Q3 2024 NIO Inc Earnings Call
Hello ladies and gentlemen. Thank you for standing by for Neo Incorporated's third quarter 2024 earnings conference call.
At this time, all participants are in listen-only mode. Today's conference call is being recorded.
I will now turn the call over to your host, Mr Rui Chen, Head of Investor Relations of the company. Please go ahead, Rui.
Rui Chen: Good morning and good evening everyone. Welcome to NIO's third quarter 2024 earnings conference call. The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website. On today's call we have Mr. William Li, founder, chairman of the board and CEO. Mr. Stanley Qu, CFO.
Speaker Change: Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
forward-looking statements involve inherent risks and uncertainties.
Speaker Change: As such, the company's actual results may be materially different from the views expressed today.
Speaker Change: Further information regarding risks and uncertainties is included in certain filings of the company with the U.S. Securities and Exchange Commission, the Stock Exchange of Hong Kong Limited, and the Singapore Exchange Securities Trading Limited.
Speaker Change: The company does not assume any obligation to update any forward-looking statements except as required under applicable law
Speaker Change: Please also note that Neil's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures.
Speaker Change: please refer to news press release which contains a reconsideration of the unaudited non-GAAP measures to comparable GAAP measures. With that I will now turn the call over to our CEO Mr. William Li. William, please go ahead.
William Li: Hello everyone, thank you for joining NIO's 2024 Q3 earnings call. In Q3, the company achieved a new quarterly record with 61,855 deliveries.
William Li: The new brand maintained its position as the top-selling brand in China's BEV segment, priced above 300,000 yuan.
William Li: with its market share reaching 48 percent. The Ongo brand also started to deliver its fourth model, L60, on September 28.
Market is entry into the broader mainstream family market.
In October 2024, the company delivered 20,976 vehicles.
William Li: While the Envoy brand continues to ramp up production capacity, the company's total deliveries in Q4 are expected to be between 72,000 and 75,000 units.
William Li: On the financial side, our Q3 results reflected continued improvement in component cost leading to a vehicle margin of 13.1%.
Besides, the gross margin of other shares has improved steadily.
William Li: The positive buy sustained growth in revenues and growth margin. The company achieved positive operating cash flow and free cash flow in Q3. Now I would like to share with you some updates on our products' R&D and operations.
William Li: NEOS Executive Flagship 89 is in the final testing and preparation before mass production.
William Li: and the delivery is expected to start in March next year. The ET9 brings together NIO's leading innovation. Its delivery will reinforce NIO's premium brand image.
The Ongo F60, aiming at the mainstream family market.
William Li: has been a hit with family users thanks to its spacious cabin, ultra-low energy consumption, comprehensive safety features, and hassle-free charging and swapping experience. Now, we are ramping up our supply chain capacity.
William Li: near the monthly production capacity is expected to hit 10,000 units in December and the 20,000 units by March.
Speaker Change: but he can't get the job because he is deaf, that's the problem. Impaired. I'm looking forward to hearing the results. Yes, I understand that. So the second part is very hard to sign. It's very difficult for deaf people to learn sign. They must do it that way.
Speaker Change: On December 21st, NIO's third brand, officially named FiveLine, will make a global debut on NIO Day 2024.
These four products will be delivered in the next week.
Speaker Change: Its first product will be delivered in the first half of next year. Targeting the boutique compact car market, the Firefly brand will enrich the company's product line-up and make full use of existing sales networks.
Speaker Change: In terms of smart driving, by October, NIO's smart driving had over 610,000
users, and 78.4% had an activity
Speaker Change: activated NEO's Navigate-on-Pilot. Together, they have driven over 1.39 billion kilometers with NOP.
Speaker Change: The OnVo Smart Driving, based on the company's experience and expertise built over time, was rolled out with the S60, making OnVo the first brand to deliver vision-based and navigation-guided smart driving on urban roads.
Speaker Change: The company's sales footprint continues to grow. So far, NIO has 176 NIO houses and 412 NIO spaces worldwide.
Speaker Change: while Anbo has 191 stores across China. On the service end, the company has 398 service centers and 65 delivery centers.
Speaker Change: The Power of Countries plan is making strong headway, with more partners joining us, expanding the network. As of now, the company has 2,000 employees.
Speaker Change: 737 power swap stations worldwide, including 887 on highways, have been provided over 58 million swaps for near and on-board users.
Speaker Change: In addition, over 24,000 power chargers and destination chargers are up and running.
Thank you for watching!
Speaker Change: They continue to expand globally. On November 28th, the first new house in the MENA region will open in Abu Dhabi.
Speaker Change: and our sales and delivery have already started in UAE. Next year, with new products from Envoy and Firefly, the company will accelerate its international market entry.
Thank you for watching!
On September 29th, Neo-China signed a new investment agreement.
and the circuit.
Speaker Change: 3.3 billion yuan from the strategic investors. This capital boost reinforces our balance sheet and reflects the investors' high confidence in NIO's industry leadership.
October 26th.
Speaker Change: The 2024 Neo Cup Formula Student Elections in China came to an end.
Speaker Change: Supporting the event for 10 years, NEAR has helped more than 60,000 talented students chase their dreams in the rapidly evolving smart EV industry.
Thank you for watching!
Speaker Change: November 25th marks NEO's 10th anniversary, a milestone that wouldn't have been possible without the trust and support of our users and investors.
Speaker Change: Going forward, as a new brand starts to enter a new product cycle and Onward and Firefly will deliver more new products.
Speaker Change: The company is embarking on a phase of robust growth. We are confident in what's to come.
Thank you for your support. With that...
Speaker Change: I will now turn the call over to Sandy for Q3's financial details. Over to you, Sandy.
Sandy: Thank you, William. Let's now review our key financial results for the third quarter of 2024.
Sandy: Our total revenues were $18.7 billion RMB, decreased 2.1% year-over-year, and up 7% quarter-over-quarter.
Sandy: Vehicle sales were 16.7 billion RMB, down 4.1% year-over-year, primarily driven by a lower average selling price due to changes in product mix.
Sandy: partially offset by higher deliveries. Vehicle sales increased 6.5% quarter-over-quarter, which was mainly due to the increased delivery volume.
Sandy: Moving to the performance of other business, other sales were 2 billion RMB, grew by 19.2% year-over-year and 11.9% quarter-over-quarter.
