Q2 2024 XPeng Inc Earnings Call

August 20, 2024

Hello ladies and gentlemen. Thank you for standing by for the second quarter 2024 earnings conference call for Xpeng Inc.

unknown: YiXi.tv YiXi.tv

James Wu: First, as Brian mentioned, we are expanding on a global basis pretty rapidly. So we would expect the overseas sales, both in terms of absolute volume as well as percentage of total volume increasing in the second half compared to the first half.

Operator: At this time, all participants are in listen-only mode.

Speaker Change: At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question-and-answer session.

unknown: After management's prepared remarks, there will be a question and answer session.

James Wu: With regard to margin overseas, in conclusion, it is healthy, good margin.

Alex: Today's conference call is being recorded. I will now turn the call over to your host, Mr. Alex Xie, Head of Investor Relations and Capital Markets of the company. Please go ahead, Alex.

Operator: Xpeng Inc. At this time, all participants are in listen-only mode.

unknown: Today's conference call is being recorded.

James Wu: When you look at overseas markets, right, it's, It's quite different when it comes to different countries.

Speaker Change: Thank you. Hello everyone and welcome to Xpeng's second quarter 2024 earnings conference call. Our financial and operating results were issued via Newswire services earlier today and available online. You can also view the earnings press release by visiting the IR section of our website at ir.xiaopeng.com.

Unknown Executive: You can also view the only press release by visiting the IR section of our website at ir.shop.com.

unknown: I will now turn the call over to your host, Mr. Alex Xie, Head of Investor Relations and Capital Markets of the company.

Unknown Executive: Participants on today's call from our management team will include a co-founder, Chairman and CEO, Mr. Hsiao Peng, Vice Chairman and President, Dr. Brian Gu. Vice President of Corporate Finance and WW Project, Mr. Charles Zhang, Vice President of Finance and Accounting, Mr. Cheng Zhu, and myself.

Speaker Change: 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,

Speaker Change: Vice President of Corporate Finance and VW Projects, Mr. Charles Zhang, Vice President of Finance and Accounting, Mr. James Wu, and myself.

Operator: After management's prepared remarks, there will be a question and answer session.

Unknown Executive: Management will begin with prepared remarks, and the call will conclude with a Q&A session.

Unknown Executive: A webcast replay of this conference call will be available on the IR section of our website.

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.

Unknown Executive: Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Former looking statements involve the hearing, risk, and uncertainties. As such, the company's results may be materially different from the views expressed today.

Operator: Today's conference call is being recorded.

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.

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

Unknown Executive: Third information regarding these and other risks and uncertainties is included in the relevant public filings of the company as filed with the US Securities and Exchange Commission. The company does not assume any obligation to update any full looking statements, except as required under Article Law.

Speaker Change: Further information regarding these and other risks and certainties is included in the relevant document.

Speaker Change: 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 full looking statements except as required under applicable law.

Unknown Executive: Please also note that Expo's Ernestress release and this conference call include discussion of unauthored gas financial measures as well as unauthored non-gas financial matters. Expo's Ernestress release contains a reconciliation of the unauthored non-gas measures to the unauthored gas measures.

Speaker Change: Please also note that Xpeng's earnings price release and discomfort score include disclosure of unaudited gas financial measures as well as unaudited non-gas financial measures.

Operator: I will now turn the call over to your host, Mr. Alex Xie,

Speaker Change: Xpeng's earnings price release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures.

unknown: Please go ahead, Alex.

James Wu: But in sum, I would say, from a variable profit or contribution margin perspective for our overseas business, it is quite good, and it's helping us to improve the overall profitability of the company.

Xiaopeng He: I will now turn the call over to our co-founder, chairman and CEO, Mr. Hsiao Peng. Please go ahead. Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hs Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hsiao Peng, Mr. Hs I believe that in the future, there will be a lot of progress in the development process and development process.

Speaker Change: i would now turnend to call over to our co under chairman and see or mr push pung please go ahead so to she or a job put else the way someone in young in shat hier one be and job i' the say path only didn up i sen

Operator: Head of Investor Relations and Capital Markets of the company.

Operator: Please go ahead, Alex.

Alex Xie: Thank you.

Alex Xie: Hello, everyone, and welcome to Xpeng's second quarter 2024 earnings conference call.

Alex Xie: Our financial and operating results were issued via Newswire services earlier today and available, online. You can also view the earnings press release by visiting the IR section of our website at ir.xiaopeng.com.

Speaker Change: With the realization of cost reduction through technology and the continuous demonstration of our comprehensive management effectiveness

Alex Xie: Participants on today's call from our management team will include our co-founder, chairman, and CEO, Mr.

Speaker Change: As well as revenue from the monetization of technology through strategic cooperation with Volkswagen, our gross profit margin further increased to 14%.

Alex Xie: He Xiaopeng, Vice Chairman and President, Dr. Brian Gu, Vice President of Corporate Finance and VW Projects, Mr. Charles Zhang, Vice President of Finance and, Accounting, Mr. James Wu, and myself.

Speaker Change: This is among the leading positions in the new forces of innovation. More importantly, we have completed a new round of organizational capability upgrades and self-improvement.

Speaker Change: We have top industry talents joining us in key areas such as marketing, design, and AI, and we are rapidly starting to release work. We are continuously addressing our weaknesses and strengthening our strengths, making Xiaopeng a multi-faceted competitive powerhouse.

Alex Xie: Management will begin with prepared remarks and the call will conclude with a Q&A session.

Alex Xie: A webcast replay of this conference call will be available on the IR section of our website.

Speaker Change: Starting from August with the Mola M03, XPeng will also begin to enter a strong product cycle and a period of rapid development.

Alex Xie: Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S.

Alex Xie: Private Securities

Alex Xie: Litigation Reform Act of 1995.

Speaker Change: So from now until the end of 2026, how many models will we have?

Alex Xie: Forward-looking statements involve inherent risk uncertainties.

Alex Xie: As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and certainties 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.

Alex Xie: Please also note that Xpeng's earnings press release and this conference call include disclosure of unaudited gap financial measures as well as unaudited non-gap financial measures. Xpeng's earnings press release contains a reconciliation

Xiaopeng He: We will be able to improve the growth of AI technology and the innovation of innovation and innovation. We will be able to improve the growth of innovation and innovation. We will be able to improve the growth of innovation.

Alex Xie: of the unaudited non-gap measures to the unaudited gap measures.

Speaker Change: Launch immediately with competitive new products and facelift strategies

Speaker Change: Our planning for AI technology and product innovation, along with our achievements in cost reduction through technology, will all be reflected in these products.

Speaker Change: And coordinate in the Chinese and global markets through XPeng's stronger marketing system

Speaker Change: I believe this will bring benefits to the sustainable and steady growth of our sales. I am very confident that XPeng's deliveries will see significant quarter-on-quarter growth in both the third and fourth quarters this year, and will set a new delivery record in the fourth quarter.

Thank you.

Unknown Executive: Hello, everyone, and welcome to X from the second quarter of 2024 and its conference call.

Unknown Executive: Hello, everyone, and welcome to X from the second quarter of 2024 and its conference call. Our financial and operating results were issued by News 1, while services early today and available online. You can also view the only press release by visiting the IR section of our website at ir.shop.com.

Unknown Executive: Participants on today's call from our management team will include a co-founder, Chairman and CEO, Mr. Hsiao Peng, Vice Chairman and President Dr. Brian Gu. Vice President of Corporate Finance and WW Project, Mr. Charles Zhang, Vice President of Finance and Accounting, Mr. Cheng Zhu, and myself.

Unknown Executive: Management will begin with prepared remarks and the call will conclude with a Q&A session.

Speaker Change: Hi, we are dealing with some of the technical issues, please wait a moment.

Unknown Executive: A webcast replay of this conference call will be available on the IR section of our website. Before we continue, please note that today's discussion will contain former looking statements made under the safe harbor provisions of the US private securities litigation reform act of 1995. Former looking statements involve the hearing, risk and uncertainties. As such, the company's results may be materially different from the views expressed today. Third information regarding these and other risks and uncertainties is included in the relevant public spellings of the company as filed with the US Securities and Exchange Commission.

Unknown Executive: Our financial and operating results were issued by News 1, while services early today and available online.

Speaker Change: col

Unknown Executive: You can also view the only press release by visiting the IR section of our website at ir.shop.com.

Speaker Change: pu

Alex Xie: Thank you.

James Wu: Then your second question regarding the margin trend in the second half, I just wanted to clarify that we didn't really refer to the software margin for the second half.

Alex Xie: I will now turn the call over to

Speaker Change: Yeah, please go ahead.

Alex Xie: our co-founder, chairman, and CEO, Mr.

Speaker Change: Yes, I'm sorry. Hello, everyone. In the second quarter of 2024, Xpeng delivered 30,207 smart EVs, up 38% quarter over quarter and up 30% year over year.

Alex Xie: Hello everyone and welcome to Xpeng's second quarter 2024 earnings conference call.

James Wu: What we were talking about earlier was a variety of different components that will come into play in the second half, including higher volume, mixed changes in terms of overseas and domestic income from the VW collaboration will likely to increase, as well as additional new vehicle models with regard to Mona and P7+.

Alex Xie: Our financial and operating results were issued via Newswire services earlier today and available online. You can also view the earnings press release by visiting the IR section of our website at ir.xiaopeng.com.

Speaker Change: Supported by technology-driven cost reductions, efficient operation and management, and revenues from strategic technical cooperation with Volkswagen, our gross margin has further improved to 14%, placing us at the forefront of Chinese EV makers.

Alex Xie: Participants on today's call from our management team will include our co-founder, chairman and CEO, Mr.

James Wu: So overall, as I mentioned, the margin will maintain and stable in mid to low tens, but from a vehicle margin perspective, we are anticipating moderate growth compared to what we've seen in the first.

Unknown Executive: The company does not assume any obligation to update any full looking statements except as required under Article Law. Please also note that Expo's Ernestress release and this conference call include discussion of unauthored gas financial measures as well as unauthored non-gas financial matters. Expo's Ernestress release contains a reconciliation of the unauthored non-gas measures to the unauthored gas measures.

Alex Xie: He Xiaopeng, Vice Chairman and President, Dr. Brian Gu, Vice President of Corporate Finance and VW Projects, Mr. Charles Zhang, Vice President of Finance and Accounting, Mr. James Wu, and myself.

Yuqian Ding: 第二个问题,我想请教,关于智能驾驶的差异化,有没有一种可能,现在大家都在刷大数据、算法、算力和工程能力的闭环,那技术函数会不会进入一个比较平缓的、协律相对来说比较平缓的阶段?都能开,但未必能无死角的都好开。那如果说明年是iPhone时刻的话,那真正的这个基点和涌现爆发的方式可能是怎么发生呢?可不可以请教管理层给我们更多的分享,是因为有能力卖了更多的车,还是技术能力成熟了以后得到了更多的变现方式?

Alex Xie: Management will begin with prepared remarks and the call will conclude with a Q&A session.

Yuqian Ding: 第二个问题,关于智能驾驶的差异化。智能驾驶技术,大家都在发展,大家都在谈论,在操控大数据轮,工程能力,计算能力,但会不会,会不会,会不会,会不会,智能性的发展曲线的工程发展进入一个阶段,发展渠道的发展变化不平衡?

Speaker Change: More importantly, we completed a new round of organizational upgrades and internal restructuring, bringing on top talents who are already adding value in marketing, style design, AI, and other key areas.

Yuqian Ding: 所以,大家可以做智能驾驶服务,但是没有人真的站出来。所以,如果我们在谈论下个年份,是iPhone的时刻,是Chadwick的时刻,那么你能帮我们预测一下,单独和分开的情况是怎样的?

Speaker Change: We are consistently addressing gaps and solidifying our strengths to foster well-rounded competitiveness.

Hsiao Peng: I will now turn the call over to our co-founder, Chairman and CEO, Mr. Hsiao Peng, please go ahead.

Speaker Change: With the market launch of Mona M03 in August , we are entering an intense product launch cycle and a period of rapid development, with a number of competitive new products and models to be introduced through the end of 2026.

Speaker Change: With our AI technology advancement, targeting product innovations, and technology-driven cost reductions, coupled with an enhanced global and domestic marketing and sales system, these new products will fuel our sustainable growth trajectory.

Unknown Executive: Management will begin with prepared remarks and the call will conclude with a Q&A session.

Hsiao Peng: [inaudible] Hsiao Peng,[inaudible][inaudible] of innovation of innovation of innovation[inaudible] I believe that AI will start a new generation of AI systems, and the change of AI systems will lead to the more powerful development of the system. From the bottom of the line of use of the change, and from the start to the end of the business.

He Xiaopeng: He Xiaopeng.

Speaker Change: We're confident of achieving substantial quarter-over-quarter delivery volume growth in Q3 and Q4, respectively, and of reaching a new delivery record in the fourth quarter.

Speaker Change: On August 8th, we launched the pre-sale of the Mola M03 model. The consumer response has been very exciting for us, with pre-sale orders already surpassing the performance of the G6 during the same period last year.

Speaker Change: In the 150,000 price range of the A-class pure electric car market, the Mola M03 model has the most stylish design.

Speaker Change: Completely different intelligent collection and intelligent driving have achieved a user experience that surpasses the 200,000 premium level in multiple aspects.

Xiaopeng He: I believe that it will become a full-time, C-4 market standard. We will also work on the 8th, 27th of July, with MOLA M3 last week, and we will continue to work on the use of MOLA M3. We have prepared together with the Communist Party to support MOLA M3's participation. I hope that this time MOLA will be able to create a small red heart.

Speaker Change: I believe it will become a benchmark in the A-level pure electric C-end market.

Speaker Change: We will also hold the tenth anniversary of Xiao Moqi and the commercial service launch event for Mola M03 on August 27, and initiate large-scale delivery to users after the launch.

Speaker Change: We and our supply chain partners are ready to support the rapid ramp-up of Molar M03's production capacity. I hope that this time Molar's delivery speed can set a new record for XPeng, allowing the word-of-mouth effect of good products to quickly take off, and the sales trend to be more stable.

Xiaopeng He: That would be a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, well-mannered, and a good, well-mannered, well-mannered, well-mannered, and a good, well-mannered, well-mannered, well-mannered, and a good, well-mannered, well-mannered, well-mannered, and a good, well-mannered, well-mannered, well-mannered, and a good, well-mannered, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, and a good, well-mannered, well-mannered, during our upcoming major product launch cycle.

Alex Xie: A webcast replay of this conference call will be available on the IR section of our website.

Yuqian Ding: 这意味着我们在技术上变得更成熟,所以我们在卖更多的车,或者是因为技术的进步,我们在找到更多的利润模式。谢谢。呃,對,想用非技術的邏輯講出來還是挺困難的我嘗試一下我覺得, 以前的自動駕駛,你可以認為是在一個有上帝視角的高清地圖的指引下,去簡單地利用規則去實現效果。它的最大的問題是…… 他有太多這種異常的場景以這個我們俗稱的 Color Case 無法好的, 那麼同時客戶的體驗,比如說今天如果你去做中國的無人駕駛,他們很多時候時速只在40到50公里的時候。且切线转弯非常的机械, 就如果你用眼睛去看,不像是一個人端到端的邏輯是說, 是在各個區域內閣學習當地的開創, 車優秀的老司機記住是要優秀的老司機的方式去開,或者去學習你自己的開車方式去開, 形成很絲滑、安全。但是他可能不會在特殊場景下比如说某一个转角有可能有, 有很多流浪的貓那麼在這種場景他可能不像原來的自動駕駛裡面他可能會定一個規則說這裡要繞一繞因為有很多流浪貓所以但是最終我們認為端樂端在我們現在看它的進步的速度會快速的打敗原來的, 中國的L3或者L4呢?

He Xiaopeng: Please go ahead.

He Xiaopeng: Mr.

He Xiaopeng: He Xiaopeng, Chairman, CEO, Xpeng Hello, everyone.

Speaker Change: On August the 8th, 2024, we began pre-selling MONA M03 and were thrilled by consumers' enthusiastic response.

He Xiaopeng: In the second quarter of 2024, Xpeng's turnover amounted to 30,207 units, which is a 38% increase compared to the previous year, and a 30% increase at the same time.

He Xiaopeng: With the technology downgrade and the continuous display of our comprehensive management, effect, as well as the income from the technological transformation of strategic cooperation with the public, our profit margin has been further increased to 14%.

He Xiaopeng: This is among the new technologies, and this is among the new technologies.

He Xiaopeng: More importantly, we have completed a new round of organizational capacity upgrades and self-change.

Speaker Change: So far, its pre-sale orders have surpassed last year's G6 pre-sale orders in the comparable sales period. Priced in the RMB150,000 segment among the eight-box BUV sedans, MONA M03 stands out with its trendy stylish design and unique smart cockpit.

Speaker Change: Offering a best-in-class driving experience which outperforms that of vehicles in the RMB200,000 price range across many aspects, MONA M03 is setting benchmarks and emerging as a top competitor in the A-class BEV market segment.

He Xiaopeng: In the field of marketing, styling, AI, and many other key areas, we have the top talent in the industry joining us and are quickly starting to play a role.

He Xiaopeng: We are constantly improving the short-term and making the long-term stronger, making Xpeng a multi-layered competitor with comprehensive capabilities.

Alex Xie: 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 risk and uncertainty. As such, the company's results may be materially different from the views expressed today.

Alex Xie: Further information regarding these and other risks and certainties 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 full-looking statements except as required under applicable law.

He Xiaopeng: From August, Xpeng will enter a strong product cycle and a fast-developing cycle starting with MOLA, M03, and SOCKS. From now to the end of 2026, we will have a multi-layered product cycle and a fast-developing product cycle starting with MOLA, M03, and SOCKS.

Alex Xie: Please also note that Xpeng's earnings price release and discomfort score include disclosure of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. Xpeng's earnings price release contains a reconciliation of the unaudited non-GAF measures to the unaudited GAF measures.

Alex Xie: I will now turn the call over to our co-founder, chairman, and CEO, Mr.

Speaker Change: We'll be hosting our 10th Anniversary Gala Night and launching MONA M03 on August 27th with mass deliveries set to begin shortly thereafter.

He Xiaopeng: He Xiaopeng.

He Xiaopeng: 有竞争力的全新产品和改款策行,立即的上市。我们对AI技术和品牌创新的规划, 加上我们对于技术降本成果的体现, 都会体现在这些产品上, 并且通过小鹏更强大的营销体系在中国和全球市场进行销售。我相信这会为我们销量的可持续性、行稳资源的增长带来效益。很有信心,小鹏今年在三季度和四季度交付量环比都会大幅增长, 并且在四季度创交付量的新高。您好,我们正在谈论一些技术问题, 请稍等一会儿。你好吗?

He Xiaopeng: 请说话。是的,抱歉。大家好,在2024年第二半, X-Bank将提供30,207台智能电脑, 提升了38%在半年内, 并提升了30%在一年内。由于科技主导的价格减少, 细腻的运营和管理, 以及从科技企业和Volkswagen的收入, 我们的经济增长增长了14%, 将我们放在中国电脑制造商的前线。更重要的是, 我们完成了新一轮的组织升级和内部建设, 带来顶级才华人, 他们已经在市场上添加价值, 设计设计,AI和其他关键范围。我们一直在解决缺陷, 并强化我们的力量, 以维持专业竞争。由于Mona M03在8月的市场发展, 我们进入了一个严重的产品发展轮迴, 并进入了一个迅速的发展阶段, 有许多竞争性的新产品和模型, 将在2026年底推出。由于我们的AI技术发展人, 目标产品进步, 以及科技主导的价格减少, 加上了增强的全球和家庭市场和销售系统, 这些新产品将激励我们的持续增长路线。在8月8日,我们开启了Mona M03车型预售。消费者的反响令我们非常振奋。预售的订单已经超过了去年季度的同期表现。那么在15万这个级别的A级纯电交车市场, Mona M03车型区域, 我们的预售预算已经超过了去年季度的同期表现。让好产品的口碑效应迅速破产销量走势会更加稳健, 8月8日的2024年我们开始预售摩拉M03, 并受到用户的热情反应目前来看, 预售预约超过了去年G6预售预约在相同的销售时间, 预售在RM150,000的部分其中的A级BUV设备, 摩拉M03出色的是它的时尚风格设计和独特的智能座椅, 提供一种高级驾驶体验在200,000RMB的预售预售领域, 提供出色的车款在许多方面, 摩拉M03正在设置标准并且在A级BUV市场领域成为顶级竞争者, 我们将举行10周年的Gala Night 并在8月27日在摩拉M03上市, 并且将在稍后开始的大量送达我们的供应商伙伴们, 为了支持摩拉M03的快速生产升级与我们一起, 我希望摩拉M03的快速生产升级的送达速度会提供新的销售记录, 这会帮助快速增强这个出色的产品的名声, 并且帮助增加销售量接下来我们将在四季度, 正式推出新一代的轿车产品平台也就是P7+,P7++有大空间的优势, 另外是高颜值的优势这两个优势是突出了, 走距三米车长超过五米, 它会为家庭用户带来更好的选择同时P7++也是我们新一代, 自动驾驶硬件平台的首发车型我们超额完成了, 自动驾驶的硬件加分整车的BOM优化的既定目标, 在技术创新在成本上, 我们相信会具备竞争对手更难以负责的优势, 那么在这两款全新车型交付爬坡后会显著扩大我们的市场份额, 同时我也在重点推动供应链生产制造营销销售交付和服务, 这些环节里面打造更高效的横向的体系能力, 以支持我们在后面的更大产品周期里面的, 新产品上市交付的能力接下来我们将正式推出, 我们的下一代自动驾驶车 P7++在第四季, P7++具有丰富的窄窄的内部空间, 3米的轮框超过5米的长度, 让它是家庭客户的超级选择更何况, P7++将是我们的第一款设计基于我们的下一代, ADAS硬件平台 P7++不仅打败了, 我们的价格减少目标在ADAS与硬件相关的, 整体车型炸弹但也充满了科技 innovation, 和价格优势使我们的竞争者失败, 与两款新设计交付结合起来, 我们对于大幅度的扩充市场股份, 同时我仍然专注于, 扩充我们的能力在供应商, 制造商市场, 销售和客户送输这将充满更有效率, 和可规格的运营系统加速产品的发展和送输, 在我们将来的主要产品发展轮迴中, 在往接下來的數年裡面,我相信AI會重新定義汽車,AI汽車的變革會帶來比電動化對汽車行業帶來更大的顛覆,從根本上改變用戶的駕駛體驗,並且重塑出行的商業模式。大模型結合XNGP採用無高音地圖,並且有很強放話能力的AI技術,我相信最終是讓自動駕駛擺脫地域,擺脫道路限制,走向全球化大範圍應用的一個必有之路。從7月30日起,我們將AI天機系統5.2版本已經全量推送給了小朋友,這標誌了XNGP開始進入到不限城市,不限路線,全國都好用的一個全新的階段。 Since July the 30th, AI-powered XOS version 5.2 has been made available to all Xpeng owners, taking XNGP to the next level by empowering a smooth experience anywhere, regardless of city and route.

Speaker Change: Our supply chain partners have geared up to support MONA M03's fast production ramp-up alongside us. I'm hopeful that the delivery pace of MONA M03's

He Xiaopeng: Please go ahead.

He Xiaopeng: 郭文貴新聞, 同比增長38% 秦界技術教本的兌現, 全面經營管理效果的不斷增強以及来自和大众战略合作的基础变现的收入我们的毛利率进一步提高, 以上言論不代表本台立場這在造科新勢力中間都是唯一的, 更重要的是我們完成了新的一輪的組織能力的升級和自我我們在營銷、造型、AI等多個關鍵領域都有行業頂尖的人才加入我們並且正在迅速開始發展, 我们在不断地补齐短板并且使长板更有效率讓小鵬成為綜合競爭力的多倍競爭者, 從8月沒有啦,他不知道什麼時候開始,小鵬還會開始, 强劲的谈判快速發展, 那么从现在到2026年年末,我们会有多款?

Speaker Change: Fast production ramp-up will set new Xpeng records, which will help quickly enhance the reputation of this outstanding product through word-of-mouth and support a strong increase in sales.

Yuqian Ding: 这是一个简单的, Well, it will be very challenging for me to try to respond to your question without involving, you know, technical terms or language, but I'll do my best.

Speaker Change: Next, we will officially launch the new generation of the Jiaode product platform, PTGa, in the fourth quarter.

Speaker Change: The advantage of a large space and the additional advantage of high aesthetics are both prominent. With a walking distance of three meters and a car length exceeding five meters, it will provide a better choice for family users.

Speaker Change: At the same time, PG Plus is also the first model of our new generation autonomous driving hardware platform. We have exceeded the predetermined goals for hardware enhancements in autonomous driving and optimization of the entire vehicle's BOM. In terms of technological innovation and cost, we believe we will have advantages that are more difficult for competitors to replicate.

Speaker Change: Then, after the ramp-up of deliveries for these two new models, we will significantly expand our market share.

Speaker Change: At the same time, I am also focusing on enhancing the efficiency of the horizontal system capabilities in the areas of supply chain production, manufacturing, marketing, sales, delivery, and service.

Speaker Change: to support our ability to deliver new products in the larger product cycles that follow

unknown: 竞争力的全新产品和改款, 我們對AI技術跟品面創新的規劃加上我們對於字幕由Amara.org社区提供, 都會體現在這個并且通过小鹏更强大的营销脾气在中国和全球, 我相信这会为我们的销量的可持续請問資源, 帶來效益我很有信心小鵬今年在三季度和四季度交付量環比都會大幅度增長,並且在刺激度創交付量的新高。 Hi, we're dealing with some of the technical issues.

Yuqian Ding: First of all, the previous model or technological approach that was widely adopted industry for ADAS is the so-called all-knowing perspective, relying on high-definition maps and also rule-based architecture to develop their ADAS autonomous driving capability.

Speaker Change: Next, we'll officially launch our next generation sedan, the P7 Plus, in the fourth quarter. The P7 Plus features exquisite stabling interior space with a 3-meter wheelbase and over 5-meter length, making it a superior choice for family customers.

unknown: Please wait a moment.

unknown: Hello.

Yuqian Ding: Now, the main challenge for that approach is that you have actually numerous corner cases where you actually have to examine them one by one, and the customer experience, the driving experience itself is not perfect.

Yuqian Ding: For example, most of the ADAS vehicles on the market available right now is driving at about 40 to 50 kilometers per hour, and also their lane changes and turn-making look very, very robotic.

Speaker Change: Furthermore, P7 Plus will be our first model based on our next-generation ADAS hardware platform. P7 Plus not only beats our cost-reduction targets in both ADAS-related hardware and overall vehicle BOM, but also boasts technology innovations and cost advantages that outperform our competitors.

unknown: Hello.

unknown: 请继续, Yes, I'm sorry.

He Xiaopeng: Hello, everyone.

He Xiaopeng: In the second quarter of 2024, Xpeng delivered 30,207 smart EVs, up 38% quarter-over-quarter and up 30% year-over-year.

He Xiaopeng: We're consistently addressing gaps and solidifying our strengths to foster well-rounded competitiveness.

He Xiaopeng: Supported by technology-driven cost reduction, efficient operation and management, and revenues from strategic technical cooperation with Volkswagen, our gross margin has further improved to 14%, placing us at the forefront of Chinese EV makers.

He Xiaopeng: More importantly, we completed a new round of organizational upgrades and internal restructuring, bringing on top talents who are already adding value in marketing, style design, AI, and other key areas.

Speaker Change: With deliveries of two new models ramping up, we're optimistic about significantly expanding our market share.

Speaker Change: At the same time, I remain dedicated to bolstering our capabilities across supply chain, manufacturing, marketing, sales, and customer delivery. This will fuel a more efficient and scalable operational system, accelerating product launches and deliveries during our upcoming major product launch cycle.

He Xiaopeng: With the market launch of MONA M03 in August, we're entering an intense product launch cycle and a period of rapid development, with a number of competitive new products and models to be introduced through the end of 2026.

Xiaopeng He: I believe that AI will start a new generation of AI systems, and the change of AI systems will lead to the more powerful development of the system. From the bottom of the line of use of the change, and from the start to the end of the business. In the end of the line of use of the change of AI systems, and from the start to the end of the business, and from the start to the end of the business, and from the start to the end of the business, and from the start to the end of the business, and from the start to the end of the business.

Speaker Change: Looking ahead to the next few years, I believe AI will redefine automobiles.

Speaker Change: The transformation brought by AI in automobiles will cause a greater disruption to the automotive industry than electrification, fundamentally changing the user experience.

Speaker Change: And reshape the initial business model

Speaker Change: the mon do one a motional to her junk tough to do two poor to 't just that she sha t need a scha ingj did at a so do year union and how cotry you lo the way who in the different job sound but to't just the untransching

Speaker Change: Experience and scope will make a leap, and it will lower the cost threshold. This will overall accelerate the arrival of the tipping point for user acceptance of automation. Large models combined with SNGP.

Speaker Change: Adopt a map without high tones and

Speaker Change: AI technology with strong communication capabilities, I believe, will ultimately enable autonomous driving to break free from regional and road restrictions, paving the way for global application and widespread use.

Xiaopeng He: Looking ahead to the upcoming years, I believe that the impact of AI on vehicles will be even more significant than that of electrification for the automotive industry. AI will fundamentally change the driving and riding experience, and will reshape the business models in the auto and mobility sector. The eventment of the end to end and AI models is going to break through the limitations of current ADAS technologies, and their iterations will happen much faster than traditional coding methods. AI will revolutionize ADAS safely and driving experience, lower the cost, and speed up the mass market adoption of ADAS.

Speaker Change: Looking ahead to the upcoming years, I believe that the impact of AI on vehicles will be even more significant than that of electrification for automotive industry.

He Xiaopeng: With our AI technology advancement, targeting product innovations, and technology-driven cost reductions, coupled with an enhanced global and domestic marketing and sales system, these new products will fuel our sustainable growth trajectory.

Speaker Change: AI will fundamentally change the driving and riding experience and will reshape the business models in the auto and mobility sector.

Speaker Change: The advancement of the end-to-end and AI models is going to break through the limitations of current ADAS technologies, and their iterations will happen much faster than traditional coding methods.

