Q4 2020 NIO Inc Earnings Call

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Hello, Ladies and gentlemen, thank you for a study by four new Incorporated's fourth quarter 2020 earnings Conference call. At this time all participants are in listen only mode. Today's conference call is being recorded I would now turn the call over to the host Ms. Yu of tank from capital markets and Investor Relations. Please go ahead.

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The morning, and good evening, everyone welcome to the fourth quarter 2020 earnings Conference call. The company's financial and operating results were published in the press release earlier today and the posted at the company's IR website.

On today's call we have the Mr. William Li founder Chairman of the book and the Chief Executive Officer, Mr. Steven phone Chief Financial Officer, Mr. Stanley True VP of finance and the me State Wei a D T off of capital markets and Investor Relations.

Before we continue please be kind of you reminded 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 actual results may be materially different from the views expressed a to date.

For the information regarding risks and uncertainties is included in certain filings of the company with the U S Securities and Exchange Commission the.

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

Please also note that news earnings press release, and this conference call includes the discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to the news the press release, which contains a reconciliation of the unaudited non-GAAP.

Measure to comparable GAAP measures with the.

I will now turn the call over to oversee Oh make the way then be William Please go ahead.

First on guidance, yes, it always comes out way like Alibaba the Union piece of the depot that you'll have a.

Hello, everyone. Thank you for joining me on 2020 Q4 earnings call.

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In the fourth quarter of 2020, you deliver at 17353 is a yes, a six and you see six representing a strong growth of a 111% year over year, and a 42% quarter of a quarter the Q.

Emulation deliveries of the 2020 reached 43000 to 728, representing a strong growth of 113% over 2019, we achieved a historic monthly delivery of a 7000 to 225 vehicles.

In January of 'twenty, 'twenty, one and the resilience of delivery of 5578 vehicles in February of 'twenty, 'twenty, one representing strong 352 per cent and 689% year over year of growth respectively.

Are you on your way, let a some kind of pushing too.

Yes, a little way too early on in Nanjing, and Guangzhou didn't go as the will be a suite of them show them question. Yes. The doing worse is the way you saw on a golden thing, though as always to have a boom factory shutdown a whole what do you see a little tongue on it.

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In 2020, all three new models have achieved exceptional performance in the market. Yes. The six has been the best the selling electric SUV in China for the full year of 2020, Yes. Eight has reached the number one himself Inc. 2020 in the premium.

On an electric SUV sacrament priced above 400000, RMB in China, It's a.

The sector has ranked at the top in the premium Coupe SUV Sacrament four three conducted a mouse in China, starting from November 2020, backed by the top notch quality of product quality and the service New has gained a growing positive recognition and feedback from users.

And the industry in the China of insurance Automotive safety Index published in January of 'twenty 'twenty. One it's a six achieved to the best of 50, a rating among all models testing of the biopsy I a S. I, Inc. 2020 day.

It seems to me the timing of what Youll sort of war a promising the some of your most of them well.

What are the real area of boardroom put it in the call.

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Supported by a competitive product offerings outstanding services and innovative business models, we have loans, increasing gives a recognition and expect to the of all deliveries in the first quarter of 'twenty 'twenty. One two range 20000 to 20000 to 500 of vehicles.

But only if on yet so you get sushi items on the itself for the out Jim King of the pendulum from Doe job well done guys on a without some of its a bulk of yourself on this.

Would you do that on commodity a thought of fabulous the Chile, a lot. So what do you you shouldn't of actually putting social social from commodity to some sort of pattern the subsidiary.

In terms of the gross margin driven by debit Wei increasing delivery stable average selling price and the improving material costs and the manufacturing efficiency of a vehicle gross margin in Q4 reached a 17 point of cheaper debt. Moreover, benefited from the new and.

Like a credit revenue the of all gross margin has also increased the choose 17 point to two per cent woman sorry Ali on and yet you said you don't see a lot of things on GM quote on we sent the mill.

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You have continued the to achieve positive cash flow from operating activities in the fourth quarter and the full year of 2020 in all aspects of news operational efficiency and of all of 15 efficiency have significantly improved in 2020.

Just a I don't know the Tony who is a constantly being from a nature from there going forward.

I would like to share with you some key topics off of the company.

The other items.

Joel just a meal a day is a well known far below the T. N T. Other limited who can add a day you can she can tell sort of pushing ETT, Egypt and get you a competing proteins to the sudden pool.

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Therefore, the pogo on the retreat.

And the new day on January 19, 2020, or actually plenty of 'twenty. One we launched the day 87 of the first of a flagship sedan based on the new technology a platform two point O N T true, which is of course bleeding dimensions breakthrough exterior of sophisticated.

And curious efficient powertrain immersive digital cockpits and industry, leading autonomous driving capabilities Itchy seven has received a remarkable feedback from users media and the industry is all of their performance has also exceeded our expectations.

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Based on news in house full stack autonomous driving technology platform is the seven while the equipped the ways and a D. Now autonomous driving kind of this thing off the Neal a kill a super sensing and new atom supercomputing.

A QLED Super same thing system has 33 high performance same thing units, including 11, eight megapixel high resolution cameras and one high resolution lighter with the detection of a range off of 500 of meters. The computing power of a new add on is up to 1006.

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A suite and the the computing power off of a 95 surpass other competitors and we'll expedite the my smart a mass production progress off of the autonomous driving industry.

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And then he will provide a safer and more relaxing a day experience Ron's point, a to point of being gradually covering highway urban parking charging swapping and other use cases to free up time and reduce accidents. In addition, Neil on a D will be the first.

A D system offered through a monthly subscription service or a day as a service so more people can try out and enjoying meal and a D. A.

And the others on how far below our debt financing.

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We have also launched of the power swap station to a point or at the new thing, which enjoys much lower cost and a three times higher service capacity compared with the first of generation. In addition, we have a launched at the 100 of 50 kilowatt hour battery pack, which both 60.

And at the density improvement and can significantly extend the driving a range of all new models.

We used a 150 kilowatt hour battery pack the M. D. C. A range of 87 can reach over 1000 kilometers I Wonder if somebody says system every user can choose to upgrade to two different battery packs on demand.

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Neil is devoted to building a new innovative model off of a battery vehicles, the accretion and battery subscription with a charge both swappable upgradable batteries as well as providing holistic power solutions to users along with the growing gives us states and the expanding battery offerings more of.

On a more users opt for a battery as a service box Inc. February 'twenty 'twenty, one the take rate of spots. Among new orders has reached the 55 per cent, we believe class and news holistic charging a swapping sort of a system can accelerate the conversion from Ice's J D.

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The continuous development on the research of new products and the technologies.

It's the cornerstone of sustainable development.

Well, despite the step up of our R&D investments and feed off of the development and production of core technologies and new products in 2021 of our R&D investment is expected to double and reach around the 5 billion RMB 10, none of them in on the U S. A he's entitled on.

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All of a production capacity has reached 7500 units in January of a partner JC has already kicked off a further part of production capacity expansions in the Hefei plant and the plans to expand of the annual production capacity to 150000 unit.

On the one shift and 300 thousands of units on the two ships to prepare for the production of a E T seven and future products.

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In February of 'twenty 'twenty, one entered into a further cooperation framework agreement with the Hefei government to drink my plan and due to the huge how smart electric vehicle industrial park, including R&D and a manufacturing pilots demonstration and industrial support.

Adding services.

And to be with a world class Smart electric vehicle industry cluster with a full fledged industry value chain.

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With regards to the sales and the service network.

Now has 23, new houses and 300, the screen name spaces, covering 121 cities in China in light of the continued contribution of the offline spaces.

It's a brand awareness order growth and the use of community operations. We plan to open 20, new new houses and a 120, new new spaces in 2021 to further expand the network coverage leverage news of a competitive edges of director of cells.

Consolidating both online and offline traffic as well as improve the user experience and the efficiency of the.

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You have seem to 191 swap stations in 76, a C T.

Starting from the second quarter of this year, we will graduate the point the power swap station 2.0, which offers a better experience with the lower cost of our target in 'twenty 'twenty, one it's to ramp up to.

At least 500 the power swap stations in total. Moreover, we will step up all of our efforts and you're doing all of our Supercharging network and the destination of charter.

We currently have a 100, a 27 hour charter stations and over 1700 destinations Chargers, which well reached 615000, respectively by the end of 2021.

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Well the user base grows the placing of inefficiency off of news after sales. The surveys. The fifth thing is also improving Wei.

Now have 31, new service centers and 158 authorized a series of centuries to deliver better service experience to the users.

Our expense over after some of them to service the networks to further optimize offer after sounds a sort of a system.

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Neil Inc debuted a community starting with the smart E B well, we share drawing on the growth together with users the life broadcast of the New day 'twenty 'twenty. How on January nine 2021 has attracted nearly 100 million views.

And the new day, we launched of the proof point of plan and the became the world's first auto company to help users to certify emission reductions and treat hop on credits in 'twenty and 'twenty. One the second use of counsel off of the new user Trust has decided to focus their work.

This year on use of care industry's up communities public welfare and environmental protection a protection the constant support of all of a users is the constant force to drive us to always move forward.

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2020 is an important milestone on the department of a journey of Neil with the use of support and the team's effort. The companies of all operations are back on track and have entered into a rapid development of the stage at the startup.

I'll stay true to a of orange in the omission continued to make a decisive and the efficient investments in the R&D are from new products and the core technologies and further expand of the charging of the swapping network.

And to the after sales service network to provide the best holistic experience to new users.

I had thought that a sofa send the Stephens on without that just all of these searches a day.

Yeah Steven.

As always thank you for your support with that I will now turn the call over to Steven to provide the the financial details for the quarter. Steven. Please go ahead. Thank.

Some of your feeling I went on.

I'll go over all of a key financial results for the fourth quarter of 2023.

To be mindful of the length of the school I encourage listeners to refer to all of our earnings press release, which is posted online additional details.

All of the revenues in the fourth quarter of them well.

Six four.

<unk> opinion on <unk> of one point or two building a stone us representing an increase of $103, 2% you opened the year on increase of 46, 7% quarter per quarter.

Our total revenue and with the two parts vehicle sales and other sales.

I mean from sales in the fourth quarter.

617 billion RMB.

<unk> hundred $46 2 million just on us on accounting for 93 per cent of the total revenues in this quarter.

The represented an increase of 130% year over year on increase of 44, 7% quarter over quarter.

The decrease in vehicles, the Oc over a year.

Primarily due to higher delivery.

The Liberals achieved from more product offerings under the <unk>.

Expansion of our sales have gone through the continued launch of the new expenses in 2020.

All of the field in the fourth quarter.

467 million M B a.

So it's a one 6 million just on us.

The increase of.

184, 1% you opened a year.

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One 2% quarter over quarter from the increase in other fields of the U S.

We attributed to sales of automotive was of a tweak credits.

As the increased revenues you've watched from the home Chargers installed on.

Yes, we sold in line with incremental vehicles sales.

Cost of sales in the fourth quarter was $5 five all bidding on B well.