Sandy: The year-over-year increase was mainly due to the increase in sales of parts, accessories and after-sales vehicle services, and provision of power solutions, and partially offset by lower sales of used cars.
Sandy: The increase, quota over quota, was mainly attributed to the increase in sales of parts, accessories, and after-sales vehicle services, and provision of power solutions.
Sandy: Vehicle margin was 13.1% in this quarter compared to 11% in the same period of 2023 and 12.2% last quarter.
Sandy: The year-over-year increase was mainly due to decrease the material cost per unit and partially offset by lower average selling price as a result of changes in product mix.
Sandy: A quarter over quarter increase was mainly due to decreased material costs per unit.
Sandy: Overall gross margin was 10.7%, up from 8% in the same period of last year, and 9.7% in the last quarter.
Sandy: The year-over-year increase was both mainly driven by the increase personnel cost in R&D functions.
Sandy: SG&A expenses were 4.1 billion RMB, increased 13.8% year-over-year at 9.3% quarter-over-quarter, which was mainly driven by higher personnel costs related to sales functions.
Sandy: and increase sales and marketing activities associated with new product launch.
Thank you for watching!
Speaker Change: Loss from operations was 5.2 billion RMB, up 8.1% year-over-year and relatively flat quarter-over-quarter. Net loss was 5.1 billion RMB, showing an increase of 11% year-over-year and remaining relatively stable quarter-over-quarter.
Lastly, we ended the quarter with a stronger balance sheet.
Speaker Change: with total cash and cash equivalents, restricted cash, short-term investment, and long-term time deposits amounting to $1.5 billion.
Speaker Change: 42.2 billion RMB. That wraps up our prepared remarks. For more information and the details of our audited third quarter 2024 financial results.
Speaker Change: please refer to our early press release. Now I will turn the call over to the operator to start our Q and A session. Thank you.
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.
Speaker Change: If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask your question.
Speaker Change: For the benefit of all participants on today's call, please limit yourself to two questions. And if you have additional questions, you can re-enter the queue.
Speaker Change: Your first question comes from Tim Sow with Morgan Stanley. Please go ahead.
Speaker Change: Hi, good evening, NEO Management team, this is Tim from Morgan County. Thanks for taking my questions. I have two questions.
Speaker Change: The first one is about brand strategy alignment. Because we noticed since the L60, Onvo L60, was launched in September, the orders of NIO brands and Onvo brands have been seesawing. The order trends of NIO and Onvo appear contrary.
Speaker Change: Should we be worried about a potential catalyzation between these two brands when it comes to the in-demand brand proposition and the supply chain management? That's my first question. Thank you.
Thank you, Tim.
Speaker Change: So, in October, we collected a lot of sales revenue. We collected about 15,000 sales revenue compared to the end of September.
Speaker Change: Of course, this will have some impact on sales, but this is basically what we expect.
Speaker Change: In November, we saw that after the prices stabilized in the early stages, our demand has recovered. At present, we are moving forward according to our plan.
Speaker Change: We believe that using two or three brands to meet different users is a successful strategy.
Speaker Change: is a successful brand strategy. As for Leidao, its main users are indeed the users competing with it in the price range.
Speaker Change: For example, the first major user of LeDou is a Model 3 user.
Thank you for watching!
Speaker Change: We also analyzed some data internally. The impact of LeDao on NEO users is only about 20%. Indeed, there are very few users who do not buy NEO because of LeDao. But our current data is only about 20%.
Speaker Change: So the increase we got is far greater than the decrease. So, in general, we think this is a successful strategy.
Thank you.
Thank you.
Thank you for the question.
Speaker Change: As before October, our monthly delivery volume was above 20,000 units for several months consecutively. But in the meantime, we also realized that the vehicle margin has been under pressure, as we have some promotions and marketing expenses on the product.
Speaker Change: Then starting October, we have a dealt back on our expenses on that part by reducing around 15,000 RMB per unit on the promotional costs and the marketing costs.
Thank you very much.
Speaker Change: With that, inevitably, you'll see the impact on the sales volume. But starting November, as we are stabilizing our delivery volume and the demand, we are seeing the recovery from our volume.
Speaker Change: And regarding our brand strategy, overall speaking, we think that using two or three brands to target different user groups is a successful strategy for now. For the Envelope, it is still competing with other competitors in the same price segment.
Speaker Change: Right now, when we are looking at the main source of the Ombud users, a majority of them actually come from the Model 3 users, and internally, we're also looking at the potential competition between the Ombud brand and the new brand, but the actual overlapping or the impact on the new brand is pretty minimum.
only around 2%.
Speaker Change: It is true that few users may choose Anvil over NEO, but the overall impact on the sales and delivery of the NEO brand is limited. In that case, the combined increments
Speaker Change: of both Envelope and NEO still surpassed the volume loss we had on the NEO brand in the past one or two months.
Speaker Change: To clarify that, to look at the source of our on-wall users, the top one source of these on-wall users actually is coming from Model 3.
Thank you. Thank you.
Speaker Change: Thank you very much, William. My second question is about the production ramp-up. Because we noticed the production ramp-up of L60 so far is still a little bit slow.
Speaker Change: What is the main reason to a more moderated Grand Bob page?
Speaker Change: Will there be any impact to our current order backlog towards the year-end? In the meantime, in view of the busy model pipeline of Fireflies and also the new ET9 in March next year, as William just mentioned, and the more upcoming models under Ondo and NEO,
Speaker Change: How would the group consider solving the bottlenecks into 2025? That's my second question. Thank you.
Speaker Change: So, in general, this is an expected pace of climbing. We did not build a very large launch stalk method to make the first month or the second month's turnover appear higher. Because we are actually a relatively normal pace of climbing.
Speaker Change: So, in general, it may be that there is a gap between people's expectations and reality. In fact, recently, there have been a lot of...
Speaker Change: There are some local subsidies and some national subsidies, such as self-improvement. Some of the current policies are until the end of the year.
Speaker Change: Since the payout will happen in next year, the increase in orders would contribute to it.
and so I understand everything.
Speaker Change: ET9 and FiveFly will also have their own rhythm of climbing, but in general, we will be more active in building some launches.
Thank you for watching!
Thank you for the question.
It also has a pretty advanced
Speaker Change: E-Architecture, its operating system and digital system like CocoNet also equipped with a lot of new technologies.
So such technology cooperation will also take time.