Speaker Change: AI will revolutionize Ada's safety and driving experience, lower the cost, and speed up the mass market adoption of Ada.

Xiaopeng He: The combination of AI models with XNGP, which is non-HD reliant, and has strong generalization capabilities, is the only path to developing ADAS technology that delivers a seamless experience anywhere, regardless of location or route, and can be scaled globally.

Speaker Change: The combination of AI models with XMGP, which is non-HG reliant and has strong generalization capabilities, is the only path to developing ADAS technology that delivers a seamless experience anywhere, regardless of location or route, and can be scaled globally.

Xiaopeng He: From July 30th, we have completed the 5.2 version of AI technology. The XNGP of XNGP has started to become a step forward, and the steps of the steps of the steps of the steps of the steps of the steps of the steps of the steps of the steps of the steps of the steps of the step forward.

Speaker Change: Starting from July 30th, we have fully rolled out the AI Tianji System version 5.2 to the children.

Speaker Change: This marks the beginning of SNGP's entry into unlimited cities.

Speaker Change: A brand new phase where there are no route restrictions, and it works nationwide. We have taken the lead in realizing the application and implementation of large models on all user roads across the country. I would like to particularly emphasize that the application of multi-column large models in autonomous driving is known to be exceptionally challenging.

Xiaopeng He: I want to emphasize that ADAS technology is very difficult to use in advanced ADAS technology. ADAS technology is very difficult to use in advanced ADAS technology.

Speaker Change: One of its huge challenges is how to ensure a secure closed loop.

Speaker Change: That is to say, it must have a very high upper limit of capability, while also having a very good lower limit as a safety net.

Speaker Change: Xpeng's years of accumulated data and experience in the field of autonomous driving give us a stronger ability to embrace this new end-to-end model. Compared to before, it will bring a more captivating, smoother, and safer experience.

Speaker Change: So next we will connect China's

Speaker Change: ETC toll stations and parking lots in small communities, acrobatics and various other breakpoints enable XNGP to achieve the ultimate experience from parking space to parking space, and realize the second step capability of the Xiaopeng end-to-end large model.

Xiaopeng He: Since July the 30th, AI-powered XOS version 5.2 has been made available to all X-Fang owners, taking XNGP to the next level by empowering a smooth experience anywhere, regardless of city and route. We are the first to deploy AI model technology that offers access to ADAS on all public roads for all users nationwide.

He Xiaopeng: We're confident of achieving substantial quarter-over-quarter delivery volume growth in Q3 and Q4, respectively, and of reaching a new delivery record in the fourth quarter.

Speaker Change: Since July the 30th, AI-powered XOS version 5.2 has been made available to all Xpeng owners, taking XMGP to the next level by empowering a smooth experience anywhere regardless of city and route.

He Xiaopeng: 在8月8日,我們開啟了Mola M03車型的預售, 消費者的反響令我們非常震撼。预售的订单已经超过了去年纪录的同期的那麼在15萬這個級別的A級純電膠車市場Mola M03車型, 这一次到了完全不一樣的智能出趟和智能駕駛在多個方面都實現了超越二十萬的目標, 我相信它会成为A级纯电C端市场的标杆我们也将在8月27日举办小红旗的十周年跟摩浪MD3的正式发布会并且在上市后启动对用户的大规模提供我們和供應鏈合作夥伴們, 做好了准备,会支持摩拉M03的产能的快速爬坡。我希望这一次摩拉的交付速度能够创造小鹏的那好產品的口味效應, 銷量總是會更加穩定, On August the 8th, 2024, we began pre-selling MONA M03 and were thrilled by consumers' enthusiastic response. So far, its pre-sale orders have surpassed last year's G6 pre-sale orders in the comparable sales period. Prized in the RM150,000 segment among the 8-box BUV sedans, MONA M03 stands out with its trendy stylish design and unique smart cockpit, offering a best-in-class driving experience, which outperforms that of vehicles in the RM200,000 price range across many aspects.

He Xiaopeng: MONA M03 is setting benchmarks and emerging as a top competitor in the A-class BUV market segment.

He Xiaopeng: We are the first to deploy AI model technology that offers access to ADAS on all public roads for all users nationwide.

Yuqian Ding: It's not a human-like kind of driving experience, whereas the AI approach, our end-to-end AI models approach, allow us to actually learn from excellent, and I want to focus on the adjective here, excellent or high-quality experienced driver or human-like driver, someone like yourself, you know, when it comes to the driving habit and the performance across different areas of the country.

Speaker Change: We are the first to deploy AI model technology that offers access to ADAS on all public roads for all users nationwide.

He Xiaopeng: The application of end-to-end AI large models in autonomous driving is easier said than done. One of the challenges is how to ensure safe closed-loop testing with both an extremely high upper limit and a solid lower limit.

Xiaopeng He: The application of N2NAI large models in autonomous driving is easier said than done. One of the challenges is how to ensure safe closed loop texting with both an extremely high upper limit and a solid lower limit. Our extensive datasets and gears of experience in urban ADAS driving give us an edge in integrating these N2NAI models, providing a safer, more human life driving experience for our users. We are gearing up to tackle smart driving challenges such as ETC tow stations and parking gauge barriers with our XNGP capabilities.

Yuqian Ding: But obviously, they also encountered a challenge of solving different corner cases because it's not rule-based.

Unknown Executive: A webcast replay of this conference call will be available on the IR section of our website.

Yuqian Ding: For example, if you encounter stray animals, for example, a stray cat in the world, you know, on the road, it's not going to try to avoid it because it's not something that they've learned before, whereas in a rule-based approach, maybe there is a rule there that states that you have to avoid hitting those animals.

Speaker Change: The application of end-to-end AI large models in autonomous driving is easier said than done. One of the challenges is how to ensure safe closed-loop testing with both an extremely high upper limit and a solid lower limit.

He Xiaopeng: Our extensive data sets and years of experience in urban ADAS driving give us an edge in integrating these end-to-end AI models, providing a safer, more human-like driving experience for our users.

Yuqian Ding: So there are pros and cons to different approaches, but I believe the development of the capabilities based on this AI end-to-end model is going to be a lot more significant and a lot quicker than the previous rule-based approach.

Speaker Change: Our extensive datasets and years of experience in urban ADAS driving give us an edge in integrating these end-to-end AI models, providing a safer, more human-like driving experience for our users.

Unknown Executive: Before we continue, please note that today's discussion will contain former looking statements made under the safe harbor provisions of the US private securities litigation reform act of 1995. Former looking statements involve the hearing, risk and uncertainties.

Hsiao Peng: [inaudible] Looking ahead to the upcoming years, I believe that the impact of AI on vehicles will be even more significant than that of electrification for automotive industry. AI will fundamentally change to driving and riding experience, and will reshape the business models in the auto and mobility sector. The eventment of the end to end and AI models is going to break through the limitations of current ADAS technologies, and their iterations will happen much faster than traditional coding methods.

He Xiaopeng: We are gearing up to tackle smart driving challenges such as ETC tow stations and parking gauge barriers with our XNGP capabilities.

Speaker Change: We're gearing up to tackle smart driving challenges such as ETC toll stations and parking gauge barriers with our XMGP capabilities.

He Xiaopeng: Our goal is to offer an unparalleled parking spot-to-parking spot ADAS experience and implement the end-to-end AI models to the next level as our second step.

Xiaopeng He: Our goal is to offer an unparalleled parking spot to parking spot ADAS experience and implement the N2NAI models to the next level as our second step.

Speaker Change: Our goal is to offer an unparalleled parking spot-to-parking spot ADAS experience and implement the end-to-end AI models to the next level as our second step.

He Xiaopeng: 最让我兴奋的是,从今年四季度开始, 我们将会在中国企业行业里最有竞争力的报名成本在PT加上来实现高阶智能驾驶。那么在不久的将来,我们会把这一套能力普及到更多的车型, 也就是它也将成为全球第一家车企能够在两万美金这个级别的车型上实现高阶智能普及驾驶。我希望更多的年轻人可以轻松地购买跟享受这些新的AI技术, 同时让XNGP的用户的规模以及高质量的数据规模迅速扩大, 从而支撑AI的这个整体能力进一步提升和成本的进一步的下降。那么我们的目标是在明年的下半年, 让XNGP的汽车能够在中国对标海外一流的Robotics的软件使用体验, 也就是说在一个城市里面实现一百到数百公里才需要接管一次。这样对用户的出行体验是颠覆性的。那么这个时候就变成了整车的硬件和成本是基于L2, 但是软件跟体验达到了L3 Plus这样一个级别。那么在可负担的成本结构下, 我相信消费者会像过去五年快速从男友车切换到新能源汽车一样, 快速地开始拥抱AI汽车。我将在下一周的小鹏汽车十周年品牌发布会, 以及在今年年后面一些时间的1020年度科技日上跟大家分享我们在AI的大模型、机器人、Robotics, 以及小鹏更多的技术创新上的突破。更加兴奋的是,我们的下一代ADAS硬件平台, 将在第四周的P7 Plus上出现, 提供高级ADAS在中国自动车行业中最具竞争性的轰车价格。在未来,我们将在更多的EV模型上提供XMGP, 使Xpeng成为全球首家自动车公司, 在20,000美元的价格范围内提供高级ADAS在汽车模型上。我非常意外的是,这些提升的负载量将允许更多的年轻用户, 购买和享受最新的AI技术, 并且扩充XMGP的活动用户基础和高质量的数据框。这将形成一个正面的轮廓, 增强我们AI-拥有的ADAS能力, 并且更加减少成本。我们的AI-拥有的XMGP-配备, 大量生产的聪明EV, 能够提供一种驾驶体验, 相等于世界级的RoboTaxi 在2025年第二半。这意味着只需要几百公里在城市区域, 取得一顿自动驾驶, 这很荒唐。换句话说, 我们将提供Lv.3自动车和使用体验, 在Lv.2 ADAS硬件和Lv.2 ADAS价格范围内。我们相信, 消费者会迅速地接受AI-拥有的车子, 正如他们在过去五年间, 从传统的油轮车转换为电动车。我将分享更多的详细内容关于我们的AI模型, 机械, RoboTaxi和其他切割技术的发展, 在我们的10周年晚宴下个星期, 我们的年度技术日是10月24日。从今年开始,我们在国际化车型跟海外市场的长线布局开始进入更快速的发展期, 这成为我们销量和盈利增长的重要驱动力之一。在二季度,小龙汽车在中国纯电品牌的中高端出口销量,也就是售价在3万美金以上的销量, 我们在排名第一,海外销量对我们的贡献首次超过了10%。 G9成为挪威、丹麦、以色列排名第一的中大型纯电SUV,在瑞典、荷兰等也进入了前三名。在我们看来,要做好高质量全球化,不能只靠新能源,更要看AI。我们最新版本的AI天机OS在8月15日也完成了对海外市场的全面OTA, 让海外用户带来了前所未有的中国速度的OTA体验。凭借产品基础的优势,我们会为小龙汽车打造独树一帜的高端科技品牌,并获得更多全球消费者的认可。在三季度,小龙G6在海外市场首次上市后的订单需求强劲, 我们将在8月起启动G6左舵版本和右舵版本的上市教程。截止在7月末,我们已经通过经销商合作伙伴进入了30个国家和地区, 并拥有了70多家销售店,包括在欧洲、中东、拉美。我们将在下半年进入更多的右舵市场,包括英国、澳大利亚和东南亚的多个国家。同时,小龙汽车在国际市场销售门径的数量预计在今年的下半年也会翻倍提升。在今后几年,我们都期待海外业务保持稳健但是规模增长的势头。从今年开始,我们的国际模式和海外市场的长期策略正在进入一个快速增长的阶段, 并在驾驭销售和利润增长上扮演了更重要的角色。在下半年,Xpeng是全能汽车高端货币销售领域的第一名, 也被认为是全能汽车最高端货币销售领域的第一名。 Xpeng G9成为了全能汽车和挪威、丹麦和以色列的第一大全能SUV的需求大小, 并且在前三季中,Xpeng是全能汽车高端货币销售领域的第一名。我们认为,除了新能源,AI是为我们实现高质量的运营重要。 8月15日,我们完成了全能汽车或OTA转让, 为我们的国际客户提供了全能XOS, 为海外市场提供了中国制造的OTA体验。我们的独特和优质的技术品牌, 在我们的产品强度上, 获得了全球消费者的认可。在我们进入第三季, 我们采取了非常强的力量, 在首次的海外订单中, 为全国版的Xpeng G6进行货币交易。在8月份开始, 我们预计将开始向左手驾驶和右手驾驶的G6货币货币货币运营。在7月份,我们已经在30个国家和地区, 包括DILA, 并在欧洲,中东和美国国际上建立了超过70个海外卖车桥。我们计划将在2024年第二半进行更多的右手驾驶市场, 包括英国,澳大利亚和几个东南亚的国家。另外,我们预计将在2024年第二半进行两倍的Xpeng的国际销售。在接下来的几年中, 我预期我们的海外生意将保持强大的增长, 领导全球销售高端智能电动车, 并增强我们的名誉为全球技术品牌。我们和大众汽车集团的长期战略合作在过去的一年里达到多个重要的里程碑,并且合作范围还在持续扩大。在今年的7月份,小鹏与大众汽车集团签订了电子电气架构技术合作的联合开发协议, 这将为大众在中国生产的CMP和MEB平台联合开发行业领先的电子电气架构。从2016年开始,基于CMP和MEB平台的国产大众汽车品牌车型商都会搭载改电子电气架构。凭借双方的深厚互信和通义协作,第一个搭载联合开发的电子电气架构车型会在24个月内量产。我非常期待扩大我们和大众的技术合作范围,进一步加强双赢的战略合作关系。我也相信中国的速度和小鹏的技术将会为我们和我们的合作伙伴在全球汽车行业的变革里面创造更大的战略和协作。我们在过去一年以来与Volkswagen进行多次的优势合作。如同我们说的,我们扩大了我们的合作目标。在今年7月,我们签署了EE建筑技术合作协调协议, 与Volkswagen Group共同发展业内领导的EE建筑, 为全国生产车型建立在Volkswagen的中国主要平台或CMP和MEB平台上。开始于2026年,全国生产车型建立在CMP和MEB平台上将配有与EE建筑合作发展的协调协调协议。感谢两个团队的深厚的互信和合作, 第一个模型配有与EE建筑合作发展的协调协调协议预计将在24个月内进行大量生产。第二个模型配有与EE建筑合作发展的协调协调协议预计将在24个月内进行大量生产。我非常期待我们的技术合作的扩展, 并且加强我们的赢赢夺夺策略合作。我认为中国的速度和高科技的组合将为我们和我们的伙伴创造更多的合作和策略价值, 我认为小鹏没有浪费每一场危机, 经过2022年9月份的气球发布会以及过去两年销量的起伏, 我们坚定地在推进组织规划上的战略变革, 让小鹏汽车的综合竞争力全面提升。这为后面进度快速增长的顺风期以及在AI的全新词典里面实现行稳自圆做好了充分的准备。随着小鹏的新的产品周期的开启, 我们预期2024年第三季度的总交付数量约为4万1000至4万5000两, 环比上升35.7%至49, 那么收入预计约为人民币91至98亿元, 环比上升12.2%到20.8%。我很高兴我们没有让每个危机都浪费, 并且我们从它们上升起伏。在2022年9月推出G9和过去两年发生的销售浮动, 我们对我们的组织和计划进行了重要的战略变革, 这并且大幅提升了小鹏的竞争力并为我们提供了迅速增长。我们已经完全准备好在下一世纪的AI中进行稳定进步。当我们进入我们的主要制作开发轮, 我们预期我们的总交付数量将在2024年第三季度从4万1000至4万5000变成35.7%至49%。此外,我们预期我们的第三季度总交付数将在9.1亿人民币至9.8亿人民币之间下降, 代表12.2%至20.8%的四分之一增长。謝謝大家,那麼下面由我們的財務VPJames為大家介紹我們2024年第二季度的財務總和。汽車銷售總收入為2024年第二季度的6.82億元, 每年54.1%增加,每年23.9%增加。每年和每季度的增長,主要來自於更高的運輸。服務和其他方面的總收入為2024年第二季度的1.29億元, 每年102.5%增加,每年28.8%增加。每年和每季度的增長,主要來自於更高的運輸。服務和其他方面的總收入,主要來自於更高的運輸。 That loss was $1.28 billion for the second quarter of 2024, compared with $2.8 billion, for the same period of 2023 and $1.37 billion for the first quarter of 2024.

He Xiaopeng: As of June 30, 2024, our company had cash and cash equivalents, restricted cash, short-term, investments and time deposits in total of $37.33 billion.

He Xiaopeng: 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 second quarter 2024 financial results.

He Xiaopeng: This concludes our prepared remarks.

Operator: We will now open the call to questions.

Operator: Operator please go ahead.

Speaker Change: What excites me the most is that starting from the fourth quarter of this year, we will achieve high-level autonomous driving with the most competitive registration costs in the Chinese automotive industry by adding PT.

Xiaopeng He: In addition, we are going to use the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the best of the From the start of this year, we have started to develop a more rapid relationship between China and the United States.

Operator: Thank you.

Operator: If you wish to ask a question, please press star 1 on your telephone and wait for your, name to be announced.

Operator: If you wish to cancel your request, please press star 2.

Operator: If you're on a speaker phone, please pick up the handset to ask your question.

Operator: For the benefit of all participants on today's call, if you wish to ask your question to, management in Chinese, please immediately repeat your question in English.

Operator: For the sake of clarity and order, please ask one question at a time.

Speaker Change: In the near future, we will extend this capability to more vehicle models, making it the first car model in the world to achieve advanced intelligent co-pilot functionality at the $20,000 price level.

Speaker Change: I hope more young people can easily purchase and enjoy these new AI technologies, while also expanding the user base of XNGP.

Hsiao Peng: AI will revolutionize ADAS safely and driving experience, lower the cost, and speed up the mass market adoption of ADAS. The combination of AI models with XNGP, which is non-HD reliant, and has strong generalization capabilities, is the only path to developing ADAS technology that delivers a seamless experience anywhere, regardless of location or route, and can be scaled globally.

Speaker Change: As well as the rapid expansion of high-end data scale, thereby supporting the further enhancement of AI's overall capabilities and the further reduction of costs. Our goal is to achieve this by the second half of next year.

Speaker Change: Enable XACP's cars to match the overseas first-class Robotastic software experience in China, that is, to achieve it within a city.

Speaker Change: Only needing to take over once every hundred to several hundred kilometers is a game-changer for the user experience. At this point, the vehicle's hardware and cost are based on L2, but the software and experience have reached an L3 Plus level.

Hsiao Peng: From July 30th, we have completed the 5.2 version of AI technology. The XNGP of XNGP has started to become a step forward, and the steps of the steps of the steps of the steps of the steps of the steps of the steps of the steps of the steps of the steps of the steps of the step forward.

Speaker Change: So with an affordable cost structure, I believe consumers will quickly start embracing AI cars just as they have rapidly switched from boyfriend cars to new employee cars over the past five years.

Operator: Management will respond and then feel free to follow up with your next question.

Charles Zhang: [inaudible] Zhang. Since July the 30th AI-powered XLS, version 5.2, has been made available to all Xfang owners, taking XNGP to the next level by empowering a smooth experience anywhere, regardless of city and route. We are the first to deploy AI model technology that offers access to ADAS on all public roads for all users nationwide.

Operator: Your first question comes from Tin Sa with Morgan Stanley.

Speaker Change: I will share with everyone our breakthroughs in AI large model robots, Robotasy, and more technological innovations of Xiaohong at the Xiaohong 10th Anniversary Brand Launch next week and at the 1024 Annual Technology Day later this year.

Tim Hsiao: Hello, Mr. Management.

Tim Hsiao: Thank you for accepting my question.

Yuqian Ding: I hope I answered your question.

Tim Hsiao: I would also like to congratulate 3G-DOO for a strong growth in traffic under the new, vehicle cycle.

Tim Hsiao: I have two questions.

Tim Hsiao: The first question is about the sales of the new vehicle.

Tim Hsiao: Because of the M03 supply and export volume, the traffic can return to the previous high, in September due to the guidance of 3G-DOO.

Speaker Change: Even more excitingly, our next-generation ADAS hardware platform will debut on the P7 Plus in the fourth quarter, offering high-level ADAS at the most competitive farm cost in China's auto industry.

Tim Hsiao: Considering the support of the P7 plus, 3G-DOO may even reach the level of 30,000 units in, April.

Yuqian Ding: Thank you.

Tim Hsiao: But we can see that as the new platform changes, what does the management think, about how to consolidate the traffic volume of the new vehicle compared to the previous models?

Operator: That does conclude our question and answer session.

unknown: I'd like to turn the call back over to the company for closing remarks.

He Xiaopeng: We'll be hosting our 10th anniversary Gala Night and launching MONA M03 on August the 27th, with mass deliveries set to begin shortly thereafter. Our supply chain partners have geared up to support MONA M03's fast production ramp-up alongside us.

He Xiaopeng: I'm hopeful that the delivery pace of MONA M03's fast production ramp-up will set new Xpeng records, which will help quickly enhance the reputation of this outstanding product through word-of-mouth and support a strong increase in sales.

Speaker Change: In the near future, we'll offer XMGP on more EV models, making Xpeng the world's first auto company to deploy high-level ADAS in a car model in the US$20,000 price range.

Speaker Change: I'm optimistic that improved affordability will allow more younger users to buy and enjoy the latest AI technologies, expanding XMGP's active user base and high quality data pool.

Speaker Change: This, in turn, will create a positive cycle, strengthening our AI-powered ADAS capabilities and further reducing costs.

He Xiaopeng: 接下来我们将在4节课题中, 正式推出新一代的教德产品平台,也就是PT加加油, 大空間的優勢另外是高顏值的優勢走距3米,車長超過500公尺, 他会为家庭用户带来更好同時,PG加也是我們新一代自動駕駛硬件平台的首發, 我們超額完成了自動駕駛的硬件加分整車的Bone的優化在技術創新的成本上我們相信, 不具备技能的对手更难以处理那麼在這兩款全新車型交付爬坡後會顯著擴大我們的市場, 同時我也在重點推動供應鏈生產製造營銷銷售交付和服務這些環節裡面打造更高效的橫向的这是我们在后面的更大产品周期, 的新產品, Next, we'll officially launch our next-generation sedan, the P7 Plus, in the fourth quarter. The P7 Plus features exquisite stabling interior space with a 3-meter wheelbase and over 5-meter length, making it a superior choice for family customers. Furthermore, P7 Plus will be our first model based on our next-generation ADAS hardware platform. P7 Plus not only beats our cost-reduction targets in both ADAS-related hardware and overall vehicle bomb, but also boasts technology innovations and cost advantages that outperform our competitors. With deliveries of two new models ramping up, we're optimistic about significantly expanding our market share.

He Xiaopeng: At the same time, I remain dedicated to bolstering our capabilities across supply chain, manufacturing, marketing, sales, and customer delivery. This will fuel a more efficient and scalable operational system, accelerating product launches and deliveries during our upcoming major product launch cycle.

Speaker Change: We aim to have our AI-powered XMGP-equipped mass-production smart EVs provide a driving experience equal to that of world-class robotechs by the second half of 2025.

Speaker Change: This means just one manual takeover required per several hundred kilometers in urban areas, which is groundbreaking.

Charles Zhang: The application of N2NAI launch models in autonomous driving is easier set than done. One of the challenges is how to ensure save closed loop texting with both an extremely high upper limit and a solid lower limit. Our extensive datasets and gears of experience in urban ADAS driving give us an edge in integrating these N2NAI models, providing a safer, more human life driving experience for our users. We're gearing up to tackle smart driving challenges such as ETC tow stations and parking gauge barriers with our XNGP capabilities.

Speaker Change: In other words, we are going to offer Level 3 Plus Autonomous Software and user experience on Level 2 ADAS hardware at a Level 2 ADAS price point.

He Xiaopeng: 在往接下來的數年裡面,我相信AI會, 重新定義 AI汽车的变革会带来比电动化对汽车行业带来更大的改革。從根本上改變用戶的價值從所出行的商業, 那麼端到端加大模型的組合姜蕙大, 在體系能力的上限迭代的速度也会远远超过过去的, 蘇貝茲, 李彥和范瑋燕, 會降低成本的這會整體會加速用戶接受智能化的觀點到來, 大模型結合XN機採用無高音地圖, 很强放话能力的AI 我相信最終是讓自動駕駛擺脫地獄、擺脫道路, 以上言論不代表本台立場在未來幾年,我相信AI在汽車上的影響將會更加嚴重比起汽車電力行業的影響, AI will fundamentally change the driving and riding experience and will reshape the business models in the auto and mobility sector. The advancement of the end-to-end and AI models is going to break through the limitations of current ADAS technologies, and their iterations will happen much faster than traditional coding methods. AI will revolutionize ADAS safety and driving experience, lower the cost, and speed up the mass market adoption of ADAS.

He Xiaopeng: The combination of AI models with XMGP, which is non-HG reliant and has strong generalization capabilities, is the only path to developing ADAS technology that delivers a seamless experience anywhere, regardless of location or route, and can be scaled globally.

Speaker Change: With an affordable cost structure, we believe consumers will quickly embrace air-powered cars just as they quickly switched from traditional fuel vehicles to electric vehicles over the past five years.

Speaker Change: I'll share more details about our advancement in AI models, robotics, robotechsy, and other cutting-edge technologies at our 10th Anniversary Gala Night next week and our annual Tech Day on October 24th.

Tim Hsiao: How can we maintain a growth trend over a longer period of time?

Charles Zhang: Our goal is to offer an unparalleled parking spot to parking spot ADAS experience and implement the N2NAI models to the next level as our second step.

He Xiaopeng: 从7月30号起,我们将AI天机系统5.2版本, 全釀推送給的小朋友这标志的SNGP开始进入到不现实的状态, 全國都好用的一個全新的階段我們率先實現了大模型在全面用戶全國道路上的應用我想特别强调的是,多伦多安大模型在自动驾驶的应用是知义型的。他的一个巨大的挑战是如何确保安全的避洪也就是既有極高的能力上限,同時也要有非常好的能力下限。那么,小鹏在自动驾驶领域多年沉底的数据跟经验,让我们具备更强的能力去拥抱端着端着这个新的模式。相比以前會帶來更理能、更流暢、更安全的, 那么在接下来我们将打通中国的 ETC收费站,以及各个小区的停车场、杂技等各种断点环节是XNG的, 出現從車位到車位的此前,小鵬端了端大模型的第二部, Since July the 30th, AI-powered XOS version 5.2 has been made available to all Xpeng owners, taking XMGP to the next level by empowering a smooth experience anywhere regardless of city and route.

Speaker Change: Starting this year, our long-term layout for international models and overseas markets has entered a faster development phase, becoming one of the key drivers of our sales and appeal.

Xiaopeng He: This is the most important thing for us in the United States.

Tim Hsiao: My first question is about the sales momentum of the new models.

Speaker Change: In the second quarter, in terms of mid-to-high-end export sales of pure electric brands in China, specifically those priced above thirty thousand US dollars, we ranked first. For the first time, overseas sales contributed more than 10% to our total sales.

Speaker Change: The G9 has become the top-ranked mid-to-large electric SUV in Norway, Denmark, and Israel, and has also entered the top three in Sweden and the Netherlands.

Xiaopeng He: In the second half of this year, China's China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-Ch China-China-China-China-China-China China-China-China-China-China-China China-China-China-China-China-China-China China-China-China-China-China-China-China-China-China China-China-China-China-China-China-China-China-China-China-China-China China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China China-China-China-China-China-China China-China-China-China-China-China China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China-China- We have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time.

Speaker Change: In our view, achieving high-quality globalization cannot rely solely on new energy; it must also depend on AI.

Speaker Change: The version of AI Tianji OS also completed a comprehensive OK for the overseas market on August 15, bringing an unprecedented experience to overseas users.

Hsiao Peng: [inaudible] From the beginning of this year, we started to talk about the situation between China and the overseas market, and started to get closer and faster. This is the only important thing for us to achieve. In the second half of this year, the Chinese-speaking Chinese-speaking market, the Chinese-speaking market, which is the third-generation American-speaking market, we are in the first place. Our contribution to the overseas market has exceeded 10%.

Speaker Change: The digital OTA experience in China, leveraging the advantages of product technology, will help us create a unique high-end technology brand for Xiaohong Motors and gain more recognition from global consumers in the third quarter.

Tim Hsiao: Because the experience of the third quarter volume guidance of 41 to 45K suggests that, September delivery could be back to previous peak.

Tim Hsiao: This together with the upcoming P7 plus could easily stand at a company's year end.

Tim Hsiao: However, in light of relatively short life momentum of the new models, for the models, launched last year, how could X-BEN45 sustainable sales momentum this time for the new models like M03 and the upcoming P7 plus?

Tim Hsiao: My second question is about the sales momentum of the new models.

Speaker Change: The demand for orders was strong after the overseas market debut of the XiaoHong G6. Starting in August , we will launch the left-hand drive and right-hand drive versions of the G6.

Speaker Change: By the end of July , we have entered thirty countries and regions through our distributor partners.

Speaker Change: and have more than 70 snack shops, including in Europe , the Middle East, and Latin America. We will enter more tempting markets in the second half of the year, including the UK, Australia, and Southeast Asian countries.

Speaker Change: At the same time, the number of Xiaomeng Automobile's sales stores in the international market is expected to double in the second half of this year.

Speaker Change: In the coming years, we all expect overseas business to remain stable but in an unstable state.

Speaker Change: umotor gender cha conendap that

Speaker Change: The international sales of mid-to-high-end smart electric vehicles are leading, and we are enhancing our global technology brand image.

He Xiaopeng: We are the first to deploy AI model technology that offers access to ADAS on all public roads for all users nationwide.

unknown: Thank you once again for joining us today.

He Xiaopeng: The application of end-to-end AI launch models in autonomous driving is easier said than done. One of the challenges is how to ensure safe closed-loop testing with both an extremely high upper limit and a solid lower limit.

