Q1 2024 XPeng Inc Earnings Call

Operator: Hello, ladies and gentlemen. Thank you for standing by for the first quarter 2024 earnings conference call for Xpeng Inc. At this time, all participants are in listen-only mode. After management's remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Mr. Alex Xie, Head of Investor Relations of the company. Please go ahead, Alex.

Hello, Ladies and gentlemen, thank you for standing by for the first quarter 'twenty 'twenty four earnings conference call for <unk>.

Speaker Change: All participants are in listen only mode. After management's remarks, there will be a question and answer question Today's conference call is being recorded.

Speaker Change: I'll now turn the call over to your host Mr. Aleksey <unk> head of Investor Relations of the company. Please go ahead Alex.

Speaker Change: Yeah.

Alex Xie: Thank you. Hello, everyone, and welcome to Xpeng's first quarter 2024 earnings conference call. Our financial and operating results were issued via Newswire services earlier today and are available online. You can also view the earnings press release by visiting the IR section of our website at ir.xiaopeng.com. Participants on today's call from our management team will include our co-founder, chairman, and CEO, Mr. He Xiaopeng; vice chairman and president, Dr. Brian Gu; vice president of corporate finance and investments, Mr. Charles Zhang; vice president of finance and accounting, Mr. James Wu, and myself. Management will begin with prepared remarks, and the call will conclude with a Q&A session. A webcast replay of this conference call will be available on the Investor Relations section of our website.

Speaker Change: Thank you Hello, everyone and welcome to <unk> first quarter 2024 earnings Conference call.

Speaker Change: Sure and operating results were issued about newswire services earlier today and available online you can also debuted our newest press release by visiting the IR section of our website at IR Docs shopping dot com.

Speaker Change: On today's call from our management team will include our co founder Chairman and CEO, Mr. Vishal, Peng Vice Chairman and President Dr. Brian <unk>, Vice President of corporate Finance and investments Mr. Chau Cheng Vice President of finance and accounting, because James Hu and myself.

Speaker Change: Management will begin with prepared remarks, and the call will conclude with a Q&A session. A webcast replay of this conference call will be available on the IR section of our website.

Alex Xie: Before we continue, please note that today's discussion will contain four forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainty. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the relevant public filings of the company as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required under applicable law.

Speaker Change: Before we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995.

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

So I think information regarding these and other risks and uncertainties is included in the relevant public public filings of the company as filed with the U S Securities and Exchange Commission. The company does not assume any obligation to update any forward looking statements, except as required under law.

Speaker Change: Hello. Please also note that excellence earnings press release, and this conference call includes a discussion of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures ex post earnings press release contains a reconciliation of unaudited non-GAAP measure.

Alex Xie: Please also note that Xpeng's earnings price release and this conference call include the disclosure of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. Xpeng's earnings price release contains a reconciliation of unaudited non-GAAP measures to unaudited GAAP measures. I will now turn the call over to our co-founder, chairman, and CEO, Mr. He Xiaopeng. Please go ahead.

Speaker Change: Yours to the unaudited GAAP measures I will now turn the call over to our co founder Chairman and CEO. Mr. Pushout pump. Please go ahead.

Xiaopeng He: Hello everyone, this is Xiaopeng. In the first quarter of 2024, Xiaopeng's total sales amounted to 21,800 units, which is 20% higher than the first quarter. In a situation of fierce competition in the market, the gross profit of the first quarter doubled compared to the fourth quarter, which increased by 6.1% compared to the fourth quarter last year. The overall growth rate is 12.9%.

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Xiaopeng He: Xiaopeng has realized the smart electric vehicle business. We have also made a profit through the cooperation and output of smart technology. This creates a new, unique model. Xiaopeng has been in the automotive industry for 10 years. He has been developing and investing in high-strength technologies such as autonomous electronic vehicle platform, EA electronic equipment architecture, and smart driving. At present, it has been converted into a good financial return

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Xiaopeng He: In an era where AI is about to overthrow and rebuild China and even the global automotive industry, Xiaopeng was the first to realize the negative energy output of self-sustaining and intelligent technology. Good evening, everyone. In the first quarter of 2024, Xpeng announced the delivery of 21,821 smart EVs, marking a 20% year-over-year increase. Notwithstanding significant market competition, our first quarter growth margin expanded substantially to 12.9%, doubling from the previous quarter with an increase of 6.7 percentage points. This development underscores Xpeng's innovative approach to enhancing profitability and international market potential through the provision of smart technologies based on its smart EV business. This has created a completely new, unique model.

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Speaker Change: Good evening, everyone in the first quarter of 2024 X one announced the delivery of the 21800 in 'twenty one.

Speaker Change: And 20% year over year increase notwithstanding significant market competition, our fourth quarter gross margin expanded substantially to 12, 9% doubling from the previous quarter will that increase or six seven percentage points. This development underscores the ex parte innovative approach.

Speaker Change: <unk> profitability and international market potential.

Speaker Change: Physician and smart technologies and based on Smart EV business. This has created.

Xiaopeng He: Over the past decade since its inception, Xpeng has consistently made a robust investment in R&D for smart EV platforms, electrical, and electronic architecture, and advanced driver assistance systems, or ADAS for short. These strategic investments are now yielding positive financial outcomes. As artificial intelligence continues to redefine the auto industry in China and globally, Xpeng has been at the forefront of exporting its in-house developed smart technologies, resulting in significant recurring revenue and profits. This achievement is poised to profoundly impact the company's profitability model, instilling confidence in paving the way for further technical advancement as Xpeng continues to lead the technological transformation within the automotive sector. As of the first quarter, our investment cash is 4.14 billion yuan.

Speaker Change: <unk> unique model over the past is that data since its inception exponent has consistently made a robust investment in R&D for smart EV platform electrical electronic architecture and advanced driver assistance systems, what all that's for sure.

Speaker Change: So keep it investments are now yielding positive financial outcomes and artificial intelligence continues to redefine the auto industry in China and globally ex Paul Hudson.

Speaker Change: From exporting it enhance it developed the smart technology, resulting in significant recurring revenue and profit.

Speaker Change: This achievement is point profoundly impacted the company's profitability model is getting confidence in paving the way for further technical advancement.

Speaker Change: <unk> continues to lead the technology transformation within the automotive sector.

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Xiaopeng He: The significantly improved capital and abundant cash allow Xiaopeng to pay more attention to long-term strategic choices. Hence, its strategy will not be as far-sighted as before, only in terms of sales growth. We are more in pursuit of high-quality, high-efficiency in such a short market and comprehensively enhance the company's overall performance. This is the only way to gain greater scale and profit in the long run. I am very happy that Xiaopeng has started to think about and make such a change earlier than most enterprises. And now the change is very stable.

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Xiaopeng He: Next, we will firmly push for the adjustment of the entire change and accelerate the introduction of key talents to continue to enhance the company's organizational ability and strategic information. Through the highly integrated smart technology platform of Xiaopeng's big AI today, we are confident that we will be able to launch a more competitive model in the future in a more efficient way within the global scope, leading to the large-scale development of AI autonomous vehicles. At the end of Q1, we had RMB 41.4 billion in cash.

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At the end of Q1, we had RMB 41, 4 billion in cash without with significantly improved the gross margin with a healthy cash position allows us to concentrate more on our strategic initiatives are for the future our strategic our strategic transformation is not only focused on boosting sales of volume.

Xiaopeng He: With our significantly improved growth margin, this healthy cash position allows us to concentrate more on strategic initiatives for the future. Our strategic transformation is not solely focused on boosting sales volume as in the past. We are also dedicated to achieving excellence in quality, efficiency, and overall enhancement of the company's competitiveness.

Speaker Change: As the part we're also dedicated to achieving excellence in quality efficiency and overall in light.

Speaker Change: Of the Companys competitiveness.

Xiaopeng He: By leveraging our strengths and addressing any weaknesses, our goal is to become well-rounded and pursue larger scale and profits in the long run. I am very delighted to say that we have been able to start this thinking and have this vision much earlier than our peers. Moving forward, we will vigorously drive this transformation whilst accelerating crucial talent recruitment and improving organizational effectiveness in strategic execution. We have confidence that with our hyper-integrated, comprehensive intelligence technology platform, Xpeng is well-positioned to efficiently launch highly competitive models worldwide and lead the widespread adoption of AI-powered smart cars.

Speaker Change: Leveraging our strengths and addressing any weaknesses, our goal is to become well rounded and pursue larger scale and profit in the long run I am very delighted to say that we have been able to watch the thinking and hospitalization much earlier than our peers moving forward, we will dig.

Speaker Change: With the dry this transformation, whilst accelerating crucial talent recruitment and improving organizational effectiveness.

You did execution, we have confidence that with our hyper integrated comprehensive intelligent technology platform <unk> is well positioned to efficiently launch at highly competitive models worldwide and to meet the widespread adoption of AI powered smart cars.

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Xiaopeng He: Since this year, Xiaopeng's car has been recruited several times. We now have top talent joining us in many areas, including auto driving, brand marketing, design, etc. We will introduce some of them to you in the near future.

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Xiaopeng He: We will also accelerate sales, customer experience, design, and other capabilities to the most advanced level of the industry. We need to turn good technology into good customer experience and good products. We also need to use good sales to better convey the value of technology and products to our customers.

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Xiaopeng He: So on the basis of supplementing the short-term, we are leading in the industry in AI capabilities and our overall technology development system support. We will rapidly scale up around the world. Since the beginning of 2024, Xpeng has been actively recruiting top talents in R&D, brand marketing, style design, and other key areas. We will soon introduce them to you.

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Speaker Change: Since the beginning of 2024 X Paul Hudson actively recruiting top talent.

Speaker Change: R&D planned marketing style design and other key areas, we will soon introduce them to you.

Xiaopeng He: Our goal is to rapidly elevate our marketing, customer experience, and design capabilities to the industry's most cutting-edge levels. This will enable us to effectively translate our advanced technologies into compelling product experiences and utilize marketing strategies to better communicate the value of our technology to customers. With our weaknesses properly addressed, our industry-leading AI capabilities, comprehensive R&D framework supporting rapid global scalability, and customer-oriented product design will better serve as the competitive edges that set us apart and drive our success. In the first quarter, our flagship car, the X9, was launched and became the flagship of the pure electric MPV and pure electric three-row car.

Speaker Change: And to rapidly elevate our marketing customer experience and design capabilities to the industry. The most cutting edge level. This will enable us to effectively translate our lung technology into companion product experiences and utilize our marketing strategy to better communicate the value of our technology.

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Speaker Change: With our weaknesses are properly addressed.

Industry, leading AI capabilities comprehensive R&D frameworks, According rapid global scalability and customer oriented product design with better soon.

Speaker Change: The competitive edges adapt to set us apart and drive our success.

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Xiaopeng He: I think X9's success fully demonstrates that product innovation and technological innovation are the more effective ways to compete. In the next few years, we will continue to enrich our high-end series of product lines based on X9's good reputation and experience, providing more advanced smart technology for large family users. During the first quarter, the X9, our large seven-seater flagship model, emerged as a top seller in the pure electric MPV segment as well as the pure electric three-row model segment following its market launch.

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Speaker Change: During the first quarter the X nine our largest seven seater flagship model emerged as a pops in our in the pure electric MPV segment as well as the pure electric wheel model segment. Following his market launch.

Speaker Change: Except that the X nine pardon me establishes a product innovation and the technological advancement.

Xiaopeng He: The success of the X9 firmly establishes product innovations and technological advancements as our most effective competitive edges. Moving forward, we will confidently build on this success to enrich our premium product portfolio. Our aim is to provide family customers with the most advanced smart EV technologies in large vehicles, delivering styling, space, comfort, and opulence akin to luxury cars priced. Starting from the 3rd quarter of this year, we will launch a strong product cycle with many new designs in three years. Then it will cover the main areas of the $100,000 to $400,000 price range.

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Speaker Change: Moving forward, we will confidently build on visits.

Speaker Change: To enrich our premium product portfolio. Our aim is to provide a family customers with the most advanced and smart technologies and large vehicles, delivering finding space comfort and opinions akin to luxury cars.

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Xiaopeng He: X91, All of our products will stick to the lead of smart driving. At the same time, through the training of multiple products in price range and design to meet different customers, including Chinese and even global industry partners, our goal is to build a super brand that has a wide range of customers in the global market like a mass-produced car in the era of smart electric vehicles and to make AI-driven driving the most important brand. In the third quarter of this year, we will embark on an extensive product launch cycle, introducing a number of new models over the next three years. These models will cover major product segments ranging from R&D 100,000 to R&D 400,000.

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Speaker Change: In the third quarter of this year, we will embark on the extensive product launch cycle, introducing a number of new models and within the next three years. These models will cover making private segment ranging from RMB 100 to RMB 400000.

Xiaopeng He: Like the X9, our new models will come with disruptive innovations to target new segments. All products will feature cutting-edge technology, and with various product theories, we will cater to diverse customer needs in pricing and design, both home and abroad. We are committed to establishing a Volkswagen-like super brand in the EV space, with a global market presence and a wide-ranging product portfolio that caters to broad customer groups, ultimately bringing AI-powered vehicles into the mainstream. The first product of the MOLAR series will be launched in June this year.

Speaker Change: Like the X nine our new models that will come up with disruptive innovations 2000, new segment.

Speaker Change: All products will feature cutting edge technology, and with a very it's a problem to theory will cater to diverse customer needs and pricing and design, both home and abroad.

Speaker Change: They tended to establishing a Volkswagen like super blend in the EV space.

Speaker Change: Our global market presence and a wide ranging part of the portfolio that titos too broad customer groups ultimately, bringing AI powered vehicles into the mainstream.

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Xiaopeng He: It will be officially launched in three quarters, and we will launch Xiaopeng's XNGP car on the A-level platform. The A-level platform with the largest sales volume will be popularized by high-end smart cars. Our new A-Class electric sedan, the first model of our MONA series of products, will debut in June and officially launch and commence mass delivery in the third quarter of this year. This groundbreaking product boasts exquisite styling, advanced intelligence, and a highly competitive cost structure, making it a potential favorite among younger consumer groups within the R&D 200,000 price range. We are confident that it will set the standard in the A-Class BEV market.

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Speaker Change: First model of our Mona theory, it's a product that will debut in June and especially at lunch and to commence a months' delivery in the third quarter of this year.

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Speaker Change: It was exciting advanced intelligent and highly competitive cockpit structure, making it a potential favorite among younger consumer groups within the RMB 200000 price range. We are confident it will set the standard in the <unk> market over the next two years.

Xiaopeng He: Over the next two years, we will introduce several additional products based on the A-Class platform. In addition, we are determined to target the R&D 100,000 to R&D 200,000 price segment, where the highest sales volume is for our high-level products. In the 4th quarter of this year, we will launch a new B-brand from Xiaopeng's brand. [inaudible] In the upcoming fourth quarter, we will be launching a new Xpeng-branded B-class battery electric sedan. We have successfully achieved a 25% cost reduction through technological advancements for the first time with this model.

Speaker Change: We're introducing several additional products and based on the April one. In addition, we are determined to palmdale today I ate the RMB 100000 to RMB 200000 enterprises segment, where the highest sales volume is with our heightened level.

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Speaker Change: In the upcoming fourth quarter, we will be launching a new ex palm Guangzhou, the B class a battery electric Saddam we have successfully achieved a 25% of the cost reduction.

Speaker Change: Technological advancement for the first time with this model, we expect it to become a best setting because MBV model in the second half of this year.

Xiaopeng He: We expect it to become a best-selling B-class BEV model in the second half of this year. With the incremental volume from this new B-class model and MONA, we are confident of substantial year-over-year growth in monthly delivery volume in the fourth quarter. On the 20th of May, AI Day, we will integrate large-scale AI sky-based systems, including the smart home and smart city.

Speaker Change: With the incremental volume from the new Declaw model and momentum we have.

Speaker Change: Confident substantial year over year growth in monthly delivery volume in the fourth quarter.

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Xiaopeng He: [inaudible] In the future, Xpeng's autonomous driving will be more efficiently promoted to the world. What does the rise of end-to-end models mean? It means that after the ability of autonomous driving, it is possible to have a double-digit increase in every quarter. XMGP's price will increase rapidly. Our plan is to make the city's price experience reach the current highest level in 2025. In other words, it takes several hundred kilometers to get water in a city.

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Speaker Change: On may the 20th we began the full scale rollout of our AI powered the in car operating system ex school as a 5.1 or AI turnkey O S.

Xiaopeng He: On AI Day, May the 20th, we began the full-scale rollout of our AI-powered in-car operating system, XOS 5.1, or AI-Tianji OS. This cutting-edge, large-model, built system seamlessly integrates AI technology into smart cockpits and others. XOS 5.1 is available to all owners of our major models, solidifying Xpeng's position at the forefront of the non-HDMAP and end-to-end AI model applications in China and in China's auto industry, which means our technology architecture is one or two generations ahead of our competitors without using any of these HDMAPs, and which also means that by third quarter of this year, XMGP not only would be able to roll it out in all the national roads, and we would be able to drive on all the roads around China, and from end-to-end to half-grid in all the cars, which means that going forward, in terms of autonomous driving capabilities, in each quarter, we would be able to see exponential times of improvement, and this would mean that in terms of the old way of human-made, method of rules and the coding method.

Speaker Change: Cutting edge and large model built.

Speaker Change: Seamlessly integrated AI technology into smart cockpits, and Alf X.

Speaker Change: X O X O S. A 5.1 available to all of our major models.

Speaker Change: As long as the position at the forefront of non HD map and end to end AI model applications in China and in China's auto industry, which means our technology architecture is a one or two generations ahead of our competitors.

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Speaker Change: By third quarter ex.

Speaker Change: <unk> not only would be able to roll it out in old national.

Speaker Change: And we would be able to drive over the road, along China and from end to end to Hopkins in older cars, which means thoughts are going forward in terms of the autonomy autonomous driving capabilities.

Speaker Change: Each quarter, we would be able to see and then show signs of improvement and this would mean that in terms of the old way of human made a mess.

Xiaopeng He: This will be revised into the training of models and based on the algorithms. We aim to have XMGP accessible on all the roads nationwide by the third of the quarter, as I have said. And our end-to-end AI model will enable us to rapidly advance our software and AI technology on a monthly basis. And we predict that by the end of 2025, we will be able to elevate the city road address experience to much that of the current highway MGP, which means only one manual takeover per hundreds of kilometers of driving. After we upgrade the technology architecture of smart driving to the end-to-end large model and start driving, we see that the domain of data and the value of data will be enlarged.

Message all the rules and then coding method, but this will be the right into the training of model and based on the algorithms. We aim to have X M. P. P accessible Oh the road Nathan launch by a third of the quarter as I have said in our end to end AI model will enable us to rapidly advanced alloys.

Software and AI technology on a monthly basis, and we predicted that by the end of 2025.

Speaker Change: We'll be able to elevate to the Sydney Road, all that experience into much of the current highway N G P, which means only one nine you'll take over part of hundreds of kilometers is thriving.

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Xiaopeng He: Through a large amount of high-quality data training, in the middle of complex traffic scenarios, XMTP will smoothly realize theory and even surpass the performance of most average human drivers. So from this year, in the 4th quarter, more users will be able to enjoy Xiaopeng's top-level, max-level X-Machine. This will greatly accelerate the popularity of high-end self-driving vehicles and quickly expand the scale of our XMGP fleet. By using a large amount of data to reproduce itself, we are now growing rapidly in the fast-changing era of AI models.

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Xiaopeng He: I believe that large-scale model technology will bring unprecedented intelligent experiences to our car owners in the next decade or so, and will be equipped with high-end self-driving vehicles, and even higher-level intelligent floating vehicle will make a big difference in the future. Our XMGP is expected to achieve driving capabilities that are equal or equal to or surpass those of human drivers in complex scenarios.

Speaker Change: Sure.

Speaker Change: Cancel wheeled uncertainty of future pay big Golden's, you simply couldn't go incidents with adjustments and don't use it that way not necessarily who adopted.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Our SMTP is expected to achieve a driving capabilities that are equal it was equal to what the path.

Speaker Change: Blackberry in complex scenario.

Xiaopeng He: This will soon be possible as our ADAS technology architecture is powered by advanced end-to-end AI models with extensive training using massive amounts of high-quality data, underscoring our competitive edge in data. With our B-class sedan model commencing delivery in the second half of this year, a broader customer base will soon have access to AI-powered ADAS features. The widespread adoption of high-level ADAS will accelerate and rapidly scale up our XMGP fleet, which in turn will generate tremendous amounts of data to expedite AI model training and iteration. Large AI models will bring our owners an unprecedented AI-powered driving experience, boosting the penetration of smart EVs equipped with high-level ADAS features.

Speaker Change: We'll soon be possible as our Andaz technology architecture is powered by advanced the end to end AI model with extensive training using massive amounts of high quality data underscoring our competitive edge in data.

Speaker Change: With our be conscious about motto commencing deliveries in the second half of this year brought or are customers that they will soon have access to AI powered that the teachers.

Speaker Change: Widespread adoption of our high level, although they will accelerate the end to rapidly scale, our X M. D. P fleet, which in turn will generate a tremendous amount of data to expedite the AI model training and installation large AI models will bring our owners and unprecedented AIP.

Speaker Change: Howard driving its feeling boosting the penetration of the market.

Speaker Change: It puts us at a high level all those features.

Speaker Change: So this is a woman she knew her child quiet quarter in the Truecar channel somebody when they showed up in units and dollar you got thrown out that should only once Johan Jonathan I won't use it or how should I thought I was going against you end up paying uncle Joe's quota, that's how about Russia, there's somebody on the JV Shield, Tony Yeah Oh.

Xiaopeng He: In the overseas market, we will speed up the expansion this year, and export will become an important driving force for our sales and profit growth. We plan to expand Xiaopeng's overseas sales network from the original North European countries to more than 20 countries. In the first half of the year, we have established network relationships with Western Europe, Southeast Asia, the Middle East, Australia, etc., and will launch new sales stores in the future.

Speaker Change: Oh, yes and thought it.

Speaker Change: Told you I thought you continue to sort of what's your opinion of what bullshit heterogeneous shut them, India. That's C J.

Xiaopeng He: In early April, Xiaopeng's nearly 1,000 machines exported to Europe totaled more than 500 million yuan. In May, the G6 left-hand version will be available in the European market, and we expect to launch the G6 right-hand version in the third quarter. In addition, the current high-speed NGP is also very smooth in its overseas testing progress.

Speaker Change: Shuffle merchant Ching Tai Chi Chow finally, although its full course.

Speaker Change: So it's a whole lot of we've had some of that with N. G. Nyota Thunder as you kind of the old don't publicize those switches.

Speaker Change: Essentially the portfolio would you be able to yield over sweat Dunkirk also in GB The highway.

Speaker Change: Jim that you face understanding essentially to kind of highlight of Jonathan can shove. It is doomed temkin jeez, there used to be a bulk water.

Xiaopeng He: I am very happy to see the advantages of our products and technologies, especially smart technology and super fast charging. Xiaopeng has provided a better product experience and a more environmentally friendly smart charging model to the overseas market, and established a medium-high-end technology brand positioning. Regarding the international market, this year we will accelerate our expansion to drive sales and profit growth. We plan to expand our overseas sales network from the Nordic countries to over 20 countries worldwide. In the first half of 2024, we established partnerships with the leading auto dealership groups in Western Europe, Southeast Asia, the Middle East, and Australia. New sales stores have gradually opened under these partnerships.

Speaker Change: Hot chocolate chunk than usual congested phase on the G to shove once you the way I listen to your own cooking.

Speaker Change: Couldn't harvest I mean tier one border intranet fishing number shortly shouldn't go down accordingly.

Speaker Change: Yeah.

Speaker Change: Regarding the international market. This year, we will expedite our expansion into July the sales and profit growth we plan to expand our overseas sales network from Nordic countries to over 20 countries worldwide in the first half of 'twenty 'twenty four we established a partnership.

Speaker Change: We're the leading auto dealership groups in Western Europe, Southeast Asia, the Middle East and Australia.

Speaker Change: <unk> sales are the ones that have gradually opened under these partnerships in early April we shipped nearly a thousand between lines worth over 500 mini into Europe.

Xiaopeng He: In early April, we shipped nearly 1,000 G9s worth over IMD 500 million to Europe. In May, we announced the starting price and started accepting pre-orders for the G6 model with a left-hand drive in Europe. We plan to introduce the right-hand drive G6 in the third quarter. Highway MGP tests in the overseas markets are progressing well too. Our product strengths, such as ultra-fast charging and smart technology, are highly valued by overseas dealers and consumers. Xpeng is confidently positioned as a niche to high-end tech savvy brand in international markets, offering superior product experiences and eco-friendly smart EV models.

Speaker Change: In May we announced the setting price and started accepting preamble there what they can do 96 model with a left hand drive it in Europe, we plan to introduce the right hand drive G SIB in the third quarter.

Speaker Change: Wait and keeping pest in overseas markets are progressing well to our product discipline, such as ultra sponsored charging and smart technologies are highly valued by overseas to dealers and consumers.

Speaker Change: Exponent is competent to be positioned as a mid to high end. It takes that'd be blind and international market offering superior product experiences and eco friendly Martin V models.

Xiaopeng He: Our long-term strategic partnership with Dazhong Automobile Group is constantly deepening, and the scale of cooperation is also expanding rapidly. On April 17, we are very happy to announce that Xiaopeng Automobile and Dazhong Automobile Group have reached the third strategic cooperation in less than a year. Xiaopeng and Dazhong Automobile will jointly develop the industry's leading electric vehicle platform for Dazhong Automobile's electric vehicle platform in the Chinese market. This platform will integrate Xiaopeng's latest-generation electronic vehicle architecture technology based on central computer and pre-controller.

Speaker Change: Well, maybe thoughts I'm sure that you don't know how much. It doesn't include the houlton question as I put it somehow pinching greenway that shows a quota.

Speaker Change: So you said she off almost a favorable challenges I'll get started.

Speaker Change: But that's again.

Speaker Change: Again, even if it doesn't have decided show China.

So most of whom her thoughts on with John we don't see that that true bushes getting on therapy, but they also have a higher training she had it didn't in Chicago.

Josh: P&I Jounce euthanasia of a bunch of the tongue gentry. She that you don't get you don't get you called the Cheetah vintage allergies, which we're already a new audience. She chairman at yields that goes into that and she's talking about it didn't notice them about once you know you touched on local Daiichi that change Hill, She's a high end NIM Yeah sure AI. This is Josh.

Xiaopeng He: , We hope to find more opportunities to cooperate and create greater strategic cooperative value in the global automotive industry together with our public partners in the transition wave of the AI self-driving era. Starting this year, platform and software infrastructure services revenue has begun to become an important source of revenue for us. This indicates that Xiaopeng Automotive has developed a new business model that is different from traditional automotive. Our industry-leading AI technology will not only be able to collaborate with the world's leading brands through the sales frontier of Xiaopeng Automotive but also gain greater production influence and better financial returns.

Speaker Change: No I was going against other good indoor cause you a warning that you thought.

Speaker Change: Johnny on the Shin <unk> no.

Speaker Change: Egypt has opinion generally to foreshadow Aegean cousins, who wonder woman show to the shipyards.

Speaker Change: He also does chevron shifts even further true your triangles Hershey for younger changing that's valuable as well.

Speaker Change: Well I don't know, how many tenants who don't watch usual jump with Jean Jean Tomas shelf once you're looking back at the show that video on the height car you can change your training champion pest control, who couldn't notice anything have you hook up with.

Speaker Change: With them.

Speaker Change: Our strategic partnership with the Volkswagen Group is rapidly deepening and expanding within just one year or they stopped listening I'm a partnership on April 17th we announced our strategic cooperation projects with Volkswagen This project involved.

