Xpeng Inc (XPEV) 2020 Q3 法說會逐字稿

Hello, ladies and gentlemen, thank you for standing by for the Third Quarter 2020 Earnings Conference Call for XPeng, Inc. (Operator Instructions) Today's conference call is being recorded. I will now turn the call over to your host, [Mr. Charles Zhang,] Managing Director of Strategy of the company. Please go ahead, Mr. Zhang.

女士們，先生們，您好，感謝您耐心等待小鵬汽車2020年第三季度財報電話會議（操作員說明）今天的電話會議正在錄製中。我現在將把電話轉給你的主人，[先生。 Charles Zhang] 公司戰略部董事總經理。請繼續，張先生。

Thank you. Hello, everyone, and welcome to the Third Quarter 2020 Earnings Conference Call of XPeng, Inc. The company's financial and operating results were issued by our news wire services earlier today and are available online. You can also view the earnings press release by visiting the IR section of our website at ir.xiaopeng.com. Participants on today's call 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 and myself. Management will begin with prepared remarks, and the call will conclude with the Q&A session. As a reminder, this conference is being recorded. A webcast replay of this conference call will be available on the IR section of our website.

謝謝你。大家好，歡迎來到小鵬汽車2020年第三季度財報電話會議。該公司的財務和經營業績今天早些時候由我們的新聞通訊社發布，可在線查閱。您還可以訪問我們網站 ir.xiaopeng.com 的 IR 部分查看收益新聞稿。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；財務副總裁 Dennis Lu 先生和我本人。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。提醒一下，這次會議正在錄製中。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. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the relevant public filings of the company as far with U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required under the applicable law. Please also note that XPeng's earnings press release and this conference call include discussions of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. XPeng's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures. I will now turn the call over to our Co-Founder, Chairman and CEO, Mr. Xiaopeng. Please go ahead.

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。前瞻性陳述涉及固有的風險和不確定性。因此，該公司的業績可能與今天表達的觀點存在重大差異。關於這些和其他風險和不確定性的更多信息包含在公司向美國證券交易委員會提交的相關公開文件中。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。另請注意，小鵬汽車的收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務指標以及未經審計的非 GAAP 財務指標的討論。 XPeng 的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。我現在將把電話轉給我們的聯合創始人、董事長兼首席執行官小鵬先生。請繼續。

[Interpreted]

[解讀]

Hello, everyone. Thank you for joining XPeng's Inaugural Earnings Conference Call today.

大家好。感謝您今天參加小鵬汽車的首次財報電話會議。

On August 27, 2020, XPeng successfully listed on the New York Stock Exchange, a significant milestone marking the start of our new journey as a public company. On behalf of all the employees and myself, I'd like to extend our sincere gratitude and appreciation to all of the long time and new shareholders who have been supporting us.

2020年8月27日，小鵬汽車在紐約證券交易所成功上市，這是我們開啟上市新征程的重要里程碑。我謹代表全體員工和我本人，向長期以來一直支持我們的各位股東和新股東表示衷心的感謝和感謝。

Today marks another milestone for XPeng as we reported our first quarterly results following our successful IPO. We're pleased to be speaking with you today about our strong operating and financial performance in the third quarter, in which total vehicle deliveries increased by 266% year-over-year to 8,578 units. In addition, we achieved positive gross margin of 4.6%, bolstered by significant revenue growth and mass deliveries of the P7.

今天標誌著 XPeng 的又一個里程碑，因為我們在成功 IPO 後公佈了第一季度業績。我們很高興今天與您談論我們第三季度強勁的運營和財務業績，其中車輛總交付量同比增長 266% 至 8,578 輛。此外，在顯著的收入增長和 P7 的大規模交付的推動下，我們實現了 4.6% 的正毛利率。

The P7 is our Smart Sports sedan, which is also our second in mass production level model. Deliveries of the P7 have maintained fast growth momentum since our mass delivery began in late June. During the third quarter, we delivered 6,210 P7s, of which 98% can support XPILOT 2.5 or XPILOT 3.0, our advanced autonomous driving systems. It is worth noting that on [October '20], the 10,000th P7 rode off our production line in our own Zhaoqing facility. We now hold the record as the fastest emerging smart EV company to surpass the 10,000 vehicle production mark. All these achievements demonstrate our ever stronger capabilities across the entire EV spectrum in research and development, manufacturing, branding and sales and services.

P7 是我們的 Smart Sports 轎車，也是我們的第二款量產車型。自6月下旬開始批量交付以來，P7的交付量一直保持快速增長勢頭。第三季度，我們交付了 6,210 輛 P7，其中 98% 可以支持我們先進的自動駕駛系統 XPILOT 2.5 或 XPILOT 3.0。值得注意的是，[20 年 10 月]，第 10,000 台 P7 在我們自己的肇慶工廠下線。我們現在保持著最快突破 10,000 輛汽車生產大關的新興智能電動汽車公司的記錄。所有這些成就都表明我們在整個電動汽車領域的研發、製造、品牌、銷售和服務方面的能力越來越強。

I believe XPeng is the only Chinese car-making company that is developing full-stack autonomous driving software and smart in-car operating system in-house. On the second XPeng Tech Day, which was held on October 24 this year, we showcased our first of its kind, all-voice in-car system, which enables continuous driver vehicle dialogue interactions covering a broad range of scenarios. It is one of our key proprietary technologies developed for and applied in our second-generation X-smart OS operation system. We also showcased our autonomous driving technology capabilities, bolstered by our in-house developed navigation guided pilot system, also known as NGP, which enables autonomous driving on highways with features including autonomous lane changes, overtaking other vehicles and switching ramps amongst other things. Our goal is to provide the most advanced navigation guided autonomous driving system in China. We plan to make the NGP system available to our customers via OTA earlier next year. In the first quarter of 2021, we plan to conduct an expedition for our NGP to cross over 2,000 kilometers of highway from Guangzhou to Beijing. We believe this is just the beginning of how high level autonomous driving technology is transforming mobility in China. I firmly believe that dedication to full stack in-house R&D is the key to enhancing our product differentiation and solidifying our core competitiveness.

