Xpeng Inc (XPEV) 2021 Q1 法說會逐字稿

Hello, ladies and gentlemen, thank you for standing by for the first quarter 2021 Earnings Conference Call for XPeng Inc.

女士們，先生們，您好，感謝您支持小鵬汽車2021年第一季度財報電話會議。

(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.

我現在將把電話轉給你的主人，[先生。

Zelin Ma] Director of Investor Relations of the company.

馬澤林] 公司投資者關係總監。

Please go ahead, Mr. Ma.

請繼續，馬先生。

Thank you.

謝謝你。

Hello, everyone, and welcome to XPeng's first quarter 2021 earnings conference call.

大家好，歡迎來到小鵬汽車2021年一季度財報電話會議。

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 earning 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 部分查看盈利新聞稿。

Participants on today's call will include our co-Founder, Chairman and CEO, Mr. Xiaopeng He; our Chairman and President, Dr. Brian Gu; Vice President of Finance, Mr. Dennis Lu; and 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曉鵬先生；我們的董事長兼總裁 Brian Gu 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 made under the 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的安全港條款作出的前瞻性陳述。

Forward-looking statements involve inherent risks and uncertainties as such, the company's results may be materially different from the views expressed today.

前瞻性陳述涉及固有風險和不確定性，因此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 note that XPeng's earnings press release and this conference call include the disclosure of unaudited GAAP financial measures, as well as unaudited non-GAAP financial measures.

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

XPeng'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 us for XPeng first quarter 2021 earnings conference call today.

感謝您今天參加我們的 XPeng 2021 年第一季度財報電話會議。

Heading into 2021, the electrification and modification are accelerating the disruption of internal combustion vehicles.

進入2021年，電動化和改裝正在加速對內燃機汽車的顛覆。

Notably in March, the penetration rate of high energy passenger vehicles in China surpassed the 10% threshold for the first time.

值得注意的是，3月份，中國高能乘用車普及率首次突破10%大關。

The EV adoption in top tier cities experienced a record high-growth, with the penetration rate reaching around 20%.

一線城市的電動汽車普及率創歷史新高，普及率達到 20% 左右。

Being part of this unprecedented disruption opportunity, I strongly believe that XPeng is well poised to lead the development and transformation of the industry.

作為這個前所未有的顛覆機會的一部分，我堅信小鵬汽車已經做好準備引領行業的發展和轉型。

My belief is fairly underpinned by our long-term strategic investment and in leadership in Smart EV technology that we have been building out over the past years.

我的信念得到了我們的長期戰略投資和我們在過去幾年中建立的智能電動汽車技術領導地位的充分支持。

Our strong momentum continued in the first quarter of 2021, with another quarter of record vehicle delivery despite traditionally slower seasonal demand and challenges of industry-wide chip shortage.

我們在 2021 年第一季度繼續保持強勁勢頭，儘管傳統上季節性需求放緩且面臨全行業芯片短缺的挑戰，但又一個季度的汽車交付量創下歷史新高。

Our total vehicle delivery number in the first quarter reached 13,340, representing a 487.4% year-over-year increase, consisting of 5,366 G3s and 7,974 P7s.

一季度，我們的車輛總交付量達到13,340輛，同比增長487.4%，其中G3 5,366輛，P7 7,974輛。

According to the new car insurance registration data reported by China Automotive Technology & Research Center, in terms of volume the G3 ranks #1 amongst A Class BEV SUVs and the P7 ranked #3 among B Class BEV sedans in Q1.

根據中國汽車技術研究中心公佈的新車保險登記數據，一季度，G3在A級純電動SUV中排名第一，P7在B級純電動轎車中排名第三。

We achieved this outstanding performance to our industry-leading full stack in-house developed software technology and our solid differentiated product strategy.

我們憑藉行業領先的全棧內部開發軟件技術和穩固的差異化產品戰略實現了這一出色表現。

Fueled by strong delivery growth, our revenue reached RMB 2.95 billion in Q1, represented -- representing year-over-year and quarter-over-quarter growth of 616.1% and 3.5%, respectively.

在強勁交付增長的推動下，我們第一季度的收入達到人民幣 29.5 億元，同比和環比分別增長 616.1% 和 3.5%。

Meanwhile, our profitability continued to improve, highlighted by a gross margin of 11.2%, an increase of 3.8% from the prior quarter.

與此同時，我們的盈利能力繼續改善，毛利率為 11.2%，較上一季度增長 3.8%。

On January 26, we began to push OTA updates for XPILOT 3.0 to our customers and started to recognize revenues from XPILOT software.

1月26日，我們開始向客戶推送XPILOT 3.0的OTA更新，並開始確認XPILOT軟件的收入。

As such, our vehicle revenues in the first quarter now includes software revenue for the first time in our history.

因此，我們第一季度的汽車收入現在包括我們歷史上第一次的軟件收入。

I believe that XPeng is the only Chinese automaker that has been able to charge full stack self-operated autonomous driving software separately.

相信小鵬汽車是目前唯一一家能夠單獨對全棧自主駕駛軟件進行充電的中國車企。

Since mass deliveries of the P7 began in June 2020, we have delivered over 23,000 P7s as of March 31.

自 2020 年 6 月開始大規模交付 P7 以來，截至 3 月 31 日，我們已經交付了 23,000 多台 P7。

And on a cumulative basis, the attach rate of XPILOT 3.0 has exceeded 20% as of March 31.

並且截至3月31日，XPILOT 3.0的累計掛載率已經超過20%。

Such attach rate further increased to approximately 25% in March 2021.

該附加率於 2021 年 3 月進一步增加至約 25%。

I believe that XPILOT software monetization will become a recurring revenue model and generate profits in addition to our sales vehicle.

我相信 XPILOT 軟件貨幣化將成為一種經常性收入模式，並在我們的銷售工具之外產生利潤。

Going forward, building on our rapid technology iterations, powered by our full stack in-house R&D capabilities and hardware-software integration solutions will roll out XPILOT 3.5 and XPILOT 4.0, our next-generation of autonomous driving technology in the next few years.

展望未來，基於我們快速的技術迭代，在我們全棧的內部研發能力和軟硬件集成解決方案的支持下，我們將在未來幾年推出我們的下一代自動駕駛技術 XPILOT 3.5 和 XPILOT 4.0。

Our XPILOT will make the enhanced autonomous driving experience accessible across a wider range of [rows and isles] and ultimately bring about end-to-end highly automated driving.

我們的 XPILOT 將使增強的自動駕駛體驗在更廣泛的 [行和島] 範圍內獲得，並最終實現端到端的高度自動化駕駛。

They will also help to further distinguish our brand leadership in the Smart EV market.

它們還將有助於進一步突出我們在智能電動汽車市場的品牌領導地位。

Next, I would like to share our latest achievement in technology announcement for Smart EVs.

接下來，我想分享我們在智能電動汽車技術發布方面的最新成果。

Since launching our Navigation Guided Pilot for the smart vehicles, or NGP in late January this year, NGP has assisted our customers in driving 2.3 million kilometers, which is approximately 1 million kilometers a month with the NGP-assisted mileage penetration rate exceeding [50%] amongst those P7 that accelerated as of March 31, 2021.

