Q2 2025 Li Auto Inc Earnings Call

Are in listen only mode.

Today's conference call is being recorded.

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

Janet Chang: Hello, ladies and gentlemen. Thank you for standing by for Li Auto Inc.'s second quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Janet Chang, Director of Investor Relations of Li Auto Inc. Please go ahead, Janet.

I will now turn the call over to your host Ms. Janet Yang Investor Relations director of Lee O'dea.

Please go ahead Janet.

Thank you Darcy good evening and good morning, everyone. Welcome to <unk> second quarter 2025 earnings Conference call. The Companys financial and operating results were published in our press release earlier today annual postpaid under complex IR website.

Speaker #2: Today's conference call is being recorded. I will now turn the call over to your host, Ms. Janet Chang, Investor Relations Director of Li Auto.

Speaker #2: Please go ahead, Janet.

Speaker #3: Thank you, Darcy. Good evening and good morning, everyone. Welcome to Li Auto's second quarter 2025 earnings conference call. The company's financial and operating results were published in a press release earlier today and were posted on the company's IR website.

Darcy: Thank you, Darcy. Good evening and good morning, everyone. Welcome to Li Auto Inc.'s second quarter 2025 earnings conference call. The company's financial and operating results were published in a press release earlier today and were posted on the company's IR website. On today's call, we will have our Chairman and CEO, Mr. Xiang Li, and our CFO, Mr. Tie Li, to begin with prepared remarks. Our President, Mr. Donghui Ma, and CTO, Mr. Yanchi Wang, will join for the Q&A discussion. Before we continue, please be reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding risks and uncertainties is included in certain company filings with the U.S.

Today's call, we will have our chairman and CEO, Mr. Shao, Lee and our CFO, Mr. John <unk> to begin with prepared remarks, our president Mr Don't Lima, and CTO, Mr. Yung Kim will join for the Q&A discussion.

Speaker #3: On today's call, we will have our Chairman and CEO, Mr. Xiang Li, and our CFO, Mr. Johnny Tie Li, to begin with prepared remarks.

Before we continue please be reminded that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995 forward looking statements involve encourage risks and uncertainties as such the Companys actual results maybe Ms.

Speaker #3: Our President, Mr. Dong Hui Ma, and CTO, Mr. Yan Xie, will join for the Q&A discussion. Before we continue, please be reminded that today's discussion will contain forward-looking statements made under the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Clearly different from the views expressed today further information regarding risks and uncertainties is included in certain company filings with the U S Securities and Exchange Commission and to the stock exchange of Hong Kong Limited. The company does not assume any obligation to update any forward looking statements except as <unk>.

Speaker #3: Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the results expressed today. Further information regarding risks and uncertainties is included in certain company filings with the U.S. Securities and Exchange Commission and the Stock Exchange of Hong Kong Limited.

Acquired and applicable law.

Please also note that <unk> earnings press release, and this conference call include discussions of an audited GAAP financial information as well as.

Darcy: Securities and Exchange Commission and the Stock Exchange of Hong Kong Limited. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that Li Auto Inc.'s earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to Li Auto Inc.'s disclosure documents on the IR section of our website, which contain a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures. Our CFO will start his remarks in Chinese. There will be English translation after he finishes all his remarks. With that, I will now turn the call over to our CEO, Mr. Xiang Li. Please go ahead.

Speaker #3: The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that Li Auto's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial matters.

<unk> non-GAAP financial measures. Please refer to lay out our disclosure documents on the IR section of our website, which contains a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures.

CFO will start his remarks in Chinese there will be English translation. After he finishes his remarks with that I'll now turn the call over to our CEO. Mr. Shan Li. Please go ahead.

Speaker #3: Please refer to Li Auto's disclosure documents on the Investor Relations section of our website, which contain a reconciliation of the unaudited non-GAAP matters to comparable GAAP matters.

Okay.

Speaker #3: Our CFO will start his remarks in Chinese. There will be an English translation after he finishes all his remarks. With that, I will now turn the call over to our CEO, Mr. Xiang Li.

Yeah.

But it all comes down accordingly.

Great.

Please go ahead.

Yes.

Joseph tool Tahoe.

Speaker #3: Please go ahead.

Yes.

Sure.

You don't hear it from you.

Speaker #4: 大家好, 我是李想, 欢迎各位参加今天的业绩电话会议。 2025 年第二季度, 我们共交付新车超过 11 万辆, 实现收入人民币 302 亿元。 根据中期研上千辆数据, 本季度理想汽车在 20 万辆以上的中国新能源汽车市场占有率达到 13.4%。 蝉联中国汽车品牌, 销量首位。 截止 7 月底, 我们累计交付了超过 136 万辆汽车, 感谢 136 万个家庭的认可, 也感谢合作伙伴股东以及所有我们共同成长的员工。 4 月份我们推出了全新的理想 Mega Hold, 目前月销量在 3000 台左右, 远超预期。 理想 Mega 于去年 3 月发布以后, 历经 14 个月, 自今年 5 月起成为 50 万辆以上 MTV, 销量第一。 自 6 月起成为 60 万辆以上, 所有纯电车的销量冠军。 这次, 这次成功一方面彰显了我们公司上下快速识别问题自我迭代的能力, 另一方面也有力地证明了产品价值, 终将被市场和时间验证。 R 系列方面, 上半年我们完成了全系在售产品的智能换新。 6 月以来, 受销售服务体系调整和市场因素的影响, R 系销量有所波动。 尽管如此, 6 期两月我们在 20 万辆以上的新能源汽车市场依然位列前三。 我们将继续发挥理想汽车在逆境中成长的能力, 尽快完成销售体系调整, 包括优化销售和交付的能力, 建立全链路的营销体系, 调动销售积极性。 同时, 我们将聚焦价值, 聚焦用户, 更加有效地应对市场变化。 7 月 29 日, 我们正式发布理想 M8, 并于 8 月 20 日开启交付。 理想 M8 是理想汽车重新定义纯电 SUV, 并集成理想汽车最新创新成果于一体的作品。 兼顾越野车的全能, 豪华轿车的操控, MTV 的空间舒适等优势。 其先锋造型也是用户选择理想 M8 的核心原因之一。 很好地印证了我们通过正向研发创造独特用户价值的传奇理念。 作为重新定义纯电 SUV 的全新产品, 理想 M8 发布以后, 我们专注于逐步赢得用户口碑。 我们很高兴看到理想 M8 的市价满意度高达 97%。 随着用户深度体验产品, 充分了解和感受产品价值, 市场反应逐渐升温。 自 8 月 20 日, 自 8 月 20 日开启交付以来, 首批用户对理想 M8 的用户体验给予了高, 给予了高度评价。 我们有信心到 9 月底累计交付超过 8000 辆的理想 M8。 相信通过时间的验证, 理想 M8 能够和理想 Mega 一样, 成为所在价格带的纯电标杆产品。 此外, 我们的五座纯电 SUV 理想 I6 的上市筹备工作进展顺利, 将于 9 月底上市并开启交付。 进一步扩大我们的产品矩阵, 满足更广泛用户的需求。 配合纯电车型的推出, 我们已经建成中国车企规模最大的补能体系。 作为最近两年艰难速度最快的车企, 理想汽车致力于为纯电用户打造没有里程焦虑的用车体验。 目前, 我们的自建超充站已经超过 3100 座, 配备超过 1.7 万根充电桩, 其中高速超充站超过了 1000 座, 覆盖中国最繁忙的中国最繁忙的九纵井横高速公路。 平均间隔 150 公里就有一个座。 城市超充站超过 2100 座, 覆盖 260 座城市, 一二线城市平均 3.5 公里就有覆盖。 我们有信心达成年底 4000 座的建站目标。 在充电速度方面, 我们的补能体系也达到了行业领先水平。 目前我们的充电桩均为 250 千瓦以上, 其中 4K 和 5K 端的占比超过 61%。 后续建站将全部采用 4K 和 5K 的充电桩, 进一步, 进一步提高我们补能体系的超充能力。 此外, 我们持续探索并构建汽车充电服务生态, 6 月我们在常州上线了全国首座穿梭式超充站。 和加油站的模式一样, 不但支持人车分离, 还能实现多车同时超充。 让充电体验更加便捷高效。 我们也已经在测试自动, 自动的充电机器人, 希望未来能够重新定义智能的充电。 我们坚持对研发的持续投入, 以进一步巩固理想汽车在智能化领域的行业领先地位。 我们坚信智能化将越来越成为用户购买决策的关键乃至首要因素。 也将重构汽车生态, 为出行带来革命性的变化。 我们预计今年在人工智能上的投入超过 60 亿, 用于基础设施以及产品的技术研发。 8 月 20 日, 我们自研的 VLA 4G 大模型和理想同学智能体, 随着理想 M8 的交付正式上线, 其中 VLA 技术架构成为行业首个上车交付的, 并将于 9 月中旬通过 OTA 部署到所有的 AB Max 车型。 VLA 4G 大模型结合空间、语言智能和行为和行为策略, 具备更加精准的空间感知能力, 思维链的推理决策能力, 向人类司机一样通过语言交流的能力和路线, 以纠正生成及选择最佳路径的能力。 通过采用各项人类智能的技术架构, VLA 4G 大模型可以在防御驾驶、平稳舒适、三点掉头、连续任务、地库行驶等方面带来用户显著的体验提升, 并能通过持续的强化学习, 越来越懂用户偏好。 同时, 基于自研几组模型慢的 GPT 的理想同学也从语音助手升级为理想同学智能体, 其能力的提升极大拓展了车载服务的生态。 比如, 您可以, 啊, 您可以用生活助手对接外卖 APP 完成到店取餐。 自主调用车外摄像头和支付 APP 完成停车场扫码付费。 理想同学的记忆能力不仅增加了工具的多样化, 然后也使其更加情感化和个性化。 未来我们将继续深耕人工智能技术, 并利用研发成果不断推进产品的迭代进化, 以车为载体, 我们将致力于成为物理世界和数字世界的桥梁, 将人工智能普惠到每一位用户。 人工智能之外, 我们的研发也聚焦电驱技术和 5K 超充等核心环节。 我们自研的驱动电机包含核心的碳化硅工艺芯片、大幅优化了整车能耗及续航表现。 另一项研发重点是 5K 电池, 我们自研了电芯和热管理系统, 更好地支持超快充和长续航。 从零充到 80% 都能保持 300 千瓦以上的高功率。 此外, 电池的寿命也表现出色, 在超充模式下 1500 个满充满放的循环后, 电池的健康度仍然可以保持在 80% 以上。 领先于行业。 我们将继续借助自研优势, 通过自研资质或技术自研合资生产等方式构建产品经历。 同时进一步优化生产成本, 销售服务网络方面, 通过近期的组织架构调整, 我们致力于构建以门店为核心的用户运营能力。 提升终端销售转化能力, 更好地传递品牌及产品价值。 同时, 我们将继续优化网络结构, 扩大和升级在头部汽车城及商场的网络铺展。 并逐步在新线城市增加门店数量, 以触达更多的用户群。 为了更好地支持纯电车型上市, 我们今年的开店节奏整体较为前置, 截止目前, 理想汽车在全国 150 多个城市运营了约 550 家零售中心。 门店数量较去年年底净增 50 家, 全国的总展位数量也从去年的 3700 多个增加到 4400 多个。 理想汽车在发展历程中一直坚持做男儿正确的事, 从增城市的理想 One 和 L 系列, 到 5K 纯电的理想 Mega, 理想 M8。 无论面临怎样的挑战, 我们创造更强技术和更好产品的初心永远不会改变。 今年大家看到纯电的进步, 包含理想 Mega Hold 和理想 M8。 之后我们将继续打造极致的增程和纯电产品。 并深耕品牌建设, 未来我们将继续以技术创新为驱动, 持续引领行业变革。 我们希望通过长期不懈的努力, 为用户提供卓越科技贴心服务和幸福陪伴。 下面有请我们的 CFO 李品为大家详细介绍我们的财务表现。