Speaker Change: And we also didn't prepare a sufficient launch stock so that we will realize a very high delivery in the first month. We actually believe that ramping up to 10,000 units per month in December, that is our third month of the full-month delivery. And then ramping up to 20,000 in March next year is a reasonable speed and pace. It's true that this speed may not live up to some of your expectations.
Speaker Change: We also understand that on the subsidy side, by the end of this year, some local subsidies and also the national trade-in subsidy will be gone. In that case, for some users who place the order later, may not have their cars picked up by the end of this year, and that will affect their subsidy.
Speaker Change: In that case, we have also looked at the users who eventually turned us off or turned us on. And 50 to 60 percent of those users eventually rejected us.
Wei Feng, Rui Chen, William Li
Speaker Change: For ET9 and the Firefly, in general, they also have their own ramp-up pace and the preparation. But for these two products, we will prepare the launch stork more actively.
Thank you.
Thanks for watching!
Thank you, team.
Speaker Change: Your next question comes from Nick Lay with JP Morgan. Please go ahead.
Speaker Change: Thank you for taking my question, Nick from JPMorgan. My first question for William is strategically how do we find a balance between possibility and volume? And William just mentioned that in the third quarter, in recent months, we reduced the incentive by 15,000 RMB. That obviously should support a bigger margin into year-end, but at the same time, that's probably at expense of the slower sales volume. So long-term, can you share with us how should we think about the balance between profit margin and volume? Or in other words, do we have a desired vehicle margin in the medium to longer term? I remember Neil in the past
Speaker Change: Why President Bidenoted the median to longer-term vehicle margins between 15% and 20%.
Thank you. Bye.
Thank you.
Hi Nick
or just Benny.
There is about the balance of profits in the US.
and their commitment to the high-end positioning of future brands.
Speaker Change: So how can we continue to improve its profitability has become our main focus. So as you just said, we actually narrowed our sales policy from October. Of course, the amount will have some impact in the short term. But we have also seen in the recent one and a half months from October to November that we have seen some backetlog recovery.
Speaker Change: Also, in terms of毛利, we have 13.1%毛利 in the third quarter.
Speaker Change: you will see that, of course, this is in the fourth quarter, our gross profit, in the fourth quarter, we will still maintain our goal of 15%. So we are also more confident in the future brand. In the fourth quarter, it should be that gross profit can be gradually increased to 15%. Of course, as the whole
Speaker Change: the future of high-end brands. In 2025, based on 15%, we will continue to optimize our market strategy and supply chain. Our goal is to gradually increase our gross profit from 15% in 2025 to 20% in the future.
Speaker Change: Thank you for the question. This is Stanley speaking. Regarding your question on the balance between the volume and the profitability, as also mentioned by William, after the launch of the Envelope, for the new brand, our primary focus is to keep enhancing our premium brand positioning and improve our product profitability. So this will be our focus from now and beyond. And also starting October, we started to double back on our product promotions and incentives. For the short term, it has affected our sales volume. But in the past one month or so with operations, we also see a bounce back momentum on our order backlog.
Speaker Change: And regarding the vehicle margin of the new brand, in the third quarter it's around, it's 13.1%. And for the fourth quarter, we set the target at 15% for the new brand, and we are confident to gradually live up to that target in Q4 this year.
Speaker Change: As we keep enhancing the premium positioning of this brand for the year of 2025, we will take 15% vehicle margin as the baseline, and by improving our marketing strategies and supply chain, we target to realize 20% gross margin going forward for the new brand.
Thank you.
Speaker Change: Thank you. My second question is related to CAPEX and OPEX guidance. We are launching a new brand, Firefly E225, and also higher-end ET9 product and so on. So can you give us some guidance regarding OPEX ratio as well as CAPEX in 2025? Thanks.
Speaker Change: Okay, Nick. As we said, ET9 will launch next year, and there will be three brand launches next year.
In terms of operating costs,
Speaker Change: In Q4, the expenditure will increase. As we mentioned, we currently have 190 branches. By the end of the year, we will have 300 branches.
to achieve our goal of 20,000 in March.
We will gradually expand our sales and sales performance.
Speaker Change: write about how the hotel experience has helped them improve flavor. A great social network project. So what's next for you? What's next for folks when they look back on the fact that they've been享 unique rights and incredible life experience. There is nothing. Things I've learned from some of our travels and who do what, what's the next thing they happen to look forward to? Where we've got the best of So that's really what I'd like to hear. Tonight we gave you a little tour of the night view and show of our cruises.
in the first quarter of next year.
Speaker Change: After the basic performance of LeDao is in place, the entire investment output will have a correspondingly better ratio. Before that, relatively speaking, our sales costs
Speaker Change: the proportion of our sales will be relatively higher. After the first quarter of next year, it will slowly return to normal.
Speaker Change: Overall, with the gradual increase of OPEX sales next year, we are confident that we can achieve a significant increase. From the perspective of CAPEX,
Speaker Change: This year, the investment in Capex has dropped significantly from last year. Basically, from the current point of view,
Speaker Change: We have a budget of about 8 billion RMB. We are still working on the budget for next year, but our goal is to keep it at a similar level. We will carefully manage all of our investments in HAPAC.
Thank you for watching!
Rui Chen,
Speaker Change: Thank you for the question. As mentioned, starting next year we will start to deliver our HMI and there will also be new models coming from our second and the third brand. So speaking there will be increments with our OPEX.
Speaker Change: As you can see, actually, in the third quarter of this year, we already see an increment in our SG&A expenses.
Speaker Change: that is mainly because we are preparing, we were preparing the South Network and the South Force for the launch of the Envelope brand. And such expenses will continue in Q4 and will also continue to increase in Q4 as right now we have around 190 stores, Envelope stores in China. And by the end of this year, we plan to have around 300 stores up and running for the Envelope brand. So we will need to invest in those facilities and stores.
Speaker Change: And in the meantime, as our target for March next year is to realize a 20,000-monthly target, in that case we will need to keep improving our self-network and also self-worth.
Speaker Change: But as we are building up the self-capacity and the capability for the onboard brand and going into Q1 next year when the capability and capacity are well established,
Speaker Change: our SG&A expenses will also gradually coming down. So at the moment, the SG&A is taking a big chunk of our sales revenue, but this will gradually come to a reasonable level starting Q1 next year. In that case, our OPEX, along with the increase of our sales volume, will have a efficiency improvement quarter over quarter from next year.