自今年1月下旬推出智能汽車Navigation Guided Pilot（NGP）以來，NGP已協助客戶行駛230萬公里，月均約100萬公里，NGP輔助里程普及率超過[50%] ] 在截至 2021 年 3 月 31 日加速的 P7 中。

The strong usage frequency not only reflects the broad applications of NGP, but also testified to the satisfaction and trust customers have in using it.

強勁的使用頻率不僅體現了NGP的廣泛應用，也證明了客戶對NGP的使用滿意度和信任度。

In March, we successfully accomplished our NGP-guided expedition that crossed highways from Guangzhou to Beijing.

3 月，我們成功完成了由 NGP 引導的從廣州到北京的高速公路探險。

This expedition of over 3,000 kilometers marked the nation's longest of it's kind.

這次超過 3,000 公里的探險標誌著全國同類探險中最長的一次。

During the entire expedition, the NGP's human intervention was only 0.7x per 100 kilometers on average.

整個考察過程中，NGP的人為乾預平均只有百公里0.7次。

Notably, more than 90% of autonomous lane changes overtaking other vehicles, switching [ramps] and going through tunnels were executed successfully, which I believe outperformed all other mass produced autonomous driving systems in the market.

值得注意的是，超過 90% 的自動變道超車、切換 [匝道] 和通過隧道都成功執行，我認為這優於市場上所有其他量產的自動駕駛系統。

Here, I would like to highlight the strategic importance of our capability of deploying our autonomous driving technology of mass-produced vehicles.

在這裡，我想強調我們部署量產車輛自動駕駛技術的能力的戰略重要性。

Through those vehicles equipped with NGP capabilities, we're able to collect highly valuable (inaudible) cases when our customers using NGP.

通過這些配備 NGP 功能的車輛，我們能夠在客戶使用 NGP 時收集非常有價值（聽不見）的案例。

We're now able to achieve fast iterations of our algorithm on a weekly basis based on our advanced closed loop data capabilities.

基於我們先進的閉環數據功能，我們現在能夠每週快速迭代我們的算法。

With a growing number of P7s on the road, I believe XPeng will have the largest and fast-growing Smart EV fleet with closed loop data capabilities on China's road networks.

隨著越來越多的 P7 上路，我相信小鵬將擁有中國道路網絡上最大且增長最快的具有閉環數據功能的智能電動汽車車隊。

Recruiting and retaining excellent technical talent is the foundation of our ability to lead innovations in technology and development in the Smart EV industry.

招募和留住優秀的技術人才是我們引領智能電動汽車行業技術創新和發展的基礎。

As of March 31, 2021, our R&D team represent approximately 40% of our total headcount.

截至 2021 年 3 月 31 日，我們的研發團隊約占我們總人數的 40%。

With our firm commitment to build a strong R&D team, we aim to strengthen our leadership in cutting-edge innovations, including electrification and modification for Smart EVs and technological leadership in the industry.

我們堅定致力於打造一支強大的研發團隊，旨在加強我們在尖端創新領域的領導地位，包括智能電動汽車的電氣化和改裝以及行業技術領先地位。

We'll be able to continuously introduce new vehicle models featuring more powerful hardware to support our fast iteration of software.

我們將能夠不斷推出具有更強大硬件的新車型，以支持我們的軟件快速迭代。

At the Shanghai Auto Show on April 19, we unveiled the P5, the world's first mass produced Smart EV equipped with LIDAR.

在4月19日的上海車展上，我們發布了全球首款搭載激光雷達的量產智能電動車P5。

The market warmly welcomed the P5 with enthusiasm supporting preorder reservations that exceed our expectations and surpassed 10,000 in just 53 hours following its debut.

P5受到市場熱烈歡迎，預售量超乎預期，上市僅53小時就破萬。

The P5 is designed as an A-plus class sedan with a roomier inner space than most of the B class sedans in the market.

P5 設計為 A 級轎車，內部空間比市場上大多數 B 級轎車更寬敞。

The more advanced autonomous driving systems and smart cockpit technology and roomy space, we have created for our customers a completely new experience of a smart safe space beyond their homes and workplaces.

更先進的自動駕駛系統和智能座艙技術以及寬敞的空間，我們為客戶創造了超越家庭和工作場所的全新智能安全空間體驗。

Our customers can now use this space to take a nap, watch films like in a private cinema, and enjoy outdoor camping and more.

我們的客戶現在可以利用這個空間小睡片刻，像在私人電影院一樣看電影，享受戶外露營等等。

We plan to start deliveries of the P5 in the fourth quarter of this year.

我們計劃在今年第四季度開始交付 P5。

Additionally, we plan to start internal user testing as XPILOT 3.5 with NGP autonomous driving capabilities on the major open road at the end of this year and release the OTA update at the end of next year.

此外，我們計劃於今年年底在主要開放道路上啟動具有 NGP 自動駕駛功能的 XPILOT 3.5 內部用戶測試，並於明年年底發布 OTA 更新。

In our continuing efforts to improve software and engineering performance, we provide customers with the most powerful mass-produced autonomous driving system available for China's road system at an attractive price point.

在我們不斷提高軟件和工程性能的努力中，我們以極具吸引力的價格為客戶提供中國道路系統中最強大的量產自動駕駛系統。

Such approach significantly differentiate us from many of our peers.

這種方法使我們與許多同行顯著不同。

In addition, we are making solid progress in the research and development of our next-generation autonomous driving hardware platform and next-generation powertrain system, including high-voltage and supercharging system.

此外，我們在下一代自動駕駛硬件平台和下一代動力總成系統（包括高壓和增壓系統）的研發方面取得了紮實的進展。

We look forward to updating you on these developments in due course.

我們期待在適當的時候向您通報這些進展情況。

As the Smart EV market continues to grow fast, we are accelerating the build-out of our infrastructure facilities as part of our long-term strategic road map and investments.

隨著智能電動汽車市場繼續快速增長，我們正在加速基礎設施建設，作為我們長期戰略路線圖和投資的一部分。

As of March 31, XPeng's physical sales and service network consists of 178 sale stores and 61 service centers across 70 cities in China.

截至 3 月 31 日，小鵬汽車的實體銷售和服務網絡由遍布中國 70 個城市的 178 家銷售門店和 61 個服務中心組成。

Of 178 stores, 88 were directly operated by us.

178家門店中，88家由我們直營。

Notably in this regard, in April, we entered into a long-term strategic partnership with China's biggest auto dealership company, the Zhongsheng Group.

值得注意的是，在這方面，4 月份，我們與中國最大的汽車經銷公司中升集團建立了長期戰略合作夥伴關係。

Actually, this partnership will serve to provide both XPeng's industry-leading Smart EV products and Zhongsheng's high-quality services to consumers across China and further accelerate Smart EV adoption.

實際上，此次合作將有助於為中國消費者提供小鵬行業領先的智能電動汽車產品和眾升的優質服務，進一步加速智能電動汽車的普及。

We remain committed to expanding our nationwide sales network to approximately 300 stores, covering 110 cities by end of the year.