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Donghui Ma: MEGA Hold, 目前月销量在3,000台左右, 远超预期。Li MEGA于去年3月发布以后历经14个月, 自今年5月起成为500,000元以上MPV销量第一, 自6月起成为600,000元以上所有纯电车的销量冠军。这次成功一方面彰显了公司上下快速识别问题自我迭代的能力, 另一方面也有力地证明了产品价值终将被市场和时间验证。 L系列方面, 上半年我们完成了全系在售产品的智能换新。6月以来, 受销售服务体系调整和市场因素的影响, L系销量有所波动。尽管如此, 六七两月我们在200,000元以上的新能源汽车市场依然位列前三。我们将继续发挥Li Auto Inc.在逆境中成长的能力, 尽快完成销售体系调整, 包括优化销售和交付的能力, 建立全链路的营销体系, 调动销售积极性。同时, 我们将聚焦价值, 聚焦用户, 更加有效地应对市场变化。 7月29日我们正式发布Li i8, 并于8月20日开启交付。Li i8是Li Auto Inc.重新定义纯电SUV, 并集成Li Auto Inc.最新创新成果于一体的作品, 兼顾越野车的全能、豪华轿车的操控、MPV的空间舒适等优势。其先锋造型也是用户选择Li i8的核心原因之一, 很好地印证了我们通过正向研发创造独特用户价值的产品理念。作为重新定义纯电SUV的全新产品, Li i8发布以后, 我们专注于逐步赢得用户口碑。我们很高兴看到Li i8的市场满意度高达97%。随着用户深度体验产品, 充分了解和感受产品价值, 市场反应逐渐升温。自8月20日开启交付以来, 首批用户对Li i8的用户体验给予了高度评价。我们有信心到9月底累计交付超过8,000辆的Li i8, 相信通过时间的验证, Li i8能够和Li MEGA一样成为所在价格带的纯电标杆产品。 此外, 我们的五座纯电SUV Li i6的上市筹备工作进展顺利, 将于9月底上市并开始交付, 进一步扩大我们的产品矩阵, 满足更广泛用户的需求。配合纯电车型的推出, 我们已经建成中国车企规模最大的补能体系。作为最近两年建站速度最快的车企, Li Auto Inc.致力于为纯电用户打造没有里程焦虑的用车体验。目前我们的自建超充站已经超过3,100座, 配备超过17,000根充电桩, 其中高速超充站超过了1,000座, 覆盖中国最繁忙的九纵九横高速公路, 平均间隔150公里就有一个座。城市超充站超过2,100座, 覆盖260座城市, 一二线城市平均3.5公里就有覆盖。我们有信心达成年底4,000座的建站目标。 在充电速度方面, 我们的补能体系也达到了行业领先水平。目前我们的充电桩均为250千瓦以上, 其中4C和5C桩的占比超过61%。后续建站将全部采用4C和5C的充电桩, 进一步提高我们补能体系的超充能力。此外, 我们持续探索并构建汽车充电服务生态。6月我们在常州上建了全国首座穿梭式超充站, 和加油站的模式一样, 不但支持人车分离, 还能实现多车同时超充, 让充电体验更加便捷高效。我们也已经在测试自动的充电机器人, 希望未来能够重新定义智能的充电。 我们坚持对研发的持续投入, 以进一步巩固Li Auto Inc.在智能化领域的行业领先地位。我们坚信智能化将越来越成为用户购买决策的关键乃至首要因素, 也将重构汽车生产, 为出行带来革命性的变化。我们预计今年在人工智能上的投入超过6,000,000,000元, 用于基础设施以及产品的技术研发。 8月20日我们自研的VLA4D大模型和理想工学智能体, 随着Li i8的交付正式上线, 其中VLA技术架构成为行业首个上车交付的, 并将于9月中旬通过OTA部署到所有的AB迈车型。VLA4D大模型结合空间语言智能和行为策略, 具备更加精准的空间感知能力、撕裂链的推理决策能力, 像人类司机一样通过语言交流的能力和路线, 比如生成及选择最佳路径的能力。通过采用更像人类智能的技术架构, VLA4D大模型可以在防御驾驶、平稳舒适、三点调头、连续任务、庇护形式等方面带来用户显著的体验提升, 并能通过持续的强化学习, 越来越懂用户偏好。 同时, 基于自研基座模型Mind GPT的理想同学也从语音助手升级为理想同学智能体, 其能力的提升极大扩展了车载服务生态。比如, 您可以用生活助手对接外卖APP, 完成到店取餐, 自主调用车外摄像头和支付APP, 完成停车场扫码付费。理想同学的记忆能力不仅增加了工具的多样化, 然后也使其更加情感化和个人化。未来我们将继续深耕人工智能技术, 并利用研发成果不断推进产品的迭代进化。以车为载体, 我们将致力于成为物理世界和数字世界的桥梁, 将人工智能回到每一位用户。 人工智能之外, 我们的研发也聚焦电驱技术和5C超充等核心环节。我们自研的驱动电机包含核心的碳化硅工艺芯片, 大幅优化了整车能耗及续航表现。另一项研发重点是5C电池, 我们自研了电芯和热管理系统, 更好地支持超快充和长续航, 从零充到80%都能保持300千瓦以上的高功率。此外, 电池的寿命也表现出色, 在超充模式下, 1,500个满充满放的循环后, 电池的健康度仍然可以保持在80%以上, 领先于行业。我们将继续借助自研优势, 通过自研自制或技术自研、合资生产等方式构建产品竞争力, 同时进一步优化生产成本。 销售服务网络方面, 通过近期的组织架构调整, 我们致力于构建以门店为核心的用户运营能力, 提升终端销售转化能力, 更好地传递品牌及产品价值。同时, 我们将继续优化网络结构, 扩大和升级在头部汽车城及商场的网络覆盖, 并逐步在第一线城市增加门店数量, 以触达更多的用户群。为了更好地支持纯电车型上市, 我们今年的开店节奏整体较为前置。截止目前, Li Auto Inc.在全国150多个城市运营了约550家零售中心, 门店数量较去年年底新增50家, 全国的总展位数量也从去年的3,700多个增加到4,400多个。 Li Auto Inc.在发展历程中一直坚持做正确的事, 从增程式的理想ONE和L系列到5C纯电的Li MEGA, Li i8, 无论面临怎样的挑战, 我们创造更强技术和更好产品的初心永远不会改变。今年大家看到纯电的进步, 包含Li MEGA Home和Li i8。之后我们将继续打造极致的增程和纯电产品, 并深耕品牌建设。未来我们将继续以技术创新为驱动, 持续引领行业变革。我们希望通过长期不懈的努力, 为用户提供卓越科技、贴心服务和幸福陪伴。下面有请我们的CFO Tie Li为大家详细介绍我们的财务表现。

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Hello, Richard.

Hello, everyone. This is vishal and thank you for joining today's earnings conference call in the second quarter of 2025, we deliver over 110000 vehicles, bringing total revenues to RMB 32, we're doing.

Speaker #5: Hello, everyone. This is Li Xiang and thank you for joining today's earnings conference call. In the second quarter of 2025, we delivered over 110,000 vehicles, bringing total revenues to R&B 30.2 billion.

Tie Li: Hello everyone, this is Xiang Li. Thank you for joining today's earnings conference call. In the second quarter of 2025, we delivered over 110,000 vehicles, bringing total revenues to RMB 30.2 billion. According to insurance registration data from the China Automotive Technology and Research Center, we captured a 13.4% market share in the RMB 200,000 and above NEV market in China, making yet another quarter where we have top segment sales among Chinese auto brands. As of the end of July, our cumulative deliveries exceeded 1.36 million vehicles. I would like to extend my sincere gratitude to those 1.36 million families who have placed their faith in us, as well as our partners, shareholders, and employees for being part of this journey. We launched Li MEGA Home in April this year. The sales results far exceeded our expectations, with approximately 3,000 units sold monthly.

According to insurance registration data from the China Automotive technology and research Center recaptured a 13, 4% market share in the RMB 200000, and above and UV market in China, making yet another quarter, where we have talk segment sales are more Chinese auto brands.

Speaker #5: According to insurance registration data from the China Automotive Technology and Research Center, we captured a 13.4% market share in the R&B 200,000 and above NEB market in China.

As of the end of July our cumulative deliveries exceeded one $3 6 million vehicles I would like to extend my sincere gratitude to those 136 million families who have placed their faith in us as well as our partners shareholders and employees for being part of this journey.

Speaker #5: Making yet another quarter where we have top segment sales among Chinese auto brands. As of the end of July, our cumulative deliveries exceeded 1.36 million vehicles. I would like to extend my sincere gratitude to those 1.36 million families who have placed their faith in us, as well as our partners, shareholders, and employees for being part of this journey.

We launched lead Mega home in April of this year.

Sales results far exceeded our expectations with approximately 3000 units for the monthly fee.

14 months after launch in March last year re Mega has become the best selling on television priced above RMB 500000. Since May 2025, and then the top seller among all at the same price range since June 2025.

Speaker #5: We launched Li Mega Home in April this year. The sales result far exceeded our expectations, with approximately 3,000 units sold monthly. Fourteen months after launch, in March last year, Li Mega has become the best-selling MTV private above R&B 500,000 since May 2025.

Tie Li: Fourteen months after launch in March last year, Li MEGA has become the best-selling MPV priced above RMB 500,000 since May 2025, and then the top seller among all BEVs in the same price range since June 2025. These achievements demonstrate our ability to quickly identify issues and grow, while standing as a powerful testament to our product value, as validated by the market and test of time. The refreshed Li L series that we launched in the first half of this year experienced sales fluctuations since June due to sales and service system adjustments and other market factors. Despite these challenges, in June and July, we maintained our top three position in the RMB 200,000 and above NEV market. We will draw on Li Auto Inc.'s ability to thrive in challenging conditions and swiftly complete the restructuring of our sales and service system.

These achievements demonstrate our ability to quickly identify issues and growth.

Standing up a powerful testament to our product value and validated by the market at a time.

Speaker #5: And then the top seller among all BEVs in the same price range since June 2025. These achievements demonstrate our ability to quickly identify issues and grow.

The refresh Lee L series that we launched in the first half of this year experienced failed fluctuations since June due to sales and service system adjustments and other market factors.

Speaker #5: While standing as a powerful testament to our product value, as validated by the market at the test of time, the refreshed Li L series that we launched in the first half of this year experienced sales fluctuations since June due to sales and service system adjustments and other market factors.

Despite these challenges in June and July we maintained our top.

Sale top three position in the RMB 200000 in the Boston market we.

We will draw on the auto or the ability to thrive in challenging conditions and swiftly complete the restructuring of our sales and service system. This.

Speaker #5: Despite these challenges, in June and July, we maintained our top three position in the R&B 200,000 and above NEB market. We will draw on Li Auto's ability to thrive in challenging conditions and swiftly complete the restructuring of our sales and service system.

This includes enhancing sales and delivery capability building, an end to end marketing system and boosting sales team morale.

Meanwhile, we will focus on creating value for our users to respond more effectively to market dynamics.

Speaker #5: This includes enhancing sales and delivery capabilities, building an end-to-end marketing system, and boosting sales team morale. Meanwhile, we will focus on creating value for our users more effectively in response to market dynamics.

Tie Li: This includes enhancing sales and delivery capabilities, building an end-to-end marketing system, and boosting sales team morale. Meanwhile, we will focus on creating value for our users to respond more effectively to market dynamics. We officially launched Li i8 on July 29, with deliveries starting on August 20. Li i8 showcases our latest innovations and redefines best SUVs by combining the versatility of off-roaders, the ride and handling of luxury sedans, and the comfort of MPVs. Its pioneering design is a key reason why users choose Li i8, validating our product philosophy. Since its launch, our focus has been on accumulating positive user word of mouth for this innovative product. We are especially pleased to see a test drive satisfaction rate of over 97%. As customers experience the product firsthand, Li i8 continues to gain momentum.

We officially launched <unk>.

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Speaker #5: We officially launched the Li I8 on July 29th. Deliveries started on August 20th. The Li I8 showcases our latest innovation and leads the segment of best SUVs by combining the versatility of off-roaders, the ride and handling of luxury sedans, and the comfort of MPVs.

Suvs by combining diverse tillery of off Roaders ride and handling of water stands.

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<unk> our product philosophy.

Since its launch our focus has been accumulating positive user word of mouth.

The beta product, we are especially pleased to see past driver satisfaction rate of over 97% as customers experience the product firsthand the IAA continues to gain momentum.

Speaker #5: Its pioneering design is a key reason why users choose the Li I8, validating our product philosophy. Since its launch, our focus has been on accumulating positive user word of mouth for this innovative product.

<unk> deliveries began on August 20, we received growth glowing reviews from the initial batch of customers, we expect cumulative deliveries.

Speaker #5: We are especially pleased to see a test drive satisfaction rate of over 97%. As customers experience the product firsthand, Li I8 continues to gain momentum.

<unk> 8000 units by the end of September.

Speaker #5: Since deliveries began on August 20th, we have received glowing reviews from the initial batch of customers. We expect cumulative deliveries of the Li I8 to exceed 8,000 units by the end of September.

Tie Li: Since deliveries began on August 20th, we received growing reviews from the initial batch of customers. We expect cumulative deliveries of Li i8 to exceed 8,000 units by the end of September. We're confident that over time, just like Li MEGA, Li i8 will establish itself as the best benchmark in its price range. Additionally, preparation for our five-seat BEV SUV, Li i6, is progressing smoothly. We plan to launch Li i6 and commence deliveries at the end of September. Li i6 will expand our product lineup to cater to a broader audience base. To support our BEV launch, we offered the largest charging network among automakers in China. As the automaker with the fastest growing charging network over the past few years, Li Auto Inc. strives to empower BEV users with a hassle-free experience.

