝謝小鵬，大家好。

Our outstanding performance in the second quarter continued to reflect XPeng's leadership in China's booming Smart EV industry, where we continue to introduce innovative technology, differentiated products and premium service.

我們在第二季度的出色表現繼續反映了小鵬汽車在中國蓬勃發展的智能電動汽車行業的領導地位，我們在該行業不斷推出創新技術、差異化產品和優質服務。

Fueled with strong delivery performance, our revenues in the second quarter grew 537% compared with the same period of 2020.

在強勁的交付表現的推動下，我們第二季度的收入與 2020 年同期相比增長了 537%。

We also witnessed further improvement in our financials.

我們還見證了財務狀況的進一步改善。

In particular, our gross margin continued the upward trend and reached 11.9% in the second quarter.

特別是，我們的毛利率繼續保持上升趨勢，在第二季度達到 11.9%。

Now I would like to walk you through our detailed financial results for the second quarter of 2021.

現在我想向您介紹一下我們 2021 年第二季度的詳細財務業績。

I will reference RMB only in my discussion today, unless otherwise stated.

除非另有說明，否則我在今天的討論中僅提及人民幣。

Total revenues were RMB 3.8 billion for the second quarter of 2021, representing an increase of 537% from RMB 591 million for the same period of 2020 and an increase of 28% from RMB 2.95 billion for the first quarter of 2021.

2021年第二季度總收入為人民幣38億元，較2020年同期的人民幣5.91億元增長537%，較2021年第一季度的人民幣29.5億元增長28%。

Revenues from vehicle sales were RMB 3.6 billion for the second quarter of 2021, representing an increase of 562% from RMB 541 million for the same period of 2020 and an increase of 28% from RMB 2.8 billion for the first quarter of 2021.

2021年第二季度汽車銷售收入為人民幣36億元，較2020年同期的人民幣5.41億元增長562%，較2021年第一季度的人民幣28億元增長28%。

The year-over-year increase were mainly due to higher vehicle delivery, especially for the P7.

同比增長主要是由於車輛交付量增加，尤其是 P7。

The quarter-over-quarter increase was also attributable to higher P7 sales as a result of seasonality, channel expansion and increasing brand equity.

環比增長還歸因於季節性、渠道擴張和品牌資產增加導致的 P7 銷售額增加。

Revenues from service and others were RMB 177 million for the second quarter of 2021, representing an increase of 256% from RMB 49.7 million for the same period of 2020 and an increase of 26% from RMB 141 million for the first quarter of 2021.

2021 年第二季度服務及其他收入為人民幣 1.77 億元，較 2020 年同期的人民幣 4970 萬元增長 256%，較 2021 年第一季度的人民幣 1.41 億元增長 26%。

The year-over-year and quarter-over-quarter increase were mainly due to more income from service, parts and accessory sales in line with higher accumulated vehicle sales.

同比和環比增長主要是由於服務、零部件和配件銷售收入增加以及累計汽車銷量增加。

Gross margin was 11.9% for the second quarter of 2021 compared with negative 2.7% for the same period a year ago and 11.2% for the first quarter of 2021, respectively.

2021 年第二季度毛利率為 11.9%，而去年同期和 2021 年第一季度分別為負 2.7% 和 11.2%。

Vehicle margin was 11% for the second quarter of 2021 compared with negative 5.6% for the same period 2020 and 10.1% for the first quarter of 2021.

2021 年第二季度汽車利潤率為 11%，而 2020 年同期為負 5.6%，2021 年第一季度為 10.1%。

The improvement was primarily attributable to better product mix and material cost reduction.

改善主要歸因於更好的產品組合和材料成本的降低。

Research and development expenses were RMB 864 million for the second quarter of 2021, representing an increase of 170% from RMB 319 million for the same period of 2020 and an increase of 61% from RMB 535 million for the first quarter of 2021.

2021年第二季度研發費用為人民幣8.64億元，較2020年同期的人民幣3.19億元增長170%，較2021年第一季度的人民幣5.35億元增長61%。

The year-over-year and quarter-over-quarter increase were mainly due to: one, the increase in employee compensation as a result of expanded research and development staff; and two, higher expenses related to the development of vehicles and related software technologies.

同比和環比增長的主要原因是：一是研發人員規模擴大導致員工薪酬增加；第二，與車輛和相關軟件技術開發相關的費用增加。

Selling, general and administrative expenses were RMB 1 billion for the second quarter of 2021, representing an increase of 116% from RMB 477 million for the same period of 2020 and an increase of 43% from RMB 721 million for the first quarter of 2021.

2021 年第二季度的銷售、一般和管理費用為人民幣 10 億元，較 2020 年同期的人民幣 4.77 億元增長 116%，較 2021 年第一季度的人民幣 7.21 億元增長 43%。

The year-over-year and quarter-over-quarter increase were mainly due to: one, higher marketing, promotional and advertising expenses to support vehicle sales; and two, the expansion of sales network and associated personnel cost and commission for the franchised store sales.

同比和環比增長的主要原因是：一是為支持汽車銷售而增加的營銷、促銷和廣告費用；二、銷售網絡的擴張以及加盟店銷售的相關人員成本和佣金。

Loss from operation was RMB 1.4 billion for the second quarter of 2021 compared with RMB 779 million for the first quarter of -- for the same period of 2020 and RMB 904 million for the first quarter of 2021.

2021 年第二季度運營虧損為人民幣 14 億元，而 2020 年第一季度為人民幣 7.79 億元，2021 年第一季度為人民幣 9.04 億元。

Excluding share-based compensation expense, non-GAAP loss from operations was RMB 1.3 billion for the second quarter of 2021 compared with RMB 779 million for the same period of 2020 and RMB 814 million for the first quarter of 2021.

