Q2 2025 XPeng Inc Earnings Call

Are in a listen only mode.

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

Today's conference call is being recorded.

I will now turn the call over to your host Mr. Aleksey <unk> head of Investor Relations and capital markets of the company. Please go ahead Alex.

Thank you Hello, everyone and welcome to <unk> second quarter, two some 25 earnings conference call, our financial and operating results were issued via Newswire services earlier today and available online.

Speaker #2: Hello, ladies and gentlemen. Thank you for standing by for the second quarter 2025 earnings conference call for Xpeng Inc. At this time, all participants are in a listen-only mode.

Alex Xie: Hello, ladies and gentlemen. Thank you for standing by for the second quarter 2025 earnings conference call for XPeng Inc. At this time, all participants are in a listen-only mode. After management's remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Mr. Alex Xie, Head of Investor Relations and Capital Markets of the company. Please go ahead, Alex.

To view the earnings press release by visiting the IR section of our website.

Speaker #2: After management's remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Mr. Alex Xie, Head of Investor Relations and Capital Markets of the company.

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It depends on today's call from our management team will include co founder Chairman and CEO, Mr. Christian <unk>, Vice Chairman and President Dr. Brian <unk>, Vice President of corporate Finance and VW projects, Mr. Charles Chung Vice President of Finance accounting, Mr. James Hu.

Speaker #2: Please go ahead, Alex.

Speaker #3: Thank you. Hello, everyone, and welcome to Xpeng's second quarter 2025 earnings conference call. Our financial and operating results were issued by our newswire services earlier today and are available online.

He Xiaopeng: Thank you. Hello everyone, and welcome to XPeng's second quarter 2025 earnings conference call. Our financial and operating results were issued by 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. Participants on today's call from our management team will include our Co-founder, Chairman and CEO Mr. He Xiaopeng, Vice Chairman and President Dr. Brian Gu, Vice President of Corporate Finance and VW Projects Mr. Charles Zhang, Vice President of Finance Accounting Mr. James Wu, and myself. Management will begin with prepared remarks, and the call will conclude with a Q&A session. A webcast replay of this conference call will be available on the IR section of our website. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S.

And myself.

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

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

Speaker #3: You can also view the earnings press release by visiting the IR section of our website at ir.xiaopeng.com. Participants on today's call from our management team will include our co-founder, chairman, and CEO, Mr. Xiaopeng He.

Before we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the private Securities Litigation Reform Act of 1995 forward looking statements involve inherent risks and uncertainties as such the company's results may be.

Speaker #3: Vice Chairman and President, Dr. Brian Gu; Vice President of Corporate Finance and VW Projects, Mr. Charles Zhang; Vice President of Finance Accounting, Mr. James Wu; and myself.

Materially different from the views expressed today.

Speaker #3: 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.

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

Speaker #3: 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.

Below. Please also note that excellent earnings press release and this conference call include the Scotia of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures <unk> earnings press release contains a global.

He Xiaopeng: Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the public filings of the company as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update forward-looking statements except as required under applicable law. Please also note that XPeng's earnings press release and this conference call include the disclosure of unaudited GAAP financial measures, as well as unaudited non-GAAP financial measures. XPeng's earnings press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures. I will now turn the call over to our Co-founder, Chairman and CEO Mr. He Xiaopeng. Please go ahead.

Speaker #3: Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the public filings of the company as filed with the U.S. Securities and Exchange Commission.

A reconciliation of the unaudited.

non-GAAP measures to the unaudited GAAP measures I will now turn the call over to our co founder Chairman and CEO. Mr. Hertel Pung. Please go ahead.

Speaker #3: The company does not assume any obligation to update forward-looking statements except as required under applicable law. Please also note that Xpeng's earnings press release and this conference call include the disclosure of unaudited GAAP financial measures.

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Speaker #3: As well as unaudited non-GAAP financial measures, Xpeng's earnings press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures. I will now turn the call over to our co-founder, chairman, and CEO, Mr. Xiaopeng He.

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Speaker #3: Please go ahead.

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Speaker #4: 好, 大家好。2025年二季度小鹏汽车的各项有核心的业务跟财务的指标, 包括了销量、收入、毛利、在手的现金都达到了历史的最佳的水平。那么在二季度, 我们的交付量为103,181台, 同比增长242%。其中包括Mola的M03 Max版本, 上市即热销。那么在全系的订单中间, 占比持续超过了80%。那么独领高阶辅助驾驶在大众市场的普及。不仅如此, 在面对行业激烈的价格竞争跟卷的情况下, 小鹏坚持行稳自圆的长线思维。我们在规模优先的同时, 不断地提升各项基础的体系的能力, 包括了我们对经营的能力。所以我们的汽车毛利率在过去的连续八个季度有改善, 其中在二季度环比增加了3.8个百分点, 达到了14.3%。这创造了历史新高, 使公司的毛利率上升到17.3%。净亏损进一步收窄。那么二季度, 我们的自由现金流超过了20亿元, 季度末的在手总现金超过了475亿元。

Operator: 2 billion yuan, and our total cash on hand at the end of the quarter exceeded 47.5 billion yuan.

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Hello, everyone in Q2 2005.

Can you give me kind of mine performance across our core business and our financial metrics, including delivery revenue gross profit margin.

This quarter our deliveries.

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The 2% increase year over year.

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Speaker #2: Hello, everyone. In Q2 2025, we achieved a record-high performance across our core business and the financial metrics, including deliveries and revenue growth, profit margin, and cash on hand.

Brian Gu: Hello everyone. In Q2 2025, we achieved a record high performance across our core business and financial metrics, including deliveries, revenue, gross profit margin, and cash on hand. During this quarter, our deliveries reached 103,181 units, a 242% increase year over year. The MOLA M03 Max immediately became a best-seller upon launch, accounting for over 80% of total MOLA M03 sales and leading the way in bringing high-level ADAS technology to the mass market. Despite intense price competition, we remain focused on steady, long-term sustainable growth, prioritizing scaling up whilst continuously strengthening the foundational systems. Our vehicle gross margin increased 3.8 percentage points quarter over quarter to 14.3%, marking the eighth consecutive quarter of improvement and raising the company's overall gross margin to 17.3%. Net losses are narrowing further.

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<unk> long term sustainable growth.

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Speaker #2: During this quarter, our deliveries reached 103,181 units, a 242% increase year over year. The Mola M03 Max immediately became a best-seller upon launch, accounting for over 80% of total Mola M03 sales and leading the way in bringing high-level auto technology to the mass market.

Our vehicle gross margin increase of three eight percentage points quarter over quarter to 14, 3%, marking the eighth consecutive quarter of improvement and waste in the company's overall gross margin to 17, 3% net losses narrow input.

Free cash flow in Q2.

<unk> 2 billion and total cash on hand at the end of quarter to RMB 47.

Speaker #2: Despite intense price competition, we remain focused on steady long-term sustainable growth, prioritizing scaling up while continuously strengthening the foundational systems. Our vehicle growth margin increased 3.8% quarter over quarter to 14.3%.

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Speaker #2: Marking the eighth consecutive quarter of improvement and raising the company's overall growth margin to 17.3%. The net losses are narrowing further. Free cash flow increased to exceed $2 billion, and total cash on hand at the end of the quarter surpassed $47.5 billion.

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Brian Gu: Free cash flow exceeded RMB 2 billion, and total cash on hand at the end of the quarter surpassed RMB 47.5 billion.

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Speaker #4: The The most achieving Xiaopeng G7上市, 它首发搭载了我们自研的图灵AI芯片。在过去的四周里面, 交付获得同级的销量第一。并且很开心的是, 其中Ocean版本占比超过50%。那么这意味着我们开始引领行业进入到Max, 和Ocean这两个更高阶自动辅助驾驶时代的到来。那么同时在今年的四季度, 小鹏的鲲鹏超级电动车型会开始量产。这意味着我们在2025年将全面完成智能化和一车双能这两个全新一代技术平台的升级。那么包含了纯视觉的自驾, AI的大模型, 图灵AI芯片和51超快充电芯, 以及鲲鹏超级电动, 这一系列体系。那么我相信会跟竞争对手全面拉开技术代差。确保我们在未来两年的大产品周期里面, 可以实现整体更好的模块化, 更好的供应链的管理, 支持产能的快速向上提升的能力。这样最后整体来加速整体的规模的增长。

He Xiaopeng: for rapid capacity expansion. This will ultimately accelerate overall scale growth.

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In July we launched the G seven our first model.

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First the ultra experiments marks a new things in high level on us in the industry.

Bill Clinton Super Electric models will begin mass production in Q4.

In us to fully upgraded to a generation platform with intelligence and the new vehicle dual energy system by 2025.

Speaker #2: In July, we launched the G7, our first model featuring the in-house developed Turing AI SoC. Over the past four weeks, it has become the top seller among its competitors.

Brian Gu: In July, we launched the G7, our first model featuring an in-house developed Turing AI SoC. Over the past four weeks, it has become the top seller among its competitors, with the Ultra trim making up over 50% of sales. The Max Plus Ultra experience marks a new phase in high-level ADAS in the industry. Our Xpeng Super Electric models will begin mass production in Q4, taking us to fully upgrade to a generation energy platform with intelligence and the new vehicle dual energy system by 2025. This platform will include vision-based ADAS, advanced AI models, the Turing AI SoC, 5C ultra-fast charging battery cells, and the Xpeng Super Electric system. These innovations will give us a generational lead, allowing for greater modularity, better supply chain management, and scalability during our product cycle over the next two years, boosting our sales growth.

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Speaker #2: With the Ultra trim making up over 50% of sales, the Max Plus Ultra experience marks a new phase in high-level autos in the industry.

Innovations that will give us the aitken, please no need allowing for greater modularity better supply chain management and scalability doing our product cycle over the next two years boosting our sales growth.

Speaker #2: Our QP Super Electric models will begin mass production in Q4, leading us to fully upgrade to a generation R&D platform with intelligence and the new vehicle dual energy system by 2025.

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Speaker #2: This platform will include vision-based autos, advanced AI models, the Turing AI SoC, 5G ultra-fast charging battery cells, and the QP super electric system. These innovations will give us a generational lead, allowing for greater modularity, better supply chain management, and scalability during our product cycle over the next two years.

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Speaker #2: Boosting our sales growth,

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He Xiaopeng: 我相信 AI-powered vehicles 的竞争在相当的一段时间内会是一场没有终点的马拉松比赛。因此，我们会继续加强 XPeng 汽车整体的基础能力建设，并聚焦在四个核心支柱。首先之一就是技术领先，我们希望打造物理世界 AI 的全域的技术站，包括垂直领域的全栈资源跟软硬件的横向的跨域融合。在垂直领域里面，我们会坚定的把造型、AI、质量这三个体系的长板进一步做扎实。第二个部分的这个基础能力呢，就是组织能力。我们期望团队要有优秀且适合的人才，把管理自动化工具集做好，从 CEO 开始，全面把 AI 应用在企业的管理、研发跟协作里面，最大化把企业的群体复利效益做起来。那第三个， XPeng 会建立更强大的商业化能力，要把好的用户产品做到好的商业产品，并且品牌做强，知道省钱，知道花钱更会赚钱。那么第四个，也就是说，我们会把全球化的基础能力进一步夯实。XPeng 全球化和很多公司走的道路并不一样，我们在几年前的产品规划就考虑到国际 markets 的需求，包括了技术的规划，用更好的科技和品质打动海外消费者，是我们的长期主意。我们会长期在海外耐心投入和布局。

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<unk> for AI powered vehicles that will continue indefinitely E to succeed I aim to strengthen the company's core capabilities in four key areas first.

Focusing on technology leadership by developing AI capabilities in the physical world across all domains. This includes phone Doc self development within specific vertical area and cross domain integration in vertical areas. We are dedicated to enhancing design AI and quantity second.

Building organizational strength by attracting and retaining top talent to each well.

Speaker #2: The race for AI-powered vehicles will continue indefinitely. To succeed, I aim to strengthen the company's core capabilities in four key areas: first, focusing on technology leadership by developing AI capabilities in the physical world across all domains; this includes full-stack self-development within specific vertical areas and cross-domain integration. In vertical areas, we are dedicated to enhancing design, AI, and quality. Second, building organizational strength by attracting and retaining top talent suited to each role, utilizing world-class management practices along with automated tools. Starting with a CEO, we will leverage AI to optimize management, R&D, and collaboration, maximizing the organizational compounding effect. The third focus is excelling in commercialization, shifting from creating user-centric products to developing commercially successful products, and establishing a strong brand while reducing costs and increasing profitability.

Brian Gu: The race for AI-powered vehicles will continue indefinitely. To succeed, I aim to strengthen the company's core capabilities in four key areas. First, focusing on technology leadership by developing AI capabilities in the physical world across all domains. This includes full stack self-development within specific vertical areas and cross-domain integration. In vertical areas, we are dedicated to enhancing design, AI, and quality. Second, building organizational strength by attracting and retaining top talent suited to each role, implementing world-class management practices along with automated tools. Starting with the CEO, we will leverage AI to optimize the management, R&D, and collaboration, maximizing organizational compounding effect. The third focus is XPeng in commercialization, shifting from creating user-centric products to developing commercially successful products and establishing a strong brand while reducing cost and increasing profitability. Lastly, our globalization approach is unique.

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With the ACO, we will leverage AI to optimize the management.

D and collaboration maximizing organizational compounding effect the third focus is.

<unk> and commercialization shifting from creating essentially a product to developing commercially successful products and establishing a strong brand, while reducing cost and increasing profitability lastly, our globalization approach is unique.

Integrated global market needs, what product are planning physical we attract the international he says with the superior technology and quality.

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Speaker #2: Lastly, our globalization approach is unique. Having integrated global market needs into our product planning years ago, we attract international users with superior technology and quality through long-term growth with patience.

Brian Gu: Having integrated global market needs into our product planning years ago, we attract international users with superior technology and quality through long-term growth with patience.

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Speaker #4: Some of the接下来我们30万级的豪华智能轿跑全新的小鹏PC会在下周正式上市, 那么PC代表着一种勇于探索的开创精神。我相信这一次小鹏的企业价值观的一种表现, PC不跟随潮流, 因为我们相信卓越的设计跟科技创新本身能够引领潮流。那么PC会拥有与众不同的造型、极致的操控和领先一代的AI技术。我们希望PC成为年轻的Dream Car, 那么PC代表着小鹏对于未来设计的一个新的目标。小鹏全新PC开始的每款车, 我们都追求科技第一, 同时也要颜值第一的产品逻辑。我们会把更多的资源跟权重给到造型团队, 希望未来的车产品和整个的体验能够给大家带来不一样的设计跟情绪价值。那么也非常开心的是, 自从首秀以来, 我们看到用户对PC的关注度远超想象, 小定数据打破了包括之前所有车型, 包括Mola的同期的历史记录。我们期待全新的PC的销量会成为30万以内, 纯电轿车市场的前三名, 那么随着全新PC的交付, 我的目标也是从9月份开始, 小鹏公司的月交付量将会稳健地超过4万台每个月。

He Xiaopeng: 那么在接下来, 我们30万级的豪华智能轿跑, 全新的XPeng P7会在下周正式上市。那么P7代表着一种勇于探索的开创精神。我相信这一次XPeng的企业价值观的一种表现, P7不跟随潮流, 因为我们相信卓越的设计跟科技创新本身能够引领潮流。那么P7会拥有与众不同的造型、极致的操控和领先一代的AI技术。我们期望P7成为年轻人的Dream Car。那么P7代表了XPeng对于未来设计的一个新的目标。从全新P7开始的每款车, 我们都追求科技第一, 同时也要颜值第一的产品逻辑。我们会把更多的资源跟权重给到造型团队, 希望未来的车产品和整个的体验能够给大家带来不一样的设计跟情绪。那么也非常开心的是, 自从首秀以来, 我们看到用户对P7的关注度远超想象, 小定数据打破了包括之前所有车型, 包括MOLA M03 Max的同期的历史记录。我们期待全新的P7的销量会成为30万以内纯电轿车市场的前三名。那么随着全新P7的交付, 我的目标也是从9月份开始, XPeng公司的月交付量将会稳健的超过4万台每个月。

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Next week, the one you're at <unk> seven a premium intelligent that sports sedan and the RMB 300000 price range will be officially launched the pizza oven reflects our innovative spirit and the core values showcasing the exceptional design and advanced.

Allergy, Ken sets market trends, rather than following them with its distinctive style drilling performance and generation ahead, leading AI technology. The pizza oven is the ideal vehicle for younger consumers and highlight the excellent future design approach. It for all models following pizza oven.

Speaker #2: Next week, the all-new Xpeng P7, a premium intelligent sports sedan in the R&D $300,000 price range, will be officially launched. The P7 reflects our innovative spirit and core values.