Xiaopeng He: Our strategic partnership with the Volkswagen Group is rapidly deepening and expanding. Within just one year of establishing our partnership, on April 17th, we announced our third strategic cooperation project with Volkswagen. This project involves the joint development of the industry-leading EE architecture for Volkswagen's EV platform designed for the Chinese market.

Speaker Change: The joint development of the industry leading.

Speaker Change: Protection for Volkswagen CEB platform designed for the Chinese market.

Xiaopeng He: This platform, which will be applied to China-produced Volkswagen-branded EV models starting from 2026, will integrate Xpeng's latest generation of EE architecture based on centralized computing and domain controller technology. We are confident in our ability to leverage more mutually beneficial cooperation opportunities with Volkswagen and create significant strategic synergies as we lead the global automobile industry's transition into the AI-powered driving era. Since the first quarter of 2024, our platform and software services have become a significant driver of our earnings. This clearly showcases Xpeng's innovative and unique business model, setting us apart from the traditional auto company.

Speaker Change: This platform, which will be applied to China produced the Volkswagen brand at the EV models are starting from 2025th well integrated ex palms latest generation architecture based on centralized computing and domain controller technologies.

Speaker Change: We are confident in our ability to leverage a more mutually beneficial cooperation opportunities with Volkswagen and creates significant strategic synergy as we need the global automobile industry transition into the AI powered driving Iraq since the first quarter of 2002.

Speaker Change: Thank you for our platform and the software services have become a significant driver of our earnings.

Speaker Change: There's clearly showcases the export of innovative and unique business model.

Speaker Change: Apart from the traditional.

Speaker Change: Also company.

Xiaopeng He: Our cutting-edge smart technology not only enhances monetization through Xpeng's branded EV sales but also through partnership with a world-leading auto OEM. This will result in an expanded market presence and increased financial returns for our company. I would like to emphasize that in such a narrow market, it's not just about the size of the sales. More importantly, it's about multidimensional power.

Well I think that it's not just technology not only enhance the monetization two prongs that branded sales, but also through a partnership with a world leading auto OEM. This will result in an expanded market presence and increase our financial returns for our company.

Speaker Change: Yeah.

Speaker Change: Which is a challenge.

Speaker Change: There's so much redness as hungry man.

Speaker Change: We are you would agree showdown agree more goodness.

Speaker Change: I'm bullish on China, So Eugene women than.

Xiaopeng He: So even though we are facing the speed challenge of the test in the second quarter, Xiaopeng, including the multidimensional power of the organization, is still firm and persistent. But we have already seen the positive impact of these changes. In the second quarter of 2024, we expect to see a total turnover of 29,000 to 32,000 yuan, which will increase by 25% to 37.9%. The return on investment will increase by 32.9% to 46.6%. The revenue is expected to be between RMB 75 and 8.3 billion yuan, which will increase by 48% to 63%.

Speaker Change: I mean, the solicitor food, which helped us finish up on pulpwood tool does that at all jumped into the high that.

Speaker Change: So she doesn't.

Speaker Change: Total amazing Condor children's children.

Speaker Change #100: Oh, yes.

Speaker Change #101: Your article Ghansham, Joseph Jordan, I want you to someone.

Speaker Change #101: Tony So sometimes national suburban stuff that you didn't you I'm a climate it hasn't been satisfied and Joe talked about.

Speaker Change #102: I'm a solo giglia with it maybe it should help us SRU. It taught me is Hudson balance is about all that would give us a sense.

Xiaopeng He: I hope that in the second half of this year, we will see more changes, especially in the fourth quarter of this year. I would like to reiterate, in this ultra-competitive market, we should not only have our eyes on the scale of sales; rather, we should focus on becoming a well-rounded player in the market. Despite the headwinds in the auto market in the second quarter, we have already observed a positive impact from our ongoing organizational and transformative changes.

Speaker Change #102: Up what she that junior shop on the inside that were kind of couldn't talk being singled out it could be a chunk genus digital Shannon has chevron and shell watching goldfield with whatever question, which.

Speaker Change #102: I wish I had a chance to what it shows you need changing you above all that sort of shadow.

Speaker Change #103: Sean Douglas easier for them to adapt to cool feature when a movie I couldn't.

Speaker Change #102: Joe what didn't change.

Speaker Change #104: I would like to reiterate in this ultra competitive market, we should not only have our eyes on the scale of the sales rather as we focus on becoming a well rounded a player in the market.

Speaker Change #104: Find it.

Speaker Change #104: In the auto market in the second quarter, we have already observed a positive impact from our ongoing organizational and transformative changes that said, we anticipate that the total delivery volume will range between 29032 found in that unit in the second quarter of 2024.

Xiaopeng He: That said, we anticipate that the total delivery volume will range between 29,000 and 32,000 units in the second quarter of 2024, reflecting a year-over-year increase of 25 percent to 37.9 percent and a quarter-over-quarter increase of 32.9 percent to 46.6 percent. Furthermore, we predict that our second-quarter total revenue will fall within the range of IMB 7.5 billion to IMB 8.3 billion, representing a year-over-year increase We anticipate witnessing more transformation-driven results in the latter half of this year.

Speaker Change #104: Reflecting a year over year increase of 25% to 37 point to 9% and a quarter over quarter increase of 32, 9% to 46.6%.

Speaker Change #104: Furthermore, we project our second quarter total revenue will fall within the range.

Speaker Change #104: Seven point, despite sedan to RMB, eight 3 billion, representing a year over year increase of 48 point to 1% to 63, 9%.

Speaker Change #104: Dissipated witnessing more transformation didn't result in the latter half of this year.

Xiaopeng He: Starting in October, we will be poised to enter a fast-track growth phase, confident of achieving significant breakthroughs in sales volume, margins, cash flow, and AI-powered advertising systems, and this is for the long run into the future as well. Thank you all. Next, our Finance VP, Jiam, will introduce to you our financial strategy for the first quarter of 2024. Thank you, everyone.

Speaker Change #104: In October we will be poised to enter a growth phase.

Speaker Change #104: In achieving significant breakthroughs and sales volume margins cash flow and AI powered osmosis system and this is before the long long into the future as well.

Speaker Change #105: Let me say that Josh Goldman is how would be Jeff with attitude elements.

Speaker Change #106: D J.

Speaker Change #106: Yeah.

Jiaming Wu: Again, with that, I will now turn the call over to our VP of Finance, Mr. James Wu, to discuss our financial performance for the first quarter of 2024. Thank you, Xiaopeng. Now, let me provide a brief overview of our financial results for the first quarter of 2020. I'll reference R&B only in my discussion today, unless otherwise stated.

Speaker Change #107: Thank you everyone again with that I will now turn the call over to our VP of finance, Mr. James <unk> to discuss our financial performance for the first quarter of 2024.

Thank you for cellphone now let me provide a brief overview of our financial results for the first quarter of 2024.

Speaker Change #108: I'll reference RMB only in my discussion today, unless otherwise stated.

Jiaming Wu: Our total revenues were $6.55 billion for the first quarter of 2020, an increase of 62.3% year over year and a decrease of 49.8% quarter over quarter. Revenues from vehicle sales were $5.54 billion for the first quarter of 2024, representing an increase of 57.8% year-over-year and a decrease of 54.7% quarter over quarter. The year-over-year increase was mainly attributable to higher deliveries, particularly the Model X9 in the first quarter of 2024. The quarter-over-quarter decrease was mainly attributable to lower deliveries of the G6 and the 2024 G9, compounded by seasonal impact, which is partially offset by the contribution of exports.

Speaker Change #109: Our total revenues were $6 five 5 billion for the first quarter of 2024, an increase of 62, 3% year over year, and a decrease of 49, 8% quarter over quarter.

Speaker Change #109: Revenues from vehicle sales were $5 $5 4 billion for the first quarter of 2024, representing an increase of 57, 8% year over year and a decrease of 54, 7% quarter over quarter.

Speaker Change #109: The year over year increase was mainly attributable to higher deliveries, particularly the Moto X nine in the first quarter of 2024.

Speaker Change #109: <unk> over quarter decrease was mainly attributable to lower deliveries of the <unk> six and the 2024 jeannine compounded by seasonal impact, which is partially offset by a contribution of the X nine.

Jiaming Wu: Revenues from services and others were $1 billion for the first quarter of 2020, representing an increase of 93.1% year-over-year and an increase of 22.1% quarter-over-quarter. The year-over-year and quarter-over-quarter increases were primarily attributable to the increases in revenue from technical research and development services related to the platform and software strategic technical collaboration with the Volkswagen Group. Gross margin was 12.9% for the first quarter of 2020, compared with 1.7% for the same period of 2023 and 6.2% for the fourth quarter of 2020. Vehicle margin was 5.5% for the first quarter of 2024, compared with negative 2.5% for the same period of 2023 and 4.1% for the fourth quarter of 2023.

Speaker Change #109: Revenues from services and others were 1 billion for the first quarter of 2024.

Speaker Change #109: Representing an increase of 93, 1% year over year, and an increase of 22, 1% quarter over quarter.

Speaker Change #109: The year over year and quarter over quarter increases were primarily attributable to the increases in revenue from technical research and development service related to the platform and software strategic technical collaboration with the folks working group.

Speaker Change #109: Gross margin was 12, 9% for the first quarter of 2024 compared with one 7% for the same period of 2023 and six 2% for the fourth quarter of 2023.

Speaker Change #109: Veeco margin was five 5% for the first quarter of 2024 compared was negative two 5% for the same period of 2023 and four 1% for the fourth quarter of 2023.

Jiaming Wu: The year-over-year and quarter-over-quarter increases were primarily attributable to the cost reduction and the improvement in the product mix of models, partially offset by the inventory provision and losses on purchase commitments related to the Model P5, with a negative impact of 3.2 percentage points on vehicle margin for this quarter, as management lowered the P5 forecasted sales due to the expected stronger market demand for the upcoming new vehicle model. R&D expenses were $1.35 billion for the first quarter of 2024, representing an increase of 4.2% year over year and an increase of 3.3% quarter over quarter.

Speaker Change #109: The year over year and quarter over quarter increases were primarily attributable to the cost reduction and the improvement in product mix of models, partially offset by the inventory provision and losses on purchase commitments related to the model <unk> five with a negative impact of three two percentage points on vehicle.

Speaker Change #109: Margin for this quarter.

As management lower <unk> forecast of sales due to the expected stronger market amounts for upcoming new vehicle models.

Speaker Change #109: R&D expenses were 135 billion for the first quarter of 2024, representing an increase of four 2% all year over year, and an increase of three 3% quarter over quarter.

Jiaming Wu: The year-over-year and quarter-over-quarter increases were mainly in line with the timing and progress of new vehicle programs. SG&A expenses were $1.39 billion for the first quarter of 2024, which is flat on a year-over-year basis, and then decreased by 28.3% quarter-over-quarter. The quarter-over-quarter decrease was mainly due to lower commissions to the franchise stores and lower marketing, promotional, and advertising expenses

Speaker Change #109: The year over year and quarter over quarter increases were mainly in line with the timing and progress of new vehicle programs.

Speaker Change #109: SG&A expenses were $1 39 billion for the first quarter of 2024, which.

Speaker Change #109: Which is flat on a year over year basis, and then decrease though.

Speaker Change #109: Eight 3% quarter over quarter.

Speaker Change #109: The quarter over quarter decrease was mainly due to lower commissions to the franchise stores and lower marketing promotional and advertising expenses.

Jiaming Wu: Fair value gain on derivative liability relating to the contingent consideration was $0.18 billion for the first quarter of 2024 compared with $0.03 billion for the fourth quarter of 2020. This non-cash gain resulted from the fair value change of the contingent consideration related to the acquisition of Didi's smart automobile. As a result of the foregoing, its loss from operations was $1.65 billion for the first quarter of 2024 compared with $2.59 billion for the same period of 2023 and $2.05 billion for the fourth quarter of 2023.

Speaker Change #109: Fair value gain on derivative liability relating to the contingent consideration was 0.1 8 billion for the first quarter of 2024, compared with 0.0 3 billion for the fourth quarter of 2023.

Speaker Change #109: This non cash gain was resulted from the fair value change of the contingent consideration related to the acquisition of Tvs Smart auto business.

Speaker Change #109: As a result of the foregoing loss from operations was $1 six 5 billion for the first quarter of 2024, compared with $2 9 billion for the same period of 2023, and 2.05 billion for the fourth quarter of 2023.

Jiaming Wu: The net loss was $1.37 billion for the first quarter of 2024, compared with $2.34 billion for the same period of 2023 and $1.35 billion for the fourth quarter of 2024. As of March 31st, 2024, our company had cash and cash equivalents, restricted cash, short-term investments, and time deposits in a total of $41.4 billion.

Net loss was $1 37 billion for the first quarter of 2024.

Speaker Change #109: <unk> was $2 $3 4 billion for the same period of 2023, and 135 billion for the fourth quarter of 2023.

Speaker Change #109: As of March 31, 2024.

Company had cash and cash equivalents restricted cash and short term investments and time deposits in total of $41 4 billion.

Operator: To be mindful of the length of our earnings call, I would encourage listeners to refer to our earnings press release for more details on our first quarter 2024 financial results. This concludes our prepared remarks. We will now open the line to questions. Operator, please go ahead. Ladies and gentlemen, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two.

Speaker Change #109: To be mindful of the length of our earnings call I would encourage listeners to refer to our earnings press release for more details on our first quarter 2024 financial results.

Operator: For the benefit of participants on today's call, if you wish to ask a question to management in Chinese, please immediately repeat your question in English. For the sake of clarity and order, please ask one question at a time. Management will respond, and then feel free to follow up with your next question. Your first question comes from Tim Hsiao with Morgan Stanley. Thank you, Mr. Guan, for answering my question. I have two questions.

Speaker Change #109: This concludes our prepared remarks, we'll now open the lines for questions.

Speaker Change #110: Operator, Please go ahead.

Speaker Change #111: Ladies and gentlemen, if you wish to ask a question. Please press star one on your telephone and wait for your name to be announced if you wish to cancel your request. Please press star two for.

Speaker Change #112: For the benefit of participants on today's call. If you wish to ask a question to management in Chinese. Please immediately repeat your question in English.

Speaker Change #113: Jacobs clarity in order. Please ask one question at a time management will respond and then feel free to follow up with your next question.

Speaker Change #114: Your first question comes from Tim Hsiao with Morgan Stanley.

Speaker Change #114: Yeah.

Yeah.

Speaker Change #115: She is your question initially that he will be able to answer to you is how do.

Tim Hsiao: First, I would like to congratulate you on your improvement in the public cooperation project. I would like to ask you to clarify the scale of the revenue from the platform software technology for the first quarter of public cooperation. In addition, will the contribution of the next few quarters be expected to rise in the short term? In addition, is there a chance for the revenue from the contract for the electronic device architecture announced last month to be recognized this year? This is my first question.

Shannon: So Shannon.

Speaker Change #117: Conversely suggest you go to talk to them.

Speaker Change #117: So hopefully that helps James who they use with alcohol use.

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Speaker Change #118: Nothing like that too shallow of NTT, Docomo, <unk> ph, which is ocean anyway. It sounds like you are completed because it seems again she telcos tells you the ship to shore.

Speaker Change #118: Oh chiefly to 18 years.

Speaker Change #118: Just with T links.

Tim Hsiao: So my first question is about the revenue contribution from the collaboration with Volkswagen. Could management roughly quantify the contribution of service revenue from Volkswagen in the first quarters? And we know that it's recurring, so will it continue climbing quarter over quarter in the following months? Is there any chance that the revenue from the new agreements related to the e-architectures could also come through within the year? So that's my first question. Hi Tim, this is Charles.

Speaker Change #119: So my first question is bound to revenue contribution from the collaboration with Volkswagen.

Speaker Change #119: Because imagine roughly quantify the contribution of the service revenue from Volkswagen and first quarters.

Speaker Change #120: And we know that Tom is to recurring so will it continue climbing quarter over quarter in the following months.

Speaker Change #121: Is there any chance that the ground new front.

Speaker Change #121: New agreements related to the key architectures.

So those who come to within the year. So that's my first question. Thank you.

Charles Zhang: So the platform software collaboration revenue from Volkswagen has been recorded in the service and other revenue in Q1. As you know, that it is recurring. So I think that going forward, every quarter, we will be able to book such platform software technical services revenue. So, in Q1, we booked multi-hundred million RMB platform software services revenue. And I think we believe that in the subsequent quarters, such revenue will be more than what we booked in Q1.

Unknown Executive: Hi, This is Charles.

Speaker Change #123: So the platform of software collaboration revenue from Volkswagen has been recorded in the service and other revenue in Q1.

Speaker Change #124: As you know that it is a recurring in nature, So I think that going forward.

Speaker Change #124: Every quarter, we will we will be able to book such platform and software technical services revenue.

Speaker Change #124: So in Q1, we booked.

Speaker Change #124: We booked a multi hundred million RMB.

Speaker Change #124: Platform and software services revenue.

Speaker Change #124: I think we believe that in the subsequent quarters.

Speaker Change #124: Such revenue won't be more than what we booked in Q1.

Charles Zhang: And so obviously, I think that given the nature of the platform and the software revenue, it is a very high-margin business for us. And we believe that with our vehicle sales business and also the platform and software technical services revenue, our company-level GP margin can be sustainable at a low to mid-teens GP margin percentage.

Speaker Change #124: So obviously I think that given the nature of the platform and the software revenue. It is very high margin business for us and we believe that with our vehicle on vehicle sales business and also the.

Speaker Change #124: And also as a platform and software and technical services revenue.

Speaker Change #124: Our company level GP margin can be sustainable at a low to mid teens GP margin percentage GP margin and therefore, I think that the we jump.

Charles Zhang: And therefore, I think that we have created a very unique business model in the auto industry. In addition to that, we will continue to deliver our cost reductions through technology and also the supply chain and further improve our vehicle GP margin to address your question regarding revenue from the EE architecture, and we expect that revenue from the EE architecture will start to be recognized in the second half. I got it.

Speaker Change #125: <unk> pointed out that we created a very unique business model in the auto industry.

Speaker Change #125: In addition to that and we will continue to to deliver our cost reductions through technology and also the supply chain and to further improve our vehicle GP margin.

To address your question regarding the revenue from the E architecture and.

Speaker Change #125: We expect that the revenue from the E architecture will start to be recognized from the second half of this year. Thank you.

Speaker Change #126: Got it thank you very much Charles.

Speaker Change #127: No material and T C U E Oh sure so Josh.

Speaker Change #128: You have to hit a $10 you see how bundles you mean can be able to eat all just to be totally to the planned out one tomo machines young pseudomonas.

Speaker Change #129: Settlements, which were challenged due to the change on the Ts and dotting is 72 additional major retailer, whose okay Cai.

So they can treat you.

Speaker Change #129: If you could put in June which will be paid out to Asia.

Speaker Change #130: Chuckling, She said shell shown doing the same job. He said I thought we would've been Julien how are you going to pursue because they're seeing the telephone anyway <unk> shelter wish on the CDN.

Speaker Change #129: Sure.

Speaker Change #131: Oh Gee, that's usually some hot change into a social Davidson go without saying that you shouldn't be an issue.

Charles Zhang: Thank you very much, Charles. So my second question is about Tom's writing, because we noticed that Xpeng is to leverage an end-to-end large model to upgrade XGEN-GP by the third quarter of this year to cover basically all roads in China and achieve level four vehicle autonomy next year. So to achieve that target, should we expect Xpeng to metaphorically increase R&D spending during the period? And when do you think such technological leadership can translate into upside to new car sales or potential monetization opportunities? That's my second question. Thank you.

Speaker Change #132: So my second question is down to Tom's Friday.

Speaker Change #133: As we noticed that the experience to leverage hinchey enlarge model to help create <unk> by third quarter of this year. Two covers basically over I was in China and with achieved a level four equally telling me next year.

Speaker Change #133: To achieve that target.

Speaker Change #134: Should we expect <unk> to meaningfully increase R&D spending during the period of time.

Speaker Change #135: And when do you think such a technological leadership can translate into upside to new car sales.

Speaker Change #136: <unk> monetization opportunity. That's my second question. Thank you.

Xiaopeng He: First of all, I would like to correct a statement that we hope to achieve the full L4 capabilities next year instead of achieving L4 capabilities this year because L4 itself requires hardware and needs to be repeated politically, and Xichang, the whole big model, Xichang It means that the people who are writing the rules are, , Therefore, the overall energy consumption did not increase significantly. [inaudible] I believe that it is very difficult to judge the acceleration of a large-scale model after its launch. I used to use numbers to write programs.

Speaker Change #137: A central theme, so far to the menu in children.

Speaker Change #138: With that I hopeful hopeful.

Speaker Change #139: In June she opens up hopefully to us.

Speaker Change #140: Fishing season.

Speaker Change #141: Something good establishing Seahawks.

Speaker Change #141: Sure.

Speaker Change #141: Sure. That's helpful just kind of October.

Speaker Change #141: Thoughts on controlling G H.

Speaker Change #142: And I thought she equated I know you mentioned that.

Speaker Change #143: Yeah Yeah.

Speaker Change #142: Yeah.

Speaker Change #142: Facial I'd say abortion.

Speaker Change #142: Since then.

Speaker Change #142: I know you guys have something there.

Speaker Change #144: And Josh I shouldn't say gondola he'll be back towards <unk>.

Speaker Change #145: What's you're asking.

Speaker Change #145: This is on top of it a quick non coupon done Dom Washington.

Speaker Change #146: Oh, okay.

Speaker Change #147: So you're jostled Belmont either she is Indonesia as what they bill Yeah, Harlan Nice youth initiatives.

Xiaopeng He: It's easier to make clear judgments. For example, I have more numbers, and I have more time, so I can do it. But the model is based on the ability of the data, the scale of the data, and the training. Thank you.

Speaker Change #147: It changed upon that piece or couldn't do what other noteworthy pintano should you as I'm sure you're watching cleanup.

Speaker Change #147: Most in the <unk>.

Speaker Change #147: Sure.

Speaker Change #147: Initially the claim organization yet.

Speaker Change #147: Pushing it.

Xiaopeng He: I think that in 2025. I originally thought that in the latter half of 2025, Autonomous Driving Ability will form a very strong trend. Now, after the big model, it is possible that this time will be accelerated. Thank you very much for your question.

Speaker Change #147: Without that no with I O <unk> know, what the unknown and okay hold on.

Speaker Change #147: And any questions that you got around the country and Chennai that published as a whole you will continue to sit down with teach them yet.

Speaker Change #147: Okay.

Speaker Change #147: Fantastic.

Xiaopeng He: And before I answer your question, there's one correction to make, which is that we hope to achieve the ability of L4 next year. However, we know that being able to actually implement that would also need the hardware as well as the rules and regulations to catch up. So that's point one.

Speaker Change #148: Thank you very much for your question Ian.

Speaker Change #149: I answer your question, there's a one collections in that you can have which is that we hope to achieve the ability of the S.

Speaker Change #149: Oh for next few Afghans out however, we know that are being able to actually implement that they would also need to have the hardware as well as the rules and regulations to catch up. So that's 0.1 and 0.2 with respect to the large models and we know that so AI like model, it's going to have.

Xiaopeng He: And point two, with respect to the large models, and we know that AI large models are going to have a huge impact on all the companies involved. And therefore, as we say in the past, in terms of the rules and regulations people have, those need to change, and the large models will actually generate these new rules. And thirdly, we don't actually need to increase our manpower at the moment, and we have about the same number of people working, and continue to work on globalization. In terms of how fast it's going to take or what the speed is going to be like, I would say that it's hard to say, and it's hard to quantify.

Speaker Change #149: So a huge impact on all of the companies are involved and therefore as we say in the past in terms of the rules and regulations people hub and those need to change and the large models will actually generate to these new rules and certainly we don't actually need to increase our one.

Speaker Change #149: At the moment and we have about the same amount of people working continue to work on globalization.

Speaker Change #149: In terms of how fast it's going to take or what the speed, it's going to be like I would say that it is hard to say, it's hard to quantify and the possible and we relied on the human powered and wouldn't be able to say how many people we would need how much time, we would need to partner with a large lotto model was and is about you know the.

Speaker Change #149: Scale, the algorithm and the speed of supply and my original thinking was that it is going to be the latter half of 2025, and now Wednesday constant development of that technology, and AI and I think that it would be older than 2025 are possible.

Xiaopeng He: And my original thinking was that it was going to be the latter half of 2025. And now, with the fast development of technology and AI, I think that it would be earlier than 2025, or possibly next year. So we'll wait and see. Your next question comes from Ming Li with Bank of America. Hello, Mr. Xiaopeng and all the audience members. I have two questions for you.

Speaker Change #149: The next year, so we'll wait and see.

Speaker Change #149: Okay.

Speaker Change #150: Your next question comes from Ming Li with Bank of America.

Yeah.

Speaker Change #151: Good morning.

Speaker Change #152: The mall was it being sooner.

When you go and Tina.

Ming Li: The first question is about the details of the car models in the future. For the third season of the Monarch Project, what will be the pace of the 2B and 2C cars? And then, can you tell us, because you mentioned that there will be at least one new car every season next year? Can you tell us how many cars will be the Xiaopeng model and how many will be the Monarch model? Let me translate my question first.

Speaker Change #153: When you took a Z.

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Speaker Change #153: Are you more concerned you should something not Matterhorn Disanti does do the project.

Speaker Change #153: Just to be certain to see too tied to the Oh no.

Speaker Change #153: No.

Speaker Change #154: And I'm Gonna Johnson charges.

Speaker Change #154: <unk> 2000.

Speaker Change #155: M a G W.

Speaker Change #156: Sequentially, so no coverage according to embargo.

Speaker Change #156: This will be useful to silicon choices.

Speaker Change #156: Hum.

Speaker Change #156:

Speaker Change #156: No not right now.

Speaker Change #157: Uh huh.

Speaker Change #158: So my first question is related to more details for you on new product pipeline. So in the second half you will have to pay down the first product related.

Ming Li: So, my first question is related to more details of your new product pipeline. So, in the second half, you will have two products. The first product is related to the Monarch Project. Could you give more details regarding the launch timing for the 2B version and also the 2C version? And for the next year's product pipeline, could you also give some guidance regarding the numbers for your Monarch brand product and also your Xpeng brand product? Thank you.

Speaker Change #158: Related to that project.

Speaker Change #158: So could you give more details regarding the lunch timing for that to be version and also to see version.

Speaker Change #158: For the next year, the product pipeline and could you also give us some some.

Speaker Change #158: Some guidance.

Speaker Change #158: Guidance regarding the numbers so for your mono branded product also.

Speaker Change #158: Sure.

Speaker Change #159: Shuffle It comes a brand product.

Speaker Change #158: Yes.

Speaker Change #158: Okay.

Xiaopeng He: First of all, I would like to explain that all of our models, our main customers are all 2C. In the field of 2B, there are a wide range of features, including Mola, including all of them. So when MOLA was first designed, Therefore, in the case of high-priced products, we do not think that it is beneficial in the 2B market. No more time.

Speaker Change #158: So if someone has told me and.

Speaker Change #158: Sure.

Speaker Change #158: Fishing woman.

Speaker Change #158: So vehicle, which had most of the placebo.

Speaker Change #158: That.

Speaker Change #158: Okay.

Speaker Change #158: Especially in Oklahoma.

Speaker Change #160: So what.

Speaker Change #160: What I'll tell you, Chris So Tito so Jessie J colliers.

Speaker Change #161: She searched please.

Speaker Change #161: Koreans, it's only tell me up along with how the Permian.

Speaker Change #162: Got it.

Speaker Change #162: Hum.