Speaker Change: Regarding capex, this year our overall capex actually had a significant decrease from last year. The full year capex is around 8 billion RMB, and for next year we will keep it around the same level. So we will keep a very prudent management of our capex expenses.
Thank you Nick
Speaker Change: Your next question comes from Ming-Sun Lee with Bank of America. Please go ahead.
Ming-Sun Lee: Hi William, this is Ming from Bank of America. So my first question is related to the situation in Europe. I want to know that after the tariff in EU is increased, do you change your pricing strategy and currently does this impact the demand in Europe? Thank you, that's my first question.
Thank you.
Thank you, Ming.
European tariffs will definitely affect our price strategy.
Ming-Sun Lee: Overall, we are still using a cost-effective global unified pricing method. So, in general, the prices of our cars in Europe have increased a lot.
Ming-Sun Lee: From a strategic point of view in the European market, this is definitely a long-term strategy. Our main focus at the moment is to establish our sales and service system.
to understand the needs of the local users.
Ming-Sun Lee: We put user satisfaction first. This is not because of the regulation. In the past few years, we have not prioritized sales. We are controlling a reasonable investment.
Ming-Sun Lee: to achieve user satisfaction and brand overall construction as our priority. We are aware that this is a very long-term investment. Norway is not affected at the moment, so our sales in Norway are not affected.
Ming-Sun Lee: the impact of tariffs. So, other countries, the four countries, have been affected. Sales will also be affected. But in terms of the overall business of the company, the impact is not great.
Ming-Sun Lee: Thank you for the question. It's true that with the tariff on the battery electric vehicles from China, it has affected our pricing strategy and also sales volume.
going to talk about
Ming-Sun Lee: In that case, because of the tariffs, our prices in Europe actually have gone up quite significantly. However, our strategy for the European market is always aiming for the long term. At the moment, we will stay focused on improving our sales and service network, understanding the needs of the local users, and to improve our user satisfaction on the services and the products.
Ming-Sun Lee: This strategy is not just because of the tariff, even before the tariff we've been focusing on the several key targets than simply prioritizing our sales volume. We will need to make sure that we have a reasonable investment into our European business.
Ming-Sun Lee: while maintaining a good user satisfaction and also improving our brand awareness.
Ming-Sun Lee: Again, our target for Europe is for the long term. And also, out of the five European countries we have already entered, Norway is not affected by the tariff policy. In that case, our sales volume in the Norwegian market is still pretty good.
Thank you for watching!
Rui Chen,
Speaker Change: what is the potential growth margin profile for the brand. Thank you.
Thank you for watching!
Speaker Change: It is a single-digit gross profit, and in 2025, with the production capacity and delivery mentioned earlier.
Speaker Change: We have set a target of 10% for the entire AnWuo brand As we continue to optimize the cost structure of our products and as LeDao's new products are added one after another we have set a target for the entire LeDao brand
Speaker Change: The goal for next year's interest rate is to reach 15% gradually.
Thank you for the question.
Speaker Change: for this year, as we have just launched and started to deliver the product.
Speaker Change: at the early stage of the ramp-up and also because of the exclusive user rights for the early users.
positive growth margin, but in a single digit.
Speaker Change: For next year, for the year of 2025, as we ramp up both production capacity and the delivery volume, we expect that for the Envel brand, its vehicle margin will be around 10%, and that will be our baseline for the next year to work on. And with the continuous improvement on the product cost structure, and also with more products joining the overall lineup.
Speaker Change: We believe that for the next year, our overall vehicle margin target for the Onward brand will be around 15%.
Thank you. Thank you. Thank you.
Speaker Change: Your next question comes from Ben Wang with Deutsche Bank. Please go ahead.
Thank you for watching!
Speaker Change: Thank you very much. My product is about a new product in the second half. You just mentioned you have a low-budget growth in 2025 and the first half seems to be only selling niche products such as the 89 and a new brand.
Speaker Change: However, what's the plan for the second half? Do you plan to refresh, go to a new generation for your key volume products, such as the ET5, ET5 Touring, and ES6, ET6? All these four products will go to a new generation or not in 2025, second half. Thank you.
Thank you.
Speaker Change: Next year, NIO will switch to a new generation of brands. So we will enter a new product cycle. Of course, the first product is the ET9. There will be new products on the market in the future. Of course, there will be some changes to existing products.
China Institute of Technology
Speaker Change: So this is a step-by-step process. From an on-board perspective, next year, in addition to the L60, we will launch two additional SUVs.
Speaker Change: These two products have been in development for some time now.
Speaker Change: where you will see the final and the preparation for production.
Speaker Change: Next year, we will complete the layout of the home SUV for the family market. The next two products, one is a medium-sized six-seater and seven-seater SUV.
Speaker Change: There will be a big five-seater SUV. If we compare the two, we don't see much difference. The L8 and L7, which are relatively ideal, are the two products.
Speaker Change: Just now, this one, because it was launched a bit later, that car is also very competitive.
The overall cost control is also very good.
Speaker Change: Compared to the L60 and the L6, the price difference is about 40,000 RMB We believe that the new two products...
Speaker Change: compared to its L28 and L27, it also has a very good price competitiveness. Next year, with the addition of our home power lines, charging lines and switching lines, we will also strengthen our Leidao channel and network construction. So we are very confident in the growth of sales for Leidao next year.
Speaker Change: And of course, FiveLine, we will deliver the first product of our brand.
Speaker Change: FiveFlight's product name is also a brand name, so it is similar to the strategy of MINI. FiveFlight's product name is also a brand name.
Speaker Change: on the 21st of next month, a month later, we will announce the product and the brand.
Speaker Change: The brand will be released, and the product will be shown.
Speaker Change: In general, next year will be a new product cycle. This is also the foundation for our growth next year. We are confident that we will achieve 100% sales growth next year.
Thank you for watching!
So time's almost up.
Rui Chen,
Speaker Change: Thank you for the question. For next year, under the new brand, our products will be upgraded to the next generation platform and ET9 will be the first product coming off from the latest generation platform. There are also other products in the pipeline. There will be also facelifts and upgrades. Those will be the facelifts and upgrades of our existing products. So basically in 2025 and the 2026, we will complete the upgrades of our existing new products step by step.
Speaker Change: Regarding the Anvo brand, next year we will continue to deliver and sell our first product, L60, but in the meantime we also have another two family SUVs in the pipeline, ready to launch into the market next year. The R&D of these two products is in good progress and they are also getting ready for the mass production.
