Xpeng Inc (XPEV) 2022 Q1 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for the First Quarter 2022 Earnings Conference Call for XPeng Inc. (Operator Instructions) Today's conference call is being recorded.

你好，女士們，先生們。感謝您等待小鵬汽車 2022 年第一季度收益電話會議（操作員說明） 今天的電話會議正在錄音中。

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

我現在將把電話轉給您的主持人，[Mr. Alex Sy]，該公司投資者關係主管。請繼續，亞歷克斯。

Thank you. Hello, everyone, and welcome to XPeng's First Quarter 2022 Earnings Conference Call. Our financial and operating results were issued via newswire 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.

謝謝你。大家好，歡迎來到小鵬汽車2022年第一季度財報電話會議。我們的財務和經營業績今天早些時候通過新聞專線服務發布，並可在線獲取。您還可以通過訪問我們網站 ir.xiaopeng.com 的 IR 部分查看收益新聞稿。

Participants on today's call from our management will include Co-Founder, Chairman and CEO, Mr. He Xiaopeng; Vice Chairman and President, Dr. Brian Gu; Vice President of Finance, Mr. Dennis Lu; Vice President of Corporate Finance and Investment, Mr. Charles Zhang; and myself. Management will begin with prepared remarks, and the call will conclude with a Q&A session. A webcast replay of this conference call will be available on the IR section of our website.

我們管理層今天電話會議的參與者將包括聯合創始人、董事長兼首席執行官何小鵬先生；副主席兼總裁顧博士；財務副總裁Dennis Lu先生；企業融資與投資副總裁張朝陽先生；和我自己。管理層將從準備好的評論開始，電話會議將以問答環節結束。本次電話會議的網絡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 filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required under the applicable law.

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風險和不確定性。因此，該公司的結果可能與今天表達的觀點存在重大差異。有關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。除適用法律要求外，公司不承擔更新任何前瞻性陳述的任何義務。

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

另請注意，小鵬的收益新聞稿和本次電話會議包括披露未經審計的財務指標以及未經審計的非公認會計準則財務指標。小鵬汽車的收益新聞稿包含未經審計的非公認會計原則財務指標與未經審計的公認會計原則指標的對賬。

I will now turn the call over to our Co-Founder, Gentleman and CEO, Mr. He Xiaopeng. Please go ahead.

我現在將把電話轉給我們的聯合創始人、紳士兼首席執行官何小鵬先生。請繼續。

[Interpreted] Hi, everyone. In the first quarter of 2022, XPeng delivered 34,561 vehicles, representing 159% year-over-year growth. We continue to rank #1 among emerging EV makers in China as measured by vehicle insurance registration volume. Notably, our monthly deliveries once again exceeded 15,000 units in March, demonstrating a return to the same robust level as the peak season last year despite the impact of the COVID-19.

[解釋] 大家好。 2022年一季度，小鵬汽車交付34,561輛，同比增長159%。按車輛保險登記量衡量，我們繼續在中國新興電動汽車製造商中排名第一。值得注意的是，儘管受到 COVID-19 的影響，我們的月度交付量在 3 月再次超過 15,000 台，顯示恢復到與去年旺季相同的強勁水平。

Heading into 2022, our products and technologies' competitive edge as well as our brand awareness continue to improve. The demand for our products was strong. In March, our monthly volume of new orders reached a new high. Meanwhile, our order backlog also hit historically high levels. From March 21, we raised the price across our models by RMB 10,000 to RMB 20,000 in order to cover the cost increase of batteries and raw materials and chips. Following the price increase, consumer demand for the mid- to high-end BEV segment has remained resilient. We expect our new orders in May, excluding some cities impacted by the COVID-19, will return to the levels before the rise in price.

進入 2022 年，我們的產品和技術的競爭優勢以及我們的品牌知名度不斷提高。對我們產品的需求強勁。 3月份，我們的月度新訂單量再創新高。同時，我們的訂單積壓也創歷史新高。從3月21日起，我們將所有車型的價格上調1萬元至2萬元，以彌補電池和原材料和芯片成本的上漲。隨著價格上漲，消費者對中高端 BEV 細分市場的需求保持彈性。我們預計 5 月份的新訂單（不包括受 COVID-19 影響的一些城市）將恢復到價格上漲之前的水平。

According to the data released on Chinese passenger vehicle insurance registrations, the BEV penetration rate in March reached over 24% and, in particular, exceeded 30% in Shenzhen and Shanghai. While the industry is changed under the current impact of COVID-19-related restrictions and raw material price surges, the long-term trend of increasing BEV adoption and the strong growth trajectory will continue. I believe our relentless efforts to advance our product's competitiveness, technological advancement, intelligent capabilities and quality in addition to the ever-growing brand awareness position us well as we work to gain market share in the mid- to high-end BEV market segment and pursue our strong growth strategy.

根據中國乘用車保險登記數據，3月份BEV滲透率達到24%以上，尤其是深圳和上海超過30%。儘管在當前與 COVID-19 相關的限制和原材料價格飆升的影響下，該行業發生了變化，但 BEV 採用率增加的長期趨勢和強勁的增長軌跡將繼續下去。我相信我們在提升產品競爭力、技術進步、智能能力和質量以及不斷增長的品牌知名度方面的不懈努力使我們能夠在中高端 BEV 細分市場獲得市場份額並追求我們強大的增長戰略。

Now turn to supply chain management, given the COVID-19 resurgence. Starting in early April, COVID-19 infection spiked in certain cities and the related lockdown policies have led to serious challenges to the auto supply chain. Based on our earlier judgment of the supply chain risk in 2022, we have stepped up our preparation for our supply chain and build inventory for some key components.

鑑於 COVID-19 死灰復燃，現在轉向供應鏈管理。從 4 月初開始，某些城市的 COVID-19 感染激增，相關的封鎖政策給汽車供應鏈帶來了嚴峻挑戰。基於之前對2022年供應鏈風險的判斷，我們加大了供應鏈的準備，對部分關鍵零部件進行了庫存建設。

During such challenging period, we heightened our focus on strengthening our core capabilities. We work to reinforce our supply chain system and R&D capability, advancing our core competencies to better position our company amid the ongoing challenges of industry-wide auto part shortage and cost inflation. For example, we have established partnerships with a number of industry-leading battery suppliers since 2021 in order to diversify our battery supply, which we are on track to accomplish such diversification in the second quarter of 2022. This will help reduce the risk of supply location and supplier concentration, serving to directly boost our future delivery efficiency, including from the second quarter of 2022 on and the burn cost optimization in the long run.

在這樣一個充滿挑戰的時期，我們更加專注於加強我們的核心能力。我們致力於加強我們的供應鏈體系和研發能力，提升我們的核心競爭力，以便在全行業汽車零部件短缺和成本上漲的持續挑戰中更好地定位我們的公司。例如，自 2021 年以來，我們與多家行業領先的電池供應商建立了合作夥伴關係，以實現電池供應的多元化，我們有望在 2022 年第二季度實現這種多元化。這將有助於降低供應風險位置和供應商集中度，有助於直接提高我們未來的交付效率，包括從 2022 年第二季度開始以及長期的燃燒成本優化。

The chip supply challenge may persist longer. In terms of our chip-related supply chain management, we have started to gradually develop our in-house R&D capabilities for our powerful embedded systems hardware and underlying software platform since 2015, and we expect to deploy such event platform in a broader scale across our new models from this year. Our pursuit of developing such technologies in-house enables us to quickly address the chip supply shortage and enhance verification, integration and implementation of alternative chips much more efficiently. It also provides a highly flexible infrastructure technology platform for us to tackle the semiconductor chip shortage challenges and strengthen our cost control capability.

芯片供應挑戰可能會持續更長時間。在我們的芯片相關供應鏈管理方面，我們從 2015 年開始逐步發展我們強大的嵌入式系統硬件和底層軟件平台的內部研發能力，我們預計將在更廣泛的範圍內部署此類事件平台。今年的新車型。我們對內部開發此類技術的追求使我們能夠快速解決芯片供應短缺問題，並更有效地加強替代芯片的驗證、集成和實施。它還為我們應對半導體芯片短缺的挑戰和加強我們的成本控制能力提供了一個高度靈活的基礎設施技術平台。

XPeng's manufacturing is mainly based in Guangdong. Thanks to the successful containment of the resurging COVID-19 outbreaks in the Guangdong province and government support from central and local authorities, the supply chain in key areas is gradually recovering. We have resumed double chip production at our Zhaoqing plant since mid-May and are making every endeavor to accelerate vehicle delivery to better serve our customers.