We're confident that over time, just like the macro <unk> will establish itself.

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Additionally, preparation for our five <unk> six is progressing smoothly, we plan to launch <unk> and combined deliveries at the end of September.

Speaker #5: We're confident that over time, just like the Li Mega, the Li I8 will establish itself as the best benchmark in its price range. Additionally, preparation for our 5-seat Mega SUV, the Li I6, is progressing smoothly.

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To support our view much we operate the largest.

Speaker #5: We plan to launch Li I6 in condensed deliveries at the end of September. Li I6 will expand our product lineup to cater to a broader audience base.

Now from our automakers in China as the automaker with the fastest growing charging network over the past few years, we also strive to empower bev users with a hassle free experience.

Speaker #5: To support our BEV launch, we operate the largest charging network among automakers in China. As the automaker with the fastest growing charging network over the past few years, Li Auto strives to empower web users with a hassle-free experience.

As of now we have more than 3100 charging stations equipped with over 17000 charging staff.

Among these targets along the highway over 1000 Supercharging stations cover China busier.

Speaker #5: As of now, we have more than 3,100 charging stations equipped with over 17,000 charging stalls. Among these charging stalls, along the highways, over 1,000 supercharging stations cover China's busiest nine east-west and nine south-north highway routes.

Tie Li: As of now, we have more than 3,100 charging stations equipped with over 17,000 charging stalls. Among these charging stalls along the highways, over 1,000 supercharging stations cover China's busiest nine east-west and nine south-north highway routes, a 150-kilometer interval on average. Additionally, more than 2,100 urban supercharging stations are spread across over 260 cities, with an average coverage radius of 3.5 kilometers in first and second tier cities. We're confident that we'll reach our 4,000 station goal by the end of this year. Our charging network also leads the industry in terms of charging rate. Currently, all of our charging stalls support charging rates of 250 kilowatts or higher, with over 61% being 4C and 5C chargers. All of our upcoming charging stations use 4C and 5C charging stalls, further enhancing the ultra-fast charging capability of our energy replenishment network.

Nine east West and nine South North Highway route.

150 columnar interval on average.

Additionally, more than 2100 urban supercharging stations are spread across over 2066 with an average coverage ratio of three five quarters in first and second tier cities. We're confident that we'll reach our 4000 patient goal by the end of this year.

Speaker #5: If 150-kilometer intervals on average. Additionally, more than 2,100 urban supercharging stations are spread across over 260 cities, with an average coverage radius of 3.5 kilometers in first- and second-tier cities.

Our charging network also leads the industry in terms of charging rate currently all of our targets thoughts of poor charging rates of 250 kilowatt for higher with over 61% reinforcing our classy targets all of our upcoming charging stations you foresee at five five fee charging stop further enhancing the ultra.

Speaker #5: We're confident that we'll reach our 4,000-station goal by the end of this year. Our charging network also leads the industry in terms of charging rate.

Speaker #5: Currently, all of our charging stalls support charging rates of 250 kilowatts or higher, with over 61% being 4C and 5C chargers. All of our upcoming charging stations use 4C and 5C charging stalls, further enhancing the ultra-fast charging capability of our energy replenishment network.

Charging capability of our LNG energy Groupon instrument network.

Furthermore, we continue to explore and build a new ecosystem for our automotive charging services and <unk>.

June we locked China's first half to supercharge inspection in changzhou with functions like a casting which functions like a gas station. It allows users to stay in the cars, while supercharging multiple vehicles at the same time, making the charging experience more efficient and more convenient.

Speaker #5: Furthermore, we continue to explore and build a new ecosystem for our automotive charging services. In June, we launched China's first pass-through supercharging station in Changzhou, with functions like gas station, which functions like a gas station.

Tie Li: Furthermore, we continue to explore and build a new ecosystem for our automotive charging services. In June, we launched China's first pass-through supercharging station in Zhengzhou, which functions like a gas station. It allows users to stay in the car while supercharging multiple vehicles at the same time, making the charging experience more efficient and more convenient. We're also testing autonomous charging robots, aiming to redefine smart charging in the future. We remain committed to ongoing investment in research and development to further solidify Li Auto Inc.'s leading position in intelligence. We believe that intelligence is becoming an increasingly critical, maybe even the most critical driver of users' purchasing decisions. It will also reshape the automotive and mobility industry. We expect our AI investments this year to exceed RMB 6 billion, which will be allocated to infrastructure development as well as product and technology development.

We're also testing autonomous charging robot aiming to redefined smart charging in the future.

Speaker #5: It allows users to stay in the cars while supercharging multiple vehicles at the same time, making the charging experience more efficient and more convenient.

We remain committed to ongoing investments in research and development to further solidify our leading position in intelligence.

Speaker #5: We're also testing autonomous charging robots, aiming to redefine smart charging in the future. We remain committed to ongoing investments in research and development to further solidify Li Auto's leading position in intelligence.

We believe that intelligence is becoming an increasingly critical maybe even the most critical driver of users purchasing decision it.

It will also reshape automotive and mobility industry.

We expect our AI investments this year to exceed RMB 6 billion, which will be allocated to infrastructure infrastructure development as well as product and technology development.

Speaker #5: We believe that intelligence is becoming an increasingly critical, maybe even the most critical driver of users' purchasing decisions. It will also reshape the automotive and mobility industry.

On August 20, we officially rolled out our proprietary VLA large model driver.

Speaker #5: We expect our AI investments this year to exceed RMB 6 billion, which will be allocated to infrastructure development as well as product and technology development.

And these are osha agent with the delivery of the <unk>.

The industry industry first BLA architecture to be delivered in production vehicles.

Speaker #5: On August 20th, we officially rolled out our proprietary VLA large model driver and Li Xiang Hongxue, agent with the delivery of Li I8. As the industry's first VLA architecture to be delivered in production vehicles, the VLA driver large model is scheduled to be deployed on all Li 80 Max models via OTA updates by mid-September.

Tie Li: On August 20th, we officially rolled out our proprietary VLA4D large model driver and VCL host agent with the delivery of Li i8. As the industry's first VLA4D architecture to be delivered in production vehicles, the VLA4D driver large model is scheduled to be deployed on all the Li AD Max models via OTA updates by mid-September. The VLA4D driver large model integrates spatial and linguistic intelligence with behavioral strategy. It boasts enhanced capabilities in precise spatial perception, chain of thought reasoning and decision making, natural language interaction just like human drives, and routes with diffusion generation and optimal path selection. By adopting a technical architecture that more closely resembles human intelligence, the VLA4D driver large model significantly enhances user experience in areas such as defensive driving, smoothness and comfort, three-point turns, continuous task execution, and underground garage navigation.

OLED driver large model is scheduled to be deployed on all the <unk> models via OTA updates by mid September.

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Driver larger model integrates spatial and linguistic intelligence with behavioral strategy.

At both enhanced capabilities and precise spatial perception, China spot reasoning and decision, making natural language interaction just like human drivers and routes with diffusion generation and optimal path selection.

Speaker #5: The VLA large driver large model integrates spatial and linguistic intelligence with behavioral strategy. It boasts enhanced capabilities in precise spatial perception, chain of thought reasoning, and decision-making, natural language interaction just like human drivers, and route diffusion generation and optimal path selection.

By adopting a technical industry.

Architecture that more closely resembles human intelligence VLA driver large model significantly enhances user experience and in areas such as defensive driving smoothness comfort three three turns continuous task SKU execution and underground garage navigation.

Speaker #5: By adopting a technical architecture that more closely resembles human intelligence, the VLA driver large model significantly enhances user experience in areas such as defensive driving, smoothness, comfort, 3.0 turns, continuous task SQ, and underground garage navigation.

Furthermore, through ongoing in reinforcement learning it can become increasingly.

Understanding user preferences.

Meanwhile, our proprietary foundations model mine GPT powered vehicles.

Speaker #5: Furthermore, through ongoing reinforcement learning, it can become increasingly adept at understanding user preferences. Meanwhile, our proprietary foundation model, MindGPT-powered Li Xiang Hongxue, has evolved from a voice assistant into an intelligent agent.

Tie Li: Furthermore, through ongoing and reinforcement learning, it can become increasingly adept at understanding user preferences. Meanwhile, our proprietary foundation model, Mind GPT-powered Li SS Ultra, has evolved from a voice assistant into an intelligent agent. The agent's enhanced capabilities greatly expand the in-car service ecosystem. For example, it can act as a life assistant to connect with food delivery apps and pick up orders at restaurants, or activate vehicles' external cameras and make payments by scanning and paying fees at parking lots. Its memory capability not only increases the diversity of tools, but also makes Li SS Ultra more emotionally resonant and personalized. Going forward, we will continue to build our AI capabilities and harness our R&D achievements to continuously advance product iteration and evolution. With the vehicle as a platform, we're committed to bringing the physical and the digital world, extending the benefits of AI to every user.

Evolved from a voice assistant into an intelligent agent.

The agents enhanced capabilities greatly expand the in car service ecosystem. For example, it can act as a litho system to connect with food delivery apps and pickup orders at restaurants, where activate vehicles external camera and make payments by scanning and paying fees at parking lot.

Speaker #5: The agent's enhanced capabilities greatly expand the in-car service ecosystem. For example, it can act as a life assistant to connect with food delivery apps and pick up orders at restaurants, where it activates the vehicle's external cameras and makes payments by scanning and paying fees at parking lots.

As memory capability, not only increases the diversity of tools, but also makes vehicles more emotionally resonate personalized.

Going forward, we will continue to build our AI capabilities and harness our R&D achievements to continuously advance product iteration evolution with.

Speaker #5: Its memory capability not only increases the diversity of tools, but also makes Li Xiang and Hongxue more emotionally resonant and personalized. Going forward, we will continue to build our AI capabilities and harness our R&D achievements to continuously advance product iteration and evolution.

With a vehicle platform.

Committed to bringing the physical and the digital world extending the benefit.

Every user.

Beyond our R&D also focuses on our core areas such as electric drive technology and privacy Supercharging for instance, our proprietary drive motors, including key components like Silicon carbide power chips have significantly boosted vehicle energy efficiency and range.

Speaker #5: With the vehicle as a platform, we're committed to bringing the physical and the digital worlds together, extending the benefits of AI to every user. Beyond AI, our R&D also focuses on core areas such as electric drive technology and 5C supercharging.

Tie Li: Beyond AI, our R&D also focuses on core areas such as electric drive technology and 5C supercharging. For instance, our proprietary drive motors, including key components like silicon carbide power chips, have significantly boosted vehicle energy efficiency and range. Another key R&D focus is 5C batteries. We have developed in-house battery cells and a thermal management system that can better support ultra-fast charging and long driving range. The 5C battery can maintain a high charging power of over 300 kilowatts while it charges from 0 to 80% of SOC. Additionally, the battery lifespan is exceptional. Even after 1,500 full charge discharge cycles in supercharging mode, battery health remains above 80%, which is industry first. We will continue to leverage our in-house R&D advantages to further bolster product competitiveness and optimize production costs by developing key technologies in-house and manufacturing in-house or through joint ventures.

Another key R&D focus is 50 batteries, we have developed in house battery cell and the thermal management system that can better support ultra fast charging and long driving range.

Speaker #5: For instance, our proprietary drive motors, including key components like silicon carbide power chips, have significantly boosted vehicle energy efficiency and range. Another key R&D focus is 5C batteries.

The battery can maintain a high charging power of over 300 kilowatts, while the charters from zero to 80% of assets.

Speaker #5: We have developed in-house battery cells and a thermal management system that can better support ultra-fast charging and long driving range. The 5C battery can maintain a high charging power of over 300 kilowatts while it charges from 0 to 80 percent of state of charge (SOC).

Additionally, the battery lifespan exceptional even after 500 full charge discharge cycles and Supercharging about battery health remains above 8%, which is the industry first.

We will continue to leverage our in house R&D advantages to further bolster our product competitiveness and optimize production cost by developing key technologies in house and manufacturing.

Speaker #5: Additionally, the battery lifespan is exceptional. Even after 1,500 full-charge discharge cycles in supercharging mode, battery health remains above 80%, which is an industry first.

Or through joint ventures.

Speaker #5: We will continue to leverage our in-house R&D advantages to further bolster product competitiveness and optimize production costs by developing key technologies in-house and manufacturing in-house or through joint ventures.

Turning now to our sales and service network, a recent organizational restructuring it will empower us to build our store centric views our operation capability, which we believe will help boost sales conversion and improve how we communicate our brand and product.

Speaker #5: Turning now to our sales and servicing network, a recent organizational restructuring will empower us to build our store-centric user operation capability. We believe this will help boost sales conversion and improve how we communicate our brand and product value.