Brian Gu: Next week, the all-new XPeng P7, a premium intelligent sports sedan in the RMB 300,000 price range, will be officially launched. The P7 reflects our innovative spirit and core values, showcasing the exceptional design and advanced technology can set market trends rather than following them. With its distinctive style, thrilling performance, and generation-ahead leading AI technology, the P7 is the ideal vehicle for younger consumers. It highlights XPeng's future design approach for all models following P7, combining top-tier technology with superior aesthetics. We are investing more strategically in our styling team to ensure future models deliver innovative, emotionally impactful designs. Since its debut, user interest has vastly exceeded expectations, with pre-sales orders surpassing all previous XPeng models during the same period. I anticipate the new P7 will rank among the top three best-selling pure electric sedans in the sub-RMB 300,000 segment.

Combining top kit technology with superior aesthetics, we are investing more strategically in our styling teams to ensure future models that deliver innovative emotionally impactful designs. Since its debut user interest has vastly exceeded expectations with pre sales.

Speaker #2: Showcasing exceptional design and advanced technology can set market trends rather than following them. With its distinctive style, thrilling performance, and generation-ahead leading AI technology, the P7 is the ideal vehicle for younger consumers.

Waters, surpassing all previous Exco models during the same period I anticipate that the new piece of it will rank among the top three best selling pure electrics sedans in the south of 300000 RMB segment with deliveries of the new Pizza oven. We aim for monthly sales that you're spending.

Speaker #2: It highlights Xpeng's future design approach for all models following the P7, combining top-tier technology with superior aesthetics. We are investing more strategically in our styling team to ensure future models deliver innovative, emotionally impactful designs.

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Speaker #2: Since its debut, user interest has vastly exceeded expectations. With pre-sale orders surpassing all previous Xpeng models during the same period, I anticipate the new P7 will rank among the top three best-selling pure electric sedans in the sub-300,000 R&D segment.

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Speaker #2: With deliveries of the new P7, we aim for monthly sales to steadily surpass 40,000 units starting in September.

Brian Gu: With deliveries of the new P7, we aim for monthly sales to steadily surpass 40,000 units starting in September.

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Speaker #4: 那么在今年四季度, 我们还会推出小鹏的首款鲲鹏超级电动车型, 也就是F9, 那么这标志着小鹏汽车会正式开启了一个车两种人员的大产品周期的开始。那么鲲鹏超电的X9的纯电续航会超过450公里, 综合续航会超过1,500公里, 我相信这会是同类产品的续航冠军。那么之后我们还会发布多款超级电动车型的产品, 那么这些产品的目标都将是具备同类新能源产品中间最长的纯电续航和最快的51超级充电。

He Xiaopeng: Super Electric Edition的X9的纯电续航会超过450公里，综合续航会超过1,500公里。我相信这次会是同类产品的续航冠军。之后我们还会发布多款超级电动车型的产品，这些产品的目标都将是具备同类新能源产品中间最长的纯电续航和最快的5C ultra-fast charging。

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In Q4, we will introduce a day X nine Quinn Pony Super Electric edition, our inaugural Quinn Pony Super Electric vehicle, marking the beginning of our one vehicle Duke energy era with over 450 kilometers of the pure electric range and a combined range. It's a policy in 1000 to 500.

Kilometers this model will lead in range within its category moving forward, we plan to launch several more Super electric models.

Each offering top tier pure electric range and finds the ultra fast charging capabilities that exceed those of our comparable N E DS on the market.

Speaker #2: In Q4, we will introduce the X9 QP Super Electric Edition, our inaugural QP super electric vehicle, marking the beginning of our one-vehicle dual energy era.

Brian Gu: In Q4, we will introduce the X9 Quinpeng Super Electric Edition, our inaugural Quinpeng Super Electric vehicle, marking the beginning of our one-vehicle dual energy era. With over 450 kilometers of pure electric range and a combined range surpassing 1,500 kilometers, this model will lead in range within its category. Moving forward, we plan to launch several more super electric models, each offering top-tier pure electric range and 5C ultra-fast charging capabilities that exceed those of comparable MEVs on the market.

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Speaker #2: With over 400 kilometers of pure electric range and a combined range surpassing 1,500 kilometers, this model will lead in range within its category. Moving forward, we plan to launch several more super electric models, each offering top-tier pure electric range and 5G ultra-fast charging capabilities that exceed those of comparable NEVs on the market.

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Speaker #4: 那么我相信小鹏汽车跟其他车企的一个非常大的不同来自于我们过去11年对于软件和硬件在核心技术全站资源的坚定投入。那么这10年的坚持使得我们现在能够以AI驱动将大算力的AI芯片跟物理世界大模型进行联合研发, 跨域进行融合, 通过海量的数据和自动化的英法体系进行快速的迭代, 长期来说一定会构建成物理世界的超级智能体。那么从三季度上市的小鹏G7和即将上市的PC开始, 我们会率先开启L3级别算力的时代。那么小鹏过车型的Ocean版本都将会搭载三颗自研的图灵AI芯片, 有效算力会达到2,250TOPS。那么这在全球的量产车型中间处于绝对领先的水准, 是同行最新一代旗舰算力的3-10倍这个级别。那么小鹏的G7、P7跟后续的车型的Ocean版本将会部署端侧的VOA和VOA VOM大模型。那么基于图灵AI芯片, 我们部署的车端的模型的规模将会提升一个数量级多, 是起码数十亿的参数量。那么VOA的模型的运行的帧率将会是同行的两倍或以上, 那么我们相信一定会做到大佬更聪明, 小佬也更敏捷, 从根本上提升自驾的安全性和体验。

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He Xiaopeng: the small models more agile, fundamentally improving the safety and experience of autonomous driving.

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What distinguishes us from automakers and software companies is our decade long dedication to full staff in house development of our core hardware and software technologies.

This commitment has enabled us to co develop a high performance AI chips and foundational models for the physical world.

Moving to cross domain integration and speeding up of iterations.

Extensive datasets and computing infrastructure ultimately leading to the AI Super agents operating in the physical world beginning with the ex Poland <unk> seven and <unk> seven launches in Q3, we are leading the way in level three.

Speaker #2: What distinguishes us from automakers and software companies is our decade-long dedication to full-stack in-house development of core hardware and software technologies. This commitment has enabled us to co-develop high-performance AI chips and foundational models for the physical world.

Brian Gu: What distinguishes us from automakers and software companies is our decade-long dedication to full stack in-house development of core hardware and software technologies. This commitment has enabled us to co-develop high-performance AI chips and foundational models for the physical world, achieving true cross-domain integration and speeding up iterations through expensive datasets and computing infrastructure, ultimately leading to AI super agents operating in the physical world. Beginning with the XPeng G7 and P7 launches in Q3, we are leading the way in L3 level computing power. All Ultra trims across our entire model lineup will feature the three in-house developed Turing AI SoCs, providing a total computing power of 2,250 TOPS. This positions us as the global leader among mass-produced vehicles, with over three times the computing power of our latest flagship competitors. These Ultra trims also include in-vehicle VLA plus VLM models.

Now three level computing power all ultra trends across our entire model lineup will feature the three in house developed to treat touring AI soc's, providing a total computing power of the 2250 comps does it positions us as the global leader in my math.

Speaker #2: Achieving true cross-domain integration and speeding up iterations through extensive data sets and computing infrastructure, ultimately leading to AI super agents operating in the physical world.

Use of vehicles with over three times, the computing power of our latest flagship competitors.

These ultra trends also includes in vehicle V L. A plus B L M model driven.

Speaker #2: Beginning with the Xpeng G7 and P7 launches in Q3, we are leading the way in Level 3 computing power. All Ultra trims across our entire model lineup will feature the three in-house developed Turing AI SoCs, providing a total computing power of 2,250 TOPS.

Driven by jewelry, a I N C. The scale of our in vehicle models will increase by an order of magnitude, reaching billions of a parameters with the BLA models running at twice the frame rate of competitors truly.

Truly exemplifying smarter green agile control and elevating the safety and the user experience of Argos.

Speaker #2: This positions us as the global leader among mass-produced vehicles, with over three times the computing power of our latest flagship competitors. These Ultra trims also include in-vehicle VOA plus VOM models.

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Speaker #2: Driven by Turing AI SoCs, the scale of our in-vehicle models will increase by an order of magnitude, reaching billions of parameters, with VLA models running at twice the frame rate of competitors.

Brian Gu: Driven by Turing AI SoCs, the scale of our in-vehicle models will increase by an order of magnitude, reaching billions of parameters, with VLA models running at twice the frame rate of competitors, truly exemplifying smarter brain, agile control, and elevating the safety and user experience of ADAS.

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Speaker #2: Truly exemplifying smarter brains, agile control, and elevating the safety and user experience of autos.

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Speaker #4: 那么我期望小鹏的VOA跟VOM将会成为用户最安全的专属司机和最贴心的智慧管家。那么让整个的出行生活更加轻松跟愉悦。那么对于G7的Ocean版的车主, 我们会在近期开始推送VOA模型的初始版本, 并且在今后的几个月里面通过OTA快速迭代。我给自己提了一个大胆的目标, 在未来的18个月, 小鹏基于图灵芯片的VOA、VOM模型能力将会成为比现在行业主流的城市级辅助驾驶能力, 提高数十倍以上。那么我们会在安全、全场景和整体的用户体验上对标有人驾驶的L3, 实现断代式的领先。那么在这里也提前跟大家分享, 我们支持L4的车型将会在2026年量产, 并且会在部分区域开始试点萝卜胎式的运营和服务。我们已经看到在市场上, 实际上通过后装支持的L4的车已经有不少, 但是真正在前装量产上就具备L4的算力、软件、硬件跟云端能力的车还没有。小鹏汽车将会是中国的第一家, 此外我们的新一代人形机器人也取得了非常可喜的突破。我相信基于小鹏的图灵芯片VOA跟VOM, 我们正在向拥有机器人领域的初阶L4能力的可量产版本及快速向前。我们正在为2026年下半年、下半年量产我们的人形机器人做相关的过程准备工作。那么在之后, 小鹏的科技日我还会跟大家介绍我们全新一代人形机器人的相关情况。

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He Xiaopeng: Day, I will also introduce the relevant information about our brand new generation of energy robots.

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I expect the Exxon VLA classic meal and to become the safest drybulk and most attentive, but smart assistant for users simplifying and hunting travel we plan to roll out the initial BLA model to G SIB and ultra owners team with a rapid O T a updates over the coming.

Month over 18 months, our children U S O C power it would be all eight is expected to outperform industry mainstream open adat distributions by over 10 times, we aim to meet supervise the L Street safety coverage and user experience monkey a generational indeed our.

Speaker #2: I expect Xpeng's VOA, plus VOM, to become the safest driver and most attentive smart assistant for users. Simplifying and enhancing travel, we plan to roll out the initial VOA model to G7 Ultra owners soon, with rapid OTA updates over the coming months.

Brian Gu: I expect the XPeng's VLA plus VLM to become the safest driver and the most attentive smart assistant for users, simplifying and enhancing travel. We plan to roll out the initial VLA model to G7 Ultra owners soon, with rapid OTA updates over the coming months. Over 18 months, our Turing SoC powered VLA is expected to outperform industry mainstream urban ADAS solutions by over 10 times. We aim to meet supervised L3 safety, coverage, and user experience, marking a generational lead. Our L4-capable vehicles are scheduled for mass production in 2026, with pilot robotaxi services launching in selected regions. Although after-market retrofits enable L4 in some vehicles, no mass-produced models currently have OEM integrated L4 hardware and software, a gap XPeng aims to fill in China. In addition, our latest humanoid robots also have made promising advancements.

All four capable vehicles scheduled for mass production in 2026 with pilot a robo taxi services launching in selected regions.

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Speaker #2: Over 18 months, our Turing SoC powered VOA is expected to outperform industry mainstream urban auto solutions by over 10 times. We aim to meet supervised L3 safety, coverage, and user experience, marking a generational lead.

Export aims to fill in China. In addition, our latency humanoid robots also have made a promising advancement.

We're truly at the C V L E N B L. M. We are quickly moving towards a mass produced version featuring initial al for capabilities in robotics, and we are actively preparing for mass production in the second half of 2026.

Speaker #2: Our L4-capable vehicles are scheduled for mass production in 2026, with pilot robotaxi services launching in selected regions. Although aftermarket retrofits enable L4 in some vehicles, no mass-produced models currently have OEM integrated L4 hardware and software.

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Speaker #2: A gap Xpeng aims to fill in China. In addition, our latest humanoid robots have also made promising advancements. With our Turing SoC, VOA, and VOM, we are quickly moving towards a mass-produced version featuring initial L4 capabilities in robotics.

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Brian Gu: With our Turing SoC, VLA, and VLM, we are quickly moving toward a mass-produced version featuring initial L4 capabilities in robotics, and we are actively preparing for mass production in the second half of 2026. During XPeng AI Tech Day, I will unveil the new generation of robots to everyone.

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Speaker #2: And we are actively preparing for mass production in the second half of 2026. During Xpeng AI Tech Day, I will unveil the new generation of robots to everyone.

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Speaker #4: 那么关于VOM, 我们这次在行业内首次部署了一颗专门用于智能座舱的大模型的AI芯片。那么它使智能座舱的AI算力的比行业其他旗舰座舱芯片提高了12倍以上。那么基于图灵AI芯片的小鹏VOM大模型, 我们的目标是成为AI汽车上的智慧管家, 那么VOM不光会跟我们的VOA配合带来更聪明的辅助驾驶, 它还会是一个强大的汽车智能agent, 我们希望它未来不仅通晓多国语言, 还可以有情感的交流和主动的服务, 给未来的AI汽车的用户体验带来进一步巨大的提升跟变跟差异。那么我相信小鹏的独立大模型芯片, 加上VOM的软件, 将会引领全新一代智能座舱技术的范式的更新。在之后的时间里面, 会被行业更多的进行学习跟借鉴, 另外小鹏的汽车的AI技术不仅在中国, 而且在全球都具备很好的落地跟泛化能力。我们也非常欢迎全球的友商, 如果对我们的图灵芯片跟AI技术感兴趣的话, 可以跟我们一起探讨相关的合作。

He Xiaopeng: 的独立大模型芯片加上 VLM large model 的软件, 将会引领全新一代智能座舱技术的范式的更新。在之后的时间里面, 会被行业更多的进行学习跟借鉴。XPeng 的汽车的 AI 技术不仅在中国, 而且在全球都具备很好的落地跟泛化能力。我们也非常欢迎全球的友商, 如果对我们的 Turing chips 跟 AI 技术感兴趣的话, 可以跟我们一起探讨相关的合作。

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We have introduced the industry first AI chip dedicated to foundation model for smart cabins, providing over 12 times the effects to the computing power of the building had been processors powered by the truly a I S O.

Our V. L. M model is designed to act as a smart assistant and AI enabled vehicles.

And not only collaborate with its eight to enhance assisted driving but also functions as a robustness in vehicle intelligence agent.

Looking ahead it is expected to monster multiple languages communicated empathetic.

Speaker #2: We have introduced the industry's first AI chip dedicated to foundation models for smart cabins, providing over 12 times the effective computing power of the leading cabin processors. Powered by the Turing AI SoC, our VOM model is designed to act as a smart assistant in AI-enabled vehicles.

Brian Gu: We have introduced the industry's first AI chip dedicated to foundation models for smart cabins, providing over 12 times the effective computing power of the leading cabin processors. Powered by the Turing AI SoC, our VLM large model is designed to act as a smart assistant in AI-powered vehicles. It not only collaborates with VLA large model to enhance assisted driving, but also functions as a robust in-vehicle intelligent agent. Looking ahead, it is expected to master multiple languages, communicate empathetically, and offer proactive services, greatly improving the user experience of future AI-driven vehicles. I believe our combined independent large model chips plus VLM large model solution will lead a paradigm shift in the next generation intelligent cockpit technology, encouraging more OEMs to adopt and reference it. Our AI technology demonstrates strong generalization abilities worldwide, not just in China.

And also proactive services.

We'd say improving the user experience of the future AI to them because I believe our combined independent launch model chips.

B L. M solution will lead a paradigm shift in the next generation intelligent cockpit technology, encouraging more Oems to adopt and to reference it.

Speaker #2: It not only collaborates with VOA to enhance assisted driving but also functions as a robust in-vehicle intelligent agent. Looking ahead, it is expected to master multiple languages, communicate empathetically, and offer proactive services.

Our AI technology demonstrate strong generalization abilities worldwide not just in China, We welcome partnerships with top global players it to explore opportunities for collaboration on our jewelry AI S O C.

Speaker #2: Greatly improving the user experience of future AI-driven vehicles. I believe our combined independent large model chips plus the VOM solution will lead to a paradigm shift in the next generation of intelligent cockpit technology, encouraging more OEMs to adopt and reference it.

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Speaker #2: Our AI technology demonstrates strong generalization abilities worldwide, not just in China. We welcome partnerships with top global players to explore opportunities for collaboration on our Turing AI SoC.

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Brian Gu: We welcome partnerships with top global players to explore opportunities for collaboration on our Turing AI SoC.