我們仍然致力於在年底前將我們的全國銷售網絡擴展到約 300 家門店，覆蓋 110 個城市。

We also continue to expand our super charging network.

我們還繼續擴大我們的超級充電網絡。

As of March 31, the number of XPeng's branded super charging station expanded to 172, covering 60 cities.

截至3月31日，小鵬品牌超級充電站數量擴大至172個，覆蓋60個城市。

Additionally, our free charging program has been available on more than 1,000 supercharging stations as of April 30 this year, covering over 160 cities.

此外，截至今年 4 月 30 日，我們已在 1000 多個超級充電站提供免費充電計劃，覆蓋 160 多個城市。

We expect that there will be more than 500 XPeng branded supercharging stations by the end of this year.

我們預計到今年年底將有超過500個小鵬品牌的超級充電站。

In terms of production at our Zhaoqing factory, we have completed upgrading the production lines so that they can produce both the P7 and the aforementioned P5 concurrently.

在肇慶工廠的生產方面，我們已經完成了生產線升級，可以同時生產P7和上述P5。

We now are conducting total production runs of the P5 model.

我們現在正在進行 P5 模型的總生產運行。

We believe our manufacturing costs will be meaningfully declined when we are able to produce the P7, P5 and in Q3, the same production plant.

我們相信，當我們能夠在同一個生產工廠生產 P7、P5 和第三季度時，我們的製造成本將顯著下降。

In addition, with financial support from the Wuhan government, in April, we entered into a cooperation agreement with the city of Wuhan to build our third factory there.

此外，在武漢市政府的財政支持下，我們於 4 月與武漢市簽訂合作協議，在武漢建設我們的第三家工廠。

The new manufacturing base will contain both manufacturing and powertrain plants and have an annual capacity of 100,000 units.

新製造基地將包括製造工廠和動力總成工廠，年產能為10萬輛。

With funding support from local governments in Wuhan and Guangzhou, we will expedite investment and construction of our plans in these 2 cities.

在武漢和廣州地方政府的資金支持下，我們將加快在這兩個城市的投資建設。

Once fully completed, XPeng's 3 factories located in Zhaoqing, Guangzhou and Wuhan will have a total annual design capacity of 300,000 units.

全部建成後，小鵬汽車位於肇慶、廣州和武漢的3個工廠的總設計年產能將達到30萬輛。

Moreover, with minimal factory reruns and increased workshops, the potential peak output can come close to 500,000 units in total.

此外，在盡量減少工廠復工和增加車間的情況下，潛在的峰值總產量可能接近 500,000 台。

This provides us an excellent foundation for which we can capture widespread demand in the transformation towards Smart EVs.

這為我們提供了一個良好的基礎，我們可以藉此抓住向智能電動汽車轉型的廣泛需求。

Turning to our overseas development, in the first quarter, we exported more than 300 Q3s to Norway.

海外發展方面，第一季度，我們向挪威出口了300多輛Q3。

We plan to start deliveries of the P7 in Norway in the second half of the year.

我們計劃在今年下半年開始在挪威交付 P7。

Moving forward, we'll actively boost our efforts in Norway and other European markets to expand our local sales, delivery and service mechanisms.

展望未來，我們將積極加強在挪威和其他歐洲市場的努力，以擴大我們在當地的銷售、交付和服務機制。

The Smart EV designer and manufacturer that knows China better than any other peer, XPeng will remain focused on delivering differentiated and smart products built upon our industry-leading autonomous driving technologies that meet vast market demands.

作為比其他同行更了解中國的智能電動汽車設計和製造商，小鵬汽車將繼續專注於提供基於我們行業領先的自動駕駛技術的差異化智能產品，以滿足廣闊的市場需求。

This relentless effort will further our mission to shape the mobility experience of the future.

這種不懈努力將進一步推動我們塑造未來出行體驗的使命。

Now moving on to our guidance, excluding preorders reservations of the P5, we're already seeing a historical high of our order backlog.

現在繼續我們的指導，不包括 P5 的預訂，我們已經看到訂單積壓的歷史高位。

We'll strive to ramp up production and minimize the impact from industry-wide shortage.

我們將努力提高產量，盡量減少全行業短缺的影響。

In the second quarter of 2021, we expect our Smart EV delivery to be approximately 15,500 to 16,000 units, and our total revenues to be approximately RMB 3.4 billion to RMB 3.5 billion.

2021 年第二季度，我們預計我們的智能電動汽車交付量約為 15,500 至 16,000 輛，我們的總收入約為人民幣 34 億元至人民幣 35 億元。

Thank you, everyone.

謝謝大家。

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

有了這個，我現在將電話轉給我們的財務副總裁 Dennis Lu 先生，討論我們 2021 年第一季度的財務業績。

Thank you, Xiaopeng He.

謝謝你，何曉鵬。

Hello, everyone.

大家好。

XPeng's robust performance in the first quarter of 2021 validates our strong capability to make differentiated Smart EV appear to various means of the large and growing customer base.

小鵬汽車在 2021 年第一季度的強勁表現證明了我們有能力使差異化的智能電動汽車以各種方式出現在龐大且不斷增長的客戶群中。

Thanks to our record-breaking deliveries in the traditional weak season, in quarter 1, we witnessed a quarter-over-quarter increase in our top line and further improvement in our profitability.

由於我們在傳統的淡季交付量破紀錄，在第一季度，我們的收入環比增長，盈利能力進一步提高。

In particular, our gross margin continued in our trend sequentially, hitting double digits in the quarter.

特別是，我們的毛利率繼續保持我們的趨勢，在本季度達到兩位數。

Additionally, for the first time, revenue from our XPILOT software were recognized in top line and reflecting in gross margin, making a significant milestone in our Chinese EV industry.

此外，我們的 XPILOT 軟件收入首次被確認為收入並反映在毛利率中，成為我們中國電動汽車行業的一個重要里程碑。

Moreover, our sound financial condition and strong cash position enable us to better execute our growth strategies, cement competitive advantages and see tremendous growth opportunity in the Smart EV sector.

此外，我們良好的財務狀況和強勁的現金狀況使我們能夠更好地執行我們的增長戰略，鞏固競爭優勢，並在智能電動汽車領域看到巨大的增長機會。

Now I would like to walk you through our detailed financials for the first quarter of 2021.

現在我想向您介紹一下我們 2021 年第一季度的詳細財務數據。

Total revenues were RMB 2.95 billion for the first quarter of 2021, representing an increase of 616% from RMB 412 million for the same period a year ago, and an increase of 3.5% from RMB 2.85 billion for the fourth quarter of 2020.

2021年第一季度總收入為人民幣29.5億元，較去年同期的人民幣4.12億元增長616%，較2020年第四季度的人民幣28.5億元增長3.5%。

Revenues from vehicle sales were RMB 2.81 billion for the first quarter of 2021, representing an increase of 655% from RMB 372 million for the same period of 2020 and an increase of 2.7% from RMB 2.74 billion for the first quarter of 2020.