842.8 meters Thomas the free.

The increase of 77, 3% of a year.

Decrease of Lucky.

Nine 6% quarter over quarter.

The increase in cost of the al.

Over a year.

The medium to the Bod increase obviously the deal with volume from the fourth quarter of 2020.

Gross profit from the fourth quarter.

One of them wrong for bidding on beef.

175, moving the storm.

Presumably increase of one 4 billion RMB from the fourth quarter of 2019.

The increase of.

<unk> hundred $56 1 million RMB on third quarter of 2020.

The increase in gross profit was mainly contributed to increased because of fields on increase of equal margin growth.

Martin of the fourth quarter was 17, 2% comparable Executive Inc.

9% in the same quarter of 2019 on.

Martha send from the third quarter of <unk>.

The increase of class module, what the moving to impart the increase of this margin.

First quarter of 2000 per week.

Most of them.

The full margin in the fourth quarter.

The 2% compared with negative six points of all per cent in the Sim caught up to 94.

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The increase of vehicle margin lots of moving.

Two of them bought increase of the could be the Rus.

On the decrease in purchase price of a certain production with documents.

On the expenses in fourth quarter true.

800 team on performing on the old.

One pound of two simple one many of the storms because of a decrease of 19, 2% year over year, a decrease of 44% quarter over quarter the decree.

Crazy arent extensively over the years of course by the decrease of the R&D expense is related to the easy fix which came too much production in September of 2020.

On the Congress of all cost savings efforts and improved operating efficiency the R&D functions.

SG&A expense in the fourth quarter of $1 2 billion on B.

180 farm any of the storms were presented a decrease on the 21, 9% year over year on increase of eight 3% quarter over quarter the.

The decrease in SG&A expense over the year, what's the primary driven by the companies of all cost savings efforts have improved a portion of efficiency.

Loss from a free.

In the fourth quarter.

971, 4 million on B C.

$142 7 billion, just on us representing a decrease of 67% per year versus a year and a decrease of one of the fox and quarter over quarter.

Share based compensation expenses from the fourth quarter.

$16 2 million on B.

Your line to meeting the storms.

The increase of 17, 6% year over year on increase of 22, 3% quarter over quarter the increase.

On the sharpest compensation expenses year on the east West.

Contributing to the incremental auctions.

I'll hit a bit that can be a grant date fair values to the increased share price.

Net loss in the fourth quarter much more straight line bidding RMB two.

200 to a point.

A meeting of stores, representing a decrease of 51, 5% year over year on increase of 32, 6% quarter over quarter the.

The increase in net loss on over quarter was primarily attributed to the unrealized foreign exchange losses.

What from the depreciation of interest on a cash.

Cash Spanish.

Sales by BOMA facilities.

I'm from currency of RMB in the fourth quarter of 2020.

Net loss.

But about two news other than the shareholders in the fourth quarter.

One fault line been on B.

200 from eight 7 million just on this represent a decrease of 48, 4% year over year on Inc.

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Basic and diluted loss per a D S in the fourth quarter of.

Boss.

Oh fought on B.

16 cents per ADR.

Excluding share based compensation expenses and the.

Accretion on a redeemable non controlling sugars two redemptions batteries.

Non-GAAP adjusted basic and diluted net loss per share of this.

The Bose.

They'll put them on three on the 14th put idiots.

From a batch of the cash and cash equivalents were stripped of cash and short term investment was 42, Bobby on the full $6 Fob in the stores as of December 31st two 'twenty the.

Additionally, the achieved.

Positive cash flow from a push.

Cash activities for the full year of 2020.

On a mall farthest all day.

We don't measure it.

The first quarter of tended to do on the comp expense delivers.

Can be found on 2005 of Hangzhou vehicles, representing an increase of approximately 402, 1% to 454 per cent from the Sim caught up till the 20.

On increase of approximately 15% to 18% to the fourth quarter of 2020.

The company also expects the total revenues of the first quarter could look a little wants to be between seven and eight.

Five 6 billion on B O between 1.13, and one quick one six being the strongest.

This would represent a increase of approximately 438% to 451 per cent for on the same quarter of 2020 on it.

The increase of approximately 11, 2% from seven 8% on a quote off into 'twenty.

This outlook reflects the companys current on the preliminary views on the visit the issue and the market condition.

Which is subject to change.

Now this concludes our prepared remarks, I will now turn the call over a pretty tough took parts of our company cash.

Thank you.

Ladies and gentlemen, moving now begin the question and answer session. If a vicious ask a question. Please press star one on the telephone, especially on them to be announced.

If it were just a cancel the request please press the pound a husky for the benefit of all participants on today's call. Please limit yourself to two questions.

If you have any sort of questions to kind of re enter the queue.

The first question comes from Edison from Deutsche Bank. Please ask a question.

Thank you very much. So first question wanted to ask is on.

Neither of us focus on the premium market it.

It seems a very a.

Focused on that and that's not going to change a would you consider developing another brand.

After the mass market or the mid tier market.

The second question.

It was about the international expansion.

You've indicated that the entry of Europe later this year.

I'm wondering what kind of sales volume would you expect in.

On the longer term.

And in relation to that there's a lot of speculation from the press lately that neither of us getting much more serious about getting to the U S.

Could you share your latest thoughts about that.

Like that.

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Thank you Edison play a question of.

Of course, if possible of funds of CIT enter the U S. A to enter the mass market and the new Brent a is.

Going to focus on the premium market that simply speaking new brand, it's not going to enter the mass market, but in the past a few years. So we have already tried different approaches to enter the mass market. For example, we established a joint ventures of three investments with a G AC and the time.

On a previously all of a share holding in both the joint ventures around all over 40 per cent and now a all of our share of holding has reduced to two five per cent and they sort of gives us more flexibility and a possibility of pizza to try a different approaches such a enter the mass market, a and the way with a lag to be more.

Activity to do this this is going to be part of all of our long term strategy.

The that they are going to keep on you could see a true well then a junior in place I also a case to even take a.

Social a fool all of them in the plan day than the back on the books into more of them. The GOP margin at the end of two about the teaching I mean, that's a big.

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The other one so that's a good kind of implicit you tend to toward all of the so Neil edge on all of them from day, one to a died from a day or those that make what Cindy on volume by the team of women are two base. They don't change a tender the Gwen.

I don't want the rents without seeing a trend just as he goes social.

So a gurney sound doesn't make most of the kind of find out what about you say a GC.

Consult with you on how much of the attention to go against you a.

No I'm a high barrier to.

A summary of most of that you've got kind of saw please yeah think of you until sort of a gun on credentialing, a thought all of them to liquids in the essentially the.

To go on the way, we pay down of a nation.

Nations step establish itself.

Regarding the second touched on enough of the international markets or the global market starting from this year, we're going to enter a says you're the market and we will do over one sells on a service network and the European market right now we have already kicked off of the perforations.

Regarding the team set up a product and the sales at the service of network building, a basically covering all aspects of our accretions of and Europe, and they say, it's going to be part of the long term strategy constitute a entered the global market. So we need to be patient in the long run.

Of course, we would like a true achieved significant share say, Inc. Importantly, the major markets in the global arena, but it will require a lot of the average on the time stood at a starting from day, one we have over R&D operations in adult patients in different regions in a car.

Countries about the we understand did the sales on the survey sales going to be more complicated day of away decided to enter different in the regions in the countries and regarding the U S. Market question, we have already kicked off of the research about the the U S market entry at a very early stage.

We have a started about the the possible business photos of the strategy is on the different approaches about how can a we entered the U S market, but are they sort of will require lots of a patient in the world that I guess the deal that they say a step by step central Edison.

Your next question comes from Vincent Lee from Bank of America of Securities. Please ask a question.

Thank you I think of it with them on the management team a so my first question is regarding the margin improvement in fourth quarter, a if I. It's just a the of the contribution from the crazy sales of the core the.

Of course module off of companies around a 15, 7% of in this quarter, a still improve a lot of from last quarter. So a could you give us some a breakdown of regarding the margin improvement for example, like S. P improvement I mean the.

A quarter, a bone closer and you put money in the quarter. Besides of course, you're also a elaborate more on a regarding on the battery supply and also the chips the probably a recently a especially we already see a company with a postpone the battery upgrades for certain customers in two of them. So could you.

The rate of more on these and the second question is also regarding on battery related because a recently, we already see the upstream a cost inflation. So we are interested.

About the the coast the trend in 'twenty 'twenty, one and also a probably just from a rough gross margin guidance for this year. Thank you.

I don't know I mean, a semi where also the fourth of the clubs a yes the.

Vehicle gross margin increased from a fortune five per cent to in Q3 272 per se in Q4 a.

It was mainly driven by a more yes eight on the E C six with a higher gross profit margins deliver.

And of the material and manufacturing costs of <unk>.

Vehicles, a slightly decrease and a back to the numbers I think these a selling price I, where instead of a price increase.

Whereas a 10000 per unit.

The manufacturing of course and material of course a slightly.

The decrease and a two the overall gross margin a.

We booked a.

120 million of them.

M B a.

You'd be crazy sales in Q4, a the gross purpose of all of US Force Protean margin a.

Contribution was 1.8 per cent that's leased to a the overall I'll go over a course of of course, the perfect margin a increase.

The increase in the regarding the the gross per person protean margin guidance in a 2021 a what's the what I can see is a the margin in Q1, a can also be slightly a improved improves by the trends and also large.

As much as in a 2020.

The for the full year guidance I think it's too early for us to to give at this moment.

Ah, yes, a for the Bachelor of cheap supply on hand for back to whatever yeah, okay because of them.

They took a true.

I assume send a take a comedian take on India and the Union shocks of the based on bother a.

The woman till two of the cigar shows the average.

The so far enough on a woman would sound like a kind of on the how should <unk> been some of the gold mines all of them and some time later since on a G O.

That's a good chunk of them they tended to them. They don't have the on thought they got a tilt to the on some good 10 children. She does hang together the.

So we shouldn't kind of himself as a pillar of the lumbar.

The women on the team and Tony Junior and surgical cases of two uses the governments, but Jim the hurdle for bad debt of sourcing.

All of them and Cynthia you can say there shouldn't be in the one assortment of the wheels would share the jet school, a mega pad from the same kind of going on there but at that time.

There was a trigger so some of it.

State of women Q2, the take a young the standard I kind of on them, which of them I kind of on the Sudan, well known cases of the trigger the.

Because of the way it has the bingo I don't know my dog in the future of does it take a function of musical chairs of the go the but instead of going in the on the yes hiccups in the gym and shouldn't but I'll, let you do the against the Colombian caveats of your Baidu turned the corner.

Just a few of them and took a skew on the although the Yo Yo saw you share a take a a pseudo study though to go.

Your line is getting on sort of switching the biggest future chipsets and the IPL door.

The 10th of a woman of the Hood, a whole bunch of communism on in the me a yeah I'd say a mineral title on building the bankers time kind of thing on the me too that I shall excuse from a well maybe two tenths of the sort of tightened up on top of the shoot up in the Ohio and go a battle on the old shield, So a zero sum to stop doing so.