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Speaker #4: 我们的海外业务在2025年上半年也继续保持高速增长, 并且成功打造了领先的品牌跟口碑。那么在上半年, 小鹏在海外的交付量超过了1.8万台, 同比增长超过200%。我们在挪威、法国、新加坡、以色列等10个国家都是中国新势力品牌的销冠, 也是目前欧洲市场的中高端纯电市场销量最高的中国汽车品牌。那么在今年的7月份, 第一台在印尼当地生产的小鹏X9交付给了印尼车主, 这标志着小鹏正式开启了全球本地化的生产的战略。那么到2026年的下半年, 小鹏还会全面完成鲲鹏超级电动以及Ocean版本在全球海外市场的上市。我相信这会大幅度扩展我们的车型在全球的可达市场规模。

He Xiaopeng: accessible market size of our vehicle models globally.

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In first the hump over 2025, our overseas business continued to show strong growth and built a top brand reputation.

It was the half of the year overseas deliveries exceeded 18000 units increasing over 200% year over year Expo now ranks as the best of studying Chinese EV start up brands in 10 markets, including Norway, France, Singapore, and Israel and we lead in sales.

Mid to high end Chinese Dev's across Europe in July we delivered the first locally produced ex palms at night in Indonesia, marking a key milestone in our move toward global local manufacturing by the second half of 2020 six we aim to fully launch the in.

Speaker #2: In the first half of 2025, our overseas business continued to show strong growth and built a top brand reputation. In the first half of the year, overseas deliveries exceeded 18,000 units, increasing by over 200% year over year.

Brian Gu: In the first half of 2025, our overseas business continued to show strong growth and built a top brand reputation. In the first half of the year, overseas deliveries exceeded 18,000 units, increasing over 200% year over year. XPeng now ranks as the best-selling Chinese EV startup brand in 10 markets, including Norway, France, Singapore, and Israel, and with lead in sales of mid to high-end Chinese BEVs across Europe. In July, we delivered the first locally produced XPeng X9 in Indonesia, marking a key milestone in our move toward global local manufacturing. By the second half of 2026, we aim to fully launch the entire XPeng Super Electric lineup in international markets, including auto trims, expanding our global total addressable market significantly.

Selling you can call them Super electric lineup in international market, including Ultra thin expanding our global total addressable market significantly.

Speaker #2: Xpeng now ranks as the best-selling Chinese NEV startup brand in 10 markets, including Norway, France, Singapore, and Israel. Additionally, it leads in sales of mid- to high-end Chinese BEVs across Europe.

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Speaker #2: In July, we delivered the first locally produced Xpeng X9 in Indonesia, marking a key milestone in our move toward global local manufacturing. By the second half of 2026, we aim to fully launch the entire QP super electric lineup in international markets, including Ultra trims, thereby expanding our global total addressable market significantly.

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Speaker #4: 随着G7和全新P7的交付跟放量, 我预期今年三季度的总交付量约为113,000至118,000辆, 同比上升142.8%至153.6%。那么收入预计约为人民币196亿元至210亿元, 同比上升94%至107.9%。那么在四季度开始, 我们将进入一车双能的大产品周期, 同时图灵AI自驾能力会逐步跟对手拉开明显的代差。我们有信心不仅实现规模领先, 而且公司的经营也将进入盈利和自我造血的全新阶段。那么在未来的三年, 小鹏会在保持智能稳定向上的基础上, 加速扩大在中国和海外市场的规模跟市场份额。我们希望用颠覆性的AI技术创新, 为全球的出行用户创造更大的价值。

He Xiaopeng: 随着G7和全新P7的交付跟放量, 我预期今年三季度的总交付量约为113,000至118,000辆, 同比上升142.8%至153.6%。那么收入预计约为人民币196亿元至210亿元, 同比上升94%至107.9%。那么在四季度开始, 我们将进入一车双能的大产品周期, 同时Turing AI自驾能力会逐步跟对手拉开明显的代差。我们有信心不仅实现规模领先, 而且公司的经营也将进入盈利和自我造血的全新阶段。那么在未来的三年, XPeng会在保持势能稳定向上的基础上, 加速扩大在中国和海外市场的规模跟市场份额。我们希望用颠覆性的AI技术创新, 为全球的出行用户创造更大的价值。

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Deliveries of the <unk> seven and the new piece that they ramp up we forecast that two suites and the belief that to be at 101000 to 118000 units, reflecting a year over year growth of 142, 8% to 153, 6% revenue is.

Forget to reach between RMB, 19, 6 billion and 21 billion, representing an increase of 94% to 107 point to 9% year over year, starting in Q4, we will introduce the one vehicle dual entity strong product cycle complemented by two.

Speaker #2: As deliveries of the G7 and the new P7 ramp up, we forecast Q3 deliveries to be between 113,000 and 118,000 units, reflecting a year-over-year growth of 142.8% to 153.6%.

Brian Gu: As deliveries of G7 and the new P7 ramp up, we forecast Q3 deliveries to be 113,000 to 118,000 units, reflecting a year-over-year growth of 142.8% to 153.6%. Revenue is projected to reach between RMB 19.6 billion and 21 billion, representing an increase of 94% to 107.9% year over year. Starting in Q4, we will introduce the one-vehicle dual energy strong product cycle, complemented by Turing AI-driven smart driving solutions, which will significantly strengthen our generational lead. We are confident in leading the market at scale, whilst advancing operational efficiency toward sustainable profitability. Over the next three years, our focus will be on expanding market share, both domestically and internationally, maintaining steady growth, and harnessing disruptive AI innovation to enhance value for users worldwide.

AI driven March driving solution, which will significantly strengthen our generally smell D.

We are confident and leading the market at scale, whilst advancing operational efficiency toward sustainable profitability over the next let's say, yes, our focus will be on expanding market share both domestically and internationally maintaining steady growth and are harnessing disruptive innovation.

Speaker #2: Revenue is projected to reach between $19.6 billion and $21 billion, representing an increase of 94% to 107.9% year over year. Starting in Q4, we will introduce the one-vehicle dual energy strong product cycle, complemented by Turing AI-driven smart driving solutions.

To enhance value for users worldwide.

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Speaker #2: Which will significantly strengthen our generational lead. We are confident in leading the market at scale while advancing operational efficiency toward sustainable profitability. Over the next three years, our focus will be on expanding market share, both domestically and internationally, maintaining steady growth, and harnessing disruptive AI innovation to enhance value for users worldwide.

Thank you everyone with that I will now turn the call to our VP of finance, Mr. James Huang, who will discuss our financial performance for the second quarter of 2025.

Thank you shuffle.

Now let me provide a brief overview of our financial results for the second quarter of 2025.

Reference RMB only in my discussion today, unless otherwise stated.

Our total revenues were $18 two 7 billion for the second quarter of 2025.

Speaker #4: 那么谢谢大家, 下面由我们的财务VP James为大家介绍我们2025年第二季度的财务状况。

He Xiaopeng: 为大家介绍我们2025年 Q2 的财务状况。

An increase of 125, 3% year over year, and an increase of 15, 6% quarter over quarter.

Speaker #2: Thank you, everyone. With that, I will now turn the call over to our VP of Finance, Mr. James Wu, who will discuss our financial performance for the second quarter of 2025.

Brian Gu: Thank you, everyone. With that, I will now turn the call to our Vice President of Finance, Mr. James Wu, who will discuss our financial performance for the second quarter of 2025.

Revenues from vehicle sales were $16 8 billion for the second quarter of 2025, an increase of 147, 6% year over year, and an increase of 17.5% quarter over quarter.

Speaker #5: Thank you, Xiaopeng. Now, let me provide a brief overview of our financial results for the second quarter of 2025. I'll reference R&D only in my discussion today, unless otherwise stated.

James Wu: Thank you, Xiaopeng. Now, let me provide a brief overview of our financial results for the second quarter of 2025. I will reference RMB only in my discussion today, unless otherwise stated. Our total revenues were 18.27 billion for the second quarter of 2025, an increase of 125.3% year over year, and an increase of 15.6% quarter over quarter. Revenues from vehicle sales were 16.88 billion for the second quarter of 2025, an increase of 147.6% year over year, and an increase of 17.5% quarter over quarter. The year over year and quarter over quarter increases were mainly attributable to higher vehicle deliveries. Revenues from services and others were 1.39 billion for the second quarter of 2025, representing an increase of 7.6% year over year and a decrease of 3.5% quarter over quarter.

The year over year and quarter over quarter increases were mainly attributable to higher vehicle deliveries.

Revenues from services and others were $1 three 9 billion for the second quarter of 2025, representing an increase of 676% year over year and a decrease of three 5% quarter over quarter.

Speaker #5: Our total revenues were $18.27 billion for the second quarter of 2025, an increase of 125.3% year over year, and an increase of 15.6% quarter over quarter.

The year over year increase was mainly attributable to the increased revenues from parts and accessories sales in line was higher accumulated vehicle sales.

Speaker #5: Revenues from vehicle sales were $16.88 billion for the second quarter of 2025, representing an increase of 147.6% year over year and an increase of 17.5% quarter over quarter.

The quarter over quarter decrease was mainly attributable to fluctuations in revenues from technical R&D services.

Speaker #5: The year-over-year and quarter-over-quarter increases were mainly attributable to higher vehicle deliveries. Revenues from services and others were $1.39 billion for the second quarter of 2025.

Gross margin was 17, 3% for the second quarter of 2025, compared with 14% for the same period of 2024 and 15, 6% for the first quarter of 2025.

Speaker #5: Representing an increase of 7.6% year over year and a decrease of 3.5% quarter over quarter, the year-over-year increase was mainly attributable to the increased revenues from parts and accessory sales, in line with higher accumulated vehicle sales.

Veeco margin was 14, 3% for the second quarter of 2025.

James Wu: The year over year increase was mainly attributable to the increased revenues from parts and accessory sales, in line with higher accumulated vehicle sales. The quarter over quarter decrease was mainly attributable to fluctuations in revenues from technical R&D services. Gross margin was 17.3% for the second quarter of 2025, compared with 14% for the same period of 2024 and 15.6% for the first quarter of 2025. Vehicle margin was 14.3% for the second quarter of 2025, compared with 6.4% for the same period of 2024 and 10.5% for the first quarter of 2025. The year over year and quarter over quarter increases were primarily attributable to the ongoing cost reduction and improvement in product mix of models. R&D expenses were 2.21 billion for the second quarter of 2025, representing an increase of 50.4% year over year and an increase of 11.4% quarter over quarter.

Compared with six 4% for the same period of 2024 and 10, 5% for the first quarter of 2025.

The year over year and quarter over quarter increases were primarily attributable to the ongoing cost reduction and improvement in product mix of models.

Speaker #5: The quarter-over-quarter decrease was mainly attributable to fluctuations in revenues from technical R&D services. Gross margin was 17.3% for the second quarter of 2025.

R&D expenses were $2 two 1 billion for the second quarter of 2025.

Speaker #5: Compared with 14% for the same period of 2024, and 15.6% for the first quarter of 2025, vehicle margin was 14.3% for the second quarter of 2025.

Representing an increase of 54% year over year, and an increase of 11, 4% 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 and technologies as the company expanded its product portfolio to support future growth.

Speaker #5: Compared with 6.4% for the same period of 2024 and 10.5% for the first quarter of 2025, the year-over-year and quarter-over-quarter increases were primarily attributable to the ongoing cost reduction and improvement in the product mix of models.

SG&A expenses were 2.17 billion for the second quarter of 2025, representing an increase of 37, 7% year over year, and an increase of 11, 4% quarter over quarter.

Speaker #5: R&D expenses were $2.21 billion for the second quarter of 2025, representing an increase of 50.4% year over year, and an increase of 11.4% quarter over quarter.

The year over year and quarter over quarter increases were primarily attributable to the higher commissions paid to the franchise stores driven by higher sales volume.

Speaker #5: The year-over-year and quarter-over-quarter increases were mainly due to higher expenses related to the development of new vehicle models and technologies, as the company expanded its product portfolio to support future growth.

James Wu: The year over year and quarter over quarter increases were mainly due to higher expenses related to the development of new vehicle models and technologies as the company expanded its product portfolio to support future growth. SG&A expenses were 2.17 billion for the second quarter of 2025, representing an increase of 37.7% year over year and an increase of 11.4% quarter over quarter. The year over year and quarter over quarter increases were primarily attributable to the higher commissions paid to the franchise stores driven by higher sales volume. Moreover, the quarter over quarter increase was also due to the higher marketing and advertising expenses. As a result of the foregoing, loss from operations was 0.93 billion for the second quarter of 2025, compared with 1.61 billion year over year and 1.04 billion quarter over quarter.

Moreover, the quarter over quarter increase was due also due to the higher marketing and advertising expenses.

As a result of the foregoing loss from operations was zero point 93 billion for the second quarter of 2025, compared with $1 six 1 billion year over year, and 1.04 billion quarter over quarter.

Speaker #5: SG&A expenses were $2.17 billion for the second quarter of 2025, representing an increase of 37.7% year over year and an increase of 11.4% quarter over quarter.

That loss was 0.4 8 billion for the second quarter of 2025, compared with 1.28 billion year over year, and 0.6 6 billion quarter over quarter.

Speaker #5: The year-over-year and quarter over quarter increases were primarily attributable to the higher commissions paid to the franchise stores driven by higher sales volume. Moreover, the quarter over quarter increase was due also due to the higher marketing and advertising expenses.

As of June 32025, our company had cash and cash equivalents restricted cash and short term investments and time deposits in total of 47.57 billion.

Speaker #5: As a result of the foregoing, loss from operations was $0.93 billion for the second quarter of 2025, compared with $1.61 billion year-over-year and $1.04 billion quarter-over-quarter.

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 2025 financial results.

Speaker #5: That loss was $0.48 billion for the second quarter of 2025, compared with $1.28 billion year over year and $0.66 billion quarter over quarter. As of June 30, 2025, our company had cash and cash equivalents, restricted cash, short-term investments, and time deposits totaling $47.57 billion.

James Wu: Net loss was 0.48 billion for the second quarter of 2025, compared with 1.28 billion year over year and 0.66 billion quarter over quarter. As of June 30, 2025, our company had cash and cash equivalents, restricted cash, short-term investments, and time deposits in total of 47.57 billion. 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 2025 financial results. This concludes our prepared remarks. We will now open the call to questions. Operator, please go ahead.

This concludes our prepared remarks, we'll now open the call to questions.

Operator, Please go ahead.

Thank you if you wish to ask a question. Please press star one on your telephone and wait for your name to be announced if you wish to cancel your request. Please press star two.

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

For the benefit of all participants on today's call. If you wish to ask you a question to management in Chinese plays immediately repeat your question in English for the sake of clarity and OTA. Please ask one question at a time management will respond and then feel free to follow up with your next question.

Speaker #5: 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 Q2 2025 financial results.

Speaker #5: This concludes our prepared remarks. We'll now open the call to questions. Operator, please go ahead.

Your first question comes from Tim <unk> with Morgan Stanley. Please go ahead.

Speaker #2: Thank you. If you wish to ask a question, please press *1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press *2.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. 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. For the sake of clarity and order, please ask one question at a time. Management will respond, and then feel free to follow up with your next question. Your first question comes from Tim Sell with Morgan Stanley. Please go ahead.

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Speaker #2: If you're on a speakerphone, please pick up the handset to ask your question. 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.

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Speaker #2: 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.

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Speaker #2: Your first question comes from Tim Sell with Morgan Stanley. Please go ahead.

Speaker #6: 你好, 我是摩根士丹利的Tim, 感谢接受我的提问。那也首先恭喜小鹏汽车的这个季度销量和汽车毛利率再创新高。我有两个问题。第一个有关于这个产品定位, 就是我们也看到公司过去两年达成这个非常显著的项目增效, 但同时间销售的这个平均单价还在持续下滑。所以想请问管理层接下来如何提升这个品牌定位, 打造更多20万以上价格带的一个热门车型。那我们何时能够明显提升这个产品平均单价, 来加速改善公司的盈利? So my first question is about the brand acquisition and the product pricing. Because Xpeng's average selling price has declined over the past two years, given the product mix.