Speaker Change: Starting from this year, a long-term strategy for international models and overseas markets is entering a period of faster growth and is playing a more significant role in driving both sales and profit growth.

He Xiaopeng: We're gearing up to tackle smart driving challenges such as ETC tow stations and parking gauge barriers with our XMGP capabilities.

He Xiaopeng: Our goal is to offer an unparalleled parking spot-to-parking spot ADAS experience and implement the end-to-end AI models to the next level as our second step.

He Xiaopeng: 最让我兴奋的是,从今年四季度开始,我们…… 将会在中国汽车行里面最有竞争力的报名成本再批级加上来实现高阶层那麼在不久的將來我們會把這一套, 提到更多的車型,也就是它也將成為全球第一家車型能夠在兩萬美金這個級別的車型上實現高階的車型我希望更多的年轻人可以轻松地购买并享受这些新东西。同時讓XNGP的用戶的規模增加以高端的數據規模迅速擴大,從而支撐AI的整體能力。我們的目標是在明年的下半年那XHEP的, 能够在中国对标海外一流的Robotastic软件市场在一個城市裏面實現的, 一百到數百公里才需要接管這樣的用戶的, 那么这个时候就变成了整车的硬件和成本是基于L2,但是软件跟体验达到了L3+.

Speaker Change: In the second quarter, Xpeng ranks first in export sales of mid- to high-end all-electric vehicles, or BEVs, priced above US$30,000 among all Chinese BEV brands.

unknown: If you have further questions, please feel free to contact Xpeng's investor relations team via the contact information provided on our website for the Pearson Financial Communications.

unknown: Thank you.

Speaker Change: For the first time in our history, overseas sales accounted for more than 10% of our total sales.

Speaker Change: Xpeng G9 has become the number one mid-to-large-size all-electric SUV in Norway, Denmark and Israel and ranked the top three in the same class in Sweden and the Netherlands.

He Xiaopeng: 那麼在可負擔的成本結構下我相信消費者會像過去五年快速從南油車切換到新能源, 快速地開始擁抱AI 我將在下一週的小紅旗的十週年, 發佈會以上言論不代表本台立場, 后面一些事情在1024年度科技日上跟大家分享 Lobotasy 以及小紅更多的, Even more excitingly, our next-generation ADAS hardware platform will debut on the P7 Plus in the fourth quarter, offering high-level ADAS at the most competitive bomb cost in China's auto industry.

He Xiaopeng: In the near future, we'll offer XMGP on more EV models, making Xpeng the world's first auto company to deploy high-level ADAS in a car model in the $20,000 price range.

He Xiaopeng: Optimistic that improved affordability will allow more younger users to buy and enjoy the latest AI technologies, expanding XMGP's active user base and high-quality data pool. This, in turn, will create a positive cycle, strengthening our AI-powered ADAS capabilities and further reducing costs.

Speaker Change: We believe that in addition to new energy, AI is crucial for us to achieve high-quality globalization.

He Xiaopeng: We aim to have our AI-powered XMGP-equipped mass-production smart EVs provide a driving experience equal to that of world-class robotechs by the second half of 2025. This means just one manual takeover required per several hundred kilometers in urban areas, which is groundbreaking. In other words, we're going to offer Level 3 Plus autonomous software and user experience on Level 2 ADAS hardware at a Level 2 ADAS price point.

He Xiaopeng: With an affordable cost structure, we believe consumers will quickly embrace AI-powered cars just as they quickly switched from traditional fuel vehicles to electric vehicles over the past five years.

He Xiaopeng: 从今年开始,我们在国际化测评和海外市场的长线调整中, 開始進入更快速的發展期這成為我們銷量與隱匿政黨的重要驅動力在二季度,小龙汽车在中国纯电品牌的中高端出口销量,也就是售价在三万美金以上的销量。我們再排名第一海外销量对我们的贡献首次超过了百分之百, 成為挪威、丹麥、以色列排名第一的中大型純電廠在瑞典和荷蘭等也進入了前三名, 在我們看來,要做好高質量的全球化,不能只靠新的研究。更要看AI, 本的AI天机OS在8月15号也完成了对海外市场的全面OTA,让海外用户带来了前所未有的帮助。中國數字的歐帝, 凭借产品技术的优势,我们会为小鸿系统打造独树一帜的高端科技獲得更多全球社會的支持, 小鸿G6在海外市场首次上市获得订单我們將在八月, 啟動G6主舵板和又多版本的上市交易, 那么截止在七月末,我们已经通過, 一家三口合作伙伴進度了三次擁有了七十多家消費店包括在歐洲、中東、拉美我們將在下半年進入更多的誘惑市場包括英國, 澳大利亚和东南亚的同时,小萌汽车在国际市场销售门店的数量预计在今年的下半年。班辟在今後幾年,我們都期待海外業務保持穩定。文杰规模的增长墙, 在中高端智能電動汽車的國際化銷量是領先的提升我們的全球化, Starting from this year, our long-term strategy for international models and overseas markets is entering a period of faster growth and is playing a more significant role in driving both sales and profit growth.

Operator: This concludes today's conference call. You may now disconnect your line.

He Xiaopeng: I'll share more details about our advancement in AI models, robotics, robotechsy, and other cutting-edge technologies at our 10th Anniversary Gala Night next week and our annual Tech Day on October 24th.

Speaker Change: As of August the 15th, we completed our over-the-air, or OTA, rollout of the latest AI-powered XOS for all of our international customers, offering an unprecedented China-made OTA experience for overseas markets.

Operator: Thank you.

He Xiaopeng: In the second quarter, Xpeng ranked first in export sales of mid- to high-end all-electric vehicles, or BEVs, priced above US$30,000, among all Chinese BEV brands.

He Xiaopeng: For the first time in our history, overseas sales accounted for more than 10% of our total sales.

Speaker Change: Our unique and premium tech brand has gained worldwide consumer recognition by leveraging our product strengths.

He Xiaopeng: Xpeng G9 has become the number one mid- to large-size all-electric SUV in Norway, Denmark, and Israel, and ranked in the top three in the same class in Sweden and the Netherlands.

He Xiaopeng: We believe that in addition to new energy, AI is crucial for us to achieve high-quality globalization.

He Xiaopeng: As of August the 15th, we completed our over-the-air or OTA rollout of the latest AI-powered XOS for all of our international customers, offering an unprecedented China-made OTA experience for overseas markets.

He Xiaopeng: Our unique and premium tech brand has gained worldwide consumer recognition by leveraging our product strength.

He Xiaopeng: As we enter the third quarter, we saw a very, very strong momentum in the initial overseas orders for the international version of Xpeng G6. Starting from August, we expect to begin deliveries of the left-hand drive and right-hand drive versions of G6.

Speaker Change: As we enter the third quarter, we saw a very, very strong momentum in the initial overseas orders for the international version of Xpeng G6.

He Xiaopeng: As of July, we have expanded our presence to 30 countries and regions via dealer partners and established over 70 overseas self-stores, including in Europe, the Middle East, and Latin America.

Speaker Change: Starting from August , we expect to begin deliveries of the left-hand drive and right-hand drive versions of G6.

Speaker Change: As of July , we have expanded our presence to 30 countries and regions via dealer partners and established over 70 overseas sales stores, including in Europe , the Middle East, and Latin America. We plan to enter more right-hand drive markets in the second half of 2024, including the UK, Australia, and several countries in Southeast Asia.

He Xiaopeng: We plan to enter more right-hand drive markets in the second half of 2024, including the UK, Australia, and several countries in Southeast Asia.

He Xiaopeng: Also, we expect to double the number of Xpeng-branded international self-stores in the second half of 2024.

Hsiao Peng: [inaudible][inaudible] been working together for a long period of time, and we've been working together for a long period of time, and we've been working together for a long period of time,[inaudible] and we've been working together for a long period of time, and we've been working together for a long period of time. Thank you. Thank you, everyone.

Speaker Change: Also, we expect to double the number of Xpeng-branded international cell source in the second half of 2024.

He Xiaopeng: Over the next couple of years, I anticipate our overseas business will maintain its strong growth momentum, leading global sales of mid- to high-end smart EVs and enhancing our reputation as a global tech brand.

Speaker Change: Over the next couple of years, I anticipate our overseas business will maintain its strong growth momentum, leading global sales of mid- to high-end smart EVs and enhancing our reputation as a global tech brand.

He Xiaopeng: 我們和大眾汽車集團的長期戰略合作在過去的一年裡面達到多個重要的, 这些合作范围我还在思考在今年的七月份, 小鵬與大眾汽車集團簽訂。電子、電氣架構、技術合作的聯合開發是將為大眾在中國生產的CNP, 字幕由Amara.org社区提供聯合開發行業領先, 河北新闻由 Amara.org 社区提供的字幕 2026年開始,基於CNP跟MEB, 國壇大眾區的電影都會大膽改變, 並且有雙方的深厚互信跟同理心。那么第一个, 搭载联合开发的电子内吸加热的车型会在24个月内量产我非常期待扩大我们跟大众的技术合作范围进一步加强双赢的战略我也相信中國的, 將會為我們和我們的合作夥伴在全球汽車行業的變革展開創造更大的戰略協作, We have achieved multiple significant milestones in our long-term strategic cooperation with Volkswagen over the past year.

Speaker Change: Our long-term strategic cooperation with the Volkswagen Group has reached several important milestones over the past year, and the scope of cooperation continues to expand. In July of this year, XPeng signed an agreement with the Volkswagen Group.

Speaker Change: The joint development agreement for electronic and electrical architecture technology cooperation is to jointly develop industry-leading electronic and electrical architectures for the CMP and MEB platforms produced by Volkswagen in China.

Speaker Change: Starting in 2026, domestically produced Volkswagen brand mobility services based on the CNP and MEB platforms will all be equipped with modified electrical architectures. With deep mutual trust and close cooperation between both parties, the first...

Speaker Change: The testing of the jointly developed electronic and electrical prices will be mass-produced within 24 months. I am very much looking forward to expanding our technical cooperation with Volkswagen and further strengthening our win-win strategic partnership. I also believe in China's speed.

Speaker Change: We have achieved multiple significant milestones in our long-term strategic cooperation with Volkswagen over the past year as we steadily expanded our cooperation scope.

He Xiaopeng: As we said, we expanded our cooperation scope. In July of this year, we signed a master agreement of EE Architecture Technical Collaboration with Volkswagen Group to jointly develop industry-leading EE architecture for all locally produced vehicles built on Volkswagen's China Main Platform or CMP and MEB platform. Beginning in 2026, all locally produced vehicles built on the CMP and the MEB platform will be equipped with this jointly developed EE architecture.

Speaker Change: In July of this year, we signed a master agreement of EE Architecture Technical Collaboration with Volkswagen Group to jointly develop industry-leading EE architecture for all locally produced vehicles built on Volkswagen's China-Made Platform, or CMP, and MEB platform, beginning in 2026.

Speaker Change: All locally produced vehicles built on the CMT and the MEB platform will be equipped with a jointly developed EE architecture.

He Xiaopeng: Thanks to deep mutual trust and collaboration between the two teams, the first model equipped with the jointly developed EE architecture is expected to go into mass production within 24 months.

Speaker Change: Thanks to the deep mutual trust and collaboration between the two teams, the first model equipped with the jointly developed EE architecture is expected to go into mass production within 24 months.

He Xiaopeng: I'm very much looking forward to expanding the scope of our technical cooperation and further strengthening our win-win strategic partnership I believe that the combination of China's speed and Xpeng's technology will create greater synergies and strategic value for us and our partners in this era of profound changes in the global automotive industry, 清明的書我認為小鵬沒有浪費每一條危機, 經過2022年9月份的氣球發布會以及過去兩年銷量的规划上的战略, 那小鵬其實綜合這位後面進入快速增長的順復, 字幕由Amara.org社区提供做好了冲锋, 随着小鹏的新的产品開啟我們雨傘運動, 二零二四年第三季度的總交付數量約為四萬億字幕由Amara.org社区提供, 收錄已拒約為零巴爾的朋友, 12.2%到20.8% I'm glad that we didn't let every crisis go to waste and that we learned from them, rising above each one.

Speaker Change: I'm very much looking forward to expanding the scope of our technical cooperation and further strengthening our win-win strategic partnership.

Speaker Change: I believe that the combination of China's speed and Xpeng's technology will create greater synergies and strategic value for us and our partners in this era of profound changes in the global automotive industry.

Speaker Change: Fortunately, I believe Xiaopeng has not wasted any crisis, having gone through the balloon press conference in September 2022 and the fluctuations in sales over the past two years.

Speaker Change: We are firmly advancing strategic changes in organizational planning to comprehensively enhance the overall competitiveness of XPeng Motors.

Speaker Change: This has fully prepared us for the rapid progress in the upcoming favorable period and for achieving steady and long-term development in the new era of AI.

Tim Hsiao: Because the experience of the third quarter volume guidance of 41 to 45K suggests that, September delivery could be back to previous peak.

Speaker Change: With the start of Xiaopeng's new product cycle, we expect the total deliveries in the third quarter of 2024 to be approximately 41,000.

Tim Hsiao: However, in light of relatively short life momentum of the new models, how could X-BEN45, sustainable sales momentum this time for the new models like M03 and the upcoming P7 plus?

Speaker Change: From 45,000 units, a month-on-month increase of 35.7% to 49%. The revenue is expected to be approximately RMB 9.1 to 9.8 billion, a month-on-month increase of 12.2% to 20.8%.

Speaker Change: yeah

Speaker Change: I'm glad that we didn't let every crisis go to waste and that we learned from them, rising above each one. After launching the G9 in September 2022 and experiencing self-fluctuations over the past few years, we have made significant strategic changes to our organization and planning.

Tim Hsiao: My first question is about the sales momentum of the new models like M03 and the upcoming, P7 plus?

He Xiaopeng: After launching the G9 in September 2022 and experiencing self-fluctuations over the past two years, we have made significant strategic changes to our organization and planning. This has greatly improved Xpeng's competitiveness and positioned us for rapid growth.

Brian Gu: 同時,我們所有的現在滾動的十二個月的產工銷計劃裡面,實際上都考慮了競爭,考慮了我們的車型的新車,以及我們的車的改款車,不同的車型之間的交替交疊過程中間的問題。所以在現在的這樣一個情況下,我們肯定比去年,比前年都會有信心多得多,所以我們將來期望在每個季度,按照我們的規劃,能夠做到更準確得多的整個的計劃,能夠實現整體行穩資源的邏輯。謝謝。所以,我希望在未來的幾個月裡面,我們能夠做到更多的進步,更多的進步。 Hey Tim, this is Brian.

Speaker Change: This has greatly improved Xpeng's competitiveness and positioned us for rapid growth. We're now fully prepared to navigate the next decade of AI with steady progress.

He Xiaopeng: We're now fully prepared to navigate the next decade of AI with steady progress.

He Xiaopeng: As we enter our major production launch cycle, we anticipate that our total delivery volume will range from 41,000 to 45,000 in the third quarter of 2024, representing a quarter over quarter increase of 35.7% to 49%. Furthermore, we project that our third quarter total revenue will fall within the range of 9.1 billion renminbi to 9.8 billion renminbi, representing a quarter over quarter increase of 12.2% to 20.8%.

Speaker Change: As we enter our major production launch cycle, we anticipate that our total delivery volume will range from 41,000 to 45,000 in the third quarter of 2024, representing a quarter-over-quarter increase of 35.7% to 49%.

Speaker Change: Furthermore, we project that our third quarter total revenue will fall within the range of 9.1 billion RMB to 9.8 billion RMB, representing a quarter-over-quarter increase of 12.2% to 20.8%.

Xiaopeng He: And we have been working together for a long period of time, and we have been working together for a long period of time, and we have been working together for a long period of time.

Brian Gu: Let me just add a couple points here.

He Xiaopeng: 谢谢大家,那么下面由我们的财务VPJames为大家介绍我们2024年第二季度的财务内容。 Thank you everyone.

Speaker Change: Thank you, everyone. Next, our VP of Finance, James, will present the financial report for the second quarter of 2024.

Unknown Executive: Thank you.

James Wu: With that, I'll now turn the call over to our VP of Finance, Mr. James Wu, to discuss our financial performance for the second quarter of 2024.

Speaker Change: Thank you everyone. With that, I'll now turn the call over to our VP of Finance, Mr. James Wu, to discuss our financial performance for the second quarter of 2024.

James Wu: Thank you, Xiaopeng.

James Wu: Now, let me provide a brief overview of our financial results for the second quarter of 2024. Our reference R&B only in my discussion today, unless otherwise stated. Our total revenues were 1.8.11 billion for the second quarter of 2024, an increase of 60.2% over year, and an increase of 23.9% quarter of a quarter. Revenues from vehicle sales were 6.82 billion for the second quarter of 2024, representing an increase of 54.1% over year, and an increase of 23% quarter of a quarter. The year-over-year and quarter-over-quarter increases were mainly attributable to higher deliveries. Revenues from services and others were 1.29 billion for the second quarter of 2024, representing an increase of 102.5% over year, and an increase of 28.8% quarter of a quarter.

james will: Thank you, Xiaopeng. Now let me provide a brief overview of our financial results for the second quarter of 2024.

James Wu: Now let me provide a brief overview of our financial results for the second quarter of 2020.

Speaker Change: I will reference RMB only in my discussion today, unless otherwise stated.

Speaker Change: Our total revenues were $8.11 billion for the second quarter of 2024, an increase of 60.2% year-over-year and an increase of 23.9% quarter-over-quarter.

Speaker Change: Revenues from vehicle sales were $6.82 billion for the second quarter of 2024, representing an increase of 54.1% year-over-year and an increase of 23% quarter-over-quarter.

Speaker Change: The year-over-year and quarter-over-quarter increases were mainly attributable to higher deliveries.

Speaker Change: Revenues from services and others were $1.29 billion for the second quarter of 2024, representing an increase of 102.5% year-over-year and an increase of 28.8% quarter-over-quarter.

James Wu: The year-over-year and quarter-over-quarter increases were mainly due to higher sales from maintenance services and increased revenues from technical R&B services related to the platform and software strategic technical collaboration with the Volkswagen Group. Gross margin was 14% for the second quarter of 2024, compared with negative 3.9% for the same period of 2023, and 12.9% for the first quarter of 2024. Vehicle margin was 6.4% for the second quarter of 2024, compared with negative 8.6% for the same period of 2023, and 5.5% for the first quarter of 2024. The year-over-year increase was primarily attributable to the cost reduction and the improvement in product mix.

Speaker Change: The year-over-year and quarter-over-quarter increases were mainly due to higher sales from maintenance services and increased revenues from technical R&D services related to the platform and software strategic technical collaboration with the Volkswagen Group.

Speaker Change: Gross margin was 14% for the second quarter of 2024 compared with negative 3.9% for the same period of 2023 and 12.9% for the first quarter of 2024.

Speaker Change: Vehicle margin was 6.4% for the second quarter of 2024, compared with negative 8.6% for the same period of 2023 and 5.5% for the first quarter of 2024.

Speaker Change: The year-over-year increase was primarily attributable to the cost reduction and the improvement in product mix.

James Wu: The quarter of a quarter increase was primarily attributable to the cost reduction. R&B expenses were 1.47 billion for the second quarter of 2024, representing an increase of 7.3% year over year, and an increase of 8.6% quarter of a quarter. The year-over-year and quarter-over-quarter increases were mainly due to higher expenses, related to the development of new vehicle models, as the company expanded its product portfolio to support future growth. SGNA expenses were 1.57 billion for the second quarter of 2024, representing an increase of 1.9% year over year, and an increase of 13.3% quarter over quarter. The year-over-year and quarter-over-quarter increases were mainly due to higher commission to the franchise stores and higher marketing and advertising expenses.

Speaker Change: The quarter over quarter increase was primarily attributable to the cost reduction.

Speaker Change: R&D expenses were $1.47 billion for the second quarter of 2024, representing an increase of 7.3% year-over-year and an increase of 8.6% quarter-over-quarter.

Speaker Change: The year-over-year and quarter-over-quarter increases were mainly due to higher expenses related to the development of new vehicle models as the company expanded its product portfolio to support future growth.

Speaker Change: SG&A expenses were $1.57 billion for the second quarter of 2024, representing an increase of 1.9% year-over-year and an increase of 13.3% quarter-over-quarter.

Speaker Change: The year-over-year and quarter-over-quarter increases were mainly due to higher commission to the franchise stores and higher marketing and advertising expenses.

James Wu: As a result of the foregoing, loss from operations was 1.61 billion for the second quarter of 2024, compared with 3.09 billion for the same period of 2023, and 1.65 billion for the first quarter of 2021.

Speaker Change: As a result of the foregoing, loss from operations was $1.61 billion for the second quarter of 2024, compared with $3.09 billion for the same period of 2023 and $1.65 billion for the first quarter of 2024.

Brian Gu: First of all, I think you're right.

Tim Hsiao: Wu, Xpeng; Hsiao, Xiaopeng; Hsiao, Xiaopeng and then feel free to follow up with your next question. So my first question is about the sales momentum of the new models because experts that the quarter-larum guidance of what you want to 425K suggest the September delivery could be back to previous peak. This together is the upcoming P7 plus because it really stands out a copy here and want to sell through a new high of around like 30,000.

Speaker Change: That loss was 1.28 billion for the second quarter of 2024, compared with 2.8 billion for the same period of 2023, and 1.37 billion for the first quarter of 2024.

Unknown Executive: As such, the company's results may be materially different from the views expressed today. Third information regarding these and other risks and uncertainties is included in the relevant public spellings of the company as filed with the US Securities and Exchange Commission.

James Wu: With that, I'll now turn the call over to our VP of Finance, Mr. James Wu, to discuss our financial performance for the second quarter of 2024. Thank you, Xiaopeng. Now, let me provide a brief overview of our financial results for the second quarter of 2024.

Speaker Change: As of June 30, 2024, our company had cash and cash equivalents, restricted cash, short-term investments and time deposits in total of $37.33 billion.

James Wu: I'll reference R&B only in my discussion today, unless otherwise...

Brian Gu: When we give the third quarter guidance, at high end of the guidance, we do assume that, we will hit likely the 20,000 per month sort of volume delivery, which is going to be the high point of our delivery record historically.

Unknown Executive: The company does not assume any obligation to update any full looking statements except as required under Article Law.

Speaker Change: 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 second quarter 2024 financial results.

James Wu: Our reference R&B only in my discussion today, unless otherwise stated. Our total revenues were 1.8.11 billion for the second quarter of 2024, an increase of 60.2% over year, and an increase of 23.9% quarter of a quarter. Revenues from vehicle sales were 6.82 billion for the second quarter of 2024, representing an increase of 54.1% over year, and an increase of 23% quarter of a quarter. The year over year and quarter of a quarter increases were mainly attributable to higher deliveries.

Brian Gu: To achieve that, there are actually a number of other catalysts I think you should probably be aware.

James Wu: Our total revenues were $8.11 billion for the second quarter of 2020, an increase of 60.2% year-over-year and an increase of 23.9% quarter-over-year.

Speaker Change: This concludes our prepared remarks. We will now open the call to questions.

James Wu: Revenues from vehicle sales were $6.82 billion for the second quarter of 2024, representing an increase of 54.1% year-over-year and an increase of 23% quarter-over-year.

James Wu: The year-over-year and quarter-over-quarter increases were mainly attributable to higher, Revenues from services and others were $1.29 billion for the second quarter of 2020, representing an increase of 102.5% year-over-year and an increase of 28.8% quarter-over-quarter.

James Wu: That loss was $1.28 billion for the second quarter of 2020, compared with $2.8 billion for the same period of 2023 and $1.37 billion for the first quarter of 2023.

James Wu: The year-over-year and quarter-over-quarter increases were mainly due to higher sales from maintenance services and increased revenues from technical R&D services, related to the platform and software strategic technical collaboration with the Volkswagen, The gross margin was 14% for the second quarter of 2020, compared with negative 3.9% for the same period of 2023 and 12.9% for the first quarter of, Vehicle margin was 6.4% for the second quarter of 2019, compared with negative 8.6% for the same period of 2023, and 5.5% for the first quarter of 2020.

James Wu: As of June 30, 2024, our company had cash and cash equivalents, restricted cash, short-term investments and time deposits in total of $37.33 billion.

James Wu: The year-over-year increase was primarily attributable to the cost reduction and the improvement in product quality.

James 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 second quarter 2024 financial results.

James Wu: The quarter-over-quarter increase was primarily attributable to the cost.

Speaker Change: Operator, please go ahead.

James Wu: This concludes our prepared remarks.

James Wu: R&D expenses were $1.47 billion for the second quarter of 2020, representing an increase of 7.3% year-over-year and an increase of 8.6% quarter-over-quarter. The year-over-year and quarter-over-quarter increases were mainly due to higher expenses related to the development of new vehicle models as the company expanded its product portfolio to support future growth.

James Wu: SG&A expenses were $1.57 billion for the second quarter of 2019, representing an increase of 1.9% year-over-year and an increase of 13.3% quarter-over-year. The year-over-year and quarter-over-quarter increases were mainly due to higher commission to the franchise stores and higher marketing and advertising.

Speaker Change: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced.

James Wu: As a result of the foregoing, loss from operations was $1.61 billion for the second quarter of 2020, compared with $3.09 billion for the same period of 2023 and $1.65 billion for the first quarter of 2020.

Operator: We will now open the call to questions.

Speaker Change: If you wish to cancel your request, please press star 2. If you are on a speakerphone, please pick up the handset to ask your question.

Operator: OPERATOR PLEASE GO AHEAD, Thank you.

Speaker Change #100: For the benefit of all participants on today's call, if you wish to ask your questions 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.

James Wu: Revenues from services and others were 1.29 billion for the second quarter of 2024, representing an increase of 102.5% over year, and an increase of 28.8% quarter of a quarter. The year over year and quarter of a quarter increases were mainly due to higher sales from maintenance services and increased revenues from technical R&B services related to the platform and software strategic technical collaboration with the Volkswagen Group. Gross margin was 14% for the second quarter of 2024, compared with negative 3.9% for the same period of 2023, and 12.9% for the first quarter of 2024.

Speaker Change #101: Your first question comes from Tim Hsiao with Morgan Stanley .

Speaker Change #102: Hello, management office. Thank you for accepting my question, and congratulations to 3G-DOO on a strong delivery growth in this new car cycle. I have two questions. The first question is about the new car sales.

Speaker Change #103: Because the guidance for XPeng Motors' third-tier seats includes September , due to the increase in exports from the M03 production line, the monthly deliveries can return to previous highs. Considering the subsequent support from the P7, the monthly deliveries for the fourth-tier seats might even challenge the 30,000 level.

Speaker Change #103: However, we see that as new and old platforms are being alternated, how does the management view this compared to the several models that were previously launched?

James Wu: Vehicle margin was 6.4% for the second quarter of 2024, compared with negative 8.6% for the same period of 2023, and 5.5% for the first quarter of 2024. The year over year increase was primarily attributable to the cost reduction and the improvement in product mix. The quarter of a quarter increase was primarily attributable to the cost reduction. R&B expenses were 1.47 billion for the second quarter of 2024, representing an increase of 7.3% year over year, and an increase of 8.6% quarter of a quarter.

Speaker Change #104: How can XPeng Motors consolidate the delivery volume of new cars in the future?

Speaker Change #104: To be able to maintain a growth momentum over a longer period of time and avoid a significant slowdown in sales after the honeymoon period of new cars, as happened last year, or fluctuations in sales due to promotions. This is my first question.

Operator: If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced.

Operator: If you wish to cancel your request, please press star 2.

Speaker Change #105: So my first question is about the sales momentum of the new models.

Speaker Change #106: Because Xpeng's third-quarter volume cadence of 41 to 45k suggests the September delivery could be back to previous peak. This, together with the upcoming P7 Plus, could easily send the company's year-end monthly sales to a new high of around like 30,000.

James Wu: The year over year and quarter of a quarter increases were mainly due to higher expenses, related to the development of new vehicle models, as the company expanded its product portfolio to support future growth. SGNA expenses were 1.57 billion for the second quarter of 2024, representing an increase of 1.9% year over year, and an increase of 13.3% quarter of a quarter. The year over year and quarter of a quarter increases were mainly due to higher commission to the franchise stores and higher marketing and advertising expenses.

Tim Hsiao: However, in light of route to be sure like momentum of the new models of the models launch last year, how could expect 425K sales momentum this time for the new models like M03 and the upcoming P7 plus. So that's my first question. Thank you.

Speaker Change #107: However, in light of relatively short life momentum of the new models, of the models launched last year, how could Xpeng fortify sustainable sales momentum this time for the new models like M03 and the upcoming P7 Plus? So that's my first question.

Xiaopeng He: This question is one of the most important questions for me. So, in my office, there is a letter written by the new model. So this letter gave Xiaopeng the next year.

Speaker Change #108: Okay, thank you.

Speaker Change #109: One of the main issues for myself, so in my office there is a piece of calligraphy with four characters that says 'Steady Progress, Long Journey'.

Speaker Change #110: So these four words are a requirement for Xiaopeng's willpower starting from the second half of this year.

Xiaopeng He: So, we want to create a new source of freedom in a changing world environment.

Speaker Change #111: Therefore, achieving steady progress and self-sufficiency in a rapidly changing market environment is very difficult. To be honest, from a certain perspective, I believe that the impact next year, such as the impact from gasoline cars, will be even more severe than this year.

Xiaopeng He: It is very difficult to say the truth. I think that in the early years of my career, for example, I have been in the field for a long time. In this field, we have done a lot of things, including the management of the industry. Including the development of the industry. As a matter of fact, in the future, we will not be able to solve the problems of the industry. We will not be able to solve the problems of the industry. We are not able to solve the problems of the industry.

Xiaopeng He: I will now turn the call over to our co-founder, Chairman and CEO, Mr. Hsiao Peng, please go ahead.

Unknown Executive: Wu, Xpeng Hsiao, Xiaopeng Hsiao, Xiaopeng and then feel free to follow up with your next question.

Speaker Change #111: number segical nema woman on sort of face of search po go k yan a guani the bmar for go ty go in the kin haho bogo on the recent time

Speaker Change #111: Reasonable demands

Speaker Change #111: Both the appearance and the temperament have improved.