小鵬的製造主要集中在廣東。由於廣東省 COVID-19 疫情的成功遏制以及中央和地方當局的政府支持，重點地區的供應鏈正在逐步恢復。自 5 月中旬以來，我們肇慶工廠已恢復雙芯片生產，並正在盡一切努力加快車輛交付以更好地服務於我們的客戶。

I would also like to highlight that our long-term investment in smart EV technology supports our ability to build up customer trust and loyalty as well as distinctive smart technology brand equity. Our highly NGP mileage penetration rate in the first quarter was nearly 70%. And by the end of the first quarter, our highway NGP had assisted our customers in driving more -- driving for more than 24 million kilometers. These achievements will allow us to pave the way to make our next generation full scenario advance driver-assistance system available to a broader customer base.

我還想強調，我們對智能電動汽車技術的長期投資支持我們建立客戶信任和忠誠度以及獨特的智能技術品牌資產的能力。我們在第一季度的高 NGP 里程滲透率接近 70%。到第一季度末，我們的高速公路 NGP 已幫助我們的客戶駕駛更多——駕駛超過 2400 萬公里。這些成就將使我們能夠為更廣泛的客戶群提供下一代全場景高級駕駛輔助系統鋪平道路。

In February, we OTA released our LIDAR-enabled Valet Parking Assist function that offers automated parking across different floors in multi-storey parking lots, marking the industry's first mass-produced solution ever. In the near future, we plan to OTA release the industry's first mass-produced LIDAR-enabled adaptive cruise control and lane centering control function. It is built on augmented perception capabilities by adopting camera and LIDAR fusion, which enables better detection of drivable areas and surrounding traffic participants, making optimal decisions to ensure a safer and more comfortable driving experience.

2 月，我們 OTA 發布了支持 LIDAR 的代客泊車輔助功能，該功能可在多層停車場的不同樓層提供自動泊車，標誌著業界首個量產解決方案。在不久的將來，我們計劃OTA發佈業界首個量產的支持激光雷達的自適應巡航控制和車道居中控制功能。它通過採用攝像頭和激光雷達融合增強感知能力，可以更好地檢測可駕駛區域和周圍的交通參與者，做出最佳決策，以確保更安全、更舒適的駕駛體驗。

In mid-May, we successfully completed test of the latest engineering version of our city NGP in Guangzhou. Navigating through the very complex driving scenarios across a broader area of downtown Guangzhou, our city NGP demonstrated a smooth driving experience with high safety standards. We will continue to improve the customer experience of our city NGP through SaaS iteration of the software. As soon as we obtained the related approval for high-definition maps of city roads, we plan to launch the city NGP and progressively roll out to more cities.

5月中旬，我市NGP最新工程版在廣州順利完成測試。我們的城市 NGP 在廣州市中心更廣闊的區域內非常複雜的駕駛場景中導航，展示了高安全標準的平穩駕駛體驗。我們將通過軟件的SaaS迭代，不斷提升我市NGP的客戶體驗。一旦我們獲得城市道路高清地圖的相關批准，我們計劃啟動城市NGP，並逐步推廣到更多城市。

Once the city NGP is capable of handling end-to-end driving scenarios, we believe there will be a fundamental change to customers' driving experience, bringing it to a man machine copilot stage. Leveraging our proprietary technologies of highway NGP, VPA-L, LCC.L and city NGP, along with our unique closed loop of data capabilities, I'm confident that our next-generation advanced driving assistance system from G9 will be superior to solutions offered by our peers in terms of safety, performance, cost and generalization.

一旦城市 NGP 能夠處理端到端的駕駛場景，我們相信客戶的駕駛體驗將會發生根本性的變化，將其帶到人機副駕駛階段。利用我們在高速公路 NGP、VPA-L、LCC.L 和城市 NGP 的專有技術，以及我們獨特的數據閉環能力，我相信 G9 的下一代高級駕駛輔助系統將優於提供的解決方案在安全性、性能、成本和通用性方面受到同行的好評。

Our vision is to make the events driving the system available to a much broader customers. Ultimately transitioning to full autonomous driving will never simply stack up smart hardware components, we resolved to develop robust full scenario autonomous driving system with strong performance and a high level of safety at affordable cost, therefore, creating greater value for our customers and our company.

我們的願景是讓更廣泛的客戶可以使用驅動系統的活動。最終過渡到全自動駕駛絕不是簡單地堆疊智能硬件組件，我們決心以可承受的成本開發性能強大、安全性高的強大的全場景自動駕駛系統，從而為我們的客戶和我們的公司創造更大的價值。

With our in-house developed full stack software and core hardware at advanced level, our next step is to deeply integrate ADAS, smart cockpit, smart chassis, next-generation electronic and electric architecture and powertrain systems, lifting comprehensive capabilities of our future smart EV products while allowing us to provide brand-new smart product experience with lower cost.

自主研發先進水平的全棧軟件和核心硬件，下一步將深度整合ADAS、智能座艙、智能底盤、下一代電子電氣架構和動力總成系統，提升未來智能電動汽車的綜合能力產品，同時讓我們能夠以更低的成本提供全新的智能產品體驗。

On May 9, we made our XPILOT software as standard configuration on mid- and high-end versions of our existing EV models. This will allow us to accelerate the penetration of XPILOT software, strengthen our capabilities to provide innovative functions through cross-domain integration and make our XPILOT more affordable through economies of scale. With the upcoming mass adoption of our XPILOT as well as our advancement towards Level 4 autonomous driving technology in 2026, we believe more business models to monetize new software and new ecosystem will emerge.

5 月 9 日，我們將 XPILOT 軟件作為我們現有 EV 車型的中高端版本的標準配置。這將使我們能夠加速 XPILOT 軟件的滲透，加強我們通過跨域集成提供創新功能的能力，並通過規模經濟使我們的 XPILOT 更實惠。隨著我們即將大規模採用 XPILOT 以及我們在 2026 年向 4 級自動駕駛技術邁進，我們相信將出現更多通過新軟件和新生態系統獲利的商業模式。

Moving on to our product pipeline. Given the fact that the COVID situation is well contained in the Guangdong province, where our headquarters is located, the R&D of all new models is progressing well. In March, the P7 become the first BEV model among emerging Chinese EV makers to reach the benchmark production volume of 100,000 units. Meanwhile, its monthly delivery exceeded 9,000 units. The G9 is our flagship SUV model. We plan to officially launch G9 in the third quarter, followed by mass deliveries in the fourth quarter. The G9 is powered by industry-leading 800-volt high-voltage powertrain platform next-generation events driving assistance -- driver-assistance platform and electronic and electric architecture. We hope the G9 will become a benchmark model in its segment, both in comfort and luxury in addition to those industry-leading technologies. We also expect G9 to become a blockbuster model in the medium- to large-sized smart electric SUV market.

繼續我們的產品管道。鑑於我們總部所在的廣東省疫情得到很好的控制，所有新車型的研發進展順利。 3月，P7成為中國新興電動汽車製造商中首款達到10萬輛基準產量的BEV車型。同時，其月交付量超過9,000台。 G9 是我們的旗艦 SUV 車型。我們計劃在第三季度正式推出 G9，隨後在第四季度進行批量交付。 G9 搭載業界領先的 800 伏高壓動力總成平台下一代賽事駕駛輔助——駕駛輔助平台和電子電氣架構。我們希望 G9 將成為該細分市場的標杆車型，除了那些行業領先的技術外，還包括舒適性和豪華性。我們也預計 G9 將成為中大型智能電動 SUV 市場的重磅車型。

In 2023, we plan to introduce 2 new models. One is based on our new B class platform and the other is built on our new C Class platform. We expect these 2 new models to feature several industry-first technology innovations in addition to their superior design. In combination with the existing models, our product portfolio will strengthen our presence and leadership in each of the subsegment of RMB 150,000 to RMB 400,000 price range.

2023年，我們計劃推出2款新車型。一個基於我們新的 B 類平台，另一個基於我們新的 C 類平台。我們預計這兩款新型號除了其卓越的設計外，還將具有多項行業首創的技術創新。結合現有車型，我們的產品組合將加強我們在 150,000 元至 400,000 元價格區間的每個細分市場的影響力和領先地位。

In addition, the development of our flying vehicle is well on track with XPeng Aero HT, a portfolio company in our ecosystem. According to its latest product design, the 2-seat flying vehicle's core is still a car that mainly drive on the road, while users may conduct safe flights with vertical takeoff and landing when road conditions are open and appropriate. It will deliver a brand-new mobility experience for our customers from 2026 or in the near future in suburban areas of cities where people can actually experiment a new combination of mobility experience.