A cheap with a true traditional a me too we had a gel for the soda on balance sheet from loans.

She's a robot.

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Okay. Thank you for a question click on it.

Regarding the chip supply and of the battery supply a of course that they've had a very big impact on the of a supply chain of vishay.

It's also one of the a constrained so far for ease of a second quarter of this year.

Of course, right now we have a sufficient the chip supply to support the normal production, but it is a changing times, though the situation will evolve gradually mm for the second quarter of they secure we well do have a some risks of regarding the chip supply, but starting from last year.

Of her team has already kicked off of the communication and a collaboration with a free supply chain partners to secure the sort of thing of the cheap a wave.

Even have the some director of communications with the chip suppliers to make sure we have a sufficient supplies of the chips that are we believe sales for the second quarter. A we should have the the chip supply to meet all of the basic at the mountain to about the risk is still quite a high regarding the battery supply. This is another a constraint.

The full offered a second quarter performance and we do have a some limited the supply is regarding the 100, Colorado, a battery pack and the other battery packs, a which is actually less than offer the amount because the right now of the market is a actually quite of a.

A booming and the food starting from July we believes that a the battery supply shoot to go back to the normal level and meet all of our of demand and so because of the constraints of the battery supply and the the chipset to supply a I'll say a production.

The capacity will kind of of the limited a in the second quarter to around the 7500.

It sounds like there's a tension something they want menthol on maybe somebody and you sell them a junior and some of them. She was on I saw a hudson and kind of dull woman. The density of something a meal is yesterday I jumped on the kind of employees on truly I sat on the momentum and somebody who's on the edge or the.

So kind of again a lot they want they used a yield shift a few of women.

All of a color you share a hole in the first of all about who I mentioned that the on which I always hesitate. The I'd say together to go say two out of coal. So that's up I mean, we're letting them go from there as of now.

That's what he's a chocolate.

Okay.

For the battery so cost a we believe the impact on the house is not that big a food. This year the cost of the battery will further reduce it to some extent by the way he believes he's not going to be on the launch of skill a bump to the impact on I'd say, it's a quite limited because of we have already locked up.

The supply of a ways off of a battery partners were still at a very important oh, a probably the most important customer force H L. So we have a very good the pricing what did I say tell its battery kind of give me.

<unk>.

Your next question comes from bin Wang from Credit Suisse. Please ask a question.

Thank you I have just one question about a lot of Lytton EBIT.

The sales because actually recently, we got different picture of for example, your peers. You also have a pretty weak guidance. However, the day.

Guidance.

On the upside of especially the March has been reached a new high for a meal.

We're also facing the competition from the test time with a Y K a.

We need that but what's happening in the near to the on EBIT man, it's good or bad debt. So it seems that it's quite confusing and Meanwhile, you're supposed to be quiet pass up on a second quarter, you kind of about seven point of bite thoughts on.

Some of it's not the guidance for a second quarter. Thank you.

She's a ambien took a trigger a so so let's take.

You're part of life or take a kilowatt enough at the ease of use of time, they sound like lots of the Biogen figure it loves the human it says it all but we kept a according to NPD hits himself on both on me on that you said you saw Q1, a lot of the bubbles on the contralateral, mostly all took a team on the sale we paid incentive fees on the.

G. The had a change.

And thank you a being for your question and normally speaking the first quarter of a day here is the low season for the EV industry because of the subsidy and the other policies.

They adopted a more of a white off on the chest, Virginia, you got a yes.

The common take a a cigarette took a symbol of having a good time is a good job for the day.

The common that did a bunch of the demand on the cigarette in the you guys. So you'll have to put at the mountain and say similar to one of them on the <unk>.

One of the tenets of our husbands of down one day.

Hong Kong, especially when you kind of still going to keep them bad debt.

And then you probably have a gun to come see the wood agenda, you get the amount of the things out too.

Woman Bruce in the domain who's with us of anyone booklet from book.

Well, you sort of jumped out of 12 with us, but didn't dial a whole digger.

Hold on well give you a triangle of pushing a lot of women boy, it's been from somebody who got my true for them to make a somebody to go tells the same way.

Consider the shoe the combo of Amanda Fool on law, a combo of them in a young guy Jim I'm going on but the Unicorn Kobe true Buda when bought up and down the demand how much of a large element of proto illness with boots on the data that they had kind of a minute ago.

Pick a geography on Jameson, yet that the amount really depends on some on.

On a dollar down on a whole bunch once a day just hung she does on when you ship a total of about I always think of a bus take a.

So I mentioned the other than the team done to go past that big of a ticket to the take rate and thought about it until we're sure on the noncash.

On me, David that's a good takeaway that the Enzo a complaint about a lifetime of a one on one.

Linda we cut it down in Asia tend to be a lot of the woman the hurdle of them and they took a slew of shoes, the tongue shoot us out of it.

But on Sunday, so all of them.

And go through it comes in a little bit of don't ship up with somebody in the mail to the Soc.

So she's getting a nissan rather than a bunch of any signs of a thought.

Yes.

Motto why has the announced the their pricing for the locally manufactured to a vehicle, but this is the normal strategy on the practice of a test on normally they cut the price and then they can boost the the order backlog of all of our approach is a quite different from <unk>.

Because of the way with like a to make sure we have a stable order performance instead of a day so I.

And I'll send it down say in the order a backlog of.

As a we don't actually want to cut the price of CIT, a boosted the order backlogs and so it's a quite different from a test that was actually a focus on the services and the experience the improvement as well as the building a positive of word of mouth reputation in the markets because the way do not want to.

On a cut the price and because of the of our strategy of we kind of a cheap a very stable and solid the pricing with all of her of products of which it will also help the waves of the gross margin and the vehicle of course Martin a just like I mentioned the in February the box take rate among the new orders has reached 50 a M.

Five per cent and days of growing every month, so a ways off of a unique competitive edges and over a long trend a capabilities of we believe we should be able to secure a strong footing in the marketing that off of being affected by those the short term strategy of the end of practices to the army.

Your next question comes from <unk> from Morgan Stanley. Please ask the question.

A lot of new management team congratulations on the sort of at least out there because of all items of <unk>.

So I have two questions.

On the first questions on the Sip out of Pico sales pace here because on the same tower next model E. T sat on a long kickstart the till the retail next year.

How can you go to a medical they grow the vehicles sales in 2021 a.

And whether there'd be any spec upgrade to a major module a facelift on top of the graphs of channel expansion plan the bus program.

My second question is about on a true called names have a some kind of new house.

Because I remember something like a last year, then you shouldn't be a house might be the last class of fishing.

So could you elaborate a.

More about the key cluster of ratio when deciding to initiate the deployment of their house and a what would be the overall investment and the addition of operating expenses a.

To scale of the coverage of the New House a based on current estimates. Thank you.

Oh, so you hit him.

So the E T seven of our sort of linear you should go down on that.

I'm kind of a pretty thorough the until there's a big one so I'll take a cut as a day.

The people think Oh, no kind of a season. So it goes sort of pursue a flow type of op.

Say that since the I'm sorry, so on the debt.

The two seven debt to adulthood.

From a <unk> throughout the call they've got yes bought yesterday, who used to do at the time from time to do a.

A couple of them and you figure of the Honey is a screen intuitive and kind of a dull cool yeah. The biologic opinion a sale.

All of you opened up all of himself on the to go.

So that's a change the so you guys seem on the yes.

But you have to deal with a lot of excuse me a suite that you're doing and the you guys have on it because it's all of who that says when we go time, even though it should adopt the lifetime of a hot someone come in at a loss of faith on you would seem to me the time, she now, especially on some of the other day.

Take up of life again on sort of has at times a play on that what it feels like somebody of the Hollywood Associates, who goes in the meter so you're a woman William Wei took a bad debt.

A woman to Institute a tissue take a picture on what Michel if they send it to someone that you can change the easier part of the guide.

Okay put down a certain kind of it anyway, if I may end up on a woman.

All of that champion is a sort of a woman say somebody on a lot of law of minutes out of social flew on growth on available to the interested of course that to most of you got a fit on body the suit.

A Google of them and then go a.

So I'm sure awareness of both of them. So that's useful.

And then go shoot it seems to me the phone call of a guy who didn't guide to.

A minimum of that they sold on a Houston, there's hardly a shelf a.

It took us a women's union Dominion say a.

In Q2 of the times in a multitude.

Keytruda tissue take a bet that it took the conditions of the chin women throughout the <unk> because of social for a boarder took a quota she and a quebec to take a.

So he's a social that should only see Oh my God the fidelity of a season when some of you that took the a social mobile and then go out in time, the only way do you know how many doses of all of them at a bar.

Oh on the Baidu D N a.

The adult food.

The the way they.

The the old putting in the pool.

And then the shields, who are coming up against for the two.

When you go through the I'll call the either the Youll know when what kind of the the trend that you. Those of you got a little quiet a so you see the two of them and some of them down as you've heard of adult the lifetime of a home instead of two other 10 industrial has the coming out of it that way the shields.

Well many of the defense is a line that's a good true Jim now up into the bomber all of these haven't union the $10 a shutdown of a single a downtime of the dental school on that'd be the on a chip.

On the auto steel matters of the Paypal.

So you will remember Tayo Philadelphia on a go to Chile on Pimco.

The San Diego to Union She's the one day you could sell now I know what a machine that is a good.

On the mobile a minimum wage so we'll go to the shoe children.

Thank you have a team for your question of what will start of the delivery of the interest seven of them from the first quarter of 'twenty and 'twenty cheap. This means a will have a lot of the perforations to do before the after a launch especially in terms of.

Thomas driving technology, So we will need to do sufficient the testing of the development work for the autonomous driving technologies.

Starting from now to the delivery of a two seven a well.

Many of you rely on the three current of the products, including yes, a T as a sex and the eats a six of food that sounds performance a.

Regarding the it's a six is actually launched a around around the September 'twenty 'twenty and for the on U S. H is the launched around March 2020, so for the E. S. Six it's started to the delivery.

As a from the second half of the 2019. So in terms of the product. The lifecycle of we believe of all of the three models that are quite competitive in the market compared with the the gasoline cars and the other EV, we believe a before the launch off of that.

N T 2.0, we do not need to have the significant the changes on the fifth wave two of a current three products, but on the other hand, we would then I go to further expand on it sounds in the service of network, China is a very big market. So we will still have a lot of opportunities.

If a weekend for the improve over in the infrastructure of beauty. A this can also help us a gene proof of a sales performance starting from this year to next year before the launch after the E. N T 2.0, well many of them focus on the it sounds kind of service and network and experience the improvement too.

However sales performance. So we're quite confident the data should be able to help us to achieve from over it. So targets at the same time. We also have a kind of as a service and the 100 kilowatt hour battery pack of delivery and this is going to contribute to the conversion from I C. E to choose the vs are aware of.

Witnessing the trains a is accelerating from this a conversion.

We believe all of our main competitors of ours. The gasoline cars are the thing pricing level that is around the 300000 to 200000 RMB. So.