Xiaopeng He: Thank you. After the third quarter of this year, we will have different cars in different regions. Some quarters will have more cars, and some quarters will only have modified cars. At the same time, from March 2024 to 2026, we will continue to have relevant activities. , [inaudible] Xie Maopai, And for MONA, this brand, and as we say, because that's what we are looking at is building this to be the most beautiful and aesthetic cars out there in the market.

Speaker Change #162: <unk> genius and it all just whole women's I'd put on that you put up with Honda.

Speaker Change #162: Youll digital weighted towards general color.

Speaker Change #162: What you gave on terrorism.

Speaker Change #162: I'm not sure what to say so.

Speaker Change #162: So then essentially an annuity.

Speaker Change #162: Okay.

Speaker Change #163: Jean Michel quantification.

Speaker Change #163: According to <unk>.

Speaker Change #163: That's really difficult for me to touch on.

Speaker Change #163: That's one life insurance <unk>.

Speaker Change #163: <unk>.

Speaker Change #164: How about it.

Speaker Change #165: Thank you.

Speaker Change #166: Jim Hawaii, Kentucky.

Speaker Change #167: Thank you for your question and first.

Speaker Change #168: First of all in terms of all our car models and the mainstream offer that we bring to the market. It would still be for that to see market at the end it could be market. There is not really our focus including Mona and mono brand and as we say because Scott so what we.

Speaker Change #168: We're looking at is converting those are two of the most beautiful in a second cards out there in the market. So therefore, we do not really see that having too much I'd say the.

Speaker Change #168: Penetration penetration rate into the <unk> market and then secondly, starting from Q3. This year following onward in each different quarters that we will have a different car models are being launched in the market and there's some quarters, perhaps where there will be a few more different models and insertion.

Speaker Change #168: The quarter's that perhaps it will be simply an updated version of an existing model, where a mixed version model so to speak and starting from 2024 through 2020 six we will continue to roll out the different car models into the market and in terms of the specifics.

Xiaopeng He: Therefore, we do not really see this as having too much of a big penetration rate into the 2B market. And starting from 2024 to 2026, we will continue to roll out different car models into the market. And in terms of the specifics, I don't think that I'm in a position to release further details to the market at the moment. And our clients, as you have already heard in my previous presentation, MOLA will be Xiaopeng's series. We will come back next month to share our thoughts on MOLA with the Board of Directors. Today, I will repeat what I just said; MOLA has been a very good experience.

Speaker Change #169: Thank God.

Speaker Change #169: Im in a position to release a further details to the market at the moment.

Speaker Change #169: Our client that you have already heard in my previous presentation.

Speaker Change #170: No more surgical Murat places is sharleen, she had one shovel hit.

Speaker Change #170: Okay.

Speaker Change #171: A J this is.

Speaker Change #171: Contemplate ethane shown them all or some niche.

Speaker Change #171:

Speaker Change #171: Furthermore, our yoplait audience I told maturing portfolio.

Xiaopeng He: And we hope to have a good... [inaudible] Including the highest level of smart driving. So the price of the car is from the current price of more than RMB 200,000 to less than RMB 200,000. This is what we are doing. So the second part of my answer to your question and for the MONA series, and actually, going forward and next month, we will have more to share with the market in terms of our thinking about this And as I said before, for the MONA series, we are looking at building a car that is the most beautiful and the most aesthetic on the outside. And, in addition, we also hope that this is a car that will bring the company a good amount of profits. And it will also cover various grades of intelligent or autonomous driving.

Speaker Change #172: Nigel and Sharon Memorial Day, and then you put on page, but we'll take all that.

Speaker Change #171: Yes.

Speaker Change #171: Okay, let's see charts that neither channel harsher.

Speaker Change #171: So it's from general Dot Dot O, which is excellent.

Speaker Change #171: So chi.

Speaker Change #171: Yeah.

Speaker Change #171: So the second part of my answer to your question and we'll be Mona Lisa and well.

Speaker Change #171: Actually going forward as it warms up a next month, we will have more to share with the market in terms of how we're thinking about our business.

As I said before for more.

Speaker Change #171: Yeah.

Speaker Change #171: Looking at building a car that is the most beautiful and most aesthetic.

Speaker Change #171: On the externally and in addition, we also hope that this is a car that will bring the company good amount of our profits.

Speaker Change #171: Also cover various are great, but intelligent autonomous driving and we hope that in the past for autonomous driving it was mainly for the pause in the price range of above 200000, and with Mone at the Emmys and we hope to bring the autonomous driving into the car with a price range of 200.

Ming Li: And we hope that in the past, for autonomous driving, it was mainly for cars in the price range of above $200,000. With the MONA series, we hope to bring autonomous driving to cars with a price range of within $200,000. In terms of the overseas market, last week, Xiaopeng's brand officially entered Hong Kong. I know that it has recently entered many different countries.

Speaker Change #171: So all of that.

Speaker Change #171: Yeah.

Speaker Change #173: Uh huh.

Speaker Change #174: Hmm I suppose hung with it sounds so simple.

Speaker Change #175: Switching to Shanghai.

Speaker Change #175: It's tricky to do.

Speaker Change #176: Nobody on the call John Oh cause.

Ming Li: Can you please share more with Mr. Xiaopeng and Mr. Ban about our overseas layout this year? Including the initial guidance of tens of thousands of sales and the speed and progress of entering the overseas market, is it in line with our original expectations, or is there a chance to overtake? In addition, as Xiaopeng just mentioned, the speed of NGP testing is very smooth.

Speaker Change #177: Someone's, Ohio, Brian Sabean.

Speaker Change #177: Okay tooth and zones that we will continue to grow.

Speaker Change #177: Puccio not backward looking at GNC.

Speaker Change #177: She one time that you can shut down now about home insurance in terms of how I see time to do the pseudo went into CECO mentioned each of the four.

Speaker Change #177: Sure.

Speaker Change #177: That's how much you know how do you want to highlight.

Speaker Change #178: Oh, gosh, I'm glad you're going to go through those.

Speaker Change #179: <unk> this is the closest Sydney or not.

Ming Li: In this regard, will the investment in R&D be a relatively high factor? Or is it that we are bringing some technology from China? So, last week, the Xpeng brand officially entered the Hong Kong market, and also, in the next few months, Xpeng will enter more and more countries, especially South Asia.

Speaker Change #180: Uh huh.

Speaker Change #180: The idea of total.

Speaker Change #180: Got it you know my usual competitors so.

Speaker Change #180: So I'm drunk all dependent.

Speaker Change #181: Uh Huh she seemed to go.

Speaker Change #181: Is it who didn't have you don't see those it would be done right. When he says you know what you're thinking in terms of the deal. So last week, it's kind of been officially until the market also.

Speaker Change #181: You may makes a few months extremely buoyant.

Speaker Change #181: More and more countries, especially if you are so right now based on where you are.

Hongdi Gu: So right now, based on... [inaudible] You're entering a new phase, right now, are you ahead of your original target? [inaudible] a few times, and Wenyu, an incredible R&D experience because you also provide the XMGP functions overseas. First of all, regarding our overseas plan, I would say this year we are, as you can see, accelerating our pace of international development. We are targeting to roll out to more than 20 countries with our industry-leading technology advanced EBITDA. The exact number of markets obviously also correlates to the type of models that we can make available to these markets.

Speaker Change #181: Oh, not lunching over market and also.

Speaker Change #181: The progress so far.

Speaker Change #181: Yeah.

Speaker Change #182: You too.

Speaker Change #182: Right now too.

Speaker Change #183: You are ahead of your original target.

Sure.

Speaker Change #183: And that total volumes will be a few times.

Speaker Change #183: And.

Speaker Change #184: Well you are incredible R&D expenses, because he will also provide excellent GP common shares in oversea market.

Brian: Amy its Brian let me address your question.

Speaker Change #186: First of all regarding our overseas plan I would say this year. We are as you can see accelerating our pace of international development, we are targeting to roll out to more than 20 countries with our industry.

Speaker Change #186: Industry, leading.

Technology advanced DBS.

Speaker Change #186: The exact number of markets. Obviously also correlates to the type of models that we can make available to these are markets. For example, right now Europe, we are already selling the <unk> nine P. Seven we're launching the lesson driving cheese sticks. This month will hopefully deliver very soon.

Hongdi Gu: For example, right now in Europe, we're already selling the G9 and P7. And we're launching the left-hand drive version in G6 this month. We'll hopefully deliver them very soon. In other markets, for example, in Southeast Asia and Hong Kong, we're launching the right-hand drive in G6, I would say probably in a couple of months. And also, we'll probably be followed with the right-hand drive version of the X9 to be delivered probably by the end of this year or early next year.

Speaker Change #186: In other markets for example in Southeast Asia, and you pointed out Hong Kong, we are launching the right hand, driving G. Six Oh.

Speaker Change #186: I would say probably a couple of months.

Speaker Change #186: So, we'll probably be followed with the right hand, driving X time to be delivered partly by the end of this year or early next year. So as you can see that the the whole international expansion is on track. We think the original guidance. We gave in terms of number in <unk>.

Hongdi Gu: So, as you can see, the whole international expansion is on track. We think the original guidance we gave in terms of numbers, in terms of tens of thousands, as well as this quarter, when we said we would like to achieve more than 10% of our overall delivery number is still valid. So those are the right guidance we want to give on international expansion. And regarding the technical XMGP related smart driving technology, we are actively testing a number of overseas markets, currently also working with regulatory bodies to make sure that this complies with and also develops regulations in these markets. The development is actually not going to make a material increase in our overall R&D.

Speaker Change #186: Mr tens of thousands as well as this quarter, we'd like to cheap more than 10% of our overall delivery number is still valid. So those are the right guidance system Monotype on international.

Speaker Change #186: Expansion and regarding the technical <unk>.

Speaker Change #186: <unk> related.

Speaker Change #186: What's driving technology, we are actively now testing a number of overseas market. Currently also working with regulatory bodies to make sure that this.

Speaker Change #186: Compliance with and also developing regulations in these markets.

Speaker Change #186: The development is actually not going to make a material increase in our overall R&D first of all I think we are still very targeted in the number of markets that we want to bring the a subset.

Hongdi Gu: First of all, I think we are still very targeted in the number of markets to which we want to bring the subsets of our XMGP capabilities. But again, also just echo what Xiaopeng just mentioned, our capability for development has also been increasing now with the help of AI and large model capabilities, and also removing the need for The map, as well as using the large language model to accelerate development in different scenarios, will also benefit our development overseas.

Speaker Change #186: Subsets of our extensive capabilities, but again also.

Speaker Change #187: What Ah shall conscious mentioned our capability of development also has been increasing now with the help of AI and large model capabilities and also removing the need for Hum.

Speaker Change #187: The the map as well as using the large language model to accelerate the development and different scenarios also will benefit our development overseas. So in all I think we will.

Hongdi Gu: So, in all, I think we will look forward to seeing some of these capabilities being made available later this year, as well as probably early next year in some of the overseas markets. [inaudible] Your next question comes from Bin Wang with Deutsche Bank. First, can you describe the scenario for our 4G network? As the leader just said, the sales of 4G will have a very high growth compared to last year. Last year, we had 20,000 units of 4G in a single month.

Speaker Change #187: Look forward to seeing some of these capability being made available by later this year as well as the probably early next year in some of the oversea market and also at the same time, we don't see material increases.

Speaker Change #187: R&D expense because of that effort.

Speaker Change #187: On a single Brian.

Speaker Change #187: Yeah.

Speaker Change #188: Your next question comes from bin Wang with Deutsche Bank.

Speaker Change #189: She's a covenant.

Speaker Change #190: So you can listen to name him, but I'm also sell misleadingly touching a may contain saddam.

Speaker Change #191: So now if we continue we call <unk>.

Speaker Change #190: Alison.

Speaker Change #192: Let's see to Montana.

Bin Wang: Can we assume that we can reach 30,000 units of 4G this year? If it is 30,000 units, how can we distribute them among the current products, such as Mona and F57? At the same time, with such good sales, what should we do with our gross profit? We have three key factors.

Montana.

Speaker Change #193: Josh you Shouldnt I can see it was causing.

Speaker Change #193: Cause some anti nausea stomach.

Speaker Change #194: Some of that churn was on Pega manav.

It was achieved with a passion Changsha Tianjin.

Speaker Change #194: Until we shouldn't that somehow I sit on the shelf in the multi do you guys. In Macau you may have done the Shandong EMEA was done something so beautiful Amanda the part on the jumbo so called vanilla Marty how come toward the puzzling.

Bin Wang: For example, we have a lot of accounts, so we can export more gross profit and contribute more to the public's EEA. Can our gross profit reach 15%? This is my first question. My first question is about the No. 4 quarter this year. You are actually very confident about the No. 4 quarter this year.

Speaker Change #195: Question on margin.

Speaker Change #196: But I can assure you Glenn.

Speaker Change #197: My first question is about the number of full quarter. This year you are actually very confident about the number for this year.

Bin Wang: If you say that, the volume will have a very high growth. If we assume there will be, say, 50% growth in the No. 4 quarter, the monthly volume will be $20,000. So if it was $30,000, what's the breakdown between the existing products and the upcoming Mona and the F57? Meanwhile, can you comment about the margin? Because we see three parts for the margin.

Speaker Change #197: So that the volume will have a very high growth.

Speaker Change #197: There will be a 50% growth on last year.

Speaker Change #197: The full quarter and massive owner will be at 20 K. So if you just study what's the breakdown between the existing products and upcoming Mona.

Speaker Change #198: <unk> David Madge tested then Meanwhile came come up on the margin because with phase III, how default a margin number one is the cost reduction.

Bin Wang: Number one is the cost reduction. Second is the export. Should we have a higher margin?

We certainly have a higher margin set of one additional <unk>.

Bin Wang: And thirdly one, additional EEA income from Volkswagen. So is that growth margin close to 15%? Thank you. Hey Bing, it's Brian.

Speaker Change #199: Income from Volkswagen, So historical matching costs with 15%. Thank you.

Hongdi Gu: Let me just respond. First of all, in the first four quarters of this year, you will see that our Mona product will be in full delivery, and also we'll be launching the delivery of our B segment sedan. So those two products will contribute very meaningfully to the monthly delivery in the fourth quarter, but at very different stages, as you can tell, because starting off the delivery is different.

Brian: Hey, Ben It's Brian Let me just respond first of all in the first fourth quarter of this year you will see that are more on the product will be in full delivery and also will be launching the delivery of our the B segment sedan. So those two product will contribute very meaningful.

Really into the monthly delivery in the fourth quarter, but at a very different at a different stages as you can tell because it's starting off the delivery is different.

Speaker Change #200: So we obey.

Hongdi Gu: So we are very excited about the prospect of both products in terms of generating significant volume. I would say, assuming both models are in full delivery month, I think the monthly numbers we anticipate seem to increase over last year's comparable monthly delivery numbers are achievable. That's what we believe.

Speaker Change #200: Excited about the prospect of both products in terms of generating significant volume I would say the.

Speaker Change #200: I would say assuming both models are in full delivery months I think the monthly numbers, we anticipate increased over last year's comparable monthly delivery number is achievable that's what we believe.

Speaker Change #200: Again, I'm not going to give you the exact number as well as breakdown, but that's how we envision the.

Speaker Change #200: The delivery number of growth, but also what I want to emphasize is that.

Hongdi Gu: Again, I'm not going to give you the exact number as well as the breakdown, but that's how we anticipate the delivery number growth. But also, what I want to emphasize is that, as you just heard, these two products are only the beginning of our super product cycle that will probably last for the next 18 to 24 months. And also, because early next year, and we will also have additional products as well as updated models to be launched in the subsequent quarters, we want to make sure that the growth profile remains stable, as well as under control.

Speaker Change #200: You just heard that this these two product is only the beginning of our super product cycle that will last probably for the next 18 to 24 months.

Speaker Change #200: And also because the the early next year.

Speaker Change #200: We will also have additional products as well.

Speaker Change #200: Updated models to be launched in the subsequent quarters, we want to make sure that.

Speaker Change #200: That growth profile maintain stable.

Speaker Change #200: As well as.

Hongdi Gu: So we actually want to make sure that the additional volume that we want to achieve on a monthly basis is growing in a more stable and sequential manner rather than episodic, you know, big bursts like, you know, some other model launches you've seen. So I think that's, you know, probably lasts until the remainder of next year, given the other models. We'll later, hopefully, give you a prelude to the next few quarters of earnings.

Speaker Change #200: The control so we actually want to make sure the additional volume.

Speaker Change #200: We want to achieve on a monthly basis is growing in a more stable and sequential manner, rather than episodic big bursts like some other model launches you've seen so I think that that's.

Speaker Change #200: Kind of probably lasts until the remaining of next year given the the other models well related pump hopefully it will give you a pretty loose in the next few quarters of earnings in terms of margin I would like to comment first of all I would say the Mona.

Hongdi Gu: In terms of margin, I would like to comment, first of all, on the MONA model. Even though it's an A-class sort of sedan, we are still anticipating healthy positive margin contribution from this model, and also in healthy quantities.

Speaker Change #200: Auto even though it's at a class sort of Sudan, we are still anticipating healthy positive margin contribution from this model and also in healthy quantities for the the beef segment's sedan, we think it's going to be higher margin than probably.

Hongdi Gu: For the B-segment sedan, we think it's going to be higher-margin than our current models, except the X9. So both will contribute, I would say, materially to the gross profit mix. And also, as Charles mentioned, the contribution from Volkswagen will continue and become a steady recurring income. At the same time, we anticipate additional contributions from EEA cooperation. So with all these contributions, as well as our view currently on the potential gross profit margin for the new product, we are maintaining a healthy low to mid-teen margin gross profit for our overall business by the end of this year. Okay, the second question is that we do see our peers have actually launched the EIV version, and the volume has a big increase. What's our plan for our power chain?

Speaker Change #200: Our current models, except the X nine so both will contribute.

Speaker Change #200: Materially to the product are proximate gross profit mix and also us.

Speaker Change #200: Charles mentioned the contribution from Volkswagen will continue to come up steady recurring income at the same time, we anticipated additional contribution from E collaboration so with all this contribution as well as to our sort.

Speaker Change #201: Are you currently on the.

Speaker Change #201: Potential gross profit margin for the new products, we are maintaining healthy mid to.

Speaker Change #201: Low to mid teen margin gross profit for our overall business.

Speaker Change #201: At the end of this year.

Hongdi Gu: Will you also launch the EIV version for products? We generally don't want to answer the question of future clear product planning because this is a planning system.

Speaker Change #201: Okay.

Speaker Change #202: I'm kind of a norm that.

Speaker Change #203: I don't think so that sometimes pushing that down so I think the I'll call. It almost not bring them back how do you call it that way.

Speaker Change #203: And the second question is that we do see our peers actually.

Speaker Change #204: Yeah, Ivy bridge and won't have a big increase what's our plan for our powertrain, where you also announced that <unk> brought to us. Thank you.

Speaker Change #204: Yeah.

Speaker Change #205: Oney bump for you you've laid out they will either does or doesn't mean <expletive> is hey, let's having no clue hot he always says it's really a great quantity Shea.

Hongdi Gu: I think what we can say today is that in the field of aeronautical vehicles, we will use a sincere approach and not disclose any information in relation to our product designs because it is simply still in the planning stage. And going forward, this is something that we would be looking at being implemented in our flying cars. And in terms of the BEV, I can say that for the flying party, and the auto party, there will be BEVs. And so for further details, it is better that we wait until the product actually becomes more concrete when we have more detailed plans and are more ready to share with the market. Thank you.

Speaker Change #206: Ginger and create that as a result, the fishing she's hurting any Maryland, Ohio, Syngenta changes highlighted HHS finish is hurting them. She took since intend to answer that.

Speaker Change #206: Fishing illnesses turned in.

You can fit them in China.

Speaker Change #206: I couldn't do it at home, yet and won't mention Shanghai and I think the timing that you hope it doesn't infringe out.

Speaker Change #206: Yeah.

Speaker Change #207: Hey, Jim.

Speaker Change #208: Thank you for your question and generally speaking, we would not be very willing to disclose any information an invitation to our product designs because some people still in the planning stage and going forward. This is something that we would be looking at it being implemented.

Speaker Change #208: And then third in our flying car seat and.

Speaker Change #208: In terms of B b.

Speaker Change #209: <unk> and I can say that so so why the same party.

Speaker Change #209: So part of it will be BV, and therefore I'll give you further details on it is better that.

Speaker Change #210: Wait until the product actually becomes more concrete one when we have more detailed plans and the progress you can share with the market.

Hongdi Gu: I want to add two of our sincere opinions. I think the first one is that the movement actually has a real need for customers. So now there are a lot of car owners in the past year or so, and I believe in the future, there will be more than a year. This mixed technology, including genuine, is a technology that requires a huge amount of practicality. I believe that many motorists will probably change their charging system for the next car. This is the first thing we see. Archibald Fein. So, please allow me just to add a few points.

Speaker Change #211: And what's happened with home yeah. Good woman they tend to know kind of what you do 50 Eagle just don't see how to Cook, we'll see essentially the three children, Tennessee that machine that can fit on towards I'd say you got to do.

Speaker Change #211: Pet CT Cheetah Union to what we're showing you the Wheeler hygiene in those hitting singles and don't usually deposits in Tennessee, the truth as you'll see shortly the attention that's Oh, my God, you're not familiar with <unk>.

Speaker Change #212: She is solar so common Sasha goodnight.

Speaker Change #213: The anti Kilen chats, you'd seal the pin count so gene targets in Chongqing treat haven't catch it couldn't daughter chisel shouldn't get as hunting. So you will continue with casuals that tallgrass since we're talking.

Speaker Change #215: Yeah, So I'd say somewhere between lets say time to play out.

Speaker Change #214: Paul and the team.

Speaker Change #214: It was challenging and dot com.

Speaker Change #214: Commons at Shiloh insurer.

Speaker Change #214: <unk>.

Speaker Change #214: Does anyone wants and try and get into the whole kind of theme Xuzhou chip I'll finish it.

Speaker Change #214: Yeah.

Speaker Change #216: So please allow me just to supplement a few points and my first point is that Oh, yes, indeed in the past the one year and in the next year coupon, we will see that today, so quite a lot of demand coming from the market, but from the consumer for ph Evs.

Hongdi Gu: And my first point is that, indeed, in the past one year and in the next year to come, we will see that there is quite a lot of demand from the market and from consumers for PHEVs. However, you will see that a lot of these consumers will realize that despite having a PHEV, and out of a year, in terms of the times that they actually go to the petrol station and get it filled up, it's very little, only a few times.

Speaker Change #216: But you will see that a lot of the consumer is that they will realize they want to decide to having a ph D and out of the year.

Speaker Change #216: Since the time that they actually go to the petrol station and then to get it filled up isn't very little only a few times and by having this more.

Speaker Change #216: More and more consumers are actually have more confidence in <unk> and in pure.

Hongdi Gu: And by having this experience, more and more consumers actually have more confidence in BEVs and in pure electric vehicles, so to speak. And at the moment, we are also working hard on the construction and building of our Ultra X5 series of products. And I do believe that for consumers having experienced the PHEVs, and for the next car model, it is very likely that they will go for BEVs. The second part is that from a technical point of view, the cross-country difficulty range from pure electricity to pure electricity is much higher than that from pure electricity to pure water. However, we believe that many challenges have been met in the current generation of real-world vehicles. For example, many challenges have been encountered in globalization.

Speaker Change #216: It could be a publicly.

Speaker Change #216: And at the moment, we are also working hard on the construction and the building of Oh.

Speaker Change #216: Ultra extra flying for a series of products and so.

Speaker Change #216: I do believe that deploy consumers are having experienced the ph evs. It ends up for the next car model and it is very likely that they will go for BD.

Speaker Change #216: And again well financials for Teva.

Speaker Change #217: C Zone Cheung chief reach out to us on since industrial Indiana.

Speaker Change #217: Ryan in two cohorts one trend in Belgium.

Speaker Change #217: Hello, Montana Duncan so you've tightened since these are using kind of a hotel that needle and touch and youll have on pulling out of 112.

Hongdi Gu: Chinese cars are mainly driven in cities, while in some overseas countries, cities and highways are quite proportional. So, in the current situation of high-speed real-world vehicles, there are a lot of people. So, from a different perspective, for Xiaopeng, what will the next generation of Zengcheng be like? This is what we are thinking about. So, in the future, I hope to share more of our thoughts with everyone. In addition, in terms of the technology and the movement from these cars and into BEVs, actually, it's quite a jump in terms of the technology.

Speaker Change #218: She had her exceed that say I shouldn't even coverage for.

Speaker Change #219: Fifth highlight of course, yes.

Cultural towards a chunk of shutting down the PD and then with the cultural journey tend to Duncan to yes or no.

Speaker Change #220: Number three planes as a rotational natural.

Speaker Change #220: That's intermediary shied itunes in system.

Speaker Change #221: So what we're gonna daughter sure Teresa if you can put them in Xi'an and thinking about different genre, you're changing the type of procedure.

Speaker Change #221: In addition in terms of the technology and the movement from the cars and into the auction.

Hongdi Gu: And you can also see if we look at it globally and, you know, for instance, in certain countries in Asia versus certain countries in Europe or elsewhere, and sometimes certain cars could only run on a certain path or certain roads, etc.

Speaker Change #221: Its quite a jump into in terms of the technology and then you can also see if we look at it globally and so you know for.

Speaker Change #221: Certain countries in Asia.

Speaker Change #221: In countries in Europe, and elsewhere, and then sometimes if they can cause could only one on a certain part certain zones etcetera, I and we do think that it is not a simple it is not as straightforward as what we hear.

Hongdi Gu: And we do think that it is not as simple, it is not as straightforward as what we hear from the market. And we do think that, therefore, we would need to be very cautious and we need to be very vigilant. And for XP, obviously, they will also continue to watch the space very carefully. Your next question comes from Paul Gong with UBS. I have two questions.

Speaker Change #221: From the market at the end of it.

Speaker Change #221: So we would need to be very cautious and we need to maintain very vigilant and therefore, obviously, we will also continue to watch this space very carefully.

Speaker Change #222: Your next question comes from Paul Gong with UBS.

Speaker Change #223: So this is just for the Q1.

Speaker Change #224: To go into <unk> into some point of view so call it $1 one from Washington.

Paul Gong: The first question is about the end-to-end large model. There is some feedback from the industry. They say that if the Taiji Foundation uses the end-to-end model as soon as possible, there will be uncertainties because it may not be able to make a decision based on the results it produces.

Speaker Change #225: So uhm reshuffling for the Hydro Shaw.

You shouldn't.

Speaker Change #226: On that one.

Speaker Change #226: You'll push.

Speaker Change #227: Sure thing.

Speaker Change #228: Sure Emily.

Speaker Change #228: Beating.

Speaker Change #228: Sure you can answer.

Speaker Change #229: So I was wondering what you guys have the hard if we can go after and trust that you've about Lora Tamayo from Chris Shaw with some cash at Pantheon, Oklahoma total accretion.

Speaker Change #228: Mike.

Speaker Change #230: Sure So Paul until you've been asked this amount of Chicago. So my first question is regarding the end to end.

Paul Gong: It may not be able to make a precise decision. There is also feedback that when the model becomes larger, the update will be slower. I don't know what Xiaopeng thinks about this, so my first question is regarding the end-to-end big model. There has been some feedback in the industry saying that it involves uncertainty in terms of decision making, and it also makes it more difficult to figure out why the decision was made in that way.

Speaker Change #230: Model there has been some feedback from the industry is seeing that evolve.

Speaker Change #230: For Samsung continued in terms of decision, making and also.

Speaker Change #230: Obviously, it's more difficult to figure out why the decision was made in that way and also the feedback is so in the model.

Paul Gong: And also, the feedback is that when the model becomes larger, it kind of slows down in terms of upgrading. So how does Xpeng think about this issue? This is my first question. [inaudible] Right, let's start from the beginning. When you were designing the model, did you have the same idea? We were all very worried.