此外，我們的飛行器的開發與我們生態系統中的投資組合公司XPeng Aero HT進展順利。根據其最新的產品設計，2座飛行器的核心依然是一款主要在道路上行駛的汽車，而用戶可以在路況開闊、適宜的情況下進行垂直起降的安全飛行。它將在 2026 年或不久的將來在城市郊區為我們的客戶提供全新的移動體驗，在那里人們可以實際體驗移動體驗的新組合。

We'll focus on the platform-based architecture and apply modular design and next-gen manufacturing processes when defining our new models to allow more models to share the same powertrain platform, ADAS and electronic and electric architecture, et cetera. I believe drawing on the success of the P7, we'll be able to achieve structural gross margin improvement from the G9 and subsequent new models to be unveiled. Our medium- and long-term goal is to increase our company-level gross margin to above 25%.

在定義我們的新車型時，我們將專注於基於平台的架構，並應用模塊化設計和下一代製造工藝，以允許更多車型共享相同的動力總成平台、ADAS 和電子電氣架構等。我相信，憑藉 P7 的成功，我們將能夠從 G9 和隨後推出的新車型中實現結構性毛利率的提升。我們的中長期目標是將公司層面的毛利率提高到25%以上。

Now on the supercharging network front, XPeng's self-operated charging stations featuring a wide geographic coverage and a better user experience have already become one of XPeng's core competitive advantages. As of April 30, 2022, the number of XPeng self-operated charging stations increased to 954, including 774 self-operated supercharging stations and 180 destination charging stations. With the G9 mass delivery, we'll deploy next-generation 480-kilowatt supercharging piles in the fourth quarter to provide a superior charging experience, enabling 200 kilometers range after a 5-minute charge.

現在在超級充電網絡方面，小鵬汽車自營充電站覆蓋地域廣、用戶體驗好，已經成為小鵬汽車的核心競爭優勢之一。截至2022年4月30日，小鵬自營充電站增至954座，其中自營超級充電站774座，目的地充電站180座。隨著 G9 的量產，我們將在第四季度部署下一代 480 千瓦的超級充電樁，提供卓越的充電體驗，充電 5 分鐘可續航 200 公里。

Frankly, the macro environment this year is brought with challenges, but it is clear that these challenges do not change the long-term fast growth trends in the smart EV market. As BEV penetration rate continues to ramp up, independent domestic EV brands are gaining consumers' mind share and making their foray in the mid- to high-end market segments. Smart technology and innovation are here to stay, accelerating the pace of the disruption of those incumbents and presenting an opportunity for industry leaders armed with outstanding competitive edges to shine. Leveraging our leading-edge R&D technology and strong optimization and execution capabilities, XPeng is well poised to capitalize on the opportunities to reshape the market, cementing our leadership position with growing market share.

坦率地說，今年的宏觀環境充滿挑戰，但顯然這些挑戰並沒有改變智能電動汽車市場長期快速增長的趨勢。隨著純電動汽車滲透率的不斷提升，自主國產電動汽車品牌正在獲得消費者的心智份額，並進軍中高端市場。智能技術和創新將繼續存在，加快顛覆現有企業的步伐，並為擁有卓越競爭優勢的行業領導者提供大放異彩的機會。憑藉我們領先的研發技術和強大的優化和執行能力，小鵬已準備好抓住機遇重塑市場，以不斷擴大的市場份額鞏固我們的領先地位。

For the rest of the second quarter, we'll continue to work hard to overcome the negative impact of the ongoing COVID-19 outbreaks and the supply chain pressures. For the second quarter of 2022, deliveries of vehicles are expected to be between 31,000 and 34,000 and the total revenues in the second quarter is expected to be between RMB 6.8 billion and RMB 7.5 billion.

在第二季度剩下的時間裡，我們將繼續努力克服持續的 COVID-19 爆發和供應鏈壓力的負面影響。 2022年第二季度，預計汽車交付量在3.1萬至3.4萬輛之間，第二季度總收入預計在68億元至75億元之間。

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 first quarter of 2022.

謝謝大家。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 2022 年第一季度的財務業績。

Thank you, Mr. He, and hello, everyone. Now I would like to provide a brief overview of our financial results for the first quarter of 2022. I will reference to RMB only in my discussion today, unless otherwise stated.

謝謝何先生，大家好。現在，我想簡要介紹一下我們 2022 年第一季度的財務業績。除非另有說明，否則我將在今天的討論中僅提及人民幣。

Our total revenues were RMB 7.5 billion for the first quarter of 2022, an increased 153% year-over-year and a decrease of 13% quarter-over-quarter. Revenues from vehicle sales were RMB 7 billion for the first quarter of 2022, an increase of 149% year-over-year and a decrease of 14.5% from the last quarter. The year-over-year increase was mainly attributable to higher vehicle deliveries, especially for the P7 and P5, while the quarter-over-quarter decrease was associated with the less vehicle deliveries affected by the seasonal factors relating to the Chinese New Year holiday.

2022年第一季度，我們的總收入為人民幣75億元，同比增長153%，環比下降13%。 2022年第一季度汽車銷售收入為人民幣70億元，同比增長149%，環比下降14.5%。同比增長主要是由於車輛交付量增加，尤其是 P7 和 P5，而環比下降則與受春節假期相關季節性因素影響的車輛交付量減少有關。

Gross margin was 12.2% for the first quarter of 2022 compared with 11.2% for the same period of 2021 and 12% for the last quarter.

2022 年第一季度的毛利率為 12.2%，而 2021 年同期為 11.2%，上一季度為 12%。

Repo margin reached 10.4% for the first quarter of 2022 compared with 10.1% for the same period of 2021 and 10.9% for the last quarter. The quarter-over-quarter decrease was primarily attributable to increase in raw material costs.

2022 年第一季度回購保證金達到 10.4%，而 2021 年同期為 10.1%，上一季度為 10.9%。環比下降主要是由於原材料成本增加所致。

R&D expenses were RMB 1.2 billion for the first quarter of 2022, an increase of 128% year-over-year and a decrease of 15.9% quarter-over-quarter. The year-over-year increase were mainly due to: number one, the increase in employee compensation as a result of expanded research and development staff; and number two, high expenses relating to the development on new vehicle models to support future growth. The quarter-over-quarter decrease was mainly explained by less design and development expenses, which were affected by the seasonal factor relating to the Chinese New Year holiday.

2022年一季度研發費用為人民幣12億元，同比增長128%，環比下降15.9%。同比增長主要是由於：一是研發人員增加導致員工薪酬增加；第二，與新車型開發相關的高額費用，以支持未來的增長。環比下降的主要原因是設計和開發費用減少，受春節假期相關的季節性因素影響。

SG&A expenses were RMB 1.6 billion for the first quarter of 2022, an increase of 128% year-over-year and a decrease of 18.5% quarter-over-quarter. The year-over-year increase was mainly due to: number one, higher marketing, promotional and advertising expenses to support vehicle sales; and number two, the expansion of our sales network and associated personnel costs and commission paid to the franchise store sales. The quarter-over-quarter decrease was mainly associated with the seasonal factors I mentioned about.

2022年第一季度SG&A費用為人民幣16億元，同比增長128%，環比下降18.5%。同比增長的主要原因是：第一，支持汽車銷售的營銷、促銷和廣告費用增加；第二，我們銷售網絡的擴展以及支付給加盟店銷售的相關人員成本和佣金。環比下降主要與我提到的季節性因素有關。

As a result of the foregoing, loss from operations were RMB 1.9 billion for the first quarter of 2022 compared with RMB 0.1 billion for the same period of 2021 and RMB 2.4 billion for the last quarter. Net loss was RMB 1.7 billion for the first quarter compared with RMB 0.8 billion for the same period a year ago and RMB 1.3 billion for the last quarter.

由於上述原因，2022年第一季度的經營虧損為人民幣19億元，而2021年同期為人民幣1億元，上一季度為人民幣24億元。一季度淨虧損為人民幣17億元，而去年同期為人民幣8億元，上一季度為人民幣13億元。

As of March 31, 2022, our company had cash and cash equivalents, restricted cash, short-term deposits, short-term investment and long-term deposits in total of RMB 41.7 billion. To be mindful of the dense of the earnings call, I will encourage listeners to refer to our earnings press release for more details on our first quarter financial results.