In 2022, as you can see Audi BMW and Mercedes have achieved and the sales of new highs. So it means that the this is actually a very big market that we believe all the products that are actually a much better than their product. So it means that the we have a lot of opportunities of we also did not have the <unk>.

A very aggressive as a target because of we're not going to so a hundreds of thousands of vehicles. The in one year or so we believe the ways the over kind of in the sales target the way it should have the the comprehensive to a cheap on the objective.

They did go on in Kenya House of the postcode, a Saudi a into a loft, even if the guidance hi team I went on to elaborate the reasons why we bring me a heart attack and the day cost efficiency of all of the New House and I would like to remind you on the three key functions off of me a horse first it helps us to convert these two on.

Argos and speed of the deployment.

On the brand awareness increased our use of touch points and second New House also represents a very strong brand presence and crazy investment into the ground communication a real.

The conducive to the long term benefit of our brand.

The.

The New House is also very important for the use of system and all of them.

As a commodity and also on other hand, we have accumulated rich experience in a <unk>.

Writing offline stores and the better come true the satisfaction county, and a cost which significantly lowers the investment and operating cost per sold to give you a rough number. The average store investment is just 40 per cent of the original and the average run on the operating cost.

You just half of the Wei original.

Sun care team.

Thank you Roland.

Your next question comes from the fly from J P. Morgan. Please ask a question.

Yeah, Hi, good morning from JP Morgan a great.

We saw a couple of competition. Indeed, so to a simple question on first on Neil of autonomous driving solution. Yeah. You mentioned on a new set the amount of which will be equipped with a a supercomputing solution and a qunar simply sensing capability I wonder whether the two solution will be a will be useful.

The 16 modules such as you see.

Yes, if you if you're a six.

And if so how soon can we see this happening in the future and the related to this question is yeah is it fair to say that that will broaden a monetization strategy beyond the basic metric of the service and to a more and more of the.

The service in the future and the second question is related to volume you just mentioned about two true monthly capacity of production volume will be somewhere about 7500 by the same type of you also mentioned on the Tracy is expanding capacity to a 1000 fund a 150000 units of capacity on a single shift basis. So.

Moving into second half of the year and hopefully the couple.

The the supply bottleneck on battery and the chart on the energy.

<unk> can be a can be solved and how should we assume a bulk capacity a monthly monthly production increased interest second half and the.

Also related to volume questions. You just mentioned that the T seven a piccolo.

The older is young.

All of us patient a what.

The assignment because that means a plenty for yourself the newness.

And the thing and kind of it won't be a appreciate it. Thanks.

All of us at any of our.

They took a day you go and teach us a.

The only on women E T T. A S. A woman did you quite a thought that indeed two of the tissue that's hurt the.

How are you on the woman satellite that's a the way to you in Q2 of the figure of P&I true cut, but I don't think are convinced of the garage.

What's the sort of my suddenly you get a shop and a woman can then take a sort of back to go to a Viking terabytes, the why behind that.

Don't think of a treaty the sick of me you down into the thought is the most of the damn quite a thought that it until the bulk of them a whole series of time in T. A Y O Y solicitous of isn't bad season continued but the Tel deal.

Thank you for your question a it's just kind of answered the first a model Jade on top off of the N. T. 2.0 of course of all future models of wealthy developed a based on the Neo technology a platform to a point Don but the we're not going to kick off with the sport.

As soon as possible, but it's already in the pipeline for other products in the future of models the way well a leverage at the latest technologies and a well share ways. The more information a with the everyone regarding the product the planning and the product portfolio of at the right time.

Now I'll go into each of the idea of sort of is a well.

Let me take a chunk of it into the AEP that the Gulf War Dolby on team USA the phones, the choose a choo Choo Choo take a.

Table on the figure instead of to me from a sale.

On a dollar of the Alpha beta a.

The only thing that they don't call I saw a ton of these so called the edge of somebody who sold a bunch of other.

Why isn't until a without a school either done instead of a question side I'd say the ethos of the Tcf you pushing the sulfate is going with both of some key the on the go to the either you know anyone who doesn't make a superb moshe a not a theater you don't quite a bit on per se I bet, because so many of those she used to repay debt.

I'm, sorry, Louis assuming and assuming a dose.

The soon any menu both of them go to take a.

A total GLA of choose to go a there's a whole true. So we'll see a something of a dog a lifetime of Oh I'm in a way a day of the surveys of hard I think the two when you got some good at sort of I mean don't shoot I think of the top of that itself had a soda machine should be seven day that they got a to go in Gulf of can call. The court approval of a soldier with it so it's a D&O.

On the a well maybe about your cash and there is some sort of a cloud authorities are a problem.

So the myself at the highest of the way I suppose they got a will go as the.

As a Muslim from one of the avian flu not too because you can see the colleague of inbound. So you wouldn't say a navy or something if they generate a true true when you go to a subscription the pool so the.

The elements of that battery as a service that you didn't give them a bad because since you won't lose the range is who's on the generally the food pumps for the.

Oh for the a D. As a service. So we believe that this is just the right the direction because we believe in the future of all of the 87 cents a share. They provided is true the subscription model because of its going to benefit of the users and the from the technology a point.

And he is also quite reasonable and the Super Bowl compared with the the Adas is a business model. The a D. At the survey said they see the photo is based on the installed base. So you mean that as a one users of the lifecycle is affecting your is it then a we think the 15 years of ways, you're able to generate the revenue.

Based on the age of the service business model a.

In this regard the weight believes that the age of the service model is much better than the traditional Adas business model.

If you look at of the crowd the service business, the I like Amazon, Google and Microsoft and other domestic players in China, a we believe this at a day of the survey is the subscription model is going to be a very good the revenue a strained fights that is why we are going to be quite a decisive to from.

Out of the business the motto and the subscription model and from the battery of the some of it. So we have already learned a lot of experience and the confidence and we believe as they as a means of that the user should be quite acceptable of regarding that a debt that service.

So none of that wasn't a way in a day as a service of a phone call I sort of pay the box where do you sit inside of the take rate of couldn't go that's L. A and then go so you got sort of a chance I mean don't shoot ourselves with a condom.

Let me take a day one quick thing Youll call six times haven't seen because of boom you shouldn't the halt of the two using 70 shop a woman.

The way to think of can conduct calls with you the most of them.

For the ATM the surveys.

In a nutshell wait till he said that take rate is going to be higher and they can generate the revenue throughout the day user lifecycle is all going to be beneficial for the user it's a.

And we believe the its a also going to be a very good the business model and it's going to be quite a sustainable there.

So just under one of the teachers.

At a time, then well do a hip would come a finger of chicken of.

Just on the U S and battle of Chicken will that at a time going in and kind of weigh on sound out of yourself with somebody on a trend going in there on time on but once a woman with you all when we take up with some took on with harmony controller of Limbo gender Cornelia known bad I think of them be a figure on the east a switch from bringing in a minute.

None of that trend yet she agenda on the figure a.

Hooked on kind of a tandem income pretty.

The time, though you can one of them the team with Hughes from well Michel I pay a to go often times a day from Butler from the Japan, maybe a U N type sort of a sometimes the meat that's on the honestly the well tell me a sound logical sort of saying Oh boy I shouldn't say a bubble.

And you said going on there.

On a pillow or my Hudson on both of the chips in a what I may read a trend going on and they're doing saw.

Some of the telecom so that you can make of that pay a tiny one pilot is the appointment of performance of them. She's on will that sort of a sense of well maybe you can share of some types of the so I'm going in at a time then you got to choose from kind of like a.

Not a sort of a 10 minutes out of a day to say that the a hometown senior but of course, then to go where the which would say if we're talking a lot for the adult men the millions who previously shut in on.

Best of why somebody the size of limits on them.

Yeah.

I like a shoot them provide more information regarding the a production capacity we have already achieved a 7508 units a protection on capacity and generate from I would like to explain a little bit about the death of a supply chain production capacity comes on.

Because if they sort of covers the boats over one from and the supply chain production capacity during the spring festival of the Hefei plant has already kicked off is there a per.

Production capacity of ramp up and so we now have the capability to produce the a 10000 units per months by having two shifts in some workshops. A however, just like I mentioned, the because of the offers that constrains the answer the chipset supply entered the battery supply in the second quarter.

It may only be able to secure a of all of the supply chain production capacity of the 7500 of units of 10 months.

The starting from July we expect it to elevate the of our supply chain production capacity and it's just like I mentioned before for a partner JC has already kicked off is there further protection of the capacity expansion and so that's a probably the annual production capacity is going to range at one <unk>.

The 50000 units on the one shift and 300000 units on their Tuesday of.

By the end of the cure of the beginning of next year the.

So John's got you to each of seven that's a good thing done done take a woman say a uhm Hyundai a.

Tend to a shampoo Casey routine on the Oh can you sort of a sort of a woman if you chewed up the all the chin instead of a firewall you heard of Garcia on top of all of them don't call you kind of go through that sort of on the balance sheet of a 10 vessels a ton.

It is with all of a and then Hmm as all of you tend to put people on the treaty that the vendors who some of them.

Now a mixture of focus at Gulf of Suez, the south than somebody like sort of a DTC the belts and sort of your claim to the Sioux City on Bob on the New Pizza, you sort of took a ormolu it ought to be on a sense of helping them on the new chewed up.

And another question is about a day to seven order performance actually a good Kevin what's the available for order a than you know a day and on generating 90, 'twenty 'twenty, one and the interest seven order backlog performance has exceeded all of them.

So we have a right now, but we cannot disclose the specific information regarding the order backlog of over the back of two is just a focus on the delivery performance.

Net of all speaking of.

Regarding the pricing of the G. Seven is the around the 400, a 48 of thousands of RMB like this kind of a pricing with the belief that 87 has the affirmative firewall in terms of accumulating sufficient order.

Sounds good.

Part of she said William.

Yeah.

Yeah.

Yeah.

Your next question comes from Labor, Inc. From CIC. Please ask a question.

Good morning. This is a one way speaking from sales you see I don't see that as a very strong in the early of course and out of a strong first quarter guidance of one follow up question about the a the joint venture of force. William just mentioned 55 per cent of the Czech treat could you. Please going from what is the capital of the status of the true adventure and <unk>.

How many battery a substation this company kind of supports theoretically thanks.

Oh this is the only.

Woman pick a bad to us as the go through just to take a a share.

So the more channel of meeting one similar down on the Muslims Louis.

You only youll take a spun off with them.

Neil you're way ahead of it should go towards the the tightening of as opposed to the end of the phase I qualify that took the total and now well of many each and a one from a sofa.

Yeah, the Sui the NIMBY the towards the instead of what they can take a a joseph a.

Net income figure that's all true.

North Korea, a total instead of all of those although a few of them and go through and Diavik a totaled a little north of them.

Hey, you're a hurdle that the June you can kind of.

So it's in a well then.

To the tens of feet on boots were the only part of it even from home to the pit on the I feel the tool.