Valeria: To the very high-level requirements of production data, we have monthly OTA (Over-the-Air) updates, continuous changes over short periods of time, micro-updates based on customer experience, and annual model updates.

Valeria: as well as our entire marketing system and channel system

Speaker Change #113: for my exam to that way youwishing when't see anyevent

Speaker Change #114: should i you ses

Speaker Change #115: not ton

Speaker Change #115: In our current rolling 12-month residual work efficiency plan, we have actually considered competition, our new car models, and the issues during the transition between different car models, including new and facelifted cars. So, in the current situation...

Speaker Change #115: We are definitely much more confident than last year and the year before. Therefore, we hope that in the future, each quarter, we can follow our plan more accurately and achieve the overall logic of our news resources.

Speaker Change #116: Thank you. Thank you so much for the question. Now, this is actually one of the biggest challenges facing ourselves as well. For Xpeng, I mean, for myself, in my office, I actually have these four words, Xinwen, Zhiyuan, hanging up on the wall of my office, meaning that we are aiming for steady growth going forward. Now, it's honestly easiest have been done, and it's very challenging to do that and achieve those kind of goals in such a competitive environment. Going into next year, we actually expect the market competition to be even more brutal than what we have seen recently. And we have done a lot when it comes to the transformation of our organization, for example, the management of the supply chain, adopting the platform-based manufacturing, and also,

Unknown Executive: So my first question is about the sales momentum of the new models because experts that the quarter-larum guidance of what you want to 425K suggest the September delivery could be back to previous peak. This together is the upcoming P7 plus because it really stands out a copy here and want to sell through a new high of around like 30,000.

Speaker Change #116: enhancing the target and aims for our manufacturing quality for M03 and P7 Plus. And also when it comes to the monthly OTA and the reform of our customer experience regarding new models and basic versions and everything. We also did an overhaul on our sales and marketing system. All of those are aiming to achieve a very long term steady growth going forward. When we give out guidance and do preparation for the future development and sales, we are doing not only the rolling 12-month forecast, taking into consideration the future competitive landscape. We also take into consideration the iteration of our new models and basic versions and how to accommodate them in the competitive environment. So, relatively,

Unknown Executive: However, in light of route to be sure like momentum of the new models of the models launch last year, how could expect 425K sales momentum this time for the new models like M03 and the upcoming P7 plus. So that's my first question. Thank you.

Unknown Executive: This question is one of the most important questions for me. So in my office, there is a letter written by the new model. So this letter gave Xiaopeng the next year.

Speaker Change #116: to the year before and two years beforehand right now we are definitely much more confident about our quarterly forecast and how to read those targets and how to really implement our plans in order achieve the maximum outcomees thank you

Unknown Executive: Thank you.

Brian Gu: One is that we are very encouraged by the Monas debut and also the reception.

Brian Gu: Hey Tim, this is Brian. Let me just add a couple points here. First of all, I think you're right. When we give the third quarter guidance at the high end of the guidance, we do assume that we will hit like the 20,000 per month volume delivery, which is going to be the high point of our delivery record historically. To achieve that, actually, there are actually a number of other catalysts I think you should probably be aware. One is that we are very encouraged by the Mona's debut and also the reception. We think given what we see in terms of the indicative order momentum, as well as the preparation that Xiaopeng just mentioned, we're very confident that Mona's delivery in the first month starting in September will likely achieve the fastest delivery record for all EV models made by EV startups.

Operator: If you're on a speakerphone, please pick up the handset to ask your question.

Speaker Change #116: Hey Tim, this is Brian . Let me just add a couple points here. First of all, I think you're right, when we give the third quarter guidance, at the high end of the guidance, we do assume that we will hit likely the 20,000 per month sort of volume delivery, which is going to be the high point of our delivery record historically.

Speaker Change #116: To achieve that, actually, there are a number of other catalysts I think you should probably be aware of. One is that we are very encouraged by the Monas debut and also the reception. We think, given what we see in terms of the indicative order momentum, as well as the preparation that Xiaopeng just mentioned, we're very confident that Monas delivery in the first month, starting in September , will likely achieve the fastest delivery record for all EV models made by EV startups. I think we will hopefully set the record for Monas.

Xiaopeng He: [inaudible] Hsiao Peng,[inaudible][inaudible] of innovation of innovation of innovation[inaudible] I believe that AI will start a new generation of AI systems, and the change of AI systems will lead to the more powerful development of the system.

Brian Gu: Qiaopeng, Qiaopeng, Unknown Executive, Tim Hsiao, Bin Wang, Xpeng, Qiaopeng, Unknown Executive, Tim Hsiao, Bin Wang, Xpeng,[inaudible] Hey Tim, this is Brian.

Operator: For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English.

Operator: For the sake of clarity and order, please ask one question at a time.

Brian Gu: We think given what we see in terms of the indicative order momentum, as well as the preparation that Xiaopeng just mentioned, we're very confident that Monas delivery in the first month starting in September will likely achieve the fastest delivery record for all EV models made by EV startups.

Brian Gu: I think we will hopefully set the record for Mona. Secondly, I think I want to also emphasize that the delivery number includes also significant growth of our overseas delivery volume as well. As you can see, the overseas delivery volume in the second quarter exceeded 10%. We anticipate the delivery from overseas will probably be above 15% in the third quarter, which also diversifies our overall order intake. That gives us further confidence in our delivery objectives that we set for third quarter and the fourth quarter will be achievable.

Brian Gu: I think we will hopefully set the record for Mona.

Brian Gu: Secondly, I think I want to also emphasize that the delivery number includes also significant growth of our overseas delivery volume as well.

Speaker Change #116: Secondly, I think I want to also emphasize that the delivery number includes also significant growth of our overseas delivery volume as well. As you can see that the overseas delivery volume in the second quarter exceeded 10%. We anticipate the delivery from overseas will probably be above 15% in the third quarter, which also diversifies our overall order intake. That gives us further confidence that the delivery objective that we set for third quarter and as well as the fourth quarter will be achievable.

Brian Gu: As you can see, the overseas delivery volume in the second quarter exceeded 10%. We anticipate the delivery from overseas will probably be above 15% in the third quarter, which also diversifies our overall order intake. That give us further confidence that the delivery objective that we set for third quarter, as well as the fourth quarter, will be achievable.

Brian Gu: I see.

Speaker Change #116: i

Speaker Change #117: by shees up agis here to be driving from the p would that carego went to very cha hijust shop ing she there

Brian Gu: Thank you, Mr. Xiaopeng, and thank you, Mr. Brian.

Tim Hsiao: My second question is about, the price.

Speaker Change #118: Just now, the Deputy General Manager mentioned the large-scale investment in AI specialized projects, large models, and frameworks, which has allowed the group to showcase outstanding achievements in framework capabilities and nationwide full-scale deployment over the past period.

Tim Hsiao: As Mr. Xiaopeng just mentioned, the large-scale investment of EV models and price in AI has shown a very bright result in the past period of time for the company's business.

Tim Hsiao: But if we look at it from the perspective of commercial returns, when will the management rights issue become a threshold for Xiaopeng EV's ability to be listed as a company, and then be able to further accelerate the upgrade of Xiaopeng EV's new car sales?

Speaker Change #119: But if we look at it from the perspective of commercial returns, when will the issue of management rights and the upper limit of XPeng's self-driving capabilities become a threshold for the industry?

Tim Hsiao: In addition, will there be any indicators that can be observed, such as the customer, users' journey penetration rate, or the point-to-point realization mentioned by Mr. Xiaopeng?

Speaker Change #120: Then further accelerate the conversion into an increase in new car sales for XPeng Motors. Additionally, are there any indicators that can be observed, such as the mileage penetration rate of Yuehuo users, or the point-to-point implementation mentioned by Mr. XPeng?

Tim Hsiao: My second question is about the XMGP or high-level add-ups.

Operator: Management will respond and then feel free to follow up with your next question.

Brian Gu: That's a good question as well; the XNGP were high-level add-ins. The constant investment in NTM large models has the further enhanced expense of systematic authorities and AI smart driving technology, and much faster than nationwide throughout of XNGP.

Speaker Change #121: My second question is about the ex-NGP or high-level adepts.

Tim Hsiao: Your first question comes from Tim Hsiao with Morgan Stanley.

Tim Hsiao: The constant investment in, NTN large models has further enhanced the experience of systematic capabilities in AI smart driving technology, and much faster than national wide rollout of XMGP.

Speaker Change #122: The constant investment in NTN large models has further enhanced the experience of systematic capabilities in AI smart driving technology, and much faster than the national wide rollout of XMGP.

Brian Gu: However, when it comes to the return of the investment, we expect such a massive and constant investment could transfer it into a real barrier to peer competitors and transfer it into a meaningful off-site to expense new car sales.

Tim Hsiao: However, when it comes to return of investment, when do you expect such a massive and constant investment could translate into a real barrier to peer competitors, and translate into a meaningful upside to XMGP's new car sales?

Speaker Change #123: However, when it comes to return of investment,

Speaker Change #124: When do you expect such a massive and constant investment could translate into a real barrier to peer competitors and translate into a meaningful upside to Xpeng's new car sales?

Tim Hsiao: Will there be any side posts or metrics we can monitor in the following quarters?

Tim Hsiao: 呃,管理層您好,謝謝接受我的提問,那也恭喜三季度在這個新車週期加持下一個強勁的交通, 我有兩個問題,第一個問題是有關於這個新車銷售因為小鵬汽車這個三級柱的指引含9月份的由於這個M03的供限以及出口的增量單月的交付能夠回到前高那也考慮到後續這個P7加的一個加持,那四級柱的這個單月甚至有可能挑戰但是我们看到就是新老平台交替的同时管理司怎么去看待和过去上市的几款车型相比小鹏汽车如何巩固接下来新车型交付量能够有维持一个较长时间的一个增长的势头避免像去年可能新车在这个蜜月期过后销售会有一个比较明显的放缓或者是随着促销呈现卖中式的一个波动这是我的第一个问题, So my first question is about the sales momentum of the new model.

Unknown Executive: Would there be any sideposts or metric weekend monitors in the following quarters? That's my second question. Thank you.

Tim Hsiao: So that's my second question.

Speaker Change #125: Will there be any side posts or matric we can monitor in the following quarters? So that's my second question. Thank you.

Brian Gu: 在5.2版本推送之後,我們可以看到一些非常好的數據的變化。第一個就是說,所有的用戶的使用滲透率,包括還有里程滲透率等核心指標上都有最少20%的顯著的提升,這是第一個。第二個,我們以前有一部分的門店是沒有辦法在城市裡面試駕XNGP的,現在我們會到達所有的門店都可以去試駕,更理解我們的差異化優勢。從我角度來判斷,今天中國端到端的自動駕駛落地商只有小鴻一家,其他的都還在宣稱後面會支持。實際上,剛剛我所說的,這裡面有兩個的挑戰。第一個挑戰剛才講的是,端到端提高了上限,但是如何守住下限,這個是需要很多的工作量。它導致了小鵬整個的音法都在做相當大的調整,要去確保下限有足夠的高。第二個,實際上它會對於原來比如說做得不好的,比如說舉例對於各個地方你都要去測試,現在端到端的話,你可以從趨勢來看,可以讓每個地方的開車都像當地的老司機,就像當地老司機去開車。但它也會帶來挑戰就是原來的Rule-based加AA小波形的邏輯,在部分區域你會做得更好。所以今天在部分區域的能力甚至會有一定的回帶,但是從趨勢來看,我還是很堅信今年是轉折。到明年的某個時候,小鵬的自動輔助駕駛,我覺得會比現在大概有數倍到十幾倍的提高的時候,我覺得有一個版本,我覺得那個時候會帶來商業化的我覺得巨大的銷量的變化。同時結合我們在今年年底PC家首發的全新一代硬件平台的成本競爭優勢,就讓更多的客戶用可支付的成本去體現到更高階的智能化,這是我相信在明年會帶來一個巨大的轉折。謝謝。這意味著,從P7+,這項技術性的減少,使我們能夠提供高端的8s駕駛能力給更多的消費者,這可以證明我們的業界領先的8s駕駛能力。謝謝。非常感謝您的詳細分析,我們期待您在下個星期的訪問中進行更多的訪問。您的下一個問題是來自銀行美國銀行的孟順利。小鵬總還有各位領導,大家晚上好,那我這邊也是兩個問題,那第一個問題是關於毛利率跟技術降本的問題,那就是因為這個季度其實毛利率已經有明顯的改善,那想了解一下就是小鵬總怎麼看就是我們未來在技術降本方面還有哪一些領域是比較有空間可以去降的, 因為我們現在包括跟大眾集團的聯合採購,然後包括我們這個風雷達之後的這個車型也會逐步的就是減少,所以說想了解一下就是您覺得未來我們公司或者行業技術降本比較大的一個機會可能會在哪一項,順便問一個短一點的問題就是咱們三季度,因為考量到正面因素是這個出口占比提高,然後這個銷量也有提升, 另外也有這個EA的這個收入也進來了,所以但是分別來講就是摩納的第一個月交付,所以我看我們三季度的一個毛利的趨勢,這是我第一個問題。對,這個問題謝謝您啊,這個我先答一部分啊,這個在過去的時間裡面,小鵬是一個比較偏科的,以技術為角度,那麼逐步逐步技術變成了加上到產品,那麼從今年的下半年開始,我會把商業能力啊作為小鵬的一個重點。 So Ming, on your second question regarding the margin trend, instead of being specific on Q3, I'll just speak generally about the second half.

Speaker Change #126: Yes, after the 5.2 version update, we can see some very good changes in the data. The first one is that...

Xiaopeng He: From the bottom of the line of use of the change, and from the start to the end of the business.

Brian Gu: Let me just add a couple points here. First of all, I think you're right. When we give the third quarter guidance at the high end of the guidance, we do assume that we will hit like the 20,000 per month volume delivery, which is going to be the high point of our delivery record historically. To achieve that, actually, there are actually a number of other catalysts, I think you should probably be aware.

Xiaopeng He: [inaudible] Looking ahead to the upcoming years, I believe that the impact of AI on vehicles will be even more significant than that of electrification for automotive industry.

Xiaopeng He: AI will fundamentally change to driving and riding experience, and will reshape the business models in the auto and mobility sector.

Speaker Change #127: The usage penetration rate of all users, including key metrics such as mileage penetration rate, has seen a significant increase of at least 20%. That's the first point. Secondly, some of our stores previously couldn't design XNGP within the city.

Speaker Change #128: So now we will arrive at all the stores, where you can test drive and better understand the advantages of our consortium.

Brian Gu: One is that we are very encouraged by the Mona's debut and also the reception. We think given what we see in terms of the indicative order momentum, as well as the preparation that Xiaopeng just mentioned, we're very confident that Mona's delivery in the first month starting in September will likely achieve the fastest delivery record for all EV models made by EV startups. I think we will hopefully set the record for Mona.

Speaker Change #129: So today, from my perspective, the only company in China that has end-to-end autonomous driving cars on the road is Xiaohong. All the others are still claiming that they will support it in the future.

Speaker Change #129: Actually, in what I just mentioned, there are two challenges. The first challenge was just discussed.

Unknown Executive: This is a very high demand.

Unknown Executive: But how do we get down to this? This needs a lot of work. This is a very high demand.

Speaker Change #129: This end-to-end has raised the ceiling.

Speaker Change #129: However, maintaining the dive requires a lot of work.

Speaker Change #129: He caused the children to work on the entire phonetics.

Brian Gu: Secondly, I think I want to also emphasize that the delivery number includes also significant growth of our overseas delivery volume as well. As you can see, the overseas delivery volume in the second quarter exceeded 10%. We anticipate the delivery from overseas will probably be above 15% in the third quarter, which also diversifies our overall order intake. That give us further confidence in our delivery objectives that we set for third quarter and the fourth quarter will be achievable.

Speaker Change #129: Make significant adjustments to ensure the minimum standard is sufficiently high. Secondly, it will actually address the original issues, for example, if something was not done well. For instance, you need to test in various locations. If it's brief, you can...

Speaker Change #130: From the trend, it can make driving in every place like a local experienced driver, just like a local experienced driver driving. But it will also bring challenges, as the original Rubix plus AA small wave star logic will perform better in some areas.

Speaker Change #130: So today, in some areas, there might even be some regression in capabilities. However, looking at the trend, I still firmly believe this year is a turning point leading into next year.

Speaker Change #131: At some point, I think Xiaopeng's autonomous driving assistance will improve by several times to more than ten times compared to now. I think there will be a version.

Speaker Change #131: I think that time will bring commercialization.

Speaker Change #131: I believe that the significant change in sales volume, combined with the cost-competitive advantage of our new generation hardware platform launching at the end of this year, will allow more customers to experience higher levels of intelligence at an affordable cost. This, I believe, will bring about a significant turning point next year.

Tim Hsiao: Because Xpeng's third quarter volume guidance of 41 to 45K suggests the September delivery could be back to previous peak.

Tim Hsiao: This together with the upcoming P7 Plus could easily send the company's year-end monthly sales to a new high of around like 30,000.

Speaker Change #131: is

Speaker Change #132: Thank you for your question. Since the rollout of our version 5.0, we've collected a lot of very exciting and encouraging data, including two aspects. The first one is the option rate and also penetration rate of using our high-level ADAS capabilities. At least 20% increase from before the rollout of 5.2. And the second thing is that we used to encounter challenges in test driving in some stores, in some areas and regions. And right now, across all of our dealershops, you can freely use the XNGP. And this is made available to all of our dealershops right now, which will allow our consumers to have first-hand experience of how capable our ADAS capability is. And right now, among all China,

Unknown Executive: That's a good question as well, the XNGP were high-level add-ins. The constant investment in NTM large models has the further enhanced expense of systematic authorities and AI smart driving technology, and much faster than nationwide throughout of XNGP. However, when it comes to the return of the investment, we expect such a massive and constant investment could transfer it into a real barrier to peer competitors and transfer it into a meaningful off-site to expense new car sales.

Xiaopeng He: The eventment of the end to end and AI models is going to break through the limitations of current ADAS technologies, and their iterations will happen much faster than traditional coding methods.

Unknown Executive: Would there be any sideposts or metric weekend monitors in the following quarters? That's my second question.

Tim Hsiao: However, in light of relatively short life momentum of the new models, of the models launched last year, how could Xpeng fortify sustainable sales momentum?

Tim Hsiao: half of the new models like the M03 and the upcoming P7.

Speaker Change #132: these easy makers, Xpeng is the only actual end-to-end AI models implementers. Although, you know, other competitors, or peers of ours also claim that they're moving towards that end goal. But we do face multiple challenges. The first one is that as we increase the upper limit of our ADAS capabilities with the adoption of the end-to-end AI models, we also need to secure a solid bottom limit of that capability as well. That requires a lot of changes and reforms, which we have implemented in our technology and architecture. And the other challenge is that, you know, previously, we might not be able to roll out our capability across different locations around the country. And right now, even though we are able to do it and also provide

Tim Hsiao: So that's my first.

Speaker Change #132: human-like driving experience for multiple locations. And in a wider range of areas, we do experience some setbacks in a small range of cities or routes where route-based and also small model kind of technological routes may produce a better outcome for now. But we believe the trend is that, first of all, this year, it's definitely a turning point for adopting these end-to-end AI models to implement, and also to enhance our ADAS driving capability. And going forward in the near future, we believe that when we are able to upgrade to a more comprehensive version, we can expect to see a great outcome when it comes to commercialization. And that means that starting from P7.5.

Unknown Executive: Thank you. [inaudible] Thanks a lot for sharing those details and looking forward to the manifesto to take off throughout the rest of the week.

Speaker Change #133: Yuan Plus, which is really a great outcome of the technologically driven cost reduction on this platform using this technological architecture, will allow us to offer affordable high-end ADAS capability to a wider range of consumers, which can improve our industry-leading ADAS capability. Thank you.

Unknown Executive: Thanks a lot for sharing those details and looking forward to the manifestos take off throughout the rest of the week. Thank you.

Speaker Change #134: Great. Thanks a lot for sharing those details. I'm looking forward to the medical show's kickoff throughout the rest of the year. Thank you.

Ling Sun Lee: Your next question comes from Ling Sun Lee with Bank of America. Hello, Mr. Hong. Hello.

Speaker Change #135: Your next question comes from Ming Sun Li with Bank of America.

Speaker Change #136: Mr. Xiaopeng and all the leaders, good evening. I have two questions. The first question is about the gross margin and cost reduction through technology. This quarter, the gross margin has already shown significant improvement. I would like to understand Mr. Xiaopeng's view on which areas have more potential for cost reduction through technology in the future. Considering our current joint procurement with the Volkswagen Group and the gradual reduction in the number of models equipped with radar, where do you think our company or the industry has the greatest opportunities for cost reduction through technology? Additionally, I have a simpler question.

Speaker Change #137: Because considering the positive factors, the proportion of exports has increased and sales have also improved.

Speaker Change #138: My first question is related to your cost reduction strategy, so right now you have joined procurement with Volkswagen, you will reduce the usage of LiDAR in the future, so in what area do you think you can achieve more cost reduction going forward? And a shorter question related to your third quarter cost margin trend.

Speaker Change #139: So positive factors include more exports and also volume sales grow a lot. But the negative factor is more sales from Mona. So how do we expect the trend of the so-called growth margin? Thank you.

Speaker Change #140: Yes, thank you for this question. I will answer part of it first. In the past, Xiaopeng has been somewhat biased, focusing more on technology.

He Xiaopeng: 好,謝謝,這個問題是我們, 對自己的最主要的問題之一,所以在我的辦公室裏面有一幅字,寫的四個字叫《行穩自圓》。所以這四個字是給小鵬從今年的下半年開始對自己的意志的要求, 所以我们要想做到新闻资源在一个激烈变化的时代說實話某種角度我認為在明年的, 包括汽油车的冲击比今年还要厉害在这里面我们做了非常多的事情,包括了供电的管理的变化。包括了整體的顧念的平台化包括了我们的一些生意策划, 這樣的要求法无论什么了, 我們都是提高了到非常高級的, 我們對於每個月的OTA,對於每... 一小段時間的, 不斷變化的按照客戶體驗的微型的改款以及到了每年的年關各個營銷體系渠道的, 實際上都在為這個行文資源那同時, 这个我们所有的这个现在滚动的12个月的弹弓枪计划里面上都考虑考虑到我们的车型的新车以及我们的车的改款, 不同的車型之間的交替交疊過程中間的問題所以在現在的這樣一個情況下, 我們肯定比去年、比前年都會有信心多得多所以我們將來期望在每一個階段按照我們的規劃能夠做到, 更准确得多的整个计划能够实现, Thank you.

Speaker Change #141: Step by step, the technology was added to the product.

Speaker Change #142: Starting from the second half of this year, I will make business capabilities a focus for Xiaopeng.

Speaker Change #142: So, what you just mentioned about cost reduction is a part of business. Today, what everyone sees includes our technology, cost reduction design, cost reduction supply chain, and the overall operational improvement resulting from our cooperation with the public.

Speaker Change #142: Including cost reduction improvements, in the second half of this year and even throughout next year, everyone will see continuous progress. With each quarter, we will deliver. I expect that in the future, XPeng will have a better gross margin compared to most companies in the market.

Speaker Change #143: This is what I want to talk about from a trend perspective. Okay, let me first translate the first paragraph, thank you.

He Xiaopeng: Thank you so much for the question.

Speaker Change #144: All right, thank you for your question. Now, Xpeng used to prioritize technology without really considering the development of other aspects, which are also very crucial for our company's success. Now, starting from the second half of this year, we're going to focus more on our commercialization capability. Right now, we have both technology and our products that are doing really well. But starting from the second half of this year, we're going to see more translation of our reform and restructuring of the whole business model in order to meet the market demands and also the market competition as well. Cost reduction is a big aspect of it. On top of that, we also have cost restrictions that are driven by our technology, by our supply chain reform, and also by our strategic partnership with Volkswagen as well. Thank you.

He Xiaopeng: Now, this is actually one of the biggest challenges facing ourselves as well.

He Xiaopeng: For Xpeng, I mean, for myself in my office, I actually have these four words, Xinwen, Zhiyuan, hanging up on the wall of my office, meaning that we are aiming for steady growth going forward.

He Xiaopeng: Now, it's honestly easiest have been done.

He Xiaopeng: And it's very challenging to do that and achieve those kind of goals in such a competitive environment.

He Xiaopeng: Going into next year, we actually expect the market competition to be even more brutal than what we have seen recently.

He Xiaopeng: And we have done a lot when it comes to the transformation of our organization, for example, the management of the supply chain, adopting platform-based manufacturing, and also enhancing the target and aims for our manufacturing quality for M03 and P7+.

He Xiaopeng: And also when it comes to the monthly OTA and the reform of our customer experience regarding new models and basic versions and everything.

He Xiaopeng: We also did an overhaul on our sales and marketing system.

He Xiaopeng: All of those are aiming to achieve a very long-term steady growth going forward.

Unknown Executive: Thank you.

He Xiaopeng: When we give out guidance and do preparation for the future development and sales, we are doing not only the rolling 12-month forecast, taking into consideration the future competitive landscape.

He Xiaopeng: We also take into consideration the iteration of our new models and basic versions and how to accommodate them in the competitive environment.

Ling Xun Li: Your next question comes from Ling Xun Li with Bank of America. Hello, Mr. Hong and Mr. Li, good evening. I have two questions.

Speaker Change #144: So in the second half of this year and also going to 2025 and 2036, you can expect to actually see a lot of good news when it comes to our quarter over quarter improvement as well. So overall, at the end of the day, we are confident that Xpeng can become a company that has a more superior GP margin than the rest of its peers. Thank you.

He Xiaopeng: So relative to the year before and two years beforehand, right now, we are definitely much more confident about our quarterly forecast and how to meet those targets and how to really implement our plans in order to achieve the maximum outcome.

Brian Gu: The first question is related to the management of the management of the Ministry of Finance and the Ministry of Finance and the Ministry of Finance. [inaudible] and the Ministry of Finance and the Ministry of Finance[inaudible] and the Ministry of Finance and the Ministry of Finance and[inaudible] So, main on your second question regarding the margin trend, instead of being specific on Q3, I'll just speak generally about the second half. So, you're right, there are a couple of things that are going to take place in the second half.

He Xiaopeng: Thank you.

Brian Gu: Hey, Tim, this is Brian.

Brian Gu: Let me just add a couple points here.

Unknown Executive: So, main on your second question regarding the margin trend, instead of being specific on Q3, I'll just speak generally about the second half. So, you're right; there are a couple of things that are going to take place in the second half. As you mentioned, the export volume and percentages are going to likely go up. Starting Q3, most likely we will start to recognize some revenues from the EAA collaboration with Volkswagen. In the meantime, we also will see significant growth in terms of volume, which will help to signal the manufacturing DNA allocations, as well as improving manufacturing cost.

Speaker Change #145: So, Ming, on your second question regarding the margin trend, instead of being specific on Q3, I'll just...

Brian Gu: So you're right, there are a couple of things that's going to take place in the second half.

Speaker Change #145: Speak generally about the second half

Brian Gu: As you mentioned, the export volume and percentage is going to likely go up.

Speaker Change #145: So you're right, there are a couple of things that's going to take place in the second half.

Speaker Change #146: As you mentioned, the export volume and percentage is going to likely go up.

Brian Gu: You know, starting Q3, most likely we will start to recognize some revenues from the, EAA collaboration with Volkswagen.

Brian Gu: First of all, I think, you know, you're right, when we give the third quarter guidance, at high end of the guidance, we do assume that we will hit likely the 20,000 per month sort of volume delivery, which is going to be the high point of our delivery record historically.

Speaker Change #146: You know, starting Q3, most likely we will start to recognize

Brian Gu: In the meantime, we also will see significant growth in terms of volume, which will help, to thin out the manufacturing DNA allocations as well as improving manufacturing costs.

Speaker Change #146: Some revenues from the EAEA.

Speaker Change #146: collaboration with Volkswagen. In the meantime we also will see significant growth in terms of volume which will help

Speaker Change #146: to thin out the manufacturing DNA allocations as well as improving manufacturing costs.

Unknown Executive: On the other side, as you mentioned, there's incremental volume coming from Mona, which we expect to be a high-volume model. And the other thing in Q4, as we introduce P7 Plus, which will be the first model that come out of our new platform to achieve the cost reduction that we have communicated earlier. We do expect the P7 plus margin to be very healthy into the double digits. So, all in all, I would say from a trend perspective, we expect the overall margin to be stable and maintained at mid to low teens, as you see in the second quarter.

Brian Gu: On the other side, as you mentioned, there's incremental volume coming from MONA, which, we expect to be a high-volume model.

Speaker Change #146: On the other side, as you mentioned, there's incremental volume coming from MONA, which we expect to be a high volume model. And the other thing, into Q4, as we introduce P7+, which will be the first model that comes out of our new platform to achieve

Brian Gu: And the other thing, into Q4, as we introduce P7+, which will be the first model that comes, out of our new platform to achieve the cost reduction that we have communicated earlier, we do expect the P7-plus margin to be very healthy into the double digits.

Speaker Change #146: The cost reduction that we have communicated earlier, we do expect the P7 plus margin to be very healthy into the double digits.

Brian Gu: So all in all, I'd say, from a trend perspective, we expect the overall margin to be stable, and maintained at mid-to-low teens, as you see in the second quarter.

Speaker Change #146: So, all in all, I'd say from a trend perspective, we expect the overall margin to be stable and maintained at mid to low teens, as you see in the second quarter.

Brian Gu: Thanks.

Unknown Executive: Thanks. The P7 plus, the P7 plus, the P7 plus, the first model to use the PO3 region, solution, and the EAA will be the progress of the EAA to EAA to the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, the P7 plus, Gu, Xinchi Yin.

Speaker Change #147: Thank you, I have another question here. Since the first product for GGI is purely vision-based, I would like to understand more about what purely vision-based means.

Speaker Change #148: publicly do not now this t data i don't what we got now when it we do that ext you can some body that in how

Speaker Change #149: i suppose you you do electr fuue to f better give us to doing and go back back because you going two days ago are only about young ci extern jeps

Brian Gu: So the P7+, P7-plus will be your first model to use the pure virgin solution.