2021年第一季度汽車銷售收入為人民幣28.1億元，較2020年同期的人民幣3.72億元增長655%，較2020年第一季度的人民幣27.4億元增長2.7%。

The year-over-year increase was primarily due to delivery of the P7, which started at the end of June last year.

同比增長主要是由於去年 6 月底開始交付 P7。

The quarter-over-quarter increase was primarily attributable to the revenue recognition of XPILOT 3.0 software in the first quarter of 2021 since the functionality was fully delivered through the accumulated group of the software purchases, partially offset by the low government subsidy for the new energy vehicle starting from January this year.

環比增長主要歸因於 XPILOT 3.0 軟件在 2021 年第一季度的收入確認，因為該功能已通過累積的軟件採購組完全交付，部分被政府對新能源的低補貼所抵消車輛從今年一月份開始。

Gross margin was 11.2% for the first quarter of 2021 compared with negative 4.8% for the same period 2020 and 7.4% for the first quarter of last year.

2021 年第一季度毛利率為 11.2%，而 2020 年同期為負 4.8%，去年第一季度為 7.4%。

Vehicle margin was 10.1% for the first quarter of 2021 compared to negative 5.3% for the same period of 2020 and 6.8% for fourth quarter of 2020.

2021 年第一季度汽車利潤率為 10.1%，而 2020 年同期和 2020 年第四季度分別為負 5.3% 和 6.8%。

The improvement was primarily attributable to the material cost reduction and revenue recognition of the XPILOT software sales.

改善主要歸因於 XPILOT 軟件銷售的材料成本降低和收入確認。

Research and development expenses were RMB 535 million for the first quarter of 2021, representing an increase of 72% from RMB 311 million for the same period of 2020 and an increase of 16% from RMB 460 million for the first quarter of 2020.

2021年第一季度研發費用為人民幣5.35億元，較2020年同期的人民幣3.11億元增長72%，較2020年第一季度的人民幣4.6億元增長16%。

The year-over-year increase was mainly due to, number one, the increase in employee compensation as a result of expanded research and development staff; number two, high expenses relating to the P5 development; and number three, share-based compensation expense recognized in the first quarter of 2021.

同比增長的主要原因是，第一，研發人員擴大導致員工薪酬增加；第二，與P5開發相關的高昂費用；第三，2021 年第一季度確認的股權激勵費用。

The quarter-over-quarter increase was mainly due to, number one, increase in employee compensation in line with increasing engineering staff; and number two, higher expenses related to the development of the P5.

環比增長主要是由於，第一，員工薪酬隨著工程人員的增加而增加；第二，與 P5 開發相關的更高費用。

Sales, general and administrative expenses were RMB 721 million for the first quarter of 2021, representing an increase of 124% from RMB 322 million for the same period 2020 and a decrease of 22% from RMB 918 million for the first quarter of 2020.

2021 年第一季度的銷售、一般和管理費用為人民幣 7.21 億元，較 2020 年同期的人民幣 3.22 億元增長 124%，較 2020 年第一季度的人民幣 9.18 億元下降 22%。

The year-over-year increase was mainly due to, number one, higher marketing, promotional and advertising expenses to support vehicle sales; number two, the expansion of our sales network and associated personnel costs.

同比增長的主要原因是，第一，更高的營銷、促銷和廣告費用以支持汽車銷售；第二，我們銷售網絡的擴展和相關的人員成本。

These expenses for the sales and service stores and commission for their franchise stores.

這些費用用於銷售和服務店及其特許經營店的佣金。

And number three, share-based compensation expense recognized in the first quarter of 2021.

第三，2021 年第一季度確認的股權激勵費用。

The quarter-over-quarter decrease was mainly due to, number one, increase in employee compensation in line with increasing engineering staff; and number two, higher expenses related to the development of the P5.

環比下降的主要原因是，第一，員工薪酬隨著工程人員的增加而增加；第二，與 P5 開發相關的更高費用。

Sales, general and administrative expenses were RMB 721 million for the first quarter of 2021, representing an increase of 124% from RMB 322 million for the same period 2020 and a decrease of 22% from RMB 918 million for the first quarter of 2020.

2021 年第一季度的銷售、一般和管理費用為人民幣 7.21 億元，較 2020 年同期的人民幣 3.22 億元增長 124%，較 2020 年第一季度的人民幣 9.18 億元下降 22%。

The year-over-year increase was mainly due to, number one, higher marketing, promotional and advertising expenses to support vehicle sales; number two, the expansion of our sales network and associated personnel costs.

同比增長的主要原因是，第一，更高的營銷、促銷和廣告費用以支持汽車銷售；第二，我們銷售網絡的擴展和相關的人員成本。

These expenses for the sales and service stores and commission for their franchise stores.

這些費用用於銷售和服務店及其特許經營店的佣金。

And number three, share-based compensation expense recognized in the first quarter of 2021.

第三，2021 年第一季度確認的股權激勵費用。

The quarter-over-quarter decrease was mainly due to lower marketing promotional and advertising expense compared with the peak sales season in the fourth quarter last year.

環比下降主要是由於與去年第四季度的銷售旺季相比，營銷推廣和廣告費用有所減少。

Loss from operations was RMB 904 million for the first quarter of 2021 compared with RMB 649 million for the same period of 2020 and RMB 1.1 billion for the fourth quarter of 2020.

2021 年第一季度經營虧損為人民幣 9.04 億元，而 2020 年同期為人民幣 6.49 億元，2020 年第四季度為人民幣 11 億元。

Excluding share-based compensation expense, the non-GAAP loss from operations was RMB 814 million for the first quarter compared with RMB 649 million for the same period of 2020 and RMB 1.1 billion for the first quarter of 2020.

剔除股權激勵費用後，第一季度的非美國通用會計準則運營虧損為人民幣 8.14 億元，而 2020 年同期為人民幣 6.49 億元，2020 年第一季度為人民幣 11 億元。

Net loss was RMB 787 million for the first quarter compared with RMB 650 million for the same period a year ago and RMB 787 million for the fourth quarter of 2020.

第一季度淨虧損為人民幣 7.87 億元，去年同期為人民幣 6.5 億元，2020 年第四季度為人民幣 7.87 億元。

Excluding share-based compensation expense, the fair value change on derivative liabilities related to the retention rights of preferred shares, the non-GAAP adjusted net loss was RMB 696 million for the first quarter of 2021.

剔除股權激勵費用、與優先股保留權相關的衍生負債的公允價值變動，2021 年第一季度非美國通用會計準則調整後的淨虧損為人民幣 6.96 億元。

Compared with RMB 645 million for the same period a year ago and RMB 713 million for the fourth quarter of 2020.

相比之下，去年同期為人民幣6.45億元，2020年第四季度為人民幣7.13億元。

Net loss attributable to the ordinary shareholders of XPeng Incorporation was RMB 787 million for the first quarter compared with RMB 935 million for the same period of 2020 and compared with RMB 787 million for the first quarter of 2020.