我相信小鵬汽車是唯一一家自主研發全棧自動駕駛軟件和智能車載操作系統的中國造車企業。在今年 10 月 24 日舉行的第二屆小鵬科技日上，我們展示了我們的首個全語音車載系統，該系統可實現涵蓋廣泛場景的持續駕駛員車輛對話交互。它是我們為第二代X-smart OS操作系統開發和應用的關鍵專有技術之一。我們還展示了我們的自動駕駛技術能力，由我們內部開發的導航引導系統（也稱為 NGP）提供支持，該系統支持在高速公路上自動駕駛，具有自動變道、超車和切換坡道等功能。我們的目標是提供中國最先進的導航引導自動駕駛系統。我們計劃在明年初通過 OTA 向我們的客戶提供 NGP 系統。 2021年第一季度，我們計劃進行一次NGP探險，穿越廣州到北京2000多公里的高速公路。我們相信，這只是高水平自動駕駛技術正在改變中國出行方式的開始。我堅信，全棧自主研發是提升產品差異化、鞏固核心競爭力的關鍵。

In terms of production, after our own Zhaoqing plant officially started mass production of the P7 in the first half of the year, in September, our second manufacturing base broke ground in the Guangzhou economic development zone with strong support from Guangzhou government. We expect this new XPeng Smart EV manufacturing base to start production by the end of 2022. Together with our Zhaoqing manufacturing base, we have set a solid foundation for XPeng's long-term growth strategy.

在生產方面，繼上半年自有肇慶工廠正式量產P7後，9月份，在廣州市政府的大力支持下，第二個製造基地在廣州經濟開發區破土動工。我們預計這個新的小鵬智能電動汽車製造基地將於 2022 年底投產。我們與肇慶製造基地一起，為小鵬的長期增長戰略奠定了堅實的基礎。

In terms of sales and service network, as of September 30, 2020, XPeng's physical sales and service network comprised of a total of 116 stores and 50 service centers covering 58 cities. Additionally, our supercharging network continued to expand across the nation. As of September 30, 2020, XPeng branded supercharging stations has increased to 135, covering 50 cities. Furthermore, we announced an XPeng sponsored free supercharging program at the Beijing Auto Show on September 26. The program has been initiated in 24 cities and will be expanded to at least 60 cities by the end of the year. XPeng will strategically invest in the nationwide deployment of a supercharging network over the next few years.

在銷售和服務網絡方面，截至2020年9月30日，小鵬汽車的實體銷售和服務網絡共有116家門店和50個服務中心，覆蓋58個城市。此外，我們的增壓網絡繼續在全國范圍內擴展。截至2020年9月30日，小鵬品牌超充站增至135座，覆蓋50個城市。此外，我們在 9 月 26 日的北京車展上宣布了小鵬汽車贊助的免費超級充電計劃。該計劃已在 24 個城市啟動，並將在年底前擴展到至少 60 個城市。未來幾年，小鵬汽車將戰略性投資在全國范圍內部署超級充電網絡。

While continuously strengthening our leadership position in China's Smart EV industry, we're also strategically developing opportunities in international markets. For example, in September, we shipped the first batch of XPeng's G3s to Europe. The super long-range version of the G3 is our Smart SUV model adapted for European markets' specifications. The shipment marked our first step to tapping international markets.

在不斷鞏固我們在中國智能電動汽車行業的領導地位的同時，我們也在戰略性地開拓國際市場。例如，9月份，我們將第一批小鵬G3發往歐洲。 G3的超長續航版是我們針對歐洲市場規格適配的Smart SUV車型。這批貨物標誌著我們邁出了開拓國際市場的第一步。

In the third quarter, we successfully completed our IPO, which had a total offering size of $1.7 billion. Together with the $900 million raised in Series C plus financing. Our fundraising totaled nearly $2.6 billion in the third quarter. With the support of substantial capital reserves, we intend to increase investments in branding, sales and service network, charging network as well as in technology advancement and model development.

第三季度，我們成功完成了 IPO，總發行規模為 17 億美元。連同在 C 系列融資中籌集的 9 億美元。第三季度我們的籌款總額接近 26 億美元。在雄厚的資本儲備支持下，我們擬加大對品牌、銷售和服務網絡、充電網絡以及技術進步和模式開發的投入。

For the fourth quarter of 2020, we expect deliveries of our vehicles to be approximately 10,000 vehicles. Our ability to achieve remarkable performance is attributable not only to our strong in-house R&D capabilities, but also to our effective strategies in market positioning, product planning, manufacturing capabilities and our operational roadmap.

2020 年第四季度，我們預計我們的車輛交付量約為 10,000 輛。我們取得卓越業績的能力不僅歸功於我們強大的內部研發能力，還歸功於我們在市場定位、產品規劃、製造能力和運營路線圖方面的有效策略。

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

謝謝大家。有了這個，我現在將電話轉給我們的財務副總裁 Dennis Lu 先生，討論我們第三季度的財務業績。

Thank you, Xiaopeng. And hello, everyone. As noted, we delivered strong top notch performance in the first quarter -- in the third quarter and post the (inaudible) gross profit for the first time in our company's history. We have reached this milestone in large part due to our successful launch in mass delivery of P7, which also carries an increased average selling price compared with our prior model. Our August IPO and the New York Stock Exchange, this did not only provide the funding for our long-term sustainable growth, but also further strengthened our brand and our influence in the electric vehicle industry.