The Evo comes on the P D, but somewhat of a lifetime of a on the take a a battery of the surveys the big on most of them of a control of the to go from like a 10 system and going to the proof of income in a well Miss a onetime pushups into a good.

So much of that kind of a take.

Take a hosted a surgeon.

The two sources of growth.

Thank you your line for your question regarding the battery asset management. The company. We have already finished and two runs off of a financing right now we have the eighth of shareholders, including meal. We have already raised a round of a full point of full field.

In RMB.

Brian on many new investors type of approach to me in the us or whether it's possible for them to investing the battery asset management the company at the <unk>.

Same time, we also secured a sufficient the credit facilities. The from the bank of the battery as a management company and as a very important to a player or a very important a role in the battery as a survey of the business model on the battery as a company has already secured a sufficient cash to support to the space.

As part of a accretion it comes at a time.

Joe for the attach rate as a sort of instead of your own quota how come is a quite a b make a done the deal of Hawaii, Dick Wei a take a single one of them something done sometime a sort of how can the way that's a good it's good.

You should think of.

It's a good to go so goes on communicate quite do you think of a yellow you'll want to debt.

So that's also a bit of Samsung.

But in terms of the the.

Penetration rates off of the batteries the amount the battery as a service of users.

The delivery is going to be a later compare weighted the orders because the and we have a a make to order a business model. So the first day, we have the age and the attrition rate in the order backlog and the then they said well be gradually reflected in the delivery of the batteries to the vehicle.

To the users.

So you have all of it.

Thanks Liam.

The next question comes from Paul Gong from UBS. Please ask a question.

Yeah. Thanks for taking my questions I have two questions. So first of all he is ratchet down on the idea of a pump cells. A do you foresee the lower tier cities a increase of them into be they a careful of course for us.

Pension and the how do you think about your expansion of networks and so your ideal mix of the cell site into a tier one tier true versus tier three cities and South do you foresee true a graduate of moving from tier one phone of course into lower tier cities in the next 12 months.

On the second question, it's a reality and the autonomous driving system a development for.

For the U T. Seven August a day, you'll have puts out a ballgame with on tons of very powerful hardware on the vehicle and for those who choose not to a subsequent which day.

A D system, where you'll still puts the same hardware on the vehicle or whether you choose to upgrade the fall a for the later stage when they choose to a subsidy crush that and so if you put such a kind of rebounds in pottsville, Although I got from you and the cost tend to be higher and so you know a strategic next steps on lower.

Margin on the cross sell of some of them try to monetize the its a true they are a subsequent option the latex sales so far you've seen the volume done later life of the stage of a the whole vehicle. Thank you.

I would say to a part a so so.

It's down the hall with many of you decided to go a long a lot forget if I'm in a high dose would be the TCE. The a woman a schindler ahead of all of them the near a house when you have to face the gym forgot a lot to go on your biopsy you got from shut off all of them that tune you end up on the take a junior end up on a tick a job all of New York space. That's a good forgot.

Yes, what element of junior wait sort of thing to us of the near a house before you by the way like we did well mean, a chip and that's called the outdoors.

A P P a lack of size.

So a bunch of armour Oh do you collect the size of what is a pretty opens up on the idea that someone for the type of a Saturday and it comes a little I mean, you didn't go quite a true can you go on when they change out is it a change out of you go I'm a debt, especially when we get a cheap and that's one of the.

The one should not take a which had a woman she's a take a took a cigarette some good how're you reshape of our mail forget all of that there's a.

You don't want me so I can start opinion of how can they get on the European data.

If all of them get on most of that I'll answer the so you've got somebody that's a little how you deal from both shows a day since the Simpsons.

Thank you Paul for your question a impacted we have always been quite aggressive in building and extending over the south a network just like I mentioned, a we have already got them you know houses on the new spaces are in around the talks a C Ts and.

The starting from the last year, we have the accelerated the expansion of of the new space at <unk> and in 'twenty 'twenty, one we're going to do a new 20, new New house at the end of 100 of 20, new spaces of our basic strategy of a principal is a cheap due to over a point of herself.

In the cities that has a a dealerships off of the BMW Audi and M. A C M. A C diesel a lexus and based on the basic principle, we havent achieved the full coverage yet in the seat. He is a by the way believes so with all of the average stake here, we should be able to a cheap.

A full coverage and a pool of our existing new houses on the new spaces. We already got the some are in the tier three and a tier four cities that's the one.

On the last show them install meals from a club together.

The sorts of Venice and them on a full bore that native on pull down there you can kind of on now to go from food on the abuse of times I'll take a shot on goal in food.

Food is a good shows a full on looking to go forward I forgot how is the kind of drew to take a a golden sort of the to go sell down on it to go Chu from bullshit naturally negotiating.

We do not have the specific tactics of regarding well share that we have with the new houses on your status as a more driven by the sales performance of for example in the a Youns a river Delta region. The sales performance is quite good interest.

That is why we decided to do the the new houses and then you'll space a say in the region and so of all speaking with a guy go to expand over and some of the network of coverage in more cities and more areas that you know you got a crinone Yo Yo Egypt with you on the device.

So Tuesday on Waldorf on them in a bogo a token of all of all caustic a.

On the take a more do you need from them on a little.

If I may a well known ways of getting jobs, well take a U K on it even change the hsp, we saw many of them quite a feeling down quite a huge onto the box.

How many channel so Stuart maybe they've got and she made a bunch of TS was supposed to know of a junior weighted some day fish at the.

So the so it's kind of a woman fall off like a job I get a rule when they use of a soundbite because of.

A diet soil to be found again on sort of your own core Dorian Guy kind of go choose don't even guidance.

So in day of how that's yet a.

Hello, Dave on it.

Take a stand on sort of the go could you just help a golf E Mail. If you found that they go on too.

Again the go to again this is a lot of women's so the guidance that day one.

The change in Colorado to.

Take a sort of a commercial can tender had a young.

Because of the compelling per head of young people.

But we would like a she didn't move a charging on a swap in networking in the remote places so a remote cities, especially including the supercharger network and the destination charters a stamp on the website go to deploy on for a charging and swapping.

The network a in inner Mongolia of Heilongjiang and the other remote it's a Ts and you'll also see she said they do not have a very good infrastructure. So they need a starting from this year, we're going to a ramp up of operating infrastructure in those types of places and all of a principle and off of a vision has always been that the ease of use there is a.

Can go everywhere with a very good user experience. So a we would like a cheap because the though the C. G SIB because right now a the cities do not have a very high EV penetration that is why no third parties, who would like to view the the infrastructure in the cities by the way with like a to start the.

It's worked for the.

There are a need just a you can see the ADR. The surveys of the woman shows the you can get a soil with the city.

In the gym those of Bill pay at the time that she is a fund me of those a delta here a bit.

So a woman being pool Wei.

Yes.

When does it go the social more sort of say told for the some trouble yourself to soar.

So you just saw a double but how does the play.

Also a harley.

The put up to go all the that the social the social and put them on either side of that is what all of them in a way a pattern gotcha.

Some of that you'd go back not the Toyota come out of you see the Holly the target for the only true if I pick a time theater on bullish it's on disabled.

So instead of a lifetime of the on the Oh shoot a a theater.

Is it a service the Sogou first of all of a longtime day you'd go a you've got you got you got a multi the to go a layer on a day cigarettes. So you got some cuts especially of the moisture.

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Regarding the a D as a service a M E T seven the hardware, including new IQ as a per sensing and then you add on supercomputing Oh, Yeah I'll come at the standard on the 87 a thought.

We're not going to a lower although theres a gross margin just because of we are now using the age of the survey of the subscription model wherever they like a true still a reasonable vehicle of course marching at the time of the cells.

They will have already said that around the 20% is the reached a reasonable on a vehicle gross margin targets. So we're not going to lower they sort of target a before.

For the end of a D and we believe that this is going to make a long term contributions of two of a although of course marching enter the vehicle gross margin.

Central of Hall.

Thank you.

Your next question will come from Jeff Chen from Citi. Please ask a question.

Goodbye.

It's on holiday.

Yes, Yeah of course.

From quite a bit of a jewel of languish LNG, you Gotta do share, which I wouldn't make a N O P who any of the boss of the attach rate.

As a go a true Uh huh.

I'm joined on the N because you've got a patchwork of course or somebody on the Yahoo. The yoga when did you ship a you mean, the there's a lot of them out of a mishmash of her holiday of collateral shifting jade so each of the quarters, our teach out of about how he got Ya.

That's actually true.

Sorry, guys, who is the channel without her.

The somebody out of you're going to make a maybe a year the Hugo.

The chipmos.

Not particularly on or maybe there's a song which of course, Oh P. R. A T a boss of the.

Penetration of what the attach rate.

I'm sure that the on Nevada, She could go on.

The body the.

You got the ships on the younger Oh sort of who you go into your sort of hard to true. They show you on line.

But what does the Michelle is usually a serious of.

The hardest she said with all the time.

So a doctor or yourself on the ligands on the on the voucher they understood. It budget a balance you shouldn't have.

Especially as you go from you shouldn't made some job you've got the on the CAGR out you'll see that Australia genuine children of Joe Boshart because of the subjects such as per the washout. What you could do them you've got a range of estimate you might take a shouldn't get a P. I should've going a P. J I didn't totally a short part of the months of a hole that you were sort of a little on Boswell casually ampersand, a volume CAGR that's of a balance.

So you really you go a meager bouquets of scenario of Jacob Kenosha, a equivalent bush or a legal per cycle.

Without sugar per cent of the CAGR on Saturday of though a see a doctor out of it.

So I got three questions.

What is the a Nokia on baas attach rate in a pause right now in the future.

How sensitivities as it relates to the a GP margin of the earnings. The second question is a range of estimates of a full year. So sales force target. Thank you.

Oh excuse me I'd say the tip a parcel of the take rate on the 10 minutes all of us in the tonnage of the other one of them against all of the Shaw I'm a meal pilots of the hall of all of them in any way sent a yada yada yada.

The good things about hydro he goes from Paypal on a number of them instead of on that yeah. The boats out of its either on the top of both the.

But the wishes of what Youll see.

They go on Ohio is a whole gummed up to the you're hitting on what type of hold on.

On that ship if someone is on that sort of on a couple of weeks that we'll shoot for yoga.

<unk> has found a Saturday.

They don't go attack on them.

But even the corporate how you're on your own a woman's egg.

Didn't see it up on the hydro and then kind of.

All of it yourself of the season as a male.

From a probably there could be a part of it you can see.

From a took a mean gotten to a food oh.

Yeah, a passive they use of the moly do the positives on the multi day tickets on teams on students on a male.

The value of a softball.

Coming out of India.

Yeah, but that's even those on making the case did have some savings on based on what you can share some time ago things a.

Samsung a excuse me a good now.

I'm a little Kid Donaldson is the way it's been got to come out of the Oh, a woman who a couple of them out of Houston on the.

So just as a part of the the take away that the of course, who you'll sundar can you sort of she's going into your guidance are you now.

How does the the woman.