第一季度小鵬汽車普通股股東應占淨虧損為人民幣 7.87 億元，2020 年同期為人民幣 9.35 億元，2020 年第一季度為人民幣 7.87 億元。

Excluding share-based compensation expenses, fair value change on derivative liabilities related to the retention right of preferred shares and accretion of the preferred shares to redemption value the non-GAAP net loss attributable to the ordinary shareholders of XPeng Incorporation with RMB 696 million for the first quarter of 2021 compared with CNY 645 million for the same period 2020 and also RMB 713 million for the first quarter of 2020.

剔除股權激勵費用、與優先股保留權相關的衍生負債的公允價值變動和優先股贖回價值增加後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人民幣 6.96 億元2021 年第一季度為 6.45 億元人民幣，2020 年同期為 6.45 億元人民幣，2020 年第一季度為 7.13 億元人民幣。

Basic and diluted net loss of American depository share were both RMB 0.99 for the first quarter of 2021.

2021 年第一季度，美國存託憑證的基本和攤薄淨虧損均為 0.99 元人民幣。

The non-GAAP basic and diluted net loss per ADS were both RMB 0.88 for the first quarter of 2021.

2021 年第一季度，每份 ADS 的非美國通用會計準則基本和稀釋淨虧損均為 0.88 元人民幣。

Each ADS represents 2 Class A ordinary shares.

每份 ADS 代表 2 股 A 類普通股。

Now turning back to balance sheet, as of March 31, 2021, our company had cash and cash equivalents with restricted cash short-term deposit, short-term investment and long-term deposits in total of RMB 36.2 billion compared with 35.3 billion as of December 31 last year.

現在回到資產負債表，截至 2021 年 3 月 31 日，我公司持有的現金及現金等價物受限制的現金短期存款、短期投資和長期存款合計 362 億元，而截至 2021 年 3 月 31 日為 353 億元。去年12月31日。

To be mindful of the (inaudible) of our earnings call for our first quarter financial results, I will encourage listeners to refer to the earnings press release for further details.

請注意我們第一季度財務業績的（聽不清）收益電話會議，我鼓勵聽眾參考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 to the call to questions.

我們現在開始接受提問。

Operator, please go ahead.

接線員，請繼續。

(Operator Instructions) The first question comes from the line of Jeff Chung with Citi.

（操作員說明）第一個問題來自花旗銀行的 Jeff Chung。

This is Jeff from Citi.

我是花旗銀行的傑夫。

So I have 2 questions.

所以我有兩個問題。

The first question is about the software.

第一個問題是關於軟件的。

Could you break down software revenue and gross profit in first quarter this year?

你能分解一下今年第一季度的軟件收入和毛利嗎？

More specific, how much software revenue was derived from the first quarter this year?

更具體地說，今年第一季度有多少軟件收入？

And how much from the rest of 2020?

2020 年剩餘時間有多少？

And the GP margin how should we see this software income and profitability in the second quarter and the second half?

而GP margin我們應該怎麼看這個軟件在第二季度和下半年的收入和盈利能力呢？

So this is my first question.

所以這是我的第一個問題。

Second question is about the vehicle GP margin.

第二個問題是關於車輛 GP 利潤率。

It seems that the G3 equipping with LFP is accretive to the GP margin.

似乎配備 LFP 的 G3 增加了 GP 利潤率。

So how much better compared with the LCM battery?

那麼與LCM電池相比好多少呢？

Secondly, in the 1Q announcement, you mentioned that the first quarter cost of goods sold came down Q-on-Q due to a lower material cost.

其次，在第一季度的公告中，您提到由於材料成本較低，第一季度的商品銷售成本環比下降。

Could you quantify a bit in terms of what kind of materials leading to a lower cost?

您能否量化一下哪種材料可以降低成本？

And how would you see the cost trend into the second quarter?

您如何看待第二季度的成本趨勢？

(foreign language)

（外語）

Okay, thank you, Jeff.

好的，謝謝你，傑夫。

Very good questions.

非常好的問題。

I will try to handle the questions and then Brian or Charles or Xiaopeng can supplement later.

我會盡量處理問題，稍後Brian 或Charles 或Xiaopeng 可以補充。

Number one is the software.

第一是軟件。

Actually, in Q1, our total revenue from the XPILOT 3.0 software was about RMB 80 million.

實際上，在第一季度，我們從 XPILOT 3.0 軟件獲得的總收入約為 8000 萬元人民幣。

Among that, 50 some million was from those contracts, we purchased -- the customer purchased last year, and the other around CNY 30 million is from the software we saw this year.

其中，5000萬來自我們購買的合同——客戶去年購買的，另外約3000萬元來自我們今年看到的軟件。

So in general, the software accounts for about 2.5 percentage points of the margin amounted 2.5 points, 1.5 will be contributed from those contracts we sold last year.

所以一般來說，軟件佔保證金的 2.5 個百分點左右，總計 2.5 個百分點，其中 1.5 個將來自我們去年出售的那些合同。

And the other 1 percentage point is from those countries we saw in the first quarter.

另外一個百分點來自我們在第一季度看到的那些國家。

Because we have a very good NGP scheme from the Guangzhou to Beijing, we actually are seeing the software and also the hardware for the XPILOT is increasing actually in March and also in April.

因為我們有一個從廣州到北京的非常好的 NGP 計劃，我們實際上看到 XPILOT 的軟件和硬件實際上在 3 月和 4 月都在增加。

So we foresee the software penetration will be even higher in the second quarter.

因此，我們預計第二季度的軟件普及率會更高。

But again, in the first quarter, the total revenue -- or the total margin includes around 3,000 units of those software the customer purchased last year.

但同樣，在第一季度，總收入——或總利潤包括客戶去年購買的大約 3,000 套軟件。

So the second quarter [would not] as high as 2.5%, but definitely, it will be higher than 1 percentage points for the first quarter.

所以第二季度[不會]高達2.5%，但肯定會比第一季度高出1個百分點。

That's number one.

這是第一。

The second question is for the G3.

第二個問題是關於 G3 的。

Yes, actually, we have material advantage compared with the LFP battery versus the LCM battery.

是的，實際上，與 LFP 電池和 LCM 電池相比，我們具有材料優勢。

But I cannot tell you exactly number.

但我不能告訴你確切的數字。

We are seeing, for example, we maintain the same MSRP, same available marketing.

例如，我們看到我們保持相同的廠商建議零售價、相同的可用營銷。

However, we have the better material cost so that would improve our -- the G3 margin as well.

但是，我們有更好的材料成本，因此也可以提高我們的 G3 利潤率。

We started the delivery of the LLP G3 in April, so we will foresee the margin improvement for G3 in the second quarter.

我們在 4 月份開始交付 LLP G3，因此我們預計第二季度 G3 的利潤率會有所提高。

And #3 is for the material cost reduction.

#3 是為了降低材料成本。

Yes, we have the material (inaudible) compared with the quarter 4. (inaudible) is primarily from the battery cost reduction.

是的，我們有與第 4 季度相比的材料（聽不清）。（聽不清）主要來自電池成本的降低。

We actually -- we negotiate with our battery supplier to get the battery cost reduction.

我們實際上 - 我們與我們的電池供應商談判以降低電池成本。

That basically was the negotiation was completed earlier this year.