Speaker Change: With these two products launched into market, we will have a complete line-up for the family SUVs under the Enve brand.
Speaker Change: For these two new products, one will be a mid-large-size SUV offering with 6 and 7-seater versions, and another will be a large-size 5-seater SUV.
and these two products are pretty competitive.
regarding their cost structure and the product performance.
Speaker Change: A proper benchmark to look for will be L-8 and L-7 of Li Auto If you look at our L-60 with L-6 from Li Auto, the price difference is 40,000 RMB And you will probably understand the rough price range for our next two Volvo SUVs It will be also with the similar pricing strategy and with that the price will be highly competitive
Speaker Change: Regarding Firefly, we are going to deliver our very first product of the Firefly next year. The product is actually named Firefly. We actually follow the mini strategy where the brand and the first product will share the same name. We are going to share more details on the brand and the product on December 21st this year at our New Day. Our brand will be making an official debut and we will also unveil the first product.
Speaker Change: And overall speaking, we are very confident with this project and the blind lineup. With that, for the entire company, our sales volume next year will be doubling on top of this year's result.
Thank you.
Speaker Change: improving in the sales margin in the third quarter to only negative 8.8.
Speaker Change: to explain what's the driver for the margin increase in the third quarter in the service and what's your guidance for the number four quarter of this year and 2025 for the service. It's going to be a single digit of negative gross margin in next year. So what's your guidance? Thank you.
Although I mean
Speaker Change: in the 12.2 to 13.1 of the third quarter of the second quarter.
Speaker Change: The motivation comes from two aspects. The first is what Mr. Tian mentioned.
But we still...
Speaker Change: to turn NIO into a high-end brand. As for the positioning of this high-end brand,
Speaker Change: we will still focus on improving their profitability. Therefore, the promotion policy will be tightened.
There will be some improvements in 2025.
One is the continuous improvement of our supply chain.
那这里面呢我们在明年有
Speaker Change: In addition, next year, as William just mentioned, we will introduce more competitive products and cost-effective products into NIO's portfolio. These common factors will increase NIO's profit margin by 20% in 2025.
Thanks
Speaker Change: Thank you for the question. Regarding the vehicle margin improvement in the third quarter, it is mainly because of the two drivers. The first is the improvements and optimization on the cost of the parts and components, including batteries and other parts.
Speaker Change: In the third quarter, such improvement is more significant than the previous quarter.
Speaker Change: And the second driver is as we are ramping up our source volume, our production capacity and volume is also leveling up. In that case, we can also leverage the efficiency improvement and the better amortization on the manufacturing side. With that, we have improved our vehicle margin from 12.2% in Q2 to 13.1% in Q3.
Speaker Change: And going into the fourth quarter for the new brand, as we've mentioned, our circus will be enhancing the premium positioning of this brand. In that case, we will keep improving the product profitability by delving back on the marketing expenses and the promotions, and also keep improving our supply chain cost structure. With that, we are confident that we can gradually realize a vehicle margin of 15% in the Q4 this year for the new brand.
Speaker Change: Going into next year, we will also look for several key drivers to continuously improve our vehicle margin, including the improvements on the supply chain and the supply side.
Speaker Change: Next year, there will be several major iterations and upgrades on the smart hardware, which can further improve our cost structure. And also, as mentioned by William, next year, there will be iterations and facelifts on the new brand and new products.
Speaker Change: By introducing more competitive products with more competitive cost structure into our portfolio, we can also improve the overall profitability of the brand. With that, we are also confident to realize a 20% vehicle margin for the new brand in 2025.
Thank you.
Thank you for watching!
I'll change the one being
Thank you.
Speaker Change: Your next question comes from Yukon Ding with HSBC. Please go ahead.
Speaker Change: I've got two questions. The first is on the autonomous driving. What's the management would say the key milestone for NIO in the coming 6 to 12 months on this account? What's the key challenges at the moment? What is the biggest highlight of NIO's capability? Maybe give us a bit of a breakdown in terms of user adoption, end-to-end modeling, development,
Thank you.
Rui Chen,
Speaker Change: This is a smart driving world model, the New World Model.
Speaker Change: There has been some third-party comments recently saying that our performance has been better than PSG.
and all the others. Thank you.
Speaker Change: In general, the user experience is very good. So, in general, we can see that based on our calculations, based on our data avoidance, and our world model, some new models, short-term models, we can see that in the next few months,
Speaker Change: Every family has their own explorations. We are following our own path. So, in general, I think we are very confident in our lead in this area.
Thank you.
Thank you for watching!
Speaker Change: Thank you for the question. In late July at the NIEU in 2024 we have introduced the new world model and also the end-to-end solution based on the new world model NWM.
Speaker Change: And we have already started to release some functionalities based on the new architecture and the world model and also have invited users for some internal testing and experience of this new architecture. Actually, before that, we have already released an active safety feature and in some third-party testing and assessments on active safety performance of the electric vehicles, our performance is actually pretty good, better than many of our peers.
Speaker Change: And for the Envelope brand, it is also the first brand to deliver a vision-based navigation-guided smart driving for the urban roads. Recently, we have also just launched a new release, and our users also really appreciate it and like that feature.
Speaker Change: So overall speaking, with our computing power and sensing capabilities on the V-coast, with our data closed loop, and also our end-to-end word model, we will have...
Speaker Change: We will be leveraging these capabilities, and in the following months, there will also be several releases, and gradually you will see the effect coming from all this R&D investment.
Speaker Change: And for the entire industry, there are actually different roadmaps and solutions, and we have chosen this roadmap, and we are confident in the success and the result of that roadmap.
Speaker Change: From the point of view of the user value of Smart Driving, we have long been proposing the meaning of smart driving, which is to liberate energy and reduce accidents.
Thank you. Bye.
Speaker Change: Earlier, we also communicated that our goal is to achieve 10 times more safety compared to driving alone next year. The accident rate should be 10 times higher. Now, we can definitely achieve this goal. So, we think that autonomous driving should solve the safety issue first.
Speaker Change: On this basis, we will look at how to solve the problem of feasibility, including the user experience and user value of Iron Defense Experience.
Rui Chen,
Thank you.