Speaker Change #230: Sure.

Speaker Change #230: Kind of slows down in terms of upgrading.

Speaker Change #231: So how does X palms and coupled with the C. Suite. This is my first question.

Speaker Change #230: Yeah.

Speaker Change #232: Uh huh.

Speaker Change #232: Boy that's trade credits.

Jonathan Chang: Sure Jonathan.

Speaker Change #234: Logan and John will get into Shanghai, you fill mentally to worry.

Jonathan Chang: Laurie.

Xiaopeng He: , But with the advancement of technology, we see that [inaudible] We all know that there are many factors in a large model. But the most important thing is how you build your controller, such as your brake system, your black box safety system. So, I think Xiaopeng's car is better in terms of its past automatic driving., [inaudible], We put a lot of effort into this project. Okay, please translate this for me.

Jonathan Chang: That's for sure the tissue to changing and what kind of it doesn't.

Speaker Change #235: Doesn't done Washington choose either to the judge.

Speaker Change #236: And torched.

Thomas: Sure Thomas I'll tell you what's your initial countries when we all get so much it goes yeah, either come to the teacher leader he does it.

Speaker Change #236: So as you know.

Speaker Change #236: Clifford the unchanged.

Speaker Change #236: Cool.

Speaker Change #236: That's just something I want you to get your holiday.

Speaker Change #238: James the shovel, she says a country that's suitable jetson email on that.

Speaker Change #238: 200, <unk> cone true.

Speaker Change #239: And Jim Boyish and garner sitting now in Sydney.

Speaker Change #241: That's a good email tissue okay.

Speaker Change #240: Don't know Thunder.

Speaker Change #240: Those are the two developments and John neither culture to the D J.

Speaker Change #240: Jenny the truth either fungi.

Speaker Change #240: So you've got things that are traditional.

Speaker Change #240: And then you can go out there and you mentioned youre bidding.

Speaker Change #240: That's generally been true quite a figure that would be cheaper than that.

Speaker Change #242: She told us.

Speaker Change #243: Hum Shambaugh FHA gotcha.

Speaker Change #243: Yeah.

Xiaopeng He: Thank you very much for your question. Yes, indeed, in the very beginning, we did worry about it. And, however, with the advancement of technology, we can now see the huge value that end-to-end large models can bring. And, of course, with technology, there are always uncertainties, and what we need to do is to make sure that we are able to keep an eye on and ensure the safety of the black box, of the control of the vehicle, et cetera, and as well as the end-to-end capability.

Speaker Change #244: Thank you very much for your question, yes, indeed in the very beginning we did worry about quarter end, however, with the advancement of the technology. We can now see that huge body of that end to end. The large models that can be on a course of where the technologies are always uncertain and what we need to do it.

Speaker Change #244: To make sure that we are able to keep an eye and ensuring the safety of the black box of the control of the vehicle etcetera and as well as at the end to end the capabilities and secondly, we are also good.

Speaker Change #244: Building a.

Speaker Change #244: Large inside.

Speaker Change #245: Analog model, Yeah that will help us to carry out it's a very it's a pilot in the trials.

Xiaopeng He: I don't really understand the second question, but I can try to explain it. In fact, the big model of autonomous driving and the big model of big languages are not completely the same. In fact, you can understand the logic of the entire model on the basis of Transformer and write it yourself instead of using some open source model. OK, so when you have the ability to use large models, you don't need such a large data variable. For example, the 30 coins that Yejie mentioned, or the larger coins.

Speaker Change #246: I'm going to see everyone here will position to be in Indonesia.

Speaker Change #247: Great and that kind of a choice I think there's a series of.

Speaker Change #247: So don't ask me that I'm wishing for.

Speaker Change #247: The most important change that.

Speaker Change #248: Uh huh.

Speaker Change #249: So these are like Hey, you know what that trial, the formula change without Qingdao, Jason without knocking on doors, yet Richard Ashworth your appetite given the local talent that much okay.

Speaker Change #249: And so.

Speaker Change #249: So you want that motion and then you sort of see.

Speaker Change #249: <unk> hung for shield, which the data shortly the vehicle.

Speaker Change #249: So the usual edition shoulder to the sensitivity you thought it would be the agenda, Washington explicit emotion Ya man from call traditional treat that you're seeing in general with me at <unk> Cushing It doesn't mean to say.

Xiaopeng He: With respect to your second question, I'm not entirely sure if I have understood what you are trying to get, but I'll try my best to answer. And I would say that from an autonomous driving model versus a large language model, these two are actually different when looking at them from transformers, and this is not open source.

Speaker Change #249: So for the margin you mentioned that you thought of jobs Sundhage NP national share.

Speaker Change #250: Yes, it is happening in New York.

Speaker Change #250: Tornado.

Speaker Change #250: Hum.

Speaker Change #250: One of them.

Speaker Change #251: With respect to your second question I'm not entirely sure. If I have understood. What you are trying to get but I'll try my best to answer and I would say that from an autonomous driving model, which is a large language model. These two are actually different than looking at it from Transformers and business.

Speaker Change #251: The open source and if we do have our own model.

Xiaopeng He: And if we do have our own model, actually, we do not need to use such a large amount of data as what the industry requires, what's set to be, and for instance, 30B or whatever, and we would be able, once identifying the appropriate model, to work on that basis and move forward. Thank you. Okay, my second question is about the existing channels. They are usually located in good locations, but the area is relatively small.

Speaker Change #251: We would not need to use it as.

Speaker Change #251: Such amount of data as to what the industry.

Speaker Change #251: Finally, as it was said to be in for instance, or <unk> or whatever it ends up.

Speaker Change #251: Would you be able once identify the appropriate model, yet, but we would be able to work on that.

Speaker Change #252: Move forward. Thank you.

Speaker Change #253: Hi, Thiago winter, so corn, which you thought were taught you shouldn't change all that you've got to get out of the hall.

Speaker Change #254: One was if you call a beach or how do you connect minchey.

Speaker Change #254: So on the shipyard shuttle.

Paul Gong: As Xiaopeng's car and Mona's car are getting more and more expensive, do we need to expand the area of the power grid and even sacrifice this location as a cost? So my second question is regarding the distribution channel. So far, I can see that the stores are mostly in some prime locations, but with a relatively limited area.

Speaker Change #254: You talked to a cell phone chips.

Speaker Change #254: Odd into moving towards that you've got.

Thomas: Thomas I'll handle your question Joseph Shaw.

The amount that you're convincing some.

Thomas: So you should assume telco TPN total your timeshare.

Speaker Change #255: Second question is regarding the distribution channel so far I can see that the stores are mostly in some prime location, but with relatively.

Thomas: Limited area.

Paul Gong: As Xpeng gradually launches more new models and expands the portfolio, including Mona, do you see the need to expand the average size of the stores, or the area of the stores, even at the cost of, say, shifting out from the most prime location? [inaudible] We have been working on the optimization of the channels. For example, we are now working on the downstream channels. At present, we are covering more low-tier cities. (inaudible) The third is that we won't use a very large area for the newly-opened one in the ink. We will use a 4-degree area.

Thomas: Exponent gradually amongst them.

Thomas: All of those and expands our portfolio, including Montana.

Thomas: See the need to expand the average size of the store. So the area of the store even lateral cost I'll say shifting out on the most prime location.

Thomas: Yeah.

Speaker Change #256: Well it is.

Okay, tortured beautiful, Oklahoma, and Michigan as I told you that chassis.

Speaker Change #256: Chairwoman.

Speaker Change #256: Well guy couldn't do a decent sense for them to go up.

Speaker Change #256: Say that you know of course, you don't forget that once you have that Goshen.

Speaker Change #256: It doesn't.

Speaker Change #256: So it is a financial challenges or what are you doing things yeah, Okay, Sid Jones, who at the end of the need to go there.

Speaker Change #256: Well, Cynthia Neiman angle default towards Hershey I'm Gonna colleges.

Speaker Change #256: Is that a woman site.

Speaker Change #256: She can kind of them won't even 10, well milk prices.

Speaker Change #256: Okay.

Speaker Change #256: Certainly manage it sounds that unloading pushy or partial let's have that issue that you'll create out of it.

Speaker Change #256: John.

Tim Hsiao: Tim I'll finish it.

Tim Hsiao: Yeah.

Xiaopeng He: In fact, we don't need to fill all the cars in the ink. [inaudible] Thank you for your question. And, for instance, we are looking at going into the lower tier cities and trying to cover as many lower tier cities as possible. In the past, we have mainly focused on the high-end and the mid-end tier cities.

Speaker Change #258: Thank you for your question and first of all we have always continued to optimize our channels and that for instance would be I'm looking at going into the lower tier cities and did you try and cover as many low tier cities or is it possible in the past we have mainly focused on <unk>.

Xiaopeng He: And secondly, we do believe that 4S stores, these comprehensive stores, would be able to provide better support for services. And thirdly, even with the new stores that we open up in the malls, and again, we are not going to open them up with a huge amount of floor space because we do believe that even with an appropriate amount of space available for these stores in the mall, the conversion rate of successful orders is actually very high. Last year, our 4G network was optimized, and this year's 1G and 2G network is recovering well.

Speaker Change #258: Our high end to end.

Speaker Change #258: And secondly, we do believe that for us.

Speaker Change #259: There'll be the comprehensive report.

Speaker Change #259: Would it be able to provide better support services and the third.

Speaker Change #259: Even with the new stores that will open up in the malls and again, we are not going to open them up.

Speaker Change #259: A huge area of a flaw.

Because we do believe that even with an.

Speaker Change #259: And appropriate amount of space available for these stores in the mall and the conversion rate of successful water is actually very high.

Speaker Change #259: Hum.

Speaker Change #259: Okay.

Speaker Change #260: Youll see that Gina yet.

Speaker Change #261: Since I quit for you here.

Speaker Change #262: That's what I was hoping that you can send it to them in a short time in Nashville, now, we do want to get that deal by deal.

Xiaopeng He: At the same time, on the 3G network this year, we expect the number of sales to increase to 690 million. And, in addition, in terms of our plans for store openings in Q4 last year, we can see that it has been well recovered in Q1 and Q2 this year. And we predict that by Q3 this year, we will have about 600 stores. Thank you very much; that's quite helpful.

Speaker Change #262: We couldn't got a cell phone charger.

Speaker Change #262: Tissue.

Okay.

Speaker Change #262: And in addition in terms of our plans for store openings in Q4 of last year until we can see that answer it.

Speaker Change #262: While recoveries in Q1 and Q2 this year and we predicted that and so by Q3. This year, we will have about a four to 600 stores.

Speaker Change #263: Thank you very much.

Speaker Change #263: Gotcha.

Speaker Change #263: Okay.

Speaker Change #263: Okay.

Xiaopeng He: ??, Your next question comes from Tina Hou with Goldman Sachs. [inaudible] And then maybe this one, have you done this one? And Duan Xiaofei. And then on Mona's side, we also have... [inaudible] So in terms of our Mona brand, so, Thank you. Thank you.

Speaker Change #264: Your next question comes from Tina <unk> Goldman Sachs.

Thanks, guys.

Speaker Change #264: Yes.

Speaker Change #265: Sure women Ducommun upfront.

Speaker Change #265: Awesome.

Speaker Change #265: Sure.

Speaker Change #265: Sure.

Speaker Change #265: James.

Oh man.

Speaker Change #265: Ah yes.

Speaker Change #265: Iot.

Speaker Change #265: Jewelry chicken.

Speaker Change #265: She cheating.

Speaker Change #265: No.

Speaker Change #265: Jojo.

Speaker Change #265: Uh huh.

Speaker Change #265: Uh huh.

Speaker Change #265: Yeah.

Speaker Change #265: What are you guys.

Speaker Change #266: B J.

Sean Douglas: Sure Sean.

Speaker Change #268: So vishal vishal.

Speaker Change #269: Sure Manav.

Speaker Change #269: J P and salmon.

Speaker Change #270: To be to be blunt.

Speaker Change #271: T J D.

Speaker Change #272: Let me just translate so in terms of our mono brand.

Speaker Change #272: For the two C.

Speaker Change #272: Customers.

Tina Hou: What are some of the competing models? And then also for customers with this price, they might have less demand in terms of the smart... Transcribed by https://otter.ai. Also, do we have any sales volume targets? Be Part.

Speaker Change #272: What are some of the competing models in the market and then.

Speaker Change #272: Also for those customers with this price segment.

Speaker Change #272: They might have less demand in terms of the smart functions and hired men for like the pricing. So aside from I think the vehicle design what are some of our key competitive advantages in this segment also.

Speaker Change #273: We have any sales volume target for the to be part of mono distributions. Thank you.

Speaker Change #273: Okay.

Tina Hou: Yes, this question should be addressed at MOLA's press conference. I think at MOLA we can see that..., [inaudible] If the price is lower than other cars, we used to have a model called 10,000 US dollars. If the price is lower by 10,000 US dollars, the sales of the whole car will increase by 1 to 2 times. This is the trend we saw when the number of users exceeded 200,000. This is the main indicator of competition among new users.

Speaker Change #274: So the one his ethos guy women rollout publically natural Gmail assured I'll say, though.

Speaker Change #273: Okay.

Speaker Change #273: Okay.

Speaker Change #273: And so you won't see her she'll Koreans.

Speaker Change #273: So with her where she oversaw the alcohol tubby she's had a sort of J D.

Speaker Change #273: I can tell you is that you want me to <unk> merchandising, so that sort of shut off when she got you tonio phases.

Speaker Change #275: There's oh, sorry, Thomas Amato conduct valuable truth.

Speaker Change #275: The city Kimpton, then you could say to that Delta.

Xiaopeng He: If we can reduce some of the volumes, we will tell you the exact volumes at the press conference. We believe that the scale of demand is very large. It will be two to four times larger than it is now. But in the past, no one has built a car between 100,000 and 200,000 yuan. It's beautiful, spacious, and intelligent. It's because they couldn't do it.

Speaker Change #275: And then I'm going to tie it to the come in shy challenging to treat.

Speaker Change #275: Probably it goes without saying.

Speaker Change #276: Michelle Sheehan, Heather Bellini motor skills.

Speaker Change #276: What is the chance either.

Speaker Change #276: But we won't know what consumer.

Speaker Change #277: No no. That's just our culture, that's English out with similar fashion show on Saturday and Sunday Orange or from Europe showed on Jennie O chalk incident, so anyway, that's all.

Xiaopeng He: I think Xiaopeng and our partners have been working on this for four years. We have invested a lot in this project. I think we can finally start preparing for it.

Speaker Change #278: What would you add.

Speaker Change #278: That's how long does it couldnt be met going in Hawaii cheesy in Florida since the split.

Similarly in auto insurance held shares.

Speaker Change #278: Joe Shockley cut such a painful and it's just something that you guys should see.

Xiaopeng He: I think this is our goal. So, from another perspective, your question, in the field of 2C, we see that there are some friendly cars that sell a lot, between 20,000 to 50,000 units a month. But we feel that we still have a very big positioning difference with it, which makes it meet a lot of demand for beauty, for technology, for users, which did not exist in the past. Thank you for translating for me.

Speaker Change #278: Part of it is only in the winter.

Speaker Change #279: I didn't hear anything there on kind of how you see a downturn you show your furniture as a matter of faith.

Speaker Change #280: No one had one antigen.

Speaker Change #281: Well why don't you just see that what I'm gonna has he or she can fit on top of it.

Speaker Change #282: He was high somehow managed to fit out or do you mean, the <unk> future.

So I think what you're familiar with.

Speaker Change #283: Your balance sheet.

Xiaopeng He: Thank you very much for your question. And actually, this question is better asked at our MONA products launch event. Anyway, I'll make a few comments.

Speaker Change #284: Thank you very much for your question and actually this question is that better.

Speaker Change #285: In our mono product launch event, and so anyway I'll make a few comments and first of all.

Xiaopeng He: And first of all, for this MONA product, as introduced and presented earlier, this is a product with very high beauty as well as external aesthetics. And, in addition, it also comes with a cheaper price. And we actually have a model, which is what we call the 10,000 U.S. dollar rule, which means that every time the price goes down by 10,000 U.S. dollars, you will see that the sales of that product will actually go up.

Speaker Change #285: For this modem called out to us.

Speaker Change #285: Produced and presented already oriented this is a product with a very high.

Speaker Change #285: Beauty as well as external aesthetics and.

Speaker Change #285: In addition, it also comes with a key part of potency and we actually.

Speaker Change #285: But in motto and a which is what we call. The 10000 U S dollar rule.

Speaker Change #285: Which means that every time the price goes down by 10000, but yes. Some of it is again you will see that it does scale with all that product will actually go up.

Xiaopeng He: By one time, it will actually go up by two times. And this model has been validated in our old experience with our other vehicles in a price range above 200,000. And now, if we were able to implement this and give a bit of a price discount for the MONA series, and in terms of the specific price reduction, we will talk about that in our MONA product launch. And I believe the sale that we are looking at is actually huge. And I would say it's about two to four times the present level.

Speaker Change #285: By one time, what actually go up by two times and.

Speaker Change #285: This model has been validated in our old XD aligns well with our other vehicles as well as our price range above 200000, and now is we would be able to implement and.

Speaker Change #286: Did you give a bit of a price discount for Mona theory.

Speaker Change #286: And just in terms of the specific price reduction we will talk about 2000 in our monarch product launch again, so I believe that scaled out until they are looking at is actually huge and I would say, it's about two to four times of the present level.

Xiaopeng He: In the past, for the 100,000 to 200,000 price range, nobody was able to provide the consumers with a car that is not only beautiful, has good space, but also a smart car with very good technology. After four years of hard work and R&D and so much investment into this, XP has been able to come up with a product, MONA, that is able to meet all the above demands. In other words, if you look at our competitors at the moment, yes, some of them say that they can sell 20,000 to 50,000 units of cars per month.

Speaker Change #287: Well it wasn't due to 200000 price range nobody was able to provide to the consumer with a cost that is not only beautiful has a good space, but also a small car with very good the technology. After four years of hard work and the R&D and so much investment into that.

Speaker Change #287: Finally, <unk> has been able to come up with a product.

Speaker Change #287: That is able to meet all the above but demand in other words, if you look at our competitors at the moment, yes. Some of them say that the data. So 20 to 50000 units for class a per months and high but I can assure you that oh for our mono products.

Xiaopeng He: However, I can assure you that for our MONA product, you would see a huge difference between our car and the competitors' cars, because not only are we able to provide the beauty, provide the space, but also to provide this range of prices with good technology and good smart driving functionality that was not able to be met in the past. We have been discussing and thinking for a long time about the need for naturalization. I think there are two ways.

Speaker Change #287: Would see a huge difference between our card JCB competitors, causing because not only that we are able to provide the beauty to provide you. This data, but also to provide it.

Speaker Change #287: A range of apprised of what a good technology and good.

Speaker Change #288: Smart driving functionality you said that it wasn't just needed that was not able to be met in the past.

Speaker Change #289: I'm not going to sit on quite a few charges.

Speaker Change #289: And so when they are tolerant enjoys shook out on your table.

Xiaopeng He: First, we will provide a version with different intelligent classifications to satisfy some users who may not need them. Wang Wang bu shi shu qu niu liang de gao nan,, . In fact, for users in the range of 100,000 to 200,000, more people need high-level smart homes, but they think it's too expensive. Once they get this high-tech product, they can afford to pay the price. I think in the next year, in 2015, we will see... [inaudible] So to answer your second question, and with respect to smart driving or autonomous driving, I would say that it is likely, yes, some of these consumers may not need very highly advanced functions, and we will possibly be looking at a strategy that is stratifying and giving out different levels of ADAS to It is rather that the people who are making fewer phone calls are the high-end data generators.

Speaker Change #289: Virginia Goodbye or just Eagle and hopefully get a foothold in general Huffington. The typical time that two.

Speaker Change #289: Two months, what kind of rates for sort of your people in New York with current and potential.

Speaker Change #290: That's Oh, you don't you've got your channel that you know what I'll tell you the same challenge.

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Speaker Change #292: A woman.

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Speaker Change #294: You've done.

Speaker Change #295: Uh huh.

Speaker Change #295: Golf coach at Etame, and then how you might look for that channel because it's true that ashish.

Speaker Change #295: Well the way that took us.

Speaker Change #295: Yes.

Speaker Change #295: They were kind of out of the shoot you though.

Speaker Change #295: Chip.

Speaker Change #295: So to answer your second question with respect it too.

Speaker Change #296: Smart driving.

Speaker Change #296: Our society and I would say that so.

Speaker Change #296: Likely yes that some of these the consumers that they may not need it very highly advanced the functions and we will probably be looking be looking at that.

Speaker Change #297: So I think he thought is classifying them there danielle to different levels, all that to the consumer is that and I would actually like to pull to the internet to the thinking that so when I was establishing my business and it's something that was quite popular in the industry back in those days and.

Speaker Change #297: What it says is that for the mobile phone users are actually they are not at the high end the generators at the data. It is a rather that the people who are making fewer phone calls that are at the high end the data generally so.

Xiaopeng He: So to adopt that analogy or that thinking, and if we look at the 100 to 200,000 RMB price range, this is actually the group of consumers that would need more autonomous driving functions. It's simply that in the past, this was out of their price range, and they were not able to afford it. Once they are able to afford this, they will be all over the autonomous driving cars in this price range, and I do believe that next year, in 2025, we will see this coming into reality. So Tina, and also this is Brian.

Speaker Change #298: Got it bad analogy.

Speaker Change #298: If we look at the 100 to 212 and RMB price range and this is actually the group of consumers that that you would need more of the autonomous driving functions.

Speaker Change #298: In the past this was out of their price range and they were not able to afford it once a day are able to afford today they would be all over the autonomous driving cars that in basis points range.

Speaker Change #298: But he thought that next year in 2025, we will see that coming into a reality.

Speaker Change #298: Okay.

Hongdi Gu: Let me just comment on your question about the 2B segment. You know, what we see in this price segment product, the successful 2C product will also be used quite prevalently in 2B channels as well. So I think a success of this product, even though not targeted at the 2B segment, will still have significant use cases applied to 2B mobility use. And also, with our partnership and collaboration with DD, I think that the multipurpose sort of use cases will be very, very prevalent in our user base for MONA.

Brian: So T. Now so this is Brian let me just comment on your question on the <unk> segment.

Brian: What we see in this price segment.

Brian: Product.

Brian: The successful C to C product will also will.

Brian: It will be used quite prevalent into the channels as well. So I think our success of this product, even though not targeted at the <unk> segment, but still we'll have significant obviously use cases supply too to be mobility use and also with our partnership and collaboration with Didi <unk> I think that that multi purpose. So you.

Brian: As the case, there will be very very prevalent in our user base for Mona.

Speaker Change #299: Oh, sorry.

Hongdi Gu: I would like to follow up on the topic of 2B. [inaudible] So just to quickly follow up, so for the part, we still expect 100,000 units in the first 13 months and then 100,000 units in the second 13 months. Wang.

Speaker Change #300: A follow up you saw Georgia to Vijay Kumar Nolan.

Speaker Change #300: Joseph.

Speaker Change #300: Judith.

Speaker Change #300: So I'm going to issue.

Speaker Change #301: Does that address your issue on this hotel.

Speaker Change #302: So just to quickly follow up so for the to be part should we still expect a 100000 units in the first 13 miles and then 100000 units in the next 12 months is that still a reasonable expectation. Thank you.

Hongdi Gu: The agreement we have with Didi is still valid, and we still provide such an incentive for Mona to be used in Didi's system. If they achieve those targets in volume, I think the incentive will still be valid. No, I think if you read our agreement, which is made public available, it is actually an agreement that if the Mona product is used in the DD system, in the mobility ecosystem, they could, up to a certain number, receive additional incentives. It does not relate to their own purchase.

Speaker Change #303: The agreement, we have with Didi still valid we still provide such incentive for moana to be used in the system.

Speaker Change #303: In.

Speaker Change #304: They achieved those in volume I think all of that.

Speaker Change #305: <unk> will still be valid.

Speaker Change #305: Yes.

Speaker Change #305: So this is <unk>.

Speaker Change #305: Finally.

Speaker Change #306: I just have two D G. How many they want to purchase.

Speaker Change #307: No I think if you read our agreement, which has made a public available. It is actually an agreement if the mono product is used in the <unk> system in the mobility ecosystem they could.

Speaker Change #307: Up to a certain number they will receive additional incentive it does not relates to their own purchases.

Speaker Change #308: Okay. Thank you.

Unknown Executive: The second question is about our software service revenue. Translated by https://otter.ai, [inaudible] So we see that recognition has started and has been very helpful in terms of our overall margin and profit. So because our collaborative agreement with Volkswagen is not.

Speaker Change #309: Neither do I go on tissue Zachman does Google runs, yes Rajiv.

Speaker Change #309:

Speaker Change #310: Oh geez.

Speaker Change #311: How are you.

Speaker Change #311: Literally.

Speaker Change #312: Oh, John Peeler.

Speaker Change #312: That.

Speaker Change #312: Oh, you with Amazon.

Speaker Change #312: So you should get pushed you're passing most recently.

Speaker Change #312:

Speaker Change #312: Sure.

Speaker Change #313: As you know Chi pencil Vince.

Speaker Change #313: Oh sure.

Speaker Change #313: Lisa Damiani your more <expletive>.

Speaker Change #314: My second question is in terms of the software services revenue also with C started recognition has been very helpful. In terms of our overall margin and profitability. So because our collaboration agreement with Volkswagen is not exclusive.

Hongdi Gu: Are we actually... Exploring a similar collaboration with others Hi Tina, I think that our strategic collaboration with Volkswagen actually created a very strong value, strategic value to each other. For example, we are collaborating on the technology, and we are also collaborating on the supply chain, and also, during the process, we also identified opportunities to work more closely going forward in other areas. We believe there are a lot of things we can do as a strategic partners to each other.

Speaker Change #314: We actually actively exploring similar collaboration with other partners.

Speaker Change #315: I think that does our strategic collaboration with Biogen actually.

Speaker Change #315: Create a very strong value strategic value to each other for example, we are collaborating on a technology and also we're collaborating on supply chain and also during the process. We also identified the opportunity to work more closely going forward in other areas we.

Speaker Change #315: We believe there are a lot of things, we can do as a strategic partner to each other.

Speaker Change #315: However, I think that the.

Speaker Change #315: From that.

Speaker Change #315: From a collaboration perspective, our collaboration with <unk>.

Hongdi Gu: However, I think that from the collaboration perspective, our collaboration with We are not exclusive to each other, so therefore, I think that we are also open-minded to looking for strategic collaboration opportunities with other players. However, I think that what we value most is that we see how we can bring value to a partnership and create value for each other, not just a supplier-related relationship. That does conclude our question and answer session. I'd like to turn the call back over to the company for closing remarks. Thank you once again for joining us today.

Speaker Change #316: Well second we're not exclusive to each other.

Speaker Change #316: So therefore I think that we are also open minded.

Speaker Change #316: Two are looking for the strategic collaboration opportunity.

Speaker Change #316: With other players.

Speaker Change #316: However, I think that what we value most is that we see the how we can bring.

Bring value to our partnership and accretive value to each other.

Speaker Change #316: The supplier latest relationship.

Speaker Change #316: Yeah.

Speaker Change #317: That does conclude our question and answer session I'd like to turn the call back over to the company for closing remark.

Speaker Change #318: Thank you once again for joining US today. If you have further questions. Please feel free to contact <unk> Investor relations through the contact information provided on our website or the Pearson financial communications.