不計股權激勵費用，2021 年第二季度的非美國通用會計準則運營虧損為人民幣 13 億元，而 2020 年同期為人民幣 7.79 億元，2021 年第一季度為人民幣 8.14 億元。

Net loss was RMB 1.2 billion for the second quarter compared with RMB 146 million for the same period a year ago and RMB 787 million for the first quarter of 2021.

第二季度淨虧損為人民幣 12 億元，去年同期為人民幣 1.46 億元，2021 年第一季度為人民幣 7.87 億元。

Excluding share-based compensation expense and fair value change on derivative liabilities related to the redemption right of the preferred shares, the non-GAAP adjusted net loss was RMB 1.1 billion for the second quarter of 2021 compared with RMB 770 million for the same period of 2020 and RMB 696 million for the first quarter of 2021.

剔除股權激勵費用和與優先股贖回權相關的衍生負債的公允價值變動，2021 年第二季度非美國通用會計準則調整後淨虧損為人民幣 11 億元，而去年同期為人民幣 7.7 億元。 2020年和2021年第一季度為6.96億元人民幣。

Net loss attributable to ordinary shareholders of XPeng Inc.

歸屬於小鵬汽車普通股股東的淨虧損

was RMB 1.2 billion for the second quarter compared with RMB 1.1 billion for the same period of 2020 and compared with RMB 787 million for the first quarter of 2021.

第二季度為人民幣 12 億元，而 2020 年同期為人民幣 11 億元，而 2021 年第一季度為人民幣 7.87 億元。

Excluding share-based compensation expense, the fair value change on derivative liabilities related to the redemption right of the preferred shares and accretion on the preferred shares to redemption value, the non-GAAP net loss attributable to ordinary shareholders of XPeng Inc.

不包括股權激勵費用、與優先股贖回權相關的衍生負債的公允價值變動和優先股贖回價值的增加、歸屬於小鵬汽車普通股股東的非美國通用會計準則淨虧損。

was RMB 1.1 billion for the second quarter of 2021 compared with RMB 769 million for the same period of 2020 and RMB 696 million for the first quarter of 2021.

2021 年第二季度為人民幣 11 億元，而 2020 年同期為人民幣 7.69 億元，2021 年第一季度為人民幣 6.96 億元。

Basic and diluted net loss per ADS was RMB 1.5 for the second quarter of 2021.

2021 年第二季度每份 ADS 的基本和攤薄淨虧損為 1.5 元人民幣。

The non-GAAP basic and diluted net loss per ADS was RMB 1.38 for the second quarter of 2021.

2021 年第二季度，每份 ADS 的非美國通用會計準則基本和攤薄淨虧損為 1.38 元人民幣。

Each ADS represents 2 Class A ordinary shares.

每份 ADS 代表 2 股 A 類普通股。

Turning back to the balance sheet.

回到資產負債表。

As of June 30, 2021, our company had cash and cash equivalents, restricted cash, short-term deposits, short-term investments and long-term deposits in total of RMB 32.9 billion, which is [previously] a Hong Kong IPO proceed of RMB 13 billion compared with RMB 35.3 billion for the year as of December 31, 2020.

截至2021年6月30日，我司持有現金及現金等價物、受限制現金、短期存款、短期投資和長期存款合計人民幣329億元，為【此前】香港IPO募集資金130 億元人民幣，而截至 2020 年 12 月 31 日的年度為 353 億元人民幣。

With that, now I would like to turn back the call to [Ziling Ma].

有了這個，現在我想把電話轉回[馬紫玲]。

To be mindful of the line of our earnings call for our second quarter financial result, I will encourage listeners to refer to our earnings press release for further details.

為了注意我們第二季度財務結果的收益電話，我鼓勵聽眾參考我們的收益新聞稿以了解更多詳細信息。

This concludes our prepared remarks.

我們準備好的發言到此結束。

We will now open the call to the questions.

我們現在將開始提問。

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）你的第一個問題來自摩根士丹利的 Tim Hsiao。

Congratulations on a great result.

祝賀你取得好成績。

I've got 2 questions.

我有兩個問題。

The first question is about the component supply.

第一個問題是關於組件供應。

I think the near-term chip shortage, that is well anticipated.

我認為近期的芯片短缺是可以預見的。

But should we be concerned about similar [supply closes] into next year, especially export where we need to secure the key component supply for 4 models in total with volume unlikely doubling.

但我們是否應該擔心明年類似的 [供應關閉]，特別是出口，我們需要確保總共 4 種型號的關鍵零部件供應，而且銷量不太可能翻一番。

So I just wanted to know that how could [shortage] such challenge into next year?

所以我只是想知道明年如何 [短缺] 這樣的挑戰？

We had a company considering investing or forming strategic alliances with some parts makers like for the cheaper batteries, so I'm sure we can get sufficient supply.

我們有一家公司正在考慮投資或與一些零件製造商結成戰略聯盟，比如更便宜的電池，所以我相信我們可以獲得充足的供應。

My second question is about the demand of P5 because I think Mr. He already mentioned that demand is pretty strong.

我的第二個問題是關於P5 的需求，因為我想何總已經提到需求是非常強勁的。

But could you share more information about the progress in collecting the orders during its presell?

但是您能否分享更多有關預售期間收集訂單進度的信息？

I understand you might not be able to share too much detail, but how should we think about that volume scale relatively to, for example, that of our inflection model P7 and with the component shortage or the volume ramp-up of P5 into fourth quarter?

我知道您可能無法分享太多細節，但我們應該如何考慮相對於例如我們的拐點模型 P7 的體積規模以及組件短缺或 P5 到第四季度的產量增長？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So in regards to core components and chipset shortage, I think we have to look at it from 2 ways.