謝謝你，小鵬。大家好。如前所述，我們在第一季度 - 第三季度實現了強勁的一流業績，並在我們公司歷史上首次公佈了（聽不清）毛利潤。我們之所以達到這一里程碑，很大程度上要歸功於我們成功推出 P7 的批量交付，與我們之前的型號相比，P7 的平均售價也有所提高。我們8月份的IPO和紐交所，這不僅為我們的長期可持續增長提供了資金，也進一步加強了我們的品牌和我們在電動汽車行業的影響力。

Now I would like to walk you through our detailed financial results for the third quarter of 2020. Total revenues were RMB 2 billion for the third quarter, representing an increase of 343% from RMB 450 million for the same period of 2019. And an increase of 237% from RMB 591 million for the second quarter of this year. Revenues from vehicle sales were RMB 1.9 billion for the third quarter representing an increase of 376% from RMB 399 million for the same period of 2019. And an increase of 251% from RMB 541 million for the second quarter this year. The year-over-year and quarter-over-quarter increases were mainly due to the acceleration of deliveries of the P7 since we began its mass delivery in late June this year. Gross margin was 4.6% for the third quarter compared with negative 10.1% for the same period last year and also negative 2.7% for the second quarter this year.

現在我想向您介紹一下我們 2020 年第三季度的詳細財務業績。第三季度總收入為人民幣 20 億元，比 2019 年同期的人民幣 4.5 億元增長了 343%。並且增加了較今年第二季度的 5.91 億元人民幣增長 237%。第三季度汽車銷售收入為人民幣19億元，較2019年同期的人民幣3.99億元增長376%，較今年第二季度的人民幣5.41億元增長251%。同比和環比增長的主要原因是自今年 6 月下旬我們開始大規模交付以來，P7 的交付速度加快。第三季度毛利率為 4.6%，去年同期為負 10.1%，今年第二季度為負 2.7%。

Vehicle margin was 3.2% for the third quarter compared to negative 10.8% for the same period a year ago and negative 5.6% for the second quarter this year. The increase was primarily due to better product mix, decrease in material cost and improvement in our manufacturing efficiency. Research and development expenses were RMB 635 million for the third quarter, representing an increase of 46% from RMB 435 million for the same period in 2019 and an increase of 99% from RMB 320 million for the second quarter this year. The year-over-year and quarter-over-quarter increases were mainly due to a significant amount of share-based compensation expense recognized related to the share-based awards we granted to our employees with a performance condition of an IPO. If we exclude these share-based compensation expense, number one, our research development expense will be a decreased year-over-year primarily because we incur significant amount of expense relating to the development of the P7 in the same period last year. And number 2, the research and development expense will increase quarter-over-quarter due to increase of design and development expense relating to the new product, which will be launched next year.

第三季度汽車利潤率為 3.2%，而去年同期為負 10.8%，今年第二季度為負 5.6%。這一增長主要是由於更好的產品組合、材料成本的降低以及我們製造效率的提高。第三季度研發費用為人民幣6.35億元，較2019年同期的人民幣4.35億元增長46%，較今年第二季度的人民幣3.2億元增長99%。同比和環比增長主要是由於確認了與我們授予具有 IPO 業績條件的員工的股份獎勵相關的大量股份補償費用。如果我們排除這些基於股份的補償費用，第一，我們的研發費用將同比減少，主要是因為我們在去年同期發生了與 P7 開發相關的大量費用。第二，由於與明年推出的新產品相關的設計和開發費用增加，研發費用將環比增加。

Selling, general and administrative expense were RMB 1.2 billion for the third quarter, representing an increase of 321% from RMB 286 million for the same period last year and an increase of 152% from RMB 477 million for the second quarter of 2020. The year-over-year and the quarter-over-quarter increase were mainly due to the share-based compensation expense recognized for the reason mentioned above. Excluding the share-based compensation expense, the increase mainly resulted from higher marketing and promotional spending to support the minimum vehicle sales. Loss from operations was RMB 1.7 billion for the third quarter compared with RMB 761 million for the same period last year and RMB 779 million for the second quarter of 2020. Excluding the share-based compensation expense, the non-GAAP adjusted loss from operations was RMB 823 million in the third quarter compared with RMB 761 million for the same period last year and also compared with RMB 779 million for the second quarter this year.

第三季度銷售、一般和管理費用為人民幣 12 億元，比去年同期的人民幣 2.86 億元增長 321%，比 2020 年第二季度的人民幣 4.77 億元增長 152%。 -同比和環比增長主要是由於基於上述原因確認的股權激勵費用。不包括基於股份的補償費用，增加的主要原因是為支持最低車輛銷售而增加的營銷和促銷支出。第三季度運營虧損為人民幣 17 億元，去年同期為人民幣 7.61 億元，2020 年第二季度為人民幣 7.79 億元。扣除股權激勵費用後，非美國通用會計準則調整後的運營虧損為第三季度為人民幣 8.23 億元，去年同期為人民幣 7.61 億元，今年第二季度為人民幣 7.79 億元。

Net loss was RMB 1.1 billion for the third quarter compared with RMB 776 million for the same period in 2019 and RMB 146 million for the second quarter of 2020. Excluding the share-based compensation expense and fair value change on derivative liabilities related to the redemption right of the preferred share, the non-GAAP adjusted net loss was RMB 5 million in the third quarter compared with RMB 751 million for the same period of 2019 and also compared to RMB 770 million for the second quarter this year. Net loss attributable to ordinary shareholders of [shorten] was RMB 2.0 billion for the third quarter compared with RMB 982 million for the same period in 2019 and also compared with RMB 1.1 billion in the second quarter this year.