He Xiaopeng: 管理层你好, 我是摩根士丹利的Tim, 感谢接受我的提问。那也首先恭喜 XPeng 汽车的这个季度销量和汽车毛利率再创新高。我有两个问题, 第一个有关于这个产品定位, 就是我们也看到公司过去两年达成这个非常显著的项目增效, 但同时间销售的这个平均单价还在持续下滑。所以想请问管理层接下来如何提升这个品牌定位, 打造更多20万以上价格带的一个热门车型, 那我们何时能够明显提升这个产品平均单价来加速改善公司的盈利? My first question is about the brand position and the product pricing, because XPeng's average selling price has declined over the past two years given the product mix. How are you going to reverse the trend and effectively upgrade the brand positioning and the sales mix of high-end models? When are we going to see more meaningful ASP upgrades that can help to accelerate XPeng's profit improvement? That's my first question. 谢谢。实际上我们 XPeng 汽车一直都说我们的销售的价格区间在10万到50万之间。实际上您的这个问题对我们的内部来说, 实际上分解成几个方向的问题。第一个是产品怎么布局, 第二个是如何利用科技能够有更好的溢价, 另外就是呢, 还有一个是如何利用情绪有更好的溢价, 还有一个是利用品牌有更好的溢价。实际上在这几条线我们都正在去全面的布局。比如说举例, 我们马上要发布的 P7 是30万级, 那么今年 Q4 的 X9 的 Quinpeng Super Electric Edition 是40万级, 都是相比我们现在 XPeng 的平均设计都高。那么在2026年和2027年是 XPeng 的全新大产品的两个大年, 那么这次会看到多个在当前平均售价之上的全新车型会出现。我想意思第一, 科技上面实际上刚刚所介绍的我们在 Ultra trim 车型上, 甚至在明年在 Noble Tech 上的科技的差异, 我们会在多项科技上继续增加投入以及提高溢价。那么在 XPeng 在最近, 我们希望把原来的科技长板, 特别是在 autonomous driving 的这个上面, 我们也增加一个全新的长板目标, 也就是颜值。所以换个角度, 颜值做好了之后, 整个的溢价转换营销都有很大的变化。那么最后一个就是品牌, XPeng 在2025、2027年, 我们会在品牌的全球化建设上都会看到比今年要有加速。所以我相信在这四个方向上的变化, 在未来的时间, 您会看到我们的平均售价越来越高。我也期待毛利和净利都会越来越高。谢谢。

So my first question is about the pain of efficient and to product pricing because excellence average selling price has declined over the past two years, given the product mix.

How are you going to reverse the trend can be effectively upgraded our brand positioning and the sales mix helped to high end models in a way that we're going to see more meaningful ESP upgrades and mechanics salary that.

That can help take salary expense that profit improvement that's my first question.

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Speaker #6: How are you going to reverse the trend and effectively upgrade the brand positioning and the sales mix of high-end models? And where are we going to see more meaningful ASP upgrades that can help accelerate Xpeng's profit improvement?

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Speaker #6: That's my first question.

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Speaker #5: 对, 谢谢这个。实际上, 我们小鹏汽车一直都说我们的销售的价格区间在10到50万之间, 实际上您的这个问题对我们内部来说实际上是分解成几个方向的问题。第一个是产品怎么布局, 第二个是如何利用科技能够有更好的溢价, 另外就是还有一个是如何利用情绪有更好的溢价, 还有一个是利用品牌有更好的溢价。实际上在这几条线我们都正在去全面的布局。比如说举例, 我们马上要发布的P7是30万级, 那么今年四季度的X9的超电是40万级, 都是相比我们现在小鹏的平均设计都高。那么在2026年和2027年是小鹏的全新大产品的两个大年, 那么这次会看到多个在当前平均售价之上的全新车型会出现, 我相信这是第一。科技上面实际上刚刚所介绍的, 我们在Ultra车型上甚至在明年在Robotaxi上的科技的差异, 我们会在多项科技上继续增加投入, 以及提高溢价。那么在小鹏在最近我们希望把原来的科技长板, 特别是在自动辅助驾驶的这个上面, 我们也增加一个全新的长板目标, 也就是颜值。所以换个角度, 颜值做好了之后, 整个的溢价转换营销都有很大的变化。那么最后一个是品牌, 小鹏在2025、27年我们会在品牌的全球化建设上都会看到比今年要有加速。所以我相信在这四个方向上的变化, 在未来的时间您会看到我们的平均车价越来越高。我也期待毛利和净利都会越来越高, 谢谢。

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Thank you very much for your question Timothy and the answer is as follows.

You can see for our sales it has always been in the range of a 100000 to 500000 RMB Internet. We are also looking at this and we are approaching this from a few different directions number one is with respect to the different lay out about what product number two is it too.

Leveraging technology to increase the premium number three using emotion to increasing premium number for using the brand to increase the premium. So if you look at the piece of it that is it seemed to be launched and this is it in the price range of above 300000, and it seemed to be unveiled X nine.

Speaker #2: Thank you very much for your question, Timothy, and the answer is as follows. As you can see, our sales have always been in the range of 100,000 to 500,000 RMB. Internally, we are also looking at this, and we are approaching it from a few different directions.

Brian Gu: Thank you very much for your question, Timothy. The answer is as follows: as you can see for our sales, it has always been in the range of 100,000 to 500,000 RMB. Internally, we are also looking at this, and we are approaching this from a few different directions. Number one is with respect to the different layout of our products. Number two is to leverage technology to increase premium. Number three, using emotions to increase premium. Number four, using the brand to increase premium. If you look at the P7 that is soon to be launched, this is in the price range of above 300,000. Soon to be unveiled, X9 will be in the range of 400,000 RMB in 2026 to 2027.

It will be in the range of 400000 RMB in 2026 into 2027. This will be our two major product sales cycles, and there will be multiple different caused it to be launched in the market to enter their sales the price it will be above the 300 <unk> range at the most.

Speaker #2: Number one is with respect to the different layout of our products. Number two is to leverage technology to increase premium. Number three, using emotions to increase premium.

And number two using technology and technology has always had been our strengths, including ultra ultra trim versions as well as a real botox season, starting from next year.

Speaker #2: Number four: using the brand to increase premium. If you look at the P7, that is soon to be launched and is in the price range of above 300,000 RMB. The soon-to-be-unveiled X9 will be in the range of 400,000 RMB.

We'll see how where investments are being increased and we believe this will further drive up our premium and the number three using technology. So we know that montage has always been our strengths apart from the strength of our technology and we have another strength, which is our statics.

Speaker #2: In 2026 to 2027, these will be our two major product sales cycles. There will be multiple different cars launched in the market, and their sales prices will be above the $300,000 range at the moment.

Brian Gu: These will be our two major product sales cycles, and there will be multiple different cars to be launched in the market, and their sales price will be above the 300,000 range at the moment. Number two, using technology, and technology has always been our strength, including Ultra trim versions as well as robo taxis. Starting from next year, you will see our investment being increased, and we believe that this will further drive up our premium. Number three, using technology. We know that ADAS has always been our strength, apart from the strength of technology, and we have another strength, which is aesthetics. Becoming or making aesthetically more beautiful cars will also be able to drive the sales volume.

Company, we're making aesthetic be more beautiful cars. It will also be able to drive the sales volume and define any which is leveraging our brand and I believe that in.

Speaker #2: And number two, using technology — technology has always been our strength, including ultra trim versions as well as Robotaxis. Starting from next year, you will see our investment being increased, and we believe that this will further drive up our premium.

In 2026 in the 2027 these will be the two years, but establishing more of a global brand of exponent entered the speeding up of what acceleration of our brands will pick up so as a result, I do believe I would say you will see the ASP of our products. It will increase so will the gross profit.

Speaker #2: And the number three, using technology, so we know that autos have always been our strength. Apart from the strength of technology, we have another strength, which is aesthetics.

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Speaker #2: Becoming or making aesthetically more beautiful cars will also be able to drive the sales volume. And finally, this will leverage our brand. I believe that in 2026 and 2027, these will be the two years of establishing more of a global brand for Xpeng, and the acceleration of our brand will pick up.

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Brian Gu: Finally, which is leveraging our brand, I believe that in 2026 and 2027, these will be the two years of establishing more of a global brand of XPeng, and the speeding up or acceleration of our brand will pick up. As a result, I do believe that you will see the ASP of our products will increase, so will the gross profit as well as the net profit. Thank you.

Sure.

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Speaker #2: So as a result, I do believe that you will see the ASP of our products will increase. So will the gross profit as well as the net profit.

But you reach a hernia these hidden continuously.

So the Shandong can you just sort of a T cell <unk>.

Speaker #2: Thank you.

The ultra Paradise, all Lisa Michelle Qi cases, okay, right T&D Hitachi.

Speaker #6: 谢谢小鹏总的分享。那我第二个问题是有关于刚才所提到的这个科技长板, 有关于智驾, 因为我们看到今年开年行业有许多这个车企也宣布端到端智驾商车。那也有一些车企宣布搭载这个NVIDIA的索尔芯片, 还有VOA的大模型。想请问管理层我们怎么看待小鹏汽车这个自动驾驶技术和相比于这个行业的一些领先优势? 那我们刚才其实小鹏总可能也稍稍有提到, 小的确认一下, 我们预计图灵芯片在这个Ultra版本上面什么时候可以开始拉开软件体验的一个差距? My second question is about smart driving. Because we noticed that since the beginning of this year, several car makers have launched end-to-end smart driving solutions, and the new vehicles powered by Thor chips and VOA models.

He Xiaopeng: VLA 的大模型。想请问管理层我们怎么看待 XPeng 汽车这个自动驾驶技术和相比于这个行业的一些领先优势。我们刚才其实小鹏总可能也稍稍有提到,想再确认一下我们预计 Turing 芯片在这个 Ultra 版本上面什么时候可以开始拉开软件体验的一个差距。My second question is about smart driving. The curious window is that since the beginning of this year, several car makers have launched end-to-end smart driving solutions and new vehicles powered by Thor chips and VOA models. How should we think about XPeng's technology advantage in smart driving against such a backdrop of competition? Specifically, when could XPeng's Turing chip on Ultra trim effectively differentiate with a much better software experience versus our competitors? That is my second question. Thank you. 实际上在当前呢,这个 China 各个车企或者 Tier 1 的智能辅助驾驶的第一梯队都是半斤八两,实际上。有的通过算力,有的通过算力不足的呢,就通过算力加上激光雷达的组合。实际上大家都知道在大模型里面有一个 Scaling Law,跟算力、模型、数据把这三个如果放在一起,再用更好的模型的话,是有更强大的效果。这个在过去的时间是一个理论,但是我们 XPeng 现在已经我们在测试的环境里已经看到这个效果。所以换个角度, Ultra 的有效算力达到了 2,250 TOPPS,而在同行里面大概在 100 到 700 TOPPS 之间,他们的旗舰的车型算力。所以我们的新的 VLA 模型,我相信我们的数据量跟他们是一致的,但是模型的规模可能是他们的 10 倍,运行的帧率可能是他们的两倍。它会使整个大佬变聪明,小佬变敏捷。刚刚您所说的问题,这个关于 Ultra 版本什么时候会拉开体验差距,我相信在今年的 8 月我们会开始就灰度推送 VLA 的初始版本,并且在后面几个月快速迭代。我们最开始的版本的目标就是拉齐和行业的 Max 的体验,这是第一个版本。但是我们在今年的其他几个版本,特别在年底的版本,我们希望有显著提高。什么时候会开始有一个巨大的差距呢?我相信那个时候就在明年的这个不远的时候,我们期待在我们明年量产我们的 Noble Tacit 开始试运营的时候,你会看到我们的 Ultra 的车型所配置跟 L4 Noble Tacit 上面的模型是同源的。除了它没有硬件的冗余之外,没有云端的管控之外,这个时候大家会看到 XPeng 的 Ultra 加上 Turing 的芯片的这个组合,会显著使其他市场上其他的 N4 智能辅助驾驶的能力的数十倍甚至以上。这是我们的目标。

My second question is passed my driving.

Because we noticed that since the beginning of this year.

Several carmakers have launched MTN smart driving solutions and the new vehicles powered by four chips and modules.

So how should we think about expenses.

Technology advantage advantage in smart driving against such a backdrop of competition.

Specifically, we could expand the terrain.

On ultra training effectively differentiated with a much better software experience versus our competitors. That's my second question. Thank you.

Okay.

Sure.

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Speaker #6: So, how should we think about Xpeng's technology advantage in smart driving against such a backdrop of competition? Specifically, when could Xpeng's Turing chip on the Ultra trim effectively differentiate with a much better software experience versus our competitors?

China.

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Speaker #6: That's my second question. Thank you.

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Speaker #5: ??????????????????Tier 1 ??????????????????????????????????????????????????????????????????????????? scaling law?????????????????????????????????????????????????????????????????????????????????????????Ultra ???????? 2,250 TOPS?????????? 100 ? 700 TOPS ????????????????????? VOA ????????????????????????????????? 10 ????????????? 2 ??????????????????????????????????? Ultra ?????????????????????? 8 ??????????? VOA ??????????????????????????????????????? Max ?????????????????????????????????????????????????????????????????

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Speaker #5: ??????????????????????????????????? Robotaxi ???????????????? Ultra ??????? L4 Robotaxi ??????????????????????????????????????????????? Ultra ????????????????????????? N4 ???????????????????????????

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Thank you for your second question and actually if you look at the current players in the market when it comes to software and basically all the tier one players that I would say that everyone is at roughly the same and therefore, those either where the computing power what are the ones that without the computer sufficient.

<unk> power they would have computing power plus lidar to makeup or bridge the gap and.

In a way, we know that the where the computing power plus model N plus data. These three factors that we'll be able to provide them with better results and we know that this was an idea where our principal that people have in mind. However at X pump, we have been able to validate this idea and as you.

Speaker #2: Thank you for your second question, and actually if you look at the current players in the market, when it comes to software and basically all the Tier 1 players, I would say that everyone is roughly the same, and for those either with computing power or the ones without the computing sufficient computing power, they would have computing power plus LiDAR to make up or bridge the gap.

Brian Gu: Thank you for your second question. If you look at the current players in the market when it comes to software, basically all the Tier 1 players, I would say that everyone is roughly the same. For those either with computing power or the ones without sufficient computing power, they would have computing power plus LiDAR to make up or bridge the gap. We know that with computing power plus model and plus data, these three factors will be able to provide better results. We know that this was an idea or a principle that people have in mind. However, at XPeng, we have been able to validate this idea. As you can see, our total computing power has already achieved 2,250 TOPS. In the meantime, if you look at our peers, they are still at 100 to 700 TOPS.

Can see our total computing power has already achieved in 2000 to 250 tops in the meantime, if you'd go kind of our peers. They are still at 100 to 700 to tops.

And once the we talk about this when it comes to data and as well as model scaling and the in terms of our frame rate, which is running at two times of our competitors and this again shows our smarter brain as well as our bedroom control for motion and in the meantime.

Speaker #2: And in a way, we know that with computing power, plus model, and plus data, these three factors will be able to provide better results.

Speaker #2: And we know that this was an idea or a principle that people have in mind. However, at Xpeng, we have been able to validate this idea, and as you can see, our total computing power has already achieved 2,250 TOPS in the meantime.

Time for your next question about so for ultra trim and one we would be able to ensure that there is a gap between us.

We leading the race ahead about what appears to handle for the Ultra twin version and we will start with our initial B L. A lunch and hopefully we will bring this to the same level at the Max for now ends up by end of this year, we would be able to see a significant improvement.

Speaker #2: If you look at our peers, they are still at 100 to 700 TOPS. And whilst we talk about this, when it comes to data, as well as model scaling and in terms of our frame rate, which is running at two times that of our competitors, this again shows our smarter brain as well as better control for motion.

Brian Gu: Once we talk about this when it comes to data, as well as model scaling, in terms of our frame rate, which is running at two times of our competitors, this again shows our smarter brain as well as better control for motion. In the meantime, for your next question about the Ultra trim, when we would be able to ensure that there is a gap between us, as in we leading the race ahead of our peers, for the Ultra trim versions, we will start with our initial VLA launch. Hopefully, we will bring this to the same level as the Max for now. By the end of this year, we would be able to see a significant improvement or difference between us and our peers.

So between us and our peers and it we're talking about huge differences between us and our peers I would say that at that time will come in next year not long after this year and up roughly around that why you will see the pilot running of our robo taxi.

Speaker #2: And in the meantime, for your next question about the Ultra trim and when we would be able to ensure that there is a gap between us, as in us leading the race ahead of our peers, for the Ultra trim versions, we will start with our initial VOA launch and hopefully we will bring this to the same level as Max for now.

With <unk> as well as the ultra thin they come from the same source of the same model that basically the only difference is that there is no cloud and the control. There is no hardware redundancy, so with the ultra thin tests, our jewelry AI and so and I do believe in next year.

Speaker #2: And by the end of this year, we would be able to see a significant improvement or difference between us and our peers. If we're talking about huge differences between us and our peers, I would say that that time will come next year, not long after this year.

Brian Gu: If we are talking about huge differences between us and our peers, I would say that that time will come next year, not long after this year, roughly around when you will see the pilot runnings of our robo taxis. With L4 as well as Ultra trim, they come from the same source of the same model. Basically, the only difference is that there is no cloud and control, there is no hardware redundancy. With the Ultra trim plus our Turing AI SoCs, I do believe next year you will be able to see that our product will be leading ahead of our peers by 10 times or even more.

Here, you will be able to see that our product will be bleeding ahead of our peers by 10 times or even more.

Thank you very much for sharing with the great details here the exciting progress. Thank you.

Speaker #2: And roughly around when will you see the pilot runnings of our Robotaxis? With L4 as well as Ultra trim, they come from the same source of the same model. Basically, the only difference is that there is no cloud and control, and there is no hardware redundancy.

Your next question comes from Meng suddenly with Bank of America. Please go ahead.

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Speaker #2: So with the Ultra trim plus our Turing AI SoCs and I do believe next year you will be able to see that our product will be leading ahead of our peers by 10 times or even more.