截至2022年3月31日，公司持有現金及現金等價物、受限現金、短期存款、短期投資和長期存款共計417億元。為了注意財報電話會議的密集性，我將鼓勵聽眾參考我們的財報新聞稿，以獲取有關我們第一季度財務業績的更多詳細信息。

This concludes our prepared remarks. We will now open the call to questions. Operator, please go ahead.

我們準備好的評論到此結束。我們現在將打開問題電話。接線員，請繼續。

(Operator Instructions) Your first question comes from Tim Hsiao from Morgan Stanley.

（操作員說明）您的第一個問題來自摩根士丹利的 Tim Hsiao。

(foreign language) So I've got 2 questions. So the first question, just want to quickly follow up on expense previous spec change. The company now makes the XPILOT standard features for Sedan P5 and P7 models, which will surely go out to the user experience in the adoption rate. But could you share a little bit about the company's new software strategy and the plan? We plan to restart charging users with XPILOT software in the future with AP from like XPILOT 2.0. And is that going to be a bit challenging to resume the fee collection if most of the peers have followed us to launch free software ecosystem business model?

（外語）所以我有兩個問題。所以第一個問題，只是想快速跟進之前的規格變化。該公司現在為 Sedan P5 和 P7 車型製作 XPILOT 標準功能，這肯定會在採用率上影響用戶體驗。但是你能分享一下公司的新軟件戰略和計劃嗎？我們計劃在未來使用 XPILOT 2.0 等 AP 重新開始對 XPILOT 軟件的用戶收費。如果大多數同行都跟隨我們推出自由軟件生態系統商業模式，那麼恢復收費是否會有點挑戰？

And my second question is about the margin trajectory. Could you please update when the contribution for the orders with new prices will kick in? I recall management mentioned it might be late June, but I'm not sure if there's any further changes amid recent supply chain disruption. As battery cost would likely be further climbing in the second quarter, do you have enough, the low-cost inventory for component battery, to compete the low-price orders delivery in both April and May or we can leverage our more diversified battery supply chain? So those are my 2 questions.

我的第二個問題是關於保證金軌跡。您能否更新新價格訂單的貢獻何時開始？我記得管理層提到可能是 6 月下旬，但我不確定在最近的供應鏈中斷期間是否有任何進一步的變化。由於第二季度電池成本可能會進一步攀升，您是否有足夠的低成本組件電池庫存來競爭 4 月和 5 月的低價訂單交付，或者我們可以利用我們更多元化的電池供應鏈?所以這是我的兩個問題。

[Interpreted] So thank you. Very good question. Currently speaking, for -- in terms of our pricing on top of our ADAS technology as well as our software, I believe that, amongst all of the emerging EV makers in China, we are doing the best in terms of our penetration rate, adoption rate as well as the final results. However, we did notice a trend in the market, which is that if you separate the charging for the software as well the hardware from the perspective of the customers or the consumers, it rather -- it is actually better to do a combined or a bulk charging package that combines the usage or the adoption of the hardware together with the software rather than doing it separately.

[解釋] 所以謝謝你。非常好的問題。目前來說，就我們基於 ADAS 技術和軟件的定價而言，我相信，在中國所有新興電動汽車製造商中，我們在滲透率、採用率方面做得最好率以及最終結果。但是，我們確實注意到了市場上的一個趨勢，那就是如果從客戶或消費者的角度來看，軟件和硬件的收費是分開的，實際上是合併或合併更好。將硬件的使用或採用與軟件結合在一起而不是單獨進行的批量充電包。

So if we can do this kind of integrated pricing model for both the software and the hardware, it would be actually very beneficial for our future upgrade of the software in terms of the adoption of the ADAS technologies, the upgrading of our smart cockpit, smart chassis as well as the overall software performance together combined with the hardware performance. Right now, we are in the mid level of ADAS technology application.

所以如果我們能做到這種軟硬件一體化的定價模式，其實對我們未來軟件升級，比如ADAS技術的採用，我們的智能座艙升級，smart機箱以及整體軟件性能與硬件性能相結合。目前，我們處於ADAS技術應用的中端。

In the future, I believe in the near future, when we are able to really move towards a higher level of ADAS technology application, which we internally call the man machine co-driving experience, we believe, at that point in time, we should be able to do a lot more OTA upgrades of our software with this kind of integrated pricing model that combine both the hardware and software so that we can increase and enhance the overall experience for our products, for our overall user experience as well as -- be very beneficial for the overall company gross margin as well. And so we believe this kind of integrated pricing model for both the hardware and software together will be more beneficial and sustainable for the long run.

未來，我相信在不久的將來，當我們能夠真正邁向更高層次的ADAS技術應用，我們內部稱之為人機共駕體驗的時候，我們相信，到那個時候，我們應該能夠通過這種結合了硬件和軟件的集成定價模型對我們的軟件進行更多的 OTA 升級，這樣我們就可以增加和增強我們產品的整體體驗、我們的整體用戶體驗以及——對公司整體毛利率也非常有利。因此，我們相信這種硬件和軟件的綜合定價模式從長遠來看將更加有益和可持續。

And in the future, we believe that more monetization or capitalization that based on the software usage or adoption will emerge as we continue to accumulate more data and more user experience based on the launch of our software and hardware together. For example, there are different kinds of monetization that can be based on the time spent or the used time spent with our software or based on the mileage that our consumers or our customers use on our products or services. Overall speaking, we believe that this kind of integrated pricing model will actually be more beneficial and sustainable in the long run that allow us to further optimize our user experience.

並且在未來，我們相信隨著我們基於軟件和硬件的共同推出而繼續積累更多數據和更多用戶體驗，將出現更多基於軟件使用或採用的貨幣化或資本化。例如，有不同類型的貨幣化，可以基於使用我們的軟件所花費的時間或使用的時間，或者基於我們的消費者或我們的客戶在我們的產品或服務上使用的里程。總體而言，我們相信這種綜合定價模式從長遠來看實際上會更加有益和可持續，從而使我們能夠進一步優化我們的用戶體驗。

Tim, this is Brian. Let me just add a couple of comments. First of all, we have been witnessing the various software monetization. It has been implemented by various companies in China. And so far, I think it is quite clear that the separate charging and also subscription-based models has not been very prevalent in the China market. In some ways, I think, it has limited the broader penetration of the utilization of these technologies. We believe that at this stage of the market, our core focus is to make sure that we provide optimal service package that can be widely used that increasing the penetration and coverage and witnessing the stickiness of our technology is probably the first priority before we actually implement various different monetization strategies. So that's why I think we are adopting the current standardized charging model.

蒂姆，這是布賴恩。讓我添加一些評論。首先，我們一直在見證各種軟件貨幣化。它已被中國多家公司實施。到目前為止，我認為很明顯，單獨收費和基於訂閱的模式在中國市場並不是很普遍。我認為，在某些方面，它限制了這些技術使用的更廣泛滲透。我們認為，在這個市場階段，我們的核心重點是確保我們提供可以廣泛使用的最佳服務包，提高滲透率和覆蓋率以及見證我們技術的粘性可能是我們實際實施之前的首要任務各種不同的貨幣化策略。這就是為什麼我認為我們正在採用當前的標準化收費模式。

But I think in the long run, when we actually see advanced main technology, see more broader utilization and also stickiness and dependence of this technology, I'm sure we'll be able to have much more robust monetization and variations that we can use for the Chinese market.

但我認為從長遠來看，當我們真正看到先進的主要技術，看到更廣泛的應用以及這項技術的粘性和依賴性時，我相信我們將能夠擁有更強大的貨幣化和我們可以使用的變體面向中國市場。

And I'll hand over to Dennis for the second question.

我將把第二個問題交給丹尼斯。

Tim, this is Dennis. Yes, in the previous earnings call, we mentioned we will be able to deliver most of the new price orders probably sometime in June, maybe in the second half of June. Because the COVID impact, especially in the Shanghai area, now we are looking to deliver the lowest price protected orders until June. So most of the new price order will be delivered probably starting in very late June and some starting in July. That's the present assessment of the delivery.

蒂姆，這是丹尼斯。是的，在之前的財報電話會議中，我們提到我們可能會在 6 月的某個時候交付大部分新的價格訂單，可能在 6 月下半月。由於 COVID 的影響，尤其是在上海地區，現在我們希望在 6 月之前交付最低價格的受保護訂單。因此，大部分新的價格訂單可能會在 6 月下旬開始交付，一些從 7 月開始。這就是目前對交付的評估。

Your next question comes from Nick Lai from JPMorgan.