Operator: If you have further questions, please feel free to contact Xpeng's investor relations through the contact information provided on our website or the Pearson Financial Communications. This concludes today's conference call. Thank you for participating. You may now disconnect. [inaudible] [inaudible] music music music music music music music music music music music music music music music music music music music music music music music music music music music music music music music music TKA Subbers Transcriber & Translator Alina Dibyadzina http://iswakfansubs.blogspot.com http://iswakfansubs.blogspot.com, [inaudible] TKA Subbers Transcriber & Translator Alina Dibyadzina http://iswakfansubs.blogspot.com, [inaudible] you can see the temple of Hermitage, the central toll-house of Hermitage.

Operator: Hello, ladies and gentlemen. Thank you for standing by for the first quarter 2024 earnings conference call for XPeng Inc. At this time, all participants are in listen-only mode. After management's remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Mr. Alex Sheets, Head of Investor Relations of the company. Please go ahead, Alex.

Alex Xie: Thank you. Hello, everyone, and welcome to Xpeng's first quarter 2024 earnings conference call. Our financial and operating results were issued via Newswire services earlier today and are available online. You can also view the earnings press release by visiting the IR section of our website at ir.xiaopeng.com. Participants on today's call from our management team will include our co-founder, chairman, and CEO, Mr. He Xiaopeng; vice chairman and president, Dr. Brian Gu; vice president of corporate finance and investments, Mr. Charles Zhang; vice president of finance and accounting, Mr. James Wu, and myself. Management will begin with prepared remarks, and the call will conclude with a Q&A session. A webcast replay of this conference call will be available on the Investor Relations section of our website.

Alex Xie: Before we continue, please note that today's discussion will contain four forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainty. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the relevant public filings of the company as filed with the U.S. Securities and Exchange Commission.

Alex Xie: The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that Xpeng's earnings price release and this conference call include the disclosure of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. Xpeng's earnings price release contains a reconciliation of unaudited non-GAAP measures to unaudited GAAP measures. I will now turn the call over to our co-founder, chairman, and CEO, Mr. He Xiaopeng. Please go ahead.

Speaker Change #319: This concludes today's conference call. Thank you for participating you may now disconnect.

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Speaker Change #319: [music].

Xiaopeng He: Hello everyone, this is Xiaopeng. In the first quarter of 2024, Xiaopeng's sales volume was 21,800 units, which is 20% higher than the first quarter. In the midst of fierce competition in the market, the gross profit of the first quarter has doubled compared to the fourth quarter, increasing by 6.9% compared to the fourth quarter last year. The overall increase is 12.9%.

Hello, Ladies and gentlemen, thank you for standing by for the first quarter 2024 earnings conference call for X Penguin.

Speaker Change #320: At this time, all participants are in listen only mode.

Speaker Change #321: After management's remarks, there will be a question and answer question Today's conference call is being recorded I would now.

Xiaopeng He: Xiaopeng has realized the smart electric vehicle business. We have also made a profit through the cooperation and output of smart technology. This creates a new, unique model.

Alex: Now I'll turn the call over to your host Mr. Aleksey <unk> head of Investor Relations of the company. Please go ahead Alex.

Xiaopeng He: Xiaopeng has been in the car industry for 10 years. He has been involved in the development and investment of high-strength technologies such as the autonomous electronic car platform, EEA electronic motor architecture, and smart driving. At present, it has been converted into a good financial return.

Speaker Change #323: Thank you Hello, everyone and welcome to <unk> first quarter 2024 earnings conference call, our financial and operating results were issued about newswire services earlier today and available online you can also debuted our newest press release by visiting the IR section of our website at IR Docs Sharpie Dot com.

Speaker Change #324: Participants on today's call from our management team will include our co founder Chairman and CEO, Mr. Zhao Peng Vice Chairman and President Dr. Brian <unk>, Vice President of corporate Finance and investments Mr. Chau Cheng Vice President of Finance and accounting, Mr. James Hu and myself.

Speaker Change #324: Management will begin with prepared remarks, and the call will conclude with a Q&A session. A webcast replay of this conference call will be available on the IR section of our website.

Speaker Change #324: Before we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995.

Speaker Change #324: Forward looking statements involve inherent risks and uncertainties.

Speaker Change #324: As such the company's results may be materially different from the views expressed today.

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

Speaker Change #324: The company does not assume any obligation to update any forward looking statements except as required.

Speaker Change #325: Couple law. Please also note that <unk> earnings press release, and this conference call includes a disclosure of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures <unk> earnings press release contains a reconciliation of unaudited non-GAAP measure.

Speaker Change #326: As to the unaudited GAAP measures I will now turn the call over to our co founder Chairman and CEO. Mr. <unk>. Please go ahead.

Xiaopeng He: In an era where AI is about to overthrow and rebuild China and even the global automotive industry, Xiaopeng is the first to realize the negative energy output of self-sustaining and intelligent technology. Good evening, everyone. In the first quarter of 2024, Xpeng announced the delivery of 21,821 smart EVs, marking a 20% year-over-year increase. Notwithstanding significant market competition, our first quarter growth margin expanded substantially to 12.9%, doubling from the previous quarter with an increase of 6.7 percentage points.

Speaker Change #326: Okay.

Speaker Change #327: That's helpful.

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Speaker Change #331: Hungary is on changing the general turbos and Michelle onto the song yet or Sunil and with Genesis that shouldn't you know she 13 E <unk> in Chicago.

Speaker Change #331: So then just that tissue that go jumbo CGM problem in total will generate high using Charles Holley Jaco, that's how old okay.

Speaker Change #332: She doesn't care, who can get phone calls from <unk> into <unk> to see that shoveling, Australia, so you're going to say.

Speaker Change #332: So yes.

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Speaker Change #333: Hi, Jim.

Speaker Change #333: In the June Hudson does have a soda when needed.

Speaker Change #333: Most of what's happening you've got singles.

Speaker Change #334: Shell pumping OTT chances, she should trend toward achieving function and the union Sheila could you.

Speaker Change #335: Good evening, everyone in the first quarter of 2024 excellent announced the delivery of the 21821, smart EV, marking a 20% year over year increase notwithstanding significant market competition, our fourth quarter gross margin expanded substantially to 12.

Speaker Change #335: 9% doubling from the previous quarter would that increase six seven percentage points. This development underscores the X points at tentative approach to enhancing profitability and international market potential here.

Xiaopeng He: This development underscores Xpeng's innovative approach to enhancing profitability and international market potential through the provision of smart technologies based on its smart EV business. This has created a completely new, unique model. Over the past decade since its inception, Xpeng has consistently made a robust investment in R&D for smart EV platforms, electrical, and electronic architecture, and advanced driver assistance systems, or ADAS for short. These strategic investments are now yielding positive financial outcomes. As artificial intelligence continues to redefine the auto industry in China and globally, Xpeng has been at the forefront of exporting its in-house developed smart technologies, resulting in significant recurring revenue and profits.

Speaker Change #335: A vision of smart technology based on its smart EV business does that has created a completely new unique model over the past is that data since its inception exponent has consistently made a robust investment in R&D for smart EV platforms, electrical electronic architecture and advanced driver.

Speaker Change #336: Assistant system, what are the puts you like to.

Speaker Change #336: We'll keep it investments are now yielding positive financial outcomes as part of their field intelligence continues to redefine the auto industry in China and globally ex one would have been at the forefront of exporting it enhance it developed the smart technology.

Speaker Change #336: Insignificantly recurring revenue and profit. This achievement is point it can profoundly impacted the companys profitability model and building confidence in paving the way for further technical advancement.

Xiaopeng He: This achievement is poised to profoundly impact the company's profitability model, instilling confidence in paving the way for further technical advancement as Xpeng continues to lead the technological transformation within the automotive sector. Since the first quarter, we have raised 4.14 billion RMB in capital.

Speaker Change #336: Continues to lead the technology transformation within the automotive sector.

Speaker Change #336: Yeah.

Speaker Change #337: How much is it easier to women that cycle changes is super easy to see that number possible guys have pneumonia you just showing you the changing no woman shuffle them until you can jump quoting tool strengths in Italian generation three shelf.

Xiaopeng He: The large-scale improvement in capital and the abundant cash allow Xiaopeng to pay more attention to long-term strategic choices. So Xiaopeng's strategy will not only focus on sales growth as before, but we will also pursue high-quality, high-efficiency, and comprehensively improve the company's overall performance in such a short market. This is the only way to gain greater scale and profit in the long run. I am very happy that Xiaopeng has started to think about this and made such a change earlier than most companies. And now the change is very stable.

Speaker Change #337: It jumped boy it Shouldnt change young Joe Yeah, Yeah.

Speaker Change #338: Showed as you know I'm couldn't <unk>. It seems like that similar trend. This is home inventories Jocosa don't go Saudi Chairman and she is in concert film quality Sylvanus Humber couldn't town shoes, they have done that a bunch of ammonia in the TV guys say.

Speaker Change #339: China got that Tom honeymoon.

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Xiaopeng He: Next, we will firmly push for the adjustment of the entire change and accelerate the introduction of key talents to continue to enhance the company's organizational ability and strategic executive power. Through the highly integrated smart technology platform of Xiaopeng's big AI today, we are confident to launch a more efficient, more competitive model in the future on a global scale to lead the large-scale development of AI self-driving vehicles. At the end of Q1, we had RMB 41.4 billion in cash.

Speaker Change #339: Chuck a question in AG tissues.

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Speaker Change #340: The judge has had a tough one way to put it.

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Xiaopeng He: With our significantly improved growth margin, this healthy cash position allows us to concentrate more on strategic initiatives for the future. Our strategic transformation is not solely focused on boosting sales volume as it was in the past. We're also dedicated to achieving excellence in quality, efficiency, and overall enhancement of the company's competitiveness. By leveraging our strengths and addressing any weaknesses, our goal is to become well-rounded and pursue larger scale and profits in the long run. I am very delighted to say that we were able to start with thinking and have this vision much earlier than our peers.

Speaker Change #341: At the end of Q1, we had RMB $41 4 billion in cash without was significantly improved the gross margin with a healthy cash position allows us to concentrate more on our strategic initiatives for the future.

Speaker Change #341: Our strategic transformation is not only focused on boosting sales of volume as the part. We're also dedicated to achieving excellence in quantity efficiency and overall enhancement of the company's competitiveness.

Speaker Change #341: Leveraging our strengths and addressing any weaknesses I won't go into become well rounded and pursue larger scale and profit in the long run I am very delighted to say that we have been able to.

Speaker Change #341: What's the thinking and Hartford position much earlier than our peers moving forward, we will vigorously dry this transformation, whilst accelerating crucial talent recruitment and improving organizational effectiveness.

Xiaopeng He: Moving forward, we will vigorously drive this transformation whilst accelerating crucial talent recruitment and improving organizational effectiveness in strategic execution. We have confidence that with our hyper-integrated comprehensive intelligence technology platform, Xpeng is well-positioned to efficiently launch highly competitive models worldwide and lead the widespread adoption of AI-powered smart cars. , We now have top talent joining us in many areas, including auto driving, brand marketing, styling, design, etc. We will introduce some of them to you in the near future.

Speaker Change #341: Good execution, we have confidence that with our hyper integrated comprehensive intelligent technology platform excellence is well positioned to efficiently launch highly competitive models worldwide and the need that the widespread adoption of AI powered smart cars.

Speaker Change #342: I'm not.

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Speaker Change #345: And then sorry go near you soon at <unk> in June and touch outerwear.

Speaker Change #346: So don't guess pimco and shell so she associated pneumonia pufendorf particular merchant.

Xiaopeng He: We will also accelerate marketing, customer experience, design, etc. to improve the industry's most advanced level. We need to turn good technology into good customer experience and good products. We also need to use good marketing to better convey the value of technology and products to our customers.

Speaker Change #347: Well me away.

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Speaker Change #348: <unk> Hello.

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Xiaopeng He: So on the basis of the short-term, our AI capabilities are leading in the industry, and our overall technology development system support, we will rapidly scale up in the world. We believe that this is the long-term solution we have come up with. Since the beginning of 2024, Xpeng has been actively recruiting top talents in R&D, brand marketing, style design, and other key areas. We will soon introduce them to you.

Speaker Change #348: She just had one hopefully that trend your parcel the changing global hot approaching number Bob.

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Speaker Change #349: The moment Michel I shouldn't say assortment, she isn't that somebody else.

Speaker Change #349: Yeah.

Speaker Change #350: Since the beginning of 2024 X Paul Hudson actively recruiting top talent.

Speaker Change #350: R&D planned marketing style design and other key areas.

Xiaopeng He: Our goal is to rapidly elevate our marketing, customer experience, and design capabilities to the industry's most cutting-edge levels. This will enable us to effectively translate our advanced technologies into compelling product experiences and utilize marketing strategies to better communicate the value of our technology to customers. With our weaknesses properly addressed, our industry-leading AI capabilities, comprehensive R&D framework supporting rapid global scalability, and customer-oriented product design will better serve as the competitive edges that set us apart and drive our success. For example, in the first quarter, our large 7-seater flagship car, X9, became a pure electric MPV and a pure electric 3-row car in the third quarter.

Speaker Change #350: We'll soon introduce them to you I'm gonna go into rapidly elevate our marketing customer experience and design capabilities to industry. The most cutting edge.

Speaker Change #350: This will enable us to effectively translate to our advanced technologies into compelling product experiences and utilize our marketing strategies to better communicate the value of our technology to customize it with our weaknesses are properly addressed our industry, leading AI capabilities comprehensive R&D.

Speaker Change #350: The framework supporting rapid global scalability and customer oriented product design or better as soon as.

Speaker Change #350: The competitive edges adapt to set us apart and drive our success.

Speaker Change #351: But digital one would've thought she she.

Speaker Change #352: <unk>. That's also a project somewhere else for India, MTBE, just trying get a sun hydraulics wasn't a shadow.

Xiaopeng He: So I think X9's success fully illustrates that product innovation and technological innovation are more effective competitive strategies. In the next few years, we will continue to enrich our high-end series of product lines based on X9's good reputation and experience, providing more advanced smart technology for large family users. ,,,,,, During the first quarter, the X9, our large 7-seater flagship model, emerged as a top seller in the pure electric MPV segment, as well as the pure electric three-row model segment following its market launch.

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Speaker Change #354: During the first quarter the X nine our largest seven seater flagship model.

Speaker Change #354: As a profit center in the pure electric MPV segment as well as the pure electric models segment following his market launch.

Xiaopeng He: The success of the X9 firmly establishes product innovations and technological advancements as our most effective competitive edges. Moving forward, we will confidently build on this success to enrich our premium product portfolio. Our aim is to provide family customers with the most advanced smart EV technologies in large vehicles, delivering styling, space, comfort, and opulence akin to luxury cars priced above 1 million RMB. Starting from the third quarter of this year, we will launch a strong collection of products with multiple new designs in three years. Then it will cover the main areas of the $100,000 to $400,000 price range. And all of our products will stick to the lead of smart driving.

Except that the X nine firmly establishes our product innovation and the technological advancement as our most effective and competitive edges.

Speaker Change #354: Moving forward, we will confidently build on visits.

Speaker Change #354: To enrich our premium product portfolio. Our aim is to provide a family customized with the most advanced and smart technologies and large vehicles, delivering finding space comfort and opinions I can to luxury cars.

Speaker Change #355: One minute R&D.

Speaker Change #356: And what's launching in Sun's negotiable Magellan catches his son Nguyen.

Speaker Change #356: We'll talk on Trenching, Celgene, though you could challenge in that time window genotype.

Speaker Change #356: Yes.

Speaker Change #356: The charter type.

Joe Shockley: Yes, you mentioned because you don't follow highlight towards Russia, It's Joe Yeah trying to option that was Hershey machine was all the time.

Joe Shockley: On the shorter term indulgence. So then adjusted I mean Chin Tulsa talk about all the time, he or she is Chad which suggests that <unk>.

Xiaopeng He: At the same time, through the training of multiple products, we will satisfy different customers in terms of price range and design, including Chinese and even global talent. Our goal is to build a super brand that covers a wide range of products in the global market, like a mass-produced car in the era of smart electric cars. And to make AI automation the most important technology.

Speaker Change #358: Jim Antal put on Cushing, but what's onboard since the change of our Taiwan.

Speaker Change #359: Oh, and then the whole Bill suggest Susan didn't notice that although you go shop.

Speaker Change #360: She said, yes, we'll get Chinchillas just on thoughts on combination.

Speaker Change #361: Well, Paul cushion that you guys. How would you view by Vinci AI. This is John Choi suites, we are appealing.

Xiaopeng He: In the third quarter of this year, we will embark on an extensive product launch cycle, introducing a number of new models within the next three years. These models will cover major price segments, ranging from R&D 100,000 to R&D 400,000. Like the X9, our new models will come with disruptive innovations to target new segments. All products will feature cutting-edge ARDAS technology, and with various product series, we will cater to diverse customer needs in pricing and design, both home and abroad.

Speaker Change #362: In the third quarter of this year, we will embark on the extensive product launch cycle, introducing a number of new models within the next three years. These models will cover major private segment ranging from RMB 100000.

Speaker Change #362: To RMB 400 founding.

Speaker Change #362: Like the X nine our new models that will come with disruptive innovations to conquer the new segment.

Speaker Change #362: All products will feature cutting edge technology, and with a very as a product the theory will cater to diverse customer needs and pricing and design, both home and abroad.

Xiaopeng He: We are committed to establishing a Volkswagen-like super brand in the EV space, with a global market presence and a wide-ranging product portfolio that caters to broad customer groups, ultimately bringing AI-powered vehicles into the main screen. The first product of the MOLAR series will be launched in June this year.

Speaker Change #363: Listen to establishing a Volkswagen like Super blend in the EV space.

Speaker Change #363: Our global market presence and a wide ranging product portfolio that titos too broad customer groups, All committee, bringing AI powered vehicles into the mainstream.

Speaker Change #363: Yeah.

Speaker Change #364: I'm, a mullah sanctions she needed a sole clock is AG trendy Chelsea I tell her that you didn't do anything else you know my opinion. Thank you.

Xiaopeng He: It will be officially launched in three quarters. Meanwhile, we will also launch Xiaopeng's XNGP car on the A-level platform. The A-level platform with the largest sales volume will be popularized by high-end smart cars. Our new A-Class electric sedan, the first model of our MONA series of products, will debut in June and officially launch and commence mass delivery in the third quarter of this year. This groundbreaking product boasts exquisite styling, advanced intelligence, and a highly competitive cost structure, making it a potential favorite among younger consumer groups within the R&D 200,000 price range. We are confident that it will set the standard in the A-Class BEV market.

Speaker Change #365: Samsung including myself.

Speaker Change #365: I was going to the high ends of the barbell since it natural to us Hawaii later.

Speaker Change #366: And with the Ministry Eco chip cards to the Tulsa, something trivial shutdown season, which as Jim Mora with agents from this just told.

Speaker Change #365: Told you mentioned.

Speaker Change #365: Someone said Lincolnian omohyoid agent therapy into 'twenty two.

Speaker Change #367: Uh huh.

Speaker Change #368: Sure well meet your paper sharpening the X in GP.

Speaker Change #368: With that I'll see you, which I always thought that sort of touch on that too shall.

Speaker Change #368: So we must treat botticelli got chewed up towards your goal that you set out from Jeff.

Speaker Change #368: Our new eight comp electric Saddam.

Speaker Change #368: First model of our moment that product will debut in June and anticipate launch in the combined March delivery in the third quarter of this year.

Speaker Change #368: Groundbreaking products.

Speaker Change #368: It was exciting advanced intelligent and highly competitive cockpit structure, making it a potential favorite among younger consumer goods within the RMB 200000 price range, we have confidence that it will.

Speaker Change #368: In the <unk> market.

Xiaopeng He: Over the next two years, we will introduce several additional products based on the A-Class platform. In addition, we are determined to target the R&D 100,000 to R&D 200,000 price segment, where the highest sales volume is for our high-level products. In the 4th quarter of this year, we will deliver a brand new beat from Xiaopeng's brand. The new car is based on the latest scale-down version of the first

Speaker Change #368: The next two years, we will introduce several additional products and based on the API platform. In addition, we are determined to talk to me I ate the RMB 100000 to RMB 200000 Enterprises segment, we had the highest sales volume is with our high level product.

Speaker Change #368: The genius.

Speaker Change #369: Careful you quote shuffle and she's a pin pad a change in the BG.

Joseph Shaw: Joseph Let me two questions is achieved.

Speaker Change #371: Switching the J T. Shaw go in watch is jumping the sole process. When she does her johnson with Chevron in PG, two initiatives from Poland to physicians that Jasmine boiler.

Xiaopeng He: We expect it to become a hit in the B-class pure electric market in the second half of the year. This B-class new car with MOLLE design contributes to real volume. We are confident that this year's four seasons will achieve a large-scale cross-sectional power-to-weight ratio.

Speaker Change #371: No no material change in that Union acetyl puts the haynesville itself without Tony you with hospitals into.

Xiaopeng He: In the upcoming fourth quarter, we will be launching a new Xpeng-branded B-class battery electric sedan. We have successfully achieved a 25% cost reduction through technological advancements for the first time with this model. We expect it to become a best-selling B-class BEV model in the second half of this year. With the incremental volume from this new B-class model and Mona, we are confident of substantial year-over-year growth in monthly delivery volume in the fourth quarter.

Speaker Change #372: In the upcoming fourth quarter, we will be launching a new Xbox branded because the battery electric Saddam we have successfully achieved a 25% of the cost reduction through a technological advancement for the first time with this model, we expect it to become <unk>.

Speaker Change #372: Setting because MBE model in the second half of this year.

Speaker Change #372: With the incremental volume from the new model and momentum we have.

Speaker Change #372: Confident substantial year over year growth in monthly delivery volume in the fourth quarter.

Speaker Change #372: Yeah.

Xiaopeng He: From the 20th of May, AI Day, we will integrate the large-scale AI skyrocketing system, including the smart parking and smart driving systems. In the future, Xpeng's autonomous driving model can be more efficiently promoted to the world. What does the rise of end-to-end models mean? It means that after autonomous driving, it is possible to have a double-digit increase in every quarter. The software developers have written the rules by hand, and the modified models are used for training and inference.

Speaker Change #373: Yeah, So John no color, Tom Motioned, the AI, Tianjin <unk> fourth quarter financial targets, an adjusted underneath teaching changyou occasional Goldman is researching.

So thats all what she's at a higher price.

Speaker Change #374: Yes, as you know Stephen Gordon Detour Thunder.

Speaker Change #375: So don't just how much of that Delta.

Speaker Change #376: I want to get their children childhood hunger in Xi'an machinery either.

Speaker Change #377: No more novel, one trend pushing you to clean up.

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Speaker Change #377: Digest, what Xi'an, Chengdu, China should okay.

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Speaker Change #378: The accountant.

Speaker Change #379: I'll, just do that Joan that no shareholder.

Sean Douglas: Sure Sean.

Sean Douglas: He'll changing table.

Speaker Change #380: Tom was units.

Speaker Change #380: The U S.

Speaker Change #381: So don't Jonathan and it sort of makes you do feel couldn't you.

Speaker Change #382: Uhm faithful GBA does he go Joe.

Speaker Change #383: Thank you and I'm glad to ensure adequate fashion.

Speaker Change #383: Children, with Washington, Edge, and you shouldn't get them previously.

Xiaopeng He: Next, Xiaopeng's software and AI upgrades will be upgraded from the original platform to the fast-upgraded super fast head. XMGP price will increase rapidly. Our plan is to make the city's price experience reach the current highest level in 2025. In other words, it takes hundreds of kilometers to access water in a city.

Speaker Change #384: No I.

Speaker Change #384: I want you to know Roger SMG quite stronger neither pinnacle's yet.

Speaker Change #384: Without partial synergy that's in its whole pretzels you hope it does.

Speaker Change #385: Excellent GB the chatter that requires wouldn't you said the woman, let's see at Wassa.

Speaker Change #386: I would not say this is Janet <unk> intelligent III Gordon to the Gulf coast on the peer nobody aegis ashore.

Speaker Change #386: Mr.

Speaker Change #387: Sure back only actually articulated citizen.

Speaker Change #387: Yes.

Xiaopeng He: On AI Day, May the 20th, we began the full-scale rollout of our AI-powered in-car operating system, XOS 5.1, or AI Tianji OS. This cutting-edge, large-model, built system seamlessly integrates AI technology into smart cockpits and audits. XOS 5.1 is available to all owners of our major models, solidifying Xpeng's position at the forefront of the non-HD map and end-to-end AI model applications in China's auto industry, which means our technology architecture is one or two generations ahead of our competitors, without using any of these HD maps, and which also means that by third quarter of this year, XMGP not only would be able to roll it out in all the national roads, and we would be able to drive on all the roads around China, and from end-to-end to half-grid in all the cars, which means that going forward, in terms of autonomous driving capabilities, in each quarter, we would be able to see exponential times of improvement. And this would mean that, in terms of the old way of human-made, method of rules and the coding method.

Speaker Change #388: On May the 20, <unk>, we began the full scale rollout of our AI powered <unk> operating system export at a 5.1, where AI can D. O S. This cutting edge and large model built system seamlessly integrate the AI technology into smart.

Speaker Change #388: And on.

Speaker Change #388: X O S X O S. A 5.1 is available to all of our major models.

Speaker Change #388: As long as the position at the forefront of non HD map and end to end AI model applications in China and in China's auto industry, which means our technology architecture is a one or two generations ahead of our competitors.

Speaker Change #388: Without using any of these yet HD maps, and which also means a lot to.

Speaker Change #388: By third quarter.

Speaker Change #388: Ex MVP not only would be able to know about.

Oh the national.

Speaker Change #388: And we would be able to drive over the road, along China and from end to end to Hopkins and all the cars, which means that going forward in terms of autonomy autonomous driving capabilities in each quarter, we would be able to see exponential kind of improvement and this would mean that.

Speaker Change #388: In terms of the old way of human made.

Xiaopeng He: This will be revised into the training of models and based on the algorithms. We aim to have XMGP accessible on all the roads nationwide by the third of the quarter, as I have said. And our end-to-end AI model will enable us to rapidly advance our software and AI technology on a monthly basis. And we predict that by the end of 2025, we will be able to elevate the city road address experience to much that of the current highway NGP, which means only one manual takeover per hundreds of kilometers of driving.

Nathan: Message of our rules and then coding method I think this will be the light into the training model and based on the algorithms. We aim to have X MTP acceptable Oh, Nathan launch by a third of the quarter as I have said in our end to end AI model will enable us to rapidly now that way.

Nathan: Software and AI technology on a monthly basis, and we predicted that by the end of 2025.

We'll be able to elevate to the city about all that.

Nathan: There's been too much of the current highway MTBE, which means only one menu will take over 500 kilometers of thriving.

Xiaopeng He: After our smart driving technology has been upgraded to the end-to-end large model and started to drive, we see that the terrain of data and the value of data will be enlarged. Through a large amount of high-quality data training, in the middle of complex traffic scenarios, XMGP will smoothly realize theory and even surpass most of the performance of the average human century.

Speaker Change #390: So, let's say a woman shouldn't Johnson, the chief of javelin turnaround time watching because it's you don't know.

Nathan: Sure.

Nathan: The telephone towards higher now that goes with it on the shelf and yet some of that $4 a little tongue in younger.

Speaker Change #391: <unk> suite of products.

Speaker Change #392: This is how you toggle from Tianjin <unk>.

Xiaopeng He: So from this year, in the 4th quarter, more users will be able to enjoy the max-level X-series from Xiaopeng. This will greatly speed up the popularity of high-end self-driving vehicles and quickly expand the scale of our XNGB fleet. With a large amount of data, the AI model is now growing rapidly. I believe that large-model technology will bring unprecedented smart experiences to our car owners in the next ten months. And equipped with high-end technology, XMTP is expected to achieve driving capabilities that are equal to or surpass those of human drivers in complex scenarios.