這基本上是今年早些時候完成的談判。

So we have some material cost reduction.

所以我們有一些材料成本降低。

The percentage will be from 5% to 10% in terms of the cost reduction versus the level at the end of last year.

與去年底的水平相比，成本降低的百分比將在 5% 至 10% 之間。

I hope I answered your questions.

我希望我回答了你的問題。

The next question comes from Edison Yu, Deutsche Bank.

下一個問題來自德意志銀行的Edison Yu。

Congrats on the quarter.

祝賀這個季度。

First question is, could you give us an update on the LIDAR testing and validation with Livox, is it meeting your performance requirements?

第一個問題是，您能否向我們介紹一下使用 Livox 進行的 LIDAR 測試和驗證的最新情況，它是否滿足您的性能要求？

And are you confident that the P5 with a LIDAR on it will be hitting the streets in the fourth quarter?

您是否有信心搭載激光雷達的 P5 將在第四季度上市？

And then second question is on the reservation number.

第二個問題是關於預訂號碼的。

I know you disclosed it shortly after the release.

我知道你在發布後不久就透露了它。

Could you maybe provide us an update?

你能給我們提供更新嗎？

And if it's not the exact number, I know you don't give that, but some sense of relative to your own expectations, how much higher is this number tracking?

如果不是確切的數字，我知道你不會給出，但相對於你自己的期望，這個數字跟踪要高多少？

I'll translate.

我會翻譯。

(foreign language)

（外語）

[Interpreted] So we have tested multiple LIDARs of different brands, and we compare them by different parameters in terms of their human craftmanship, their costs and also their capability of being mass produced.

【解讀】所以我們測試了多款不同品牌的激光雷達，通過不同的參數，從人工工藝、成本、量產能力等方面進行比較。

And so the LIDAR that we use on P5 is actually DJI (inaudible) and what we are very open to other options.

因此，我們在 P5 上使用的 LIDAR 實際上是 DJI（聽不清），我們對其他選擇持非常開放的態度。

So by 2022 to 2023, the new models that we are launching may adopt different brands that make -- that produce LIDARs.

因此，到 2022 年到 2023 年，我們推出的新車型可能會採用不同品牌的激光雷達。

So basically, we are very confident that right now, with our capabilities of all around full (inaudible) market performance on our vehicles and also on our production capabilities.

因此，基本上，我們現在非常有信心，憑藉我們在車輛和生產能力方面全面（聽不見）市場表現的能力。

We can actually be complementary to some of the LIDAR technology shortage for lighter technology disadvantage out there.

我們實際上可以彌補一些激光雷達技術的不足，以彌補那裡較輕的技術劣勢。

However, in the long run, we hope that we can achieve a good balance between the cost of the LIDAR technology and the capability being mass produced, at the same time, we can achieve (inaudible) balance among different performances across different parameters.

但是，從長遠來看，我們希望我們能夠在激光雷達技術的成本和量產能力之間取得很好的平衡，同時，我們能夠在不同參數的不同性能之間取得（聽不清）平衡。

So we are very confident that by Q4 this year, we can launch P5 equipped with LIDAR.

所以我們非常有信心，到今年四季度，我們可以推出搭載激光雷達的P5。

And regarding your second question about reservation number, obviously, we can't disclose the exact number, but compared to P7's launch on the Shanghai auto show last year in the same period, actually, P5 reservation number is a few times more than that of P7.

還有關於你的第二個問題，預約數量，當然，我們不能透露具體的數量，但是和去年上海車展同期發布的P7相比，其實P5的預約數量是P5的幾倍。 P7.

And also getting the feedback from our front line sales force, the same period last year when we first launched P7, they do feel some pressure from the market regarding the price of P7.

而且也從我們一線銷售人員那裡得到反饋，去年同期我們剛推出P7的時候，他們確實感受到了市場對P7價格的一些壓力。

However, this year, with the launch of P5 every single feedback has been very positive regarding the launch of P5.

然而，今年，隨著 P5 的推出，每一個反饋都對 P5 的推出非常積極。

So we're really confident that the actual performance in terms of the orders and deliveries of P5 will be very, very encouraging.

因此，我們非常有信心 P5 的訂單和交付方面的實際表現將非常非常令人鼓舞。

The next question comes from the line of Tim Hsiao with Morgan Stanley. .

下一個問題來自 Tim Hsiao 與摩根士丹利的對話。 .

Congratulations on the solid results.

祝賀你取得了不錯的成績。

So my first question is about the components because compared to other EV start-up peers, XPeng this year apparently have much more new models, especially in second half.

所以我的第一個問題是關於組件的，因為與其他 EV 初創同行相比，今年的 XPeng 顯然有更多的新車型，尤其是在下半年。

So while we expect the chip shortage might ease in second half, but what else has XPeng done to ensure other major component for either (inaudible) for new launches, would have sufficient components supply later this year, especially, I think there are a lot of new models where we'll also be coming to the market in the second half.

因此，雖然我們預計下半年芯片短缺可能會有所緩解，但小鵬還做了什麼來確保新發布的其他主要組件（聽不清）在今年晚些時候會有足夠的組件供應，特別是，我認為有很多我們也將在下半年推向市場的新型號。

My second question is just a quick follow-up on the guidance.

我的第二個問題只是對指南的快速跟進。

What kind of visibility do we have so far on (inaudible)?

到目前為止，我們有什麼樣的知名度（聽不清）？

How much inventory do we have at the moment to support the production plan throughout the whole second quarter and meet the guidance of the sequential volume growth into the sequential volume growth?

我們目前有多少庫存來支持整個第二季度的生產計劃，並滿足環比銷量增長到環比銷量增長的指導？

(foreign language)

（外語）

[Interpreted] Thank you for your questions, regarding the shortage in chipsets, basically, it is now a big challenge for all the automakers out there and nobody out there can really promise that they can solve the problem in a short time.

[解讀]謝謝你的問題，關於芯片組的短缺，基本上，現在對所有汽車製造商來說都是一個很大的挑戰，沒有人能真正保證他們能在短時間內解決這個問題。

And for Smart EV manufacturers, actually, I think Q2, upcoming Q2 will be the most challenging timing.

而對於智能電動汽車製造商來說，實際上，我認為第二季度，即將到來的第二季度將是最具挑戰性的時機。

And we hope that by Q3 this year, things will get better.

我們希望到今年第三季度，情況會好轉。

However, if not, then Q1 next year, maybe things will become -- the tension may become more [relieved].

然而，如果沒有，那麼明年第一季度，事情可能會變得——緊張可能會變得更加[鬆一口氣]。

So in order to prevent ourselves into are getting into a difficult situation, we have taken several measures, for example, we have made a lot of preorders with our existing suppliers.

所以為了不讓自己陷入困境，我們採取了一些措施，比如，我們向現有的供應商進行了大量的預購。

We communicate directly with the suppliers ahead of different supplies of chipsets to make sure that we have enough inventory and orders come in place to support our future development and production.