Speaker Change: And regarding our smart driving, we always have this principle. That is, it should serve the benefits and the interests of our users. In that case, we have two principles. The first is that the smart driving should relieve the driving pressure of our users. And secondly, it should reduce the traffic accidents.
Speaker Change: And for next year, our target is that with the smart driving, assisting the driving tasks of the human drivers, the safety level should be 10 times higher than solely driving by the human drivers. And this is actually an achievable target.
Speaker Change: And safety is always a top priority of our features. On top of that, by securing a good safety of the feature, we will then look at the usability and also the experience of the feature, such as further releasing the pressure and the stress of driving. We have the same approach for our other features, like our end-to-end model. We started with active safety, and we see significant benefits on improving the safety of our users with that feature.
Thank you.
Thank you very much.
Thank you.
Thank you.
Speaker Change: Thank you, William. The second question is breakeven and capital requirements. It looks like next year is very exciting, fully loaded with a strong product cycle, also coupled with CAPEX and OPEX intensity. So do we have a refreshed the breakeven timetable and how do we look at the capital requirement in the coming 12 to 18 months?
Hi, again.
and the rhythm of quarter-by-quarter.
Speaker Change: With the overall increase in sales, our entire business cash flow will still
to achieve a positive growth.
Speaker Change: as well as our KFACs. So this is our overall situation regarding cash.
Speaker Change: From the perspective of financing, we don't have a necessary demand, but a dynamic adjustment of the financing rhythm based on the market situation.
Speaker Change: Thank you for the question. Regarding the requirements for the capitals, in the third quarter of this year, we have realized a positive free cash flow, and in Q4, according to the current volume guidance, we expect to continue the positive free cash flow.
Speaker Change: And for the year of 2025, as we target to double our delivery volume, and also by controlling our funding and the pace quarter over quarter, we expect that we will continue a positive growth on our operating cash flow, and such growth will sustain our OPEX and CAPEX.
Speaker Change: on the activities. So regarding the capital requirement, or in general, fund raising requirement, we don't have a must-have agenda. Instead, we will adjust our fund raising plan and agenda according to the market more dynamically.
Thank you for watching!
As three products are launched,
Speaker Change: We are very confident about the growth of our sales next year.
Speaker Change: We also talked about our goals for Q4 this year, and even for the entire year of Maoli. On the basis of increasing sales, we are confident in gradually optimizing Maoli. The third point is that we will continue to work on the effectiveness of our book. We actually have a project called mining inside. We have been doing a good job since last year. Our goal is...
Speaker Change: As our sales increase, we will gradually improve our cost structure to achieve cost savings. So in the whole of 2025, we expect that as the sales increase and the operation improvement mentioned earlier, our losses will gradually be narrowed.
Thank you for watching!
Speaker Change: And regarding your question on the profitability, I would like to answer to that from three perspectives. The first is that as still a young automotive company, sales volume is still a very important factor for us to consider. And just now we have introduced the product plan of all three brands for the next year. With new brands and new products coming into the market, we will be able to realize a higher volume and we are also confident with our sales volume in the coming years. And the second is regarding the vehicle margin. We also will continue to improve our vehicle margin from Q4 this year together with our sales volume. And the third is the continuous cost saving and efficiency improvement initiative.
Speaker Change: Inside of the company, we actually started a project called cost mining to just identify the waste and also improve the cost structure and reduce...
were safe costs on all aspects.
and we also see pretty good effect with this initiative.
Speaker Change: With that, we expect that with improved volume, with improved operations, our loss will also be gradually narrowed.
Speaker Change: also a proportions of the quality will be not met. And as for sales and services, including the power transformation and clean energy supply technology, and some of our new sales and services that are also booming, there will surely be some short-term pressure.
Speaker Change: However, we are confident that we will continue to reduce the loss. As for the company as a whole, our goal is to make a profit for the whole year of 2026. That's what we are doing.
This is William speaking.
Stanley has just introduced our approach to narrow the loft.
Speaker Change: Regarding our overall expenses, our R&D expenses will continue to stay at this relatively high level and for the FG&A expenses.
Speaker Change: Because of our power-up conscious plans, we will roll out the
Hargit.
Thank you.
Thank you, Rui Chen.
Thank you for tuning in.
Speaker Change: Your next question comes from Chang Jing with CICC. Please go ahead.
Chang Jing: Hi, thank you for taking my questions. So my first question is a following-up question for the overseas market.
Chang Jing: So we actually like our brand and also models in Europe market quite early as a pioneer. But now we also see some peer brands, companies, they accelerate their exposure in the European market. So can you share our current like European market strategies, whether we can differentiate our brands and also to further expand our volume?
aggressive overseas extension targets next year.
Thank you for watching!
Speaker Change: Thank you, Tan Jun. It's true that NIO has been in Europe for a while now. From the point of view of the overall operation, it is certainly a bit different from what we expected at the time. However, our plan to enter Europe through NIO is very long-term.
Speaker Change: But if you look at our next plan, we have Encore and FiveLine. With these two brands, there will definitely be more that can enter the market.
Speaker Change: So the global expansion of Angkor and Five Eyes will play a bigger role.
Speaker Change: In terms of NIO, because it is in a premium market, if you add the tariffs in Europe, it is already about the same price as Porsche. So in fact, the scale of its market will be limited.
Speaker Change: we will maintain a long-term investment. We will increase the priority of Envoy and FiveEye to enter the global market. So this is a general strategy adjustment. It's not really an adjustment, it's actually one of our established strategies. Maybe next you will see Envoy and FiveEye enter more countries and enter more markets.
Speaker Change: Thank you for the question. It's true that NIO has been in the European market for a while, and its overall operations and performance didn't really live up to our original expectations.
Speaker Change: Yet for the new brand, our expectation for the European market is actually for a pretty long-term vision. And also starting this year and the next year, another difference is regarding our second and third brand, Onward and FarFly. These two brands have a broader market globally. With that, we will also be able to continue our international expansion, leveraging these two brands, and these two brands will be playing a bigger role in our next step.
Speaker Change: Especially for NIO it is a premium brand now with the tariff in Europe its selling price is basically on par with the price of a Porsche. In that case its market is becoming more and more limited But we will still keep a long-term presence of the NIO brand in the European market But in the meantime, we will prioritize the global expansion with the Enver and the Firefly brand that will be our strategy So starting next year, you will see that Enver and the Firefly products are becoming available in more and more countries and regions
Speaker Change: Another point is that it's not the same as the Chinese market. In the Chinese market, we start from the high-end market.