Speaker Change #150: So the P7 Plus will be your first model to use the Pure Vision solution. So in your view, what would be the progress for you to improve your capability in autonomous driving through this Pure Vision technology?

Brian Gu: So in your view, what would be the progress for you to improve your capability in autonomous, I'd like to add that based on the reduction of sensors and high-definition maps, we can not only achieve a certain level of cost reduction, but also our new model will bring a new and more powerful overall autonomous driving capability to the next generation of pure virgin.

Speaker Change #150: it

Speaker Change #151: Yes, because I will share more details at the upcoming brand launch event and on October 24th, so for more specific information, please stay tuned for those times.

Speaker Change #152: However, I particularly want to add that we have reduced the sensors and reduced the high-definition maps.

Speaker Change #152: On the basis of this, not only can we achieve a certain degree of significant weight reduction, but our new model at the end of the spectrum will also...

Speaker Change #152: The next generation of pure vision capabilities will bring newer and more powerful overall autonomous driving capabilities. We will share more specifics in the upcoming press conference. Thank you.

Brian Gu: More details are to be announced at the next conference.

Brian Gu: 给大家分享吧,谢谢, 如果大家有兴趣的话,请继续留意我们将在未来的活动中提供更多详细的资讯。谢谢,那这不是我的问题,谢谢。各位领导好,我的问题更关注于这个执行的细节啊。就是如果假设我们实现了一个四万五的三十度直营的话,也就是说我们九月份实行两万台,那么这个两万台分产品的结构会是怎么样的?

Unknown Executive: Well, actually, regarding your question, I would say that board details to be disclosed on the future product launch conferences and also on our 1024 at Tech-Date. To stay tuned. But what I can say for now is that, first of all, without relying on centers, I find a finishing map that already in itself allowed itself allow us to reduce our cost significantly. And on the other hand, with the adoption of the N2NAI model using the decision-based technological approach, allow us to greatly enhance our A-Dust capability as well.

Brian Gu: To achieve that, actually, there are actually a number of other catalysts, I think you should, you know, probably be aware.

Brian Gu: One is that, you know, we are very encouraged by the Monas debut and also the reception.

Speaker Change #153: Well, actually, regarding your question, I would say that more details to be disclosed on the future product launch conferences and also on our 1024 Tech Day, please stay tuned. But what I can say for now is that, first of all, without relying on sensors and high definition map, that already in itself, in and of itself, allow us to reduce our cost significantly. And on the other hand, with the adoption of the end-to-end AI models, using the vision-based technological approach allow us to greatly enhance our ADAS capability as well. Again, if you are interested, please stay tuned for more details in our future events.

Brian Gu: As you mentioned, the export volume and percentages are going to likely go up. Starting Q3, most likely we will start to recognize some revenues from the EAA collaboration with Volkswagen. In the meantime, we also will see significant growth in terms of volume, which will help to signal the manufacturing DNA allocations as well as improving manufacturing cost. On the other side, as you mentioned, there's incremental volume coming from Mona, which we expect to be a high volume model.

Unknown Executive: Again, if you are anxious, please stay tuned for more details in our future events.

Bin Wang: Next question, Hans from Bin Wang with Deutsche Bank. Good evening, everyone. My question is more important to you because of China's details. But if we are to believe in a 35,000-year-old China, it means that we are to believe in two million dollars. How will this two million dollars be in the future?

Speaker Change #154: Your next question comes from Bin Wang with Deutsche Bank.

Speaker Change #155: curing the how or whatever you can continue to colduct in a to look potasrum istcig around with a financial chain its enrovement so we ven't singing manant so ' do lemented

Brian Gu: 这是第一个问题,我翻译一下, 假设我们在三个半月内实现了45,000个产品的高端, 那意味着在九月份我们可以实现超过20K, 那么您能提供一些详细的评估, 尤其是在九月份我们能实现多少产品呢?谢谢。嗨,Ben,我是Brian。目前我们还没有提供一个具体的模型混合来提供未来的产品, 但是我会说,正如我之前所说的, 我们在九月份预期Mona会有非常强劲的产品发送, 我们很可能能够在EV开发商或新玩家手上获得EV产品, 我们希望能够实现这个目标。第二,我们也希望能够获得海外的产品, 主要是G9和G6产品, 您也知道G6产品将在这个月和下个月开始发送, 这也意味着我们的模型产品也会提供一些产品。除此之外,我认为我们不会提供更多的细节。我的第二个问题是关于新产品。您提到摩托车, 我还想问您一些关于摩托车的产品,谢谢。 Ben,在这次的召开会上, 我们未能提供具体的指示, 我们将在明年推出新的模型或更新的模型。我认为我们将在后一阶段提供这些信息, 但是我们可以说,正如我们之前所说, 我们预期在四个半月开始一个非常强大的产品轮运, 我们将提供更多的产品, OK, thank you very much, thank you.

Bin Wang: The first question, I will find out if we achieve a high end of the 45,000 units in the third quarter, which means in the September, we can achieve more than 20K. So can you provide a breakdown by product specifically how much more in the September, if we achieve a high end? Thank you.

Speaker Change #156: sometimes 's takeickle who does a the alengia

Speaker Change #157: Let me translate it. Assuming we achieve the high-end of 45,000 units in the third quarter, which means in September we can achieve more than 20,000. So can you provide a breakdown by product, specifically how much more in September if we achieve the high-end? Thank you.

Brian Gu: And the other thing in Q4, as we introduce P7 plus, which will be the first model that come out of our new platform to achieve the cost reduction that we have communicated earlier. We do expect the P7 plus margin to be very healthy into the double digits. So, all in all, I would say from a trend perspective, we expect the overall margin to be stable and maintained at mid to low teens, as you see in the second quarter.

Paul Gong: Your next question comes from Paul Gong with UBS.

Brian Gu: Hey, Ben. This is Brian. At the moment, we do not provide a breakdown of a specific model mix for the delivery of coming months. But I would say, as I said before, we anticipate very strong delivery for more in September. We likely achieve the record for EV delivery by EV startup or new players, as you can imagine. So we hope to achieve that record. Secondly, it also consists of a significant percentage from overseas, which will be mostly G9 and G6. As you know, that G6 is starting to deliver this month and next month. So that will also mean there's contribution from these mainstream models from our lineup.

Brian: Hey Bain, this is Brian . At the moment, we do not provide a breakdown of a specific model mix.

Brian Gu: We think, given what we see in terms of the, you know, the indicative order momentum, as well as, you know, the preparation that Xiaopeng just mentioned, we're very confident that Monas delivery in the first month, starting in September, will likely achieve the fastest delivery record for all EVs. EV models made by, you know, EV startups.

Speaker Change #159: for the delivery of coming month.

Speaker Change #160: But I would say, as I said before, we anticipate very strong delivery for Mona in September . We likely achieve the record for EV delivery by EV startup or new players, as you can imagine. So we hope to achieve that record. Secondly is that it also will consist of a significant percentage from overseas, which will be mostly G9 and G6. As you know, that G6 is...

Brian Gu: I think we will hopefully set the record for Mona.

Speaker Change #160: So that will also mean there's a contribution from these mainstream models from our lineup. So other than that, I don't think we would probably provide any more details on the mix.

Unknown Executive: So, other than that, I don't think that we will probably provide any more details on the mix.

Unknown Executive: Okay.

Brian Gu: Thanks. The P7 plus, the P7 plus, the P7 plus, the first model to use the PO3 region,[inaudible] Gu, Xinchi Yin. Well, actually, regarding your question, I would say that board details to be disclosed on the future product launch conferences and also on our 1024 at Tech-Date to stay tuned. But what I can say for now is that first of all, without relying on centers and I find a finishing map, that already in itself allowed itself allow us to reduce our cost significantly.

Speaker Change #161: okay leven in qu you in the most school so qu put on janu havebeen told number on comcommunment on your owner or last paany

Unknown Executive: My question is, second one is about the new product dimension worth a motorcycle. It's a little bit about a product collection.

Paul Gong: 感謝接受我的提問,我的第一個問題是關於出口的這一邊的, 就很高興看到公司在往出口這種方向在推, 但當前就是說往著歐洲的時候,馬上就有額外的關稅的一個來加入, 往著其他的一些市場的話,也都會面臨越來越激烈的, 其他中國車企的一個來競爭,我們在這些挑戰的話,我們是如何來面對?

Speaker Change #162: peally 's not nowlet'scomte

Unknown Executive: Thank you. Ben, again, on this call, we are not able to provide specific guidance on model launches next year or the number of new as well as updated models. I think we will provide that information probably in a later stage. But what we can say, as we said before, is that we anticipate this fourth quarter will start a very strong product cycle. So there will be many. I would say many is more than what we current this year has launched this year. So more than this year, definitely as a number of vehicles for the new models and revised or updated models for next two years.

Brian Gu: Secondly, I think I want to also emphasize that the delivery number includes also significant growth of our overseas delivery volume as well.

Speaker Change #163: Again, on this call, we are not able to provide specific guidance on model launches next year or number of new as well as updated models.

Speaker Change #164: I think we will provide that information probably in a later stage. But what we can say, as we said before as well, is that we anticipate this fourth quarter to start a very strong product cycle. So it will be many, I would say many is more than what we current this year, that has launched this year. So more than this year, definitely as a number of vehicles for the new models and revised or updated models for next two years.

Unknown Executive: Okay, thank you very much.

Paul Gong: Your next question comes from Paul Gong with UBS. So my first question is regarding the export outlook. At this stage, we're glad to see the companies pushing for the exports. However, we are seeing the rising protectionism in the DMs, including the upcoming extra tariffs. And we are also seeing in other markets the rising competition. Even among the Chinese, even vehicles is escalating.

Speaker Change #165: Okay, thank you very much. Thank you.

Speaker Change #165: Your next question comes from Paul Gong with UBS.

Speaker Change #166: Thank you for accepting my question. My first question is about the export side. I am very pleased to see the company pushing towards exports. However, currently, when exporting to Europe , there are additional tariffs that come into play. When targeting other markets, we also face increasing competition from other Chinese car manufacturers. How are we addressing these challenges? So, my first question is about the outlook on exports. At this stage, we are very pleased to see the company moving towards exports. However, we also see increased protection measures, including upcoming additional tariffs in the DM. We have also observed this.

Xiaopeng He: AI will revolutionize ADAS safely and driving experience, lower the cost, and speed up the mass market adoption of ADAS.

Brian Gu: And on the other hand, with the adoption of the N2NAI model using the decision-based technological approach, allow us to greatly enhance our A-Dust capability as well. Again, if you are anxious, please stay tuned for more details in our future events.

Paul Gong: So my first question is regarding the export outlook.

Paul Gong: At this stage, we are glad to see the company is pushing for the export.

Paul Gong: However, we are seeing the rising protectionism in the DMs, including the upcoming extra tariff.

Xiaopeng He: From July 30th, we have completed the 5.2 version of AI technology.

Unknown Executive: Thank you.

Paul Gong: And we are also seeing in other markets, the rising competition among the Chinese EV makers is escalating.

Xiaopeng He: The XNGP of XNGP has started to become a step forward, and the steps of the steps of the steps of the steps of the steps of the steps of the steps of the steps of the steps of the steps of the steps of the step forward.

Unknown Executive: Next question, Hans from Bin Wang with Deutsche Bank.

Charles Zhang: [inaudible] Zhang.

Unknown Executive: Good evening, everyone. My question is more important to you because of China's details. But if we are to believe in a 35,000-year-old China, it means that we are to believe in two million dollars. How will this two million dollars be in the future?

Charles Zhang: Since July the 30th AI-powered XLS, version 5.2, has been made available to all Xfang owners, taking XNGP to the next level by empowering a smooth experience anywhere, regardless of city and route.

Speaker Change #167: In other markets, the rising competition among the Chinese EV makers is escalating. How do you foresee these challenges? How do you overcome it?

Paul Gong: How do you foresee these challenges?

Paul Gong: How do you foresee these challenges? How do you overcome yet?

Paul Gong: How do you overcome it?

Brian Gu: Paul, this is Brian again. Very good question. I think you're right. Obviously, global opportunity is immense, but also, you know, there's a lot of challenges along the way. We also noticed the tariff updates in the European market, etc.

Brian Gu: As you can see that the overseas delivery volume in the second quarter exceeded 10%. We anticipate the delivery from overseas will probably be above 15% in the third quarter, which also diversifies our overall order intake that give us further confidence that, you know, the delivery objectives that we set for third quarter and as well as the fourth quarter will be achievable.

Charles Zhang: We are the first to deploy AI model technology that offers access to ADAS on all public roads for all users nationwide.

Unknown Executive: The first question, I will find out if we achieve a high end of the 45,000 units in the third quarter, which means in the September, we can achieve more than 20K. So can you provide a breakdown by product specifically how much more in the September, if we achieve a high end?

Brian Gu: Paul, this is Brian again.

Speaker Change #167: Hey Paul, this is Brian again. Very good question.

Brian: I think you're right. Obviously, global opportunity is immense, but also, you know, there's a lot of challenges along the way. We also noticed the tariff updates, you know, in the European market, etc. But what I would say a few points. One is that we so far has been very successfully launching our product in Europe as well as other global markets.

Charles Zhang: The application of N2NAI launch models in autonomous driving is easier set than done.

Charles Zhang: One of the challenges is how to ensure save closed loop texting with both an extremely high upper limit and a solid lower limit.

Charles Zhang: Our extensive datasets and gears of experience in urban ADAS driving give us an edge in integrating these N2NAI models, providing a safer, more human life driving experience for our users.

Brian Gu: Thank you. Hey, Ben. This is Brian. At the moment, we do not provide a breakdown of a specific model mix for the delivery of coming months. But I would say, as I said before, we anticipate very strong delivery for more in September. We likely achieve the record for EV delivery by EV startup or new players as you can imagine. So we hope to achieve that record. Secondly, it also consists of a significant percentage from overseas, which will be mostly G9 and G6. As you know, that G6 is starting to delivery this month and next month. So that will also mean there's contribution from these mainstream models from our lineup.

Brian Gu: But what I would say, a few points. One is that we so far has been very successfully launching our product in Europe as well as other global markets, positioning those products as premium sort of EV brand. If you look at our sell price of G6 as well, G9 in global markets, which is available today already, you can see that we actually are priced higher than some of the comparable competitors we actually face in China, which means that we actually can achieve a better and more premium position for global markets. Secondly, is that in Europe, specifically, we obviously have to deal with the tariff, but I think given, you know, the efforts by our team, the pricing, as I mentioned, as well as, you know, using a collaborative relationship with local partners, we still can achieve, I would say, good marginal contribution from those sales.

Charles Zhang: We're gearing up to tackle smart driving challenges such as ETC tow stations and parking gauge barriers with our XNGP capabilities.

Charles Zhang: Our goal is to offer an unparalleled parking spot to parking spot ADAS experience and implement the N2NAI models to the next level as our second step.

Brian: positioning those products as premium sort of EV brand, if you look at our sale price of G6 as well G9 in global markets which is available today already you can see that we actually are priced

Brian: are higher than some of the comparable competitors we actually face in China, which means that we actually can achieve a better and more premium position for global markets.

Brian: Secondly is that in Europe specifically, we obviously have to deal with the tariff, but I think given the efforts by our team, the pricing as I mentioned, as well as using a collaborative relationship with local partners, we still can achieve, I would say, good marginal contribution from those sales. So we are actually dealing with that at the moment, which already started, I think, the regime back in July . So we have been dealing with this.

Brian Gu: So other than that, I don't think that we will probably provide any more details on the mix. Okay.

Brian Gu: So we are actually dealing with that at the moment, which already started, I think, the regime back in July. So we have been dealing this in the last month and a half already. And then looking outside of Europe, I think we actually also see huge opportunities for the Middle East, including Israel, South East Asia, which is the market that we will be launching our right-hand driving models as we speak this month and next month. And also we see significant growth opportunities in other parts of the world. So with additional sort of a product launch as well as better, I would say, more premium positioning of our product globally, as well as, you know, building extensive relationship and distribution channels around the world.

Unknown Executive: My question is, second one is about the new product dimension worth a motorcycle. It's a little bit about a product collection. Thank you.

Brian: in the last month and a half already.

Brian: And then looking outside of Europe , I think we actually also see huge opportunities for Middle East, including Israel, Southeast Asia, which is the market that we will be launching our right-hand driving models as we speak this month and next month.

Unknown Executive: Ben, again, on this call, we are not able to provide specific guidance on model launches next year or number of new as well as updated models. I think we will provide that information probably in a later stage. But what we can say, as we said before, is that we anticipate this fourth quarter will start a very strong product cycle. So there will be many. I would say many is more than what we current this year has launched this year. So more than this year, definitely as a number of vehicles for the new models and revised or updated models for next two years. Okay, thank you very much. Thank you.

Brian: And also we see significant growth opportunities in other parts of the world.

Brian: So with additional sort of a product launch, as well as better, I would say, more premium positioning of our product globally, as well as, you know, building

Brian Gu: We are confident that we can achieve the volume as well as some of the profit contributions we anticipate from global operations.

Brian: We are confident that we can achieve the volume as well as some of the profit contributions we anticipate from global operations.

Unknown Executive: Thank you very much. The second question is related to Robotoxy. I remember that a few years ago, Cheng Jing Yidu, Xiaopeng, there was a moment that X-Tong also had a little plan for the Robotoxy, but subsequently it has been modified.

Brian Gu: 明白,謝謝小鵬總,也謝謝這個Brian總的補充,我的第二個問題是有關於支架,就是小鵬汽車在剛才小鵬總也提到了,在這個AI專道專案大模型和支架的這個大規模投入,讓集團在支架能力和全國全量開放上面,過去一段時間展現了非常亮眼的一個成績,但如果我們從商業回報的角度來看的話,管理層一起什麼時候,小鵬汽車支架能力的這個上升, 而且能夠成為同業的一個門檻, 然後進一步能夠加快轉換成小鵬汽車這個新車銷售的一個提升那另外的話是否有任何指標是能夠觀察的比如說像越貨用戶里程滲透率或者是像小鵬總剛才所提到的這個點對點的一個, My second question is about the XNGP or high-level add-ups.

Speaker Change #168: Thank you very much. My second question is about Robotaxi. I remember that a few years ago, XPeng had plans to launch Robotaxi. However, due to some changes in the plan, it was not further pursued. We also noticed that you mentioned earlier that you hope the mass-produced cars next year in the second half can achieve the effect of overseas Robotaxi. But just from the application of Robotaxi alone, could you share with us why, as a pioneer in autonomous driving, the enthusiasm for Robotaxi is not very high?

Xiaopeng He: [inaudible] From the beginning of this year, we started to talk about the situation between China and the overseas market, and started to get closer and faster.

Xiaopeng He: This is the only important thing for us to achieve.

Speaker Change #169: So my second question is regarding the Robotaxi, I recall a few years ago once there was a moment that Xpeng also had a little bit plan for the Robotaxi, but subsequently it has been modified. I understand just now you mentioned that you hope your volume produced models to achieve the similar effect versus Robotaxi operation in overseas markets in second half of 2025, but just want to listen to you guys why as I...

Xiaopeng He: In the second half of this year, the Chinese-speaking Chinese-speaking market, the Chinese-speaking market, which is the third-generation American-speaking market, we are in the first place.

Unknown Executive: I understand just now you mentioned that you hope your volume produced models to achieve the similar effect versus Robotoxy operation in overseas markets in the second half of 2025, but just want to listen to you guys why as I industry leader in the autonomous driving, you are not a big fan of Robotoxy operation. This is a very good question. In fact, in China and in the global development of Robotoxy, we are using a very big model operation now. They are more related to the experience of a small area, safer and better. We are more related to a whole area, so we can improve the experience of that area.

Xiaopeng He: Our contribution to the overseas market has exceeded 10%.

Xiaopeng He: [inaudible][inaudible] been working together for a long period of time, and we've been working together for a long period of time, and we've been working together for a long period of time,[inaudible] and we've been working together for a long period of time, and we've been working together for a long period of time.

Xiaopeng He: Thank you.

Brian Gu: How do you foresee these challenges? How do you overcome yet? Paul, this is Brian again. Very good question. I think you're right. Obviously, global opportunity is immense, but also, you know, there's a lot of challenges along the way. We also noticed the tariff updates in the European market, etc. But what I would say, a few points. One is that we so far has been very successfully launching our product in Europe as well as other global markets positioning those products as premium sort of EV brand.

Unknown Executive: Thank you, everyone.

James Wu: With that, I'll now turn the call over to our VP of Finance, Mr. James Wu, to discuss our financial performance for the second quarter of 2024.

James Wu: Thank you, Xiaopeng.

Speaker Change #170: The industry leader in the autonomous driving, you are not a big fan of robot taxi operation.

James Wu: Now, let me provide a brief overview of our financial results for the second quarter of 2024.

James Wu: Our reference R&B only in my discussion today, unless otherwise stated.

James Wu: Our total revenues were 1.8.11 billion for the second quarter of 2024, an increase of 60.2% over year, and an increase of 23.9% quarter of a quarter. Revenues from vehicle sales were 6.82 billion for the second quarter of 2024, representing an increase of 54.1% over year, and an increase of 23% quarter of a quarter. The year over year and quarter of a quarter increases were mainly attributable to higher deliveries.

Speaker Change #171: Hmm... this is a very good question... this...

Speaker Change #172: In fact, the technical routes for doing local taxi services in China and globally now,

James Wu: Gross margin was 14% for the second quarter of 2024, compared with negative 3.9% for the same period of 2023, and 12.9% for the first quarter of 2024. Vehicle margin was 6.4% for the second quarter of 2024, compared with negative 8.6% for the same period of 2023, and 5.5% for the first quarter of 2024.

Brian Gu: If you look at our sell price of G6 as well, G9 in global markets, which is available today already, you can see that we actually are priced higher than some of the comparable competitors we actually face in China, which means that we actually can achieve a better and more premium position for global markets. Secondly is that in Europe, specifically, we obviously have to deal with the tariff, but I think given, you know, the efforts by our team, the pricing as I mentioned as well as, you know, using a collaborative relationship with local partners, we still can achieve, I would say, good marginal contribution from those sales.

Speaker Change #173: The route of the large model we are using now is very different.

Speaker Change #173: They are more focused on improving the safety of the experience within a small area. We might be more focused on enhancing the experience for more people on a global scale.

James Wu: The year over year increase was primarily attributable to the cost reduction and the improvement in product mix.

Xiaopeng He: So, from the perspective of that, there is a difference. The second point is to say that we think that because before the small area, Cheng Jing Yidu, we have decided to develop the technology. We think that Robotoxy's experience is also very related to the experience of Cheng Jing Yidu, except for the development of this experience.

Speaker Change #174: Do better, so there is actually a difference in direction.

Speaker Change #175: So, the second point, for XPeng, we believe that because XPeng has previously operated certain transportation tools, we think that in the field of Local Taxi, they are still very focused on this.

James Wu: The quarter of a quarter increase was primarily attributable to the cost reduction.

Speaker Change #175: tban

Speaker Change #176: a very managed effect

Xiaopeng He: So we also think that today's big part of Robotoxy is that there is no possibility that the technology of Robotoxy is a very good question.

Speaker Change #176: Besides political regulations and public opinion, we also believe that most of today's robotics companies in the hardware field have not achieved both low cost and good user experience.

James Wu: R&B expenses were 1.47 billion for the second quarter of 2024, representing an increase of 7.3% year over year, and an increase of 8.6% quarter of a quarter. The year over year and quarter of a quarter increases were mainly due to higher expenses, related to the development of new vehicle models, as the company expanded its product portfolio to support future growth.

James Wu: SGNA expenses were 1.57 billion for the second quarter of 2024, representing an increase of 1.9% year over year, and an increase of 13.3% quarter of a quarter. The year over year and quarter of a quarter increases were mainly due to higher commission to the franchise stores and higher marketing and advertising expenses. As a result of the foregoing, loss from operations was 1.61 billion for the second quarter of 2024, compared with 3.09 billion for the same period of 2023, and 1.65 billion for the first quarter of 2021.

Brian Gu: Very good question.

Speaker Change #177: Please translate a paragraph for me first, thank you.

Brian Gu: I think you are right.

Unknown Executive: Wu, Xpeng Hsiao, Xiaopeng Hsiao, Xiaopeng and then feel free to follow up with your next question.

Xiaopeng He: Actually, when it comes to Robotoxy's development, not only in China, but globally speaking, the technological approach is quite different from what we adopt right now, which is the N2NAI model architecture. Now, the focus of Robotoxy right now in the market is to focus on offering safe and good customer experience within a small area or region, whereas our target is to offer a full domain or all domain, human-like driving experience. That definitely defines the differences between our focus right now versus Robotoxy.

Brian Gu: Obviously, global opportunity is immense, but also there is a lot of challenges along the way.

Brian Gu: We also noticed the tariff updates in the European market, etc.

Speaker Change #178: Thank you. This is a very good question. Actually, when it comes to robo-taxi development, not only in China, but globally speaking, the technological approach is quite different from what we adopt right now, which is the end-to-end AI models architecture. Now, the focus of robo-taxi right now in the market is to focus on offering safe and good customer experience within a small area or region, whereas our target is to offer a full domain kind of human-like driving experience. That definitely defines the differences between our focus right now versus robo-taxi. And the other thing is that, based on our previous experience of operating mobile vehicles, we understand that right now, when it comes to the industry,

Tim Hsiao: The constant investment in NTN large models has further enhanced the experience of systematic capabilities in AI smart driving technology, and much faster than national-wide rollout of XNGP.

Brian Gu: And also we see significant growth opportunities in other parts of the world. So with additional sort of a product launch as well as better, I would say, more premium positioning of our product globally as well as, you know, building extensive relationship and distribution channels around the world. We are confident that we can achieve the volume as well as some of the profit contributions we anticipate from global operations.

Unknown Executive: This together is the upcoming P7 plus because it really stands out a copy here and want to sell through a new high of around like 30,000.

Xiaopeng He: And the other thing is that based on our previous experience of operating on medical vehicles, we understand that right now, when it comes to the industry target for Robotoxy, cost still is in the low-empower already, apart from regulation, and also the adoption rate and penetration of this technology. The majority of Robotoxy developers right now do not really balance these two aspects really well, meaning, namely, cost and customer experience.

Unknown Executive: So that's my first question.

Unknown Executive: Thank you very much.

Speaker Change #178: Target for Robotech C, cost still is the number one priority, you know, apart from regulation and also the mass, you know, adoption rate and penetration of this technology, you know, the majority of Robotech C developers right now do not really balance these two aspects really well, meaning, you know, namely cost and customer experience.

Unknown Executive: Thank you.

Unknown Executive: The second question is related to Robotoxy. I remember that a few years ago, Cheng Jing Yidu, Xiaopeng, there was a moment that X-Tong also had a little plan for the Robotoxy, but subsequently it has been modified. I understand just now you mentioned that you hope your volume produced models to achieve the similar effect versus Robotoxy operation in overseas markets in the second half of 2025, but just want to listen to you guys why as I industry leader in the autonomous driving, you are not a big fan of Robotoxy operation.

Unknown Executive: This question is one of the most important questions for me.

Xiaopeng He: Could you tell us a few things? First, Xiaopeng is indeed in charge of its robot chassis. However, our robot chassis and L4 cars are all in the same situation.

Speaker Change #178: a number

Speaker Change #179: I can mention a few additional points later. I think the first one is that Xiaopeng is indeed planning its own Lobotest.

Xiaopeng He: The second point is that Xiaopeng is not willing to enter the robot chassis' heavy rain. We hope Xiaopeng can make the car better, so that we can cooperate with all of the rain. The third point is that the robot chassis may be the same as the new generation of L4 chassis.

Speaker Change #180: However, we believe that Lobotec's cars still have a gap compared to L4's cars. This is the first point.

Speaker Change #181: The second point is that Xiaopeng is not willing to enter the heavy operations of RoboTaxi. We expect Xiaopeng to just focus on making good cars, so that we can collaborate with global operators. This is the second point.

Speaker Change #181: The third point is that Nobetaski might become a huge new ecosystem in the L4 system in the future, which is quite different from our simple travel. We will share more of our differentiated ideas about Nobetaski with everyone when we have more time later. Thank you.

Xiaopeng He: We hope that the new generation of L4 chassis and the new generation of L4 chassis may not be the same as the new generation of L4 chassis. We hope that we can cooperate with all of the robot chassis' heavy rain.

Unknown Executive: So in my office, there is a letter written by the new model.

Xiaopeng He: There are several things that we can comment on when it comes to robot chassis.

Tim Hsiao: However, when it comes to return of investment, when do you expect such a massive and constant investment could translate into a real barrier to peer competitors and translate into a meaningful upside to Xpeng's new car sales?

Tim Hsiao: Will there be any side posts or metrics we can monitor in the following quarters?

Xiaopeng He: First of all, we are definitely considering the future for developing robot chassis. This is very, very different from the L4 ASK ability or experience.

Speaker Change #182: Now, there are several things that we can comment on when it comes to RoboTaxi. First of all, we are definitely considering the future for developing RoboTaxi, but this is very, very different from the L4 HS capability or experience. The second thing is that we're not considering involving ourselves in the operation of RoboTaxi, but rather focusing on producing, you know, high quality products or vehicles, RoboTaxi vehicles with the partnership with vehicle mobility operators in the future, globally speaking. And another thing that I want to compliment here is that, you know, RoboTaxi, when it comes to development of RoboTaxi, Xpeng definitely has our unique kind of differentiation and consideration as well. We've put in a lot of thought.

Tim Hsiao: So that's my second question.