您的下一個問題來自摩根大通的 Nick Lai。

(foreign language) My 2 simple questions. First is on monthly production. You mentioned you're guiding second quarter production of 31,000 to 34,000 units, and that translates into roughly about 11,000 to 12,500 units per lot. Does that mean potentially we have production loss somewhere about (inaudible) in the rest of 2Q? And is it possible that this production can be recovered in third quarter and latest update on chip supply? And the second question is really on battery supply pricing (inaudible) with the supplier.

（外語）我的兩個簡單問題。首先是按月生產。您提到您正在指導第二季度生產 31,000 到 34,000 件，這意味著每批大約生產 11,000 到 12,500 件。這是否意味著我們可能在第二季度剩餘時間（聽不清）的某個地方出現生產損失？是否有可能在第三季度和芯片供應的最新更新中恢復這種生產？第二個問題實際上是關於供應商的電池供應定價（聽不清）。

Nick, it's Brian. Let me answer your first question. First of all, you're correct. Our quarterly guidance for the delivery this quarter reflect a bottleneck in the supply chain, which has been impacted in April as well as May and likely in June as well. So this is actually a number that reflected that we cannot obviously have the full output even with the capacity of the factory running at a full capacity. It's still limited by the supply chain constraints.

尼克，是布賴恩。讓我回答你的第一個問題。首先，你是對的。我們對本季度交付的季度指導反映了供應鏈的瓶頸，該供應鏈在 4 月和 5 月都受到影響，並且可能在 6 月也受到影響。所以這實際上是一個數字，反映了即使工廠滿負荷運轉，我們顯然也不能滿負荷生產。它仍然受到供應鏈約束的限制。

We envision that if the supply chain resumes normally, we'll be able to catch up with the volume in the third quarter because we have sufficient capacity to ramp up production at a time. So I think we're confident that as soon as the impact in Shanghai area and some other area that resumes normally, we'll be able to produce enough output to accelerate the delivery and to meet the customer demand, which we're seeing is very robust.

我們設想，如果供應鏈恢復正常，我們將能夠趕上第三季度的產量，因為我們有足夠的能力一次提高產量。因此，我認為我們有信心，一旦上海地區和其他一些地區的影響恢復正常，我們將能夠產生足夠的產量來加速交付並滿足客戶的需求，我們看到的是非常健壯。

[Interpreted] So yes, let me just address the question regarding the chips visibility. So if there was any COVID resurgence in China right now, I think the majority of our peers or all of the new EV makers in China right now will be actually restricted by the capacity or the supply of the chips in general.

[解釋] 所以是的，讓我來解決有關芯片可見性的問題。因此，如果中國現在有任何新冠疫情復甦，我認為我們的大多數同行或中國目前所有的新電動汽車製造商實際上將受到總體芯片產能或供應的限制。

According to our latest calculation, every single unit or every single product of ours will need an average of 5,000 chips. And for some parts of the car, that will require about a dozen or several dozens of the same chips for just one part of the car. And for some of the main chips, actually, for example, 3 kinds to 5 kinds of the main chips, their capacity is actually okay and their supplier is actually okay. But the main shortage actually comes from some of the smallest and the cheapest ones, the chips, and their capacity is very, very limited. And the visibility is also very limited in China as well.

根據我們最新的計算，我們每一個單元或每一個產品平均需要5000個芯片。對於汽車的某些部分，僅汽車的一個部分就需要十幾個或幾十個相同的芯片。而對於一些主芯片，其實比如3種到5種主芯片，他們的產能其實還可以，供應商其實還可以。但主要短缺實際上來自一些最小和最便宜的芯片，它們的容量非常非常有限。而且在中國的知名度也非常有限。

April, I would say I was performing actually quite well in terms of the capacity and the supply of the chips in this regard. However, believe that in China, I mean, the visibility to chips in general going forward is still very, very limited and how its impact on our capacity is also going to last for a while. Now from 2020 on, we begin to notice the crisis in shortage of chip supplies in general. And by 2021, we thought that while maybe a crisis can be resolved or at least alleviated to some extent by the end of 2022, but now our latest judgment is that the situation is going to -- I mean the crisis is going to still last for a while, maybe ahead into 2023 or even longer.

4月份，我會說我在這方面的產能和芯片供應方面實際上表現得很好。但是，相信在中國，我的意思是，總體而言，芯片的知名度仍然非常非常有限，而且它對我們產能的影響也將持續一段時間。現在從2020年開始，我們開始普遍注意到芯片供應短缺的危機。到 2021 年，我們認為雖然可能在 2022 年底之前解決或至少在一定程度上緩解危機，但現在我們的最新判斷是，情況將會——我的意思是危機仍將持續有一段時間，可能會提前到 2023 年甚至更長時間。

Now there are several resolutions there. For example, signing long-term contracts with our chip supplier can be one of them. And the other is, really, as I mentioned in my previous remarks, that we need to build a very capable team, technological team that have very strong capability in building embedded architecture that allow our platform to be very, very flexible in adapting to the supply shortage of chips. For example, we can -- we should be able to adapt to, for example, the shortage in chips in some parts of the platform or some parts of our product, and we can change flexibly according to the supply of different chips and different parts of the units. And then as I mentioned earlier, in April, we did actually quite okay in terms of the visibility of the chips. And sometimes we only have 1 week's visibility into the future in terms of our chip and how it affects our capacity. So overall, I would say the situation, it's still not very positive at the moment.

現在那裡有幾個決議。例如，與我們的芯片供應商簽訂長期合同就是其中之一。另一個是，真的，正如我在之前的評論中提到的，我們需要建立一個非常有能力的團隊，技術團隊在構建嵌入式架構方面有很強的能力，讓我們的平台能夠非常非常靈活地適應芯片供應短缺。比如我們可以——我們應該能夠適應，比如平台的某些部分或者我們產品的某些部分芯片短缺，我們可以根據不同芯片和不同部分的供應靈活變化的單位。然後正如我之前提到的，在 4 月份，就芯片的可見性而言，我們實際上做得很好。有時，就我們的芯片以及它如何影響我們的產能而言，我們對未來只有 1 週的可見性。所以總的來說，我想說的情況，目前仍然不是很積極。

All right. Let me address the second half of your question with regards to the capacity and the pricing of battery supplies. Now in 2021, our battery supply was greatly restrained that resulted in a lot of issues for us in terms of our deliveries as well as our overall capacity of production. From 2020 on and also from -- I think, from this year and all the way to the first half of 2023, I think the battery supply situation will actually become better.

好的。讓我來回答你關於電池供應的容量和定價的問題的後半部分。現在到了 2021 年，我們的電池供應受到了極大的限制，這給我們的交付以及我們的整體生產能力帶來了很多問題。從 2020 年開始，我認為從今年開始一直到 2023 年上半年，我認為電池供應情況實際上會變得更好。

And since from last quarter -- well, from Q4 last year, all the way to the first month into 2022, we begin to notice that there are a lot of pricing increase in terms of the supply of battery, mainly due to the increase of raw materials of making those new energy batteries, which include a lot of price increase in lithium materials. And we noticed that kind of price increase in China, domestically speaking, but not so much in the overseas market. We believe that the pricing of lithium, the raw material overall, remained the same as the situation back in the first half of 2021. And because of the current COVID resurgence as well as the price increase in lithium materials, I think, overall, the situation remains very hard. But the whole industry is not just for ourselves, but then the situation can begin to result or the pricing of batteries will continue to reduce slightly from the second quarter of this year on.

從上一季度開始——嗯，從去年第四季度開始，一直到 2022 年的第一個月，我們開始注意到電池供應方面的價格上漲很多，主要是由於製造那些新能源電池的原材料，其中包括鋰材料價格的大量上漲。我們注意到中國國內的這種價格上漲，但在海外市場並沒有那麼多。我們認為，整體原材料鋰的定價與 2021 年上半年的情況保持一致。而且由於當前的 COVID 死灰復燃以及鋰材料的價格上漲，我認為總體而言，情況仍然很艱難。但整個行業不只是為了我們自己，然後情況可能會開始出現，或者從今年第二季度開始，電池的價格將繼續小幅下調。

Now for the second quarter of this -- I mean for the second half of 2022, we should be able to see some adjustment or some optimization of our battery supply because we are able to adopt multi suppliers of our batteries, which really can be beneficial in resolving some of the issues that resulted from like cost batteries supplied from previous quarters. And we -- from Q2 on, we believe that we would begin to actually see a lot of progress in this regard.