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Speaker #6: Thank you very much for sharing all the great details and exciting progress. Thank you.

He Xiaopeng: Thank you very much for sharing all the great details and exciting progress. Thank you.

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Speaker #2: Your next question comes from Meng Sanli with Bank of America. Please go ahead.

Operator: Your next question comes from Meng Sanlei with Bank of America. Please go ahead.

So my first question is related to your cooperation with Volkswagen because recently, you just announced to broaden your cooperation with Volkswagen.

Speaker #6: So I want to know how good. So my first question is related to your cooperation with Volkswagen because recently you just announced to broaden your cooperation with Volkswagen's EVA.

He Xiaopeng: 所以我问的话有个问题,那好,那我是民政院的 Meng,那我这边也是两个问题都是跟这个合作伙伴有关系。那第一个问题呢,就是因为我们最近也宣布了跟这个 Volkswagen 的这个合作有扩大这个范围,那想了解一下就是说可不可以给一个更新的,就是把这个扩大范围考虑进来之后呢,对我们未来的跟 Volkswagen 整个这个项目合作的这个收入啊等等,可以给一个最新的一个指引。那我翻译一下。My first question is related to your cooperation with Volkswagen, because recently you just announced to broaden your cooperation with Volkswagen's EVA and expand into more vehicle models, including ICEV. Could you give us more color and guidance regarding the future revenue from the cooperation with Volkswagen?

And expand into more vehicle models, including ICU and so could you give us more color and guidance regarding the future.

Revenue from the cooperation with Volkswagen.

Okay.

Thank you Amanda this is Charles here, So last week, we announced our fourth cooperation with Volkswagen basically we're expanding.

Our.

The electrical and electronic architecture collaboration from the AR from the battery electrical EV in China into the IC and P. H E. B, a wholesale brand in China, and we believe that's a major expansion of our scope of the collaboration with our partner.

Speaker #6: And expand into a more vehicle model including ICEV. So could you give a small color and a guidance regarding the future revenue from the cooperation with Volkswagen?

And I think that the.

Through this collaboration we are really creating a very significant strategic value.

Speaker #5: Thank you, Ming. This is Charles here. So, last week we announced our fourth cooperation with Volkswagen. Basically, we're expanding our electrical and electronic architecture collaboration from the battery electric EV in China into the ICE and PHEV of the Volkswagen brand in China.

Charles Zhang: Thank you, Meng. This is Charles Zhang here. Last week we announced our fourth cooperation with Volkswagen. Basically, we are expanding our electrical and electronic architecture collaboration from the battery electrical EV in China into the ICE and the PHEV of Volkswagen brand in China. We believe that is a major expansion of our scope of the collaboration with our partner. I think through this collaboration, we are really creating a very significant strategic value for our partner. I believe that Volkswagen is probably the only global auto company that possesses the technology that has one EE architecture platform across all the powertrain, so through which you can see the value creation that we created by both parties. Obviously, I think from XPeng's side, we are also benefiting from such collaboration.

For our partner and I believe that the Volkswagen is probably the only global auto company that possess the technology.

That has one.

Architecture platform.

Across all of the powertrain.

So through which you can see the value creation that we created.

By both parties, obviously I think it was a shift from extra inside.

Speaker #5: And we believe that's a major expansion of our scope of the collaboration with our partner. And I think that through this collaboration, we are really creating a very significant strategic value for our partner and I believe that Volkswagen is probably the only global auto company that possessed the technology that has won EV architecture platform across all the powertrain.

We're also benefiting.

Such collaboration.

So in terms.

In terms of your second part of your question.

Regarding the value of the potential accretion from our partnership with Volkswagen.

As you may be aware of right now are seeing since Q1 'twenty 'twenty four we have started to restaurant recognize the IP licensing revenue from the Jeannine platform collaboration later on the.

Speaker #5: So through which you can see the value creation that we created by both parties. Obviously, I think from Xpeng's side, we are also benefiting from such collaboration.

Oh gosh collaboration.

And we believe that are in the past in the past the past couple of quarters that revenue from such collaboration has been relatively stable within a certain range.

Speaker #5: So, in terms of the second part of your question regarding the value of the potential creation from our partnership with Volkswagen, as you may be aware, Q1 2024, we have started to recognize the IP licensing revenue from the G9 platform collaboration and later on the EV architecture collaboration.

Charles Zhang: In terms of the second part of your question regarding the value of the potential creation from our partnership with Volkswagen, as you may be aware, right now, since Q1 2024, we have started to recognize the IP licensing revenue from the G9 platform collaboration and later on the ERFH collaboration. We believe that in the past couple of quarters, the revenue from such collaboration has been relatively stable within a certain range. For the second half this year, we see some potential growth potential in such revenue from the past two collaborations. In terms of the newly entered the expanded EEA collaboration, the revenue will start to be recognized once those Volkswagen's ICE and the PHEV vehicles start SOP. That is basically the third recurring revenue stream on top of the previous two revenue streams. I hope this clarifies your question, Meng.

For the second half this year, we we see some potential growth potential in such a revenue from the past two collaborations.

In terms of the newly and newly.

The expanded collaboration.

We are the revenue will start to be recognized.

Those volkswagen's.

Speaker #5: And we believe that in the past couple of quarters, the revenue from such collaboration has been relatively stable within a certain range. For the second half of this year, we see some potential growth in such revenue from the past two collaborations.

I see on the PSU vehicles start S. O P. So that's basically the third recurring revenue stream on top of the previous two revenue streams.

I Hope this classic clarifying question me.

Yes, Charles Thank you so much.

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Speaker #5: So, in terms of the newly entered expanded EVA collaboration, the revenue will start to be recognized once those Volkswagen ICE and PHEV vehicles start SOP. So, that's basically the third recurring revenue stream on top of the previous two revenue streams.

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Speaker #5: I hope this clarifies your question, Ming.

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Speaker #6: Yes, Charles, thank you. So第二个问题, 因为刚才小鹏总也提了这个Robotaxi, 那就想更了解, 想要更了解一下这个公司未来对于这个Robotaxi这个业务的一些规划。那第一个就是说, 我们因为我们之前Mona的话, 本来也有考虑出资或投资一半, 那所以说是不是可以理解说未来如果有跟这个合作对象来合作的话, 可能是要设计跟目前这个我们出资的这些产品有一些这个差别。然后这个是, 然后另外我们是不是也已经找好了这个合作对象, 所以才可以提到就是说从2026年的话, 可能就有这样的一个服务。然后我们目前的这个车就从今年下半年的车, 因为都有搭载这个图灵芯片, 所以算力是非常强的。所以目前的这个, 下半年可以做的这个车款, 有可能明年透过OTA升级, 就能够也有这个Level 4的能力吗? 还是说可能还是要从这个明年会推出这个GVL Level 4能力的这个出资版本的这个车? 那我翻译一下问题。So my second question is related to Robotaxi, our business chairman already mentioned this cooperation, this business.

He Xiaopeng: Yes, Charles, thank you. 那我接着问我第二个问题, 那第二个问题因为刚才小鹏总也提了这个Robotaxi, 那就想更了解, 想要更了解一下这个公司未来对于这个Robotaxi这个业务的一些规划。那第一个就是说, 我们因为我们之前Mona的话本来也有考虑PCB或TD版, 那所以说是不是可以理解说未来如果有跟这个合作对象来合作的话, 可能是要设计跟目前这个我们ToC的这些产品有一些这个差别。然后这个是, 然后另外我们是不是也已经找好了这个合作对象, 所以才可以提到的这些, 可能2026年的话可能就有这样的一个。没有, 然后我们目前的这个车就从今年下半年的车, 因为都有搭载这个Turing chips, 所以算力是非常强的。所以目前的这个, 所以下半年开始售的这个车款, 有可能明年透过OTA升级就能够也有这个L4-capable vehicles的能力吗? 还是说可能还是要从这个明年会推出这个具备L4-capable vehicles能力的这个ToC版本的这个车? 那我也翻译一下问题。 My second question is related to a Robotaxi business. I think the Chairman already mentioned this corporation's business. In the future, we will launch the to-be version of vehicles to differentiate from your current product for the consumers. Also, for your current cars, if we are able to provide L4-capable vehicles functions next year when you provide the OTA service. Thank you. 这个。我认为将来啊,

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My second question is related to a robot taxi business.

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Launch to be version of Oh.

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Your current product portfolio.

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We're able to provide level function next year.

To provide the otas.

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Speaker #6: So in the future, will you launch the to-be version of vehicles to differentiate from your current product for the consumers? And also, for your current cars, are they able to provide Level 4 functions next year when you provide OTA service?

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Speaker #6: Thank you.

Hmm.

Morning, Joe.

So sort of when you don't go or reshaped to be it for me I'm not going away.

James Wu: 这个有两种车,一种是拥有 L4 能力,但是要能开;第二种是拥有 L4 能力,但是没有人能开的车。当然这我估计这需要数年的时间来做到。同时 L4 是需要政策法规允许的。所以在 2026 年, XPeng 会有车开始在中国的部分区域来试点 Robotaxi。这个是我们会在拿到了相关的政策的批准之后会去做的事情。换一个角度,您刚刚所说的问题中间我有一些不是特别方便答,但是我可以有一些部分的点来讲明说明一下。我觉得第一个我们跟其他 Robotaxi 的公司的一个很大的差异,第一我们是前装车。第二个我们没有区域限制,因为我们的无地图模式,不需要为每个地方去重新来去用激光雷达来扫描,来去做高精的匹配。另外呢,实际上 XPeng 的 OTA 版本,我刚才所说它没有硬件的冗余,它也没有云端的接管的相关的服务。但是它在整体的软件的能力上,我们期望明年和 Robotaxi 有是同源的模型,但是它不完全一样。比如说 Robotaxi 可能会做到招手集停,但我们自己卖的车可不会做到招手集停。所以在训练的方法上还是有一定的不一样的,这主要是强化学习上面。所以换个角度,您所说的运营跟商业化,我们在初步在测试的时候我们会自己运营,但是我们一旦。不了通过,我们那个时候会去再去寻求更多的合作伙伴,也欢迎在那个时候有更多的合作伙伴跟我们一起来去探讨怎么把这个 Robotaxi 能够进入运营的这个阶段。好,谢谢。

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It ended up with two other channel partnerships three Harvard yard to finish all the screens inside.

I hope that's helpful. That's perfect available what does a woman.

Yeah.

The Tango woman.

Is it that you're seeing Joe can do at a carnival.

We're gonna go mutually Chicago somewhat like a robo taxi lingo.

Gotcha.

Thank you for your question, yes, the in the future and maybe there will be two types of vehicles and the first time it will be all for enable to where else what capable vehicles with people driving those ended the second time, but will be outflow capable vehicles.

With no people driving to and of course this will take years to achieve and we also know doctor with al four <unk> will need to obtain the permission and approval by different policies and the regulations in 2026, four X, we will try out to the airport.

Alex Xie: Thank you for your question. In the future, in my view, there will be two types of vehicles. The first type will be L4-enabled or L4-capable vehicles with people driving those. The second type will be L4-capable vehicles with no people driving it. Of course, this will take years to achieve. We also know that with L4, this will need to obtain the permission and approval by different policies and regulations. In 2026, for XPeng, we will try out the L4 in different pilots. Of course, the precondition is that we are running these pilot schemes after we have obtained the relevant approvals. In terms of the questions that you have asked, there are areas that I am not really in a position to answer today.

Different pilots and of course, the precondition is that so we are running these pilot schemes wants to after we have obtained the relevant approvals.

In terms of the questions that you have asked that there are areas that that I'm not really in a position to answer today, but what I can try to answer it sounds so number one four X ponds that vehicle and we are the front market why the mass produced vehicles with the no map non HD mouse model.

And that is to say, we do not need lidar to scan the whole map the whole city and in the meantime, as I have mentioned earlier.

We do not have the software redundancy, nor do we need the cloud it would take hold way to manage this a heads up what we strive to achieve between our pizza product and a robo taxi is not that they would be models of the same of sources and however, there are differences.

Alex Xie: What I can try to answer is that, number one, for XPeng's vehicle, we are the front market or the mass-produced vehicles with the no-map, non-HD map model. That is to say, we do not need LiDAR to scan the whole map, the whole city. In the meantime, as I have mentioned earlier, we do not have the software redundancy, nor do we need the cloud to take over to manage this. What we strive to achieve between our future products and Robotaxi is that they would be models of the same sources. However, there are differences. For instance, for our Robotaxis, there will be functions such as when the passengers on the street wave their hands, the Robotaxis will stop. But for our own vehicles to consumers, obviously there are no such functions.

For instance for our Robo taxis and there will be functions such as when the passengers are on the street waved their hands. The robo taxis will stop but for our own vehicles that you can see like I said, obviously there is no such functions that one there is a passenger on the street waving their hands our own vehicles, it will not be stopping.

So this is all about our strengths and learning of the whole process and we ourselves obviously will caveat to our own trials in our own operations and when all of these that have a policy and we will be seeking out and speaking to partners and looking at how to expand it further.

Hi, Susan.

Sure. Charles This is my question.

Your next question comes from <unk> with Citi. Please go ahead.

Alex Xie: When there is a passenger on the street waving their hands, our own vehicles will not be stopping. This is all about strengthened learning of the whole process. We ourselves, obviously, will carry out our own trials and our own operations. When all of these have passed, we will be seeking out and speaking to partners and looking at how to expand this further.

Uh huh.

A few minutes.

Oh actually Jonathan that Youre, hoping to shoot.

Dan what are you sure that with LNG do you guys feel Guangzhou PT.

So you're talking about <unk>.

<unk> G question I'll make you talked about can you repeat that when we do that they'll be down call. It how long do you got anything that you don't show it.

He Xiaopeng: I see the chat, Hongzhou. I see the charts. Let's take my question.

Well I'll give you point out a few people who know what you don't see that you need.

No.

No.

Operator: Your next question comes from Ping Le Wu with CITIC Securities. Please go ahead.

Peter.

Sure.

Sure.

I think when you talk quite often about exactly keep yourself.

Brian Gu: 各位管理层好, 感谢这个提问的机会。我是中信的对照分析师吴平月。那这边我也是有两个小问题, 第一个是关于我们的这个 P7, 因为也是这个非常恭喜, 其实 P7 上市之后我也看到了很多这种这个社交媒体上的这个评价, 关注度和评价都非常高, 而且它的这种很创新性的这种设计也是获得了就是同样是这个很有这种时代引领感的这种消费者的认可。那之前管理层其实也提到我们的这个这个新的 P7 的扫定是很强劲的, 那是否可以再请管理层来多分享一下关于这个 P7 扫定的这个情况, 以及可能我们看这个这个强劲背后的一些原因。然后另外是在销量这个层面, 就是新的 P7 是不是有机会可能看到像比如说第一代的这个 P7, 包括这个去年去发布的 P7+ 一样成为一个比较走量的这个车型, 或者是我们怎么去判断这个销量。 Let me translate the question. First, congratulations on the successful launch of the pre-sales of the new P7. It is a very highly original design. It is also appreciated by customers who are also leading the area. Could you please share more about the reason behind the P7's strong overall performance and how do we forecast itself? Is it going to be a high-volume model just like the first generation of P7 or our latest P7+? Thank you.

You can now open 10, Gigabits, you've got challenging for holiday.

Holding why should I still don't think that Tom Yeah, just yet and this isn't a P T a shipper.

I'm kind of South Beach, or do you guys that you know P T.

Jacob just to help with that she die young Charlie you got the auto down that you've got choices.

The short mentioned, Japan glad you guys at all yet.

Oh, let me translate the question first congratulations on the successful launch of the T cells after a new piece of it.

It is.

And it's a very highly original multi site also appreciated by customers, who are also leading the area era and.

Okay could you just could you please share more about the reason behind the piece of that strong performance and how do we forecast Michele is it going to be a high volume model just like the first generation of T cell them or are they take the piece on okay. Thank you.

How do you I guess you guys found out with you've got Tom Yes, just yet and this isn't a P T a shipper she'll.

That would be for you guys that you know P T.

Hey, Julian just Abu Dhabi, Yeah, Yeah, I'm, telling you got the auto down that you can actually see all of that.

Stuart mentioned that Japan glad you guys at all yet.

Oh, let me translate the question first congratulations on the successful launch of the T cells. After a new piece of it and it's an and.

Okay.

Ashish you want tissues.

Oh, it's instead of fossil free.

Oh boy job title.

They're a highly original multi site also appreciated by customers who are also leading the area.

So hence you book the Gordon do you go to pitch either once it all future view of in time.

IRA and.

Okay. You can eat could you please share more about the reason behind the T. Seven strong order performance and how do we forecast Michele is it going to be a high volume model just like the first generation of T cell, then or it may take the T cell. Okay. Thank you.

<unk> engineered Glu hartzell.

Sure Sean.

Sure.

But what's the just Florida fishing blah blah blah blah blah, because your job she needs.

So Judy.

Such as a deep.

Yeah, you know what I'm kind of a piece of the two.