Okay, just sun I think a you know what I mentioned on a bolt on has a somewhat in two of them a number of yoga class of you'll you should take a P. D that Houston can you put a woman a junior not quite sad that you see a hole on the page on the diesel you know what the deal somebody gets a young man or woman.

As you know a bottler in Boston that she's on.

I know you bother you on cool a male shouldn't draw on to go a machine no I'm Danielle query share.

On the holidays, the IP you often see that isn't a.

A lot of it holds on the Yamaguchi San I'm Big on soon.

So even without near a pilot a woman.

In China on until they hit the homes with a shovel has a good quarter instead of.

Yes.

She took a harder you a guy there are.

Two things out of them. The overall the to the margin to go from a hold on the young with how it's in the order of the math of industry.

They are definitely a katanga the EBIT.

I'm a hum Joseph.

Well I mentioned that as a sort of a chunk of moving in the economy. That's hung vignettes on many of that kind of on the top of the autos on the two channel will choose so they didn't see nice job on yet demanded a change but that was sort of a cds in the on the ginger and a chance of types of Cheesecake [laughter]. Okay. You got a take a tomorrow just on.

The same day this is a.

Some of them a total flu on law, Iowa, the funding on done a ton of the underlying to even pull through on instead of a phase I always change into a true Jorge the concordance.

You got a.

Somebody gets a wood.

What does that kind of as you thought you'd go a hoodie that you got pay per a lot of women audits a good opinion know of them until all of the normal has the on the Daniel couldn't go to mobile tends to take a.

Sanitize all true for the.

She's the leader.

I think that's a thank you Geoff for a question and just like a when you mentioned it before the take rate off of thoughts of Mount on New orders in February is around the 55% a.

Regarding the new pilots, we have a two different packages of one is of the full package and the neither one is at the selected the package.

So the blended take rate the off of the new palette with phase two packages of states around the 50% of.

We believe the for some users that they would like them to choose a to install or activate some of the new pallets of after the vehicle purchase. So they say, it's also going to help us to increase of the take rate off of the new pallet, but a different people have a different the preferences of we think.

This is going to increase so to some extent, but it's not going to be a very significant jump for a debt battery as a service and they say, it's not going to have a significant impact on all of our gross margin for the impact I think a he's going to be quite a minimum and the MLP is going to.

Contributed to a very of course margin and it's going to be beneficial to the of our gross margin is the take rate increase off of the MLP is the one of the reason to that debt. We have improved the overall gross margin and the full package offer the I don't know if he is a priced a 330.

9000, so they say, it's going to be a very good contribution to the gross margin and starting from this year, we're going to see a focus on expanding to the installed base because right now we have already got the 88000 to users so half of them.

I'm, having a after the full N O P. Yet so we would like a to provide the some innovative a model. So plans are for the users of for example, we have a a try to some financing models the food the MLP or new palette. The true the users and the received a very a good to break out.

Mm for the opt to sell of the installation of a the MLP you activation of the Nokia They say, it's going to contribute to the although of course margin instead of the vehicle force marching on.

Another question is about the the all of our supply chain and for the first half of the here a way with like a she that'd be more conservative on to prepare for a production based on the 7005 hundreds of units like I mentioned about the for the second half of this year and we're quite confident about the debt the mountains.

By the way it did not have the of course visibility yet and we will further expand our read of thousands of servers and network as well as all of a charging and the swapping of work with the waves of this kind of help us a true in proof of this outperformance and a they say it's going to help us to achieve a much a higher so let's say in the.

The coming second half of a day care.

Think of it yes.

Our final question comes from Fei Fang from Goldman Sachs. Please ask a question.

Oh, yeah. Thanks for the opportunity of congratulations on the strong performance cause a quick question on about the power swap station build out.

How do you how do you start a class of a footprint how do you a truth location, often do a shrimp consumers will.

The using the infrastructure on a per vehicle basis on the long term how do you think about the sorts of Lifesize for your power swap networks, given the strong Pos of option.

Oh, there's a to go from a to go a woman to their facility.

The hold true on the due for a woman to take a since the depth of William quota sorry, if someone gets on a job or David on calling them from them. So I'm going to take a twin getting drunk scardino on gone from them from the Ohio took a young.

With that you just took a part of I think a three out of the good things of that Louis and I always thought of as they go on the June quarter to go from pool or the Yo Yo even with the embankment.

Some of them go.

Without this you pick a location.

As a uniform.

The town of hit to the other you share that sort of thing to go to a sort of true the film a quick check what they share the true. So he gets a yoda down the Eagles shut ins of the figure of.

Wow.

Oh, Hi, Alicia go sort of on me and I'll find out what the other come down a 1 million a day I put homes on I think also with him in Kenosha the convoy.

I'd say the fitness so you've got the beauty of the somebody you got you.

You know quite a lot.

Not a totally a function that like on a hot from a fun.

On the on premises, but sort of Shelby.

We have both to go play a part of the conviction you have to get a like auto home and so she's on the they'll find that it's usually a bigger penetration go the orla shall Ebola Oh, let me say that cheaper then they go on any of them done poorly so you're only a hotel can quite some of them go take a both a good and could either of you thought you. The yeah. I mean, she met a couple of them are sort of makes sense, how about a week.

So the debt so you know down because of the Saudis and figure out the non coal.

Hum.

Hum Zama, well mean something from them got off on the I feel sit on top of the room courtyard Altoona and Dawn on me seven day traders.

Several of them and it doesn't go on on PD is a fit on bajada not only of I see them, putting me on what would be a kind of all of it.

Got it that is longer out from the bombing a pool there.

And P. D of you Jim day shouldn't would've been a dollar something of a formula on the line.

You'll see a swing me more of a quantum dimness ago a salute.

Solutions, a sit down because you don't put a huge all of them.

Some of you that sort of a fun didn't quite again that the the phone line a positive the gods here for a U T. A woman who don't want a little from in the Eagle Ford.

General designs on the tornado I'll, let somebody got some T. The EBIT of Jeff.

I'm not saying from go to you on collateral at the teach out of the Eagle she yet.

Yeah.

And thank you save for a question regarding the power swap a.

We actually provide the services directly to the users and we can half a day informations of regarding the users with a whether they kind of in store of the home Chargers or what's your visa a routine brown and one of the distribution of the offer a user base. So based on on all of those income.

Nations and the over it makes the order of business model and we should be able to a have.

Have a very a good planning for the battery swap of locations and based on the location information of the users of we can make at the optimal choices regarding where should a weighted deployed the power swap of stations a weekend also half of information regarding how of what should be the highway that are frequently visited.

By all of our users is the only can deploy it the power swap stations any of those highways of all speaking the efficiency of all of the battery swapping a stations and the the planning accuracy of the battery swap stations have a significantly improved to compare with the past after the deployment of the batteries.

Reputation. So we have also accelerated debt eat off of the survey the providing all of the service offering to a the users and achieved a a very good performance of for example, a during the peak hours at the battery swap stations. They can achieve the around the 10000 battery swaps.

And right now in China, We believe that the long term trend is in many of the users will not be able to install of the home Chargers and although all of our installation rate off of the home Chargers ease of already quite high amount of the peers, but the as all of our user base of growth. We can see that the this trend is a going to grant.

Please go down so the aiming to that though we would like a two provides a more holistic a power solutions to the users.

In coding the home Chargers of the power swap stations and the other services.

And then that battery swapping and chose without a can better support these part of the users of demand of together ways of a battery of the survey said that battery swapping technology of battery swap stations entered the third party charging infrastructure as we believe a we can provide the the best holistic a battery.

The whole they stay of power solutions on experiences to the users.

Some people are on pace.

Yeah.

That's a no further questions now I'd like to turn the call back over to the company for closing remarks.

Yeah.

Thank you once again for joining us today, if you have a further questions. Please feel free to contact the news the Investor Relations. The T series the contact information provided the on offer a website.

This concludes the conference call you May now disconnect. Your line. Thank you.

Hello, everyone.

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Hello, Ladies and gentlemen, thank you for a study by four new Incorporated's fourth quarter net earnings conference call. At this time, all participants are in listen only mode.

This conference call is being reported.

Now turn the call over say a host Ms Tang from capital markets and if a stimulations Pease go ahead of <unk>.

The morning, and good evening, everyone welcome to the fourth quarter 2020 earnings Conference call. The company's financial and operating results were published in the press release earlier today and posted on the company's IR website on pause.

Today's call we have the Mr. William Li founder Chairman of the book and the Chief Executive Officer, Mr. Steven from Chief Financial Officer, Mr. Stanley True VP of finance and the need state Wang a VP of capital markets and Investor Relations before we can see.

Please be kind of you reminded that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. A private Securities Litigation Reform Act of 1995.

For looking statements involve inherent risks and uncertainties and the.

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

Further information regarding risks and uncertainties is included in certain of its violent used to offer the company with the U S Securities and Exchange Commission. The company does not assume any obligation to update any forward looking statements, except as required under applicable law.

Please also note that Newt earnings a press release and this conference call includes the discussions of unaudited GAAP financial information as well as on the non-GAAP financial measures. Please refer to the news of a press release, which contains a reconciliation of the unaudited non-GAAP.

The measures to comparable GAAP measures.

With that I will now turn the call over to oversee the Oh sneak the women be William Please go ahead.

They're all paid on guidance. So it really depends outweigh the Alibaba E&P should be a deal that you don't have a.

Hello, everyone. Thank you for joining me on the 2020 Q4 earnings call.

I mean on union piece of it.

That's a I'm going to tell from that you went to somebody who's a send out yes bought yesterday of how you say deal the obesity zone.

You bet used the Ibs and the.

What's the thought of in young children from double down on that also on sanctioned by.

By the Saudi on the he joined the Ensign Banner Bank. The Ebags is bang on.

On your U S based on Cingal I don't she kind of awesome, Yeah tell me a thumbs up on the sometimes its up either the telco channel back to the five out on the it's been the absolute.

The Nomad hospital.

In the fourth quarter of 2020, you de Levered 17000 of 353 is a yes a fix.

Six and six representing a strong growth of a 111% year over year, and a 42 per cent quarter off a quarter accumulative deliveries of the 2020 reached 43000 to 728, representing a strong growth of <unk>.

113% over 2019.

<unk> achieved a historic monthly delivery of a 7000 to 200 countries five vehicles in January of 'twenty, 'twenty, one and the resilience of delivery of 5578 vehicles in February of 'twenty, 'twenty, one representing strong 352.

Per cent and 689% year over year of growth.

<unk>.

Yeah, we let a sometimes putting those $2 three day yesterday of a waste.

Allen Yang Chen from <unk> will be used to kind of slowdown question, yes to both.

Since the line you've got a goes on tinder, sometimes tend to sell down of away you see a deal with adding on.

Yes, we've got a culture.

The Sunday, we had bought a bunch.

Bunch of Adobe.

Do you mean, you called out taking the time, Inc.

The dental school Colby way of life.

Volume growth.

Many of the Costa Hawkins, breaking a year from poverty to walk out and chief of unchanged as well.

You said it was for the on the audience.