第三季度淨虧損為人民幣 11 億元，而 2019 年同期為人民幣 7.76 億元，2020 年第二季度為人民幣 1.46 億元。不包括與贖回相關的股權補償費用和衍生負債的公允價值變動優先股權益方面，第三季度非美國通用會計準則調整後淨虧損為人民幣 500 萬元，而 2019 年同期為人民幣 7.51 億元，今年第二季度為人民幣 7.70 億元。第三季度歸屬於[shorten]普通股股東的淨虧損為人民幣20億元，而2019年同期為人民幣9.82億元，今年第二季度為人民幣11億元。

Fair value change on derivative liabilities related to the redemption drive of preferred share and accretion of preferred share to redemption value for noncash events, which will no longer recur after IPO. Excluding the share-based compensation expense, the fair value change on derivative liabilities related to the redemption right of the preferred share and accretion of preferred share to the redemption value, the non-GAAP adjusted net loss attributable to ordinary shareholders of XPeng, Inc. was RMB 865 million for the third quarter compared with RMB 751 million for the same period a year ago and also compared to RMB 770 million for the second quarter this year.

與優先股贖回驅動和優先股增加到非現金事件的贖回價值相關的衍生負債的公允價值變動，在 IPO 後將不再發生。剔除股權激勵費用、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對贖回價值的增加、非美國通用會計準則調整後歸屬於小鵬汽車普通股股東的淨虧損。第三季度為人民幣 8.65 億元，去年同期為人民幣 7.51 億元，今年第二季度為人民幣 7.7 億元。

Basic and diluted net loss per ADS were both RMB 5.07 for the third quarter of 2020. Non-GAAP basic and diluted net loss per ADS were both RMB 2.16 for the third quarter of 2020. Each ADS represents 2 Class A ordinary shares.

2020 年第三季度每股 ADS 基本和稀釋淨虧損均為 5.07 元人民幣。2020 年第三季度非美國通用會計準則每股 ADS 基本和稀釋淨虧損均為 2.16 元人民幣。每股 ADS 代表 2 股 A 類普通股。

Now turning to our balance sheet. At the end of September 2020, the company had cash, cash equivalents, restricted cash and short-term investment of [RMB 20 billion] compared with RMB 2.8 billion at the end of last year. The increase was primarily due to the net proceeds we received from company initial public offering in August this year and also the Series C Plus financing.

現在轉向我們的資產負債表。截至2020年9月末，公司持有現金、現金等價物、受限制現金和短期投資[人民幣200億元]，上年末為人民幣28億元。增加的主要原因是我們今年 8 月從公司首次公開募股中獲得的淨收益以及 C 系列融資。

Now for our guidance. As Xiaopeng mentioned earlier, for the first quarter of 2020, we currently expect the delivery of vehicles will be approximately 10,000 units, representing a year-over-year increase of about 211%. We also expect the total revenue for the fourth quarter of 2020 will be approximately RMB 2.2 billion, representing an increase in year-over-year increase of about 244%. The forecast reflects the company's preliminary estimates of market, operating conditions and customer demand, which are all subject to change. This concludes our prepared remarks. We will now open the call to questions. Operator, please go ahead.

現在為我們的指導。剛才小鵬提到，2020年第一季度，我們目前預計車輛交付量約為1萬輛，同比增長約211%。我們還預計 2020 年第四季度的總收入約為人民幣 22 億元，同比增長約 244%。該預測反映了公司對市場、經營狀況和客戶需求的初步估計，這些都可能發生變化。我們準備好的發言到此結束。我們現在將開始提問。接線員，請繼續。

(Operator Instructions) Your first question comes from the line of Bin Wang from Crédit Suisse.

（操作員說明）您的第一個問題來自瑞士信貸銀行的王斌。

(foreign language)

（外語）

Okay. Actually, my question is about time of capability. After you launched the NGP and memory parking in the first quarter next year, what be the next big step in the second half 2021 or 2022?

好的。實際上，我的問題是關於能力的時間。明年第一季度推出NGP和內存停車後，2021年下半年或2022年下半年的下一步是什麼？

[Interpreted]

[解讀]

So thank you for your question. Actually, after launching NGP and the memory parking next year, we have several big moves that we're going to launch in the coming future. Those are based on XPILOT 3.0. And first thing is the memory parking within a parking lot, which means that when your car arrives the parking lot, it will automatically take you to the available spots for parking.

謝謝你的問題。實際上，明年推出NGP和內存停車後，我們有幾項大動作將在未來推出。這些基於 XPILOT 3.0。首先是停車場內的記憶停車，這意味著當你的車到達停車場時，它會自動帶你到可用的停車位。

Now the second big launch will be for major cities. First tier and second-tier cities during the peak rush hours in the morning and in the evening, and that is called the autonomous following. So the autonomous driving technology will allow your car to follow closely to the vehicles before you to make sure that you are not behind.

現在，第二次大型發布將針對主要城市。一二線城市早晚高峰時段，這叫自主跟風。所以自動駕駛技術會讓你的車緊跟在你前面的車輛，確保你不落後。

Coming on, we also will launch an identification feature of traffic light within Chinese City Roads and also an upgrade version of the NGP functions that allows us to transfer from highway scenarios to city roads. Coming up, we also have more autonomous features that will allow us to be more advanced in terms of the autonomous driving technology in China.

接下來，我們還將推出中國城市道路紅綠燈識別功能，以及NGP功能的升級版，讓我們可以從高速公路場景轉移到城市道路場景。未來，我們還會有更多的自主功能，這將使我們在中國的自動駕駛技術方面更加先進。

Can I have a question about the network expansion plan? What's your number, can you guide in the end of this year and 2021? And what's the breakdown between the self-owned and third party?

我可以詢問有關網絡擴展計劃的問題嗎？你的號碼是多少，你能在今年年底和2021年指導嗎？自有和第三方之間的細分是什麼？

(foreign language)

（外語）

[Interpreted]

[解讀]

So I'll take these questions. By end of the year, we forecast that we'll have 150 stores covering 72 cities. And by end of this year, we will have 68 service centers.