Tie Li: Turning now to our sales and service network, a recent organizational restructuring will empower us to build our store-centric user operation capability, which we believe will help boost sales conversion and improve how we communicate our brand and product value. Meanwhile, we will continue to define our network structure by expanding and upgrading coverage in major auto parts and shopping malls. We will gradually increase the number of stores in lower tier cities to reach more user cohorts. To better support our NEV launches, our store expansion schedule has been strategically front-loaded this year. As of now, we operate over 550 retail stores across more than 150 cities nationwide, with net additions of about 50 stores and 700 display spots since the end of last year. Throughout our journey, we have always believed in doing what we believe is right, even when it's difficult.

Meanwhile, we will continue to define our network structure by expanding and upgrading coverage in major autoparts and shopping mall, we will gradually increase in the number of stores in lower tier cities to reach more user cohorts to better support our fab launches our store expansion schedule has been strategic from Frontloaded. This year as of now.

Speaker #5: Meanwhile, we will continue to define our network structure by expanding and upgrading coverage in major auto parts and shopping malls. We will gradually increase the number of stores in lower-tier cities to reach more user cohorts.

Well, we operate over 550 retail stores across more than 150 cities nationwide with net additions of about 50 stores at 700, despite spot since the end of last year.

Speaker #5: To better support our bed launches, our store expansion schedule has been strategically front-loaded this year. As of now, we operate over 550 retail stores across more than 150 cities nationwide, with net additions of about 50 stores and 700 display spots since the end of last year.

Throughout our journey, we have always believed in doing what we believe is right even when it's difficult.

<unk> be one and the L series to Bath the background.

Our commitment to developing advanced technologies and better products remains unshaken Nomura, how much adversity, we face.

Speaker #5: Throughout our journey, we have always believed in doing what we believe is right, even when it's difficult. From EREBs, Li One, and the Li L series, to BEF, Li Mega, and Li I8, our commitment to developing advanced technology and better products remains unshaken.

Tie Li: From Li L series to Li MEGA and Li i8, our commitment to developing advanced technologies and better products remains unshaken, no matter how much adversity we face. This year, we've demonstrated progress in innovation with offerings like Li MEGA Home and Li i8. Looking ahead, we will remain devoted to creating superior NEVs while strengthening our brand. We'll continue to leverage technological innovation to lead industry transformation. Through our long-term persistent efforts, we will aim to provide our users with cutting-edge technology, extraordinary services, and meaningful companionship. I will now turn the call over to our CFO, Tie Li, to walk you through our financial performance.

This year will demonstrate were demonstrated with demonstrated progress and best innovation with offerings like the Mega one.

Lou.

Looking ahead, we will remain devoted to creating superior <unk> and bass, while strengthening our brand we will continue to leverage technological innovation to lead industry transformation.

Speaker #5: No matter how much adversity we face, this year we have demonstrated progress in BEF innovation with offerings like Li Mega Home and Li I8. Looking ahead, we will remain devoted to creating superior EREBs and BEFs while strengthening our brand.

Through our long term persistent efforts, we will aim to provide our users with cutting edge technology extraordinary services at meaningful companionship I will now turn the call over to our CFO joining to walk you through our financial performance.

Speaker #5: We'll continue to leverage technological innovation to lead industry transformation. Through our long-term persistent efforts, we will aim to provide our users with cutting-edge technology, extraordinary services, and meaningful companionship.

Thank you John Hello, everyone I will now walk you through.

Our second quarter financial performance.

Speaker #5: I will now turn the call over to our CFO, Johnny, to walk you through our financial performance.

Given current constrained my remarks today will be limited to some key financial results.

Speaker #6: Thank you, Xiang. Hello, everyone. I will now walk you through our second quarter financial performance. Given time constraints, my remarks today will be limited to some key financial results.

Johnny: Thank you, Xiang. Hello, everyone. I will now walk you through our second quarter financial performance. Given time constraints, my remarks today will be limited to some key financial results. All figures will be quoted in RMB unless otherwise stated. For further details, including the corresponding U.S. dollar amounts, we encourage you to refer to our earnings press release. Total revenue in the second quarter was RMB 30.2 billion, down 4.5% year over year, and up 16.7% quarter over quarter. This included RMB 28.9 billion from vehicle sales, down 4.7% year over year, and up 17% quarter over quarter. The year-over-year decrease was mainly due to lower average selling price caused by product mix changes, customer interest subsidy, and higher sales incentives, partially offset by increased vehicle delivery. The sequential increase was mainly due to the increase in vehicle delivery.

Figures will be quoted in RMB unless otherwise stated.

For further detail, including the corresponding dollar amount.

The car to refer to our earnings press release.

Speaker #6: All figures will be quoted in RMB unless otherwise stated. For further details, including the corresponding US dollar amounts, we encourage you to refer to our earnings press release.

Total revenue in the second quarter were RMB 71 2 billion.

Four 5% year over year.

The 15, 7% quarter over quarter.

This included RMB.

Speaker #6: Total revenue in the second quarter was R&B 30.2 billion, down 4.5% year-over-year and up 16.7% quarter-over-quarter. This included R&B 28.9 billion from vehicle sales.

Eight 9 billion from vehicle sales.

Four 7% year over year.

17% quarter over quarter.

The.

Year over year decrease was mainly due to lower average selling price.

Speaker #6: Down 4.7% year-over-year and up 17% quarter-over-quarter. The year-over-year decrease was mainly due to lower average selling prices caused by product mix changes, customer interest subsidies, and higher sales incentives.

Cost by product mix changes.

Customer interest subsidies.

Higher sales incentive.

Partially offset by increased vehicle deliveries.

The sequential increase was mainly due to the increase in vehicle delivery.

Cost of sales in the second quarter was RMB.

RMB 21, 2 billion down five 2% year over year.

Speaker #6: Partially offset by increased vehicle deliveries. The sequential increase was mainly due to the increase in vehicle deliveries. Cost of sales in the second quarter was R&B 24.2 billion, down 5.2% year-over-year and up 17.3% quarter-over-quarter.

17 partners III with that cultural culture.

Johnny: Cost of sales in the second quarter was RMB 24.2 billion, down 5.2% year over year, and up 17.3% quarter over quarter. Gross profit in the second quarter was RMB 6.1 billion, down 1.8% year over year, and up 14.1% quarter over quarter. Vehicle margin in the second quarter was 19.4% versus 18.7% in the same period last year and 19.8% in the prior quarter. The year-over-year increase was attributable to lower average cost of sales, mainly due to cost reduction, partially offset by lower average selling price caused by product mix changes, customer interest subsidies, and higher sales incentives. Vehicle margin remained relatively stable over the prior quarter. Gross margin in the second quarter was 20.1% versus 19.5% in the same period last year and 20.5% in the prior quarter.

Gross profit in the second quarter was RMB six 1 billion down one.

One 8% year over year.

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Speaker #6: Gross profit in the second quarter was R&B 6.1 billion, down 1.8% year-over-year but up 14.1% quarter-over-quarter. Vehicle margin in the second quarter was 19.4%, compared to 18.7% in the same period last year.

Vehicle margin in the <unk>.

Second quarter walk 19.

4% worth at 18, 7% in the same period last year, a 19, 8% in the prior quarter.

The year over year increase was attributable to lower average cost of sales.

Due to cost reduction, partially offset by lower average selling price product.

Speaker #6: And 19.8% in the prior quarter. The year-over-year increase was attributable to lower average cost of sales, mainly due to cost reduction, partially offset by lower average selling price.

By product mix changes.

Customer interest subsidy and higher <unk> expenses.

Vehicle margin remained relatively stable over the prior quarter.

Gross margin in the second quarter Walter.

Speaker #6: Caused by product mix changes, customer interest subsidies, and higher sales incentives. Vehicle margin remained relatively stable over the prior quarter. Gross margin in the second quarter was 20.1%, versus 19.5% in the same period last year.

Plus 1%.

19, 5% same period last year and 25% in the prior quarter.

Operating expenses in the second quarter was RMB.

$5 2 billion.

Eight 2% year over year.

Speaker #6: And 20.5% in the prior quarter. Operating expenses in the second quarter were R&B 5.2 billion, down 8.2% year-over-year and up 3.8% quarter-over-quarter. R&D expenses in the second quarter were R&B 2.8 billion, down 7.2% year-over-year and up 11.8% quarter-over-quarter.

Three 8% quarter over quarter.

Johnny: Operating expenses in the second quarter were RMB 5.2 billion, up 8.2% year over year, and up 3.8% quarter over quarter. R&D expenses in the second quarter were RMB 2.8 billion, down 7.2% year over year, and up 11.8% quarter over quarter. The year-over-year decrease was primarily due to decreased employee compensation. The sequential increase was mainly impacted by the pace of new vehicle programs and higher expenses to support our product portfolio expansion and technology advancement. FG&A expenses in the second quarter were RMB 2.7 billion, down 3.5% year over year, and up 7.4% quarter over quarter. The year-over-year decrease was primarily due to decreased employee compensation, partially offset by increased marketing and promotion activities. The sequential increase was mainly due to increased marketing and promotion activities. Income from operations in the second quarter was RMB 827 million, up 76.7% year over year, and 204.4% quarter over quarter.

R&D expenses in the second quarter were RMB two eight.

8 billion.

Tom.

Seven 2% year over year.

11.

8% quarter over quarter.

Over year decrease was primarily due to decreased employee.

Compensation.

The sequential increase was mainly impacted by the pace of new vehicle programs and the higher expenses to support our product portfolio expansion on technology advancement.

Speaker #6: The year-over-year decrease was primarily due to decreased employee compensation. The sequential increase was mainly impacted by the pace of new vehicle programs and higher expenses to support our product portfolio expansion and technology advancement.

Yes.

SG&A expenses in the second quarter were RMB.

<unk> 7 billion down <unk> five <unk>.

<unk> year over year.

Seven.

Focus on cultural culture.

Speaker #6: At C&A, expenses in the second quarter were R&B $2.7 billion, down 3.5% year-over-year and up 7.4% quarter-over-quarter. The year-over-year decrease was primarily due to decreased employee compensation.

So year over year decrease was primarily due to decreased employee compensation.

Partially offset by increased marketing and promotional activities.

The sequential increase was mainly due to increased marketing and promotion activities.

Sure.

Speaker #6: Partially offset by increased marketing and promotion activities. The sequential increase was mainly due to increased marketing and promotion activities. Income from operations in the second quarter was R&B 827 million, up 76.7% year-over-year.

Income from operations in the second quarter was RMB.

807.

<unk> million dollars.

Sure.

76 climbed 7% year over year.

And.

244, perfect cultural culture.

Operating margin in the second quarter was five 7% versus one 2% in the same.

Same period last year.

Speaker #6: And 204.4% quarter-over-quarter. Operating margin in the second quarter was 2.7%, versus 1.2% in the same period last year and 1% in the prior quarter.

<unk> is a credit culture.

Net income in the second quarter was RMB, one 1 billion.

Johnny: Operating margin in the second quarter was 2.7% versus 1.2% in the same period last year and 1% in the prior quarter. Net income in the second quarter was RMB 1.1 billion, down 0.4% year over year, and up 69.6% quarter over quarter. Diluted net earnings per ADS attributable to ordinary shareholders were RMB 1.03 in the second quarter versus RMB 1.05 in the same period last year and RMB 0.62 in the prior quarter. Now, turning to our balance sheet and cash flows, we maintain a robust cash position of RMB 106.9 billion as of June 30, 2025. Net cash used in operating activities in the second quarter was RMB 3 billion versus RMB 429.4 million in the same period last year and RMB 1.7 billion in the prior quarter.

0.4.

A percent year over year.

Thanks Pete.

96.

Speaker #6: Net income in the second quarter was R&B 1.1 billion, down 0.4% year-over-year and up 69.6% quarter-over-quarter. Diluted net earnings per ADS attributable to other ordinary shareholders were R&B 1.03 in the second quarter.

6% cultural culture.

Diluted net earnings per ads attributable to other ordinary shareholder.

RMB 1.0, III in the second quarter worth.

Worth is RMB one.

Zero five in the same period last year and the RMB.

<unk>.

Safe two in the prior quarter.

And now turning to our balance sheet and cash flow, we made a real robust cash because they saw RMB.

Speaker #6: Versus R&B 1.05 in the same period last year, and R&B 0.62 in the prior quarter. And now turning to our balance sheet and cash flow.

106 nine.

Not at all.

Sure.

<unk> 2020 by net cash used in operating activities in the second quarter was RMB 3 billion worth of RMB 429 pounds bulk meaning.

Speaker #6: We maintain a robust cash position of RMB 106.9 billion as of June 30th, 2025. Net cash used in operating activities in the second quarter was RMB 3 billion.

In the same period last year.

RMB, one 7 billion in the prior quarter.

Free cash flow was negative RMB.

Speaker #6: Versus R&B 229.4 million in the same period last year, and R&B 1.7 billion in the prior quarter. Free cash flow was negative R&B 3.8 billion.

Sorry.

Bill.

In the second quarter.

Worth it.

RMB one client.