【解讀】那麼對於核心元器件和芯片組的短缺，我覺得要從兩個方面來看。

The one -- the first way is there are some expected shortage that we can deal with and prepare for.

一個 - 第一種方式是我們可以處理和準備一些預期的短缺。

And the other kind is the unexpected ones.

另一種是意想不到的。

Now for the expected ones, I'm mainly talking about the chipset or chip shortage.

現在對於預期的，我主要是在談論芯片組或芯片短缺。

But the unexpected ones are mainly referring to pandemic resurgence.

但意想不到的主要是指大流行病捲土重來。

For example, lately, we saw this serious lockdown.

例如，最近，我們看到了這種嚴重的封鎖。

And as it so happened that one of your Tier 1 or Tier 2 suppliers is located in one of those lockdown cities, there's nothing you could do about it, and those will be considered as unexpected elements that affect our shortage and add to our challenge.

碰巧你的一級或二級供應商之一位於那些封鎖城市之一，你對此無能為力，這些將被視為影響我們短缺並增加我們挑戰的意外因素。

So for the first kind of challenge, which is the core components or chip shortage, we can do several things to prepare for it.

所以對於第一種挑戰，即核心元器件或芯片短缺，我們可以做幾件事情來應對。

For example, the first one is we can make orders way ahead of time so that we can better prepare with chip shortage.

比如第一個就是我們可以提前很多時間下單，這樣我們就可以更好的應對芯片短缺的情況。

The second thing is we can work with some top-tier suppliers in terms of chipset production and development.

第二件事是我們可以在芯片組生產和開發方面與一些頂級供應商合作。

We can work with them in several ways.

我們可以通過多種方式與他們合作。

First of all, we can find collaboration deals.

首先，我們可以找到合作交易。

Also, we can invest in some of those core suppliers.

此外，我們可以投資其中一些核心供應商。

And also we can work with local governments in terms of bulk purchasing or preordering of the chipsets or chips that we need.

我們還可以與地方政府合作，批量採購或預購我們需要的芯片組或芯片。

Basically, chip shortage is a big challenge faced by the whole industry.

基本上，芯片短缺是整個行業面臨的一大挑戰。

But as a company, a very -- company equipped with leading technology of its kind, XPeng actually has a very, very favorable position to play in this value chain because a lot of the chip suppliers consider us as their VIP, thanks to our fast development and fast iteration of our models.

但作為一家公司，一家擁有同類領先技術的公司，小鵬實際上在這個價值鏈中具有非常非常有利的地位，因為很多芯片供應商都將我們視為他們的 VIP，這要歸功於我們的快速我們模型的開發和快速迭代。

And also, we are actually very flexible in a sense that we don't have a large delivery backlog yet.

而且，從某種意義上說，我們實際上非常靈活，因為我們還沒有大量的交付積壓。

So that allow us to be really flexible in selecting different suppliers in order to fulfill our chip demand.

這樣一來，我們就可以真正靈活地選擇不同的供應商來滿足我們的芯片需求。

We also can look to the overseas market for more chip supply.

我們也可以將目光投向海外市場以獲得更多的芯片供應。

So in regards to your second question, which is about the market demand of P5, if you ask me to compare it with P7, I would say that actually we see even stronger demand compared to P7 of the same developmental stage.

那麼關於你的第二個問題，關於P5的市場需求，如果你讓我把它和P7進行比較，我會說實際上我們看到的需求比同等發展階段的P7還要強。

And also, we are able to actually better plan ahead for the preordering of P5.

而且，我們實際上能夠更好地提前計劃 P5 的預購。

And right now, the preorder has started since 2 months ago.

而現在，預購從 2 個月前開始。

And every month, we are seeing the demand come in more and more as expected.

每個月，我們都看到需求越來越多，符合預期。

That allow us to actually deliver what we guarantee by 4Q this year.

這使我們能夠在今年第四季度實際交付我們保證的內容。

So in order to fulfill the core components of core parts demand for P5, we actually have prepared for this since the beginning of this year.

所以為了滿足P5的核心零部件需求，其實我們從今年年初就開始準備了。

So that is why, by comparison, we actually faced a smaller challenge compared to the fulfillment of the orders for P7 and G3.

因此，相比之下，與完成 P7 和 G3 的訂單相比，我們實際上面臨的挑戰較小。

Thank you.

謝謝你。

And your next question comes from Bin Wang with Crédit Suisse.

你的下一個問題來自瑞信銀行的 Bin Wang。

(foreign language)

（外語）

Okay.

好的。

Actually, I got 3 questions.

實際上，我有3個問題。

Number one is about new products.

第一是關於新產品。

And actually, I wouldn't know the #5, #6 products given your competitors such as has been announced, pretty aggressive new product plan, for example, on largely offer 3 products per year and one actually more than 10 products in next few years.

實際上，我不知道 #5、#6 產品，因為你的競爭對手已經宣布了相當激進的新產品計劃，例如，每年主要提供 3 種產品，實際上在接下來的幾年中提供超過 10 種產品年。

So basically, details about the #5, #6 products.

所以基本上，有關#5、#6 產品的詳細信息。

And second question is about the margin because it's just that if you -- excluding the [subtle increase] income in 2020, actually, the Q-on-Q in the second quarter actually increased around 2.7% according to my calculation.

第二個問題是關於利潤率的，因為根據我的計算，如果不計入 2020 年的 [小幅增長] 收入，實際上第二季度的 Q-on-Q 實際上增長了 2.7% 左右。

Can you break down the driver for the 2.7% gross margin increase?