我們在不同的芯片組供應之前直接與供應商溝通，以確保我們有足夠的庫存和訂單到位，以支持我們未來的開發和生產。

And also, because we have a lot of full [suite] automated R&D technology that allow us to be really flexible in adapting to different chipsets in manufacturing vehicles, we are able to actually look out for new partners and new manufacture chipsets that we can actually become more adaptive to market change and through this chipset shortage.

而且，因為我們有很多完整的 [套件] 自動化研發技術，使我們能夠真正靈活地適應製造車輛中的不同芯片組，我們能夠真正尋找新的合作夥伴和新的製造芯片組，我們實際上可以變得更能適應市場變化和應對芯片組短缺。

So in the long run, we believe that, and we have confidence that this can be resolved, but we can't promise anything right now.

所以從長遠來看，我們相信，我們有信心解決這個問題，但我們現在不能承諾任何事情。

Tim, this is Brian.

蒂姆，這是布萊恩。

I just want to add, in terms of the guidance we gave for this quarter, we have considered the constraints of the chip shortage situation that Xiaopeng described.

我只是想補充一點，在我們對本季度的指導方面，我們已經考慮了小鵬描述的芯片短缺情況的製約因素。

So that reflected the constrained numbers.

所以這反映了受限的數字。

Without constraints, obviously, the delivery number will be higher than what we have given out.

如果沒有限制，顯然，交貨數量將高於我們給出的數量。

But on the other hand, I think the chip shortage visibility is still not very clear.

但另一方面，我認為芯片短缺的能見度仍然不是很清楚。

So it will be subject to the changes.

所以它會受到變化的影響。

So we keep a very close eye on the situation.

所以我們非常密切地關注情況。

[Interpreted] Now in terms of other components, as we deliver more new models in Q3 or Q4 this year, we are going to face some constraints in terms of other components other than chip shortage.

[解讀]現在在其他元器件方面，隨著我們今年第三季度或第四季度交付更多新型號，我們將面臨除芯片短缺之外的其他元器件方面的一些限制。

For example, one important thing is the battery supply.

例如，一件重要的事情是電池供應。

Right now, we are using LPF (sic) [LFP] for some of our vehicle models.

現在，我們正在為我們的一些車型使用 LPF（原文如此）[LFP]。

And the rampup of the adoption of LFP, sorry, will take about 1 quarter.

抱歉，LFP 的採用率上升大約需要 1 個季度。

And so by Q3 this year, we estimate that we will reach a comfortable level of adopting the new LFP batteries.

因此，到今年第三季度，我們估計我們將達到採用新 LFP 電池的舒適水平。

And also, the market demand for LFP battery is actually larger than expected.

而且磷酸鐵鋰電池的市場需求其實比預期的要大。

And that is why in Q3, Q4 this year, we are going to be able to reach a more comfortable level of production -- adopting this new battery.

這就是為什麼在今年第三季度、第四季度，我們將能夠達到更舒適的生產水平——採用這種新電池。

And as was mentioned by Brian before, our guidance for this year later on actually included the calculation of all of those components that I've mentioned.

正如 Brian 之前提到的，我們今年晚些時候的指導實際上包括了我提到的所有這些組件的計算。

The next question comes from the line of Nick Lai with JPMorgan.

下一個問題來自 Nick Lai 與摩根大通的對話。

Yes, it's Nick here.

是的，我是尼克。

My 2 simple question, the first question is margin in light of chip shortage and raw material price hike.

我的2個簡單問題，第一個問題是考慮到芯片短缺和原材料價格上漲的保證金。

I think Brian and Mr. He have already answered part of that question regarding chip supply.

我想 Brian 和何總已經回答了部分關於芯片供應的問題。

And so maybe just on the margin outlook in light of the raw material price, can you give us some indication or guidance how do you mitigate such kind of a high price -- material price headwinds.

因此，也許只是關於原材料價格的利潤率前景，您能否給我們一些指示或指導，您如何減輕這種高價格 - 材料價格逆風。

And the second question really regarding the business model, XPILOT 3.0.

第二個問題是關於商業模式，XPILOT 3.0。

At the moment, our customers pay roughly around 20,000 renminbi together XPILOT 3.0 service.

目前，我們的客戶共支付約20,000元左右的XPILOT 3.0服務。

I'm curious as we launched -- as we rollout XPILOT 3.5 or 4.0 in the future, do customers have the facility to pay back on demand or more on subscription model?

當我們推出時我很好奇——當我們在未來推出 XPILOT 3.5 或 4.0 時，客戶是否可以按需或訂閱模式支付更多費用？

(foreign language)

（外語）

Nick, this is Dennis.

尼克，這是丹尼斯。

Let me handle the first question.

讓我來處理第一個問題。

Actually, in our first quarter margin, we did not have the material impact on the margin due to the chip or, the raw material, so not in your first quarter.

實際上，在我們第一季度的利潤率中，由於芯片或原材料，我們沒有對利潤率產生重大影響，所以在第一季度沒有。

But looking at the second quarter, we do have some impact due to the raw material, for example, the steel, the aluminum, those raw materials, some slight cost impact to our margin.

但看看第二季度，我們確實受到原材料的一些影響，例如鋼、鋁，這些原材料，對我們的利潤率有一些輕微的成本影響。

And also, in terms of chip, we are also sourcing some alternative chip and also probably to help our supplier to get chips.

而且，在芯片方面，我們也在採購一些替代芯片，也可能幫助我們的供應商獲得芯片。

So there are some material -- some cost increase, but in total, these 2 components together, the impact would be less than 1 percentage point in terms of margin.

所以有一些材料 - 一些成本增加，但總的來說，這兩個組成部分加在一起，就利潤率而言影響不到 1 個百分點。

The amount is somewhere around RMB 1,000 to RMB 1,500, but less than 1% of the margin impact to the second quarter.

金額約為 1,000 元至 1,500 元人民幣，但不到第二季度利潤率影響的 1%。

For the third quarter, we need to close the monitor, but the situation probably won't be released in the third quarter.

對於第三季度，我們需要關閉監控，但情況可能不會在第三季度發布。

[Interpreted] So let me take the second part of your question.

[解釋]那麼讓我來回答你問題的第二部分。

Actually, in my opinion, paying by on demand model or a subscription model will actually cost our customer more than paying a one-off for that software and service change.

事實上，在我看來，通過按需模式或訂閱模式付費實際上會讓我們的客戶付出比一次性支付軟件和服務更改更多的成本。

Going forward, we are also considering other service charge possibilities, and we will communicate in a timely manner when we have to update to the market.

未來，我們也在考慮其他服務收費的可能性，需要更新到市場時我們會及時溝通。

The next question comes from the line of Bin Wang with Crédit Suisse.

下一個問題來自 Bin Wang 與 Crédit Suisse 的對話。

(foreign language) My question is about (inaudible) service capability.

（外語）我的問題是關於（聽不清）服務能力。

After XPILOT 3.5 XPILOT with the comparison between the (inaudible) solution and quality solution compared to XPeng's XPILOT 3.5 open NGP.