Show didn't even in the short term.

In the PD.

I'm sure you want tissues eye Shadow, what Mohit said instead of fossil free.

James Wu: 对, 谢谢, 因为 P7 在下周我们会正式的发布, 所以抱歉我不会讲太多 P7 的详细的数据。我首先几个的观点, 第一个呢, 这次 P7 的关注度的确比我们在去年底定今年规划的时候要远超想象。那么小定数据打破了包括之前所有的分析, 包括 MOLA M03 Max, 包括 P7+ 的同期的历史记录。这是第一。那么第二个呢, 我们看到了这个 P7 的这个小定里面的数据量的这个男生的比例是非常高的, 而且是年轻人的比例是我们所有的车最最年轻的。是一个非常有趣的, 而且它的行业的划分也很有趣。我们还是蛮相信 P7 这次破圈了, 因为有非常多原来不关注 XPeng 的车主用户, 准车主用户, 他现在的关注的 XPeng。那么 P7 我觉得不光颜值好, 我觉得现在的很多朋友的反馈在赛道或者在开这个高速的时候都看到底盘非常的扎实。我们 P7 这个底盘跟明年 XPeng 跟 Volkswagen China 合作的新车是同源同底盘, 所以我们认为在试驾之后的用户的转化率会比我们所期待的要好, 因为现在所有的内部用户跟媒体的车评都非常的好。那么我们的目标就是 P7 能够做到 30 万以内的纯电轿车的这个这个就是 20 到 30 万之间的这个纯电轿车的前三。那么目前来看的话, 我们还是相当有把握的, 因为这个但是我们不确定能不能再次提高, 能够做得更好, 这是我们正在努力的目标。好, 谢谢。

And I'd say, it's in the engine the BD so there sure.

<unk>.

So you mentioned.

Oh boy to entitle a petri dish she.

So you're familiar with Tyler.

So to answer the question did you go to and so it's a pea shooter once it all future view of in time.

For your future.

Well.

My assumption P J.

Portrayed.

So until you end up going into a shovel on the schedule.

<unk> engineered Glu hartzell.

Total touching.

Sure Joe.

Touching that according to the shovel from Pizza you wanted a football game, so what you shouldn't either pulling out of town.

Financials with thoughtful about what's the just Florida fishing blah blah blah blah blah, because your job she the NESA judo.

Great that's very helpful.

D a.

Yeah, you know what I'm kind of dollars.

<unk> to the Gulf War, so it all kind of behind 800 jostle in pieces or the demand doesn't mean, you shuffle bathroom.

Sure.

Show didn't even the chute zone that it's in the PD.

Sheen tourists at home.

I'd say, it's in the engine and the PV solar should treat.

So you will know it suggests a hole that you won't go there.

Two we mentioned.

Tony would be woman show Cheater Youll internationally, we won't Hogan.

So you shouldn't even shooter title it apart for you.

Well actually my Shaanxi and P J.

It took into phase one at all.

Portrayed.

No more well Nobel just peachy language at all Cynosure, you later and getting jobs for them.

Unbilled frequently shoveling the schedule.

Totally.

Touching that according to the shovel from sheets, you wanted a football game, so what should or shouldn't either.

I felt that it was degenerative affiliate Yasuda Samsung.

Which in that kind of a homerun has shown only about one anyway.

All right it sounds great that started off with okay.

There's a woman.

Hi to the Gulf War, so it all kind of behind 800, Jocelyn pieces or the demand doesn't mean, you shuffle bathroom.

Which had an important strides to check on it was it will go to the woman tender.

Sure.

She and tourists at home.

Okay.

Thank you very much I'll call. Your question Yeah. So four P. Seven yes, indeed, the next week or pizza will be officially launched into the market, especially in detail the data I'm not going to be elaborating on those it to date. However, there are a few points. So that I can comment on number one is that the attention and interest in that we have.

So you will know it suggests a hole that you won't put at Bonnie view woman show Chi that Oh, yeah internationally, we won't sell them cheap.

It took into phase one at all.

No more well know Labelle, just teach you didn't lose it all.

Cynosure, you later and didn't charge for them.

I felt that once degenerative opinion, Joe Janssen, which in that kind of homerun has a shutdown you bought wasn't anyway. So that's a woman.

See the NP seven has indeed have far exceeded our expectation from end of last year to earlier this year and the in terms of the pre sales of water is a as you have stated it has exceeded all of our historical data sales so far different other theories of car such as Moana etcetera.

And I wouldn't try to check on it was it will go to the woman.

Sure.

Yes.

Alex Xie: Thank you very much for your question. For P7, yes indeed, next week P7 will be officially launched into the market. Certain detailed data, I am not going to be elaborating on those today. However, there are a few points that I can comment on. Number one is that the attention and interest that we have received in P7 has indeed far exceeded our expectation from end of last year to earlier this year. In terms of the pre-sales orders, as you have stated, it has exceeded all our historical data sales for different other series of cars such as Mona, etc. If you look at the purchasers and the users, consumers who have purchased P7, it is also quite interesting, there is a very high percentage of male consumers.

Thank you very much as part of your question, yes. So four P. Seven yes, indeed, the next week or Pizza Bell will be officially launched into the market soon in detail the data I'm not going to be elaborating on those it to date. However, there are a few points. So that I can comment on number one is that the attention and interest that we have.

And if you look kind of did the purchasers of hand, the users consumers will have approaches to P. Seven and it is also quite interesting. There is a very high percentage of the male consumers. In addition in terms of the age bracket of those who have placed an order for a P. Seven so far it is the youngest.

C N P. Seven has indeed have far exceeded our expectation from end of last year to earlier this year and the in terms of the pre sales at whatever you said as you have stated it has exceeded all of our historical data sales as four different other theories of car such as Moana etcetera.

Age bracket, so that we have and their professions are also quite interesting. So this is what we have witnessed so far from the pre sales.

And four P. Seven it is not only that it is an esthetically beautiful car. It is also very strong 30 car handle whether you are running our restaurants, we're running on highways and what we have received the feedback.

And if you look kind of did the purchasers of hand, the users consumers will have approaches to P. Seven and it is also quite interesting. There is a very high percentage of the male consumers. In addition in terms of the age bracket of those who have placed an order for a P. Seven so far it is the youngest.

From the users as well as from the media reviews is not yet the chassis that we have worked together with Volkswagen is rather strong and so we are getting very good positive feedback from the users from the media.

Alex Xie: In addition, in terms of the age brackets of those who have placed an order for P7, so far it is the youngest age brackets that we have, and their professions are also quite interesting. This is what we have witnessed so far from the pre-sales orders. For P7, it is not only that it is an aesthetically beautiful car, it is also a very strong, sturdy car, whether you are running on racetracks or running on highways. What we have received the feedback from the users as well as from the media reviews is that the chassis that we have worked together with Volkswagen is rather strong. We are getting very good positive feedback from the users, from the media, and our aim is to become the top three in the pure battery vehicles, in the pure battery electric vehicles in the price range of 200,000 to 300,000.

Age bracket, so that we have and their professions are also quite interesting. So this is what we have witnessed so far from the pre sales at waters and four P. Seven it is not only that it is an esthetically beautiful car. It is also very strong 30 car handle whether you are running.

And our aim is to become the top three in the pure.

Battery vehicles in the pure battery electric vehicles are in the price range of 200000 at two to 300000 and of course, we don't know whether we can achieve a better ranking for that but we will strive to do so.

Restaurants, who are running on highways and what we haven't received the feedback.

From the users as well as from the media reviews. It is not so the chassis that we have worked together with Volkswagen is rather strong and so we are getting very good positive feedback from the users from the media.

Okay.

<unk> <unk> Goldman <unk>, driven that you've always had plenty of robo taxi.

Excuse me.

And she's been shall we say a global tax strategy.

I'm not too sure how she comes to value capture share Ah well mentioned that she should go to Thompson the Jaguar.

And our aim is to become the top three in the pure battery vehicles in the pure battery electric vehicles are in the price range of 200000. It was 300000 and of course, we don't know whether we can achieve a better ranking for that but we will strive.

Hello, it's actually convenient.

She doesn't want that you don't usual childhood and should that I shouldn't you should that you hear about great Oh Gee do you know.

Alex Xie: Of course, we do not know whether we can achieve a better ranking for that, but we will strive to do so.

She pushout in technologies did you don't see now Mimi and usual that you don't win Hep C pulse you shouldn't do.

To do so.

So yeah.

Brian Gu: 谢谢, 谢谢。然后这个第二个问题还是讲这个再追问请教一下关于 Robotaxi, 因为其实 He Xiaopeng 刚才也这个去分享了一些关于 Robotaxi 的这个思考。那其实我还是想这个请教一下, 就是我们现在其实又去重新的公开了 Robotaxi 在明年的这个战略, 是不是我们在这种技术上或者是在甚至是在一些法规的这种许可上, 我们看到了一些这种机会。那明年比如说在这种无人 Robotaxi 可能能否是实现一个比如说无人以及可能我们能实现一些什么样的一种这个区域的这个运行。My second question is about the Robotaxi, and as we renewed our announcements of our Robotaxi strategy, what opportunities such as technology or regulatory access do we see currently? Thank you.

Okay.

Amongst the ECS.

I'll go dig a dagger when he has you talk Jacob <unk> driven that you always have when you go about taxi.

Yeah Jacob shoot.

My second question is about the Carnival, Turkey, and as we renewed our announcements of a robo taxi type strategy and what opportunities such as technology or a regimen that can really obsess too.

Excuse me go hold on let me just.

Hello <unk>.

I'm not too sure how she comes gena. Thank all your timeshare Ah well mentioned that she should go to Thompson Oh Gee.

It was actually Dominion did you guys you know Townsend she.

We see currently thank you.

She goes you want that you don't usual childhood and should that should you should that you cannot grade Oh did you don't you don't.

Oh sure sure.

And Oh, gosh, I want to knowledge the agency now Mimi and usual that you don't win a Hep C.

Uh huh.

Would you don't shovel, you won't cost a year ago.

Tuck in tranches over time.

Sure Dan.

Diesel we are equally amongst you think ECS them you know the drill on Jacobs shoot.

Right Yeah.

For the fourth.

You talked about it before.

And my second question is just about the Thunderbolt, Turkey, and as we renewed our announcements.

Well the new way.

Oh photos for truthfully.

Market cohort.

Strategy and what are opportunities such as technology or a regimen that can be accessed.

As it is shown on television so cool that you cut so tayo.

You'll find when it would be a couple of discrete you'll.

Two we see a quantity thank you.

You'll see some shift.

The street, how to work that she did agree.

So that's.

James Wu: 好, 谢谢啊, 这个。我觉得 XPeng, 因为它是一个整车厂, 它跟纯粹 Robotaxi 的软件或者服务提供的公司它有非常大的不同。我们认为 L4 的车最主要是卖给客户的, 而且在相当长的时间是客户要自己开, 就他要能够抓到方向盘, 有法规的问题, 有客户的需求的问题, 有技术向前迭代的需求的问题等系列的原因。但是如果一个用户将来可以买一个拥有这样的能力的车, 他可以成长的上限会大幅的提高。那么的确我们看到的技术的越变所带来的机会, 您刚刚的问题我觉得第一个我们是非常认同。第二个我们相信在区域内 Robotaxi 开放的可能性正在放大, 但是在全球范围内它很难。但是在全球范围内我认为它也正在放大。那么另外我们全新的技术, 大家会看到比如说现在我们都是在有导航的情况下开智能辅助驾驶。那么新的车的能力能不能做到没有导航下也能够智能辅助驾驶呢? 以及新的车能不能做到跟 Robotaxi 同源的代码往前去 OTA 呢, 去提高更强能力呢? 我觉得这都是 XPeng 正在探索并且期望在未来的时间带给大家的一些新的能力。好, 谢谢。

Oh sure sure check Uh huh.

Oh, John Creamer Yugo.

John on the need to talk to you.

What you don't shovel, so you Wanna Kashi Eagle.

Change on the songs jumping off the table.

So in total a tug in tranches over time.

Well then.

Colorado tissue, Doug Shaw.

Right Yeah.

So data that you would particularly I think are the ones, who know what J D.

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Are you with one thought of before.

Well the new way.

So sit on it.

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Global type C. K final Convention center found out.

And I think that Shannon, Tennessee cancer cohort.

Does that change your foundry partner.

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What do you call it the shadow wasn't he.

So it doesn't change over time with it.

Oh, Jeez research and data show to watch that <expletive> hit again.

Hi, it's in there for that.

I'm a woman attrition as usual.

So that's oh.

What kind of usual shouldn't that a woman doses are you at all how much and what's your pet's sooner.

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Yes.

Schindler, Switzerland and Netherlands.

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Hi, mom want country O'hara.

Thiago Women's Shaoxing Chi Le.

She got can chime in you know what.

Robo taxi Typhon, a convention center found out.

It also shovel and a partial pension ensure that when I was talking about.

Does that change your foundry partner.

Okay.

So it doesn't change over time with it.

Okay.

Yeah.

Hi, it's in there for that.

Thank you for your question and as you can see four ex palms, we are in OEM company, and which makes us essentially different from the robo taxi software providers.

I'm, a new wonder woman attrition as usual.

So just what kind of unusual shouldn't that a woman doses are Yokohama, Georgia pets.

Yes.

See service providers for airport of course in order to sell this to the customers and for the customers to be able to drive such cars that are issues that we need to resolve before we need to go about with it for instance, a poor regulation issues and the technology iterations I said.

Schindler, Switzerland number until the legal documents that you don't go from Gossamer.

She does her number then.

Oh the novel Cathy told you end up time on one country Okay.

She got can chime in you know what you just said also shovel into the tightest pinch ensure that way that target that you that you shouldn't have.

Gotcha.

But as you have stated once we cross over those the Homsey and once people are able to purchase al four vehicles in terms of all the upper limit of the gross add that high so greatly improved and that is number one point number two for robot taxis and to operate with.

Mhm.

Alex Xie: Thank you for your question. As you can see, for XPeng, we are an OEM company, which makes us essentially different from Robotaxi software providers or Robotaxi service providers. For L4, of course, in order to sell this to the customers and for the customers to be able to drive such cars, there are issues that we need to resolve or we need to go about, for instance, for regulation issues and technology iterations, et cetera. As you have stated, once we cross over those humps and once people are able to purchase L4 vehicles, in terms of the upper limit of the growth, that has greatly improved. That is number one point. For Robotaxis to operate within a certain region, I do think that there will be such possibilities.

Thank you for your question and as you can see four ex palms, we are in OEM company, and which makes us essentially different from robo taxi software providers, what robo taxi service providers for airport of course in order to sell this to the customers.

In a certain region I do think that there will be such possibilities.

And for the customers to be able to drive such cars that are issues that we need to resolve before we need to go about with it for instance, if we're a regulation issues and the technology iterations etcetera, but as you have stated once we cross over those homes and a one.

But to say that they would have seen it will be rolled out on a global scale I think it is difficult at this stage at least and but I would also say that globally speaking for robot taxis it to be rolling out. It is also getting further expanded at the moment and.

People are able to approaches al for vehicles that in terms of AUM, but the upward limit of the gross said that hard so greatly improved and that is number one point and then number two for real Woodhouse. He said to operate within a certain region I do think that there will be such possibilities.

We know that in the past.

People will need to rely on navigation to use their cars and if you drive the Odyssey system and in the future would you be able to rely on adachi without navigation to heads up with people be able to update their otas so by simply rely.

Alex Xie: However, to say that Robotaxis will be rolled out on a global scale, I think it is difficult at this stage at least. I would also say that globally speaking, for Robotaxis to be rolling out, it is also getting further expanded at the moment. We know that in the past, people would need to rely on navigation to use their cars and to drive the ADAS system. In the future, would people be able to rely on ADAS without navigation? Would people be able to update their OTAs by simply relying on the same source codes? Those are questions and challenges that XPeng hopes to be able to strive to resolve in the future.

To say that well would have sees it will be rolled out on a global scale I think it is difficult at this stage at least and but I would also say that globally speaking for a robo taxi you said you'd be eroding out. It is also getting further expanded at the moment and.

On the same source codes and those are questions and challenges at that Expo and we hope that we would be able to drive it to resolve in the future.

Yeah.

Hey, guys are going to come up with that thank you so much.

We know that in the past.

People will need to rely on navigation to use their cars and that should drive the odd as a system and are in the future would people be able to rely on adachi without navigation to hand, which people will be able to update their otas so by simply rely.

Your next question comes from Tina Hu with Goldman Sachs. Please go ahead.

Okay.

So whether Q1 would have been a diesel and tissue quantities that mental hurdle.

And I'll just argued to be easy to be functionally it doesn't it bother digital photo GGP leash on it it would have to do that.

On the same source codes and those are questions and challenges that the Expo and we hope that we would be able to drive it to resolve in the future.

One is on the Magellan tidy judge assigned at Providence in B C.

Many people from it beautiful.

This makes the guide to the gloom or the T cell <unk>.

Yeah.

Hello, gentlemen.

Please go ahead.