How do we infer from the soil. So it didn't go so you've got a phone call.

In 2020, all three new models have achieved exceptional performance in the market. Yes. The fix has been in the past the selling electric SUV in China for the full year of 2020, Yes. Eight has reached the number one himself in 2020 in the pre.

Electric SUV segments price does off 400000, RMB in China, Inc.

<unk> has ranked at the top in the premium Coupe SUV segment for three consecutive months Inc.

China's starting from November 2020, that's the by the top notch quality of product quality and the service you have gained a growing positive recognition and feedback from users and the industry in the kind of insurance automotive safety index published in January of 2021.

It's a six achieved of the past the 50 a rating among all modeled tested the by the EIA as I, Inc. 2020.

In terms of any of the timing for use of the pool of talent in this I am also well as per the law.

Olivia Bloom could of them well, maybe to a union the Egypt Gulf of them jump out of the I was wondering why now.

Supported by a competitive product offerings.

Outstanding services and innovative business models, we have one increasing use of recognition and expected of the alcohol on T deliveries in the first of quarter of 'twenty and 'twenty. One two range 20000 to 20500 of vehicles.

Right.

All of you from yet so you get the sushi items on a itself without changing the pendulum from Doe job well done guys kind of weed out some of its about the yourself well most of the people that from commodity at the other partners the Chile.

So you used in the event you think total so who some of them already yes.

On the subsidy of hot.

In terms of the gross margin driven by step a week, increasing delivery stable average selling price and the improving materials hot on the manufacturing efficiency of a V.

Vehicle gross margin in Q4 reached the 17 point of cheaper debt well over benefited from the new and a good credit revenue. The overall gross margin has also increased the June 17 point of 2% woman sorry on the on it yet.

It's a digital T.

The sale of 30000 team for the Mackenzie mill.

So the kind of a trillion coming to you both of them see them or maintain the momentum from school.

Normalized earning on them.

On a way that a G in Saudi of course, but we see that she's a class LD go through kind of a central kitchen.

You have continued the to achieve.

Positive cash flow from operating activities in the fourth quarter and the full year of 2020 in all aspects of news operational efficiency and of a 15 efficiency have significantly improved in 2020.

She said I hope on that as Tony was a contravene the formulation from the akimbo.

Net.

I would like to share with you some key topics off of the company.

So I mean on a net U S.

There's a well known Pablo <unk>, who can add a day accounts you can tell if a person EQT EQT can get hit between keeping the 10 a person.

Wholesale accounts in the way.

All of our team to that Nathan said the cold.

The Piceance you can pipe and against the the throughput growth on to yet yeah. It didn't even tender to touch on the meat.

Who may see how many of the Goldman on co investing a total of moving teeth.

Of the new Okay on January 19, 2021.

Actually the 'twenty 'twenty, one we launched a day into seven of the first of the flagships with them based on the new technology platform to a 0.0 antici with the cross fleeting dimensions.

Theory exterior of sophisticated and here is a fishing powertrain and most of digital cockpit and industry, leading autonomous driving capability. It's a seven has received a remarkable feedback from users need you and the industry is the order performance has also exceeded.

All of our expectations.

Yes.

You did she she.

He went out of the trends out of the people can part of that.

Neil Neil I'll kill a few persons and one at the silver computing the M D.

They are a part of driving suite on a.

So a lot of programs.

So that's on the both of them on gasoline just ballpark.

The Eagle pass out of the culture. For example, you got Woodbine depends on who did a Gordon do you want me Bob Evans.

The other than hold on can die from it.

Clearly a goal that you tend to use the mill targets.

I did a ton guidance you heard she's on the meet that non public.

Couple of things and diesel by about a job quite a lot. So that's a tiny ever done that simple.

Based on your in House Foods back autonomous driving technology platform.

Seven wells the equipped with a 19, new autonomous driving a big thing of a killer Super since the end new Anthony Supercomputing.

QLED Super same thing Seaspan has a 33 types of formats same thing a unit, including 11, eight megapixel high resolution cameras and one high resolution lineup with the detection of a range off of a 500 of meters. The computing power off of a mute Adam is up to 1060.

He talks the sense of suite and of the computing power off of a G fast the pass of other competitors and well extra guidance. The last March a mass production progress off of the autonomous driving industry.

And here the done throughput we can't go through come true.

Jonathan in terms of things that seems a luncheon at the end audience of I'm talking to your CFO, Jim on a simple way like the Macy's household income.

I'll give you a full fleet of four give you a most of the a D. As a sort of non controlling interest hung from the essential nature of them.

And then he will provide a safer and more relaxing a day experience from point a to point of being.

Graduate covering highway urban parking charging swapping and other use cases to free up time and reduce accidents. In addition, you on a D well.

We'll be the first engine system offered through in monthly subscription service for a day as a service so more people from trying out and enjoy a deep well.

I know, there's a couple of other opinions on some of the either funding does someone.

Can be on the leases on Sunday.

A lot of popular well against the ball so the sale of five.

I've noticed sort of in that middle of fusion startups on the way of life changes have been the xiaomi. It's I mean, that's a if I was the booth.

The box you can shoot a few hands on cobalt in Chengdu subway line of Fuji.

The U S shale.

And she's been a question that you put them back up against the clock.

We have also launched at the power substation 2.0 Avenue, a day, which enjoys much lower of cost and the three times higher service capacity compared with the first of the generation. In addition, we have a launched a debt 150 kilowatt hour battery pack, which both 50%.

And as you can see the improvement and can significantly extend the driving a range of all new models with the 150 kilowatt hour battery pack that I need to see a range of <unk> seven can reach over 1000 kilometers on.

It was the subject of system every user can choose to upgrade to two different the battery pack on demand.

So the your thoughts.

So the on some of the skin to volume could clean cojuangco somebody the Thompson T. T. Whether you include keeping churn comes in the starting swaps on Facebook.

And since on the yogurt useful really put against the Basel.

So what are you on pushing the battery at the front of it.

On the skins and banking share thoughts.

Cool.

Well, let me kind of can fund flow.

Likewise on the funding from <unk>.

So you would put you on without from here on tweaking the dawn hub.

Neil is devoted to building a new innovative model of a battery vehicles, the accretion and batteries subscription with a charge both comparable upgradable batteries as well as providing holistic power solutions to users along with the growing just the face and the expanding battery offerings more on.

Our users opt for battery of the survey box, Inc. February 'twenty 'twenty, one the take rate effect among new orders has reached a 65% we believe plus a nuc holistic charging on a swapping part of a system kind of accelerate the conversion from a ice's Tuesday.

She's happy Veterans day parts of town got a patent on adhesives, where that's a kimpton.

And in the data per.

Useful Cushing <unk> Cushing Cushing the jump off of them.

I'm going to go on a union in Peru.

Who is on some geography, although he on the many people here.

The continued development on the research of new products and the technology is the cornerstone of sustainable development.

Well, despite the fleet desktop over R&D investments and speed up the development and production of core technologies and new products Inc.

The 21, all of our R&D investment is expected to double and break around the 5 billion RMB per nobody on the USA. The Babylon, she's a well that had a trend going into a tandem.

On Tuesday.

Hum on Cortlandt being booked.

She can somebody in terms of one out from kind of send someone out of the time line with ETT co hosted a country, sometimes two Hudson Bay.

On the production capacity has reached 7500 units in January of <unk>.

On a JC has already kicked off a further parked a production capacity expansion in the Hefei plant and the plans to expand of the annual production capacity to 150000 units under the one chip and hungry found interest on it on the Tricia to prepare for the production.

After each of the seven and future products.

Oh, Yeah weighted idea of hope is through a channel of some phospholipids.

Great.

Yeah, that's about sort of on.

And you paid off who meet that she's helping them again on shipper pay on the sheet how.

How about your day, one of the entirety of the eastern Indiana a here.

Each of them.

In February of 'twenty 'twenty, one you entered the EG a further cooperation framework agreement with the Hefei government share.

On my plan and due to the huge how smart electric vehicles, the industrial park, including R&D and a manufacturing pilots demonstration and industrial supporting services and food and World class Smart electric vehicle industry clustered, whereas the full scratched industry value.

Change.

Shows of the pool on both of them yet.

When they see all of the Sun go away like the missing link.

Don't go away like from Jim forgot it can go either at the EBIT.

On the kind of assurance out of Canadian peak seasons from Ireland.

Tim Duncan.

So two of them that says you can't yet I think a union presence of US should go away like in the gym.

I should go play like we didn't call.

Called out do you forgot Paul by the way.

I said as I was saying about the Michelle can heal Houston south of a chunk of that.

Some of them.

With regards to the felt on the service network.

You have 23, new housing and 303 phases.

Weighted covering 121 cities in China, Inc. Right off of the continued contribution of the offline spaces towards the brand awareness order growth and the user community operations. We plan to open 20, new new houses and a 120 new spaces.

In 2021 to further expand the network coverage.

Each new of the competitive edges of director of cells consolidating both online and offline traffic as well as improve the user experience and the efficiency of the.

So the pulse of that way, that's what I meant that you didn't send you back towards the use of forgot to flow the come to a junior people woman jumped a little push some of them can be T. M can call. The other opinions on will be also the juniors young fundings on the phone.

<unk> got off to a thoughtful growth.

It's a glimpse of it.

Well, a midtown south out of a total while local mortgages from in lung cancer, which L. A meal you bought us.

The Tivo withholdings on but you can keep a broken maybe it is from U S. P. A R E.

I don't do a back book So you won't have been.

You have seem to a 191 swap stations in 76 a C T.

Starting from the second quarter of a big fear will graduate the point the power swap station 2.0 switch offers a better experience with the lower cost of a target in 'twenty or 'twenty, one is true ramp up.

Two a week.

500, a power swap stations in total well over who will step up of Ashford Inc.

Computing all of her Supercharging network and the destination of charges. When it comes on we have a 127 power charger station and over 1700 destination Chargers.

Average 615000, respectively by the end of 'twenty 'twenty, one for the long haul boil down the pud on Houston.

The whole Foods, Inc.

Saudi of that prevent you got more channel a meal south east outweighed the.

Both of which about a full time closings in the second half of the fruit yet I think a union.

The call about so one of the amplitude Singapore guidance that fortitude.

Well the user base growth the operational efficiency off of news after sales. The surveys. The same thing is also improving we now have 31, new service centers and one hundreds of 58 authorized the service the century city.

I'll leave a better service experience to the users will extend over the ask yourselves a service networks to further optimize offer oftentimes the sort of a system.

Whereas for the weekend need that you'd probably see the I think on one of the up one of them $10. So cheap even a deal how the neo the.

Total up on from the fun to share on the ballpark kind of into the <unk>, but in the other day without one of the popular flow kind of London's your thoughts toward a trend to ease. The uncle you don't put things in context I live in terms of a gel you the cheaper can pipe on the hygiene.

Women at the yards.

And what is the way you are treating the coupon quiet on the airports.

Suddenly be a cofunding ball, who sort of waiting and if we go to India.

The split of women put on chicken the commodity.