所以我會回答這些問題。到今年年底，我們預計我們將擁有 150 家門店，覆蓋 72 個城市。到今年年底，我們將擁有 68 個服務中心。

(foreign language)

（外語）

[Interpreted]

[解讀]

For the guidance for next year, we are still in the process of making the guidance. So we'll give you updates as we have them.

對於明年的指導意見，我們還在製定指導意見的過程中。因此，我們會及時為您提供更新。

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

我們的下一個問題來自美國銀行的 Ming Lee。

[Interpreted]

[解讀]

And my question is regarding our sales store expansion strategy in Guangzhou province and also outside Guangzhou province, especially nowadays our store expansion is very aggressive. And I also want to know at what's your long-term expectation regarding your sales breakdown between Tier 1 cities and low tier cities?

我的問題是關於我們在廣州省和廣州省以外的銷售門店擴張戰略，尤其是現在我們的門店擴張非常積極。我還想知道您對一線城市和低線城市的銷售細分的長期預期是什麼？

[Interpreted]

[解讀]

Because Xpeng is headquartered in Guangzhou, that's why a lot of people believe that we are mainly focused of our sales in Guangdong. However, we have recognized that the situation, and we are quickly expanding other first tier cities such as Beijing and Shanghai also to other tier cities, second-tier and third tier cities. And that is part of our strategic road map of expansion in the future. And this year, we are doing a lot better in terms of sales performance in other provinces outside of Guangdong.

因為小鵬汽車總部在廣州，所以很多人認為我們主要在廣東銷售。但是，我們已經認識到這個情況，我們正在迅速將業務擴展到北京和上海等其他一線城市，也擴展到其他一線城市、二線和三線城市。這是我們未來擴張戰略路線圖的一部分。今年，我們在廣東以外其他省份的銷售業績方面做得更好。

So our next step for us is to continue on improving and producing a product quality and through our marketing and our marketing and sales will be able to reach more -- a greater extent, a greater -- higher level -- higher quantity of users. And outside of Guangdong, we are quickly expanding to first tier cities, second-tier cities and third tier cities to our expansion of stores number, service centers numbers and our supercharging network. And those are -- those will remain part of our priorities in the coming quarter and next year.

因此，我們的下一步是繼續提高和生產產品質量，並通過我們的營銷和我們的營銷和銷售將能夠達到更多 - 更大範圍，更大 - 更高水平 - 更高數量的用戶。在廣東以外，我們正在迅速擴展到一線城市、二線城市和三線城市，以擴大我們的門店數量、服務中心數量和我們的增壓網絡。這些是 - 這些仍將是我們下一季度和明年的優先事項的一部分。

And after IPO, we'll be able to reorganize our company in a systematic manner and make our procedures production more efficient, and those will be reflected in our sales performance in the coming quarters.

上市後，我們將能夠系統地重組我們的公司，使我們的程序生產更有效率，這些將反映在我們未來幾個季度的銷售業績中。

Your next question comes from the line of Jeff Chung from Citigroup.

你的下一個問題來自花旗集團的 Jeff Chung。

So I got 3 questions. My first 2 question is the battery bottleneck issue. So how do we have a battery bottleneck supply issue? And how do you see this improve going forward? And my second question is about the same-store sales growth between the new store and the old store. So could you give us a breakdown in the third quarter on the total sales volume from new stores and old stores before June and after June opening? And then also, what is that ratio into October?

所以我有3個問題。我的第一個 2 個問題是電池瓶頸問題。那麼我們如何解決電池瓶頸供應問題呢？您如何看待這種情況的改善？我的第二個問題是關於新店和老店之間的同店銷售增長。那麼請問三季度新店和老店6月開店前和6月開店後的總銷量能不能給我們一個明細？然後，到 10 月份的比率是多少？

[Interpreted]

[解讀]

Thank you for your question. Regarding your first question about the battery the bottleneck. I think after pandemic, the new vehicle -- new energy vehicle industry is on the rise. Also, in the European market, we see sales recovery in terms of the whole European market. Also, since end of last year and earlier this year as a result of the pandemic, a lot of the battery makers are doing their best to expand their capacity of production. And so right now we are encountering a very temporary supply bottleneck in terms of battery supplies.

謝謝你的問題。關於您關於電池瓶頸的第一個問題。我覺得疫情過後，新的汽車——新能源汽車行業正在興起。此外，在歐洲市場，我們看到整個歐洲市場的銷售復甦。此外，自去年年底和今年年初以來，由於大流行，許多電池製造商都在竭盡全力擴大生產能力。所以現在我們在電池供應方面遇到了一個非常暫時的供應瓶頸。

And lately, we are indeed restricted in terms of production as a result of the battery supply bottleneck. However, in the future, with our active very proactive communication with all the battery makers and our good relationship with -- a good partnership with the battery makers and with better planning coming forward in terms of production, I believe we can resolve this bottleneck in a very quickly manner. And in the coming 6 months to 12 months, a lot of people have apprehensions about this battery supply and thinking that we are facing a risk of shortage in supply. However, I disagree with that. I'm actually very confident in the battery supply because a lot of the battery makers are now preparing very actively in their production capacity. And I believe, as a result of the fierce competition amongst these battery makers, we'll be able to benefit from it in terms of supply.

最近，由於電池供應瓶頸，我們確實在生產方面受到限制。然而，在未來，通過我們與所有電池製造商的積極溝通以及我們與電池製造商的良好合作關係以及在生產方面的更好規劃，我相信我們可以解決這個瓶頸很快地。在接下來的 6 個月到 12 個月裡，很多人對這種電池供應感到擔憂，認為我們面臨著供應短缺的風險。但是，我不同意這一點。我實際上對電池供應很有信心，因為現在很多電池製造商都在非常積極地準備產能。而且我相信，由於這些電池製造商之間的激烈競爭，我們將能夠在供應方面從中受益。

Regarding your second question about the breakdown on Q3 sales. Actually, I would like to give you a little bit of context. All of our sales are made after our customers signed -- all of the vehicles are produced after the customers sign the agreement or the sales contract. So basically all of the numbers -- all of the deliveries that you saw in Q3 are the result of the previous contract that we signed about a month or 2.5 months ago.