現在到第二季度——我的意思是到 2022 年下半年，我們應該能夠看到我們的電池供應進行一些調整或優化，因為我們能夠採用多個電池供應商，這確實是有益的解決了前幾個季度供應的類似成本電池導致的一些問題。而且我們 - 從第二季度開始，我們相信我們將開始在這方面看到很多進展。

And the second thing is, with multiple suppliers of batteries, we can do better cost optimization of our products as well. I think in the mid-term, the battery pricing will continue to actually reduce from the current high level, but probably not -- probably they won't be able to reduce to the low level as we saw in previous years. However, we are very confident that XPeng is benefiting from our supercharging technology as our SIC charging materials adoption, also some of the optimization in our technology advancement in reducing the wind resistance, in reducing the overall weight of our product as well as to overall high efficiency of utilizing the batteries as well as adopting multiple supply of batteries can benefit us in the long run and can allow us to continue to serve our customers with enough actually production of our products going into the second half of this year. And we believe that from the second half of 2022 on, we should be able to continue to boost ourselves of new products benefiting from the above factors that I just mentioned.

第二件事是，有了多個電池供應商，我們也可以更好地優化我們的產品成本。我認為從中期來看，電池價格實際上將繼續從目前的高水平下降，但可能不會——可能他們無法像往年那樣降至低水平。但是，我們非常有信心小鵬受益於我們的增壓技術，因為我們採用了 SIC 充電材料，以及我們在降低風阻、降低產品整體重量以及整體高從長遠來看，利用電池的效率以及採用多種電池供應可以使我們受益，並使我們能夠在今年下半年繼續為客戶提供足夠的實際產品產量。而且我們相信，從2022年下半年開始，我們應該能夠繼續提升自己的新產品，受益於我剛才提到的上述因素。

Your next question comes from Bin Wang from Credit Suisse.

您的下一個問題來自瑞士信貸的王斌。

(foreign language) My question is about the margin outlook in the second quarter or the second half of this year because we see the different factors. Is it (inaudible) the higher-priced products can only kick in, in the third quarter that's why second quarter maybe stand decline compared to first quarter in the gross margin? And the number 3 quarter, second half can assume the gross margin can reach out high when the high pricing products start to help. And the second part, you recently changed the software pricing. What's the impact of low gross margin in the second quarter and third quarter? That's number one question.

（外語）我的問題是關於今年第二季度或下半年的利潤率前景，因為我們看到了不同的因素。是否（聽不清）高價產品只能在第三季度發揮作用，這就是為什麼第二季度的毛利率可能比第一季度下降的原因？而第三季度、下半年可以假設當高價產品開始提供幫助時，毛利率可以達到高位。第二部分，您最近更改了軟件定價。二、三季度毛利率偏低有什麼影響？這是第一個問題。

Inventories about new products, as you mentioned, there will be a large-sized products and large products in the 2023. And so what's the pricing range? What's the margin? Can they be above the 20% gross margin because you are guiding a target 25% margin in 2025 or mid-term?

關於新品的庫存，如你所說，2023年會有大件和大件，那麼定價範圍是多少？邊際是多少？由於您在 2025 年或中期指導目標 25% 的毛利率，它們能否超過 20% 的毛利率？

Wang Bin, this is Dennis. Let me address your first question. Yes, you're right. Because of the COVID impact, our second quarter volume was impacted compared with our original projection. So our second quarter gross margin will be impacted as well. We will further investigate the impact and also take some action to recover the margin in the second quarter.

王斌，我是丹尼斯。讓我回答你的第一個問題。你是對的。由於 COVID 的影響，與我們最初的預測相比，我們第二季度的銷量受到了影響。所以我們第二季度的毛利率也會受到影響。我們將進一步調查影響，並採取一些措施在第二季度恢復利潤率。

And going to the third quarter, yes, we will deliver new price orders. So our margin in the third quarter will rebound -- will improve. However, we are seeing -- we will have further margin improvement in the quarter 4 when we had new model delivery to the market. So our margin in second quarter will be slightly impacted by the delivery -- the new price order, and then third quarter will improve and then first quarter will further improve. That's our present projection.

到第三季度，是的，我們將交付新的價格訂單。因此，我們在第三季度的利潤率將會反彈——將會提高。然而，我們看到——當我們向市場交付新車型時，我們將在第四季度進一步提高利潤率。所以我們第二季度的利潤率會受到交貨的輕微影響——新的價格訂單，然後第三季度會改善，然後第一季度會進一步改善。這是我們目前的預測。

Yes. And Bin, to answer your second question -- Bin, let me finish. Just to answer your second question. Yes, the products that we're going to introduce next year, which will include a product coming from a C Class platform will be at a premium to the current portfolio of products that we have, including the G9. So you can expect that will be close to or even exceeding the RMB 400,000 price range. And for such a product, that we certainly hope it will have high gross margin. So 20% will be very important benchmark for us to target our product design. But for that product, I think, assuming a 20% or above product margin is actually reasonable.

是的。 Bin，回答你的第二個問題- Bin，讓我結束。只是為了回答你的第二個問題。是的，我們將在明年推出的產品，其中包括來自 C 類平台的產品，將比我們現有的產品組合（包括 G9）更具優勢。所以可以預期會接近甚至超過40萬元的價格區間。對於這樣的產品，我們當然希望它有很高的毛利率。所以 20% 將是我們瞄準產品設計的非常重要的基準。但對於那個產品，我認為，假設 20% 或以上的產品利潤率實際上是合理的。

[Interpreted] And also internally speaking, our expectation for these 2 new products is that their capability or the overall performance combined will be actually more superior than 2 P7s combined.

【解讀】另外從內部來說，我們對這兩款新品的期望是，它們的能力或者綜合性能加起來實際上會比2個P7加起來更優越。

(foreign language)

（外語）

Right now, we're not giving guidance, given the lack of visibility of the, I would say, material prices as well as the overall environment. But we are hopeful that the rebound will be pretty robust from second quarter levels.

目前，我們沒有提供指導，因為我想說的是，材料價格以及整體環境缺乏可見性。但我們希望從第二季度的水平反彈將相當強勁。

Your next question comes from Jeff Chung from Citi Bank.

您的下一個問題來自花旗銀行的 Jeff Chung。

(foreign language) Okay. I have 3 questions. One is due to (inaudible) backlog rolling from the first quarter, how many volume sold in the second quarter will be valued at SRP price hike? This is number one.

（外語）好的。我有 3 個問題。一個是由於第一季度的（聽不清）積壓滾動，第二季度售出的數量將按 SRP 價格上漲計算？這是第一。

Number two is the newly generated order backlog since the 1st of May. Could you tell us then on the trend, on the newly generated order backlog?

第二是自 5 月 1 日以來新生成的訂單積壓。你能告訴我們趨勢，關於新生成的訂單積壓嗎？

And the final question is about the first quarter vehicle margins. Could you break down the vehicle margins without the software? And also separately, could you tell us the first quarter software margin? And for an apple-to-apple comparison, if we strip off the raw material price hike, what should be the first quarter vehicle margin would have been?

最後一個問題是關於第一季度的汽車利潤率。你能在沒有軟件的情況下分解車輛利潤嗎？另外，您能否告訴我們第一季度的軟件利潤率？對於蘋果與蘋果的比較，如果我們去掉原材料價格上漲，第一季度的汽車利潤率應該是多少？

So Jeff, this is Brian. Let me answer your second question first, which is the new order trend, and then I'll leave the number question to Dennis. First of all, as we said in our CEO presentation that we actually saw the order -- new order recovery in May in areas that's not affected by COVID lockdown in certain cities is already near the pre-price increase levels, which is a very encouraging sign because, obviously, we see that demand is genuine and also it's actually rebounding pretty nicely. It took us probably a little bit over a month to build up that demand pool. Obviously, we saw the month of April, we saw slow demand recovery. But in May, actually, the order level is actually quite robust. And I would think it was increasing relaxation of COVID measures in large markets that we target, which are important markets to us. We see the overall order momentum will be quite strong.