Speaker Change: So, Anguo can now share the power of NIO. But if we look at the global market, Anguo's market positioning will definitely be more suitable, and will be able to increase sales.
Speaker Change: NEO will rely more on the recycling chain system that Anguo first established. So this is a different sequence from the one in the Chinese market.
Thank you.
Speaker Change: And another difference is that here in the Chinese market, we started with the new brand for the premium segment. And then we established the power swapping and the charging network, and Anbo brand is now sharing all these established resources and networks.
Speaker Change: But when it comes to the global market, actually, according to the product definition and brand positioning, AOMO actually has a larger market. And also, it can ramp up to a higher volume much faster than the new brand. In that case, the power swap stations and the charging facilities deployed for the AOMO brand will then...
Speaker Change: be leveraged by the NIO brand. So in the global market, actually, the NIO brand will rely more on the Envel brand. And with that, we will be establishing the charging and swapping facilities centering on the Envel brand and the Firefly brand for the global market.
Rui Chen,
Speaker Change: Okay, thank you. My second question is regarding to the other cells' growth loss. So we can see the growth loss of other cells.
Speaker Change: also narrowed significantly for the previous quarters, so which I think may be related to the increase in our sales volume and also the increased.
Speaker Change: in our charging and swapping charges and also services. So how do we look forward to the trend of the gross profit margin of other cells and whether we have an expectation when it can turn positive.
Okay, what about other business?
壹個問題係咪有個問題等我分析,我哋先講到之後。
Speaker Change: Q2 and Q3 achieved a gradual increase in capital losses and interest rates. One of the main reasons is the increase in the efficiency of our post-sales services. We also mentioned this in the previous few quarters.
Speaker Change: In addition, the layout of the Inter-Korean Strait network has been slowed down due to the development and rhythm of the four-storey station. So the overall loss has been reduced.
Speaker Change: The layout of the whole power supply chain will be further speeded up next year to achieve the goal of connecting the power supply line. The early layout will bring us losses in other businesses.
Speaker Change: Of course, our goal is to improve our post-sale business and to cover the losses caused by the pre-arrangement of our power station. But we still need to make more efforts in this regard. This is probably the situation and trend of development.
Speaker Change: Thank you for the question. Regarding other business, in the second and third quarter, we have narrowed the losses on other business and also improved the growth margin.
Speaker Change: This is mainly because, on the one hand, we have been improving the efficiency of our after-sales services.
Speaker Change: And on the other hand, because of the R&D pace of the fourth generation PowerSwap station, we had to slow down the network deployment and infrastructure construction of the PowerSwap stations. With that, our net loss has narrowed in the third quarter. But in the coming quarters, we will – on the one hand, we will still continue to improve the efficiency.
and other experts.
Speaker Change: earlier than the actual need. And in the meantime, with our Power Up County plan, for the coming quarters we will speed up the installation and construction of this swap station.
Speaker Change: with that there will be higher loss on other business but overall speaking we hope that the profitability or the improvement on the upturn sales services can offset the loss we have on the advanced deployment of this power swap facilities that will be our overall strategy
Thank you, everyone.
Thank you.
Speaker Change: Your next question comes from Paul Gong with UBS. Please go ahead.
Speaker Change: Hi, William. Thanks for taking my questions. Two questions here. The first question is regarding the demand visibility for the Anvil L60. You seem to be pretty confident with the 20,000 unit of the volume of the L60 delivery in March. That would put L60 on par to Xiaomi H27 and the L6 for now. But when you consider right now it is peak season with the help of the stimulus and moving to Q1 is going to be slack season with perhaps less policy support. How do you have such visibility? Will you carry over, let's say,
Speaker Change: significant amount of the backlog you take from right now into the Q1 delivery or how do you have such kind of strong visibility for the 20,000 delivery in March?
Speaker Change: Thank you, Paul. We are very interested in the L6 demand.
Rui Chen,
Rui Chen: At the same time, there is the issue of the due date of the subsidy at the end of the year.
if we watch their new episodes, it could help us
Rui Chen: the demand is definitely not as hot as in September. But if we look at a very important number, which is the conversion rate of our market price, we see that it is at a very high position. Of course, it is not convenient to say the specific number, but if we look at it now, the conversion rate of our market price is far higher than any other model, including a model like NIO.
that means that... in this market...
Rui Chen: compared to competitors of the same level, their product and price competitiveness is very strong. So we are very confident about this.
Rui Chen: Our main task now is to build up our network coverage as soon as possible. We currently have more than 190 stores.
Rui Chen: In terms of regional coverage, it is still not high enough. Compared to Tesla and Nissan, it is still relatively low. So we will continue to open more stores to build up our capacity.
These functions will continue to be seen in the future.
Since January, everyone has been sticking to the same level.
Rui Chen: So, we're going to give you a time to meet you on the show notification.
Rui Chen: We are very confident about the needs of the L60. We are very confident about its productivity, and the continuous construction of the network, including the power exchange.
Speaker Change: Thank you for the question. We are confident in the demand for the L60. As in the recent several months, the wait time for the delivery of the L60 is relatively long and also starting next year, some of the subsidies on the vehicles will be gone. In that case, our short-term demand is affected because of this disturbance.
Speaker Change: But if you look at the actual conversion rate from test drive to order, you will see a pretty high rate. Please forgive me that I cannot disclose the specific number, yet this conversion rate is higher than any existing new products.
Speaker Change: So speaking with a competitive product, with a competitive price, we are confident with this product even against the competition in the market.
Speaker Change: And for the moment, our main focus is to enhance the coverage of its sales and service network. At the moment, it has around 190 stores. And for the next step, we will enlarge the coverage as in comparison to Tesla and the Liotto, such coverage is not expensive enough. So we will open more stores, we will enhance and enlarge our sales force.
Speaker Change: And starting in January next year, as the subsidies will be basically canceled or removed for all the products in the similar segment, in that case, we will be on the same level for the competition, but with a stronger product competitiveness and also established self-capacity and capability, we are confident with the L60's overall performance.
and the other one.
Speaker Change: Thank you. My second question is regarding the next-generation platform NT3. I think that NT2 versus NT1 has a significant improvement of the autonomous driving calculation power, including the four O-rings, and also has improved some of the powertrain efficiency. Right now, when you are thinking about designing the NT3, how do you think of the platform in terms of, let's say, the computing power for the AD, the battery size, the power of the motor, and the system integration, the architecture, etc. So can you give us a little bit of color of the technology direction of the NT3 platform, please?