Brian Gu: 感谢, 感谢管理层的回答. Thank you so much.

We're going to come up with that thank you so much.

Got it yet.

Hi, Thanks management for taking my question. So the first question is regarding vehicle gross margin, we see that on a quarter over quarter basis. Its up by three 8%, which is a much bigger versus previous quarters. So could management help us break down the different factors contributing to this sequential improve.

Operator: Your next question comes from Tina Hu with Goldman Sachs. Please go ahead.

Your next question comes from Tina Hu with Goldman Sachs. Please go ahead.

Brian Gu: 感谢管理层接受我的提问。我这边的第一个问题是关于咱们整车的毛利率。因为我们看到这次Q2比Q1环比上升有 3.8个点，这个幅度其实比历史上每个季度的幅度都大挺多的。那管理层能不能给我们拆解一下这3.8个点分别来自于哪几个方面，比如说车型 mix 的改变，这个规模的提升以及原材料成本的一个环比的下降。感谢。那我来翻译一下。Thanks management for taking my question. The first question is regarding vehicle gross margin. We see that on a quarter over quarter basis, it is up by 3.8%, which is much bigger versus previous quarters. Could management help us break down the different factors contributing to this sequential improvement? Thanks.

Okay. So you are going to transition over to them.

Diesel and tissue quantities of mental kill them. All you kind of just argued to be easy to Hyundai functionally no sudden didn't bother digital photo GGP leisure Xiaomi keytruda. So to do that he brought up not wanting Telemundo tidy judge assigned in Providence, and be a light seasonality from yet beautiful.

Thanks.

Yeah.

This is James Thanks for the question.

I think you mentioned three aspects in terms of the product mix change.

This makes the guide.

Oklahoma or the T cell <unk>.

Cost reduction as well as scale I think all three factors come into play.

<unk> Hello till then you can go out and be they sat down and yet no. One asked that he's oh. Thanks management for taking my question. So the first question is regarding vehicle gross margin, we see that on a quarter over quarter basis. Its up by three 8%, which is a much bigger versus previous quarters. So could management help us.

What I would say is the majority of the impact is still on the product mix side. So if you remember our kimono.

The Mona and three accounts for a pretty significant delivery percentage in the first quarter and that percentage is reduced through the second quarter as we transition into the new version.

Break down the different factors contributing to this sequential improvement thanks.

Okay.

Whereas.

James Wu: Hi Gina, this is James. Thanks for the question. You are right. I think you mentioned three aspects in terms of the product mix change, cost reduction, as well as scale. I think all three factors come into play. What I would say is the majority of the impact is still on the product mix side. If you remember, the Mona M03 accounts for a pretty significant delivery percentage in the first quarter, and that percentage has reduced through the second quarter as we transition Mona into the new version, whereas our new G6 and G9 has increased its product mix in the second quarter of 2025. What we have seen is the new G6 and G9 has a very healthy gross margin thanks to the improvement technology as well as the specs that we offer to our customers that they like.

Hi, Tito this is James Thanks for the question Youre right I think you mentioned three aspects in terms of the product mix change.

Our new <unk> 600, <unk> has increased its a product mix in the second quarter of 2025.

What we've.

Cost reduction as well as scale I think all three factors come into play.

Scene is the new <unk> and G&A is a very healthy gross margin. Thanks.

Thanks to the improvement in technology as well as the specs that we offer to our customers that they like.

What I would say is the majority of the impact is still on the product mix side. So if you remember.

In the meantime, we have achieved.

The Mona and three accounts for a pretty significant.

Higher level platform communization through our engineering efforts all of that has helped us to achieve a healthier gross margin for our new model year changes.

Delivery percentage in the first quarter and that percentage is reduced through the second quarter as we transition into the new version.

Whereas our new G 600, <unk> has increased its a product mix in the second quarter of 2025.

And in the meantime.

As we mentioned earlier scale also come into play we have delivered slightly higher volume in the second quarter as well and last but not least we have continued our efforts through our supply chain optimization, which helped us to further optimize our material costs as well in the second quarter.

We've seen.

Scene is to new GC and G&A is a very healthy gross margin. Thanks.

Thanks to the improvement in technology as well as the specs.

Specs that we offer to our customers that they like in the meantime, we have achieved.

James Wu: In the meantime, we have achieved a higher level of platform communication through our engineering efforts. All of that has helped us to achieve healthier gross margin for our new model year changes. In the meantime, as you mentioned earlier, scale also comes into play. We have delivered slightly higher volume in the second quarter as well. Last but not least, we have continued our effort through our supply chain optimization, which helped us to further optimize our material costs as well in the second quarter. Thank you.

Thank you.

Higher level platform communization through our engineering efforts all of that has helped us to achieve healthier gross margin for our new model year changes.

Okay.

Oh, sorry, sorry, Glenn tissue plenty of it I meant to say on a.

No I shouldn't say element to the yes, I feel should be the high school age that genuine passion, either equal Jean Young Hollywood conduct social today on day, one to two well known Yale Joe Shan Dong.

And in the meantime.

As he mentioned earlier scale also come into play we have delivered slightly higher volume in the second quarter as well and last but not least we have continued our efforts through our supply chain optimization, which helped us to further optimize our material costs as well in the second quarter.

The buildings are those long ago.

Pension you sound too easy to download that Guy you all else equal you'll back now Google at closing to a problem that is all I can send you to do the job.

<unk> argued how broadly you unless you do a two ship how cheap they treat all the.

Thank you.

Okay.

Brian Gu: 感谢。我下一个问题是关于咱们的这个费用端。首先我们这个研发费用是不是还是维持在全年 8.5 亿的一个指引？另外看到销售费用这一端，其实二季度我们也有很多营销的活动。但是其实相对于一季度上涨了大概有 2 亿左右吧。如果从新车发布的节奏来看，三季度和四季度的力度应该跟二季度差不多。所以我们是不是可以认为，跑去给渠道的这一块费用，我们的 sales marketing 这边的费用可能跟二季度是基本上类似的一个水平。My second question is regarding the operating expenses. For R&D expense, is management still keeping the $8.5 billion R&D of annual guidance? Also in terms of the sales and marketing expense, because we are seeing around $200 million in increase from Q2 to Q1 with the new model launch schedule. If we look at Q3 and Q4, it seems that the new model launch schedule is very similar to the intensity is very similar to the second quarter. So should we expect, excluding the channel fees, the sales and marketing expense should be quite similar to the second quarter? Thanks.

Oh, sorry, sorry, Glenn tissue with a lender to the field Oh, no I shouldn't say element to the yes, I feel should be the high school age should that Union Pasha either E G.

Descartes fail now women sales marketing a dip in the field.

So you could argue that we should keep a challenge for sure.

So that you go shopping.

Jean Young Hollywood conduct social if they don't do it once you should argue too well Neil doshi, our door to.

So my second question is regarding the operating expenses.

So for R&D expense is management's still keeping the $8 five.

And billions, although small at all.

Pension you sound easy to shut them down at that Guy you all else equal, you'll know who called who seem to have a problem that you're doing I can send you to a city to the J Jill Lee to endow the RGB tableau, so you'll miss your particularly your way to ship how cheap they treat all the D car sale now women does sales.

Billion RMB of annual guidance and also in terms of the sales and marketing expense.

Because we're seeing just around 200 million increase from <unk> <unk> with Nomura.

New model launch schedule and if we look at <unk>. It seems that the new model launch schedule is very similar to the intensity is very similar to the second quarter. So should we expect excluding the channel six.

Marketing J P and the let's say on kind of Blue argued Wuxi, China tissue laser that you Gotta shipping. So in a quick second question is regarding the operating expenses. So for R&D expense is management's still keeping the $8 5 billion.

The sales and marketing expense should be quite similar to the second quarter. Thanks.

Got it this is James again, so with regard to the expenses I'll answer in two parts from an R&D perspective, you're right.

Billion RMB of annual guidance and also in terms of the sales and marketing expense because we're seeing just around 200 million increase from to Q2, one two with the new.

We have been.

Expanding our investment in the R&D segment, particularly to try to.

New model launch schedule and if we look at <unk>. It seems that the new model launch schedule is very similar to the intensity is very similar to second quarter. So should we expect a excluding the channel six those sales and marketing expense should be quite similar to the second quarter. Thanks.

Basically Brandon the AI capabilities from the digital world to the physical world.

As well as supplementary earlier, we will start to launch.

One car was two dual energy platform.

In the fourth quarter of this year. So we have basically increased our engineering workforce and capabilities throughout this year as well as into the second half Hum in the main.

James Wu: Got it. This is James again. With regard to the expenses, I will answer in two parts. From an R&D perspective, you are right. We have been expanding our investment in the R&D segment, particularly to try to basically bring the AI capabilities from the digital world to the physical world. As well as, as He Xiaopeng mentioned earlier, we will start to launch the one car with two dual energy platform in the fourth quarter of this year. So we have basically increased our engineering workforce and capabilities throughout this year, as well as into the second half. In the meantime, our AI technology investment will help us to enhance our leadership in this area, which includes autonomous driving, robotic investment, as well as our enhancement of the engineering workforce. Also, the cloud-based computational power is something that we have continued to invest as well.

Got it this is James again.

So with regard to the expenses Oh answer in two parts from an R&D perspective.

In time, our AI technology investment.

Right we have been.

Expanding our investment in the R&D segment, particularly to try to.

It will help us to enhance our leadership in this area, which includes our autonomous driving robots robotic investment as well as our enhancements of the engineering workforce.

Basically Brandon the AI capabilities from the digital world to the physical world.

As well as supplementary earlier, we will start to launch.

Also the.

<unk> cloud based computational power is something that we have continued to invest as well.

One car was to adore energy platform.

In the fourth quarter of this year, so we have basically.

This is on the R&D side.

With regard to the sales expenses, you're right. The second quarter has a slight increase versus the first quarter.

Increased our engineering workforce and capabilities.

Without this year as well as into the second half.

Partially also because of a higher deliveries in the second quarter as we pay commissions to our franchise stores.

In time, our AI technology investment will.

It will help us to enhance our leadership in this area which includes.

As part of that as well we have.

Autonomous driving robot robotic investment as well as our enhancements of the engineering workforce.

Product launches in Q2, as you mentioned, but remember we have a more significant product launches in the third quarter. For example, the G. Seven which is a brand new SUV as well as the new P. Seven these true launches I would say would be more significant and probably would require a higher marketing and advertising expense.

Also the.

Cloud based computational power is something that we have continued to invest as well.

James Wu: This is on the R&D side. With regard to the sales expenses, you are right, the second quarter has a slight increase versus the first quarter, partially also because of our higher deliveries in the second quarter, as we pay commissions to our franchise stores as part of that as well. We have product launches in Q2, as you mentioned, but remember, we have more significant product launches in the third quarter. For example, the G7, which is a brand new SUV, as well as the new P7. These two launches, I would say, would be more significant and probably would require higher marketing and advertising expenses in the third quarter.

So this is on the R&D side with regard to the sales expense.

Expenses, you're right the second quarter has a slight increase versus the first quarter.

In the third quarter.

And going into end of third quarter and into fourth quarter, we'll be launching the clinical and Super electric platform as well in our X nine a product, which we will also provide and deploy sufficient resource to make this successful launch as well in that regard we will continue to invest.

Partially also because of a higher deliveries in the second quarter.

We pay commissions to our franchise stores as part of that as well we have product launches in Q2 as you mentioned, but remember we have a more significant product launches in the third quarter. For example, the G. Seven which is a brand new SUV as well as the new P. Seven.

And make sure the marketing and advertising expenses are appropriate to support the product launches in the second half.

These two launches I would say would be more significant and probably would require a higher marketing and advertising expenses in the third quarter.

Okay.

Oh, Hello, guys, Yeah. Thank you very much James.

Your next question comes from Shao Lee with Jefferies. Please go ahead.

James Wu: Going into end of third quarter and into fourth quarter, we will be launching the Xpeng Super Electric platform as well in our X9 product, which we will also provide and deploy sufficient resource to make the successful launch as well. In that regard, we will continue to invest and make sure the marketing and advertising expenses are appropriate to support the product launches in the second half. Thank you.

And going into end of third quarter and into fourth quarter, we'll be launching the quin from Super electric platform as well in our <unk> product, which we will also provide and deploy sufficient resource to make the successful launch as well in that regard we will continue to invest.

Uh huh.

So that's the only thing just for what you.

Oh, what have been your seal.

Hello and can.

Now whether detailing Tino sure why a woman.

Attempting to take us through to what.

What kind of a dosing claim next.

And make sure the marketing and advertising expenses are appropriate to support the product launches in the second half.

Next Peter did I say into song.

Central to the T cell not Dylan, just simply litter and cell phone without or does it have any single young guns at a time that would be great.

Thank you.

Oh, Hello, guys, Yeah. Thank you very much James.

Brian Gu: 好的, 感谢。Thank you very much, James Wu.

Now well most of them easily he said kind of placebo dying to tell Josh.

Operator: Your next question comes from Xiaoyi Lei with Jefferies. Please go ahead.

Your next question comes from Shao Lee with Jefferies. Please go ahead.

David one time see sanitizing, the stickiness with her boyfriend.

Hum.

So okay. So anytime you.

Brian Gu: P7的这个在颜值上有显著的这个提升。请问这是否意味着 XPeng 未来这个产品思路将更加强调这个设计的这个优先级? 我们是否可以这里理解成这不是一个短期的调整, 而是公司这个中长期战略转型的核心的组成部分? My first question is about your product strategy. The P7 has made a significant leap in the ethical design. Does this signal a shift in XPeng's product strategy towards prioritizing design? Should we understand this not just as a short-term adjustment, but as a core component of the company's long-term strategic transformation?

So my first question is about your.

Oh, what have been your single a sound Hello Antti.

Product strategy than.

And then you have the next P. Seven has made a significant leap in the ethical design does this signal a shift in ex post product gaddi towards prioritizing design.

Now, whether Vito and Tino sure Bryan will then take a attempting to take us through two class I went kind of to listen.

Peter just a day into song.

Understand.

Just as a short term adjustment, but as a core component of the company.

Central to the Tusa Nacho Lynn just simply you live here in Stockholm, where neither does that have any sort of a gun kantar a townhouse. Okay. Great. So just a real turnkey now well most of them easily he said kind of placebo done so talk to us.

Our long term strategic transformation.

Yeah.

I'll tell you what the shaft bore.

Didn't hear me that wouldn't be as well.

At one time.

Yes.

And it does seem the stickiness with him boyfriend.

Some of the Chilean peso.

My first question is about your.

Sydney minutes, Funkiness, Zaccone man, and it's actually one of them Fortunately minutes of cookies.

Product strategy.

Then you have the next P. Seven has made a significant leap in the ethical design does this signal a shift in ex post product strategy towards prioritizing design should we understand this is not just a short term adjustment.

Probably the one that's an ingestion.

They don't have to even maintain.

I mean in total.

So I'm definitely Deutschland, and you'll know what to do.

Please go ahead of course reunion.

I don't understand and corridor trading.

As a core component of the company.

So do you enjoy a consequence from Jefferies.

Our long term strategic transformation.

Right.

I'm a shareholder what Katrina.

Yeah.

James Wu: 对, 我是小鹏。整体你的问题, 当然我答案是Yes。这个我们去年在公司里面重新的思考里面, 在XPeng的过去里面是科技是最重要的, 特别是我们在自动驾驶领域。那么我们的自动驾驶领域里面每一年投入大量的钱, 但实际上我们在很多其他领域我认为做得不足够。所以在过去的一年, 在2024年年初的时候, 我们就确定我们要把设计能力作为公司跟自动驾驶一样的长板。那么这样的话, 在过去的24个月, 包括对未来的一段时间, XPeng的车型都将追求没有短板, 提高中板的高度, 且有数块长板。那么自动驾驶也好, 设计也好, 都是我们期望达到的长板的核心。所以我们在这个里面给了非常高的权重给造型, 以及造型的整个产品开发的过程。我们以前是先来约束工程成本定位, 再去让造型。现在我们是先来让造型来选择, 再来去约束工程正式定位。我们在上海有两栋楼专门给全部给造型, 我们在广州有一栋楼。那么这三栋楼全部都是造型的团队。我们正在建立一个全球范围的更大的一个设计团队。那么将来我们希望不光是在物理世界所看到跟摸到的造型我们也做得好, 我们还想把整体的用户体验在未来时间做得更好。P7是其中的第一个前序。我希望在后面的时候大家会看到我们在整个的从目标、从过程、从管控的角度都有相比以前有巨大的提高。这是我们的核心的这个目标。谢谢。

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Being way, especially if not approaching I should elements of Schindler sulfonation thought that educational content.

I'm a shareholder what Katrina.

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Okay.

So the only on someone's in trouble. So you don't know someone says Hello jumped up about a one.

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Is that.

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So as usual kind of them both of them.

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And I think what's happening kind of articles on each N C.

And I would ask you sort of go on.

Pitches that you don't want to be.

Sure Shannon, our usual Gung Ho Hum.