您能否分解 2.7% 毛利率增長的驅動因素？

And meanwhile, what's your guidance for second half this year about the gross margin trend?

同時，您對今年下半年的毛利率趨勢有何指導？

And last question is about -- second question about the software attach rate, expanded attach rate, take rate in the first quarter, second quarter and the second half guidance.

最後一個問題是——關於軟件附加率、擴展附加率、第一季度、第二季度和下半年指導的第二個問題。

Bin, it's Brian.

斌，是布萊恩。

Let me just address your first question.

讓我來回答你的第一個問題。

Obviously, we can't detail the fifth or the sixth product at the moment.

顯然，我們目前無法詳細介紹第五款或第六款產品。

But what we can share with you is that we are intending to develop a new platform for the fifth and sixth product.

但是我們可以跟大家分享的是，我們打算為第五和第六款產品開發一個新的平台。

That platform we aim to be probably the largest in terms of the quantity and addressable market.

我們的目標是在數量和潛在市場方面成為最大的平台。

So it will be a platform that is targeted in the mid- to high end, which -- that we're starting right now.

所以這將是一個針對中高端的平台，我們現在就開始了。

At the same time, I think around the same time that we will be also rolling out a high-end product in the same year, that will probably be above the current price range, increasing to over CNY 400,000 or even above.

同時，我認為大約在同一時間，我們也會在同一年推出一款高端產品，它可能會高於目前的價格區間，增加到 40 萬以上，甚至更高。

So that's another product that we aim to launch in that -- in the 2023 time frame.

所以這是我們計劃在 2023 年時間框架內推出的另一種產品。

So you can see that in addition to the G3, the P7 and P5, we will have a new platform that will have both the right-hand and left-hand driving capability target at both domestic and international markets will be a very large volume driver.

所以大家可以看到，除了G3，還有P7和P5，我們會有一個新的平台，既有右手駕駛能力，也有左手駕駛能力，目標是在國內和國際市場上都是一個非常大的體積驅動器.

At the same time, we'll be launching a product that will be especially higher than our current high end, CNY 400,000 and above.

同時，我們將推出一款特別高於我們目前40萬元及以上高端產品的產品。

So let me turn to Dennis to talk about the margins.

所以讓我轉向丹尼斯談談利潤率。

Yes.

是的。

Bin, you're right, if we take out the software margin impact, actually we had about 2.3 percentage point margin improvement quarter-over-quarter.

Bin，你是對的，如果我們去掉軟件利潤率的影響，實際上我們的利潤率環比提高了大約 2.3 個百分點。

Among that, around 1.1 to 1.2 was driven by our better product mix.

其中，約 1.1 至 1.2 是由我們更好的產品組合推動的。

In the second quarter, we had more P7 in our total sales.

在第二季度，我們的總銷售額中有更多的 P7。

In the first quarter, our P7 accounted for about 60% of the total sales.

第一季度，我們的P7佔總銷量的60%左右。

But in the second quarter, the P7 increased to about 66%.

但在第二季度，P7 增加到 66% 左右。

So we had the mix improvement.

所以我們進行了混音改進。

The other big part is the material cost reduction.

另一個重要部分是材料成本的降低。

As we mentioned in the previous earnings call, we have reached the battery cost negotiations starting from the first quarter.

正如我們在之前的財報電話會議中提到的，我們已經從第一季度開始就電池成本進行談判。

But in the first quarter, we also have some inventory which we purchased in quarter 4 last year.

但在第一季度，我們也有一些去年第四季度購買的庫存。

So the cost reduction impact for the first quarter was not 100%.

所以第一季度的成本削減影響不是 100%。

But in the second quarter, we basically have the 100% usage for the lower battery cost.

但在第二季度，由於電池成本較低，我們基本上達到了 100% 的使用率。

So that accounted for about 1.1 to 1.2 percentage points in terms of margin contribution as well.

因此，就保證金貢獻而言，這也佔了大約 1.1 到 1.2 個百分點。

So this is a big part of the margin improvement by the possible factors.

因此，這是可能因素導致利潤率提高的很大一部分。

Yes.

是的。

Bin, Charles here.

Bin，這裡是查爾斯。

To address your third question regarding the software attach rate.

解決關於軟件附加率的第三個問題。

In Q2, our software attach rate increased from around 20% last quarter to around 25% this quarter.

在第二季度，我們的軟件附加率從上一季度的 20% 左右增加到本季度的 25% 左右。

And we believe the increase in software attach rate was mainly driven by the high utilization rate and also the overwhelmingly positive feedback from our customers.

我們認為軟件附加率的增加主要是由於高利用率以及來自客戶的壓倒性積極反饋。

For example, in June, our monthly NGP utilization rate exceeded 65%, and also the NGP managed penetration rate in June also exceeded 60%.

比如6月份，我們的NGP月度使用率超過65%，6月份NGP託管滲透率也超過60%。

And looking forward, I think it's starting from Q4, and we will start to recognize the revenue from the XPILOT 3.0 from the -- on our P5.

展望未來，我認為它是從第四季度開始的，我們將開始從我們的 P5 上確認 XPILOT 3.0 的收入。

About guidance, second half guidance.

關於指導，下半年指導。

And your next question comes from Nick Lai with JPMorgan.

你的下一個問題來自摩根大通的 Nick Lai。

Yes.

是的。

It's Nick from JPMorgan.

我是摩根大通的尼克。

Two simple questions.

兩個簡單的問題。

First is related to financial and second is related to policy guideline.

一是與金融有關，二是與政策導向有關。

On the financial, yes, you mentioned earlier, as of June, we have been roughly nearly CNY 33 billion cash on balance sheet.