Thank you for watching.
Speaker Change: Thank you. As for NEO, ET9 is the first model of our brand new platform. So you can see, whether it is from the high-pressure architecture, or from the EE architecture, or from our operating system,
Speaker Change: as well as AD's Central Computing Cluster which uses our own neural networks as well as our entire sensors. If you look at it, there are very different things which are definitely very different from our current products. So basically, we will use these technologies on ET9 and other products in the future.
Thank you for watching.
Speaker Change: Number, do you think it suits our name?
先有的這些產品的迭代 and the generation of existing products.
Speaker Change: So, in terms of technology, I think NIO has been a milestone in the last 10 years in terms of technology investment. So, it is also a very important foundation for our future products.
Thank you. Bye.
Rui Chen,
Speaker Change: For the new brand, the ET9 will be the first model coming off from our latest generation technology platform. It is equipped with many new things, including high-voltage architecture, e-architecture, operating system, smart driving capabilities enabled by our in-house developed chip for the smart driving, and also advanced and high-performance sensors.
Speaker Change: So if you look at its configuration and performance, it is quite different from any of our existing products. It is basically at a different level. And gradually, these technologies will be trickling down to our future products on the third generation platform. We will use these technologies to iterate and upgrade our existing products. And for AT&I, it is the embodiment of our R&D investment and the results achieved in the past 10 years.
Thank you.
Speaker Change: and they're going to be talking about the the the the the the the the the the the the the the
Thank you.
Rui Chen, Stanley Qu.
Speaker Change: Your next question comes from Tina Hur with Goldman Sachs. Please go ahead.
Tina Hur: Thanks, management, for taking my questions. The first one is regarding operating expenses. In terms of R&D, I also see that usually in the fourth quarter, there is about close to $1 billion of RMB of higher R&D expense versus third quarter. Should we expect a similar type of seasonality into 4Q24? And also for 2025, as we continue to develop new products and then continue to invest in autonomous driving and other technologies, what level of R&D spending are we looking at? And also for sales and marketing in 2025, seeing that this year we launched
Wei Feng, Rui Chen, William Li
Thanks for watching!
Speaker Change: Regarding R&D Expense, we basically maintain the investment scale of around 3 billion yuan per quarter. In terms of quarterly fluctuations, each quarter will increase or decrease according to the progress and strength of our research. In terms of quarterly fluctuations, it is expected to increase by more than three quarters due to the pace of R&D of our new products.
and others. Thank you. Thank you.
Speaker Change: the investment of around 3 billion RMB per quarter. Because the scale of our entire R&D team is still around 11,000 people. With the change of the project, there may be an increase or decrease.
I hope to achieve this kind of efficiency improvement.
Thank you for watching!
Thank you for watching!
Speaker Change: Regarding the R&D expenses, in general, we will be having our investment in R&D for around 3 billion RMB per quarter, and we will be stabilizing at around that level. But because of the differences of the project and also at the different stages of the project R&D, the actual spending, there will be ups and downs in the actual spending for every quarter. For example, in the fourth quarter of this year, the R&D expenses will be higher or is expected to be higher than the third quarter. That is also mainly because the products are at the different stage of the R&D and the cycle and the expenses will also be different accordingly.
Speaker Change: For the year of 2025, we will also keep our R&D expenses at the same, at around the same level. That is around the 3 billion RMB per quarter on the non-gap basis.
Speaker Change: We will also keep the R&D team in the rough similar size, around 11,000 people, and then as we progress with our R&D projects and project development, there will also be slight ups and downs in the R&D expenses on a quarterly basis, but in general it will be around $3 billion.
Regarding the SG&A expenses, as also I've mentioned,
Speaker Change: But we will also manage this quarter over quarter so that we can make sure that we optimize the ratio of the SG&A in comparison to the overall sales revenue.
Thank you.
Speaker Change: share of losses of equity investee. So we've seen over the past three quarters that we have seen a negative number and that number has been expanding. So is this really related to the battery as a service operation? And then how should we think about this loss from the from the equity investee going forward? Thanks.
Speaker Change: Yes, in the third quarter, the share of loss of equity did indeed increase. We, considering the entire company's strategy, also made some investments in the entire industry surrounding the future. The increase in losses in the third quarter mainly came from losses incurred by the investment companies.
Speaker Change: business scale, with our first quarter bus price adjustment, the bus' penetration rate actually rose very quickly.
Speaker Change: The scale of the business also brings a lot of growth. So, in terms of profitability, Wei Feng has improved a lot this year compared to last year.
Thank you.
Speaker Change: Thank you for the question. In the third quarter, the share of the losses of the equity has increased. That is mainly because for the entire company, we have made some investments into the upstream and the downstream companies centering on this industry. And in the third quarter, the loss went up mainly because of the losses of our investees, which is also acceptable and understandable as they are also in a highly competitive industry.
Speaker Change: In terms of Waynone, which is our battery asset management company, its actual business means that it will not worsen our losses on the shares, because if you look at its actual business, since
Speaker Change: after we have adjusted the prices for the battery asset service monthly subscription fee, we actually have witnessed a higher take rate on the bus service, especially in the second half with both new and the on-wall products into the market. The business actually experienced the growth with the battery asset management. In that case it has a pretty promising profitability going forward.
Thank you.
Thank you.
Speaker Change: As there are no further questions, now I'd like to turn the call back over to the company for closing remarks.
Thank you. Bye.
Speaker Change: Thank you again for joining us today. If you have any further questions, please feel free to contact us through the contact information provided on our IL website. This concludes the conference call. You may now disconnect your line. Thank you.
Thank you.
Thank you for watching!
Thank you for watching!
The
[music]
[music]
Speaker Change: Vivo Facebook WhatsApp Google Smartphone Between One Home and Home Visit www.YNOU.ORG for more info
Thank you for watching!
Thank you for watching!
[music]
Rui Chen, Stanley Qu, Unknown Executive, Tim Hsiao [inaudible]
ubmb via websocketlibrary.com
Thank you for watching!
Thank you for watching!
The End
[music]
Rui Chen, Stanley Qu, Unknown Executive, Tim Hsiao [inaudible]
Can't forget my honeys ...
Thank you for watching!
Thank you for watching!
The End
[music]