Johnny: Free cash flow was negative RMB 3.8 billion in the second quarter versus negative RMB 1.9 billion in the same period last year and negative RMB 2.5 billion in the prior quarter. For our business outlook for the third quarter of 2025, the company expects the delivery to be between 90,000 and 95,000 vehicles, and the quarterly total revenues to be between RMB 24.8 billion and RMB 26.2 billion. This business outlook reflects the company's current and preliminary view on its business situation and the market condition, which is subject to change. That concludes our prepared remarks. I will now turn the call over to the operator to start our Q&A session. Thank you.

9 billion in the third.

Last year, a negative RMB, two 5 billion the profounder.

Speaker #6: In the second quarter, versus negative R&B $1.9 billion in the same period last year, and negative R&B $2.5 billion in the prior quarter. And now for our business outlook.

And now for our business outlook for the third quarter of 2020 by the Cognex pack the deliveries to be between.

98000.

And nicely.

<unk> thousand <unk>.

Vehicles and recovery total revenues to be between RMB.

Speaker #6: For the third quarter of 2025, the company expects the delivery to be between 90,000 and 95,000 vehicles, and quarterly total revenues to be between RMB 34.8 billion and RMB 26.2 billion.

But if all five 8 billion and RMB 26 2 billion.

This business outlook reflects the company's current and preliminary view always situations.

Situation on the market condition.

Which is subject to change that concludes our prepared remarks, I will now turn the call over to the operator to start our Q&A session. Thank you.

Speaker #6: This business outlook reflects the company's current and preliminary view on its business situation and the market condition, which is subject to change. That concludes our prepared remarks.

Thank you Kieran to ask a question. Please press star one on your telephone that might be or name to be announced.

Speaker #6: I will now turn the call over to the operator to start our Q&A session. Thank you.

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.

Speaker #2: Thank you. A few weeks to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two.

Operator: 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 speaker phone, please pick the handset to ask your question. For the benefit of all participants on today's call, please limit yourself to two questions. If you have additional questions, you can re-enter the queue. If you are a Mandarin speaker, please ask your questions in Chinese first, then follow with English translation. Your first question comes from Tina Howe from Goldman Sachs. Please go ahead.

For the benefit of all participants on today's call. Please limit yourself to two questions and if you have additional questions you can re enter the queue.

Speaker #2: 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, please limit yourself to two questions.

If you are in Mandarin Speaker. Please ask your questions in Chinese.

Taylor with English translation.

Your first question comes from Tina <unk> from Goldman Sachs. Please go ahead.

Speaker #2: And if you have additional questions, you can re-enter the queue. If you are a Mandarin speaker, please ask your questions in Chinese first, then follow with an English translation.

Good morning, Joe.

Lynn.

Sure Jim Michelle allowance on one July.

Speaker #2: Your first question comes from Tina Hao from Goldman Sachs. Please go ahead.

Hello, Tien Keisha, LCD Lasalle southpaw, so recently and Jackie.

You saw that on the mobile.

Speaker #7: 感谢管理层接受我的提问。我这边有两个问题。第一个是跟咱们销量相关的, 就我们看到今年其实L系列的销量还是有下滑, 所以想问一下今年咱们整体销量的目标, 啊, 将如何达成? 嗯, 那管理层, 啊, 计划如何通过从产品营销, 还有渠道等方面的调整来实现这个目标? 然后第二个问题是关于咱们的芯片自研芯片, 能不能请管理层介绍一下最新的一些进展? 啊, thanks for taking my question. I have two questions. The first one is regarding our sales volume because this year we've seen the L series, their sales volume has been declining, so how does management plan to achieve our full-year target through, product marketing as well as channel strategies going forward?

Tina Howe: 感谢管理层接受我的提问。我这边有两个问题, 第一个是跟咱们销量相关的, 就我们看到今年其实L系列的销量还是有下滑, 所以想问一下今年咱们整体销量的目标啊, 将如何达成? 那管理层啊, 计划如何通过从产品、营销还有渠道等方面的调整来实现这个目标? 然后第二个问题是关于咱们的自研芯片, 能不能请管理层介绍一下最新的一些进展? Thanks for taking my question. I have two questions. The first one is regarding our sales volume because this year we've seen the L series, their sales volume has been declining. How does management plan to achieve our full-year target through product marketing as well as channel strategies going forward? The second question is regarding our self-developed chips. Can management give us some update on this front? Thanks.

John Russo.

Now when it comes to clinical.

Tom champion in Iot.

Gently shandra moved out.

<unk>.

Thank you Kim.

Jim Lynch Glen Charles.

So it seemed like just in general.

Thanks for taking my question I have two questions. The first one is regarding our sales volume because this year, we're seeing the L series their sales volume has been declining so how does management plan to achieve our full year target through <unk>.

Marketing as well as channel strategies going forward and then the second question is.

Regarding our self developed.

Chips can management give us some update on this front. Thanks.

Speaker #7: And then the second question is, regarding our self-developed, developed chips. can management, give us some update on this front? Thanks.

Oh sure I don't believe we'll update at <unk>.

So that will be done.

No.

Thompson's <unk> transition.

Parallel to Hudson dentition.

Speaker #6: Oh, sure, 马东辉, 我来回答第一个问题。关于的话, 销量呢, 大家都比较关注。那我们在, 呃, 产品侧的话, 大家也都知道, 我们有增程车型。还有的话, 纯电车型。那对于增程车型的话, 我们会以智能来巩固的话, 这个基本盘。那理想的话, 作为增程技术的引领者, 我们将核心通过智能辅助驾驶的深度换新来强化产品的竞争力。那九月份的话, 我们增程全系AD Max的车型将会升级VLA, 智能辅助驾驶。那目前的话, VLA, 啊, Preview版本的话, 已经随着理想的I8, 啊, 开始交付的话, 用户。并且驾驶性能提升是非常显著的。如果是做个类比的话, 那好比的话, ChatGPT 4.0相比的话, 3.5的一个代理突破, 并且的话, 新版的模型参数, 啊, 规模将达到40亿。较之前的端到端模型的话, 提升超过十倍。相当于脑容量大幅的扩容。那直接的话, 带来两个核心体验的升级。那在行车端的话, 平顺性和舒适性是显著优化的。然后我们用户的话, 反馈已经很难区分是辅助驾驶还是人类驾驶。那在泊车端的话, VLA的远程召唤和VLA的自动泊车功能也收获了高度的认可。既可以解决用户实际用车的痛点, 也能够获得更好的使用体验。从行业视角来看的话, VLA架构高度的体系和人类智能进化的逻辑, 啊, 并且现在更多的同行认可也加入了VLA的研发阵营。那接下来的话, 辅助驾驶的竞争核心是迭代数种, 而关键的话是在于强化学习。那理想汽车的话, 已经搭建并且启用了直程强化学习的仿真环境。核心的话是依托事件模型来实现场景和数据的重建和生成。那后续的话, 将通过这一体系来推动VLA模型快速的迭代, 保持行业的领先。那在纯电车型方面的话, 今年理想的纯电产品线将形成T次发力的格局, 打开新的增长空间。那理想Mega越销, 啊, 已经稳定在3000台以上, 持续贡献纯电销量的基本盘。那理想I8上市后, 电钻的市价反馈很好。那目前的话, 正在推进产能的爬坡。力争在九月底累计交付8000到10000台。那九月份的话, 我们将发布理想I6, 那I6的设计, 啊, 很好看, 开起来的话既舒适又运动, 空间体验也很好。精准的匹配年轻用户的需求, 有望成为纯电的走量主力。 呃, translating for Ms. Ma here.

Donghui Ma: 我是马东辉, 我来回答第一个问题。关于的话销量呢, 大家都比较关注。那我们在产品侧的话, 大家也都知道我们有增程车型, 还有的话纯电车型。那对于增程车型的话, 我们会以智能来巩固的话这个基本盘。那理想的话作为增程技术的引领者, 我们将核心通过智能辅助驾驶的深度贯新来强化产品的竞争力。那9月份的话, 我们增程全系AD Max的车型将会升级VLA智能辅助驾驶。那目前的话VLA Preview版本的话已经随着理想的i8开始交付的话用户, 并且驾驶性能提升是非常显著的。如果是做个类比的话, 那好比的话Chat GDP 4.0相比的话3.5的一个代币突破, 并且的话新版的模型参数规模将达到41。较之前的端到端模型的话提升超过10倍, 相当于脑容量大幅的扩容。那直接的话带来两个核心体验的升级。那在行车端的话, 平顺性和舒适性是显著优化的, 然后我们用户的话反馈已经很难区分是辅助驾驶还是人类驾驶。那在泊车端的话, VLA的远程召唤和VLA的自动泊车功能也收获了高度的认可, 既可以解决用户实际用车的痛点, 也能够获得更好的使用体验。从行业视角来看的话, VLA架构高度的契合人类智能进化的逻辑, 并且现在更多的同行认可也加入了VLA的研发阵营。那接下来的话, 辅助驾驶的竞争核心是迭代数种, 然后关键的话是在于强化学习。那理想汽车的话已经搭建并且启用了支撑强化学习的仿真环境, 核心的话是依托世界模型来实现场景和数据的重建和生成。那后续的话将通过这一体系来推动VLA模型快速的迭代, 保持行业的领先。那在纯电车型方面的话, 今年理想的纯电产品线将形成梯次发力的格局, 打开新的增长空间。那理想MEGA月销已经稳定在3,000台以上, 持续贡献纯电销量的基本盘。那理想i8上市后电钻的试驾反馈很好, 那目前的话正在推进产能的爬坡, 力争在9月底累计交付8,000到1万台。那9月份的话我们将发布理想i6, 那i6的设计很好看, 开起来的话既舒适又运动, 空间体验也很好, 精准的匹配年轻用户的需求, 有望成为纯电的走量主力。

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<unk>.

Translating for Vincent market.

Our focus there has been a big focus on sales recently.

Because of our products and systems.

<unk>, So I will answer this question.

From two perspectives first of all on the EV front, we will solidify our market position through intelligence.

Tie Li: Translating for this mock here, focus there has been a big focus on sales recently, and you talk about product to assist the BEVs and EREVs. I will answer this question from two perspectives. First of all, on the EREV front, we will solidify our market position through intelligence. As a leader in range extended technology, we're enhancing product competitiveness through major upgrades in assisted driving. Starting in September, all Max models across our EREV lineup will receive the VLA assisted driving system. We delivered the VLA preview version to users alongside VLA delivery. The performance improvement that VLA brings can be compared to the improvements from ChatGPT 3.5 to 4.0. The VLA driver large model has 4 billion parameters, over 10 times higher compared to our previous end-to-end model. This is analogous to an increase in brain capacity. This has significantly improved experiences in two core areas.

Speaker #6: Focus. There has been a big focus on sales recently, and because our product consists of BEF and EREBs, I will answer this question from two perspectives.

As the leader in range extended technology, we're enhancing product competitiveness through major upgrades and assisted driving starting of September all eight macs models across our <unk> lineup.

Speaker #6: First of all, on the EREB front, we will solidify our market position through intelligence. As a leader in range-extended technology, we're enhancing product competitiveness through major upgrades in assistive driving.

<unk> the BLA assisted driving system, we delivered the BLA preview version two users alongside BLA delivered the performance improvement that BLA brings can be compared to.

Speaker #6: Starting in September, all Li 80 Max models across our EREB lineup will be, will receive the VLA assistive driving system. We delivered the VLA preview version to users alongside VLA delivery.

Improvement from <unk>, three five to four point out the BLA driver large motto has four building parameters over 10 times higher compared to our previous end to end model. This is analogous to a increase in brewing capacity.

Speaker #6: The performance improvement that VLA brings can be compared to the improvement from ChatGPT 3.5 to 4.0. The VLA driver large model has 4 billion parameters, over 10 times higher compared to our previous end-to-end model.

Significantly improved experiences in two core areas and.

And daily driving and deliver substantially improved smoothness comfort. Many users comment now very difficult to tell apart, whether it's a car driving a tougher the human driver.

Speaker #6: This is analogous to an increase in brain capacity. This has significantly improved experiences in two core areas. In daily driving, it delivers substantially improved smoothness and comfort. Many users comment that it is now very difficult to tell apart whether it's the car driving itself or a human driving.

In addition in terms of parking users have praised our newly introduced <unk> some of the function and parking functions as it actually is.

Tie Li: In daily driving, it delivers substantially improved smoothness and comfort. Many users comment that it's now very difficult to tell apart whether it's the car driving itself or the human driving. In addition, in terms of parking, users have praised our newly introduced VLA summon function and parking functions as it actually addresses pain points while at the same time giving them better experience. From the industry perspective, we believe the VLA architecture is going to be highly aligned with human intelligence evolution. We're seeing more and more industry participants recognize and join the VLA camp. We believe that future competition of assisted driving will hinge on iteration speed, for which reinforcement learning is the key. The simulation environment required for reinforcement learning has been built and is now operational.

Dresses pinpoint while at the same time, giving them a better experience.