Speaker Change #392: I'm going to continue it.

Speaker Change #393: So just the woman the cases, Joe fresh and who has show women can daughter, Yahoo chocolate share sort of shuffle <unk> must then choose not to extend your beautiful I'm not sure what she thought that Joshua Gordon you said you had to put your finger question quote album and eggs and GP.

Speaker Change #393: You won't high analysis.

Speaker Change #393: Sure.

Speaker Change #394: Hello turns off the air demolition of quantity that well, she hasn't thought about which entities with Jennifer Whalen and social.

Speaker Change #393: Sure.

Speaker Change #393: That a casual wheeled uncertainty of future pay big Gordon G simply Couldnt got any incident for the Johnson. It doesn't you don't use it that way that assembly with topical <unk>.

Yeah.

Speaker Change #395: Our SSP is expected to achieve a driving capabilities that are equal with the.

Speaker Change #395: Equal to what the path with human drivers and complex scenarios.

Xiaopeng He: This will soon be possible as our ADAS technology architecture is powered by advanced end-to-end AI models with extensive training using massive amounts of high-quality data, underscoring our competitive edge in data. With our D-class sedan model commencing delivery in the second half of this year, a broader customer base will soon have access to AI-powered ADAS features. The widespread adoption of high-level ADAS will accelerate and rapidly scale up our XMGP fleet, which in turn will generate a tremendous amount of data to expedite AI model training and iterations. Large AI models will bring our owners an unprecedented AI-powered driving experience, boosting the penetration of smart EVs equipped with high-level ADAS features.

Speaker Change #395: This will soon be possible as our technology architecture is powered by advanced end to end AI model with extensive training using massive amounts of high quality data underscoring our competitive edge in data.

Speaker Change #395: Our Congress so don't model commencing deliveries in the second half of this year brought or a customer base that will soon have access to AI powered P. J the widespread adoption of a high level, although they will accelerate the end to rapidly scale up our X M Gpus sneak which in turn will generate tremendous.

Speaker Change #395: To expedite the AI model training and information.

Speaker Change #395: Large AI models will bring our owners and unprecedented AI powered driving its feeling boosting the penetration of the market.

Speaker Change #395: It puts a good high level features.

Xiaopeng He: In the overseas market, we will speed up the expansion this year, and export will become an important driving force for our sales and profit growth. We plan to expand Xiaopeng's overseas sales network from the original North European countries to more than 20 countries. In the first half of the year, we have established network relationships with the top dealers in Western Europe, Southeast Asia, the Middle East, Australia, etc., and will launch new sales stores in succession.

Speaker Change #396: As a woman she knew her child quiet quarter from a tool called challenge somebody when they showed up get NUCYNTA you got thrown out that should only once Johan Jonathan I won't use it how it shows them. All I was going against you end up paying what would you call that I'll talk about Russia.

Speaker Change #397: <unk> Shield, Tony Yeah Joan.

Speaker Change #398: Oh, yes and thought it.

Speaker Change #399: Total geoscience and engineering, who was your opinion bullshit heterogeneous RASM, India That's C J.

Xiaopeng He: In early April, Xiaopeng's nearly 1,000 G9s exported to Europe totaled more than 500 million yuan. In May, G6's left-hand version began to be released in the European market. We expect to launch the right-hand version of G6 in the third quarter. In addition, the current high-speed NGP is also very smooth in overseas testing.

Speaker Change #400: I'll, let Jimmy Chin touches you'll find all those four quadrants.

Speaker Change #401: We've got some of that with an <unk>, so with all of them.

Speaker Change #401: As you kind of the old don't publish Atlas, which is everything.

Speaker Change #401: Which is essentially the portage once you deal with the yield of them sweat double check also in Geneva, Switzerland face understanding what was essentially kind of how did you have on the shelf is doomed temkin cheese that used to be a bulk water.

Xiaopeng He: I am very happy to see the advantages of our products and technologies, especially smart technology and super fast charging. Xiaopeng will continue to provide better product experience and more environmentally friendly smart charging models for overseas markets and establish a high-end technological brand positioning. Regarding the international market, this year we will accelerate our expansion to drive sales and profit growth. We plan to expand our overseas sales network from the Nordic countries to over 20 countries worldwide. In the first half of 2024, we established partnerships with the leading auto dealership groups in Western Europe, Southeast Asia, the Middle East, and Australia. New sales stores have gradually opened under these partnerships.

Speaker Change #402: <unk> got the seasonality to shove once you the way I should not take on a golden.

Speaker Change #402: Couldn't harvest, how many tier one border intranet fishing number shortly shouldn't go down accordingly.

Speaker Change #402: Yeah.

Speaker Change #403: Regarding the international market. This year, we will expedite our expansion into July the sales and profit growth we plan to expand our overseas sales network from Nordic countries to over 20 countries worldwide in the first half of 2007 before we stop and his departure.

Speaker Change #402: Sure.

Speaker Change #402: Adding auto dealership groups in Western Europe, Southeast Asia, the Middle East and Australia.

Xiaopeng He: In early April, we shipped nearly 1,000 G9s worth over IND 500 million to Europe. In May, we announced the starting price and started accepting pre-orders for the G6 model with a left-hand drive in Europe. We plan to introduce the right-hand drive G6 in the third quarter. Highway MGP tests in the overseas markets are progressing well too. Our product strengths, such as ultra-fast charging and smart technology, are highly valued by overseas dealers and consumers. Xpeng is confidently positioned as a niche brand among high-end tech savvy brands in international markets, offering superior product experiences and eco-friendly smart EV models.

Speaker Change #402: Sales at stores that have gradually opened under these partnerships.

Speaker Change #402: Early April we shipped nearly a thousand between lines worth over 500 mini into Europe in May we announced the setting price and started accepting preamble there what they can do 96 model with a left hand drive it in Europe, we plan to introduce the right hand side.

Speaker Change #402: He said in the third quarter.

Speaker Change #402: And keep in touch.

Speaker Change #402: In overseas markets are progressing well to our product discipline, such as ultrasonic recharging and smart technologies are highly valued by overseas to dealers and consumers.

Speaker Change #404: Exponent is competent to be positioned as a move to a high end. It takes bobbi Brown and international market offering superior product experiences and eco friendly Martin EV models.

Xiaopeng He: Our long-term strategic partnership with Dazhong Automobile Group continues to grow, and the scale of cooperation is also expanding rapidly. On April 17, we are very happy to announce that Xiaopeng Automobile and Dazhong Automobile Group have reached the third strategic cooperation in less than a year. Xiaopeng and Dazhong Automobile will join forces to develop the industry's leading electric vehicle platform for Dazhong Automobile's electric vehicle platform in the Chinese market. This platform will integrate Xiaopeng's latest electric vehicle architecture technology based on the central computer and pre-controller.

Well, maybe thoughts I'm sure that you don't know if I'm glad she has a put on it somehow pinch it was it a glenoid issues with water.

Speaker Change #404: So you almost think causing a favorable championship title.

Speaker Change #404: India, NSE uneven doesn't have decided to shop.

Speaker Change #404: So much of her thoughts on wait and see.

Speaker Change #406: I have two courses of therapy, but they also have a higher to ensure it didn't and she said well I would say the P&I Chelsea is Asia, a bunch of the tongue gentry. She that you told me answer you. Just gave you called the Cheetah da Vinci challenges, which already are New Orleans, she chairman and CEO.

Xiaopeng He: , We are looking forward to working with our partners to find more opportunities to cooperate and create greater strategic cooperative value in the global automotive industry in the face of the transition wave of the self-driving era of AI. Since the first quarter of this year, platform and software infrastructure services have become an important source of income for us. This indicates that Xiaopeng Automotive has developed a new business model that is different from traditional automobile companies.

Speaker Change #405: Two questions.

Josh: She is talking about it didn't know tissue and about 1000 local daiichi that change you'll see the high end and I'm sure. AI. This is Josh that is charged against other golden Dor going that you.

Speaker Change #407: China in the shed when Jess Manuel.

Speaker Change #408: <unk> has the opinion generally to foreshadow easy because it's only love. It showed all the tumors to appeal to the Chevron shapes out even further so your triangles Hershey for younger changing the soluble.

Xiaopeng He: Our industry-leading self-driving infrastructure will not only be able to cooperate with the world's leading brands through the sales front of Xiaopeng Automotive but also gain greater market influence and better financial returns. Our strategic partnership with the Volkswagen Group is rapidly deepening and expanding. Within just one year of establishing our partnership, on April 17th, we announced our third strategic cooperation project with Volkswagen. This project involves the joint development of industry-leading EE architecture for Volkswagen's EV platform designed for the Chinese market.

Speaker Change #409: Oh, well I don't know how many tenants at a hydrogel jumped putting Jim Tomas shelf once you're looking back at the show that video on the height car you can change your training champion pest control quite a good notice anything have you hook up with them.

Xiaopeng He: This platform, which will be applied to China-produced Volkswagen-branded EV models starting from 2026, will integrate Xpeng's latest generation of EE architecture based on centralized computing and domain controller technology. We are confident in our ability to leverage more mutually beneficial cooperation opportunities with Volkswagen and create significant strategic synergies as we lead the global automobile industry's transition into the AI-powered driving era. Since the first quarter of 2024, our platform and software services have become a significant driver of our earnings. This clearly showcases Xpeng's innovative and unique business model, setting us apart from the traditional auto company.

Speaker Change #410: Our strategic partnership with the Volkswagen Group is rapidly deepening and expanding within just one year old they stop making our partnership.

Speaker Change #410: April 17th we announced downward.

Speaker Change #410: He did a cooperation projects with Volkswagen.

Speaker Change #410: This project involves the joint development of industry, leading architecture for Volkswagen's <unk> platform designed for the Chinese market.

Speaker Change #410: Platform, which will be applied to China produced the Volkswagen brand at the motto is that starting from 2025th well integrated ex palms later generation okay.

Speaker Change #410: Architecture based on centralized computing and domain controller technology.

Speaker Change #410: I'm confident in our ability to leverage a more mutually beneficial cooperation opportunities.

Speaker Change #410: Bulk flatten and creates significant strategic synergy as we lead the global automobile industry transition into the AI powered driving Iraq since the first quarter of 2024 hour platform and software services have become a significant driver of our earnings.

Speaker Change #410: This is clearly showcases the export of innovative and unique business model that can.

Speaker Change #410: Apart from the traditional also companies.

Xiaopeng He: Our cutting-edge smart technology not only enhances monetization through Xpeng's branded EV sales but also through partnership with a world-leading auto OEM. This will result in an expanded market presence and increased financial returns for our company. , In such a narrow market, it's not just about the size of the sales. More importantly, it's about multidimensional power.

Speaker Change #410: I think that technology, not only enhance the monetization two prongs that branded sales, but also through a partnership with a world leading auto OEM. This will result in an expanded market presence and increased financial returns for our company.

Speaker Change #410: Yeah.

Speaker Change #410: Which is the challenge.

Speaker Change #410: There's so much right and this is an event.

Speaker Change #411: We at <unk> would agree showdown agree more goodness on Yahoo.

Xiaopeng He: So, although we are still facing the speed challenge of the test in the second quarter, Xiaopeng, including the multidimensional power of the organization, is still firm and persistent. But we have already seen the positive impact of these changes. In the second quarter of 2024, we expect to see a total supply of 29,000 to 32,000 units, a 25% increase from 37.9% to 37.9%, and a 32.9% to 46.6% reduction. The total revenue is expected to be between RMB 75 to 8.3 billion yuan, and a 48% to 63% increase.

Speaker Change #412: So your chin women to artists.

Speaker Change #412: I mean, the choices of Photoshop that finish up on perpetual does that at all jumped into the high that especially the decision doesn't want me to condos, each others will get out of <unk>.

Speaker Change #413: As soon as you articulate troubleshooter, Jordan I want you to someone.

Speaker Change #413: Tony yourselves in terms of the actual shipments up she didn't you.

Speaker Change #414: Well I mean, it hasn't been satisfied and Joe talked about.

Speaker Change #414: So do you agree with it maybe cheese puffs SRU. It taught me is Hudson imbalances debacle that feels a sense.

Xiaopeng He: I hope that in the second half of this year, we will see more changes, especially in the fourth quarter of this year. I would like to reiterate, in this highly competitive market, we should not only have our eyes on the scale of sales but rather focus on becoming a well-rounded player in the market. Despite the headwinds in the auto market in the second quarter, we have already observed a positive impact from our ongoing organizational and transformative changes.

Speaker Change #414: She's a genius sharp on this idea of what kind of couldn't talk we haven't got a single dose it could be a chunk genus digital Shannon has shoveling gel, which can go sort of question.

Speaker Change #414: I wish I had a chance to what it's shown up.

Speaker Change #415: <unk> changed.

Speaker Change #415: Above all that sort of chatter.

Speaker Change #416: What are the changes for the two P J when a movie.

Speaker Change #416: Once again, good job what didn't change.

Speaker Change #417: I would like to reiterate in this ultra competitive market, we should not only have our eyes on the scale of the sales rather as we focus on becoming a well rounded a player in the market.

Speaker Change #417: Find it go ahead.

Speaker Change #417: In the auto market in the second quarter, we have already observed a positive impact from our ongoing organizational interest formative changes that said, we anticipate that the total delivery volume will range between 29032 found in that unit in the second quarter of 2024.

Xiaopeng He: That said, we anticipate that the total delivery volume will range between 29,000 and 32,000 units in the second quarter of 2024, reflecting a year-over-year increase of 25% to 37.9% and a quarter-over-quarter increase of 32.9% to 46.6%. Furthermore, we predict that our second-quarter total revenue will fall within the range of RMB 7.5 billion to RMB 8.3 billion, representing a year-over-year increase of 48 We anticipate witnessing more transformation-driven results in the latter half of this year.

Speaker Change #417: Reflecting a year over year increase of 25% to 37 point to 9% and a quarter over quarter increase of 32, 9% to 46.6%. Furthermore, we project that our second quarter total revenue will fall within the range of RMB.

Speaker Change #417: Seven point, despite sedan to RMB, eight 3 billion, representing a year over year increase of 48.1% to 63, 9%, we anticipate witnessing more transformation driven result.

Speaker Change #417: The latter half of this year.

Xiaopeng He: Starting in October, we will be poised to enter a fast track growth phase, confident of achieving significant breakthroughs in sales volume, margins, cash flow, and AI-powered address systems. And this is for the long run into the future as well. Thank you everyone. Now, let's welcome our Finance VP, Jiam, to introduce our first financial report for 2024. Thank you everyone again.

Speaker Change #417: In October we will be poised to enter a growth phase.

Speaker Change #417: Confident in achieving significant breakthroughs and sales.

Speaker Change #417: Margins cash flow and AI powered.

Speaker Change #417: And this is before the long long into the future as well.

Speaker Change #419: Let me say that Josh I mean, it's how would be Jeff with IHS elements I.

Speaker Change #419: <unk>.

Speaker Change #419: Yeah.

Jiaming Wu: With that, I will now turn the call over to our VP of Finance, Mr. James Wu, to discuss our financial performance for the first quarter of 2024. Thank you, Xiaopeng. Now, let me provide a brief overview of our financial results for the first quarter of 2020. I'll reference R&B only in my discussion today, unless otherwise stated.

Speaker Change #420: Thank you everyone again.

I will now turn the call over to our VP of finance, Mr. James <unk> to discuss our financial performance for the first quarter of 2024.

Thank you Michelle for them.

Speaker Change #421: Now let me provide a brief overview of our financial results for the first quarter of 2024.

Speaker Change #422: I'll reference RMB only in my discussion today, unless otherwise stated.

Jiaming Wu: Our total revenues were $6.55 billion for the first quarter of 2020, an increase of 62.3% year over year and a decrease of 49.8% quarter over quarter. Revenues from vehicle sales were $5.54 billion for the first quarter of 2024, representing an increase of 57.8% year-over-year and a decrease of 54.7% quarter over quarter. The year-over-year increase was mainly attributable to higher deliveries, particularly the Model X9 in the first quarter of 2024. The quarter-over-quarter decrease was mainly attributable to lower deliveries of the G6 and the 2024 G9, compounded by seasonal impact, which is partially offset by the contribution of exports.

Speaker Change #423: Our total revenues were $6 five 5 billion for the first quarter of 2024, an increase of 62, 3% year over year, and a decrease of 49, 8% quarter over quarter.

Speaker Change #423: Revenues from vehicle sales were 5.54 billion for the first quarter of 2024.

Speaker Change #423: Renting an increase of 57, 8% year over year, and a decrease of 54, 7% quarter over quarter.

Speaker Change #423: The year over year increase was mainly attributable to higher deliveries, particularly the Moto X nine in the first quarter of 2024.

Speaker Change #423: Quarter over quarter decrease was mainly attributable to lower deliveries of the <unk> six and the 2024 G. Nine compounded by seasonal impact, which is partially offset by contribution of the X Knight.

Jiaming Wu: Revenues from services and others were $1 billion for the first quarter of 2020, representing an increase of 93.1% year over year and an increase of 22.1% quarter over quarter. The year-over-year and quarter-over-quarter increases were primarily attributable to the increases in revenue from technical research and development services related to the platform and software strategic technical collaboration with the Volkswagen Group. Gross margin was 12.9% for the first quarter of 2020, compared with 1.7% for the same period of 2023 and 6.2% for the fourth quarter of 2023.

Speaker Change #423: Revenues from services and others were 1 billion for the first quarter of 2024.

Speaker Change #423: Representing an increase of 93, 1% year over year, and an increase of 22, 1% quarter over quarter.

Speaker Change #423: Year over year and quarter over quarter increases were primarily attributable to the increases in revenue from technical research and development service related to the platform and software strategic technical collaboration with the folks at Hudson Group.

Speaker Change #423: Gross margin was 12, 9% for the first quarter of 2024 compared with one 7% for the same period of 2023 and six 2% for the fourth quarter of 2023.

Jiaming Wu: Vehicle margin was 5.5% for the first quarter of 2024, compared with negative 2.5% for the same period of 2023 and 4.1% for the fourth quarter of 2020. The year-over-year and quarter-over-quarter increases were primarily attributable to the cost reduction and the improvement in the product mix of models, partially offset by the inventory provision and losses on purchase commitments related to the Model P5, with a negative impact of 3.2 percentage points on vehicle margin for this quarter, as management lowered the P5 forecasted sales due to the expected stronger market demand for the upcoming new vehicle model.

Speaker Change #423: Vehicle margin was five 5% for the first quarter of 2024 compared was negative two 5% for the same period of 2023 and four 1% for the fourth quarter of 2023.

Speaker Change #423: The year over year and quarter over quarter increases were primarily attributable to the cost reduction and the improvement in product mix of models, partially offset by the inventory provision and losses on purchase commitments related to the model P. Five with a negative impact of three two percentage points on <unk>.

Speaker Change #423: Margin for this quarter as.

Speaker Change #423: As management lower the P. Five forecasted sales due to the expected stronger market the mounts for upcoming new vehicle models.

Jiaming Wu: R&D expenses were $1.35 billion for the first quarter of 2024, representing an increase of 4.2% year-over-year and an increase of 3.3% quarter-over-quarter. The year-over-year and quarter-over-quarter increases were mainly in line with the timing and progress of new vehicle programs. SG&A expenses were $1.39 billion for the first quarter of 2024, which is flat on a year-over-year basis and then decreased by 28.3% quarter-over-quarter. The quarter-over-quarter decrease was mainly due to lower commissions to the franchise stores and lower marketing, promotional, and advertising expenses.

Speaker Change #423: R&D expenses were 135 billion for the first quarter of 2024, representing an increase of four 2% all year over year, and an increase of three 3% quarter over quarter.

Speaker Change #423: The year over year and quarter over quarter increases were mainly in line with the timing and progress of new vehicle programs.

Speaker Change #423: SG&A expenses were $1 39 billion for the first quarter of 2024, which is flat on a year over year basis, and then decrease.

Speaker Change #423: Eight 3% quarter over quarter.

Speaker Change #423: The quarter over quarter decrease was mainly due to lower commissions to the franchise stores and lower marketing promotional and advertising expenses.

Jiaming Wu: Fair value gain on derivative liability relating to the contingent consideration was $0.18 billion for the first quarter of 2024 compared with $0.03 billion for the fourth quarter of 2020. This non-cash gain resulted from the fair value change of the contingent consideration related to the acquisition of Didi's smart auto brand. As a result of the foregoing, its loss from operations was $1.65 billion for the first quarter of 2024 compared with $2.59 billion for the same period of 2023 and $2.05 billion for the fourth quarter of 2023.

Speaker Change #423: Fair value gain on derivative liability relating to the contingent consideration was 0.1 8 billion for the first quarter of 2024, compared with 0.0 3 billion for the fourth quarter of 2023.

Speaker Change #423: This noncash gain it was resulted from the fair value change of the contingent consideration related to the acquisition of Tvs Smart auto business.

Speaker Change #423: As a result of the foregoing loss from operations was $1 six 5 billion for the first quarter of 2024, compared with 2.59 billion for the same period of 2023, and 2.05 billion for the fourth quarter of 2023.

Jiaming Wu: The net loss was $1.37 billion for the first quarter of 2024 compared with $2.34 billion for the same period of 2023 and $1.35 billion for the fourth quarter of 2024. As of March 31st, 2024, our company had cash and cash equivalents, restricted cash, short-term investments, and time deposits in a total of $41.4 billion.

Speaker Change #423: Net loss was $1 37 billion for the first quarter of 2024, compared with 234 billion for the same period of 2023, and 135 billion for the fourth quarter of 2023.

Speaker Change #423: As of March 31, 2024, our company.

Speaker Change #423: The company had cash and cash equivalents restricted cash and short term investments and time deposits in total of $41 4 billion.

Jiaming Wu: To be mindful of the length of our earnings call, I would encourage listeners to refer to our earnings press release for more details on our first quarter 2024 financial results. This concludes our prepared remarks. We will now open the line to questions. Operator, please go ahead. Ladies and gentlemen, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two.

Speaker Change #423: To be mindful of the length of our earnings call I would encourage listeners to refer to our earnings press release for more details on our first quarter 2024 financial results.

Speaker Change #423: This concludes our prepared remarks, we'll now open the lines for questions.

Speaker Change #424: Operator, Please go ahead.

Speaker Change #425: Ladies and gentlemen, if you wish to ask a question. Please press star one on your telephone and wait for your name to be announced if you wish to cancel your request. Please press star two.

Operator: For the benefit of participants on today's call, if you wish to ask a question to management in Chinese, please immediately repeat your question in English. For the sake of clarity and order, please ask one question at a time. Management will respond, and then feel free to follow up with your next question.

Speaker Change #426: For the benefit of the participants on today's call. If you wish to ask a question to management in Chinese. Please immediately repeat your question in English for the sake of clarity and order. Please ask one question at a time management will respond and then feel free to follow up with your next question.

Tim Hsiao: Your first question comes from Tim Hsiao with Morgan Stanley. Thank you, Mr. Guan, for answering my question. I have two questions.

Speaker Change #427: Your first question comes from Tim Hsiao with Morgan Stanley.

Speaker Change #427: Yeah.

Speaker Change #428: She didn't quite essentially that you will be able to answer to you is <unk>.

Tim Hsiao: First of all, I would like to congratulate you on improving your understanding of public-private partnership projects. I would like to ask you to increase the scale of the income from the platform software technology for the first quarter of the PPP. In addition, will the contribution of the next several quarters be expected to rise in the early stage? In addition, is there a chance for the income from the contract for the electronic device architecture announced last month to be recognized this year? This is my first question.

So Shannon.

Speaker Change #429: Commodity prices actually go down.

Speaker Change #430: So those were the shelf was on the gene pool, they use which I'll call you.

Speaker Change #430: Essentially asking him go tend to easy to without sort of a tool to the entire engine tissue, there's a claim or trickle down.

Speaker Change #430: I think like they too shallow of NTT Docomo <unk> subscribers.

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Speaker Change #430: Anyway, it sounds like it <unk> take a heater Shaw Sidoti <unk> disease treated with <unk>.

Tim Hsiao: So my first question is about the revenue contribution from the collaboration with Volkswagen. Could the management roughly quantify the contribution of the service revenue from Volkswagen in the first quarters? And we know that it's recurring, so will it continue climbing quarter over quarter in the following months? Is there any chance that the revenue from the new agreements related to the e-architectures could also come through within the year? So that's my first question. Hi Tim, this is Charles.

Speaker Change #431: So my first question is bound to revenue contribution from the collaboration with Volkswagen.

Speaker Change #431: It's been roughly quantify the contribution of the service revenue from Volkswagen and first quarters.

Speaker Change #432: And we know that Tom is to recurring so will it continue climbing quarter over quarter in the following month.

Speaker Change #433: Is there any chance that the ground new front.

Speaker Change #433: New agreements related to the E architectures.

Speaker Change #434: Because there was a con to within the year. So that's my first question. Thank you.

Charles Zhang: So the platform software collaboration revenue from Volkswagen has been recorded in the service and other revenue in Q1. As you know, that it is recurring. So I think that going forward, every quarter, we will be able to book such platform software technical services revenue. So in Q1, we booked a multi-hundred million RMB platform software services revenue, and I think we believe that in the subsequent quarters, such revenue will be more than what we booked in Q1.

Unknown Executive: Hi, This is Charles.

So the platform software collaboration revenue from Volkswagen has been recorded in the <unk>.

Speaker Change #435: And the other revenue in Q1.

Speaker Change #436: As you know that there is a recurring in nature. So I think that going forward every quarter and we will we will be able to book such platform and software technical services revenue.

Speaker Change #436: So in Q1, we booked.

Speaker Change #436: We booked a multi hundred million RMB.

Speaker Change #436: Platform and software services revenue.

Speaker Change #436: I think that we believe that in the subsequent quarters, especially.

Such revenue won't be more than what we booked in Q1.

Charles Zhang: And so obviously, I think that given the nature of the platform and the software revenue, it is a very high-margin business for us. And we believe that with our vehicle sales business and also the platform and software technical services revenue, our company-level GP margin can be sustainable at a low to mid-teens percentage GP margin.

Speaker Change #436: So obviously I think that just given the nature of the platform and the software revenue. It is very high margin business for us and we believe that the.

Speaker Change #436: With our vehicle on vehicle sales.

Speaker Change #436: And also the and also as a platform and software and technical services revenue.

Speaker Change #436: Our company level GP margin can be sustainable at a low to mid teens GP margin percentage GP margin.

Charles Zhang: And therefore, I think that we have created a very unique business model in the auto industry. In addition to that, we will continue to deliver our cost reductions through technology and also the supply chain and further improve our vehicle GP margin. To address your question regarding revenue from the EE architecture, we expect that revenue from the EE architecture will start to be recognized in the second half. Thank you very much, Charles.

jumping: And therefore, I think that that is jumping pointed out that we created a very unique business model in the auto industry.

jumping: In addition to that and we will continue to to deliver our cost reductions through technology and also the supply chain and to further improve our vehicle GP margin.

jumping: To address your question regarding the revenue from the E architecture and.

jumping: We expect that the revenue from the E architecture will start to be recognized from the second half of this year. Thank you.

Speaker Change #438: Got it thank you very much Charles.

Speaker Change #439: No it <unk> <unk> to <unk>.

Speaker Change #440: Do you have to hit a $10 you see this whole business you mean can be able to eat all just so we talk with you that I know Dwayne Tomo machine Zhang our.

Speaker Change #442: Settlements, which are a challenge to the J E T cell <unk> 72, additional nature will they tell them okay.

Speaker Change #441: She can help this city to teach out.

Speaker Change #441: If you could put in June which will be paid out to Asia.

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Speaker Change #441: Sure.

Speaker Change #443: I think the tissue lesion, which I'm hot change into a social data center without saying that you shouldn't be an issue.