在財務方面，是的，您之前提到過，截至 6 月，我們的資產負債表上大約有近 330 億元人民幣的現金。

And can you kind of remind us what our strategy is in that level of cash?

你能提醒我們在這種現金水平上我們的戰略是什麼嗎？

And you mentioned earlier, that we're launching 2, 3 new model per year from '23 onward.

你之前提到過，從 23 年開始，我們每年都會推出 2、3 款新車型。

And also, Brian just mentioned, we are going to launch a new production platform and also sales and marketing increased in 2Q.

而且，布賴恩剛剛提到，我們將推出一個新的生產平台，並且第二季度的銷售和營銷也有所增加。

So effect on very strong top line.

因此對非常強大的頂線產生影響。

And can you help us understand how should we think about profitability or margin in light of a lot of expansion of investment going forward at both cost level and OpEx level.

鑑於未來在成本水平和運營支出水平上的大量投資擴張，您能否幫助我們了解我們應該如何考慮盈利能力或利潤率？

That's the first question.

這是第一個問題。

And the second question is the government (inaudible) announced recently a policy guideline regarding data control, data security inn the tools driving business.

第二個問題是政府（聽不清）最近宣布了一項關於數據控制、數據安全以及驅動業務的工具的政策指南。

And how should we interpret that?

我們應該如何解釋呢？

And what does that mean to our business operationally and financially?

這對我們的業務在運營和財務上意味著什麼？

(foreign language)

（外語）

Thank you.

謝謝你。

This is Brian.

這是布萊恩。

Let me just address your first question regarding our cash reserve and then the future use of those cash.

讓我來回答你關於我們的現金儲備的第一個問題，然後是這些現金的未來使用。

Including the Hong Kong IPO rate, our cash balance actually exceed [RMB 4.6 billion] at the moment.

包括香港IPO利率在內，我們目前的現金餘額實際上超過了【46億元人民幣】。

As we stated in our Hong Kong IPO prospectus, we actually intend to use the proceeds mostly for R&D as well as sales and marketing expansion.

正如我們在香港 IPO 招股說明書中所述，我們實際上打算將所得款項主要用於研發以及銷售和營銷擴張。

What I can say at this moment is that we are seeing a tremendous opportunity in China.

此時此刻我能說的是，我們在中國看到了巨大的機遇。

The acceleration of the market is actually faster than what we expected in the beginning of the year.

市場的加速實際上比我們年初預期的要快。

And I think as the leading company in this segment, we want to maintain our leadership by further invest into R&D infrastructure, sales, marketing, brand building and other sort of related efforts.

我認為作為該領域的領先公司，我們希望通過進一步投資於研發基礎設施、銷售、營銷、品牌建設和其他相關工作來保持我們的領先地位。

So you can see that we will increase the investment pace of our business in all these areas.

所以你可以看到我們將加快我們在所有這些領域的業務投資步伐。

For example, in the area of R&D, we think this year, we can -- we will further accelerate the use of R&D funding.

例如，在研發領域，我們認為今年我們可以——我們將進一步加快研發資金的使用。

We expect the R&D expenses for the whole year will approach about RMB 4 billion.

我們預計全年研發費用將接近40億元人民幣左右。

So that will be increased from the earlier year -- early in the year.

因此，這將比前一年有所增加——今年年初。

Also, in the sales and marketing, I think given the expected launching of our new models in third and fourth quarter, we will be also increase the spending on market -- sales and marketing infrastructure build-out, brand as well as other areas and charging facilities, et cetera.

此外，在銷售和營銷方面，我認為鑑於我們預計在第三和第四季度推出新車型，我們還將增加市場支出——銷售和營銷基礎設施建設、品牌以及其他領域和充電設施等。

We intend to increase the delivery target for our business.

我們打算提高我們業務的交付目標。

So as Xiaopeng mentioned in the script earlier, in the fourth quarter, we aim to achieve on a monthly delivery peak number of above 15,000 vehicles per month.

所以正如小鵬剛才在劇本中提到的那樣，在第四季度，我們的目標是實現每月交付峰值 15,000 輛以上。

So that's actually the acceleration of current pace of delivery that we've seen.

所以這實際上是我們所看到的當前交付速度的加快。

And based on what we see today in the supply chain and the constraints, we are confident we can hit that level in the fourth quarter.

根據我們今天在供應鏈中看到的情況和限制，我們有信心在第四季度達到這一水平。

So let me turn now to Dennis.

那麼讓我現在轉向丹尼斯。

I'll turn it over to you to talk about the data and the regulatory issue that I mentioned.

我會把它交給你來談談我提到的數據和監管問題。

(foreign language)

（外語）

[Interpreted] So in regards to your second question regarding data security, we are actually very, very happy to see this new regulation coming out from the Chinese government because it's going to be very, very beneficial, not just for the whole industry, but especially for Xiaopeng because XPeng has been always very stringent on its data protection and also on its safety safeguarding.

[解讀]關於你關於數據安全的第二個問題，我們實際上非常非常高興看到中國政府出台這項新規定，因為它將非常非常有益，不僅對整個行業，而且特別是小鵬，因為小鵬在數據保護和安全保障方面一直非常嚴格。

Since inception, we've been investing a lot in the R&D of the data security and also safety safeguarding.

自成立以來，我們一直在數據安全和安全保障方面投入大量資金。

We not only fulfill the requirements and regulation in China but also in Europe and across the world as well.

我們不僅滿足中國的要求和法規，也滿足歐洲和世界各地的要求和法規。

And in terms of the whole industry development in this regard, we believe that a lot of the OEMs and auto competitors out there are focusing on building their advantage on different modules.