Speaker #6: In addition, in terms of parking, users have praised our newly introduced VLA summon function and parking functions as it actually addresses pain points while at the same time giving them better experience.

From an industry perspective, we believe the BLA architecture is going to be a highly align with human intelligence evolution, we're seeing more and more industry participants recognized enjoying the BLA account, we believe that future competition assisted driving will hinge on iteration speed for which reinforcement learning is the key.

Speaker #6: From the industry perspective, we believe the VLA architecture is going to be highly aligned with human intelligence evolution. We're seeing more and more industry participants recognize and join the VLA camp. We believe that future competition in assistive driving will hinge on iteration speed, for which reinforcement learning is the key.

The simulation environment required for <unk>.

Enforcement learning has been built and is now operational the core technology behind this if the world model, which is used to reconstruct and generate the scenarios of data required.

Speaker #6: The simulation environment required for reinforcement learning has been built and is now operational. The core technology behind this is the world model which is used to reconstruct and generate the scenarios and data required for reinforcement learning.

Reinforcement learning moving forward, we will leverage this system to rapidly iterate the BLA model, so as to maintain its industry leading position.

Tie Li: The core technology behind this is the world model, which is used to reconstruct and generate the scenarios and data required for reinforcement learning. Moving forward, we will leverage this system to rapidly iterate the VLA model so as to maintain its industry-leading position. That's for EREVs. On the BEV front, this year, our lineup with business will be released over time through two major models gradually opening up new growth opportunities. Li MEGA has steadily achieved monthly sales of over 3,000 units, stabilizing our BEV sales foundation. Since its launch, our Li i8 has received very positive feedback from test drives. We're now ramping up production capacity and striving to deliver between 8,000 to 10,000 units cumulatively by the end of September. In September, we will launch Li i6. The model has a very attractive design. It drives very well.

That effort.

Sorry views on the best products. This year, our lineup with governments will be released over time through two major models gradually open up opening up new growth opportunities Lee Mega has steadily achieved monthly sales of over 3000 units.

Speaker #6: Moving forward, we will leverage this system to rapidly iterate the VLA model, so as to maintain its industry-leading position. That's for EREBs. On the BEF front, this year our lineup will demon will be, released over time, through two major models, gradually opening up new growth opportunities.

Outlining our best sales Foundation.

Since its launch <unk> has received very positive feedback from past drops we're now ramping up production capacity and are striving to deliver between eight to 10000 units cumulatively by the end of September.

Speaker #6: Li Mega has steadily achieved monthly sales of over 3,000 units, stabilizing our BEF sales foundation. Since its launch, our Li I8 has received very positive feedback from test drives.

In September we will launch the <unk>.

The model has very attractive design and drive very well at balances comfort and support in us.

Speaker #6: We're now ramping up production capacity and striving to deliver between 8,000 and 10,000 units cumulatively by the end of September. In September, we will launch the Li I6.

Excellent space experience and precisely it meets the needs of younger consumers and have the potential to become a sales driver.

Speaker #6: The model has very attractive design. It drives very well, it balances comfort and sportiness, and has excellent space experience. It precisely meets the needs of younger consumers and has the potential to become our sales driver in the BEF segment.

Segment.

They are ahead of us.

Tie Li: It balances comfort and sportiness and has excellent space experience. It precisely meets the needs of younger consumers and has the potential to become our sales driver in the BEV segment.

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Speaker #6: The second的话, 是在营销端, 我们强调的话, 去把然后根据, 啊, 不同区域的话, 市场竞争, 精准来制定的话政策。啊, 消费体系, 啊, 已经调整为总部只管23个区域。核心逻辑就是因地制宜, 然后定政策。北方区域聚焦增程车型的推广, 重点传递; 冬季续航里程稳定等优势。那南方区域的话, 侧重纯电车型, 强化节能空间, 智能的卖点。贴合当地的用户, 消费的偏好。还有我们会加大营销, 打破九乡不怕巷子深。核心做头数字化运营, 通过搭建精细化的数字化的营销平台, 对客群定位、线索获取、商机转化等全链条进行最终优化。精准判断向下营销的投入方向以及投入资金的有效性。那在渠道端, 我们会针对一二三线城市, 优化门店的组合, 提升获客和转化。核心是做纯量的门店优化。调整门店选址, 对于位置不佳、客流量不足的门店及时迁移, 确保门店的触达效率。同时我们会平衡门店的类型、梳理, 商场店和中心店的数量比例, 利用商场店高获客的优势吸引客流。依托中心店高转化的能力去承接需求, 形成获客转化的一个闭环, 提升线下的运营效率。另外我们会加快第一线城市的覆盖, 采用繁星店的轻量化模式, 发掘增量。那相比传统门店, 繁星店的投资更少, 开店的周期更短, 能够快速的话进入四五线城市的核心场景。通过增加门店的密度, 提升品牌的曝光度, 充分挖掘下沉市场的潜力, 为整体销量增加注入新动能。 On On the marketing front, will we adopting tailored strategies for different markets?

Donghui Ma: into core scenarios in fourth and fifth-tier cities. By increasing store density, we enhance brand exposure and fully tap the potential of lower-tier markets, providing additional momentum for overall sales growth.

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On the marketing front, we'll be adopting tailored strategies for different market. Our sales servicing system is now built around one headquarter and 23 provincial regions with a core principle being localization with strategies tailored strategies tailored to local market.

Tie Li: On the marketing front, we'll be adopting tailored strategies for different markets. Our sales servicing system is now built around one headquarter and 23 provincial regions, with the core principle being localization with strategies tailored to local markets. For example, in the northern region, we will be focusing on promoting EREB models because of their advantages in range and performance in winter. In southern regions, we're prioritizing BEPS models, highlighting sales selling points like energy efficiency, spacious interior, and smart features, aligning closely with the local consumer preferences. We'll increase marketing investments, moving away from our previous assumption of great products will sell themselves. We'll fully embrace digital operations, building a sophisticated digital marketing platform to track and optimize the entire consumer journey from audience targeting and lead generation to opportunity conversion. This enables precise decision making on online marketing investments and significantly improving campaign effectiveness.

Speaker #6: Our sales servicing system is now built around one headquarters and 23 provincial regions, with the core principle being localization, tailoring strategies to local markets.

For example in the northern region, we will be focusing on promoting <unk> models because of their range.

There.

Advantages and range and performance in winter and southern regions, we're prioritizing that model highlighting several points like energy efficiency spacious interior and smart features aligning closely with the local consumer preferences.

Speaker #6: For example, in the northern region, we will be focusing on promoting EREB models. Because of their range of their, their, advantages in range, and performance in winter.

We will increase marketing investment moving away from our previous assumption of great products will sell themselves more fully embrace digital operations building, a sophisticated digital marketing platform and to track and optimize the entire consumer journey from audience targeting and regeneration to opportunity conversion. This.

Speaker #6: And in southern regions, we're prioritizing BEF models, highlighting sale, sale, selling points like energy efficiency, spacious interior, and smart features. Aligning closely with the local consumer preferences.

Speaker #6: We'll increase marketing investments, moving away from our previous assumption of great products will sell themselves. We'll fully embrace digital operations, building a sophisticated digital marketing platform, and to track and optimize the entire consumer journey.

It enables precision.

Precise decision, making.

On online marketing investments and significantly improving campaign effectiveness.

Speaker #6: From audience targeting and lead generation to opportunity conversion, this enables precision decision-making on online marketing investments and significantly improves campaign effectiveness. On the channel side, for tier one, tier two, and tier three cities, we're optimizing our store portfolio to improve consumer acquisition and conversion, with a core focus on optimizing existing resources.

On the channel side for tier one tier two and tier three cities for optimizing our store portfolio to improve consumer acquisition and conversion or the <unk>.

Core focus on optimizing existing resources.

We will optimize the store locations for <unk>.

Tie Li: On the channel side, for tier one, tier two, and tier three cities, we're optimizing our store portfolio to improve consumer acquisition and conversion with a core focus on optimizing existing resources. We'll optimize store locations. We're proactively relocating stores in suboptimal positions for lower traffic areas to ensure higher consumer reach and operational efficiency. Meanwhile, we'll balance store mix. We're refining the ratio between mall-based stores and central stores in auto parts, leveraging mall store strengths in high consumer traffic areas to attract visitors, while utilizing central store's high conversion capability to close sales, creating a seamless acquisition to conversion loop and enhancing overall operational efficiency. To accelerate our coverage in lower tier cities, we're adopting a lightweight model called Star Plant to deploy stores to unlock new growth potentials.

Actively relocating stores and suboptimal positions for lower or lower traffic areas to ensure higher consumer reach and operational efficiency.

Speaker #6: We'll optimize store locations, where proactively relocating stores in suboptimal positions for lower or lower traffic areas to ensure higher consumer reach and operational efficiency.

While well.

Balanced store mix.

Finding the ratio between mall based stores in central stores, Autopart, leveraging mall store strings and high consumer traffic.

To attract visitors are utilizing central Florida high conversion capability to close sales, creating a seamless acquisition to conversion.

Speaker #6: Meanwhile, we'll balance store mix, where refining the ratio between mall-based stores and central stores in auto parts. Leveraging mall stores' strengths in high consumer traffic areas to attract visitors, while utilizing central stores' high conversion capability to close sales.

Enhancing overall offline operational efficiency.

To accelerate our coverage in lower tier cities, we're adopting and might we model called star plan to deploy stores.

Speaker #6: Creating a seamless acquisition-to-conversion loop and enhancing overall offline operational efficiency. To accelerate our coverage in lower-tier cities, we're adopting a lightweight model called Star Plan to deploy stores and unlock new growth potentials.

Lots of new growth potential.

Parents to traditional stores. These starplex stores require lower investments in our shorter cycle, enabling.

Rapid development in core locations within for tier four and tier properties.

Speaker #6: Compared to traditional stores, these Star Plan stores require lower investments and have a shorter setup cycle, enabling rapid development in core locations within tier four and tier five cities.

Tie Li: Compared to traditional stores, these Star Plant stores require lower investments and have a shorter setup cycle, enabling rapid development in core locations within tier four and tier five cities. By increasing store density, we'll boost brand visibility and fully tap into the potential of lower tier markets and inject fresh momentum into our overall sales growth.

By increasing store density.

Bruce brand visibility and fully tap into the potential for lower tier markets and inject fresh momentum into our overall sales growth.

This is Jim let me share some information about our in home design chip.

Speaker #6: By increasing store density, we'll boost brand visibility and fully tap into the potential of lower tier markets and inject fresh momentum into our overall sales growth.

The chip successfully taped out and it returned to answer the beginning of this year and it is currently ongoing in vehicle testing and everything is in good shape.

Speaker #8: This is Ian. Let me share some information about our in-house design chip. The chip is successfully tapered out and returned at the beginning of this year.

Yanchi Wang: This is Yanchi Wang. Let me share some information about our in-house design chip. The chip is successfully taped out and returned at the beginning of this year, and it is currently undergoing in-vehicle testing, and everything is in good shape. We expect to deploy it on our flagship models and deliver it to users next year. It takes about three years from setting up the project to its shipment. As far as I know, it is the fastest among similar efforts. The performance is quite satisfactory. Compared to the most powerful chips on the market, it could provide 2x performance when running GPT-like large language models and 3x when running vision models like CNNs. We designed a novel data flow architecture in which model computation is mostly driven by data, not instructions like other architectures.

Better to deploy it on our flagship models and deliver it to users next year.

It takes about three years from setting up of the projects.

Speaker #8: And it is currently undergoing in-vehicle testing and everything is in good shape. We expect to deploy it on normal flagship models and deliver it to users next year.

And so shipment as far as alone.

It is the fastest among similar efforts.

The performance is quite satisfactory.

Speaker #8: It takes about three years from setting up the project to its shipment. As far as I know, it is the fastest among similar efforts.

Compared to the most powerful chips on the market it could provide to <unk> performance we're running.

GBT like large sandwich launch of LNG models, and three X when running a vision models like CN.

Speaker #8: The performance is quite satisfactory. Compared to the most powerful chips on the market, it could provide 2X performance when running GPT-like large language, large language models, and 3X when running a vision models like CNNs.

We design a novel data flow architecture.

<unk>.

Mato competition is mostly driven by data not instructions like other architectures.

And in this way that chip could achieve higher Harrison entered the runtime.

Speaker #8: We designed a novel data flow architecture in which model computation is mostly driven by data, not instructions like other architectures. In this way, the chip could achieve higher parallelism at runtime.

And we believe it is more suitable for large newer networks.

The data driven logic is are castrated by our in house design pilot.

Yanchi Wang: In this way, the chip could achieve higher parity at the runtime, and we believe it is more suitable for large neural networks. The data-driven logic is orchestrated by our in-house design compiler, allowing the hardware to be more efficient and running at a higher frequency than most comparables in the market. Quite different from other AI chips on the market, we adopted a true full-stack hardware-software co-design approach. The chip, the compiler, the runtime system, and the Halo operating system are designed together from the beginning. We can vertically integrate these hardware and software modules to a more powerful AI inference system more easily, and it could keep on scaling in the future.