在 XPILOT 3.5 之後 XPILOT 與（聽不清）解決方案和質量解決方案之間的比較與 XPeng 的 XPILOT 3.5 開放 NGP 相比。

[Interpreted] Now actually, in terms of XPILOT 3.0 and its functionality, we will have an official release when we launch the P5 later on this year.

[解讀] 現在實際上，就XPILOT 3.0及其功能而言，我們將在今年晚些時候推出P5時正式發布。

However, right now, I can comment on different solutions and different criteria for evaluating different solutions.

但是，現在，我可以評論不同的解決方案和評估不同解決方案的不同標準。

Basically, we have to balance several things or certain aspects.

基本上，我們必須平衡幾件事或某些方面。

First of all, you have to look at the combination of different functionality.

首先，您必須查看不同功能的組合。

Second of all, you have to combine the -- you have to look at the integration of the hardware and software and the overall cost of using the solution.

其次，您必須結合——您必須查看硬件和軟件的集成以及使用該解決方案的總體成本。

The third aspect is that you have to look at the scenario of the usage or the scope of the usage of that particular solution.

第三個方面是您必須查看該特定解決方案的使用場景或使用範圍。

Last but not least, you also have to take into consideration the data feedback from the users, whether or not they consider it a good experience to use that particular solution.

最後但同樣重要的是，您還必須考慮用戶的數據反饋，他們是否認為使用該特定解決方案是一種良好的體驗。

Now in the market right now, you might come across some videos or some solutions that claim that they're doing very good in certain aspects, but that is only in certain functionality or at a very high cost.

現在在市場上，你可能會遇到一些視頻或一些解決方案，聲稱它們在某些方面做得很好，但那隻是在某些功能上或成本非常高。

Right now, what XPeng is trying to do is that we are coming up with solutions, autonomous driving that can balance all of those aspects at a reasonable cost, so that we can deliver the most superior experience in terms of autonomous driving for our customers.

目前，小鵬汽車正在嘗試做的是，我們正在提出解決方案，自動駕駛能夠以合理的成本平衡所有這些方面，以便我們能夠為客戶提供最卓越的自動駕駛體驗。

And we are launching different versions, and we want to go into the future where we can actually use these technology to support not just G3 but also to cover all of the other roads in China and then later on to all terrain traffic road scenarios in China and even go above that to go to the global scenario and scope.

我們正在推出不同的版本，我們希望進入未來，我們可以實際使用這些技術，不僅支持 G3，還覆蓋中國所有其他道路，然後再擴展到中國的全地形交通道路場景甚至超越這一點，進入全球場景和範圍。

So that is an art, if I may, to balance all these different aspects in order to achieve the best solution for our customers.

因此，如果可以的話，這是一門藝術，可以平衡所有這些不同方面，以便為我們的客戶提供最佳解決方案。

The next question comes from the line of Ming Lee with Bank of America.

下一個問題來自美國銀行的 Ming Lee。

(foreign language) My question, I have 2 questions, the first question is regarding the mid period Q3 upgrade.

（外語）我的問題，我有2個問題，第一個問題是關於中期Q3升級。

So when will you start to do this?

那麼你什麼時候開始這樣做呢？

And will you use a contract manufacturing business model?

您會使用合同製造業務模型嗎？

Or you will use your own capacity to manufacture it?

或者你會用你自己的能力來製造它？

And then if you manufacture it by yourself, will it become margin neutral or is slightly helpful to your margin?

然後，如果您自己製造它，它會變成利潤中性還是對您的利潤略有幫助？

And the second question is regarding the LFP battery orders.

第二個問題是關於 LFP 電池訂單。

Last time, during your earning call, you mentioned that around 10% of orders of Q3 is for LFP battery version.

上次，在你的財報電話會議上，你提到 Q3 大約 10% 的訂單是 LFP 電池版本。

And the 20% orders of P7 is for LFP battery version.

而P7的20%訂單是磷酸鐵鋰電池版。

So after 2 months, do you see any structural change regarding your order combination?

那麼 2 個月後，您是否發現您的訂單組合有任何結構性變化？

[Interpreted] Okay, about the new version of G3, we actually wouldn't do any upgrade in terms of its autonomous driving capability because we hope that by the next time, another newer upgrade of G3 will be able to support a higher level of autonomous driving.

【解讀】好吧，新版的G3，其實在自動駕駛能力方面，我們是不會做升級的，因為我們希望下次再升級的G3能夠支持更高級別的自動駕駛。自動駕駛。

And regarding the second part of your first question if we were to produce the next version of next model of G3 in our own factory, definitely, the margin will be improved, and it will also impact other models gross margin as well in a very positive manner.

關於你第一個問題的第二部分，如果我們要在我們自己的工廠生產下一代 G3 的下一個版本，肯定會提高利潤率，這也會對其他型號的毛利率產生非常積極的影響方式。

And the second question regarding the demand for LFP battery, right?

第二個問題是關於 LFP 電池的需求，對嗎？

Basically, we've seen more demand for that battery than expectation.

基本上，我們看到對該電池的需求超出預期。

So for G3 and P7, that number, that order for LFP battery definitely have surpassed that we have the was disclosed in last conference call.

因此，對於 G3 和 P7，LFP 電池的訂單數量肯定超過了我們在上次電話會議中披露的數量。

And so right now, we are in the process of proceeding with a lot of the battery suppliers and hopefully that they can ramp up their capacity production of that battery, so that we can support that order demand for Q3 this year.

所以現在，我們正在與許多電池供應商合作，希望他們能夠提高電池的產能，以便我們能夠支持今年第三季度的訂單需求。

In the long run, we are very confident that actually demand for LFP will continue to go up, and we are very confident that it will help us drive up the margin in general?

從長遠來看，我們非常有信心 LFP 的實際需求將繼續上升，我們非常有信心它會幫助我們提高總體利潤率？

So Ming, this is Brian.

明，這是布賴恩。

Let me just add on the LFP battery front, what we see is that the increased demand is actually additive to our existing demand with the LCM battery-powered models.

讓我在 LFP 電池方面補充一下，我們看到的是，增加的需求實際上增加了我們對 LCM 電池供電模型的現有需求。

In fact, we have not seen the number of LCM models decline as a result of the launch of LFP batteries.

事實上，我們並沒有看到LCM型號的數量因為磷酸鐵鋰電池的推出而下降。

We believe that LFP battery actually expanded our customer base and the reach because of the wider pricing.

我們相信，由於定價更廣泛，LFP 電池實際上擴大了我們的客戶群和範圍。

And also, I think given the capacity ramp up, we think the mix will reach probably a steady state percentage high sometimes in third quarter, and that's where we think we don't see the most significant contribution on volume side.

而且，我認為考慮到產能的增加，我們認為這種組合有時會在第三季度達到穩定狀態的高百分比，而這就是我們認為我們在數量方面看不到最重要貢獻的地方。

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

由於沒有進一步的問題，現在我想將電話轉回公司以作結束語。

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 Group 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 集團投資者關係聯繫小鵬的投資者關係。

Thank you.

謝謝你。

This does conclude today's conference call.

這確實結束了今天的電話會議。

You may now disconnect your line.

您現在可以斷開線路。

Thank you.

謝謝你。