而就整個行業在這方面的發展而言，我們相信很多主機廠和汽車競爭對手都在專注於在不同的模塊上建立自己的優勢。

But really, the challenge lies in the combination of different modules and also how to coordinate different modules to make sure that the whole set of your intelligence or driver-assistance system fulfill all of those safety requirements and data security protection requirements.

但實際上，挑戰在於不同模塊的組合以及如何協調不同模塊以確保整套智能或駕駛輔助系統滿足所有這些安全要求和數據安全保護要求。

The most challenging part actually comes in the safety safeguarding and also the manageable modules that really requires a full-stack in-house R&D capabilities, which XPeng always possessed.

最具挑戰的其實是安全保障和可管理的模塊，這確實需要小鵬一直具備的全棧自研能力。

And also in terms of the software OTA, which also is an important metric in regards to your data protection and also safety safeguarding, we are very, very cutting edge in this development as well.

而且在軟件 OTA 方面，這也是您的數據保護和安全保障方面的重要指標，我們在這一開發中也非常非常領先。

For example, we are the first OEM or EV OEM in the industry that actually conduct a driver proficiency test, but for allowing them to use our driver-assistance system.

例如，我們是業內第一家實際進行駕駛員能力測試的 OEM 或 EV OEM，但允許他們使用我們的駕駛員輔助系統。

We are also the first company of its kind that adopted this LiDAR technology on top of our visual technology to make sure that we protect the driver safety as our top priority.

我們也是同類公司中第一家在我們的視覺技術之上採用這種 LiDAR 技術的公司，以確保我們將保護駕駛員安全作為我們的首要任務。

So definitely, we see this new regulation as beneficial news for not just the whole industry but especially for OEMs such as us that actually possess the in-house full-stack R&D capability.

所以可以肯定的是，我們認為這項新規定不僅對整個行業有利，而且對像我們這樣實際擁有內部全棧研發能力的原始設備製造商來說尤其如此。

Thank you.

謝謝你。

And your next question comes from Ming Lee with Bank of America Securities.

你的下一個問題來自美國銀行證券公司的 Ming Lee。

So I have 2 questions.

所以我有兩個問題。

The first question is regarding your international expansion plan.

第一個問題是關於您的國際擴張計劃。

I think yesterday, we just saw a news that you also started to ship P7 to Norway.

我想昨天，我們剛看到一個消息，你們也開始向挪威運送P7。

So in the future, will you continue to adapt the wholesale business model?

那麼未來，你們會繼續調整批發業務模式嗎？

Or you will start to open your own brand stores through the retail model.

或者你會開始通過零售模式開設自己的品牌店。

Besides that, you also mentioned that starting from 2023, all of your models will be able to using the international standard and to ship to worldwide.

除此之外，您還提到，從2023年開始，您所有的機型都將能夠使用國際標準並全球發貨。

So in your view, what's the most difficult challenges when you need to localize your component?

那麼在您看來，當您需要本地化您的組件時，最困難的挑戰是什麼？

And what kind of components or software is the most difficult to localize?

什麼樣的組件或軟件最難本地化？

That's my first question.

這是我的第一個問題。

And the second question, actually just following the previous regulation issues.

而第二個問題，其實只是跟在之前的監管問題之後。

So actually, I think it's a good thing to see a strict regulation and the new regulation actually give a guidance for all the auto company to comply this.

所以實際上，我認為看到嚴格的規定是一件好事，新規定實際上為所有汽車公司提供了遵守這一規定的指導。

However, I think that in the near term, is it possible that OTA become more difficult?

但是，我認為在短期內，OTA 是否有可能變得更加困難？

Or the -- for new software and hardware are able to provide Level 4 autonomous driving functions, but the regulation probably only allow you to provide Level 3 functions?

或者——新的軟件和硬件都能夠提供Level 4自動駕駛功能，但法規可能只允許你提供Level 3功能？

In this case, how do you see the possibility on lease?

在這種情況下，您如何看待租賃的可能性？

And will lease narrow down XPeng's advantage.

並且會縮小小鵬汽車的優勢。

(foreign language)

（外語）

And your next question comes from Edison Yu...

你的下一個問題來自 Edison Yu...

Sorry, let me respond to the question because we were actually on mute.

抱歉，讓我回答這個問題，因為我們實際上處於靜音狀態。

So on the first question, Ming, you're talking about the international strategy for sales and marketing.

所以關於第一個問題，明，你在談論銷售和營銷的國際戰略。

Currently, we actually are aiming to try both in terms of working with distributors locally as well as opening our direct owned stores.

目前，我們的目標實際上是在與當地經銷商合作以及開設我們的直營店方面進行嘗試。

We were actually going to try a hybrid model in Europe.

我們實際上打算在歐洲嘗試混合模式。

For example, in Norway, we're working with the leading distributor right now.

例如，在挪威，我們目前正在與領先的分銷商合作。

But also, we have plans to open up our own stores in large cities or capital cities in the European countries that we target.

而且，我們還計劃在目標歐洲國家的大城市或首府城市開設我們自己的商店。

So we're experimenting a mixed model.

所以我們正在試驗一個混合模型。

Obviously, that's something that we will need to decide what is the best model for us.

顯然，這是我們需要決定什麼是最適合我們的模型的東西。

But I think it's currently, it's a hybrid model.

但我認為目前它是一種混合模式。

Your second question is on the OTA and also the data security, right?

你的第二個問題是關於 OTA 和數據安全的，對嗎？

So Ming, your second question, I think that's the question that was asked before, right, the question about the new regulation, how that impacts our ability to innovate as well as stay ahead.

那麼 Ming，你的第二個問題，我認為這是之前提出的問題，對，關於新法規的問題，它如何影響我們的創新能力以及保持領先地位。

I think as Xiaopeng mentioned in the answer earlier, it is -- obviously, we're welcoming the regulatory sort of framework.