Allowing the hardware to be more efficient and are running at a higher frequency than <unk>.

Speaker #8: And we believe it is more suitable for large neural networks. The data-driven logic is orchestrated by our in-house design compiler, allowing the hardware to be more efficient and run at a higher frequency than most comparables in the market.

Most of the Comparables in the market.

Quite different from other AI chips on the market, we adopted a truly a true hardware software co design approach, the chip compiler and runtime system and the Halo operating system.

Speaker #8: Quite different from other AI chips on the market, we adopted a truly hardware-software co-design approach. The chip compiler, the runtime system, and the Halo operating system are designed together from the beginning.

Designer together front, beginning so we can vertically integrate hardware and software.

Modules to a more powerful AI inference system, and a more easily and it could keep on scaling in the future.

With the landing of re already models.

Speaker #8: So we can vertically integrate these hardware and software modules into a more powerful AI inference system, and more easily. And it could keep on scaling in the future.

<unk>, we observed that computing power increase could translate to Adas performance increased better than before.

Which means higher the computing power the better the performance.

Speaker #8: With the landing of VRA models, on vehicles, we observed that computing power increase could translate to aided performance increase better than before. Which means higher the computing power, the better the performance.

Yanchi Wang: With the landing of VLA4D models on vehicles, we observed that computing power increase could translate to ADAS performance increase better than before, which means the higher the computing power, the better the performance, and it is more predictable. We have very strong confidence our innovative architecture, as well as the full-stack development capability, could become our continuous differentiated capabilities and grow even stronger in the future. Thank you.

And then it's more predictable.

We have.

Very strong confidence our innovative architecture as well as the full stack development capability could it become our continuous different shaded capabilities and to grow even stronger in the future.

Speaker #8: And it is more predictable. We have very strong confidence that our innovative architecture, as well as our full-stack development capability, could become our continuous differentiated capabilities and grow even stronger in the future.

Thank you.

Thank you. Your next question comes from Tim <unk> from Morgan Stanley. Please go ahead.

Suddenly Hall will tell you the team.

Speaker #8: Thank you.

Thanks Stuart.

Speaker #2: Thank you. Your next question comes from Tim Hizial from Morgan Stanley. Please go ahead.

Glenn T <unk>.

Tim Hsiao: Thank you. Your next question comes from Tim Hsiao from Morgan Stanley. Please go ahead.

7070 <unk>.

Dan.

Speaker #8: Please So my first question is about the adjustment to the sales system. Was the current progress of the adjustment to the auto sales system with the comment on the rationale behind?

Donghui Ma: 管理层你好, 我是 Morgan Stanley 的 Tim, 感谢这次我的提问。我有两个问题, 第一个问题呢是有关于理想的销售体系的一个变革。想跟管理层请教一下目前我们销售体系的调整进展背后的思考和原因, 以及我们接下来预期的一个效果。那另外在看到成效之前, 这样的一个调整是否会影响到短期的销量和新车上市的节奏? My first question is about the adjustment to the sales system. What's the current progress of the adjustment to the auto sales system? Could you comment on the rationale behind the adjustment and the result you expect to achieve? In the meantime, could these changes adversely affect short-term sales performances and the pace of the new model launches? That's my first question. Thank you. 我是马东辉, 我来回答第一个问题。理想的销售体系8月份做了优化, 优化之后的话是总部销售, 然后只管23个区域, 并且新增了消费运营和市场营销两个部门, 重组了门店的选址团队, 强化了培训学院, 也强化了交付团队。那目前呢, 新的架构已经调整完毕, 已经进入了正常的运转阶段。那为什么调, 我们的背后思考是这样的, 那销售体系。一遍的来调整啊,

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So my first question is about.

<unk> sales assistant whats the current progress of DHS them into the auto assistant.

On the rationale behind.

Jasmine and to reach out and we expect to achieve.

In the meantime, there's changes.

Adversely affect short term sales performances in the pace of new model launches. That's my first question. Thank you.

Speaker #8: The adjustment and the result you expect to achieve? In the meantime, could these changes adversely affect short-term sales performances and the pace of the new model launches?

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The automotive is in trying to either send official push loser dream T&D the mobile.

Xiang Li: 10,000-unit mark. Next, in September, Li Auto's Li i6 will also debut as scheduled. The sales system reform is providing stronger support for new vehicle launches, optimizing sales and service processes, improving the consumer car-buying experience, ensuring smooth new vehicle launches, and achieving rapid sales growth. Thank you.

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I'll translate for Mr. Now here in <unk>.

<unk>, we went through a major reorganization of our sales team.

Now currently the headquarter directly managers.

323 regions.

We also established new departments for sales and service operations and marketing.

Janet Chang: kind of a pleasure to introduce him out here. In August, we went through a major reorganization of our sales team. Now, currently the headquarters directly manages 30,223 regions, and we also established new departments for sales and service operations and marketing. We've also restructured the store site selection team, strengthening our training academy and enhanced our vehicle delivery teams. The new organizational structure is now fully operational and operating smoothly. In driving the sales system transformation, we adopted a four-step approach in internal methodology. Frontline experts clearly are identified as the key stakeholders. We focused on addressing three core needs of the frontline experts while aligning with the company's goal of delivering the best direct sales store experience. The first need we're trying to address is to ensure the frontline experts earn a competitive income.

We've also restructured store site selection team strengthening our strengthened our training Academy and enhanced our vehicle delivery teams.

New organizational structure is now fully operational and operating skills.

And driving with sale system transformation, we adopted a four step approach internal method methodology.

Frontline experts clearly identified as the key stakeholders.

<unk> focused on addressing three core needs up there.

Frontline experts.

While aligning with the companies call us to delivering the best direct sales store experience.

So the first thing we're trying to address is to ensure that frontline expertise earned and competitive income.

The income of frontline sales experts.

We are directly hinged upon two things our order volume and sales.

We have established a dedicated marketing department to generate more on the online needs and restructured the site selection team to boost offline to traffic to stores.

Janet Chang: The income of frontline sales experts is directly hinged upon two things: order volume and sales needs. We have established a dedicated marketing department to generate more online needs and restructured the site selection team to boost offline foot traffic to stores. We now give authority for sales strategy development during non-peak periods. We've also strengthened the training academy, equipping our experts with high-quality product messages and materials and tools to improve order conversion rates. Second, we will provide them with growth opportunities. We've built a dual-track career advancement path for frontline staff, offering both specialist and managerial tracks. We've launched targeted training programs for store managers, clearly defining long-term career pathways. This enhances team stability and strengthens frontline execution capability. Thirdly, we will enhance efficiency. We've reduced reporting layers and adopted a flatter and faster decision-making structure.

We now give authority for sales strategy development during non peak periods. We've also strengthened the training Academy equipping our experts with high quality product message and materials and tools to improve order conversion rates.

Second we will provide them with growth opportunities we have.

Built a dual track career advancement path for phone lifestyle offering both specialists and managerial trucks, we've launched targeted training programs for store managers, clearly defining long term career pathways.

This enhances team stability at strengthens frontline execution capability.

And thirdly, we will enhance efficiency.

Reduced reporting layers and dock and adopted a flatter faster decision, making structure now feedback channel dedicated quality and operations teams have been established.

This enhances team stability at strengthens frontline execution capability.

We are in front of our concerns are addressed.

And thirdly, we will enhance efficiency, we've reduced reporting layers and dock and adopted a flatter faster decision, making structure now feedback channel dedicated quality and operations teams, having established insurer in frontline concerns aren't hurt our dress knowledge and active.

Address acknowledged and acted upon.

This leverages, our direct sales model to quickly resolve on the ground challenges.

Janet Chang: Now, feedback channels and dedicated quality and operations teams have been established, ensuring frontline concerns are heard, addressed, acknowledged, and acted upon. This leverages our direct sales model to quickly resolve on-the-ground challenges. The sales system transformation is not a reactive adjustment, but it's a proactive strategic move to better align with frontline needs and further strengthen our direct sales advantage. While there may be some short-term adaptations, in the long run, it will continuously enhance both user experience and team effectiveness. Regarding new vehicle launches, our timeline remains unchanged, and the support is now even stronger. Li i8 was successfully launched at the end of July, with deliveries beginning on August 20th. Our production facilities are currently operating at full capacity. By the end of September, we expect to cumulatively deliver over 8,000 units of Li i8 and are aiming to challenge the 10,000 unit mark.

The sale system transformation is not a real active and adjustments, but as a proactive strategic move to better align with frontline needs and further strengthened our direct sales of advantage. While there may be some short term adapt patients in the long run it will continuously enhance both user experience and team effectiveness.

This leverages, our direct sales model to quickly resolve on the ground challenges.

The sale system transformation is not a real active in the adjustment, but as a proactive strategic move to better align with frontline needs and further strengthened our direct sales advantage.

Yes.

Regarding new vehicle launches, our timeline remains unchanged and the support is now even stronger.

While there may be some short term adapt patients in the long run it will continuously enhance both user experience and team effectiveness.

Liana as new models rollout is progressing strictly according to our established partner roadmap VII was successfully launched at the end of July with deliveries beginning on August 20th.

Regarding new vehicle launches, our timeline remains unchanged and to support is now even stronger.

Our production facilities are currently operating at full capacity by the end of September we expect to cumulatively delivered over 8000 units.

The honest new models rollout Pittsburgh, we're asking strictly according to our established partner roadmap VII aid was successfully launched at the end of July with deliveries beginning on August 20th.

Good.

And aiming to challenge a 10000 unit Mark.

Our production facilities are currently operating at full capacity by the end of September we expect to cumulatively deliver over 8000 units.

Looking ahead, we are.

Six will also launch as scheduled in September.

Sales system transformation is designed to provide stronger support for these new launches optimizing sales and service.

Right.

And aiming to challenge a 10000 unit Mark.

Assesses elevating the consumer purchase experience and ensuring smooth new model launches and driving rapid sales growth. Thank you.

Janet Chang: Looking ahead, Li i6 will also launch as scheduled in September. The sales system transformation is designed to provide stronger support for these new launches, optimizing sales and service processes, elevating the consumer purchase experience, and ensuring smooth new model launches in driving rapid sales growth. Thank you.

Looking ahead, we are.

Six will also launch as scheduled in September the <unk>.

Sales system transformation is designed to provide stronger support for these new launches optimizing sales and service.

Thank you. Your next question comes from Ian <unk> from Citi. Please go ahead.

Assesses elevating the consumer purchase experience and ensuring smooth newest model launches and driving rapid sales growth. Thank you.

Thank you Glenn.

Cohen.

Okay.

Thank you Cynthia.

Darcy: Thank you. Your next question comes from Yingbo Zhu from Citic. Please go ahead.

Thank you. Your next question comes from Ian <unk> from Citi.

Thank you Bill Clinton Township.

Thank you Joe.

Thank you Jason.

Uh huh.

Okay.

Okay great.

Donghui Ma: 好的, 感谢管理层。我有两个问题。那第一个呢, 就是I8上市以后呢, 其实它对这个配置有这个调整和精简。那么后续呢, 公司的这个产品的这个和SKU的这个思路是不是也有一些变化和调整? 那第二个呢, 就是怎么看待我们这个三季度的这个销量指引和收入指引。在这个收入指引和销量指引后面, 我们这个毛利率水平怎么去判断? I have two questions. The first one is that Li i8 has adjusted some of the configurations. What's our future strategy for the product and SKU for future models? My second question is that, how do we see the gross margin level under the context of the third quarter's sales and revenue guidance? Thank you.

Thank you Glenn.

Should we see yields would be helpful.

Okay.

Jonathan.

I'm also sure that Houston Panther.

Thank you Shannon.

Okay.

Sure Jamie.

And my whole she goes when you gave them.

Sure Jim Cusano gene.

Thank you so much.

Oh, that's cute.

I have two questions first one is that.

Yeah.

No Jonathan intrusion.

Hum.

Okay that sounds you do with southern Chi closer Oh, Gee, that's even show gene cusano genes.

Hi, Justin.

Configurations.

Our future strategy for the product and I'm asking you for future models.

Okay.

That's how much you correctly.

So I have two questions. The first one is that Oh, I ache hi.

And then my second question is that.

So do we.

Adjusted some of our categories.

I see.

<unk>, what's our futures <unk>, Florida production I'm asking you for future models and then my second question is that how do we see.

Our gross margin.

So under the consumption of the third quarter sales.

Our revenue guidance.

C band or Oh gross margins.

And you have a retail sale.

Nicole and her the consumption of the third quarter sales and revenue guidance.

And then on the Chilean <unk>.

It was really good.

Really kind of level out or should that.

Actual negotiated out.

He won't be counted how many dealers you know.