Neil Inc. Diffuse a community starting wages Martin.

Well, we share a joint and the growth together with the users the life broadcast of the New day 'twenty 'twenty. How on January nine 2021 has attracted nearly 100 million views.

And the new a day, we launched of the Blue point of plan and became the world's first auto company to help use it to certify imation a reduction and treat hop on credits in 2021. The second use of counsel off of the new use of truck has decided to focus their work.

This year on ease of care industries of communities public welfare and environmental protection a protection the constant support of all of the users is the something post to drive that she always move forward on the.

Yes, a little bit of lifestyle that now you've got three of them.

Well the truth of the punted on the lease up well SMC opinion with some growth inside the containment vessel bottom, but some of it that's what types of yet well most of the portal solution. If you can do a torch inside of a deficiency free yet.

The two tenths of a 21 day you so well.

When I think where people can see how the trend from here.

When he 20 is an important milestone on the debarment, a journey of meal, which they use the support and the team's effort. The companies of all operations of back on track and have entered into a rapid development of the stage at the startup we will stay true to our orange on omission continued to make it.

Decisive and the efficient investments in the R&D of new products and the core technology and further expand of the charging on swapping network and to the after sales service networks to provide the best holistic experience to a new users.

And that had a booth.

Sundar Stephens on without that yourself.

How do we get it.

Your line.

As always thank you for your support.

I will now turn the call over to Steven to provide the financial details for the court fees line. Please go ahead.

Are you feeling of a novel of all the key financial results the fourth.

A lot of 2023.

The mindful of the length of the school a concurrent.

Carriage fees much to a first of all of our earnings press release, which was up two one on additional duties.

All of the revenues in the fourth quarter of them.

Six.

On the one.

On to bring the Stonehouse, where presumably increase of 100. The three 2% we opened the year on increase of 46, 7% quarter per quarter.

Our total revenues under the two parts the gold fields and other sales.

We don't feel from the fourth quarter.

617 belong to four $946 2 million just on us on pumping for 93% of total revenue in this quarter.

We presented an increase of 130% of a year.

On increase of 44, 7% quarter per quarter.

The increase the visual fields do over the years.

Primarily due to higher blue.

Once a choose from more product offerings.

Of the expansion of our sales of one through the continued launch of the use cases in 2020.

All of the field in the fourth quarter. The 467, the Pompey who won.

One 6 million Donuts, representing increase of 184, 1% you opened the year.

Increase of 82% quarter per quarter.

Increase in other fields of it.

Your line.

Net income attributed to sales of automotive because of a true credits.

The increase of revenues you bought from the home Chargers installed on.

The three fold in line with incremental vehicles sales.

Cost of sales in fourth quarter.

550, the RMB.

The 842, eight who need a stone us representing increase of 73% of a year a decrease of <unk>.

A few months.

As a percentage quarter over quarter the Inc.

Crazy cough, a feel for the overview.

Moving to the Barton Creek on the deal volume.

Fourth quarter of 2020.

Gross profit from the fourth quarter one.

One of them one for bill on <unk>.

<unk>.

175 in the defense.

The increase of one 4 billion RMB from fourth quarter of 2019.

The increase of.

At home to the 56, one of RMB from fourth quarter of 2020.

The decrease in gross profit was mainly contributed to increased because of feels and increase the margin.

Cross marketing of the fourth quarter.

72% compared of objective.

Non person.

Same quarter of 2019.

A few months of Sun from the third quarter of conditions.

The increase of a gross margin like a meaningful part of increase of this margin in the fourth quarter of 2020.

Most of the crews.

Margin in the fourth quarter net.

52 per cent compared to the negative $6, one per cent and within a quarter of Piedmont Hugh on for.

The third.

On a 2020.

The increase of leaf of margin.

The different Barton Creek, a vehicle to the right.

The decrease in purchase price of zircon production with the humans.

All the expenses in the fourth quarter true.

802 demand for many of lumpy.

One on the two simple one moving the storms.

Because of the decrease of 19, 2% year over year, a decrease of 44% quarter over quarter, it's a crazy aren't experiencing year over year of <unk>.

<unk> find the increase of bond between the.

Related to the D C peaks, which came too much production in September of 2020.

The common all parts of the efforts and improved operational efficiency the R&D functions.

Jenny.

The fourth quarter of $1 two beating on the pool.

185 million the storms represented a decrease of 21 markets than the year over a year on it.

The increase of 283% quarter over quarter.

Craig we have trimmed expenses over the year, what's the problem.

Driven by the companies of all cost savings efforts on.

The improved operational efficiency.

Loss from a price.

In the fourth quarter net.

Non counted for the one thing for me on the day.

$142 7 billion the stones.

Representing a decrease of 67 percentage deal versus a year and a decrease of.

Fox and caught up a quarter.

Share based compensation expenses from the fourth quarter.

62 million on B.

The income to meeting the storms.

The increase of 17, 6% year over year on increased of two three percentage quarter over quarter.

The decrease in share based compensation expenses year over the ear.

Primary contributing to the incremental auctions wrongheaded was granted.

Granted the damage to the increased share price.

Net loss in the fourth quarter from us.

Sweet non been lumpy because the 208.

Just on the prison.

A decrease of 51, 5% year over year on increase of 32, 6% quarter over quarter the.

The increase in net loss of Carnival a quarter.

Attributed to the unrealized foreign exchange losses.

The one from the depreciation from interest on it.

Cash Spanish.

Sales by from Mcafee the Ts.

Constant currency on the.

In the fourth quarter of 2020.

Net loss of two.

You get about two new shareholders in the fourth quarter.

One.

On bidding on B.

200 from eight 7 million the stones represented a decrease of 48, 4% year over year, a decrease of 25, 6% portable from.

Basic and then the last for a D S in the fourth quarter.

Loans.

Oh on the.

Since you've done a idiots.

Could you the share based compensation expenses on the cash.

The issue on redeemable on coupon.

Non controlling sugars to resumption of batteries.

Non-GAAP adjusted basic and diluted net loss of <unk>.

Look Bose.

They'll put them on the street on the.

14th per idiots.

That's on the cash.

Cash and cash equivalents.

Cash and short term debt, each 142 per Bob and on the full.

The $6 five during the storms.

As of December 31st 220 <unk>.

Additionally, we achieved.

All of the GP cash flow from.

The cash activities for the full year of 10 to 20.

On the mall Fabless all day.

Although we don't measure it.

The first caught up some of it can be one of the pumping.

Pump expect delivers sort of between 2000 on 2500 vehicles with the.

Presenting a increase of approximately 402 on performed to pull hundreds of the focus on from the Sim caught up 10 to 20 on.

The increase.

The approximately 15 to 18 performed to the fourth quarter of 2020.

On the topic of all the expense the public revenues on the first quarter, particularly the one.

The two seven put strict H at foster sitting on the old two.

True 113 to one of one 6 billion the stores this would represent a huge.

<unk> of approximately 438% to 451% from the same quarter of to the 20 on increase.

Approximately 11, 2% from 38% from the quarter of 2020.

It's on the prospect.

That's the complex Poland on the preliminary view on the piece of the issue on the market condition.

The subject to change.

Now this concludes our prepared remarks of a mouse turn the call over a pretty tough took pockets of our Q&A session.

Thank you.

Ladies and gentlemen, moving now begin the question and answer session. If a vishal asked a question of just press star one on the telephone, especially on them to be a mouse if a shall cancel of a request. Please press the pump a husky.

The benefit of all participants on today's call.

Limit yourself to two questions and if you.

Instead of a questions to kind of re enter the queue.

The first question comes from Edison from Deutsche Bank. Please ask the question.

Thank you very much.

So first question wanted to ask is on a.

Now, let's focus on the premium market.

They're very focused.

Focus on that and that's having a change would you consider developing another brand.

Go after the mass market on the mid tier market.

The second question.

It was about the international expansion.

You had indicated that the anchor.

The Europe later this year.

I'm wondering what kind of sales volume would you expect.

On the longer term.

And in relation to that there's a lot of speculation from the press lately that debt.

<unk> is getting much more serious about getting into the U S.

Could you share your latest thoughts about that.

Debt.

Well, we lightened the mcgough.

So oh gosh, it's all from <unk>.

So you'll call we generated a significant share.

But on a suitable.

He doesn't when he says.

And the LTE.

So none of it.

The tons of the mobile cellular on your some of each of them.

So why do you keep all the Alexander on the store with a thin guys kind of saw it during the course of time.

They can pay for the Chinese.

Jeff on the us about the Michelle but much of it.

A C. The Edison.

So the most of the market.

The total lifetime of a hot no on the tunnel that take a chunk of the economy showed up on the income initially all of that but I also knew of it. It's all the lights out on the on a woman Neal that the the brand.

Mostly a focus of decided to go a claim in the market generic on the all women Wei.

Neil of the brand the bulk of its even without a massive market tightness of the convener.

That's the work that they were because of you don't get a level of insight.

The Nintendo based upon the sort of pool.

Posted up on the flu.

Jade Hood GAC Nio.

On the quality of the parameter basis I'm sure Doug.

The change.

Take a dip into a done.

The deal on the <unk> elements, even a bolt on of the wheat, Charlotte and the other women. So it's there's a lot of fulfillment center tunnel in the week.

So the only way that outlets on the fund.

Yes, there were a improvement.

Consisted of a true seems to be back into the holidays the town evenly.

The only user kind of machine elements in the ITC at a time.

I mean, the amount of Barnes.

Pumps with a continued to the tune of about that I'm sure Scott Peterson will need a country the thunder.

Thank you Edison place Hudson of.

Of course, if possible of funds to enter the U S. A to the enter the mass market and the new Brent a it's.

Going to focus on the premium market simply speaking new brands, it's not going to enter the mass market, but in the past a few years. So we have some already tried different approaches to enter the mass market. For example, we established a joint ventures of three investments with the.

A T and the time of previously Overshirt holding in both the joint ventures is around or over 40 per cent and now all of a share holding has reduced the two five per cent and basically keeps us with more flexibility at the end of possibilities of true trying different approaches to enter the mass market.

And the way, we'd like it to be more activity to the city is going to be part of all of our long term strategy.

They are the ones you're going to you of course the uses huh.

In a junior in place I also the cases.

Susan take a social.

And the plan the build up out in the book and doing a mid tier of Bob looking at the end of Q about the teaching and the mid some day total.

Total full on boarded some day under the debate go from in the.

A bit of bad pool.

I'll take the.

Good day, so kind of a seek a.

So the change of Shiga from come to the bones of all of them you took on a nation of women of Belo hopefully a key hung she likes a four minutes of dental.

The trend shows of the throughout 2000 of goes down to two of the Eagle from the.

The other one so that's a good kind of implicit you tend to pull it all of it so Neil I've done all of them from day, one two a day and day.

Or does that make what cindy on by the team of women to base it on changes.

I don't want the rents of about 210 doses as he goes social.

On category growth.

<unk> got on the sound doesn't make most of the kind of find out what the day, yet say a piece.

Q2 sort of herself.

So.