關於你關於第三季度銷售細目的第二個問題。實際上，我想給你一些背景信息。我們所有的銷售都是在我們的客戶簽署之後進行的——所有的車輛都是在客戶簽署協議或銷售合同之後生產的。所以基本上所有的數字——你在第三季度看到的所有交付都是我們大約一個月或 2.5 個月前簽署的上一份合同的結果。

And from our development, actually, we observed something interesting. We used to think that it usually takes maybe 6 months for a new store to mature, but now we realize that it's actually much, much quicker.

實際上，從我們的發展中，我們觀察到了一些有趣的事情。我們過去認為，一家新店通常需要 6 個月才能成熟，但現在我們意識到它實際上要快得多。

And as we develop more self-owned factories of production as we solve the battery supply [problems] and optimization in that area, we believe from Q4 forward, we'll be able to achieve an even higher efficiency in our product deliveries.

隨著我們在解決電池供應 [問題] 和優化該領域的過程中開發更多自有生產工廠，我們相信從第四季度開始，我們將能夠在產品交付方面實現更高的效率。

So Jeff, this is Brian. Let me just add on this point on the battery situation. It is not a bottleneck in a way that we don't have sort of access to the battery capacity. It is actually when you have certain jump in demand, in the short term, you need to revise up your production, it will actually be very difficult. But at given time, I think the capacity issue will be digested very quickly. So I just want to give you this context. It's not like we don't have access. Just like if -- you don't have the flexibility to really change capacity dramatically in the near term.

傑夫，這是布萊恩。讓我補充一下關於電池情況的這一點。在某種程度上，我們無法訪問電池容量並不是瓶頸。其實就是當你的需求有一定的跳躍的時候，短期內，你要提高你的產量，其實是非常困難的。但在給定的時間，我認為產能問題會很快得到消化。所以我只想給你這個背景。這不像我們沒有訪問權限。就像如果 - 你沒有在短期內真正顯著改變容量的靈活性。

Yes. So my question is about the software income. So how is our accounting treatment on the software income into 2021? And how do we transfer the pent-up revenue from the software income into [2021]? And then if this pent-up revenue overlap with the new software revenue income in the first half next year. So would that be an inflection point to see massive increase in the revenue and net profit going forward?

是的。所以我的問題是關於軟件收入。那麼我們如何對 2021 年的軟件收入進行會計處理？我們如何將軟件收入中被壓抑的收入轉移到[2021]？然後如果這個被壓抑的收入與明年上半年新的軟件收入收入重疊。那麼，這會是未來收入和淨利潤大幅增長的轉折點嗎？

Jeff, this is Dennis. Let me answer your question. Yes, so far, we have received some orders for example, the hardware vehicle has facility or equipment to support the autonomous driving on the 3.0. We do see some orders, the payment of the software. But that's our kind of prepaid customer -- prepaid money. That's not in our revenue. We need to wait until we OTA the functionality, then we can book that into our revenue. And the plan is to book loss into [real] revenue starting from next year. And we actually -- we have, for example, as of today, we have about 40% of our customer, they pick up the hardware and among the hardware they have about 60% to 70% of customer, they buy the software. So this will translate a significant amount of the software revenue starting from next year. But I need to clarify, so far, we have XPILOT 2.5 and 3.0. The 2.5 in is free of charge. We only charge customer with the 3.0 -- the Autonomous driving 3.0. And going forward, in all 4 models, we will have more modernization of the software. For example, we may upgrade to 3.5 or even 4.0. The software package. At that time, we probably will evaluate pricing, maybe we'll increase the software revenue but all in all, the revenue -- the software revenue will be a kind of a considerable portion of our overall revenue going forward.

傑夫，這是丹尼斯。讓我回答你的問題。是的，到目前為止，我們已經接到了一些訂單，比如硬件車輛有設施或設備來支持3.0的自動駕駛。我們確實看到了一些訂單，軟件的付款。但這是我們的預付費客戶——預付費用。那不在我們的收入中。我們需要等到我們對功能進行 OTA，然後我們才能將其計入我們的收入。計劃是從明年開始將虧損記入 [實際] 收入。事實上，我們有，例如，截至今天，我們有大約 40% 的客戶，他們選擇硬件，在硬件中，他們有大約 60% 到 70% 的客戶，他們購買軟件。因此，從明年開始，這將轉化為大量的軟件收入。但我需要澄清一下，到目前為止，我們有 XPILOT 2.5 和 3.0。 2.5 英寸是免費的。我們只向客戶收取 3.0——自動駕駛 3.0。展望未來，在所有 4 款車型中，我們將擁有更多的軟件現代化。比如我們可能會升級到3.5甚至4.0。軟件包。那時，我們可能會評估定價，也許我們會增加軟件收入，但總而言之，軟件收入將占我們未來總收入的相當大一部分。

Your next question comes from the line of Paul Gong from UBS.

你的下一個問題來自瑞銀的 Paul Gong。

[Interpreted]

[解讀]

So my first question is regarding the gross margin. Is it right that Q3 GP margin improvement is mainly a result of the broader mix where P7 GP margin is significantly higher than P3? Is P3 is still in negative gross margins only in the Q3?

所以我的第一個問題是關於毛利率。 Q3 GP 利潤率的改善主要是由於 P7 GP 利潤率明顯高於 P3 的更廣泛組合的結果，這對嗎？難道P3只在Q3還在負毛利率？

So my second question is regarding the actual pricing of XPILOT 3.0. My understanding, if I recall correctly, that is priced at RMB 30,000. Is that -- how do we think about the split between the hardware cost coverage versus software revenue? And how do we foresee the hardware cost going forward?