傑夫，這是布賴恩。讓我先回答你的第二個問題，即新訂單趨勢，然後我將把數字問題留給丹尼斯。首先，正如我們在 CEO 演講中所說，我們實際上看到了訂單——在某些城市不受 COVID 封鎖影響的地區，5 月份的新訂單恢復已經接近價格上漲前的水平，這是非常令人鼓舞的簽署，因為很明顯，我們看到需求是真實的，而且它實際上反彈得很好。我們大概花了一個多月的時間來建立這個需求池。顯然，我們看到了 4 月份，我們看到需求復蘇緩慢。但實際上，在 5 月份，訂單水平實際上相當強勁。而且我認為，在我們的目標市場中，COVID 措施越來越放鬆，這些市場對我們來說是重要的市場。我們看到整體訂單勢頭將相當強勁。

Then I'll hand over to Dennis on the other two.

然後我將把另外兩個交給丹尼斯。

Yes. Jeff, let me address your first question. We don't provide very precise -- for example, the new price order deliveries, the old price order deliveries. But in -- at home, the majority of deliveries were the old price protected. And also in May, majority would be the old price, especially for the P7. Majority of P7 would be the price protection because the backlog is -- we need some time to deliver those orders.

是的。傑夫，讓我來回答你的第一個問題。我們不提供非常精確的 - 例如，新的價格訂單交付，舊的價格訂單交付。但是在國內，大部分交貨都是舊價格保護的。同樣在 5 月，大部分將是舊價格，尤其是對於 P7。 P7 的大部分將是價格保護，因為積壓是 - 我們需要一些時間來交付這些訂單。

For your third question, yes, the first quarter, the reason why we can maintain the same gross margin level as quarter 4 last year was because, number one, we have mix improvement. Our P7, the product mix -- product line mix in the first quarter was about 56%. In the quarter 4 last year, it was about 50%. So that's a mix improvement. And next one is the variable marketing kind of rationalization. We technically reduced our variable marketing spending to increase the overall margin.

對於您的第三個問題，是的，第一季度，我們之所以能夠保持與去年第四季度相同的毛利率水平，是因為第一，我們有組合改進。我們的 P7，產品組合——第一季度的產品線組合約為 56%。去年第四季度，這一比例約為 50%。所以這是一個混合改進。下一個是可變營銷類型的合理化。我們在技術上減少了可變營銷支出以提高整體利潤率。

Having said that, we will also impact by 2 key factors. Number one is the NEV reduction, the new energy vehicle reduction, which is about 20% -- the subsidy level, about 20% compared with the 2021. The other one, the big chunk would be the battery cost. I cannot provide the detailed number, but that is a big offset of our -- like the mix improvement and also the variable marketing reduction. So all in all, we were able to maintain the quarter 4 margin level for the moment.

話雖如此，我們還將受到兩個關鍵因素的影響。第一是新能源汽車降價，新能源汽車降價，大約是20%——補貼水平，比2021年降20%左右。另外一個，很大一部分是電池成本。我無法提供詳細的數字，但這是我們的一個很大的補償——比如混合改進和可變營銷減少。總而言之，我們目前能夠維持第 4 季度的利潤率水平。

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

您的下一個問題來自美國銀行的 Ming Lee。

(foreign language) So regarding your autonomous driving software. So in the future, will the sales of the software be included in the car price? Or you will still consider to charge the consumer on a one-off or a monthly installment basis? And also, because this time, you give the software a standard configure, but in the meantime, you also pencil free charging and also pencil subsidy for installing charging pile. So is it a margin nature event for your business?

（外語）所以關於你們的自動駕駛軟件。那麼未來，軟件的銷售是否會包含在車價中呢？或者您仍然會考慮一次性或按月向消費者收費？而且，因為這一次，你給軟件一個標準配置，但同時，你還有鉛筆免費充電和安裝充電樁的鉛筆補貼。那麼這對您的企業來說是利潤性質的事件嗎？

And second question, regarding the supercharging technology. So is the 480-kilowatt hour charging pile and also 800 voltage battery, the ultimate battery technology, charging technology? Or in the future, do you expect even further advanced charging technology?

第二個問題，關於增壓技術。那麼480千瓦時充電樁，也是800電壓電池，終極電池技術，充電技術？或者在未來，您是否期待更先進的充電技術？

Ming, let me address your first question. Yes, when we build those software into the vehicle together with the price and, at the same time, we get to eat up the supercharging -- free supercharging and also the kind of the destination charge, the home charger and including the installation. And at the same time, we also adjust the price a little bit to cover some of the costs. So overall, the margin impact would be neutral. And more importantly, with more customer using the software, we will be able to increase the scale and also to dilute the same kind of R&D expense. So overall, that's a good strategy for us.

明，我來回答你的第一個問題。是的，當我們將這些軟件連同價格一起內置到車輛中時，同時我們會吃掉超級充電——免費超級充電以及目的地充電、家用充電器和包括安裝在內的那種充電。同時，我們也稍微調整了價格，以彌補部分成本。因此，總體而言，利潤率影響將是中性的。更重要的是，隨著更多客戶使用該軟件，我們將能夠擴大規模，同時也可以稀釋同類研發費用。所以總的來說，這對我們來說是一個很好的策略。

In terms of the next product, G9 and also the future product, we haven't really decided yet or subject to further internal discussion. Whether we will continue such practice, we will have another arrangement. That is subject to our internal discussion. And when we introduce a product, we will also mention that. Now second question.

至於下一個產品G9以及未來的產品，我們還沒有真正決定或有待進一步內部討論。我們是否繼續這樣的做法，我們會有另外的安排。這是我們內部討論的主題。當我們介紹一個產品時，我們也會提到這一點。現在第二個問題。

[Interpreted] All right. Let me address the second question of yours. Actually, this year, we have made this plan to launch the 480-kilowatt hour charging facility by the fourth quarter. And originally, before heading into 2022, we had planned to actually launch 2 kind of charging facilitation. One is 260 kilowatt, the other is 480. But after evaluating the macro environment of this year, we make the final decision of launching 480 kilowatt by Q4 this year that allows for charging for 5 minutes that lasts for 200 kilometers of driving experience. However, if you actually charge for 10 to 15 minutes, it can give you even a longer driving range, but we haven't had the final testing results yet. That's why we are not releasing the number.

[解釋] 好的。我來談談你的第二個問題。實際上，今年我們已經制定了這個計劃，要在第四季度推出 480 千瓦時的充電設施。最初，在進入 2022 年之前，我們計劃實際推出 2 種充電便利。一個是260千瓦，一個是480。但在評估了今年的宏觀環境後，我們最終決定在今年Q4推出480千瓦，充電5分鐘，續航200公里。不過，如果你真的充電10到15分鐘，它可以給你更長的續航里程，但我們還沒有最終的測試結果。這就是我們不公佈數字的原因。

And so for the upcoming year, we believe that with our building of the 480-kilowatt supercharging facility as well as our 70-kilowatt destination charging, we should be able to actually launch quite a powerful charging network that's going to cover a wider geographical area in China. And in the coming year, we believe that we are going to welcome a new kind of era optimization as well as electrification.

所以在接下來的一年裡，我們相信隨著我們建設 480 千瓦的超級充電設施以及我們的 70 千瓦目的地充電，我們應該能夠真正推出一個覆蓋更廣泛地理區域的強大充電網絡在中國。在接下來的一年裡，我們相信我們將迎來一種新的時代優化以及電氣化。

Now in terms of the improvement of electrification, we believe that as the -- our technology continues to develop in terms of reducing wind resistance, including enhancing the -- using the efficiency of the electric system, the power chain as well as our battery with also the further enhancement of the supercharging infrastructure, we will be able to welcome in a stage where an era where we actually have a higher charging efficiency or effectiveness compared to the traditional gas stations for ICE vehicles, which means that, in the future, the market adoption rate for new -- or a new EV will actually be higher because consumers will begin to actually see a great enhancement in using every single dollar for charging their electric vehicles with less usage of power consumption.

現在在電氣化的改進方面，我們相信隨著——我們的技術在降低風阻方面不斷發展，包括提高——使用電力系統、動力鏈以及我們的電池的效率再加上超級充電基礎設施的進一步完善，我們將能夠迎來一個比傳統內燃機汽車加油站充電效率或效率更高的時代，這意味著，在未來，新電動汽車或新電動汽車的市場採用率實際上會更高，因為消費者將開始真正看到使用每一美元來為電動汽車充電而耗電量減少的情況有了很大提高。

And so the second part of my answer is actually, by the second half of 2023, we expect to see a new development that is revolutionary for electric -- for optimization of our technology, which means that, by that time, we should be able to cover the full scenarios of driving and, overall, we can enhance user experience and also the safety standards for using our products as well. And by that time, which means that we should be able to integrate the insulation of our latest technology in the hardware as well as our software.