He Xiaopeng: 嗯,对,在5.2版本推送之后,我们可以看到一些非常好的数据。第一个就是说所有用户的使用渗透率, 包括了還有里程、滲透率等核心指標上都有最少20% 第二个,我们以前有一部分的门店是没有办法去在城市里面塞门的。现在我们会到达所有的目的地更理解我們的這個態度, 那麼在今天,從我角度來判斷,今天中國…… 端的端的, 只有小龙一家,其他的都还在宣称后面, 实际上在刚刚我所说的这个里面有两个的挑战第一个挑战应该是端著端提高了上限,但是如何守住下限,這個是需要很多的工作量的。他導致了小鵬整個的音法都在做相當大的調整確保下限有足夠的高第二個實際上它會對於原來, 比如說做得不好的,比如說,舉例,對於各個地方,你都要去測試,現在短短短的話…… 從趨勢來看可以讓每個地方的開車都向當地的老鄉, 当地的但他也會帶來的挑戰就是原來的Rubix加AX小公司, 在部分区域那么所以今天在部分区域的能力甚至会有一定的回贷, 但是从趋势来看,我还是很坚信今年是转折,到明年。在某個時候,小鵬的自動輔助駕駛我覺得會比現在大概有數倍到十幾倍的提高, 我覺得那個時候會帶來商業化的最大的銷量, 同時結合我們在今年年底P7加首發的全新一代硬件平台的成本計劃请让更多的客户用可支付的手机, 字幕由Amara.org社区提供這是我相信在明年會帶來的, Thank you for your question.

Xiaopeng He: The second thing is that we are not considering involving ourselves in the operation of robot chassis, but rather focusing on producing high quality products or vehicle, robot chassis vehicles with the partnership with vehicle or mobility operators in the future. It is actually quite different from the PUA ASK for everyday use, and it's a different way of a different kind of mobility.

He Xiaopeng: Since the rollout of our version 5.0, we've collected a lot of very exciting and encouraging data, including two aspects. The first one is the option rate and also penetration rate of using our high-level ADAS capabilities, at least 20% increase from before the rollout of 5.2.

Unknown Executive: So this letter gave Xiaopeng the next year.

Unknown Executive: This is a very good question. In fact, in China and in the global development of Robotoxy, we are using a very big model operation now. They are more related to the experience of a small area, safer and better. We are more related to a whole area, so we can improve the experience of that area. So from the perspective of that, there is a difference. The second point is to say that we think that because before the small area, Cheng Jing Yidu, we have decided to develop the technology.

Brian Gu: Qiaopeng, Qiaopeng, Unknown Executive, Tim Hsiao, Bin Wang, Xpeng, Qiaopeng, Unknown Executive, Tim Hsiao, Bin Wang, Xpeng,[inaudible] Hey Tim, this is Brian.

He Xiaopeng: And the second thing is that we used to encounter challenges in test driving in some stores, in some areas and regions.

He Xiaopeng: And right now, across all of our dealershops, you can freely use the XNGP, and this is made available to all of our dealershops right now, which will allow our consumers to have first-hand experience of how capable our ADAS capability is.

Brian Gu: Let me just add a couple points here.

He Xiaopeng: And right now, among all Chinese EV makers, Xpeng is the only actual end-to-end AI model implementer, although other competitors or peers of ours also claim that they are moving towards that end goal.

He Xiaopeng: But we do face multiple challenges.

He Xiaopeng: The first one is that as we increase the upper limit of our ADAS capabilities with the adoption of the end-to-end AI models, we also need to secure a solid bottom limit of that capability as well.

Speaker Change #182: and it's actually quite different from, you know, the pure ADAS for everyday use. And it's a different way of, or a different kind of mobility, and in the future, when time allows, we're going to share more of our thoughts in this regard. Thank you.

He Xiaopeng: That requires a lot of changes and reforms, which we have implemented in our technology and architecture.

He Xiaopeng: And the other challenge is that previously, we might not be able to roll out our capability across different locations around the country.

Xiaopeng He: In the future, when Tom allows, we are going to share more of our thoughts in this regard.

He Xiaopeng: And right now, even though we are able to do it and also provide a human-like driving experience for multiple locations and in a wider range of areas, we do experience some setbacks in a small range of cities or routes where route-based and also small model technological routes may produce a better outcome for now.

Unknown Executive: Thank you. Thank you very much. That's quite helpful. Thank you.

Unknown Executive: We think that Robotoxy's experience is also very related to the experience of Cheng Jing Yidu, except for the development of this experience. So we also think that today's big part of Robotoxy, is that there is no possibility that the technology of Robotoxy is a very good question. Actually, when it comes to Robotoxy's development, not only in China, but globally speaking, the technological approach is quite different from what we adopt right now, which is the N2NAI model architecture.

Brian Gu: But what I would say, a few points.

Brian Gu: One is that, we so far have been very successfully launching our product in Europe, as well as other global markets, positioning those products as premium EV brand.

Tina Hou: Your next question comes from Tina. How would Goldman Sachs? Goldman Sachs?

Speaker Change #183: Thank you very much. That's quite helpful. Thank you.

Speaker Change #184: Your next question comes from Tina. How is Goldman Sachs?

Speaker Change #185: Thank you to the management for answering my questions. I also have two questions. The first one is about our Mona M03. I would like to ask about our current production capacity preparation. What is the general situation? Previously, including the G6, our delivery schedule was mainly affected by supply chain issues, such as bottlenecks with LiDAR. However, the M03 does not have LiDAR, so our ramp-up should be very quick. Therefore, I would like to ask about our production capacity preparation. The second question is about our R&D expenses. The previous guidance was around 7 to 7.5 billion, but if we look at the first half of this year...

Unknown Executive: Now, the focus of Robotoxy right now in the market is to focus on offering safe and good customer experience within a small area or region, whereas our target is to offer a full domain or all domain, human-like driving experience. That definitely defines the differences between our focus right now versus Robotoxy. And the other thing is that based on our previous experience of operating on medical vehicles, we understand that right now, when it comes to the industry target for Robotoxy, cost still is in the low-empower already, apart from regulation, and also the adoption rate and penetration of this technology. The majority of Robotoxy developers right now do not really balance these two aspects really well, meaning namely cost and customer experience.

Speaker Change #186: Then looking at last year's full-year seasonality, this year might track to just under 6 billion. So I want to ask if there will be more R&D expenditures in the second half of the year. These are my two questions.

Speaker Change #187: Thanks management for taking my question. My first question is regarding our production preparation for MONA M03, because previously with G6, I think the supply bottleneck was mainly related to the LiDAR. However, with M03, we don't have LiDAR, so this should have much faster ramp up. So just wondering how much are we preparing for in the next few months. Second question is regarding our R&D expense. So we got it for $727.5 billion.

Unknown Executive: Could you tell us a few things? First, Xiaopeng is indeed in charge of its robot chassis. However, our robot chassis and L4 cars are all in the same situation. The second point is that Xiaopeng is not willing to enter the robot chassis' heavy rain. We hope Xiaopeng can make the car better, so that we can cooperate with all of the rain. The third point is that the robot chassis may be the same as the new generation of L4 chassis.

Unknown Executive: previously, but looking at our first half tracking and looking at last year's first half second half seasonality, it seems like it's tracking just below 6 billion RMB.

Speaker Change #187: Previously, but looking at our first half tracking and looking at last year's first half, second half seasonality, it seems like it's tracking just below 6 billion RMB. So wondering whether we have any like added R&D spending into the second half. Thank you.

Tina Hou: So, wondering whether we have any like added RMB spending into the second half. Thank you.

Brian Gu: If you look at our sell price of G6 as well as G9 in global markets, which is available today already, you can see that we actually are priced higher than some of the comparable competitors we actually face in China, which means that we actually can achieve a better and more premium position for global markets.

He Xiaopeng: But we believe the trend is that, first of all, this year is definitely a turning point for adopting these end-to-end AI models to implement and also to enhance our ADAS driving capability.

James Wu: Tina, this is James. I'll try to answer both of your questions. On both production capacity, obviously we've seen what we have experienced in the past: launchers with regard to G6 and X9. These are great lessons we've learned. So, what we have done is we have started preparing the Mona production preparation way ahead of time versus the previous cases. So, we've anticipated the supply constraints from some of the key components, and we have set sufficient plans to prepare solutions for those issues that we have experienced in the past. So far, we haven't seen any finds of issues with regard to our supply chain and production capacity, so we continue to expect we will achieve the planned production and delivery as we have communicated earlier.

Brian Gu: Secondly is that, in Europe specifically, we obviously have to deal with the tariff, but I think given the efforts by our team, the pricing as I mentioned, as well as using a collaborative relationship with local partners, we still can achieve, I would say, good marginal contribution from those sales.

Brian Gu: So we are actually dealing with that at the moment, which already started, I think, the regime back in July.

Unknown Executive: We hope that the new generation of L4 chassis and the new generation of L4 chassis may not be the same as the new generation of L4 chassis. We hope that we can cooperate with all of the robot chassis' heavy rain.

Brian Gu: So we have been dealing with this in the last month and a half already.

Speaker Change #187: Hey Tina, this is James. I'll try to answer both of your questions.

Brian Gu: And then looking outside of Europe, I think we actually also see huge opportunities for Middle East, including Israel, Southeast Asia, which is the market that we will be launching our right-hand driving models as we speak this month and next month.

Speaker Change #188: On Moda production capacity, obviously we've seen what we have experienced in the past.

Unknown Executive: There are several things that we can comment on when it comes to robot chassis. First of all, we are definitely considering the future for developing robot chassis. This is very, very different from the L4 ASK ability or experience. The second thing is that we are not considering involving ourselves in the operation of robot chassis, but rather focusing on producing high quality products or vehicle, robot chassis vehicles with the partnership with vehicle or mobility operators in the future. It is actually quite different from the PUA ASK for everyday use, and it's a different way of a different kind of mobility.

Speaker Change #188: Launchers with regard to G6 and X9, these are great lessons we've learned.

He Xiaopeng: And going forward in the near future, we believe that when we are able to upgrade to a more comprehensive version, we can expect to see a great outcome when it comes to commercialization.

He Xiaopeng: And that means that starting from P7+, which is really a great outcome of the technologically-driven cost reduction on this platform using this technological architecture, will allow us to offer affordable high-end ADAS capability to a wider range of consumers, which can improve our industry-leading ADAS capability.

He Xiaopeng: Thank you.

Speaker Change #188: So what we have done is we have started preparing the MONA production preparation way ahead of time versus the previous cases.

Brian Gu: Great.

Speaker Change #188: So we've anticipated the supply constraints from some of the key components and we have set

Speaker Change #188: sufficient plans to prepare solutions for those issues that we have experienced in the past.

Brian Gu: Thanks a lot for sharing those details.

Speaker Change #188: So far, we haven't seen any signs of issues with regard to our supply chain and production capacity, so we continue to expect we will achieve the planned production and delivery as we have communicated earlier.

Brian Gu: And also we see significant growth opportunities in other parts of the world. So with additional sort of product launch, as well as better, I would say, more premium positioning of our product globally, as well as building extensive relationship and distribution channels around the world, we are confident that we can achieve the volume as well as some of the profit contributions we anticipate from global operations.

James Wu: Your second question about the engineering expense. Yes, from the first half, if you look at our engineering expenses, it's relatively flat and comparable to last year. But, as we mentioned earlier, we are entering into a pretty heavy product cycle, and a lot of the engineering expenses with regard to design and product development have already kicked in. So, we expect the engineering expenses to ramp up in the second half of the year. For the full year, we still remain our earlier guidance of about $7 billion for the full year in terms of engineering expense.

Speaker Change #188: Your second question about the...

Speaker Change #188: Engineering, Expanse, yes.

Unknown Executive: In the future, when Tom allows, we are going to share more of our thoughts in this regard. Thank you. Thank you very much. That's quite helpful. Thank you.

Speaker Change #188: From the first half, if you look at our engineering expenses,

Speaker Change #188: It's relatively flat and comparable to last year.

Speaker Change #188: But as we mentioned earlier, we are entering into a pretty...

Unknown Executive: Your next question comes from Tina.

Brian Gu: First of all, I think you're right. When we give the third quarter guidance at the high end of the guidance, we do assume that we will hit like the 20,000 per month volume delivery, which is going to be the high point of our delivery record historically.

James Wu: How would Goldman Sachs? [inaudible] previously, but looking at our first half tracking and looking at last year's first half second half seasonality, it seems like it's tracking just below 6 billion RMB. So, wondering whether we have any like added RMB spending into the second half. Thank you. Tina, this is James. I'll try to answer both of your questions. On both production capacity, obviously we've seen what we have experienced in the past, launchers with regard to G6 and X9.

Speaker Change #188: Heavy Product Cycle

Speaker Change #188: And a lot of the engineering expenses with regard to design and product development.

Speaker Change #188: has already kicked in.

Speaker Change #188: So, we expect the engineering expenses to ramp up in the second half of the year. For the full year, we still remain our earlier guidance of about $7 billion for the full year in terms of engineering expense.

Unknown Executive: Thank you.

Unknown Executive: Thank you, that's very clear.

Speaker Change #188: Thank you.

Pingyu Wu: Your next question comes from Pingyu, who with side tech securities? I have two questions. The first question is, I actually went to see the first time in the first half, and it was a very good quality, but people will only feel the quality when they see the car in person.

Brian Gu: 非常感谢,那我第二个问题来说的话是关于这个Robotaxi的,就我记得就几年前的话,曾经一度就小鹏公司应该还是提过有打算出Robotaxi,然后后来因为一些计划的一些变动,然后就没有再进一步的推行这一块,我们也留意到就刚才所提到的,能希望的就是量产的车明年下半年能够达到海外Robotaxi的这么一个目标, 但是我们就是单是从Robotaxi的一个应用来说,能否跟我们分享一下,为什么就是作为自动驾驶的一个领先者,反而就是对于走Robotaxi的一个热情并不高涨。所以我们也认为,今天绝大部分的Robotaxi的公司在硬件领域里面没有做到既能够低成本又能够好体验。先帮我翻这两段,谢谢。谢谢,这是一个非常好的问题。实际上,对于Robotaxi的发展,不仅是在中国,而是全球来说,技术方向相对不同于我们目前採用的N2NAI模型建筑。另一方面,根据我们之前的经验,我们明白目前对于Robotaxi的工业目标来说,价格仍然是最高的前提,除了承诺和这些技术的大幅度的取得和传播。后面可以说几个补充的点,第一个,小鹏的确在规划自己的Lobotaxi,但是我们认为Lobotaxi跟L4的车都有差距,这是第一点,第二点,小鹏不愿意进入到Lobotaxi的重运营, 所以我们会希望小鹏只是把车做好,这样我们可以跟全球的运营商来进行合作,这是第二个点,第三个点就是Lobotaxi将来可能是一个在L4体系的一个巨大的新的生态,跟我们简简单单的出行还不太一样,等我们后面再有时间再跟大家分享Lobotaxi的一些蛮差异化的想法,谢谢。您的下一个问题来自Tina Hao和Goldman Sachs。我的第一个问题是关于莫娜M03的生产准备。因为之前G6的生产准备,我认为主要是与LiDAR有关,但是M03没有LiDAR,所以应该有更快的升级。所以我只是在想,我们将在未来几个月准备多少?

Brian Gu: I'm looking forward to the meaningful shows take off throughout the rest, Your next question comes from Ming Sun Li with Bank of America.

Speaker Change #189: Thank you, that's very clear.

Speaker Change #190: Your next question comes from Pingyue Wu with SciTech Securities.

Ming Sun Li: 小鵬總還有各位領導,大家晚上好,那我這邊也是兩個問題,那第一個問題是關於毛利率跟技術降本的問題,那就是因為這個季度其實毛利率已經有明顯的改善,那想了解一下就是小鵬總怎麼看就是我們未來在技術降本方面還有哪一些領域是比較有空間可以去降的,因為我們現在包括跟大眾集團的聯合採購,然後包括我們這個風雷達之後的這個車型也會逐步的就是減少,所以說想了解一下就是您覺得未來我們公司或者行業技術降本比較大的一個機會可能會在哪一頁上,順便問一個簡單一點的問題就是咱們三季度,因為考量到正面因素是這個出口占比提高,然後這個銷量也有提升,那另外也有這個EA的這個收入也進來了,所以但是分別來講就是Mona是第一個月交付,所以我看我們三季度的一個毛利的趨勢,這是我第一個問題。所以我們期待三季度的趨勢。對,這個問題謝謝您,我先答一部分在过去的时间里面,小鹏是一个比较偏科的,以技术为中心。那麼逐步逐步技術變成了加上到談判那麼從今年的下半年開始我會把商業能力作為, 那麼剛剛您所說的賬本商業裡面的一部分以上今天大家所看到的我们的, 包括技術、設計、供應鏈以及我們跟大眾的合作所導致的包括降粉的改善上,在今年下半年甚至明年的全年裡面, 大家都會看到不斷地有,隨著每個季度每個季度我們都會有改善。我是期望小鵬將來會有一個比較好於大部分市場公司的一個好这些都是我从趋势上来讲一讲, All right, thank you for your question.

Speaker Change #191: Hello, dear audience friends. Thank you for the opportunity to ask questions. I have two questions. The first one is about Mona. I went to see the Mona car as soon as possible. This car is actually very good-looking and has a great sense of quality. But my overall feeling is that only those who go to see the car in person can truly appreciate its quality. So my first question is, will we have some targeted actions to encourage people to see the car in person? So my first question is, this is actually my first time seeing the Mona, and its quality is very good, but people can only feel this quality when they see the car in person. So will we have some targeted actions?

Brian Gu: To achieve that, actually, there are actually a number of other catalysts, I think you should probably be aware.

Pingyu Wu: So do we have some self-action to make more people to see the car in their personally? Yes. In fact, there is a very strong engineering expense for the engineering expense of the car, and the economic expense of the car, which is a very big difference.

Speaker Change #191: self action to make that more people to see a car in partner yes

Speaker Change #192: Yes, in fact, there is quite a significant difference between the marketing of cars with strong functional performance differentiation and the marketing of economical cars.

Pingyu Wu: Jean-Bola, Jing Tai, Dong Tai, Xiaoguo, Dong Tai, Dong Tai, Pingyue Wu, Xinchi, Xiaopeng He, Pingyue Wu, Xinchi, Xiaopeng He, Pingyue Wu, Xinchi, Xiaopeng He, Pingyue Wu, Xinchi, Xiaopeng He, Pingyue Wu, Xinchi, Xiaopeng He, Pingyue Wu, Xinchi, Xiaopeng He, Pingyue Wu, Xinchi, Xiaopeng He, Pingyue Wu, Xinchi. Yes, indeed, while when it comes to sales and marketing technical approaches, it is quite different between functional or performance-oriented cars versus affordable cars.

Speaker Change #193: When Mora is in static perception

Speaker Change #193: and the dynamic sensing effect is better than all the chips of the same grade

Speaker Change #193: All must be good

Speaker Change #194: We are now in early August after the static electricity.

Speaker Change #194: The in-store effect is better than we initially expected and planned, so it aligns with what you just mentioned. After our final launch, we will do a considerable amount of online work.

James Wu: These are great lessons we've learned. So, what we have done is we have started preparing the Mona production preparation way ahead of time versus the previous cases. So, we've anticipated the supply constraints from some of the key components and we have set sufficient plans to prepare solutions for those issues that we have experienced in the past. So far, we haven't seen any finds of issues with regard to our supply chain and production capacity, so we continue to expect we will achieve the planned production and delivery as we have communicated earlier.

Speaker Change #194: Comprehensive discussion on the overall static display of offline activities

Brian Gu: One is that we are very encouraged by the Mona's debut and also the reception.

Speaker Change #194: I believe the effect of the Mona M03 will be much better than that of the G6 at the time.

He Xiaopeng: Now, Xpeng used to prioritise technology without really considering the development of other aspects, which are also very crucial for our company's success.

Speaker Change #195: Yes, indeed. Well, when it comes to sales and marketing technical approaches, it is quite different between functional or performance-oriented cards versus affordable cards. Now, when it comes to Mona, definitely its capability is more superior to most of the other comparable cards of its class, especially when it comes to aesthetic and dynamic perception capabilities. Since our rollout of the card across our different stores since the beginning of August this year, we've received a very unprecedented and very encouraging reception and responses from the consumers, which, again, resonates with what you mentioned in your question.

Pingyu Wu: Now, when it comes to MoMA, definitely its capability is more superior to most of the other comparable cars of this class, especially when it comes to aesthetic and dynamic perception capabilities. So after our official product launch, later this month, we plan to not only do a lot of offline sales and promotional activities, but we're also going to do a lot of seating online as well in order to encourage more customers to test drive it for themselves. And we believe that Mo3's sales performance will be even more superior than G6 of the same comparable sales period.

He Xiaopeng: Now, starting from the second half of this year, we're going to focus more on our commercialisation capability.

He Xiaopeng: Right now, we have both technology and our products that are doing really well.

James Wu: Your second question about the engineering expense. Yes, from the first half, if you look at our engineering expenses, it's relatively flat and comparable to last year, but as we mentioned earlier, we are entering into a pretty heavy product cycle and a lot of the engineering expenses with regard to design and product development has already kicked in. So, we expect the engineering expenses to ramp up in the second half of the year. For the full year, we still remain our earlier guidance of about $7 billion for the full year in terms of engineering expense. Thank you. Thank you, that's very clear.

He Xiaopeng: But starting from the second half of this year, we're going to see more translation of our reform and restructuring of the whole business model in order to meet the market demands and also the market competition as well.

Speaker Change #196: You have to see it and feel it, you know, to know how good a car it is.

Speaker Change #197: After our official product launch later this month, we plan to not only do a lot of offline sales and promotional activities, but we're also going to do a lot of seeding online as well in order to encourage more customers to test drive it for themselves.

Speaker Change #198: And we believe that MO3's sales performance will be even more superior than G6 of the same comparable sales period.

Pingyu Wu: So from us, I think it's very interesting.

Pingyu Wu: Okay, I'll give you one more question.

Speaker Change #199: a tos ll just ly i did hope ah

Speaker Change #200: OK, let me add something. The static and dynamic performance of the M03 is currently very good, and the quality of our experience is excellent. After our rapid delivery, I believe that word of mouth will attract more people to come and experience it.

Pingyu Wu: And also one thing that I would like to share with you is that we have a lot of experience and experience. I think this is also a very valuable thing. So, in terms of technology, we have a lot of experience and experience.

Unknown Executive: Your next question comes from Pingyu, who with side tech securities?

Speaker Change #200: night

Speaker Change #201: This low-cost price, I think this is also a very valuable thing. So in the economy cars, there are many interesting strategies that are different. OK, let me add something.

Pingyu Wu: And also one thing that I would like to add is that, because we're very confident to offer the performance and capabilities of Mo3 when it comes to static and dynamic production capability, we believe that once it's launched and officially delivered, what amount will serve to our favor, which will also allow more people to become interested in this car and actually test drive it in our dealer shop across the country. And again, you know, there are a lot of self-marketing possibilities when it comes to promoting this kind of affordable vehicles for the market.

He Xiaopeng: Cost reduction is a big aspect of it.

Speaker Change #202: And also one thing that I would like to add is that because we are very confident of the performance and capabilities of MOP when it comes to static and dynamic production capability, we believe that once it's launched and officially delivered, word of mouth will serve to our favor, which will also allow more people to become interested in this car and actually test drive it in our dealer shops across the country. And again, you know, there are a lot of sales and marketing possibilities when it comes to promoting this kind of affordable vehicles for the market. Thank you.

Unknown Executive: I have two questions. The first question is, I actually went to see the first time in the first half, and it was a very good quality, but people will only feel the quality when they see the car in person. So do we have some self-action to make more people to see the car in their personally? Yes. In fact, there is a very strong engineering expense for the engineering expense of the car, and the economic expense of the car, which is a very big difference.

Pingyu Wu: Thank you.

Speaker Change #203: Okay, thank you very much. My second question is, starting from G9, we actually made an internal adjustment in the second half of 2020, which has already been two years. You also mentioned that we have made many changes. I would like to ask if you could share specifically about our current capabilities in areas such as sales and market development. How do we evaluate our current capabilities? My second question is, we have made many internal changes since 2022. After two years, how do we now evaluate our capabilities in sales and the market? Thank you.

Pingyu Wu: My second question is we actually do a lot of in the reform from 2022. And after two years, how do we evaluate our ability in self and marketing right now?

Unknown Executive: [inaudible] Yes, indeed, while when it comes to sales and marketing technical approaches, it is quite different between functional or performance-oriented cars versus affordable cars. Now when it comes to MoMA, definitely its capability is more superior to most of the other comparable cars of this class, especially when it comes to aesthetic and dynamic perception capabilities. So after our official product launch, later this month, we plan to not only do a lot of offline sales and promotional activities, but we're also going to do a lot of seating online as well in order to encourage more customers to test drive it for themselves. And we believe that Mo3's sales performance will be even more superior than G6 of the same comparable sales period. So from us, I think it's very interesting.

Xiaopeng He: Thank you.

Xiaopeng He: In the past two years, we have started to talk about the rules, including the rules of the product industry and the rules of the industry. In the past two years, we have started to talk about the rules of the product industry, including the rules of the product industry, and the rules of the product industry, and the rules of the product industry, and the rules of the product industry, and the rules of the product industry, and the rules of the product industry, and the rules of the product industry, and the rules of the product industry, and the rules of the product industry, and the rules of the product industry.

Speaker Change #204: Yes, in the past two years, what we initially changed was the planning, including product planning.

Speaker Change #205: The entire planning of production, work, and sales of the enterprise, followed by the subsequent technology.

Speaker Change #206: Regarding the related changes in various systems such as marketing services, I believe that today, Xiaopeng's marketing services are already equipped to welcome more models.

Speaker Change #207: And in this new competition, I believe we have reached the preliminary preparation work for completing an organizational transformation, and it is gradually taking shape. In fact, everyone will see that in the third and fourth quarters of this year, we have a lot of capabilities.

Unknown Executive: In the past three years, three years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years four years, four years, four years, four years, four years, four years, four years, four years, four years four years, four years, four years, four years, four years, four years, four years, four years, four years, three years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years, four years four years, four years, four years Your next question comes from Yuqian Ding with HSBC.

Speaker Change #208: It doesn't just come from the launch of new products. New products are only a part of it. I believe more of it should come from our overall efforts.

Speaker Change #208: The improvement of overall capabilities includes the enhancement of marketing abilities. Consequently, our management of the entire sales stores, particularly the operational capabilities, will also improve.

Speaker Change #208: There have been significant changes. We have a brand new strategy for our second, third, and fourth-tier stores, and it is currently being implemented.

Brian Gu: We think given what we see in terms of the indicative order momentum, as well as the preparation that Xiaopeng just mentioned, we're very confident that Mona's delivery in the first month starting in September will likely achieve the fastest delivery record for all EV models made by EV startups.

Speaker Change #208: We have made adjustments to the overall logic and strategy for after-sales, service, and insurance. We are significantly enhancing training for sales.

Speaker Change #208: Improve the horizontal efficiency and tool capabilities of sales personnel in the marketing service. Therefore, I am very confident. What I just mentioned is only about domestic marketing service brands in China.

Brian Gu: I think we will hopefully set the record for Mona.

Speaker Change #209: I believe that as we move into a new cycle of SF Express, marketing services will be further enhanced. Our mid-term goal is to become one of the top companies in the Chinese automotive industry. This is my goal. Thank you.

Unknown Executive: Okay, I'll give you one more question. And also one thing that I would like to share with you is that we have a lot of experience and experience. I think this is also a very valuable thing. So in terms of technology, we have a lot of experience and experience. And also one thing that I would like to add is that, because we're very confident to offer the performance and capabilities of Mo3 when it comes to static and dynamic production capability, we believe that once it's launched and officially delivered, what amount will serve to our favor, which will also allow more people to become interested in this car and actually test drive it in our dealer shop across the country. And again, you know, there are a lot of self marketing possibilities when it comes to promoting this kind of affordable vehicles for the market. Thank you.

He Xiaopeng: On top of that, we also have cost restructures that are driven by our technology, by our supply chain reform, and also by our strategic partnership with Volkswagen as well.

Speaker Change #210: Thank you for the question. Two years ago, when we started our reform, we started with our planning, not only when it comes to product launch, but also the planning for the whole, you know, business, especially in sales and marketing system as well. And then we break it down to our technological development, our sales and marketing system, our customer services. And right now, I think we've achieved the first stage of success, where we actually have different aspects of improvement when it comes to our products. And also our competitiveness. And by Q3, Q4 this year, you'll begin to see how it translates into our sales performance. And it's driven not only by our product launch, which we prioritize, but also from a comprehensive development.

He Xiaopeng: So in the second half of this year, and also going into 2025 and 2036, you can expect to actually see a lot of good news when it comes to our quarter over quarter improvement as well.

He Xiaopeng: So overall, at the end of the day, we are confident that Xpeng can become a company that has a more superior GP margin than the rest of its peers.

He Xiaopeng: Thank you.

Speaker Change #210: of our all-rounded capabilities, including what we mentioned previously, sales and marketing and also customer services as well. Now, right now across the management capabilities, we also focus on developing our four management across tier two, tier three, tier four cities. We have implemented some new strategies to better serve our customers after sales and also when it comes to car insurance, et cetera. We also focus on training our sales staff to improve their overall capability and working efficiency as well. So we're very confident of our future development, not only in China, but also globally speaking. We believe that, you know, for the midterm, our target is to become, you know, one of the top players in the China automaking industry when it comes to.

Unknown Executive: My second question is we actually do a lot of in the reform from 2022. And after two years, how do we evaluate our ability in self and marketing right now? Thank you.

Speaker Change #211: our sales and marketing capability. Thank you.

Brian Gu: So, Ming, on your second question regarding the margin trend, instead of being specific on Q3, I'll just.., speak generally about the second half.

Speaker Change #212: Your next question comes from Yuqian Ding with HSBC.

Speaker Change #213: Dear management, I have two questions. The first one is about the gross margin. Could you please break down the overseas gross margin for us, including the sales volume and profit margin of the domestic wholesale segment, and compare it roughly with the median of our group? Also, I would like to confirm what Brian mentioned earlier about the mid to low 10% gross margin for the second half of this year. Does this mean that the improvement in gross margin brought by the software is mostly offset by the product mix and channel subsidies?

Yuqian Ding: Q&A session Q&A session Q&A session Q&A session Q&A session Q&A session Q&A session Q&A session Your next question comes from Yuqian Ding with HSBC.