所以我的第二個問題是關於 XPILOT 3.0 的實際定價。我的理解，如果我沒記錯的話，那是3萬元人民幣的售價。那是——我們如何考慮硬件成本覆蓋與軟件收入之間的分配？我們如何預測未來的硬件成本？

Okay. Let me handle the margin question. Yes, we have the quarter-over-quarter margin improvement. The major contributor is from the better product mix, which means more P7 in the third quarter compared with the second quarter only minimum volume. And then we have the reduction in mature cost including the battery and non battery material cost reduction. And we also have manufacturing efficiency improvement due to the scale -- the economy of scale. We don't disclose individual margin, but we are seeing improvement on both models. We don't disclose individual model, but the overall -- both models margin are improving. So that's the first one.

好的。讓我來處理保證金問題。是的，我們的利潤率環比有所提高。主要貢獻來自於更好的產品組合，這意味著第三季度更多的 P7 與第二季度相比只有最小量。然後我們降低了成熟成本，包括電池和非電池材料成本的降低。而且由於規模 - 規模經濟，我們還提高了製造效率。我們不透露個人利潤率，但我們看到兩種模型都有所改善。我們不透露個別型號，但整體 - 兩種型號的利潤率都在提高。所以這是第一個。

And then a second one on the autopilot. So far, we charge customer with one-off RMB 20,000 for the XPILOT 3.0. One-off. If customer chooses to pay that in installments, they will need to pay RMB 12,000 a year for 3 years, then they can get their life time the kind of service. We are seeing opportunity on the hardware because of the technology improvement and also the more volume, more scale. So both hardware and software will have the efficiency in terms of the cost and that will further improve the margin for the software as well as the vehicle margin going forward.

然後是自動駕駛儀上的第二個。至此，我們為XPILOT 3.0向客戶一次性收取20,000元人民幣。一次性。如果客戶選擇分期付款，則需要每年支付12,000元，共支付3年，即可享受終身服務。由於技術的改進以及更大的體積，更大的規模，我們在硬件上看到了機會。因此，硬件和軟件都將在成本方面具有效率，這將進一步提高軟件的利潤率以及未來的車輛利潤率。

Yes, Paul, you're right. I mean, I think our hardware on the XPILOT 3.0 has more expensive than the version that has only the XPILOT 2.5. And also the price difference covers the hardware costs as well as having some margin there as well. And we expect the cost of those hardware continue to go down as we produce more and more of these XPILOT 3.0 equipped vehicles.

是的，保羅，你是對的。我的意思是，我認為我們的 XPILOT 3.0 硬件比只有 XPILOT 2.5 的版本更貴。而且價格差異還包括硬件成本以及那裡的一些利潤。隨著我們生產越來越多配備 XPILOT 3.0 的車輛，我們預計這些硬件的成本會繼續下降。

Our next question comes from the line of Ji LU from Bank of China.

我們的下一個問題來自中國銀行的魯季。

[Interpreted]

[解讀]

Management. I have a question in terms of our sales distribution. Different from other 2 peers, we have the sales modes of [self-built] and dealership. And how do we compare these 2 modes in terms of marketing efficiency and customer experience? And could you give us the breakdown of these two modes and what our plan in future?

管理。我對我們的銷售分佈有疑問。不同於其他2家同行，我們有【自建】和代銷兩種銷售模式。以及我們如何比較這兩種模式在營銷效率和客戶體驗方面的差異？您能否給我們介紹一下這兩種模式的細分以及我們未來的計劃？

[Interpreted]

[解讀]

Currently, we have 116 sales points -- sale stores. Amongst them 46 are self-owned, 70 are partners with other dealership or franchise stores. Now in my understanding, as we begin to build a brand, it is more efficient to have your own self-owned stores so that you can educate the market and do more branding in terms of your development. And as you mature, as the brands get more and more well-known in the market, it is more efficient to have partnerships with other dealerships so that you can have a high-efficiency in generating sales. And right now, we believe that both of those channels are very important in contributing to our sales. And so in the future, we are going to set up different kind of stores according to the location according to the type of cities that we are in.

目前，我們擁有116個銷售點——銷售店。其中自有46家，與其他經銷或加盟店合作70家。現在我的理解是，當我們開始建立品牌時，擁有自己的自營店會更有效率，這樣您可以教育市場並在您的發展方面做更多的品牌推廣。隨著您的成熟，隨著品牌在市場上越來越知名，與其他經銷商建立合作夥伴關係會更有效率，這樣您就可以高效地產生銷售。現在，我們相信這兩個渠道對我們的銷售貢獻非常重要。所以在未來，我們將根據我們所在的城市類型，根據位置開設不同類型的商店。

[Interpreted]

[解讀]

Can I explain this by this way that in Tier 1 cities, in Tier 1 city, we will have development more -- depends on our own self [built] stores and in low-tier city, we will use dealerships. And with the expansion of our brand names, and we will use more in [self built].

我可以這樣解釋嗎，在一線城市，在一線城市，我們會有更多的發展——取決於我們自己[建設]的商店，在低線城市，我們將使用經銷商。隨著我們品牌名稱的擴展，我們將更多地使用 [self built]。

[Interpreted]

[解讀]

So as I mentioned before, we have to take in take into consideration many different elements, for example, the brand awareness, the acceptance level of new energy vehicles of the market and of our customers. So right now, we don't have any preference over which kind of stores that we are setting up for first tier cities or to third tier cities. It all depends on specific situations.

所以就像我之前提到的，我們必須考慮很多不同的因素，例如品牌知名度，市場和客戶對新能源汽車的接受程度。所以現在，我們對我們在一線城市或三線城市開設哪種商店沒有任何偏好。這一切都取決於具體情況。

[Interpreted]

[解讀]

I have [seen not that.] So SG&A expenses in Q3 surged substantially. Could you give us some reasons about the increase in SG&A expenses and the guidance in future for SG&A.