所以我回答的第二部分實際上是，到 2023 年下半年，我們希望看到對電動汽車具有革命性的新發展——優化我們的技術，這意味著到那時，我們應該能夠全面覆蓋駕駛場景，提升用戶體驗，提升產品使用安全標準。到那時，這意味著我們應該能夠將我們最新技術的絕緣集成到硬件和軟件中。

Together with our combined installation or prefiguration of both the hardware and software together as a standard configuration of our products when we reach the stage of a consistent sales of those kind of pre-installed configuration, we should be able to actually optimize the overall standards for safety as well as our driving experience because we will be able to put in a lot of the embedded functions that we want to install in our products to optimize the user experience. And overall, that can save a lot of the usage of our hardware and overall to increase the usage efficiency and effectiveness of our hardware in general.

再加上我們將硬件和軟件的組合安裝或預配置一起作為我們產品的標準配置，當我們達到這種預裝配置的一致銷售階段時，我們應該能夠真正優化整體標準安全性以及我們的駕駛體驗，因為我們將能夠在我們的產品中加入許多我們想要安裝的嵌入式功能，以優化用戶體驗。總的來說，這可以節省我們硬件的大量使用，總體上提高我們硬件的使用效率和有效性。

So yes, just to summarize, by the end of this year or by the second half of next year, we should be able to welcome in lots of revolutionary changes in terms of the electrification as well as optimization in our industry.

所以是的，總結一下，到今年年底或明年下半年，我們應該能夠在電氣化和優化方面迎來許多革命性的變化。

And the second part of your question is also about the next generation of our charging facility. Yes, we are still in the R&D process. We are constantly developing our technology in order to develop the next generation of supercharging facility that can allow for fast charging of 5 minutes and that supports an even longer range of driving. Yes, that's all for my answer.

您問題的第二部分也是關於我們的下一代充電設施。是的，我們仍在研發過程中。我們不斷開發我們的技術，以開發可實現 5 分鐘快速充電並支持更長行駛距離的下一代增壓設施。是的，這就是我的回答。

We will take the last question.

我們將回答最後一個問題。

Your next question comes from Jing Chang from CICC.

您的下一個問題來自中金公司的Jing Chang。

(foreign language) So my -- I have some follow-up questions regarding to company adjustment to charging and software activation charges. So the first is regarding to pricing strategy of new model after the integration of software and hardware. We have saw the price difference of different versions of our current model. Taking P5 as an example, the price of P version and E version is RMB 32,000 and RMB 18,000 higher than the (inaudible) version. So now about to cover the increase in hardware cost. On our new models such as new -- such as G9 will take the benefit of software into account into the pricing strategy that has suppressed difference between different versions of the model we have widened.

（外語）所以我的——我有一些關於公司調整收費和軟件激活費的後續問題。所以首先是關於軟硬件融合後新車型的定價策略。我們已經看到了我們當前模型的不同版本的價格差異。以 P5 為例，P 版和 E 版的價格分別比（聽不清）版高出 32,000 元和 18,000 元。所以現在要彌補硬件成本的增加。在我們的新車型上，比如 G9 等新車型，將把軟件的優勢考慮到定價策略中，從而抑制了我們擴大了不同版本車型之間的差異。

My second question about, this year, we can see a supply of new models priced at RMB 250,000. It has been increased significantly. And from all those, you have emphasized their new electrification technology such as C2C and C2D. And we have also heard that more advanced technology will be applied to our new models such as G9 and next year's new model in the short term, especially in this year and the first half of next year. Do you worry about that competing products will have a great impact on our sales of P5 and P7?

第二個問題，今年我們可以看到25萬元的新機型供應。它已顯著增加。從所有這些中，您強調了他們的新電氣化技術，例如 C2C 和 C2D。而且我們也聽說在短期內，特別是今年和明年上半年，我們的新車型比如G9和明年的新車型上會應用更先進的技術。您是否擔心競品會對我們 P5 和 P7 的銷量造成很大影響？

[Interpreted] So about the first question of yours, yes, in the future upcoming models of ours, including P9 and other new models, we plan to enhance the price gap between different considerations. For example, for higher-end products or higher-end configurations, the price will be higher because they embed or incorporated a lot of our ADAS function as well as the high -- or advanced software. But on the other side of coin is that for lower configuration products, we are actually able to sort of lower the pricing because we will use a better BOM cost optimization for the adoption of lesser events kind of hardware for those kind of low configuration, which can be very beneficial for individual consumers as well as for us as a company.

【解讀】那麼關於你的第一個問題，是的，在我們未來即將推出的車型中，包括P9等新車型，我們打算拉大不同考慮之間的價格差距。例如，對於高端產品或高端配置，價格會更高，因為它們嵌入或集成了我們的許多ADAS功能以及高端或高級軟件。但另一方面，對於配置較低的產品，我們實際上能夠降低定價，因為我們將使用更好的 BOM 成本優化來為那些低配置採用較少事件類型的硬件，這對個人消費者以及我們作為一家公司來說都非常有益。

Now in May, after the adjustment of our pricing that include both the software and hardware, we actually have seen a spike in orders for mid- to higher-end configurations for P5. That gives us a lot of confidence in going forward because in the future with this kind of new pricing strategy or incorporation of both hardware and software into the one configuration, we should be able to further enhance our overall capacity -- I mean, capability in optimizing the user experience, the driving experience as well as optimizing our gross margin and in adopting more high-level ADAS technologies into our future products.

現在在 5 月，在我們調整了包括軟件和硬件在內的定價之後，我們實際上看到了 P5 中高端配置的訂單激增。這讓我們對前進充滿信心，因為在未來通過這種新的定價策略或將硬件和軟件整合到一個配置中，我們應該能夠進一步提高我們的整體能力——我的意思是，能力在優化用戶體驗、駕駛體驗以及優化我們的毛利率，並在我們未來的產品中採用更多高級 ADAS 技術。

And regarding P7 or P5, actually ever since our -- the launch of city NGP on P5, we've been able to actually recognize our leadership position of this model in the market because if our peers were to develop similar products with the same sort of performance, configuration in the coming several years, the pricing of their products will be much higher than ours for P5. And also, we are going to release more information regarding our automation and smart designs for the upcoming products and the current product portfolio in the future when we have them ready.

關於 P7 或 P5，實際上自從我們在 P5 上推出城市 NGP 以來，我們已經能夠真正認識到我們在市場上的領導地位，因為如果我們的同行要開發具有相同類型的類似產品性能、配置方面，未來幾年，他們的產品定價會比我們的P5高很多。此外，當我們準備就緒時，我們將發布更多關於我們即將推出的產品和當前產品組合的自動化和智能設計的信息。

Actually, reviewing the sales performance when we first launched it in July back in 2020, all the way to the -- in March 2021 when we launched a highway NGP for P7, we were able to see a strong growth in the total sales or the order number of this particular model with the adoption of NGP. And also for Q1 this year, we were able to record a history -- historically high level of 9,000 units of monthly sales for this particular product.

實際上，回顧我們在 2020 年 7 月首次推出時的銷售業績，一直到 2021 年 3 月推出 P7 高速公路 NGP 時，我們能夠看到總銷量或此特定型號的訂單號與採用 NGP。同樣在今年第一季度，我們能夠記錄歷史——該特定產品的月銷量達到 9,000 件的歷史最高水平。

So I would say that overall, we are very confident about our judgment of the positioning of these kind of products in the market in terms of its own positioning, in terms of the product quality, our market share as well as for the OTA relief in the future that will strengthen our leadership position of this product. Thank you.

所以我想說，總的來說，我們對這類產品在市場上的定位的判斷，無論是從自身定位，還是產品質量、市場份額以及OTA緩解等方面，我們都非常有信心。未來將加強我們在該產品的領導地位。謝謝你。

Operator, we are ready to conclude this call.

接線員，我們準備結束這次通話。

Thank you. And this includes the Q&A session. I would now like to turn the call over back to the management for closing remarks.

謝謝你。這包括問答環節。我現在想將電話轉回給管理層以結束髮言。

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

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或 The Piacente Group Investor Relations 提供的聯繫方式聯繫小鵬的投資者關係部。

Thank you. And this concludes today's conference call. You may now disconnect your lines.

謝謝你。今天的電話會議到此結束。您現在可以斷開線路。

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

[此成績單中標記為 [已翻譯] 的部分由現場通話中的口譯員朗讀。]