Yuqian Ding: My first question is about the growth power margin, so can management help us to break down the growth power margin, and also the domestic part, especially the wholesale bits, with the impact of the probability over there? If not specific, at least they give us a little reference versus the group average growth power margin.

Brian Gu: So you're right, there are a couple of things that's going to take place in the second half.

Speaker Change #214: So, my first question is about the gross profit margin. So can a management help us to break down the OPC margin and also domestic part, especially the wholesale bids?

Speaker Change #215: What's the impact of the probability over there, if not specific, at least they give us a little bit of a reference versus the group average.

Yuqian Ding: And also to clarify, Brian should, in the second half of the year, roughly the margin level would be the two-loading percent state relative to stable.

Speaker Change #216: And also to clarify, Brian shared in the second half of the year, roughly the margin level would be the two low 10% stay relatively stable. Does that mean the positive benefit of the margin support coming from the software part will largely absorbed by the product mix coming down and also increasing channel discount?

James Wu: Does that mean the positive benefit of the margin support coming from the software part will largely absorb by the product mix coming down and also increasing channel discount?

James Wu: Yes, this is James. I'll try to answer a question. First, as Brian mentioned, we are expanding on a global basis pretty rapidly, so we would expect the overseas sales, both in terms of absolute volume as well as percentage of total volume, increasing in the second half compared to the first half. With regard to margin overseas, in conclusion, it is healthy, good margin.

Brian Gu: As you mentioned, the export volume and percentage is going to likely go up.

Speaker Change #216: Yes, this is James. I'll try to answer a question. First, as Brian mentioned, we are expanding on a global basis pretty rapidly, so we would expect

james will: The overseas sales, both in terms of absolute volume as well as percentage of total volume increasing in the second half compared to the first half.

Speaker Change #217: With regard to margin overseas, in conclusion, it is healthy, good margin.

James Wu: When you look at overseas markets, it's quite different when it comes to different countries. And we have different business models in different countries, including direct sales model, dealership model, as well as distribution model. So the way to understand margin and income and impact to the bottom line is quite different across these different models. But in some, I would say, from a verbal profit or contribution margin perspective for our overseas business, it is quite good, and it's helping us to improve the overall profitability of the company.

Speaker Change #218: When you look at overseas markets, right, it's...

Speaker Change #219: It's quite different when it comes to different countries.

Speaker Change #219: And we have different...

Speaker Change #219: business models in different countries including direct sales model, dealership model, as well as distribution model.

Speaker Change #219: So the way to understand margin and income...

Speaker Change #219: An impact to the bottom line is quite different across these different models.

Speaker Change #220: But in sum, I would say from a variable profit or contribution margin perspective for our overseas business, it is quite good and it's helping us to improve the overall profitability of the company.

Tina Hou: 第二个问题是关于我们的R&D费用。 previously, but looking at our first half tracking and looking at last year's first half, second half seasonality, it seems like it's tracking just below 6 billion RMB.

James Wu: Then your second question regarding the margin trend in the second half. I just wanted to clarify that we didn't really refer to the software margin for the second half; what we were talking about earlier was a variety of different components that will come into play in the second half, including higher volume mix changes in terms of overseas and domestic income. Income from the VW collaboration will likely to increase, as well as additional new vehicle models with regard to Moda and P7 Plus. So overall, as I mentioned, the margin will maintain and stable in mid to low tens, but from a vehicle margin perspective, we are anticipating moderate growth compared to what we've seen in the first half.

Tina Hou: So wondering whether we have any, like, added R&D spending into the second half.

Tina Hou: Thank you.

Speaker Change #220: Alright.

Speaker Change #221: Daniel, second question regarding the margin trend in the second half, I just wanted to clarify that, you know, we didn't really refer to the software margin for the second half. What we were talking about earlier was a variety of different components.

Speaker Change #221: that will come into play in the second half, including

Brian Gu: You know, starting Q3, most likely we will start to recognize some revenues from the EA collaboration with Volkswagen.

Brian Gu: In the meantime, we also will see significant growth in terms of volume, which will help to thin out the manufacturing DNA allocations as well as improving manufacturing cost.

Speaker Change #221: Higher volume, mixed changes in terms of overseas and domestic income from the VW collaboration will likely to increase, as well as additional new vehicle models with regard to Mona and P7 Plus.

Brian Gu: On the other side, as you mentioned, there's incremental volume coming from MONA, which we expect to be, you know, high volume model.

James Wu: Hey, Tina, this is James.

Brian Gu: And the other thing into Q4, as we introduce P7 plus, will be the first model that come out of our new platform to achieve the cost reduction that we have communicated earlier.

James Wu: I'll try to answer both of your questions.

James Wu: On MONA production capacity, obviously, we've seen what we have experienced in the past, launches with regard to G6 and X9.

James Wu: These are great lessons we've learned.

James Wu: So what we have done is we have started preparing the MONA production preparation way ahead of time versus the previous cases. So we've anticipated the supply constraints from some of the key components, and we have set sufficient plans to prepare solutions for those issues that we have experienced in the past.

Speaker Change #222: So, overall, as I mentioned, the margin will maintain and stable in mid to low tens, but from a vehicle margin perspective, we are anticipating, you know, moderate growth compared to what we've seen in the first half.

James Wu: So far, we haven't seen any signs of issues with regard to our supply chain and production, capacity.

James Wu: Thank you.

Brian Gu: We do expect the P7 plus margin to be very healthy into the double digit.

James Wu: So we continue to expect we will achieve the planned production and delivery as we have communicated earlier.

James Wu: Thank you.

James Wu: Your second question about the engineering expense, yes, from the first half, if you look at our engineering expenses, it's relatively flat and comparable to last year.

James Wu: That's very clear.

Pingyu Wu: Your next question comes from Pingyu Wu with SciTech Securities.

James Wu: But as we mentioned earlier, we are entering into a pretty heavy product cycle, and a lot of the engineering expenses with regard to design and product development has already kicked in. So we expect the engineering expenses to ramp up in the second half of the year.

Pingyu Wu: My first question is, I actually went to see Mona in the first time, and it was of very good, quality.

James Wu: For the full year, we still remain our earlier guidance of about $7 billion for the full year in terms of engineering expense.

Pingyu Wu: But people will only feel this quality when they see the car in person.

Pingyu Wu: So do we have some self-action to make more people see the car personally? Yes.

Pingyu Wu: Zang Mola在靜態的感知和動態的感知的效果都比同檔式的所有的靜頻都要好。我們現在在8月初靜電了之後,在電裡面的效果上比我們最開始規劃的想像都要好,所以跟您剛才所說的是一致的。在我們最終上市之後,我們會做相當多的線上的重討論,線下的整體的靜態展示的活動。我相信Mola M03會比G6當時的效果要遠早。我相信Mola M03會比G6當時的效果要早早早早早早早早早早早早早早早早早早早早早早早。我相信Mola M03會比G6當時的效果要早早早早早早早早早早早早早早早早早早早早早早早早早。对,在过去的两年时间里面,我们实际上最开始所变化的是规划,包括了从产品规划,整个的企业的产工销的规划,等系列的规划,然后紧接着后面的技术,在营销服等多个体系中的相关的变化。您的下一個問題來自Yuqian Ding和HSBC。我先來確認一下Brian講的,今年三半年,Mid- to Low-Teen的百分比毛利,那是不是就意味著軟件帶來的毛利率的提升大部分被產品結構和渠道的補貼抵銷?

Brian Gu: So all in all, I'd say from a trend perspective, we expect the overall margin to be stable and maintained at mid to low, as you see in the second quarter.

Brian Gu: Thanks.

Yuqian Ding: 是的,我是James,我會嘗試回答您的問題。首先,就像Brian所說的,我們在全球的層面上是很快地在增長的,所以我們會期望國內的銷售, 包括直接銷售模式、店鋪模式和分配模式,所以理解毛利率和收入的影響在這些不同的模式之間是相當不一樣的。但總的來說,從我們國內的生意的角度來看,毛利率或貢獻是相當不錯的, 這對於我們國內的生意的貢獻或貢獻範圍來說是相當不錯的,並且幫助我們提升公司的整體利潤。然後,您的第二條問題是關於第二半的毛利趨勢。我想先強調一下,我們並沒有在第二半的軟件範圍提到毛利率。我們剛才談到的一系列不同的元素將會在第二半的軟件範圍中發揮作用, 包括在國內和在國家層面的高度、混合改變, VW的合作收入將有可能增加, 以及關於Mona和P7 Plus的新車型模式。總的來說,如我剛才提到的, 軟件範圍將保持穩定,並且避免低端, 但從汽車的軟件範圍來看, 我們預期將有較早期的增長, 相比我們在第一半的軟件範圍中所看到的。第二个问题我想请教,关于智能驾驶的差异化,有没有一种可能,现在大家都在刷大数据算法算力和工程能力的闭环,那技术函数会不会进入一个比较平缓的,斜率相对来说比较平缓的阶段,都能开,但未必能无死角的都好开。但是它可能不会在特殊场景去解决,比如说某一个转角可能有很多流浪的猫,那么在这种场景,它可能不像原来的自动驾驶里面,它可能会定一个规则,说这里要绕一绕,因为有很多流浪猫。但是最终我们认为端乐端在我们现在来看,它的进步的速度会快速地打败原来的L3,中国的L3或者L4的自动驾驶能力。这是一个简单的比喻。谢谢。这种方法的主要挑战是在许多角落的情况下,你必须一步一步地检测,而客户的经验和驾驶经验本身并不完美。而在规矩的方法中,可能有一个规矩,就是你必须避免射击那些动物。因此,有不同的方法,但我相信这些AI或N2N模式的发展能力将比之前的规矩方法更加重要和更快。我希望我回答了您的问题,谢谢。这就结束了我们的询问和回答课程。我将转发电话回到公司,为您做一个结尾。感谢您再次参与我们的会议。如果您有任何疑问,请随时联系XFAMC的投资关系团队,并查询我们的PSM金融交流网站。谢谢。这就结束了今天的会议。您现在可以打开您的电话。谢谢。编号-0108283170326005, 编号-01083170326005

Unknown Executive: Hello. Thank you.

Brian Gu: 謝謝,那我這邊還有一個問題,就是因為整個GGI開始就是第一款就是走純視覺的這個產品,那想要了解一下就是說純視覺的話到底有多難,那以對競爭對手來講容易達成,那或者是說以我們這個在XMGP上面的表現的話,小朋友們覺得就是這個純視覺的這個方案,大概多少時間能夠達到就是跟現在這個激光雷達一樣的一個表現的XMGP, So the P7 Plus will be your first model to use the Pure Vision solution.

Speaker Change #223: Thank you.

Speaker Change #224: The second question I would like to ask is about the differentiation in intelligent driving. Is there a possibility that, while everyone is currently focusing on big data algorithms, computing power, and engineering capabilities, the technological function might enter a relatively flat and harmonious stage? In this stage, all cars can drive, but not necessarily all drive well without blind spots. If next year is the 'iPhone moment,' how might the real inflection point and emergent explosion occur? Could the management share more insights with us? Is it because we have the capability to sell more cars, or is it that after the technology matures, we have found more ways to monetize it?

Unknown Executive: So the second question is really about the autonomous driving differentiation. So autonomous driving technology everyone is developing that everyone is talking about to leveraging the big data loop engineering capability and processing powers to get it down. But the industry is running into the stage that the technology development curve is running flatish in terms of the development slope.

James Wu: My first question is about the growth power margin, so can management help us to break down the growth power margin, and also the domestic part, especially the wholesale bits, with the impact of the probability over there, if not specific, at least they give us a little reference versus the group average growth power margin. And also to clarify, Brian should, in the second half of the year, roughly the margin level would be the two-loading percent state relative to stable. Does that mean the positive benefit of the margin support coming from the software part will largely absorb by the product mix coming down and also increasing channel discount?

Speaker Change #225: So, the second question is really about autonomous driving differentiation.

Speaker Change #226: So autonomous driving technology, everyone is developing that. Everyone is talking about leveraging the big data loop, engineering capability, and processing powers to get it down. But will the industry run into the stage that the technology development curve is running flattish in terms of the development slope?

Unknown Executive: So everyone can do the autonomous driving service, but no one is really sticking out.

unknown: So in your view, what would be the progress for you to improve your capability in autonomous driving through this Pure Vision technology?

Unknown Executive: So if we're talking about next year, is the iPhone moment, Chadwicky moment, so how could you help us to envision how the singularity and the breakouts could happen? Does that mean because we're getting mature in the technology, so we're selling more vehicles? Or, because of the technology, it's getting better. We are finding diversified, a revenue model.

Speaker Change #226: So everyone can do the autonomous driving service, but no one is really sticking out.

Speaker Change #227: So if we're talking about next year is the iPhone moment, Chad's GPU moment, so how, could you help us to envision how the singularity and the breakout could happen? Does that mean because we're getting mature in technology, so we're selling more vehicles, or because of the technology is getting better, we are finding diversified revenue model? Thank you.

James Wu: Yes, this is James, I'll try to answer a question. First, as Brian mentioned, we are expanding on the global basis pretty rapidly, so we would expect the overseas sales both in terms of absolute volume as well as percentage of total volume increasing in the second half compared to the first half. With regard to margin overseas, in conclusion it is healthy, good margin. When you look at overseas markets, it's quite different when it comes to different countries.

Xiaopeng He: Thank you. Yes, I want to use the technology to say that it's still quite difficult. I often think that in the past, you can think that it's one of the top four high-end systems that can be easily used as a rule.

unknown: 嗯,對,因為更多的事情呢,我會再, 后面的品牌发布会以及1024做更多的分享所以更具体的歡迎大家, 但是我特别想补充一下就是说我们在削减了小姐的高山, 整體基礎上不光能夠相當程度的降分,而且我們新的, 端的端的模型謝謝, 會帶來更新更強力的这一块的具体还是要等后面的发布会。 Well, actually, regarding your question, I would say that more details to be disclosed on the future product launch conferences and also on our 1024 Tech Day, please stay tuned.

Speaker Change #228: ah good sh so you

Speaker Change #229: It's still quite difficult to explain non-technical logic.

unknown: But what I can say for now is that first of all, without relying on sensors and high definition map, that already in itself, in and of itself, allow us to reduce our cost significantly.

Speaker Change #230: I'll give it a try

Speaker Change #231: oh would you not

Speaker Change #232: You can think of previous autonomous driving as being in a

Speaker Change #232: Under the guidance of a high-definition map from a god's-eye view, it is simple to use rules to achieve effects. Its biggest problem is

Xiaopeng He: The biggest problem is that there are a lot of different types of systems. That's why we call it the color case. The same is the client's experience. For example, if you go to China, there are many times when the speed is at 40 to 50 kmph, and the speed is very low. So if you use your eyes to see it, it's not like it's a human. And the logic is that, in the past, the experience of learning and understanding is very useful.

James Wu: And we have different business models in different countries, including direct sales model, dealership model, as well as distribution model. So the way to understand margin and income and impact to the bottom line is quite different across these different models. But in some, I would say, from a verbal profit or contribution margin perspective for our overseas business, it is quite good and it's helping us to improve the overall profitability of the company.

Speaker Change #232: There are too many of these abnormal scenarios, which we commonly refer to as color cases, that cannot be well resolved. At the same time, the customer experience, for example, today, if you are working on autonomous driving in China, many times they...

Speaker Change #233: The speed is only between 40 to 50 kilometers per hour, and the turns are very mechanical. If you look with your eyes, it doesn't seem like a person, but rather

James Wu: Then your second question regarding the margin trend in the second half. I just wanted to clarify that we didn't really refer to the software margin for the second half, what we were talking about earlier was a variety of different components that will come into play in the second half, including higher volume mix changes in terms of overseas and domestic income. Income from the VW collaboration will likely to increase as well as additional new vehicle models with regard to Moda and P7 Plus. So overall, as I mentioned, the margin will maintain and stable in mid to low tens, but from a vehicle margin perspective, we are anticipating moderate growth compared to what we've seen in the first half.

Speaker Change #233: don not t the noi sure

Brian Gu: We anticipate the delivery from overseas will probably be above 15% in the third quarter, which also diversifies our overall order intake. That give us further confidence in our delivery objectives that we set for third quarter and the fourth quarter will be achievable.

Speaker Change #233: It is in various regions

Speaker Change #234: You don't necessarily have to learn from the local experienced drivers. Remember, they need to be excellent experienced drivers.

Xiaopeng He: Remember that you have to learn how to open your own way of learning, how to open your own way of learning. It's a very simple and safe experience, but it may not be in particular to solve it.

Speaker Change #234: Use this method to drive or learn your own way of driving to create a smooth and safe experience, but it may not work in special scenarios.

Xiaopeng He: For example, there may be some kind of cold-blooded cat in this kind of situation. It may not be like the original price. It may be the first rule. It may not be like the original price. It may not be in particular to solve it.

Speaker Change #235: For example, there might be something around a certain corner.

Speaker Change #236: There are many stray cats, so in this scenario, it might not be like the original autonomous driving system where it might set a rule to go around here because there are many stray cats.

Speaker Change #237: However, in the end, we believe that the speed of progress of Duanle Duan will quickly surpass the original L3 or L4 autonomous driving capabilities in China. This is a simple analogy.

Unknown Executive: That's a good question as well, the XNGP were high-level add-ins.

Unknown Executive: Hello. Thank you.

Xiaopeng He: Well, it would be very challenging for me to try to respond to your questions without involving technical terms or language, but I'll do my best. First of all, the previous model or technological approach that was widely adopted in this industry for ADF is the so-called all-knowing perspective, relying on high-definition maps and also rule-based architecture to develop their ADF autonomous driving capability. Now the main challenge for that approach is that you have actually numerous corner cases where you actually have to examine them one by one.

Speaker Change #237: chesen

Speaker Change #238: Well, it will be very challenging for me to try to respond to your question without involving, you know, technical terms or language, but I'll do my best.

unknown: And on the other hand, with the adoption of the end-to-end AI models, using the vision-based technological approach allow us to greatly enhance our ADAS capability as well.

unknown: Again, if you're interested, please stay tuned for more details in our future events.

Speaker Change #239: First of all, the previous model or technological approach that was widely adopted in the industry for ADAS is the so-called all-knowing perspective, relying on high-definition maps and also rule-based architecture to develop their ADAS autonomous driving capability. Now, the main challenge for that approach is that you have actually numerous corner cases where you actually have to examine them one by one, and the customer experience, the driving experience itself is not perfect. For example, most of the ADAS vehicles on the market available right now is driving at about 40 to 50 kilometers per hour, and also their lane changes and turn making look very, very robotic. It's not a human-like kind of driving experience.

Bin Wang: 谢谢, Your next question comes from Bin Wang with Deutsche Bank.

Brian Gu: 各位领导好,我的问题更关注于这个指引的细节就是如果假设我们实现了一个45,000的36指引的话也就是说我们9月份实现2万台那么这个2万台分产品的结构会是怎么样的这是第一个问题我翻译一下 assume we achieve the high end of the 45,000 units in the third quarter which means in the September we can achieve more than 20k so can you provide a breakdown by products specifically how much more in the September if we achieve the high end thank you, Hey, Bin, this is Brian.

Brian Gu: At the moment, we do not provide a breakdown of a specific model mix for the delivery of coming months.

Brian Gu: But I would say, as I said before, we anticipate very strong delivery for Mona in September, we likely achieve the record for EV delivery by EV startup or new players, as you can imagine.

Brian Gu: So we hope to achieve that record.

Brian Gu: Secondly, is that it also will consist of a significant percentage from overseas, which will be mostly G9 and G6.

Brian Gu: As you know, that G6 is starting delivery this month and next month.

Brian Gu: So that will also mean there's a contribution from these mainstream models from our lineup.

Brian Gu: So other than that, I don't think we probably provide any more details on the mix.

Bin Wang: 好,我这个问题呢是关于明年的,我们公司说会在未来有非常强劲的产品周期,能不能给我们提一下2025年我们会有哪些产品,特别是那些走量的产品?

Brian Gu: Thank you.

Brian Gu: 我的第二个问题是关于新产品,您提到的维修摩托车,您能不能说一点点关于下一年的产品?谢谢。 Bin, again, on this call, we're not able to provide specific guidance on model launches next year or number of new as well as updated models.

Brian Gu: I think we will provide that information probably in a later stage.

Brian Gu: But what we can say, as we said before, as well, is that we anticipate this fourth quarter start a very strong product cycle.

Unknown Executive: The constant investment in NTM large models has the further enhanced expense of systematic authorities and AI smart driving technology, and much faster than nationwide throughout of XNGP.

Unknown Executive: So the second question is really about the autonomous driving differentiation. So autonomous driving technology everyone is developing that everyone is talking about to leveraging the big data loop engineering capability and processing powers to get it down. But the industry running into the stage that the technology development curve is running flatish in terms of the development slope.

Brian Gu: So we'll be many, I would say many is more than what we current this year.

Paul Gong: Your next question comes from Paul Gong with UBS.

Xiaopeng He: And the customer experience is the driving experience itself is not perfect. For example, most of the ADF vehicles on the market available right now is driving at about 40 to 50 kilometers per hour, and also their lay changes and turn making looks very, very robotic. It's not a human-like kind of driving experience; whereas the AI approach or N2NI models approach allow us to actually learn from excellent, and I want to focus on the executive here, excellent or high quality experience driver or human-like driver, someone like yourself. You know when it comes to the driving habit and the performance across different areas of the country, but obviously they also encountered a challenge of solving different corner cases because it's not rule-based.

Brian Gu: That has launched this year.

Brian Gu: So more than this year, definitely, as a number of vehicles for the new models and revised or updated models for next two years.

Brian Gu: OK, thank you very much.

Unknown Executive: However, when it comes to the return of the investment, we expect such a massive and constant investment could transfer it into a real barrier to peer competitors and transfer it into a meaningful off-site to expense new car sales.

Brian Gu: 感谢接受我的提问,我的第一个问题是关于这种出口的这一边的,就很高兴看到公司在往出口这种方向在推,但当前呢就是说往着欧洲的时候,马上就有额外的关税的一个来加入,往着其他的一些市场的话也都会面临越来越激烈的,其他中国车企的一个来竞争,我们在这些挑战的话我们是如何来面对?

Paul Gong: 所以我的第一个问题是关于出口的观点,在这一阶段我们很高兴看到公司在往出口的方向,但是我们也看到了增长的保护主义,包括将来的额外关税,我们也看到了在其他市场上增长的竞争,甚至在中国的车企中也在增长,您怎么看待这些挑战,如何克服它?

Brian Gu: Hey, Paul, this is Brian again.

Unknown Executive: Would there be any sideposts or metric weekend monitors in the following quarters?

Brian Gu: Very good question.

Brian Gu: I think you're right.

Brian Gu: Obviously, global opportunity is immense.

Brian Gu: But also, you know, there was a lot of challenges along the way.

Unknown Executive: That's my second question.

Unknown Executive: So everyone can do the autonomous driving service, but no one is really sticking out. So if we're talking about next year, is the iPhone moment, Chadwicky moment, so how could you help us to envision how the singularity and the breakouts could happen? Does that mean because we're getting mature in the technology, so we're selling more vehicles? Or because of the technology, it's getting better. We are finding diversified, a revenue model. Thank you.

Brian Gu: We also noticed the tariff updates, you know, in the European market, etc.

Brian Gu: But what I would say a few points.

Speaker Change #239: or end-to-end AI models approach allow us to actually learn from excellent, and I want to focus on the adjective here, excellent or high-quality experienced driver or human-like driver, someone like yourself, you know, when it comes to the driving habit and the performance across different areas of the country. But obviously, they also encountered a challenge of solving different corner cases because it's not rule-based. For example, if you encounter stray animals, for example, a stray cat in the world, you know, on the road, it's not going to try to avoid it because it's not something that they've learned before, whereas in a rule-based approach, maybe there is a rule there that states that you have to avoid hitting those animals. So there are pros and cons to different approaches, but I believe the development of the capabilities.

Unknown Executive: Thank you.

Brian Gu: One is that we so far has been very successfully launching our product in Europe as well as other global markets, positioning those products as premium EV brand.

Brian Gu: If you look at our sale price of G6 as well as G9 in global markets, which is available today already, you can see that we actually are priced higher than some of the comparable competitors we actually face in China, which means that we actually can achieve a better and more premium position for global markets.

Brian Gu: Secondly, is that in Europe specifically, we obviously have to deal with the tariff.

Brian Gu: But I think given, you know, the efforts by our team, the pricing, as I mentioned, as well as, you know, using a collaborative relationship with local partners, we still can achieve, I would say, good marginal contribution from those sales.

Brian Gu: So we are actually dealing with that at the moment, which already started, I think, the regime back in July.

Brian Gu: 非常感谢,那我第二个问题来说的话,是关于这个Robotaxi的,就我记得就几年前的话,曾经一度就小鹏公司应该还是提过有打算出Robotaxi,然后后来因为一些计划的一些变动,然后就没有再进一步的推行这一块,我们也留意到就刚才所提到的,你们希望的就是量产的车明年下半年能够达到海外Robotaxi的这么一个那效果,但是我们就是从Robotaxi的一个应用来说,就能否跟我们分享一下,为什么就是作为自动驾驶的一个领先者,反而就是对于做Robotaxi的一个热情并不高涨。所以我们会使用这些模式来达到海外Robotaxi的相似效果,在2025年的第二半,但是我想听听你们为什么作为自动驾驶的业务领先者,你们并不是很喜欢Robotaxi的运营。這是一個非常好的問題實際上,現在在中國和在全球做Local Taxi他們的技術路線, 和我們現在用的端端的大模型路線都是差別非常大的他們更關注在一個小的區域內能夠把體驗, 安全居民我們可能更關注在一個痊癒的範圍內能夠把更內人的體驗, 所以實際上從方向上是有差異的那么第二点呢,对于小鹏来说,我们认为,因为小鹏之前曾经运营过, 字幕由Amara.org社区提供还非常关注, 字幕由Amara.org社区提供除了政治法官,除了老百姓, 所以我们也认为今天绝大部分的罗布泰在印鑒, 沒有做到既能夠又能够好, 剪刀石頭布, Thank you, this is a very good question.

Brian Gu: So we have been dealing with this in the last month and a half already.

Brian Gu: And also we see significant growth opportunities in other parts of the world.

Brian Gu: So with additional sort of product launch, as well as better, I would say, more premium positioning of our product globally, as well as, you know, building extensive relationship and distribution channels around the world, we are confident that we can achieve the volume as well as some of the profit contributions we anticipate from global operations.

Xiaopeng He: For example, if you encounter stray animals, for example, a stray cat in the world, on the road, it's not going to try to avoid it because it's not something that they've learned before; whereas in a rule-based approach, maybe there is a rule there that states that you have to avoid eating those animals. So there are pros and cons to different approaches, but I believe the development of the capability based on this AI N2NI model is going to be a lot more significant and a lot quicker than the previous rule-based approach.

Unknown Executive: Yes, I want to use the technology to say that it's still quite difficult. I often think that in the past, you can think that it's one of the top four high-end systems that can be easily used as a rule. The biggest problem is that there are a lot of different types of systems. That's why we call it the color case. The same is the client's experience. For example, if you go to China, there are many times when the speed is at 40 to 50 kmph, and the speed is very low, so if you use your eyes to see it, it's not like it's a human.

Brian Gu: Actually, when it comes to RoboTaxi development, not only in China, but globally speaking, the technological approach is quite different from what we adopt right now, which is the end-to-end AI models architecture.

Brian Gu: Now, the focus of RoboTaxi right now in the market is to focus on offering safe and good customer experience within a small area or region, whereas our target is to offer a full domain or all domain kind of human-like driving experience.

Brian Gu: That definitely defined the differences between our focus right now versus RoboTaxi.

Brian Gu: And the other thing is that, based on our previous experience of operating on multiple vehicles, we understand that right now, when it comes to the industry target for RoboTaxi, cost still is the number one priority, apart from regulation and also the mass adoption rate and penetration of this technology.

Brian Gu: The majority of RoboTaxi developers right now do not really balance these two aspects really well, namely cost and customer experience.

Brian Gu: 法定人數不足, 后面可以说几个补充的点我觉得第一个呢这个小鹏的确在规划自己的RoboTest, 但是我们认为Lobotec跟L4的车都有差距第二點,小鵬不願意進入Lobotomy, 郭文貴議員我們把車做好,這樣我們可以跟全球的運營商來進行合作。字幕由Amara.org社区提供努布泰迪加麥克勒斯, 在 L4 體系的一個巨大的新生態跟我們簡簡單單的等我們後面再有時間再跟大家分享, Now, there are several things that we can comment on when it comes to RoboTaxi.

Brian Gu: First of all, we're definitely considering the future for developing RoboTaxi.

Brian Gu: But this is very, very different from the L4 HS capability or experience.

Brian Gu: The second thing is that we're not considering involving ourselves in the operation of RoboTaxi, but rather focusing on producing, you know, high quality products or vehicles, RoboTaxi vehicles with the partnership with vehicle mobility operators in the future, globally speaking.

Brian Gu: And another thing that I want to comment here is that, you know, RoboTaxi, when it comes to development of RoboTaxi, Xpeng definitely has our unique kind of differentiation and consideration as well.

Speaker Change #239: based on this AI end-to-end model is going to be a lot more significant and a lot quicker than the previous rule based approach. I hope I answered your question. Thank you.

Brian Gu: We've put in a lot of thought into the future of RoboTaxi.

Brian Gu: And it's actually quite different from, you know, the pure ADAS for everyday use.

Unknown Executive: I hope I answered your question. Thank you.

Brian Gu: Thank you.

Brian Gu: And it's a different way, a different kind of mobility.

Brian Gu: Thank you very much.

Brian Gu: And in the future, when time allows, we're going to share more of our thoughts in this regard.

Brian Gu: That's quite helpful.

Unknown Executive: That does conclude our question and suggestion.

Brian Gu: Thank you.

Unknown Executive: I'd like to turn the call back over to the company for closing remarks. Thank you once again for joining us today. If you have further questions, please feel free to contact the Excellence in Medical Relations team via the contact information provided on our website for the Pearson Financial Communications. Thank you.