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Being way, especially not approaching 19 elements of Shin <unk> No association, so that actually the actual colton.

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Doyle Xiaomi Chamber Street article just the woman the question though.

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So I'm gonna toss you over there. So you don't know someone says Hello temperatures are talking about hundreds of women's and that journey yoga torrential phone way that's going.

Yes.

Oh.

Thank you very much for your question and the overall answer to your question is yes, so lost him.

Further you go sit at Hyundai Amazon I wasn't sure in accordance with that.

We were looking at and we were thinking Oh Boy technology has always been our strength.

So as usual kind of onboard.

So she wont Miss with our home and hygiene part I don't see that you wish you hadn't thought would've seen sort of go on pitches that you don't want to be.

And we have always focused on autonomous driving and invested a huge amount of money and resources in the area.

You got a chance you would show the whole minutes, what are they what kind of woman that's.

But we have locked in the other areas and therefore in the beginning of that 'twenty 'twenty. Four we started to think that we should shift more focus under design as well and for the past 24 months as well as the nexgen.

That's a good thing.

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Okay.

Oh.

Alex Xie: Thank you very much for your question. The overall answer to your question is yes. Last year we were looking at this, and we were thinking that for technology has always been our strength, and we have always focused on autonomous driving and invested a huge amount of money and resources in the area. However, we have lacked in the other areas, and therefore in the beginning of 2024, we started to think that we should shift more focus onto design as well. For the past 24 months, as well as the next whatever month to come, and in the near short-term future, I would say that the company's target is to ensure that our product does not have any shortcomings.

Thank you very much for your question and the overall answer to your question is yes, so last year we.

For months to come hand in the near short term future I would say that the companies that target is to ensure that our products. It does not have any shortcomings, we try and improve but the areas that we are doing okay, and Florida, adding strength to our existing.

We're looking at and we were thinking Oh Boy technology has always been our strength and we have always focused on autonomous driving and invested a huge amount of money and resources in the area. However, we have locked in the other areas and therefore in the beginning of that 'twenty 'twenty.

Areas that we already outperform others, and which means that we are now currently giving more weightings and they're getting more attention to the styles in the aesthetics of our products in the past that when we look at it styles as well when we look at the Fedex and design of a car. It comes at a loss to a wafer.

Four we started to think that so we should it shift more focus under design as well and for the past 24 months as well as the nexgen whatever months to come hand in the near short term future I would say that the companies that target is to ensure that our products are.

First it starts with the engineering, we force them to cut the cost against the positioning of the car and finally it comes down to the design and style and aesthetics of a car, but now it is.

It does not have any shortcomings, we try and improve but the areas that we are doing okay, and Florida, adding strength to our existing areas. The doctor, we already outperform others and which means that we are now currently giving more weightings ends it anymore.

Alex Xie: We try and improve the areas that we are doing okay, and further adding on strengths to our existing areas that we already outperform others, which means that we are now currently giving more weightings and giving more attention to the styles and aesthetics of our products. In the past, when we look at styles or when we look at aesthetics and design of a car, it comes at last. We first start with the engineering, we then look at the cost and the positioning of the car, and finally it comes to the design and style and aesthetics of a car. But now it is the reverse. Sometimes we look at the style and aesthetics of a car first, we then decide on the engineering, the cost, and the positioning of this vehicle.

That'd be worse, sometimes when we look at it the style and aesthetics of the car first we then decide on the engineered rate the cost and the positioning of the vehicle. So in Shanghai currency. We have the two buildings that are dedicated to work on the design and style of our vehicles in Guangzhou, we have one building so thats three building.

Attention to the styles in aesthetics of our products in the past that when we looked at it styles as well when we look at the aesthetics and design of a car. It comes at a loss that we first start with the engineering. Please first then become the coffee and the positioning of the car and finally it comes down to the design.

In total globally. We are also building a more different centers that should help us with the designs and so overall I would say that so we are looking at providing our users with a better physical products as well as a better overall user experience and.

In style and aesthetics of a car, but now it.

It is sometimes the way to look at it the style and aesthetics of the car first we then decide on the engineered rate the cost and the positioning of the vehicle. So in Shanghai currency. We have the two buildings that are dedicated to work on the design style of our vehicles in Guangzhou, we have one building so thats three bill.

For the Pizza oven and you can see that this is a process that we have been able to do so and that that is also the target that we strive to achieve.

Alex Xie: In Shanghai currently, we have two buildings that are dedicated to work on the design and styles of our vehicle. In Guangdou, we have one building, so that's three buildings in total. Globally, we are also building more different centers to help us with the designs. Overall, I would say that we are looking at providing our users with a better physical product as well as a better overall user experience. For the P7, you can see that this is a process that we have been able to do so, and that is also the target that we strive to achieve.

Thank you that's very helpful.

Oh, what they have on T cells are going to go off on it in terms of Oh My God are on each engine players who don't go to the highest him he's going to take a osama that's the one cell phones, I think Permian solar masses teaching the children English they tend to not do a woman's listeners in the U S. G E.

<unk> in total globally. We are also building a more different centers that should help us with the designs and the overall I would say that so we are looking at providing our users with a better physical products as well as a better overall user experience and.

My second question is regarding the policy response.

Oh for the Pizza oven and you can see that said this is a process that we have been able to do so and that that is also the target that we strive to achieve.

As we might as we noticed that that China's evolution policy has become a key regulatory direction are in the auto sector.

Brian Gu: Thank you. That is very helpful. My second question is regarding the policy response. As we noticed that China's anti-involution policy has become a key regulatory direction in the auto sector. How is XPeng adjusting the business operations in response to this policy, and what specific impact will this have on your operations and market positioning?

Thank you that's very helpful. Oh, what they have on T cells are going to go off on it in terms of Oh My God are off on each engine players who don't go to the highest when you go out like a Osama that's the one cell phones I think Cummins all our message we can intelligently English they tend to not do a woman's as soon as in.

<unk> adjusting the business operations, our English English both to this policy and what specific impact will this have on your operations and market positioning.

Yeah.

Hi, This is Brian let me address this question first of all I think we noticed the recent policy announcements around and time dilution.

Are you Oh, you're not you're teaching.

My second question is regarding the policy response, as we might as we noticed that that Oh China's.

Measures and I think this is actually a culmination of a number of.

Evolution policy has become a key a regulatory direction are in the auto sector.

Discussions.

Aimed to improve the Chinese economy competitiveness as well as healthiness, Oh I think that's good for the long run.

Ex post are adjusting the business our operations, our English English bonk to this policy and what specific impact will this have on your operations and market positioning.

I think as the industry, we need to have a healthy competition at the same time, we need to have the ability to reinvest into new technology reinvest into building better quality products and this is actually the right direction.

Yeah.

James Wu: Hi, this is Brian. Let me address this question. First of all, I think we noticed the recent policy announcements around anti-involution measures. I think this is actually a culmination of a number of discussions that aim to improve the Chinese economy competitiveness as well as healthiness. I think that is good for the long run. I think as an industry, we need to have a healthy competition. At the same time, we need to have the ability to reinvest into new technology, reinvest into building better quality products. This is actually the right direction. From our perspective, we actually always focused on achieving the most innovative technology and products for our customers through relentless innovation, relentless development. I think this actually, I would say, coincides with this new policy direction.

Hi, This is Brian let me address this question first of all I think that we noticed the recent policy announcements around anti evolution.

From our perspective, we actually always focused on achieving the most innovative technology.

Measures and I think this is actually a culmination of a number of disc.

Technology and products for our customers through relentless innovation.

This development and I think this is actually I would say coincides with this new policy or direction, we feel like our by focusing on our target customers by delivering the best quality, the best technology and in our products that actually has.

Discussions are.

Aimed to improve the Chinese economy competitiveness as well as healthiness, Oh I think that's good for the long run.

Because the industry, we need to have a healthy competition at the same time, we need to have the ability to reinvest into new technology reinvest into building better quality products and this is actually the right direction.

To appeal is ultimately will be the right solution and will earn the right recognition both from our customers as well as from our partners as well as from our regulators. So I think in that regard we will continue to.

From our perspective, we actually always focused on achieving the most innovative technology.

Technology and products for our customers through relentless innovation, our relentless development and I think this is actually I would say coincides with this new policy or direction, we feel like by focusing on our target customers by delivering the best quality the best Tech.

Focused on full stack innovation continue to focus.

Building innovative also partly appealed up here.

Adding products to our customers at the same time.

James Wu: We feel like by focusing on our target customers, by delivering the best quality, the best technology, and in products that actually have broader appeal, ultimately will be the right solution and will earn the right recognition both from customers as well as from our partners, as well as from our regulators. I think in that regard, we will continue to focus on full stack innovation, continue to focus on building innovative, also broadly appealing products to our customers, and at the same time, also be able to maintain a disciplined, an orderly, I would say, operations. For example, you probably noticed that XPeng is actually one of the earliest OEMs to respond to the government's request of improving sort of payment terms. We have really been making sure that our partners, our suppliers are all benefiting from this new trend.

<unk> be able to.

Maintaining a disciplined on orderly.

Obviously operations for example, you probably notice.

Knowledge he and.

Our products are that actually has broader appeal is ultimately will be the right solution and will earn the right recognition both from our customers as well as from our partners as well as from our regulators. So I think in that regard we will continue to.

Sharpon expand is actually one of the earliest Oems to respond to the government's request to be improving.

Sort of a payment terms, we have you know.

It really has.

Being making sure that our partners our suppliers are all benefiting from this new trends and we believe that ultimately all lead to a more healthier ecosystem and industry for our company.

Focus on full stack innovation continue to focus on building innovative also partly appealed appealing products to our customers at the same time and also be able to maintain.

Yeah.

That's very helpful.

Maintaining a disciplined and orderly.

The next question comes from bin Wang with Deutsche Bank. Please go ahead.

I wish the operations. For example are you probably noticed Ah shall Paul next upon is actually one of the earliest oh, yes to respond to the government's request to be improving our sort of our payment terms. We have you know.

Let's just say at what point do you Qi chairman look on to chip, which has truly transformed kind of empty.

I'm Michelle HHH home.

Sure sure.

I guess it can achieve.

It really has.

My question is about the cheese stay back <unk> the company seems to be.

Being making sure that our partners our suppliers are all benefiting from this new trends and we believe that ultimately all lead to a more healthier ecosystem in an industry fought for our company.

With us this incentive cost and the impact on coffee because it's a chips what is this.

James Wu: We believe that ultimately it will lead to a more healthier ecosystem and industry for our company.

It can be resolved and what's the normalized the messy bono assumption accompany Colin thank you.

Yeah.

Brian Gu: Thank you. That is very helpful.

That's very helpful.

Operator: The next question comes from Bin Wang with Deutsche Bank. Please go ahead.

The next question comes from bin Wang with Deutsche Bank. Please go ahead.

Just to clarify there's no issue with G. Seven so the we will we announced that we will deploy the the specific touring associates for infotainment.

James Wu: 谢谢。我的问题关于G7, 想问问看G7目前的这个座舱芯片的问题大概什么时候可以解决, 解决之后我们对G7的月销大概是怎么样一个水平的期望。My question is about the G7 SUV. The company seems to be facing some difficulty in the intelligent copy-related chips. When this issue can be resolved, and what is the normalized monthly volume assumption the company currently has? Thank you. Hey, Bing, just to clarify, there is no issue with G7. We announced that we will deploy the specific Turing AI SoC for infotainment in October. Then we will roll out the VLA large model and the VLM large model for the G7 customers. 好, OK。那第二个问题是关于那个三季度的毛利率指引。那么之前公司说了在四季度才会实现双位数的车辆毛利率, 那么现在毛利率在二季度超预期了, 能不能说在三季度会提前实现高的双位数的车辆毛利率? My second question is about the vehicle gross margin guidance for the third quarter. Previously, the guidance is that only in the Q4, vehicle gross margin can go to high teens. Because the Q2 vehicle gross margin has been higher than the market expectation, do we expect in the Q3 we already can achieve the high teens vehicle gross margin?

Let's just say all of the new client you cheat Chairman Michael <unk>.

So we're trying to see them kind of empty.

I'm, Michelle HHH huge home and teaching.

Uh huh.

Are you sure that should the manga seeking to chew up my question is about the cheese stay back I see would be the company seems to be.

And then and no one will roll out the Sip.

And the V R. B O M models for the G seven customers.

Thanks incentive cost and the impact on cockpit with the chips.

Okay.

Hey, guys. Thank you the money to Chi.

This can be resolved and what's the normalized the messy bono assumption accompany Colin thank you.

Just wanted to sleep, establishing some insider <unk> mexicana monitors the articulates how you'd see that number I just wanted to start you've been quick to James just yet.

Anything Oh, just to clarify there's no issue with the G. Seven so the we will we announced that we will deploy the the specific touring associates for infotainment in.

So the China market.

My second question is upon a vehicle gross margin guidance for the quarter. Previously this guidance does not only in the number of full quota vehicle gross margin can go to high teens because of the second quarter of vehicle costs adjusting Highland Mark expectation do we expect in the quarter, we already kind of chip in the high teens.

In late October and then another one where we're allowed to sit on like a V. O N V. R. B O M models for the G seven customers.

Used vehicle gross margin. Thank you.

Yeah.

Hi, Ben this is James so with regard to the vehicle margin, yes, we have improved.

Okay, no here's hoping Tessa, calling you guys. Thank you the money to Chi.

Just wanted to sleep, establishing some age so that shutdown body Mcdonough monitored the articulates how you'd see that number and that's why I started to be quick to James just yet.

You know significantly in Q2 and the reasons I have explained before you know in the long term, we have always focused on.

So the China money to.

My second question is upon a vehicle gross margin guidance for the courtyard previously that guidance if not the only number of full quota vehicle gross margin can go to high teens because of the second quarter of equal across much of FSP Highland Mark expectation do we expect in the quarter. We are really kind of chip in a high teens vehicle across much. Thank you.

Taking into account the overall.

Competitive landscape as well as improve our scale.

Strategic priority.

So overall, we would take that as our overall guidance from a pricing as well as margin perspective, what I would emphasize is you know going into the.

James Wu: Thank you. Hi, Ben, this is James Wu. With regard to the vehicle margin, yes, we have improved significantly in Q2. The reasons I have explained before. In the long term, we have always focused on taking into account the overall competitive landscape as well as improving our scale as our strategic priority. So overall, we will take that as our overall guidance from a pricing as well as margin perspective. What I would emphasize is, going into the second half as we launch the brand new P7 and the X9 Super Electric Edition, I would focus on Q4, which we had communicated earlier that we are aiming at profitability in the fourth quarter, and that target has not changed. We have, as you remember, mentioned that we hope to achieve high teens profitability, overall profitability in the fourth quarter as well, and that target has not changed as well.

Okay.

Hi, Ben this is James so with regard to the vehicle margin, yes, we have improved.

Second half as we launch the brand new <unk> seven as well as the X nine Super Electric version Ah I would focus on.

You know significantly in Q2 and the reasons I have explained before you know in the long term we have always focused on you know.

Q4, which we have communicated earlier that we are aiming at profitability in the fourth quarter and that target has not changed and we have as you remember I mentioned that we.

Taking into account the overall.

Competitive landscape as well as improve our scale.

Hope to achieve high teens profitability overall profitability in the fourth quarter as well and that target has not changed as well both of that will help us to solidify our target to achieve a breakeven in the fourth quarter.

Our strategic priority.

So overall, we would take that as our overall guidance from a pricing as well as margin perspective, what I would emphasize is you know going into the second half as we launch the brand new <unk> seven as well as.

You know basically that that's my answer to your question. Thanks.

The X nine Super Electric version I would focus on.

Thank you.

Q4, which we have communicated earlier that we are aiming at profitability in the fourth quarter and that target has not changed and we have as you remember I mentioned that we are.

Thank you that concludes our question and answer session now I'd like to turn the call back over to the company for closing remarks.

Hope to achieve high teens profitability overall profitability in the fourth quarter as well and that target has not changed as well both of that will help us to solidify our target to achieve breakeven in the fourth quarter.

Thank you once again for joining us for the day. If you have further questions. Please feel free to contact <unk> Investor relations through the contact information provided on our website or the Pearson financial communications.

James Wu: Both of that will help us to solidify our target to achieve break-even in the fourth quarter. Basically, that is my answer to your question. Thanks. Thank you.

This concludes today's conference call you May now disconnect. Your line. Thank you.

You know basically that that's my answer to your question. Thanks.

Thank you.

Operator: Thank you. That concludes our question and answer session. Now, I would like to turn the call back over to the company for closing remarks.

Thank you that concludes our question and answer session now I'd like to turn the call back over to the company for closing remarks.

[noise]. Thank you once again for joining us for the day. If you have further questions. Please feel free to contact <unk> Investor relations through the contact information provided on our website or the Pearson financial communications.

James Wu: Thank you once again for joining us today. If you have further questions, please feel free to contact XPeng's investor relations through the contact information provided on our website or the Pearson Financial Communications.

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

This concludes today's conference call you May now disconnect. Your line. Thank you.

Okay.