我認為正如小鵬在之前的回答中提到的那樣，很明顯，我們歡迎這種監管框架。

And I think as a leading company in this, we will benefit from the higher standard, higher bar for such practice.

我認為作為這方面的領先公司，我們將受益於這種做法的更高標準、更高標準。

So I think for us, we don't see this actually will slow down our innovation nor will it actually narrow the gap between us and the followers.

所以我認為對我們來說，我們認為這實際上不會減慢我們的創新速度，也不會真正縮小我們與追隨者之間的差距。

We actually think the increased regulatory attention on this area will actually further strengthen the top players and create more barriers for the followers to come.

實際上，我們認為對該領域的監管關注度增加實際上會進一步加強頂級參與者並為追隨者創造更多障礙。

So that's our view.

這就是我們的觀點。

And your next question comes from Edison Yu with Deutsche Bank.

你的下一個問題來自德意志銀行的 Edison Yu。

I have two.

我有兩個。

First one, it seems you're making a bigger push into the premium end going forward.

第一個，你似乎正在更大程度上推動高端市場的發展。

I'm just curious if you could share how you will kind of go about this differently than the sort of existing models or the more mass market models.

我只是想知道您是否可以分享您將如何以不同於現有模型或更大眾市場模型的方式來解決這個問題。

Will you be kind of implementing better service?

您會提供更好的服務嗎？

Or will there be some sort of brand differentiation with this kind of premium offering?

或者這種優質產品會帶來某種品牌差異化嗎？

And second question is just about the XPILOT 3.5 pricing.

第二個問題是關於 XPILOT 3.5 的定價。

I think in the past, you've talked about as the feature set grows, the price should go up.

我想在過去，你曾談到隨著功能集的增長，價格應該上漲。

So wondering if you could provide any details there.

所以想知道您是否可以在那裡提供任何詳細信息。

(foreign language)

（外語）

So to answer your second question first is we actually intend to have higher pricing for XPILOT 3.5.

所以首先回答你的第二個問題是我們實際上打算為 XPILOT 3.5 提供更高的定價。

This should be priced at a premium to the current XPILOT 3.0.

這應該比當前的 XPILOT 3.0 定價更高。

Obviously, the XPILOT 3.0 will still be available to vehicles with the hardware.

顯然，XPILOT 3.0 仍將適用於配備該硬件的車輛。

So in the foreseeable sort of models, we'll actually have the current pricing maintained for the XPILOT 3.0 and slightly premium price for XPILOT 3.5 to reflect additional features.

因此，在可預見的型號中，我們實際上將維持 XPILOT 3.0 的當前定價，並為 XPILOT 3.5 保留略高的價格，以反映附加功能。

(foreign language)

（外語）

[Interpreted] Now in response to your first question, I think P7 has already proven our capability of entering the premium market, especially the one priced at about RMB 300,000.

【解讀】現在回答你的第一個問題，我認為P7已經證明了我們進入高端市場的能力，尤其是30萬左右的價格。

Actually, last month delivery of P7 actually surpassed that of Audi A4.

實際上，上個月P7的交付量竟然超過了奧迪A4。

So that says a lot about our capability of entering the premium market.

因此，這充分說明了我們進入高端市場的能力。

In the future, we target the even higher price range, at about CNY 400,000 to CNY 500,000 even.

未來，我們的目標價格區間會更高，甚至在 40 萬到 50 萬元左右。

So that -- by entering those premium markets, we plan to actually offer standardized, data-driven and technology-driven kind of differentiation that set us apart from our competitors, not by offering other kinds of service.

因此——通過進入這些高端市場，我們計劃真正提供標準化、數據驅動和技術驅動的差異化，讓我們從競爭對手中脫穎而出，而不是通過提供其他類型的服務。

In the long run, we expect to see actually a new development coming out from our R&D that actually allow us to really be different from other market offering by 2023 to 2025.

從長遠來看，我們預計到 2023 年至 2025 年，我們的研發實際上會出現新的發展，讓我們真正不同於其他市場產品。

And by that time, you will actually see what I'm talking about.

到那個時候，你就會真正明白我在說什麼。

And by that time, you will actually see that we'll have something that actually showcase our core R&D capabilities and actually allow us to build an even stronger competitive edge or competitive moat against other competitors in the market.

到那時，你會真正看到我們將擁有一些東西，這些東西實際上展示了我們的核心研發能力，實際上讓我們能夠建立更強大的競爭優勢或競爭護城河，以對抗市場上的其他競爭對手。

And because this actually involve some confidential information about our key product development logic behind, allow me to keep it confidential at the moment.

而且因為這裡面其實涉及到我們背後關鍵的產品開發邏輯的一些機密信息，暫時先保密。

And when the time allows, time permitting, I will give you and share with you more information in this regard.

並且在時間允許的時候，時間允許的時候，我會給大家分享更多這方面的信息。

Thank you.

謝謝你。

And I can actually give you one example as some of the flying cars that we are developing in pipeline that we are R&D.

實際上，我可以給你舉一個例子，比如我們正在研發的一些飛行汽車。

At the moment, we plan to actually target an even more premium market price to add about RMB 0.5 million to RMB 1 million.

目前，我們計劃實際瞄準更高的市場價格，增加約人民幣 50 萬元至人民幣 100 萬元。

And so that would be actually one of our flagship products by that time as we enter the premium market.

因此，當我們進入高端市場時，這實際上將成為我們的旗艦產品之一。

And your next question comes from Paul Gong with UBS.

你的下一個問題來自瑞銀集團的 Paul Gong。

My first question is regarding your distribution network.