Speaker Change #240: That does conclude our question and answer session. I'd like to turn the call back over to the company for closing remarks.

Tina Hou: Your next question comes from Tina.

unknown: How is Goldman Sachs?

James Wu: Thank you.

unknown: 感谢管理层回答我的问题, 我有两个问题,第一个是关于这个咱们Mona M03,想问一下咱们现在的一个这个产能的一个准备大概是一个什么样的然后因为, 包括G6咱们主要是因为这个供应链上的比如说像激光雷达影響了一些交付的決策, 但是M03應該沒有激光雷達,所以說這個我們ramp up起來的話應該會很快,所以想問一下咱們產能大致的一個準備,然後第二個問題是關於咱們的研發費用,之前的guidance大概在這個7到7.5個billion,但是如果我們看到今年就是上半年的一個tracking,然後再看看就全年的一個季節來看的話今年可能也就在6個倍量不到所以想問一下下半年是不是有一些什麼就是更多的研發支出我就這兩個, 那我翻譯一下, Because previously with G6, I think the supply bottleneck was mainly related to the LiDAR.

Pingyue Wu: Your next question comes from Pingyue Wu with SciTech Securities.

Tina Hou: However, with M03, we don't have LiDAR, so this should have much faster ramp-up.

Pingyue Wu: 各位观众朋友们大家好,感谢这个提问的机会,我有两个问题,第一个是关于Mona,因为我也是第一时间去看了这个Mona的实车,这个车其实很好看,而且很有质感,但是我总体的感觉是,其实只有去现场去看到这个实车的人才能去感受到这个车的品质,所以我的第一个问题就是说,我们是否会有一些针对性的一些动作,然后来让大家去这个现场去看这个车。所以我的第一个问题是,我其实是第一次去看Mona的,它的质感非常好,但是人们只会感受到这种质感当他们在现场看到车,所以我们是否会有一些针对性的一些动作来让更多的人在现场看到车?

Tina Hou: So just wondering how much are we preparing for in the next few months?

He Xiaopeng: 对,实际上在, 有很强的功能性能差异化的车的营销和經濟型的車的營銷上是有蠻大的差異的, 桑玛拉在静态的感觉动态的感觉和效果都比同档次的所有来得强, 我們現在在八月初進店了之後,在店裏面的效果上比我們還要好。比我們現在的規劃都要好, 在我们最终上市之后,我们会做相当多的线上购买。這個綜合討論線下的, 我相信莫拉MD3會贏第六檔次的效果, Yes, indeed.

Tina Hou: Second question is regarding our R&D expense.

Speaker Change #241: Thank you once again for joining us today. If you have further questions, please feel free to contact Xpeng's investor relations team via the contact information provided on our website for the Pearson Financial Communications. Thank you.

He Xiaopeng: Well, when it comes to sales and marketing technical approaches, it is quite different between functional or performance-oriented cars versus affordable cars.

Tina Hou: So we got it for three to three.

He Xiaopeng: Now, when it comes to MONA, definitely its capability is more superior to most of the other comparable cars of its class, especially when it comes to aesthetic and dynamic perception capabilities.

Tina Hou: Oh, sorry, seven to seven point five billion.

He Xiaopeng: Since our rollout of the car across our different stores since the beginning of August this year, we've received a very unprecedented and very encouraging reception and responses from the consumers, which, again, resonates with what you mentioned in your question.

Tina Hou: Wen, Meng dissolving world, Liuzhou Hong Dance Group, Lou Yin, Deng Xiaoping, West English Technology Ministry, Taiwan Securities Intelligenceeda, Xu, Autonomous Exercises, Financial Analytics, Xinhua Online Exchange, Tencent Philippine, Anycom, Zeng Colombia, Quinlan Material, Polka X1 Media, Hong Kong, CurrencyEx, Satellite Communications, Hong Kong, Microsoft Circle运, Social Media, Bank, XYZ Technologies, Magic Business, Website, ISTX, Star, Hey, Tina, this is James.

He Xiaopeng: You have to see it and feel it to know how good a car it is. So after our official product launch later this month, we plan to not only do a lot of offline sales and promotional activities, but we're also going to do a lot of seeding online as well in order to encourage more customers to test drive it for themselves.

James Wu: I'll try to answer both of your questions.

He Xiaopeng: 我們相信M03的銷售表現會比G6的相似銷售期更為優秀, 那麽從我們目前…… OK,我補一句,就是說M03現在的靜態跟動態,我們的體驗, 我們在快速的交付之後,我相信口碑也會促進更多人來進店我覺得這也是, 所以在经济型的汽车里面有很多有趣的东西, And also one thing that I would like to add is that because we are very confident of the performance and capabilities of MLP when it comes to static and dynamic production capability, we believe that once it's launched and officially delivered, word of mouth will serve to our favor, which will also allow more people to become interested in this car and actually test drive it in our dealer shops across the country.

James Wu: On MONA production capacity, obviously, we've seen what we have experienced in the past launches with regard to G6 and X9.

He Xiaopeng: And again, you know, there are a lot of sales and marketing possibilities when it comes to promoting this kind of affordable vehicles for the market.

James Wu: These are great lessons we've learned.

James Wu: So what we have done is we have started preparing the MONA production preparation way ahead of time versus the previous. So we've anticipated the, supply constraints from some of the key components, and we have set sufficient plans to prepare solutions for those issues that we have experienced in the past.

He Xiaopeng: Thank you.

James Wu: So far, we haven't seen any signs of issues with regard to our supply chain and production capacity, so we continue to expect we will achieve the planned production and delivery as we have communicated earlier.

He Xiaopeng: 好的,非常感谢,第二个问题是,如果从G9的开始算的话, 其实从2020年下半年我们做一个内部的调整, 其实已经经历了两年的时间, 其实您也提到了我们做了很多的改变, 我想请您能不能分享一下我们具体在比如说销售以及营造能力上, 可能我们现在怎么评价当前的能力吧。我的第二个问题是,我们实际上做了很多内部的改变从2022年开始, 然后两年后我们如何评价我们在销售和市场上的能力,谢谢。对,在过去的两年时间里面,我们实际上最开始所变化的是规划,包括了从产品规划,这一个…… 整個的企業的產工銷的規劃, 然后紧接着后面的记忆在營銷部等多天, 相關的電話我認為今天我認為小朋友營銷服務准备迎接更多车辆, 這個全新的競爭裡面的我認為是達到了一個初步的組織的變革的完成並且正在逐漸, 實際上,大家會看到,包括今年的三季度、四季度,我們有很多的能力。新唐人號只是來自於一部分而已我認為更多的要來自於我們整個的綜合的, 字幕由Amara.org社区提供那麼我們對於整個銷售門店的管理特別包括經營, 我們對於二、三、四線的文殿有全新的策略, 我們對於整個售後跟服務和保險的邏輯策略我們做了我們正在大幅度增強對銷售的, 提高销售人员在行销服里面横向的效率所以我算是非常有信心,我剛才講的還僅僅是中國國內的, 我认为随着在后面我们进入到全新的顺丰的这个周期里面後面會進一步不斷的增加, 這樣做到中國汽車最Top的唐秦,鍾清武, Thank you for the question.

James Wu: 你的第二條問題是關於, Engineering expense, yes, from the first half, if you look at our engineering expenses, It's relatively flat and comparable to last year.

Unknown Executive: This concludes today's conference call. You may now disconnect your line. Thank you.

He Xiaopeng: Two years ago when we started our reform, we started with our planning, not only when it comes to product launch, but also the planning for the whole, you know, business, especially in sales and marketing system as well.

James Wu: But as we mentioned earlier, we are entering into a pretty heavy product cycle. And a lot of the engineering expenses with regard to design and product development has already kicked in. So we expect the engineering expenses to ramp up in the second half of the year.

He Xiaopeng: And then we break it down to our technological development, our sales and marketing system, our customer services.

James Wu: For the full year, we still remain our earlier guidance of about $7 billion for the full year in terms of engineering expense.

He Xiaopeng: And right now, I think we've achieved the first stage of success, where we actually have different aspects of improvement when it comes to our products and also our competitiveness.

He Xiaopeng: And by Q3, Q4 this year, you'll begin to see how it translates into our sales performance.

He Xiaopeng: Thank you.

He Xiaopeng: And it's driven not only by our product launch, which we prioritized, but also from a comprehensive development of our all-rounded capabilities, including what we mentioned previously, sales and marketing, and also customer services as well.

Yuqian Ding: Your next question comes from Yuqian Ding with HSBC.

He Xiaopeng: Now, right now across the management capabilities, we also focus on developing our floor management across Tier 2, Tier 3, Tier 4 cities.

Yuqian Ding: 管理层好,我有两个问题,第一个想请教关于毛利率,可不可以给我们拆分一下那个海外毛利率,包括国内批发部分的这个销量和利润率,大致的跟我们集团的这个中值的这个比较,然后刚才也想再确认一下Brian讲的,今年下半年mid to low 10%的这个毛利,那是不是就意味着软件带来的这个毛利率的提升,大部分被产品结构和这个渠道的这个补贴抵消?

He Xiaopeng: We have implemented some new strategies to better serve our customers, you know, after sales, and also when it comes to car insurance, etc.

Yuqian Ding: So, my first question is about the gross profit margin.

He Xiaopeng: We also focus on training our sales staff to improve their overall capability and working efficiency as well.

Yuqian Ding: So, can management help us to break down the OPC margin and also domestic part, especially the wholesale bids, what's the impact of the profitability over there?

He Xiaopeng: So we're very confident of our future development, not only in China, but also globally speaking.

Yuqian Ding: If not specific, at least could they give us a little bit of reference versus the group average gross profit margin?

He Xiaopeng: We believe that, you know, in the midterm, our target is to become, you know, one of the top players in the China automaking industry when it comes to our sales and marketing capability.

Yuqian Ding: And also, to clarify, Brian shared in the second half of the year, roughly the margin level would be to low 10%, stay relatively stable.

Yuqian Ding: Does that mean the positive benefit of the margin support coming from the software part will largely absorbed by the product mix coming down and also increasing channel discount?

James Wu: Yes, this is James.

James Wu: I'll try to answer a question.

Unknown Executive: And the logic is that in the past, the experience of learning and understanding is very useful. Remember that you have to learn how to open your own way of learning, how to open your own way of learning. It's a very simple and safe experience, but it may not be in particular to solve it. For example, there may be some kind of cold-blooded cat in this kind of situation. It may not be like the original price. It may be the first rule.

Unknown Executive: [inaudible] Thanks a lot for sharing those details and looking forward to the manifesto to take off throughout the rest of the week.

Unknown Executive: [inaudible] Well, it would be very challenging for me to try to respond to your questions without involving technical terms or language, but I'll do my best. First of all, the previous model or technological approach that was widely adopted in this industry for ADF is the so-called all-knowing perspective, relying on high-definition maps and also rule-based architecture to develop their ADF autonomous driving capability. Now the main challenge for that approach is that you have actually numerous corner cases where you actually have to examine them one by one.

Unknown Executive: Thank you.

Unknown Executive: Thank you so much for watching this video, please subscribe, like, and share this video with your friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends, friends

Ling Xun Li: Your next question comes from Ling Xun Li with Bank of America.

Ling Xun Li: Hello, Mr. Hong and Mr. Li, good evening.

Unknown Executive: And the customer experience is the driving experience itself is not perfect. For example, most of the ADF vehicles on the market available right now is driving at about 40 to 50 kilometers per hour and also their lay changes and turn making looks very, very robotic. It's not a human-like kind of driving experience whereas the AI approach or N2NI models approach allow us to actually learn from excellent and I want to focus on the executive here excellent or high quality experience driver or human-like driver someone like yourself.

Ling Xun Li: I have two questions.

Ling Xun Li: The first question is related to the management of the management of the Ministry of Finance and the Ministry of Finance and the Ministry of Finance.

Ling Xun Li: [inaudible] and the Ministry of Finance and the Ministry of Finance[inaudible] and the Ministry of Finance and the Ministry of Finance and[inaudible] So, main on your second question regarding the margin trend, instead of being specific on Q3, I'll just speak generally about the second half.

Unknown Executive: You know when it comes to the driving habit and the performance across different areas of the country but obviously they also encountered a challenge of solving different corner cases because it's not rule-based. For example, if you encounter stray animals, for example, a stray cat in the world, on the road it's not going to try to avoid it because it's not something that they've learned before whereas in a rule-based approach maybe there is a rule there that states that you have to avoid eating those animals.

Ling Xun Li: So, you're right, there are a couple of things that are going to take place in the second half.

Ling Xun Li: As you mentioned, the export volume and percentages are going to likely go up.

Unknown Executive: So there are pros and cons to different approaches but I believe the development of the capability based on this AI N2NI model is going to be a lot more significant and a lot quicker than the previous rule-based approach. I hope I answered your question. Thank you.

Unknown Executive: That does conclude our question and suggestion. I'd like to turn the call back over to the company for closing remarks. Thank you once again for joining us today. If you have further questions, please feel free to contact Excellence in Medical Relations team via the contact information provided on our website for the Pearson financial communications. Thank you. This concludes today's conference call. You may now disconnect your line. Thank you. Xiaopeng He, Jing Chang, Xiaopeng[inaudible] Xiaopeng He, Jing Chang, Xiaopeng He, Jing Chang, Xiaopeng Xiaopeng He, Jing Chang, Xiaopeng Xiaopeng He, Jing Chang, Xiaopeng He, Jing Chang, Xiaopeng[inaudible] He, Jing Chang, Xiaopeng He, Jing Chang

Ling Xun Li: Starting Q3, most likely we will start to recognize some revenues from the EAA collaboration with Volkswagen.

Ling Xun Li: In the meantime, we also will see significant growth in terms of volume, which will help to signal the manufacturing DNA allocations as well as improving manufacturing cost.

Ling Xun Li: On the other side, as you mentioned, there's incremental volume coming from Mona, which we expect to be a high volume model.

Ling Xun Li: And the other thing in Q4, as we introduce P7 plus, which will be the first model that come out of our new platform to achieve the cost reduction that we have communicated earlier.

Ling Xun Li: We do expect the P7 plus margin to be very healthy into the double digits.

Ling Xun Li: So, all in all, I would say from a trend perspective, we expect the overall margin to be stable and maintained at mid to low teens, as you see in the second quarter.

Ling Xun Li: Thanks.

Unknown Executive: The P7 plus, the P7 plus, the P7 plus, the first model to use the PO3 region,[inaudible] Gu, Xinchi Yin.

Unknown Executive: But what I can say for now is that first of all, without relying on centers and I find a finishing map, that already in itself allowed itself allow us to reduce our cost significantly.

Unknown Executive: And on the other hand, with the adoption of the N2NAI model using the decision-based technological approach, allow us to greatly enhance our A-Dust capability as well.

Unknown Executive: Again, if you are anxious, please stay tuned for more details in our future events.

Unknown Executive: Thank you.

Bin Wang: Next question, Hans from Bin Wang with Deutsche Bank.

Bin Wang: Good evening, everyone.

Bin Wang: My question is more important to you because of China's details.

Bin Wang: But if we are to believe in a 35,000-year-old China, it means that we are to believe in two million dollars.

Bin Wang: How will this two million dollars be in the future?

Bin Wang: The first question, I will find out if we achieve a high end of the 45,000 units in the third quarter, which means in the September, we can achieve more than 20K.

Bin Wang: So can you provide a breakdown by product specifically how much more in the September, if we achieve a high end?

Bin Wang: Thank you.

Unknown Executive: Hey, Ben.

Brian Gu: This is Brian.

Brian Gu: At the moment, we do not provide a breakdown of a specific model mix for the delivery of coming months.

Brian Gu: But I would say, as I said before, we anticipate very strong delivery for more in September.

Brian Gu: We likely achieve the record for EV delivery by EV startup or new players as you can imagine.

Brian Gu: So we hope to achieve that record.

Brian Gu: Secondly, it also consists of a significant percentage from overseas, which will be mostly G9 and G6.

Brian Gu: As you know, that G6 is starting to delivery this month and next month.

Brian Gu: So that will also mean there's contribution from these mainstream models from our lineup.

Brian Gu: So other than that, I don't think that we will probably provide any more details on the mix.

Unknown Executive: Okay.

Unknown Executive: My question is, second one is about the new product dimension worth a motorcycle.

Unknown Executive: It's a little bit about a product collection.

Unknown Executive: Thank you.

Unknown Executive: But what we can say, as we said before, is that we anticipate this fourth quarter will start a very strong product cycle.

Unknown Executive: So there will be many.

Unknown Executive: I would say many is more than what we current this year has launched this year.

Unknown Executive: So more than this year, definitely as a number of vehicles for the new models and revised or updated models for next two years.

Unknown Executive: Okay, thank you very much.

Unknown Executive: Thank you.

Paul Gong: Your next question comes from Paul Gong with UBS.

Paul Gong: So my first question is regarding the export outlook.

Paul Gong: At this stage, we're glad to see the companies pushing for the exports.

Paul Gong: However, we are seeing the rising protectionism in the DMs, including the upcoming extra tariffs.

Paul Gong: And we are also seeing in other markets the rising competition.

Paul Gong: Even among the Chinese even vehicles is escalating.

Paul Gong: How do you foresee these challenges?

Paul Gong: How do you overcome yet?

Brian Gu: Paul, this is Brian again.

Brian Gu: Very good question.

Brian Gu: I think you're right.

Brian Gu: Obviously, global opportunity is immense, but also, you know, there's a lot of challenges along the way.

Brian Gu: We also noticed the tariff updates in the European market, etc.

Brian Gu: But what I would say, a few points.

Brian Gu: One is that we so far has been very successfully launching our product in Europe as well as other global markets positioning those products as premium sort of EV brand.

Brian Gu: Secondly is that in Europe, specifically, we obviously have to deal with the tariff, but I think given, you know, the efforts by our team, the pricing as I mentioned as well as, you know, using a collaborative relationship with local partners, we still can achieve, I would say, good marginal contribution from those sales.

Brian Gu: So we are actually dealing with that at the moment, which already started, I think, the regime back in July.

Brian Gu: So we have been dealing this in the last month and a half already.

Brian Gu: And then looking outside of Europe, I think we actually also see huge opportunities for Middle East, including Israel, South East Asia, which is the market that we will be launching our right-hand driving models as we speak this month and next month.

Brian Gu: And also we see significant growth opportunities in other parts of the world.

Brian Gu: So with additional sort of a product launch as well as better, I would say, more premium positioning of our product globally as well as, you know, building extensive relationship and distribution channels around the world.

Brian Gu: We are confident that we can achieve the volume as well as some of the profit contributions we anticipate from global operations.

Unknown Executive: Thank you very much.

Unknown Executive: The second question is related to Robotoxy.

Unknown Executive: I remember that a few years ago, Cheng Jing Yidu, Xiaopeng, there was a moment that X-Tong also had a little plan for the Robotoxy, but subsequently it has been modified.

Unknown Executive: This is a very good question.

Unknown Executive: In fact, in China and in the global development of Robotoxy, we are using a very big model operation now.

Unknown Executive: They are more related to the experience of a small area, safer and better.

Unknown Executive: We are more related to a whole area, so we can improve the experience of that area.

Unknown Executive: So from the perspective of that, there is a difference.

Unknown Executive: The second point is to say that we think that because before the small area, Cheng Jing Yidu, we have decided to develop the technology.

Unknown Executive: We think that Robotoxy's experience is also very related to the experience of Cheng Jing Yidu, except for the development of this experience.

Unknown Executive: So we also think that today's big part of Robotoxy, is that there is no possibility that the technology of Robotoxy is a very good question.

Unknown Executive: Actually, when it comes to Robotoxy's development, not only in China, but globally speaking, the technological approach is quite different from what we adopt right now, which is the N2NAI model architecture.

Unknown Executive: That definitely defines the differences between our focus right now versus Robotoxy.

Unknown Executive: And the other thing is that based on our previous experience of operating on medical vehicles, we understand that right now, when it comes to the industry target for Robotoxy, cost still is in the low-empower already, apart from regulation, and also the adoption rate and penetration of this technology.

Unknown Executive: The majority of Robotoxy developers right now do not really balance these two aspects really well, meaning namely cost and customer experience.

Unknown Executive: Could you tell us a few things?

Unknown Executive: First, Xiaopeng is indeed in charge of its robot chassis.

Unknown Executive: However, our robot chassis and L4 cars are all in the same situation.

Unknown Executive: The second point is that Xiaopeng is not willing to enter the robot chassis' heavy rain.

Unknown Executive: We hope Xiaopeng can make the car better, so that we can cooperate with all of the rain.

Unknown Executive: The third point is that the robot chassis may be the same as the new generation of L4 chassis.

Unknown Executive: We hope that the new generation of L4 chassis and the new generation of L4 chassis may not be the same as the new generation of L4 chassis.

Unknown Executive: We hope that we can cooperate with all of the robot chassis' heavy rain.

Unknown Executive: There are several things that we can comment on when it comes to robot chassis.

Unknown Executive: First of all, we are definitely considering the future for developing robot chassis.

Unknown Executive: This is very, very different from the L4 ASK ability or experience.

Unknown Executive: The second thing is that we are not considering involving ourselves in the operation of robot chassis, but rather focusing on producing high quality products or vehicle, robot chassis vehicles with the partnership with vehicle or mobility operators in the future.

Unknown Executive: It is actually quite different from the PUA ASK for everyday use, and it's a different way of a different kind of mobility.

Unknown Executive: In the future, when Tom allows, we are going to share more of our thoughts in this regard.

Unknown Executive: Thank you.

Unknown Executive: Thank you very much.

Unknown Executive: That's quite helpful.

Unknown Executive: Thank you.

Unknown Executive: Your next question comes from Tina.

Unknown Executive: How would Goldman Sachs?

Unknown Executive: [inaudible] previously, but looking at our first half tracking and looking at last year's first half second half seasonality, it seems like it's tracking just below 6 billion RMB.

Unknown Executive: So, wondering whether we have any like added RMB spending into the second half.

Unknown Executive: Thank you.

James Wu: Tina, this is James.

James Wu: I'll try to answer both of your questions.

James Wu: On both production capacity, obviously we've seen what we have experienced in the past, launchers with regard to G6 and X9.

James Wu: So far, we haven't seen any finds of issues with regard to our supply chain and production capacity, so we continue to expect we will achieve the planned production and delivery as we have communicated earlier.

James Wu: Your second question about the engineering expense.

James Wu: Yes, from the first half, if you look at our engineering expenses, it's relatively flat and comparable to last year, but as we mentioned earlier, we are entering into a pretty heavy product cycle and a lot of the engineering expenses with regard to design and product development has already kicked in. So, we expect the engineering expenses to ramp up in the second half of the year.

James Wu: For the full year, we still remain our earlier guidance of about $7 billion for the full year in terms of engineering expense.

Unknown Executive: Thank you.

Unknown Executive: Thank you, that's very clear.

Pingyu Wu: Your next question comes from Pingyu, who with side tech securities?

Pingyu Wu: I have two questions.

Pingyu Wu: The first question is, I actually went to see the first time in the first half, and it was a very good quality, but people will only feel the quality when they see the car in person.

Pingyu Wu: So do we have some self-action to make more people to see the car in their personally?

Pingyu Wu: Yes.

Pingyu Wu: In fact, there is a very strong engineering expense for the engineering expense of the car, and the economic expense of the car, which is a very big difference.

Pingyu Wu: [inaudible] Yes, indeed, while when it comes to sales and marketing technical approaches, it is quite different between functional or performance-oriented cars versus affordable cars.

Pingyu Wu: Now when it comes to MoMA, definitely its capability is more superior to most of the other comparable cars of this class, especially when it comes to aesthetic and dynamic perception capabilities.

Pingyu Wu: So after our official product launch, later this month, we plan to not only do a lot of offline sales and promotional activities, but we're also going to do a lot of seating online as well in order to encourage more customers to test drive it for themselves.

Pingyu Wu: And we believe that Mo3's sales performance will be even more superior than G6 of the same comparable sales period.

Pingyu Wu: So from us, I think it's very interesting.

Pingyu Wu: Okay, I'll give you one more question.

Pingyu Wu: And also one thing that I would like to share with you is that we have a lot of experience and experience.

Pingyu Wu: I think this is also a very valuable thing.

Pingyu Wu: So in terms of technology, we have a lot of experience and experience.

Pingyu Wu: And again, you know, there are a lot of self marketing possibilities when it comes to promoting this kind of affordable vehicles for the market.

Pingyu Wu: Thank you.

Pingyu Wu: My second question is we actually do a lot of in the reform from 2022.

Pingyu Wu: And after two years, how do we evaluate our ability in self and marketing right now?

Pingyu Wu: Thank you.

Yuqian Ding: Q&A session Q&A session Q&A session Q&A session Q&A session Q&A session Q&A session Q&A session Your next question comes from Yuqian Ding with HSBC.

Yuqian Ding: My first question is about the growth power margin, so can management help us to break down the growth power margin, and also the domestic part, especially the wholesale bits, with the impact of the probability over there, if not specific, at least they give us a little reference versus the group average growth power margin.

Yuqian Ding: And also to clarify, Brian should, in the second half of the year, roughly the margin level would be the two-loading percent state relative to stable.

Yuqian Ding: Does that mean the positive benefit of the margin support coming from the software part will largely absorb by the product mix coming down and also increasing channel discount?

James Wu: Yes, this is James, I'll try to answer a question.

James Wu: First, as Brian mentioned, we are expanding on the global basis pretty rapidly, so we would expect the overseas sales both in terms of absolute volume as well as percentage of total volume increasing in the second half compared to the first half.

James Wu: With regard to margin overseas, in conclusion it is healthy, good margin.

James Wu: When you look at overseas markets, it's quite different when it comes to different countries.

James Wu: But in some, I would say, from a verbal profit or contribution margin perspective for our overseas business, it is quite good and it's helping us to improve the overall profitability of the company.

James Wu: Then your second question regarding the margin trend in the second half.

James Wu: I just wanted to clarify that we didn't really refer to the software margin for the second half, what we were talking about earlier was a variety of different components that will come into play in the second half, including higher volume mix changes in terms of overseas and domestic income.

James Wu: Income from the VW collaboration will likely to increase as well as additional new vehicle models with regard to Moda and P7 Plus.

Unknown Executive: Hello.

Unknown Executive: Thank you.

Unknown Executive: So the second question is really about the autonomous driving differentiation.

Unknown Executive: So autonomous driving technology everyone is developing that everyone is talking about to leveraging the big data loop engineering capability and processing powers to get it down.

Unknown Executive: But the industry running into the stage that the technology development curve is running flatish in terms of the development slope.

Unknown Executive: So everyone can do the autonomous driving service, but no one is really sticking out.

Unknown Executive: So if we're talking about next year, is the iPhone moment, Chadwicky moment, so how could you help us to envision how the singularity and the breakouts could happen?

Unknown Executive: Does that mean because we're getting mature in the technology, so we're selling more vehicles? Or because of the technology, it's getting better.

Unknown Executive: We are finding diversified, a revenue model.

Unknown Executive: Thank you.

Unknown Executive: Yes, I want to use the technology to say that it's still quite difficult.

Unknown Executive: I often think that in the past, you can think that it's one of the top four high-end systems that can be easily used as a rule.

Unknown Executive: The biggest problem is that there are a lot of different types of systems.

Unknown Executive: That's why we call it the color case.

Unknown Executive: The same is the client's experience.

Unknown Executive: For example, if you go to China, there are many times when the speed is at 40 to 50 kmph, and the speed is very low, so if you use your eyes to see it, it's not like it's a human.

Unknown Executive: And the logic is that in the past, the experience of learning and understanding is very useful.

Unknown Executive: Remember that you have to learn how to open your own way of learning, how to open your own way of learning.

Unknown Executive: It's a very simple and safe experience, but it may not be in particular to solve it.

Unknown Executive: For example, there may be some kind of cold-blooded cat in this kind of situation.

Unknown Executive: It may not be like the original price.

Unknown Executive: It may be the first rule.

Unknown Executive: [inaudible] Well, it would be very challenging for me to try to respond to your questions without involving technical terms or language, but I'll do my best.

Unknown Executive: First of all, the previous model or technological approach that was widely adopted in this industry for ADF is the so-called all-knowing perspective, relying on high-definition maps and also rule-based architecture to develop their ADF autonomous driving capability.

Unknown Executive: Now the main challenge for that approach is that you have actually numerous corner cases where you actually have to examine them one by one.

Unknown Executive: And the customer experience is the driving experience itself is not perfect.

Unknown Executive: For example, most of the ADF vehicles on the market available right now is driving at about 40 to 50 kilometers per hour and also their lay changes and turn making looks very, very robotic.

Unknown Executive: It's not a human-like kind of driving experience whereas the AI approach or N2NI models approach allow us to actually learn from excellent and I want to focus on the executive here excellent or high quality experience driver or human-like driver someone like yourself.

Unknown Executive: For example, if you encounter stray animals, for example, a stray cat in the world, on the road it's not going to try to avoid it because it's not something that they've learned before whereas in a rule-based approach maybe there is a rule there that states that you have to avoid eating those animals.

Unknown Executive: I hope I answered your question.

Unknown Executive: Thank you.

Unknown Executive: That does conclude our question and suggestion.

Unknown Executive: I'd like to turn the call back over to the company for closing remarks.

Unknown Executive: Thank you once again for joining us today.

Unknown Executive: If you have further questions, please feel free to contact Excellence in Medical Relations team via the contact information provided on our website for the Pearson financial communications.

Unknown Executive: Thank you.

Unknown Executive: This concludes today's conference call. You may now disconnect your line.

Unknown Executive: Thank you.

Unknown Executive: Xiaopeng He, Jing Chang, Xiaopeng[inaudible] Xiaopeng He, Jing Chang, Xiaopeng He, Jing Chang, Xiaopeng Xiaopeng He, Jing Chang, Xiaopeng Xiaopeng He, Jing Chang, Xiaopeng He, Jing Chang, Xiaopeng[inaudible] He, Jing Chang, Xiaopeng He, Jing Chang

Q2 2024 XPeng Inc Earnings Call

Request a DemoDemo

XPEV

XPeng

Earnings