Charles Zhang: So my second question is about Tom's writing because we noticed that Xpeng is to leverage NTN's large model to upgrade XGEN-GP by the third quarter of this year to cover basically all the overalls in China, and it would achieve level four vehicle autonomy next year. So to achieve that target, should we expect Xpeng to metaphorically increase R&D spending during the period? And when do you think such technological leadership can translate into upside to new car sales or potential monetization opportunities? That's my second question. Thank you.

Speaker Change #441: So.

Speaker Change #444: My second question is Dow to Tom's Friday.

Because we noticed that expands to leverage hinchey enlarge model to create <unk> by third quarter of this year. Two covers basically over I was in China and with achieved a level four equally taught me next year.

So to achieve that target should we expect <unk> to meaningfully increase R&D spending during the period.

Speaker Change #445: And when do you think such technological leadership can translate into upside to new car sales or potential monetization opportunity. That's my second question. Thank you.

Xiaopeng He: First of all, we want to correct a statement that next year we hope to achieve the ability of L4 instead of L3. Because L4 itself still needs hardware and needs the repetition of the policy rules.

Speaker Change #446: So essentially so faster than many of them children.

Speaker Change #447: Without I hopeful for.

In general she opens up hopefully.

Speaker Change #448: Fishing season.

Speaker Change #448: So it's something that will change.

Okay.

Speaker Change #449: Sure absolutely.

Speaker Change #450: That's helpful Josef cannot always.

Xiaopeng He: ... ,, Therefore, the overall energy consumption did not increase significantly., I believe that it is very difficult to predict the acceleration change after the launch of the large model. I used to use numbers to write programs.

Speaker Change #450: So it has been challenging.

Speaker Change #451: And I thought she equated I know you mentioned that.

Speaker Change #451: Torture.

Speaker Change #451: So you won't see abortion.

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Speaker Change #452: Uh huh.

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Josh: And Josh I shouldn't say you couldn't do it.

Speaker Change #453: Does that change your partnership.

Speaker Change #454: What's you're asking.

Speaker Change #455: This is on top of it or quit and non coupon done Don Washington.

Speaker Change #456: So until you cancel the Belmont either she is Indonesia as what they feel is that collyn.

Xiaopeng He: It's easier to make a clear judgment. For example, I have more numbers, and I have more time, so I can do it. But the model is based on the ability of the data, the scale of the data, and the ability of training. Guo Qilai, I think that in 2025. I originally thought that in the latter half of 2025, autonomous driving capabilities will form a very strong trend. Now, after the big model, this time may be ahead. [inaudible] Thank you very much for your question.

Speaker Change #457: Harlan Nice youth initiatives.

Speaker Change #457: He changed upon that piece or oil can thought about not with a ton of shared yet, but I'm sure it wasn't cleanup.

Speaker Change #457: Moshe <unk> particular, shortly doesn't look unusually the claim organization yet.

Speaker Change #458: Are you pushing it.

Speaker Change #459: What's going on with Oh, well, yes, and no it's unknown.

Speaker Change #460: So don't just with any questions and you've got <unk> in the country and Chennai.

Speaker Change #461: Publishing so have you considered a sit down with them yet.

Speaker Change #460: Okay.

Speaker Change #462: And to us.

Xiaopeng He: And before I answer your question, there's one correction to make, which is that we hope to achieve the ability of L4 next year. However, we know that being able to actually implement that would also need the hardware as well as the rules and regulations to catch up. So that's point one.

Speaker Change #463: Thank you very much for your question Ian.

Speaker Change #464: I answer your question, there's a one correction and that you can have which is that we hope to achieve the ability of the S.

Speaker Change #465: Oh for next year.

Speaker Change #465: We know that to being able to actually implement that they would also need to have the hardware as well.

Xiaopeng He: And point two, with respect to the large models, and we know that AI large models are going to have a huge impact on all the companies involved. And therefore, as we say in the past, in terms of the rules and regulations people have, those need to change, and the large models will actually generate these new rules. And thirdly, we don't actually need to increase our manpower at the moment, and we have about the same number of people working. We should continue to work on globalization.

Speaker Change #465: Congratulations to catch up so that's 0.1 and 0.2 with respect to the large models and they know that so AI like model, it's going to have a huge impact on all of the companies are involved and that therefore as we say in the past in terms of the rules and regulations people have and they don't need to chase.

Speaker Change #465: And the large models it will actually be generated even more rules and certainly we don't actually need to increase our manpower at the moment and we have about the same amount of people working continue to work on globalization.

Xiaopeng He: In terms of how fast it's going to take or what the speed is going to be like, I would say that it's hard to say, it's hard to quantify. And my original thinking was that it was going to be the latter half of 2025. But now, with the fast development of technology and AI, I think that it will be earlier than 2025, or possibly next year.

Speaker Change #465: In terms of how fast it's going to take or what the speed, it's going to be like I would say that it is hard to say, it's hard to quantify and the possible and we relied on the human powered and wouldn't be able to say how many people we would need how much time, we would need to partner with a large lotto model was and is about you know the.

Speaker Change #465: Still the algorithm and the speed et cetera, and my original thinking was that it's going to be the latter half of 2025, and now Wednesday faster development of that technology, and AI and I think that it would be older than 2025 plus.

Speaker Change #465: For the next year, so, we'll wait and see.

Speaker Change #465: Okay.

Ming Li: So we'll wait and see. Your next question comes from Ming Li with Bank of America. Hello, Mr. Xiaopeng and all the audience members.

Speaker Change #466: Your next question comes from Ming Li with Bank of America.

Speaker Change #465: Yeah.

Speaker Change #467: Southern zones.

Ming Li: I have two questions for you. The first question is about the details of car models in the future. In the third season of the Mona Project, what will be the pace of the 2B and 2C cars? And then, can you tell us, because you mentioned that there will be at least one new car every season next year? Can you please clarify for us, for example, how many cars will be the Xiaopeng model and how many cars will be the Mona model? Let me translate my question first.

Now what's it been fatigue.

Speaker Change #468: Ego and Tina.

Speaker Change #469: You took out just so that you get so cheap that you shouldn't you.

Speaker Change #469: You should not.

Speaker Change #469: Uh-huh Disanti does it a one off project kind of just the two pizza.

Speaker Change #469: <unk> tied it to the Oh no no.

Speaker Change #469:

Speaker Change #470: No Jayson.

Speaker Change #471: And I'm Gonna Johnson charges.

Speaker Change #471: And since you know T.

Speaker Change #471: M a G W.

Speaker Change #472: Sequentially, So nalco energy according to embargo on partnerships with Peugeot two silicon choices.

Speaker Change #472: Hum.

Speaker Change #472: <unk>.

Speaker Change #472: Not within five years or so.

Ming Li: So my first question is related to more details of your new product, the pipeline. So in the second half, you will have two products. The first product is related to the Mona Project. So could you give more details regarding the launch timing for the 2B version and also the 2C version?

Speaker Change #473: First question is related to more details for you on our new product pipeline. So in the <unk>.

Speaker Change #473: Second half you will have two product the first product.

Speaker Change #474: Related to Monaca project, So could you give more details regarding the launch timing for the.

Speaker Change #475: To be version and also the two <unk> version and for the next year the product pipeline and could you also give us some guidance.

Ming Li: And for the next year, the product pipeline, could you also give some guidance regarding the numbers for your Mona brand product and also your Xpeng brand product? First of all, I would like to explain that all of our models, our main customers are all 2C; we will not consider... In the field of 2B, there is a large range of features, including Mola, including all of them. So when MOLA was first designed, it was designed with the highest standards in mind. So in the case of high-priced products, we don't think it's beneficial in the 2B market. There is no more time.

Speaker Change #475: Guidance regarding the numbers so for your mono branded product and also.

Speaker Change #475: Sure.

Speaker Change #476: Samsung is comes on a branded product.

Speaker Change #475: Yes.

Speaker Change #475: Yes.

Speaker Change #477: So if someone has told me and I'm sorry go on.

Speaker Change #475: Sure.

Speaker Change #478: Fishing women.

Speaker Change #478: So we need a coach him was a placebo coffee.

Speaker Change #478: Okay.

Speaker Change #478: Okay.

Speaker Change #479: Oh, sorry.

Chris Shaw: What I'll tell you, Chris So Tito so just see trade volumes.

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Chris Shaw: Koreans if someone tell me up along with other initiatives.

Chris Shaw: Sure.

Xiaopeng He: After the third quarter of this year, we will have different cars in different quarters. Some quarters will have more cars, and some quarters will only have some modified cars. At the same time, we will continue to work on this issue from 2024 to 2026., [inaudible] But at the latest this year, I have just come to Taibao. Xie Maofei.

Chris Shaw: Hmm.

Chris Shaw: <unk> genius and it all just hold them inside Potomac, you to put up with home those are true.

Chris Shaw: Okay.

Speaker Change #481: So I'm sure it does.

Speaker Change #481: I'm not sure what to say so.

Speaker Change #481: So then essentially annuity.

Speaker Change #482: Uh huh.

Speaker Change #485: I'm glad you took on <unk>.

Speaker Change #482: Okay.

Speaker Change #483: That's really different from you to digest that.

Speaker Change #483: And so anyway, we can kind of talk about it.

Speaker Change #484: Thank you.

Speaker Change #486: Jim Hawaii, Kentucky.

Speaker Change #487: Thank you for your question and.

Speaker Change #488: First of all in terms of all our car models and the mainstream offer that we bring to the market. It would still be for that to see market at the end it could be market, there's not maybe our focus including Mona and for a moment, there's a brand and as we say because not so well.

Xiaopeng He: And for MONA, this branding, and as we say, because that's what we are looking at is building this to be the most beautiful and aesthetic cars out there in the market. Therefore, we do not really see this having too much of a big penetration rate into the 2B market. In the 2C, starting from Q3 this year, and following onwards, and in different quarters, we will have different car models being launched in the market.

Speaker Change #488: We are looking at it is converting those are two of the most beautiful in a second.

Speaker Change #488: I hope that in the market. So therefore, we do not really see that having too much I'd say the penetration penetration rate into the <unk> market and then secondly, starting from Q3 this year following onward.

Xiaopeng He: And in some quarters, perhaps there will be a few more different models. And in certain quarters, perhaps this will be simply an updated version of an existing model or a mixed version, so to speak. And starting from 2024 to 2026, we will continue to roll out different car models into the market. And in terms of the specifics, I don't think that I'm in a position to release further details to the market at the moment. And our clients, as you have already heard in my previous presentation. So MOLA will be Xiaopeng's series; we will come back next month to share our thoughts on MOLA with the board of directors.

Speaker Change #488: Each different quarters that we will have a different car models being launched in the market and there's some quarters.

Speaker Change #488: So that will be a few more different models and in certain quarters that perhaps there will be some.

Speaker Change #488: <unk>, an updated version of an existing model, where a mixed version model so to speak and.

Speaker Change #488: Building from 2024 through 2020 six we will continue to roll out the different car models and into the market and in terms of the.

Speaker Change #489: I don't think so.

Speaker Change #489: In a position to release further details to the market at the moment.

Speaker Change #489: Our clients that you have already covered in my previous presentation.

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Speaker Change #490: No more surgical Golar places they shop later, she hit one shovel hit, but then tiger.

Speaker Change #491: So you go to the site.

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Xiaopeng He: Today, I will repeat what I just said, MOLA has very good ideas, and we hope to make a good profit. And we hope to have different values in Moral, including the highest level of smart driving. The price range is from the current price of more than RMB 200,000 to less than RMB 200,000.

Speaker Change #491:

Speaker Change #491: So for Tomorrow, you will see the audience I, just wasn't sure which Florida.

Speaker Change #491: I told ensuring that more of an annual put on things, but with regard to the Jess.

Josh: This is Josh.

Josh: Either 2000 channel harsher Wang song from General Dot Dot Dot, which is excellent.

Ming Li: This is what we are doing in Mola. So the second part of my answer to your question and for the MONA series, and actually, going forward, and next month, we will have more to share with the market in terms of our thinking about this series. And as I said before, for the MONA series, we are looking at building a car that is the most beautiful and the most aesthetic on the outside. And, in addition, we also hope that this is a car that will bring the company a good amount of profits, and it will also cover various grades of intelligent or autonomous driving.

Josh: The modality.

Josh: Yeah.

Josh: Yeah.

Josh: So the second part of my answer to your question and for the Mona Lisa and well.

Josh: Actually going forward as it warms up a next month, we will have more to share with the market in terms of how we're thinking about it.

Josh: As I said before for monotherapy, because we are looking at building a car that is the most beautiful and the most authentic.

Josh: On the external oriented. In addition, we also hope that this is a car that will bring the company did a mountains of profits.

Josh: Also cover various grades of intelligent autonomous driving that we have.

Ming Li: And we hope that in the past, for autonomous driving, it was mainly for cars in the price range of above $200,000. And with the MONA series, we hope to bring autonomous driving to cars with a price range of within $200,000. In terms of the overseas market, last week, Xiaopeng's brand officially entered Hong Kong. I know that it has recently entered many different countries.

Josh: That said in the past for autonomous driving it was mainly for the pause in the <unk> range of above 200000, with Mona families and we hope to bring the autonomous driving into the car with a price range of 200 and saw them.

Josh: Yeah.

Speaker Change #492: Uh huh.

Josh: Yeah.

Oh highlights just hung with it sounds though GC.

Speaker Change #493: So I'm going to be switching to Shanghai.

Josh: It's tricky.

Ming Li: Can you please share more with Mr. Xiaopeng and Mr. Brian about our overseas layout for this year? Including the sales of tens of thousands of units, and the speed and progress of entering the overseas market, is it in line with our original expectations? Or is there a chance to go further?

Josh: And I'll put on the board John Oh Cool page.

Speaker Change #494: Someone's, Ohio, Brian Sabean, Okay.

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Speaker Change #496: Sue do went into CECO mentioned you cheated.

Speaker Change #495: Sure.

Ming Li: In terms of overseas markets, as Mr. Xiaopeng just mentioned, the NGP test was very successful. In this regard, will the investment in R&D be a relatively high percentage? Or do we actually bring some of the technology from China? So, last week, the Xpeng brand officially entered the Hong Kong market, and also, in the next few months, Xpeng will enter more and more countries, especially South Asia.

That's how it changes how do you want to highlight.

So it sounds like it's going to really supposed to go to go through those.

Speaker Change #495: So is this a sudden or not.

Speaker Change #497: Uh huh.

Speaker Change #497: He was the idea of total.

Speaker Change #498: Got it.

Speaker Change #498: Also on strong growth in Asia.

Speaker Change #498: Uh Huh she seems to go how does it or who didn't have you don't see those if you don't know what he does.

Speaker Change #498: So as you know what you're thinking in terms of the deal. So last week, it's kind of a brand officially until the market also.

Speaker Change #498: In the next few months.

Hongdi Gu: So right now, based on... [inaudible] You are entering a new, Are you ahead of your original target? a few times, and one of you, an incredible R&D experience because you also provide the XMGP functions overseas. Hey Ming, it's Brian.

Speaker Change #498: More and more countries, especially if you are so right now based on where you are.

Speaker Change #498: On the emerging market and also.

Speaker Change #498: The program itself.

Mark: Mark you too.

Mark: Right not too are you ahead of your original target.

Mark: Okay.

Mark: Yes.

Mark: Okay.

Mark: Total volumes will be a few times.

Okay.

Speaker Change #500: Well you are incredible R&D expenses, because he will also provide excellent GP powershares in oversea market.

Hongdi Gu: Let me address your question. First of all, regarding our overseas plan, I would say this year we are, as you can see, accelerating our pace of international development. We are targeting to roll out to more than 20 countries with our industry-leading technology advanced EV. The exact number of markets obviously also correlates to the type of models that we can make available to these markets. For example, right now in Europe, we're already selling the G9 and P7. And we're launching the left-hand drive version in G6 this month.

Brian Sabean: Amy its Brian let me address your question.

Speaker Change #502: First of all regarding our overseas plan I would say this year. We are as you can see accelerating our pace of international development.

<unk> targeting to roll out to more than 20 countries.

Speaker Change #502: Our industry.

Speaker Change #502: Industry, leading.

Speaker Change #502: Technology is best CBS.

Speaker Change #502: The exact number of markets. Obviously also correlates to the type of models that we can make available to these are markets. For example, right now in Europe, we are already selling the <unk> nine P. Seven we're launching the lesson driving cheese sticks. This month will hopefully deliver.

Hongdi Gu: We'll hopefully deliver them very soon. In other markets, for example, in Southeast Asia and, as you pointed out, Hong Kong, we're launching the right-hand drive in G6, I would say probably in a couple of months. And also, we'll probably be followed with the right-hand drive in X9 to be delivered probably by the end of this year or early next year. So, as you can see, the whole international expansion is on

Speaker Change #502: Very soon in other markets for example in Southeast Asia, and you pointed out Hong Kong, we're launching be Ryan driving <unk> six.

Speaker Change #502: I would say probably a couple of months.

Speaker Change #502: So, we'll probably be followed with the right hand, driving eckstein to be delivered partly by the end of this year already next year. So as you can see that the.

Hongdi Gu: We think the original guidance we gave in terms of numbers, in terms of tens of thousands, as well as this quarter, when we would like to achieve more than 10% of our overall delivery number, is still valid. So those are the right numbers we want to give on the international expansion. And regarding the technical XNGP-related smart driving technology, we are actively now testing a number of overseas markets, currently also working with regulatory bodies to make sure that this complies with and also develops regulations in these markets. The development is actually not going to make a material increase in our overall R&D.

Speaker Change #502: The whole international expansion is on track, we think the original guidance, we gave in terms of number.

Speaker Change #502: In terms of.

Speaker Change #502: Tens of thousands as well as this quarter, we would like to achieve more than 10% of our overall delivery number is still valid. So those are the right guidance system Monotype on international expansion and regarding the technical extend GP related.

Speaker Change #502: Smart driving technology, we are actively now testing a number of overseas market. Currently also working with regulatory bodies to make sure that this <unk>.

Speaker Change #502: Compliance with and also developing regulations in these markets.

Speaker Change #502: Good.

Speaker Change #502: The development is actually not going to make a material increase in our overall R&D first of all I think we are still very targeted in the number of markets that we want to bring the.

Hongdi Gu: First of all, I think we are still very targeted in the number of markets to which we want to bring the subsets of our XNGP capabilities. But again, also just to echo what Xiaopeng just mentioned, our capability for development has also been increasing now with the help of AI and large model capabilities, and also removing the need for The map, as well as using the large language model to accelerate development in different scenarios, will also benefit our development overseas.

Speaker Change #503: <unk> of our extensive capabilities, but again also echo what shall conscious mentioned our capability of development also has been increasing now with the help of AI and large model capabilities and also removing the need for.

Speaker Change #503: The the map as well as using the large language model to accelerate the development and different scenarios also will benefit our development overseas. So in all.

Hongdi Gu: So, overall, I think we will look forward to seeing some of these capabilities being made available later this year, as well as probably early next year in some of the overseas markets. And also, at the same time, we don't see material increases in R&D expenses because of that. [inaudible] Your next question comes from Bin Wang with Deutsche Bank. First, can you describe the future of 4G? You just mentioned that sales of 4G will grow much faster than last year. Last year, we had 20,000 units of 4G in a single month.

Speaker Change #503: I think we will.

Speaker Change #503: I look forward to seeing some of these capability being made available by later this year as well as probably early next year in some of the oversea market and also at the same time, we don't see material increases.

Speaker Change #503: R&D expense because of that effort.

Speaker Change #504: Thank you Brian.

Speaker Change #504: Yeah.

Speaker Change #505: Your next question comes from bin Wang with Deutsche Bank.

Speaker Change #504: Yeah.

Speaker Change #506: She's a covenant.

Bin Wang: Can we expect to reach 30,000 units of 4G this year? If it's 30,000 units, how can we distribute them among the current products, such as Mona and F57? At the same time, with such good sales, what should we do with our profit margin? We have three main factors.

Speaker Change #507: So you can listen to me, but let me also settlements lately touching a may contain saddam.

Speaker Change #508: We continue to call on Cullerton's Chimera, well, let's see.

Speaker Change #507: Yes.

Speaker Change #507: So you shouldnt see causing some anti nausea stomach.

Speaker Change #509: I'll, let some of that.

Speaker Change #510: <unk> took a manav.

Is it a passing juncture.

Bin Wang: For example, we have a lot of accounts, which means we can export more profit margin, and we can contribute more to the public. Our profit margin can reach 15%. This is my first question. My first question is about the fourth quarter this year. You're actually very confident about the fourth quarter this year.

Speaker Change #510: Until we shouldn't that somehow I sit on the shelf in the multi do you go to Macau you may have done the Shandong EMEA was down at the MISO do so Amanda the part on the jumbo so called Vanilla Marty how come toward the puzzling.

Speaker Change #510: A question on Martinez iPhone top.

Speaker Change #511: But I can assure you Glenn.

Speaker Change #512: My first question is about the number of full quarter. This year you are actually very confident about a number for this year.

Bin Wang: If you say that, the volume will have very high growth. If we assume there will be, say, 50% growth, last year, in the fourth quarter, the monthly volume would be 20K. So if it was 30K, what's the breakdown between the existing products and the upcoming Mona and the F57 large-scale sedan? Meanwhile, can you comment about the margin? Because we see three out there for the margin.

Speaker Change #512: I will say that the volume will have a very high growth.

Speaker Change #512: There will be 50% growth on last year and number four.

Mark: Mark do you want to be at 20 K. So if you just study what's the breakdown between the two.

Speaker Change #513: You can protest upcoming Mona.

Speaker Change #514: <unk>, David Madge tested in Meanwhile, came come up on the margin because we see a three hour default a margin number one is the cost reduction.

Bin Wang: Number one is the cost reduction. Second is the export, which only has a higher margin. And third one is the additional EEA income from Volkswagen. So is that growth margin close to 15%? Thank you. Hey Bing, it's Brian.

Speaker Change #513: That has certainly.

Speaker Change #513: Certainly have a higher margin set of one additional <unk>.

Speaker Change #515: Income from Volkswagen, So historical matching costs with 15%. Thank you.

Hongdi Gu: Let me just respond. First of all, in the first fourth quarter of this year, you will see that our Mona product will be in full delivery, and we'll also be launching the delivery of our B segment sedan. So those two products will contribute very meaningfully to the monthly delivery in the fourth quarter, but at very different stages, as you can tell, because starting off the delivery is different.

Brian Sabean: <unk>, it's Brian.

Speaker Change #516: Let me just respond.

Speaker Change #517: First of all in the first fourth quarter of this year you will see that are more on the product will be in full delivery and also will be launching the delivery of our the b.

Speaker Change #517: Segment sedan, so those two product will contribute meaningfully into the monthly delivery in the fourth quarter, but at a very different at a different stages. As you can tell because of the starting of the delivery is different so.

Hongdi Gu: So we are very excited about the prospect of both products in terms of generating significant volume. I would say, assuming both models are in full delivery month, I think the monthly numbers we anticipate increased over last year's comparable monthly delivery numbers are achievable. That's what we believe.

Speaker Change #517: So we obey.

Speaker Change #517: Excited about the prospect of both products in terms of generating significant volume I would say of the <unk>.

Jose assuming both models are in full delivery months I think the monthly numbers, we anticipate increased over last year's comparable monthly delivery number is achievable that's what we believe.

Speaker Change #517: Again, I'm not going to give you the exact number as well as breakdown, but that's how we envision the delivery number of growth, but also what I want to emphasize is that.

Hongdi Gu: Again, I'm not going to give you the exact number as well as the breakdown, but that's how we anticipate the delivery number growth. But also, what I want to emphasize is that, as you just heard, these two products are only the beginning of our super product cycle that will probably last for the next 18 to 24 months. And also, because early next year, and we will also have additional products as well as updated models to be launched in the subsequent quarters, we want to make sure that the growth profile remains stable, as well as under control.

Speaker Change #517: You just heard that this.

Speaker Change #517: These two product is only the beginning of our Super product cycle that will last probably for the next 18 to 24 months.

Speaker Change #517: And also because the the early next year.

Speaker Change #517: We will also have additional products as well.

Speaker Change #517: Updated models to be launched in the subsequent quarters, we want to make sure that.

Hongdi Gu: So we actually want to make sure that the additional volume that we want to achieve on a monthly basis is growing in a more stable and sequential manner rather than episodic, you know, big bursts like, you know, some other model launches you've seen. So I think that's, you know, kind of probably lasts until the remainder of next year, given the other models will later, hopefully, give you a prelude in the next two quarters of earnings.

Speaker Change #517: That growth profile maintain stable.

Speaker Change #517: As well as.

Speaker Change #517: The control so we actually want to make sure the additional volume.

Speaker Change #517: We want to achieve on a monthly basis is growing in a more stable and sequential manner, rather than episodic big bursts like some other model launches you've seen so I think that that's.

Speaker Change #517: Kind of probably last until the remaining of next year given the the other models well related pumps hopefully it will give you a pre look in the next few quarters of earnings in terms of the margin I would like to comment first of all I would say the Mona.

Hongdi Gu: In terms of margin, I would like to comment, first of all, on the MONA model. Even though it's an A-class sort of sedan, we are still anticipating healthy positive margin contribution from this model, and also in healthy quantities.

Speaker Change #517: Auto even though it's at a class sort of Sudan, we are still anticipating healthy positive margin contribution from this model and also in healthy quantities for the the beef segment's sedan, we think it's going to be higher margin than probably.

Hongdi Gu: For the B-segment sedan, we think it's going to be higher-margin than our current models, except the X9. So both will contribute, I would say, materially to the gross profit mix. And also, as Charles mentioned, the contribution from Volkswagen will continue to be, a steady recurring income.

Speaker Change #517: Our current models, except that X nine so both will contribute.

Speaker Change #517: Materially to the product proximate gross profit mix and also us.

Speaker Change #518: Charles mentioned the contribution from Volkswagen will continue to come up steady recurring income the same time, we anticipated additional contribution from E collaboration so with all this contribution as well as to our.

Hongdi Gu: At the same time, we anticipate additional contribution from EEA collaboration. So with all these contributions, as well as our view currently on the potential gross profit margin for the new product, we are maintaining a healthy low to mid-teen margin gross profit for our overall business by the end of this year. Okay, the second question is that we do see our peers actually launch the EIV version and then want to have a big increase. What's our plan for our power chain when you also launch the EIV version of the product? We generally don't want to answer the question of future clear product planning because this is a planning system.

Speaker Change #518: Our sort of our view currently on the.

Speaker Change #518: Potential gross profit margin for the new products, we are maintaining healthy mid two.

Speaker Change #518: Low to mid teen margin gross profit for our overall business by the end of this year.

Speaker Change #518: Okay.

Speaker Change #518: Some of them kind of norm.

Speaker Change #518: Additionally, sometimes pushing that down to suddenly be I'll call it almost quadruple it that way.

Speaker Change #519: And the second question is that we do see our peers actually.

Speaker Change #520: Yeah, Ivy bridge and I'm wondering if that big increase what's our plan for our powertrain, where you also announced that <unk> brought to us. Thank you.

Speaker Change #520: Yeah.

Oney bump for you you've laid out they will either does or doesn't mean Shannon.

Hongdi Gu: I think what we can answer today is that we will use genuine technology in the field of flying cars. We will not disclose any information in relation to our product designs because it is simply still in the planning stage. And going forward, this is something that we would be looking at being implemented in our flying cars. And in terms of the BEV, and I can say that so for the flying party, and the auto party, it will be the BEV. And so for further details, it is better that we wait until the product actually becomes more concrete when we have more detailed plans and are more ready to share with the market. Thank you.

Speaker Change #520: Okay.

Speaker Change #521: Hi, This is felipe quantity Shea.