我的第一個問題是關於你們的分銷網絡。

I think you mentioned you are going to expand your number of stores from 300 to 350 by end of this year.

我想你提到你打算在今年年底前將你的商店數量從 300 家增加到 350 家。

Double check on this number.

仔細檢查這個數字。

And also where are you expanding?

還有你在哪裡擴張？

Are you mainly opening your own direct operating stores?

你們主要是自己開直營店嗎？

Or are you going to more leverage with the third-party distributors or the dealers?

或者你打算更多地利用第三方分銷商或經銷商？

And also a related question on this is in terms of challenge, do you think there is currently more mutation from the coverage of the network or the efficiency of the network?

還有一個與此相關的問題是在挑戰方面，你認為目前網絡的覆蓋範圍或網絡效率有更多的突變嗎？

Or what do you foresee the further improvement?

或者您認為進一步的改進是什麼？

My second question is regarding the number of models.

我的第二個問題是關於模型的數量。

It seems like you're going to accelerate the launch of new models from 2023.

看來你們要從 2023 年開始加速推出新車型。

But I think there is a -- exposures more of the similarities versus Tesla.

但我認為與特斯拉有更多相似之處。

But Tesla has right now only 4 models despite of number of track record and much higher volume.

但特斯拉目前只有 4 款車型，儘管其業績記錄數量多且銷量高得多。

So are we planning this number of models?

那麼我們是否在計劃這麼多型號？

What is your main considerations to some new models?

您對一些新車型的主要考慮是什麼？

And would this give more challenges to your distribution network, given many of the stores, they do not necessarily adopt many of the positions to have several cars.

這是否會給您的分銷網絡帶來更多挑戰，考慮到許多商店，他們不一定會採用許多位置來擁有幾輛汽車。

(foreign language)

（外語）

[Interpreted] So in response to your first question, definitely, by the end of the year, we plan to open 350 distributor stores.

[解讀]所以回答你的第一個問題，肯定的是，到今年年底，我們計劃開設350家分銷店。

And we will have both directly operated, self-operated and also partnership stores.

我們將有直營店、自營店和合作店。

And the ratio of our directly run stores will increase.

我們直營店的比例會增加。

And also, since several months ago, we already saw a great improvement on the single stores' profitability.

而且，從幾個月前開始，我們已經看到單店的盈利能力有了很大的改善。

Actually, since last year, we already saw that happening across different models that we actually launch and sell.

實際上，自去年以來，我們已經在實際推出和銷售的不同型號中看到了這種情況。

And so across the board, we see a lot of our stores making profits.

因此，從整體上看，我們看到很多商店都在盈利。

And so that is why when we look at the deployment of our new stores, we will look at, first of all, the infrastructure of that particular city, meaning that we -- whether or not we have the supercharging support in that particular city and also how developed the sales network is to support that particular cities.

因此，這就是為什麼當我們考慮新店的部署時，我們首先會考慮那個特定城市的基礎設施，這意味著我們——無論我們是否在那個特定城市有超級充電支持，以及還有銷售網絡如何發展以支持特定城市。

And so actually, with those 2 core components of the infrastructure and all those networks, we see great improvement in their sales performance in a few months' time.

所以實際上，有了基礎設施的這兩個核心組件和所有這些網絡，我們看到他們的銷售業績在幾個月內有了很大的改善。

And so that is what we are going to actually heavily invest in for the half second of the year to actually further expand our distribution network.

因此，這就是我們將在今年下半年實際投入大量資金，以進一步擴大我們的分銷網絡。

Now in response to your second question, I would like to talk about 2 things.

現在回答你的第二個問題，我想談兩件事。

The first thing is XPeng will still continue to focus on high-quality products, which means that all of the models that we are in, we expect them to achieve the #1 or #2 of its market share of this kind.

首先，小鵬汽車仍將繼續專注於高質量的產品，這意味著我們所處的所有車型，我們都希望它們能夠在此類市場份額中獲得#1 或#2。

For example, P7 has already achieved #2 in terms of sales in Class B sedans.

例如，P7 在 B 級轎車的銷量方面已經排名第二。

And G3 is ranked #1 or #2 in the market of this kind.

G3在此類市場中排名第一或第二。

In the future going forward, when we have more models on our pipeline -- in our pipeline and when we launch more models, we begin -- we are going to adopt a different store distribution or showcase strategy.

在未來的未來，當我們有更多的模型在我們的管道中——在我們的管道中，當我們推出更多的模型時，我們開始——我們將採用不同的商店分銷或展示策略。

So we are going to actually look at the local market and local cities and analyze the market demand in selecting which models to showcase in the showroom and in the stores.

因此，我們將實際考察當地市場和當地城市，並分析市場需求，以選擇在陳列室和商店展示的車型。

And in some of our flagship stores, where we have more space, we will actually be able to showcase the whole selection of our models.

在我們的一些旗艦店，我們有更多的空間，實際上我們將能夠展示我們所有的模型選擇。

Thank you once again for joining us today.

再次感謝您今天加入我們。

If you have further questions, please feel free to contact XPeng's Investor Relations through the contact information provided on our website or the TPG Investor Relations.

如果您還有其他問題，請隨時通過我們網站上提供的聯繫信息或 TPG 投資者關係聯繫小鵬的投資者關係。

Thank you.

謝謝你。

Thank you, everyone.

謝謝大家。

Thank you.

謝謝你。

Thank you all.

謝謝你們。

Bye.

再見。

This concludes conference call.

電話會議到此結束。

You may now disconnect your lines.

您現在可以斷開線路。

Thank you.

謝謝你。

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

[此記錄中標記為 [已翻譯] 的部分由現場通話中的口譯員說出。]