我 [沒看到] 所以第三季度的 SG&A 費用大幅飆升。您能否給我們一些關於 SG&A 費用增加的原因以及 SG&A 未來的指導。

Okay.

好的。

[Interpreted]

[解讀]

I use English. Yes, we have the quarter-over-quarter increase in SG&A and the increase is primarily for the branding spending, the channel expansion, channel development and also kind of advertisement to supporting wholesales. That is the primary higher spending on the SG&A. And going forward, as you are aware, we are still in the in kind of in the middle or in early phase in terms of channel development to build more strength in our brand to support higher volume target next year. So we foresee the marketing and sales expense will continue to maintain at this kind of level or slightly increase in the near future. We -- at the same time, we will also to manage other, for example, for some spending, we don't need to grow in line with (inaudible), we will definitely control that. But for some spending, that is to investment for future. We will continue to spend a little bit money on that area to support our future growth.

我用英文。是的，我們的 SG&A 環比增長，增長主要用於品牌支出、渠道擴張、渠道開發以及支持批發的廣告。這是 SG&A 的主要支出增加。展望未來，正如您所知，我們在渠道開發方面仍處於中期或早期階段，以增強我們品牌的實力，以支持明年更高的銷量目標。因此，我們預計營銷和銷售費用在不久的將來將繼續維持在這種水平或略有增加。我們—與此同時，我們還將管理其他支出，例如，對於某些支出，我們不需要根據（聽不清）增長，我們一定會控制它。但是對於一些支出，那就是對未來的投資。我們將繼續在該領域投入少量資金，以支持我們未來的發展。

Your next question comes from the line of Nick Lai from JPMorgan.

你的下一個問題來自摩根大通的 Nick Lai。

[Interpreted]

[解讀]

So okay, let me translate my question in English. The first question is the level of backlog order. And currently, you have waiting 10 of about 4 to 5 weeks. And what's our strategy to shorten that waiting time? And the second question is really regards to the new factory in [Guangdong.] And what is the capacity and the CapEx? Can we give us -- can management give us some guidance?

好吧，讓我用英語翻譯我的問題。第一個問題是積壓訂單的水平。目前，您需要等待大約 4 到 5 周中的 10 週。我們縮短等待時間的策略是什麼？第二個問題真的是關於 [廣東] 的新工廠。產能和資本支出是多少？我們能給我們——管理層能給我們一些指導嗎？

So Nick, first of all, we -- as you probably heard during our IPO process, we don't disclose backlog information as a policy. But I think in terms of the wait time, actually, it depends on the specific model you are ordering. My understanding is that 4 weeks to 6 weeks are the standard sort of delivery time these days for our P7 but we're actually trying very hard to shorten that delivery time because I think, obviously, that will improve user experience, our customer satisfaction. We actually are stepping up our production as we speak. Also, at the same time, we're reducing the time lag in terms of transportation and logistics as well as delivery cycle. So I think hopefully, we can actually control the delivery time to shorten that within the 4 weeks as we think.

所以尼克，首先，我們 - 正如您在我們的 IPO 過程中可能聽到的那樣，我們不會將積壓信息作為一項政策進行披露。但我認為就等待時間而言，實際上，這取決於您訂購的具體型號。我的理解是，4 周到 6 周是目前我們 P7 的標準交付時間，但我們實際上正在非常努力地縮短交付時間，因為我認為，顯然，這將改善用戶體驗和我們的客戶滿意度。正如我們所說的，我們實際上正在加緊生產。此外，與此同時，我們正在減少運輸和物流方面的時間滯後以及交貨週期。所以我希望，我們可以實際控制交貨時間，將其縮短到我們認為的 4 週內。

[Interpreted]

[解讀]

So let me just add to that. Actually for some hot models, we're going to do really short time or a quick preproduction of those models to increase -- to shorten the wait time and also through our optimization of our delivery procedures of process, we believe in the coming quarters or 2, we will be able to greatly shorten the wait time.

所以讓我補充一點。實際上，對於一些熱門模型，我們將在很短的時間內或快速預生產這些模型，以增加——縮短等待時間，並通過優化我們的流程交付程序，我們相信在未來幾個季度或2、我們將可以大大縮短等待時間。

Yes. And your question on Guangzhou plant. Right now, the design capacity for the second plant, we are planning to have 100,000 annual production. In terms of the cost of building that, we estimate this to be close to RMB 3 billion in terms of total costs, including the equipment. And the -- obviously, as you heard from our previous announcement that the government supported financing package is more than enough to cover the construction and equipment cost of that plant expansion. In terms of your question on [HIMA] relationship, our counter manufacturing agreement with HIMA will end by the end of next year. We're obviously maintaining a very frequent and dialogue with HIMA as to how to best optimize that relationship. So if there's any decision or conclusion, we'll obviously disclose to the public.

是的。還有你關於廣州工廠的問題。目前，二廠的設計產能，我們計劃年產10萬台。就建設成本而言，我們估計這包括設備在內的總成本接近人民幣 30 億元。而且 - 顯然，正如您從我們之前的公告中聽到的那樣，政府支持的融資方案足以支付該工廠擴建的建設和設備成本。關於你關於 [HIMA] 關係的問題，我們與 HIMA 的反製造協議將在明年年底結束。顯然，我們與 HIMA 就如何最好地優化這種關係進行了非常頻繁的對話。因此，如果有任何決定或結論，我們顯然會向公眾披露。

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

由於現在沒有進一步的問題，我想將電話轉回給公司以作結束語。

Thank you once again for joining us today. If you have further questions, please feel free to contact XPeng's Investor Relations through the contact information provided on our website or the TPG Investor Relations. Thank you.

再次感謝您今天加入我們。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。謝謝你。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。

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

[此抄本中標記為已翻譯的部分是由現場通話中的口譯員說的。]