Speaker Change #522: Well, Jay that Ginger and create that as a result, the efficiencies hurting any Maryland, Ohio Syngenta changes highlighted HHS finished.

Speaker Change #523: And she said she took since entering the fascia.

Speaker Change #522: Fishing illnesses turned in.

Speaker Change #522: You can fit them in China.

Speaker Change #522: You couldn't do it at home, yet and won't mention Shanghai and I think the timing that you hope it doesn't infringe out.

Speaker Change #522: Yeah.

Speaker Change #522: Okay.

Speaker Change #524: Thank you for your question and generally speaking, we would not be very willing to disclose any information an invitation to our product designs because some people still in the planning stage and going forward. This is something that we would be looking at that being implemented.

Speaker Change #524: Third in our flying car seat and.

Speaker Change #524: In terms of B b.

Speaker Change #525: <unk> and I can say that so so why the same party.

Speaker Change #525: So part of it will be BV, and therefore I'll give you further details on it is better that they'll wait until the product actually becomes a more concrete one when we have more detailed plans and the progress that you can share with the market. Thank you.

Hongdi Gu: I want to add two of our sincere opinions. I think the first one is that mixing is actually a real demand for customers. So now there are a lot of car owners in the past year or so, and I believe in the future there will be more than a year. This mixed technology, including genuine, is a technology that requires a huge amount of practicality. I believe that many motorists will probably change to pure electricity in the next car. This is the first thing we see.

Speaker Change #526: And what's happened with home yeah, good woman gets into kind of what you do with it.

Speaker Change #526: The Eagle, which is why you don't see the co wholesale essentially the three children, Tennessee that machine that can sit on top of our take or pay.

Speaker Change #527: Cheetah inventory will show you the Wheeler hygiene endorsed in Singapore don't usually deposits in Tennessee, the Civitas shield future, even touch that's Oh, my God, you're not familiar with him and say she is solar window, so common Sasha goodnight.

Speaker Change #527: In yantai, killing chats, you'd see that the Pinto So gene targets in 20 actually it hasn't crashed it couldn't toward a chisel shouldn't get us. So you will continue with casual that tallgrass since tallgrass.

Speaker Change #527: Tallgrass older Gen. So I'm thinking about between our faith in our chocolate chip cookie, yet were challenging and daughter for North Central Commons at shy Ventura. So.

Speaker Change #528: Does anyone wants in Trinidad.

Hongdi Gu: [inaudible] So please allow me just to add a few points. And my first point is that, yes, indeed, in the past one year and in the next year to come, we will see that there is quite a lot of demand from the market from consumers for PHEVs. However, you will see that a lot of these consumers will realize that despite having a PHEV, and out of a year, in terms of the times that they actually go to the petrol station and get it filled up, it's very little, only a few times.

Speaker Change #529: The <unk> chip I'll finish it.

Speaker Change #530: So please allow me just to supplement a few points and my first point is that Oh, yes, indeed in the past the one year and in the next year coupon, we will see that today, so quite a lot of demand coming from the market from the consumer for ph Evs.

Speaker Change #530: However, you will see that a lot of the consumer is that they will realize they want to despite having ath <unk> and out of the year in terms of the time. They actually go through the petrol station there to get it filled up isn't very little only a few times it.

Hongdi Gu: And by having this experience, more and more consumers actually have more confidence in BEVs and in pure electric vehicles, so to speak. And at the moment, we are also working hard on the construction and building of our Ultra X5 series of products. And I do believe that for consumers having experienced the PHEVs and for the next car model, it is very likely that they will go for BEVs. The second part is that from a technical point of view, it is much more difficult to go from pure electricity to pure electricity than to go from gasoline to pure electricity.

Speaker Change #530: By having this experience.

Speaker Change #530: More and more I can see myself actually have more confidence in <unk> and in pure electric vehicles at speed and at the moment. We are also working hard on the construction and the building of our ultra.

Speaker Change #530: <unk> is a product and so.

Speaker Change #530: I do believe that deploy consumers are having experience of phe visa and go for the next car model and it is very likely that they will go for BD.

Speaker Change #530: And again well financials for Tegra.

So he is a true chefoo southwest Washington does for India.

Hongdi Gu: However, we believe that many challenges have already been met by the current generation of real-world vehicles. For example, many challenges have been encountered in globalization. China's cars are mainly driven in cities, while in some overseas countries, cities and highways have a considerable proportion.

Speaker Change #530: Yes.

Speaker Change #531: Cohorts one trend in Belgium.

Speaker Change #531: Hello, Montana Duncan so you've tightened since he's orange in kind of a go tell that needle and such and Johan and pulling out one or two.

Speaker Change #531: So all of that she had her exceed that say I shouldn't even coverage.

Speaker Change #531: Full thing highlight a courtyard sortation and cultural towards a chunk of shutting down the PD psychosis certain kind of downturn in tier.

Hongdi Gu: So, in the current situation of high-speed real-world vehicles, For Xiaopeng, what will the next generation of Zhen Cheng be like in the field of robotics? This is what we need to think about. I hope to share more with you in the future.

Speaker Change #531: 800 of them too.

Speaker Change #531: Sure he's playing such a rotational natural.

Speaker Change #531: That doesn't mean any shade agenda and system. We are just sort of a good daughter sure sure.

Speaker Change #532: It's been pulled in Xi'an and second by different channels that you're changing the type of procedure.

Paul Gong: In addition, in terms of the technology and the movement from these cars into BEVs, actually, it's quite a jump in terms of the technology. And you can also see if we look at it globally, and, you know, for instance, in certain countries in Asia versus certain countries in Europe or elsewhere, and sometimes certain cars could only run on a certain path or certain roads, etc. And we do think that it is not as simple, it is not as straightforward as what we hear from the market. And we do think that, therefore, we would need to be very cautious, and we need to be very vigilant.

Speaker Change #532: In addition in terms of the technology and the movement from the cars and into BD is actually its quite a jump into in terms of the technology and then you can also see if we look at it globally.

Speaker Change #532: Okay.

Speaker Change #532: On fees in Asia.

Speaker Change #533: And then come to you.

Speaker Change #533: We're in elsewhere and sometimes if they can cause could only one on a certain path where certain zones etcetera I am but we do think that it is not a simple it is not as straightforward as what we hear.

Speaker Change #533: From the market at the end of it.

Paul Gong: And for XP, obviously, they will also continue to watch the space very carefully. Your next question comes from Paul Gong with UBS. The first question is about the end-to-end large model. Now there is some feedback from the industry saying that if the Tai Chi Foundation uses end-to-end technology as soon as possible, there will be uncertain factors. Because of the uncertain outcome, if it makes such a decision, it may not be able to make a precise decision. And there are also feedbacks that when the model becomes larger, its update will be slower. I don't know what Xiaopeng thinks about this.

Speaker Change #533: We think that so we would need to be very cautious and we need to maintain a vigilant and before XP. Obviously they will also continue to watch this space very carefully.

Speaker Change #534: Your next question comes from Paul Gong with UBS.

Speaker Change #534: Sure.

Speaker Change #534: To go into our vehicle into some point of view so call it $1 one from Washington.

Speaker Change #535: So it seems like Youre chattel yourself on quite a high to us.

Speaker Change #536: Thank you shouldn't do it seems like you're almost $1 one.

Speaker Change #536: Please.

Speaker Change #536: Sure thing.

Emily: Sure Emily.

Emily: Beating.

Emily: So that's what I thought youre going that you touched one of them you've got you had sort of hard to call.

Emily: Also in <unk>.

Okay.

Emily: One crucial with some cash at pantheon, Oklahoma total accretion sweep money.

Paul Gong: So my first question is regarding the end-to-end big model. There has been some feedback in the industry saying that it involves uncertainty in terms of decision making, and it also makes it more difficult to figure out why the decision was made in that way. And also, the feedback is that when the model becomes larger, it kind of slows down in terms of upgrading. So how does Xpeng think about this issue? This is my first question.

Speaker Change #538: Sure sure sure.

Speaker Change #539: So you've been asked this amount of Chicago. So my first question is regarding the end to end model. There has been some feedback from the industry has seen that.

Speaker Change #539: <unk> Samsung continues in terms of decision, making and also.

Speaker Change #539: I'd say its more difficult to figure out why the decision was made in that way and also the feedback is so in the model.

Speaker Change #539: Sure.

Speaker Change #539: In terms of upgrading.

Speaker Change #540: How does X pumping coupled with the C. Suite. This is my first question.

Xiaopeng He: [inaudible],, [inaudible] But with the advancement of technology, we have seen... [inaudible] We all know that there are many factors in a large model, but the most important thing is how you build your controller, such as your brake system, your black box safety system. So, in this aspect, I think it's better for Xiaopeng's car to be the past's automatic value., [inaudible], [inaudible] We put a lot of effort into this project. Okay, please translate this for me.

Speaker Change #539: Yeah.

Speaker Change #541: Uh huh.

Speaker Change #542: That's very helpful.

Speaker Change #543: So I'll turn the damn washing at home.

Speaker Change #544: Well it means that we're gaining shelf argue for a woman.

Speaker Change #544: Two we will see no worry.

Speaker Change #544: That's for sure the tissue to changing and what kind of data.

Speaker Change #544: It doesn't done Washington choose either to the judge.

Speaker Change #544: Torched it all too well.

Speaker Change #544: Sure Donaldson's, Ontario, which any unusual than originally argued said luxury goat yet either come to the teachers have neither.

It's a SaaS version.

Speaker Change #545: Clifford the unchanged.

Okay cool.

Speaker Change #545: That's just something I want you to.

Speaker Change #545: The shovel, she says a country that Sudan jazz an email on that.

Speaker Change #545: 200, <unk> cone true.

Speaker Change #545: And your employees young garner sitting now in Sydney meals in Honduras.

Speaker Change #545: That's a good email on the tissue side.

Speaker Change #545: Poof window to do it.

Speaker Change #545: And yet neither culture to the D J.

Speaker Change #546: Jimmy Choo fungi.

Speaker Change #547: Sounds good.

Speaker Change #547: So you've got things that are traditional.

Speaker Change #547: And then you can go with that as well didn't you mentioned you're building towards.

Daughter.

Speaker Change #547: Okay.

That's generally been through quite a bit of that in D. C and that she told us.

Xiaopeng He: Thank you very much for your question. Yes, indeed, in the very beginning, we did worry about it. And, however, with the advancement of technology, we can now see the huge value that end-to-end large models can bring. And, of course, with technology, there are always uncertainties, and what we need to do is to make sure that we are able to keep an eye on and ensure the safety of the black box, of the control of the vehicle, et cetera, and as well as the end-to-end capability.

Speaker Change #548: Hum Shambaugh FHA gotcha.

Speaker Change #547: Yeah.

Speaker Change #549: Thank you very much for your question, yes, indeed in the very beginning.

Speaker Change #549: We did worry about quarter end, however, with the advancement of the technology. We can now see that huge body of data and the large models at Campbell and of course, where the technologies are always uncertain because at the end what we need to do is to make sure that so we are able to keep.

Speaker Change #549: Am I and ensuring the safety of the black box of the control of the vehicle etcetera and as well as at the end to end the capabilities and secondly, we are also building a large in size.

Speaker Change #550: Oh, yeah, and that will help us to carry out it's a very it's a pilot in the trials.

Xiaopeng He: I don't really understand the second question, but I can try to explain it. In fact, the big model of autonomous driving and the big model of big languages are not exactly the same. In fact, you can understand the logic of the big model on the basis of transformers and write it yourself instead of using an open source model.

Speaker Change #550: I'm going to ask when he will position <unk> well.

Speaker Change #551: So that's really said hey, listen cities aren't that so don't ask me that I'm wishing for.

Speaker Change #551: And our most important changes.

Speaker Change #551: So he.

Speaker Change #551: He is like Hey, you know what that trial the format as usual.

Xiaopeng He: When you have the ability to use a big model, you don't need such a big data variable. For example, the market is talking about a model of 30 coins or a larger coin. In a suitable model, there is enough data to train, and we hope to join the following models in the future to achieve the maximum value in a suitable model. In fact, it has already greatly improved the programming ability of writing and automating this kind of driving, I think.

Speaker Change #552: Genealogy isn't without knocking on doors, you got situation, where she apples.

Speaker Change #551: Okay.

Speaker Change #551: Okay.

Speaker Change #553: And Toni <unk>.

Speaker Change #553: The season for shield, which the data shortly the vehicle just shifting gears.

Speaker Change #554: Yeah, Jason showed us in the sense. It would be you couldn't that'd be the agenda, Washington explicit emotion you meant from core traditional geotagging machine, yet John that wouldn't be a challenge I will caution you it doesn't mean to say.

Speaker Change #554: So for the most of them you mentioned was without a job Sundhage NP national share suggests it is happening in New York.

Xiaopeng He: With respect to your second question, I'm not entirely sure if I have understood what you are trying to get, but I'll try my best to answer. And I would say that from an autonomous driving model versus a large language model, these two are actually different when looking at them from transformers, and this is not open source.

Speaker Change #554: Tornado.

Speaker Change #555: Tissue Huffstetler.

Speaker Change #556: With respect to your second question I'm not entirely sure. If I have understood. What you are trying to get but I'll try my best to answer and I would say that from an autonomous driving mono wafers, a large language model. These two are actually different than looking at it from transformers.

Xiaopeng He: And if we do have our own model, actually, we do not need to use such a large amount of data as what the industry requires to be, and for instance, 30B or whatever, and we would be able, once identifying the appropriate model, to work on that basis and move forward. Thank you. Okay, my second question is about the existing channels. They are usually located in a good spot, but the area is relatively small.

Speaker Change #556: And this is the open source and if we do have our own model.

Speaker Change #556: We would not need to touch.

Speaker Change #556: Such amount of data as to what the industry.

Speaker Change #556: Sorry, as it was said to be in for instance, or <unk> or whatever and.

Speaker Change #556: We would be able once identify.

Speaker Change #557: Oh, yes, so they would be able to work on that.

Speaker Change #558: Move forward. Thank you.

Speaker Change #559: Dr. <unk>, you thought with Joe Shan Shan Li.

Paul Gong: With Xiaopeng, Qiche, and Mona increasing in size, do we see a need to expand the area of the power grid or even sacrifice the location as a price? So my second question is regarding the distribution channel. So far, I can see that the stores are mostly in some prime locations, but with relatively limited areas. As Xpeng gradually launches more new models and expands the portfolio, including Mona, do you see the need to expand the average size of the stores, or the area of the stores, even at the cost of, say, shifting out from the most prime locations? Alright. That's all for today. I'll see you all in the next video.

Speaker Change #560: One was on your call a beach our holiday <unk>.

Speaker Change #561: Founders shipyard shuttle flights.

Speaker Change #562: Shelton Chief.

Speaker Change #563: David towards that you've got some wonderful.

Joseph Shaw: So on and so forth handle your question Joseph for sure.

Joseph Shaw: The amount of your comment.

Speaker Change #564: So curious your thoughts on <unk>.

Speaker Change #565: So my second question, so regarding the distribution channel so far I can see that Todd.

Speaker Change #565: And most of that in some time location, but with relatively limited.

Speaker Change #565: Yeah.

Speaker Change #566: Exponent gradually announced Martin.

Speaker Change #566: All of those and the expander portfolio, including Mono do you see the need to expand the average size of the store. So the area of the store even at low cost I'll say shifting out on the most prime location.

Xiaopeng He: We have been optimizing our channels. For example, we are now optimizing our downstream channels. At present, we are covering more low-tier cities. In the past, Xiaopeng mainly worked in the high-end and mid-high-end industries. [inaudible] Thirdly, we won't use a very large area for the newly-opened one in the ink. We will use a 4-degree area.

Speaker Change #566:

Speaker Change #566: Okay.

Speaker Change #566: I'd say tortured.

Speaker Change #567: So Paul corridor, that's all true.

Speaker Change #566: Chairwoman.

Speaker Change #568: Well guy couldn't torque <unk> tension, though to say that you know like what she does against that once you have that Goshen.

Speaker Change #569: Go ahead Sir.

Speaker Change #570: Those are the financial challenges facing.

Sid Jones, who at the end of <unk>.

Speaker Change #571: Well, Cynthia Neiman lingo default towards Hershey cottages Disano women's day.

Speaker Change #571: <unk> hydrous, ammonium and fit well with us.

Xiaopeng He: In fact, we don't need to fill all the cars in the ink. [inaudible] And for instance, we are looking at going into the lower tier cities and trying to cover as many lower tier cities as possible. In the past, we have mainly focused on the high-end and the mid-end tier cities. And secondly, we do believe that 4S stores, these comprehensive stores, would be able to provide better support in terms of services.

Speaker Change #571: Okay.

Speaker Change #571: And it sounds like a morning, Michele partially solve that issue until create that I'll say the holiday emailed in chocolate chemo finish.

Speaker Change #571: Yeah.

Speaker Change #572: Thank you for your question and first of all.

Speaker Change #573: We have always continued to optimize our channels and all for instance will be looking at going into the lower tier cities and did you try and cover as many lower tier cities that are possible in the past we have mainly focused on the high end and more.

And secondly, we do believe that for the fourth will be the comprehensive report.

Xiaopeng He: And thirdly, even with the new stores that we open up in the malls, and again, we are not going to open them up with a huge amount of floor space. Because we do believe that even with an appropriate amount of space available for these stores in the mall, the conversion rate of successful orders is actually very high. Last year, our 4G network was optimized. This year, our 1G and 2G network is recovering. The recovery rate is good.

Speaker Change #573: Would it be able to provide better support and certainly even with that the new stores that will open up in the malls and again, we are not going to open them up.

Speaker Change #573: A huge area of.

Speaker Change #574: Uh huh.

Speaker Change #574: Because we do believe that even with.

Speaker Change #574: And appropriate amount of space available for these stores in the mall and the conversion rate of successful water is actually very high.

Speaker Change #574: And <unk>.

Speaker Change #574: Youll.

Xiaopeng He: At the same time, on the 3G network this year, we expect the number of sales to increase to 600,000. [inaudible] And, in addition, in terms of our plans for store openings in Q4 last year, we can see that it has been well recovered in Q1 and Q2 this year. And we predict that by Q3 this year, we will have about 600 stores. Thank you very much. That's quite helpful.???? Your next question comes from Tina Hou at Goldman Sachs. [inaudible] Unknown Speaker 1.

Cynthia: Yes Cynthia.

Speaker Change #576: As you heal perpetual license, which what kind of something that you can send it to them in the short term and near shutdown, maybe do you want to get that deal by deal.

Cynthia: Good.

Cynthia: Sure.

Cynthia: Sure.

Cynthia: Yeah.

Cynthia: And in addition in terms of our plans for store openings in Q4 of last year until we can see the answer is no.

Cynthia: While recoveries in Q1 and Q2 this year and we predicted that and so by Q3. This year, we will have about a four to 600 stores.

Speaker Change #577: Thank you very much that's quite helpful. Ghansham on your contract.

Cynthia: Yeah.

Cynthia: Okay.

Speaker Change #578: Your next question comes from Tina <unk> Goldman Sachs.

Speaker Change #579: Thanks, guys.

Speaker Change #580: Deutsche Bank.

Speaker Change #581: Sure women Ducommun upfront.

Speaker Change #582: Does that mean.

Speaker Change #583: Sure Josh.

Speaker Change #583: Hmm.

Speaker Change #584: Oh man.

Speaker Change #584: Ah yes.

Tina Hou: Thank you. And then maybe this, have you ever done this? [inaudible] So in terms of our MONA brand, what are some of the competing models? And then also for customers with this price. They might have less demand in terms of the smart... Transcribed by https://otter.ai Also, do we have any sales volume targets? [inaudible] Yes, this question should be addressed at MOLA's press conference.

Speaker Change #585: Hi, Joe.

Speaker Change #585: The chicken.

She cheating.

Speaker Change #585: Switching gender.

Speaker Change #586: Joe Joseph J girl.

Speaker Change #587: Got it.

Speaker Change #587: Jakob.

Speaker Change #588: Oh yeah.

Speaker Change #589: She told me.

Speaker Change #590: B J.

Speaker Change #590: Sure.

Speaker Change #590: Yeah.

Speaker Change #590: Sure Manav.

Speaker Change #590: Jbs.

Speaker Change #590: To be to be blunt.

T J.

Speaker Change #591: Let me just translate so in terms of our mono brand so far that you see.

Speaker Change #591: Customers are what are some of the competing models in the market and then.

Speaker Change #591: Also for the customers with this price segment.

Might have less demand in terms of the smart functions.

Speaker Change #591: Demand for like the pricing so aside from I think the vehicle design what are some of our key competitive advantages in this segment also.

Speaker Change #592: Do we have any sales.

Speaker Change #593: Sales volume target for the to be part of mono distribution. Thank you.

Speaker Change #593: Okay.

So the one his ethos that guy women rollout publically natural Gmail assured I'll say the Oh.

Xiaopeng He: I think MOLA, as we can see, [inaudible] Satisfy his client's needs. If the price is lower than other cars, we used to have a model called 10,000 US dollars. If the price is lower by 10,000 US dollars, the sales of the whole car will increase by 1 to 2 times. We can see this trend when the number of users is more than 200,000. This is the main indicator of competition among new users.

Speaker Change #593: Okay.

Speaker Change #593:

Speaker Change #593: And so you won't see our Xi'an <unk> months without her where she oversaw the alcohol tubby she's had a sort of chat though would be that.

Speaker Change #593: I can tell you is that you want me to <unk> mentioned sort of a pet.

Speaker Change #593: The shutdown for Chico's Italian seasons.

Shlomo: There's oh, sorry, Hello, Shlomo they'll kind of telling the truth.

Xiaopeng He: If we can reduce some of the volumes, we will tell you the exact volumes at the press conference. We believe that the demand for this scale is very large. It will be two to four times larger than it is now. But in the past, no one has built a car worth 100,000 to 200,000 yuan. It's beautiful, spacious, and smart. It's because they can't do it.

Shlomo: The city Kimpton, then you could say that delta.

Shlomo: It will go in and then go to the summer shutdown shoe or not.

Shlomo: Naturally those are the only publicly that goes with that Jeff J Goldman challenging putting motor skills.

Shlomo: That was the change either.

Speaker Change #595: So they don't believe it or not I think shimon.

Shlomo: Shimon.

Shlomo: No no. This is a country that's English with similar cash actually once again someday Orange Orchard Europe showed here on Jennie O chalk incident, so anyway.

Xiaopeng He: I think Xiaopeng and our partners have been working on this for four years. With such a big investment, I think we can finally start preparing. I think this is our chance.

Shlomo: Without well would you like to get that Chevron does it couldnt be met going in.

Shlomo: Total HCV in Florida.

Shlomo: Similarly in auto insurance.

Xiaopeng He: So, from another perspective, your question, in the field of 2C, we see that there are some friendly cars that sell a lot, between 20,000 to 50,000 units a month. But we feel that we still have a very big positioning difference with them, which satisfies a lot of customers' needs for beauty and technology, which did not exist in the past. Thank you for translating for me.

Shlomo: Sure.

Shlomo: Joe Shockley cartilage repair or just something that you guys should see.

Shlomo: Part of it is only in the winter.

Shlomo: Was it anything anywhere from kind of your shutdown can you share your central as a matter of faith.

Shlomo: No one has no one has said yes.

Speaker Change #596: So why don't you don't see that what I'm Gonna Hadley, you can fit on top of it.

Speaker Change #597: He was high somehow module that fit out or do you mean, the <unk> Xuzhou <unk> Xuzhou.

Xiaopeng He: Thank you very much for your question. And actually, this question is better asked at our MONA products launch event. Anyway, I'll make a few comments.

Speaker Change #598: I think what you're familiar with.

Speaker Change #597: Our balance sheet.

Speaker Change #599: Thank you very much for your question and actually this is a question is that better.

Xiaopeng He: And first of all, for this MONA product, as introduced and presented earlier, this is a product with very high beauty as well as external aesthetics. And, in addition, it also comes with a cheaper price. And we actually have a model, which is what we call the 10,000 U.S. dollar rule, which means that every time the price goes down by 10,000 U.S. dollars, you will see that the sales of that product will actually go up. By one time, it will actually go up by two times.

Speaker Change #600: In our mono product launch event, and so anyway I'll make a few comments and so first of all for.

This modem called out there as a <unk>.

Speaker Change #600: Produced and presented already oriented this is a product with a very high.

Speaker Change #600: Beauty as well as external aesthetics and.

Speaker Change #600: In addition, it also comes with a key part of potency and we actually.

Speaker Change #600: But in motto and a which is what we call. The 10000 U S dollar rule.

Speaker Change #600: Which means that every time the price goes down by $10000 again, you will see that it does scale with all that product will actually go up.

Xiaopeng He: And this model has been validated in our old experience with our other vehicles in a price range above 200,000. And now, if we were able to implement this and give a bit of a price discount for the MONA series, and in terms of the specific price reduction, we will talk about that in our MONA product launch. And I believe the sale that we are looking at is actually huge. And I would say it's about two to four times the present level.

Speaker Change #600: By one time, what actually go up by two times and.

Speaker Change #600: This model has been validated in our old XD, along with our other vehicles Oh, So our price range above 200000, and now is we would be able to implement and it could give a bit of a price discount for Mona theory.

Speaker Change #601: And just in terms of the specific price reductions, we will talk about 2000 in our monarch product the launch yes, I believe so.

Xiaopeng He: In the past, for the 100,000 to 200,000 price range, nobody was able to provide the consumers with a car that is not only beautiful, has good space, but also a smart car with very good technology. After four years of hard work and R&D and so much investment into this, XP has been able to come up with a product in MONA that is able to meet all the above demands. In other words, if you look at our competitors at the moment, yes, some of them say that they can sell 20,000 to 50,000 units of cars per month.

Speaker Change #602: Oh that until they are looking at is actually huge and I would say, it's about two to four times of that.

Speaker Change #602: To level.

Speaker Change #602: In the past well it wasn't due to 200000 price range nobody was able to provide to the consumer with a cost that is not only beautiful has a good space, but also a smart car with very good the technology. After four years of hard work and the R&D and so much investment into it.

Speaker Change #603: That's fine.

Speaker Change #603: <unk> has been able to come up with a product that.

Speaker Change #603: That is able to meet all the above but demand in other words, if you look at our competitors at the moment, yes. It sounded from say that that they can sell 20 to 50000 units for class a per months and high but I can assure you that so far our mono products.

Xiaopeng He: However, I can assure you that for our MONA product, you would see a huge difference between our car and the competitors' cars, because not only are we able to provide the beauty, provide the space, but also to provide this range of prices with good technology and good smart driving functionality that was not able to be met in the past. We have been discussing and thinking about the need for self-management for a long time. I think there are two ways to do it. First, we will provide a version with different intelligent layers to meet the needs of some users. These are often not high-end users with high data flow.

Speaker Change #603: A huge difference between our car basically the competitors cause it because not only that we are able to provide the beauty to provide you. This data, but also to provide it.

Speaker Change #603: Range of applied technology.

Speaker Change #603: Technology and.

Smart driving functionality you said that it was.

Speaker Change #603: With me is about was not able to be met in the past.

Speaker Change #603: I'm going to sit on quite a few charges.

Speaker Change #604: So the woman told enough enjoy your CCAR on Georgia.

Julia: Well Julia Goodbye diesel normally guess who put.

Speaker Change #606: That's often turned up.

Speaker Change #606: Two months ago got them that's for sure.

Speaker Change #606: With current and potential.

Speaker Change #606: Children.

Speaker Change #606: Yes.

Speaker Change #607: Well you know when you go to each of them with their you know what I'll tell you the army.

Sure Ethan.

Speaker Change #607: So she doesn't mean the Golden Eagle.

Speaker Change #608: Oh sure.