Xiang Li: 你好, 我是Xiang Li。我先回答那个第一个。我们确定现在会减少SKU的数量, 回归理想化和Li L9时代, 每款车, 然后把一个配置打造到极致, 然后为我们的用户提供最强的产品力和性价比。另一方面, 在技术平台和产品的更新上, 我们会加快迭代的速度。按照我们过去的规划, 现在遇到的问题是我们出一次牌, 同行会出两次牌。我们的整个迭代频率相当于让同行看着我们的牌和我们打牌。接下来, 我们必须加速技术平台和产品更新迭代的速度, 确保出牌的频率更快。我们有信心在2026年, 在整车产品力和人工智能平均化的能力上, 要超过2022年Li Auto Inc. Li L9时代的领先程度。

And you have already done some of that either.

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So we know where they can go do that.

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And now you have all kind of in the past or without that.

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Great job by you guys too.

Yeah.

Capital Quito impact turnkey.

Of course, you look we were watching that you'd have an unusual in their true pack plants, which will add.

Blue chip full parity.

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Oh, Yeah, well no issue Yahoo, Youtube impact, but how do you go ahead.

Hello.

First of all we will be for sure reducing the number of Skus back to the time to be won and Dr. <unk> will be focusing on a single SKU and making sure. It's competitive is maximized.

She ball goes.

So you'll see I don't know.

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<unk> Army Army, Alicia I already said that they cannot do.

Janet Chang: First of all, we will be, for sure, reducing the number of SKUs. Back to the time of L9, we'll be focusing on a single SKU and making sure it's competitive, it's maximized, and providing customers with the best product and value for money. In terms of technological platform and products, we will be iterating faster. The issue we're facing today is, by the time we play one hand, our peers have played two hands. The pace of innovation is equivalent to letting our peers see our cars while we're playing. We must increase the pace of the iteration of both products and technology to make sure that we can play faster. We're confident that by 2026, both in terms of vehicle products and AI, we will be having a stronger lead compared to the time of L9 back in 2022. Thank you.

Providing customers with the best product at value for money.

First of all we will be for sure reducing the number of Skus back to the time to be one Andy all night will be focusing on a single SKU and making sure. It's competitive is maximized.

In terms of technological platform and products, we will be iterating faster.

Issue, we're facing today.

By the time, we play one hand, our peers are at play.

And providing customers with the best product value for money.

<unk>.

The pace of innovation.

In terms of technological platform and products, we will be iterating faster.

Is equivalent equivalent to letting our peer to peer car.

Issue, we're facing today.

While we're planning so we must increase the pace of iteration, both product and technology and to make sure that we can play faster.

By the time, we play one hand, our peers are at play too.

The pace of innovation.

Is equivalent equivalent to letting our peers see our car while we're planning so we must increase the pace of innovation, both product and technology.

We're confident that by 2026, both in terms of vehicle product and.

We will be.

Having a stronger leader compared to at the time.

Buying back in 2020, thank you.

And to make sure that we can play faster.

We're confident that by 2026, both in terms of vehicle product at a are we will be.

This is Johnny.

Third quarter gross margin I think with the current.

Having a stronger leader comparator at the time of our buying back in 2020. Thank you.

Volume sales volume and the revenue.

We expect to.

Maintain our gross margin at about 19%.

Xiang Li: This is Johnny for the third quarter gross margin. I think with the current sales volume revenue guidance, we expect to maintain our gross margin at about 19%. Yeah, just as the second quarter and first quarter.

This is Tony Vaughn, who.

All her cost marketing I think with the current.

First quarter.

Thank you.

Yes.

Okay.

One it was volume and the revenue guidance.

Hi.

Thank you. Your next question comes from Paul Gong from UBS. Please go ahead.

Our gross margin at about 19%, Yeah, I'm, sorry, I forgot the second part of the first quarter.

And Jay just for the Q1 <unk>.

Thank you.

<unk> going to arm.

Okay.

Okay.

No go ahead <unk>.

Darcy: Thank you. Your next question comes from Paul Gong from UBS. Please go ahead.

Shall I deal with <unk> <unk>.

Thank you. Your next question comes from Paul Gong from UBS. Please go ahead.

Yes.

Q1.

Completion of the your question is from with somebody and total efficiency.

Tie Li: 感谢接受我的提问。两个问题, 第一个呢, 是关于Li i6的, 能否还请管理层多分享一下Li i6的产品定位、上市节奏、传播计划, 在一个可分享的一个信息范围之内, 更多的一些信息吧。第二个呢, 是关于当前最新的一个出海的规划, 就不知道有些什么样的最新的想法。 My two questions, the first one is regarding Li i6. Within the allowed scope, can you please share more regarding the product positioning, the launching timetable, as well as the marketing plan? My second question is regarding your overseas strategy. I'm not sure what is the latest thought, and I would appreciate if you can share more color on it. Thank you.

Thank you yeah, just for the Q1 <unk>.

Dr. <unk> point of view concentration to agriculture.

How are you doing so well known for Hudson.

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We see the.

About scope could you please share more content.

Eric on that point of view concentrations and cultural hang up we want to see.

<unk> position.

Thats something well.

No timetable as well as the marketing plan.

So my two questions. The first one is regarding I six Oh, we see the allowed scope could you please share more content.

My second question so regarding your overseas strategy.

<unk>.

Not sure what he has done latest thoughts.

What's our position.

And so would appreciate if you can share more color on that thank you.

One <unk> timetable as well as our marketing.

My second question so regarding your overseas strategy.

Lisa.

You can see the electrolytic lodging.

I'm not sure what he has made his thoughts.

$2 million at IMTT.

So with I appreciate if you can share more color on that.

Do you are there actually with your telephone don't give you any agenda conjunction regime.

Yeah.

Xiang Li: we will seriously and comprehensively implement public opinion defense to ensure that previous issues can be prevented.

Or should ease out.

Total Sheila I'll stick them on the shelf.

Hi, Neil.

Let me hit that level Knowhow that high acuity agenda in our here you said double digit in Asia.

You can see how much related to last year.

Yeah.

Yeah.

Do you actually view telephone don't give you any agenda conjuncture regime Hello, Tom.

I'll cover 10 million.

Okay.

Tayo competing you would've seen the assembled last year by 100 here.

Steve obviously on that week.

The beauty about that a little not home yet obviously.

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You cannot see that with you.

That will continue.

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They only with the Hurricanes that lived in the gym and also an issue of a year ago.

How did you do you. She also watch also off all trying to do at the AGM.

Smart switch in 2017 and low double digits.

How about <unk>.

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For <unk> I'm pretty confident that <unk> will become most.

As you all know.

Okay.

Most competitive product.

In the gym in the household.

Large five theater that SUV market, because it has a unique exterior design industry.

And also our <unk> a little.

Don.

Janet Chang: Li i6, I'm pretty confident that the Li i6 will become a most competitive product in the large five-seater BEV SUV market because it has a unique exterior design. It has industry-leading space and comfort, a very long range, and one of the best real-world range. It would also be equipped with our industry-leading VLA4D driver large model. It would also be the best handling Li Auto product for till today. On Li i6, we'll be taking a more user-centric, a new way of marketing. We'll be speaking to our product value and experience in a way that users can understand more easily. For sales, deliveries, and services teams, the training will also be more effective. Lastly, we will seriously take PR defense. We'll make sure that problems are addressed before they're extended.

For Isaacs I'm pretty confident that it can be six will become.

Industry, leading patient comfort and a very long range and one of the best real World range. It would also be equipped with our industry, leading VLA driver large model. It will also be the best handling the auto product.

Most competitive product and a large five theater about SUV market because it has a unique exterior design it has industry, leading space and comfort.

Till today.

Alere effects will be.

<unk> long range and one of the best real World Ranch. It would also be equipped with our industry, leading the only driver of large model. It will also be the best handling the auto product.

Taking a more user centric.

New way of marketing will be speaking to our product value and experience.

In a way that users can understand more easily <unk>.

Till today.

I'll leave <unk> six will be taking a more user centric a new way of marketing will be speaking to our product value and experience.

For sales deliveries and services teams. The training will also be more effective and lastly, we will seriously take PR defense.

In a way that users can understand more easily.

We will make sure that problems are addressed before.

And for failed deliveries and services teams. The training will also be more effective and lastly, we will seriously take PR defense.

There are extended.

Sure.

But outside of our guidance due to what happened.

That's at least answer to give on <unk> itself, which today are in R&D.

Make sure that problems are addressed before.

They're there.

Yes.

Extended.

It will enable a barnyard hand, BARDA oxy and congratulations Keith agenda, which.

Xiang Li: Ma, 我来回答一下关于出海的一个规划。大家知道, Li Auto Inc.第一款产品理想ONE大规模交付是在2020年初。我们内部把2020年到2024年看成是Li Auto Inc.发展的第一个阶段。我们聚焦国内市场和增程的产品。第二阶段是2025年到2027年, 销售市场会从国内正式扩展为国内加海外, 产品也会变成增程加纯电。第三个阶段是在2027年以后, 会是L4自动驾驶以及更多新形态的智能体的产品阶段。2025年是Li Auto Inc.海外的一个元年。研发侧, 我们建立了德国和美国的研发中心。销售渠道侧, 我们开始正式去搭建海外的销售和售后服务体系, 组建海外的团队, 建立各类IT系统。产品侧, 目前我们在研的2026年的新产品, 新上市的产品都会提前考虑到海外的法律法规。在整个市场规划方面, 我们也制定了推进的节奏, 我们会主攻中东、Central Asia、Europe市场。海外市场也是很大的挑战, 比如Li Auto Inc.在海外品牌知名度还比较低。海外市场的开拓需要长期能力和时间的积累, 我们有足够的耐心和决心。公司已经把海外市场专项定位为中长期的战略之一。谢谢。

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Could you just answered or however, you could bring in.

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I mean, the whole EMEA trading law tweaking that you do one more quick one.

The Kenyan total omnichannel I'm not arguing yet.

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She shops.

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Translating for this farm out here.

I'm actually I'm not sure.

Our first program be one was delivered and volume I was back in 2000 at the beginning of 2020.

She doesn't want me to build a nation situation.

So you don't have a sharp change in there too.

Look at 2020 and through 2024 at the first stage of development from the auto where we focus on the domestic market.

<unk> okay.

Janet Chang: Translating for listeners out here. When our first product, Li One, was delivered in volume, that was back in the beginning of 2020. We look at 2020 and through 2024 as the first stage of development for Li Auto Inc., where we focus on the domestic market and on NEV products. The second phase is from 2025 to 2027. The markets we sell in will be formally expanded to global and domestic markets, and products extended to electric vehicles. The third phase will be after 2027, where we'll be focusing on all four autonomous driving and new form factors of AI agents. 2025 is the initial year of our global strategy. On the R&D front, we have built development centers in Germany and the U.S.

Travelling for a list of all here.

Our first program be one was delivered in volume I was back in 2000 at the beginning of 2020.

<unk> product.

The second phase is from 2025 through 2027.

We look at 2020 and through 2024 at the first stage of development from the auto when we focus on the domestic market and on R&D product.

The markets, we sell them, we will be formally expanded to global and domestic market and product extended to electric vehicles and the third phase will be after 2020.

The second phase is from 2025 through 2027 markets, we sell them, we won't be formally expanded to global and domestic market and product extended to electric vehicles and the third phase will be after 2020.

We will be focusing on all for autonomous driving and new form factor.

Agents.

2025 is the initial year.

Global strategy on the R&D front, we have built.

We will be focusing on all for autonomous driving and new form factor.

Yes.

We have built development centers in Germany, and the U S on.

Agents.

Our 2025 is the initial year of our global strategy on the R&D front, we have built.

On the sales channel side, we are formally starting to build overseas and after sales and after sales organization and building an overseas team as well as a range of it systems and on the product front all of the products that we're all going to be launched in 2026 will be taken into account.

We have built a development centers in Germany, and the U S. On the sales channel side, we are formally starting to build overseas and after sales and after sales organization and building an overseas team as well as a range of I T systems.

Janet Chang: On the sales channel side, we are formally starting to build overseas and after-sales organization and building an overseas team as well as a range of IT systems. On the product front, all of the products that we're developing to be launched in 2026 will be taken into account global regulations. In terms of product roadmap, in terms of marketing go-to-market strategy, we also have solidified our overall plan to focus on Middle East, Central Asia, and Europe. The overseas market is both an opportunity and a challenge. For example, overseas, Li Auto Inc. is not a very well-known brand, just to name a few of the challenges. The overseas market expansion will take time and effort, but we have enough patience and resolution. In fact, the overseas market expansion has been one of the top medium to long-term strategies for Li Auto Inc. Thank you.

Global regulations.

And in terms of product roadmap of where or in terms of marketing go to market strategy. We're also.

And on the product front all of the products that we're all going to be launched in 2026 will be taken into account global regulations.

Solidified our.

Overall plan to focus on.

Middle East Central Asia and Europe.

And in terms of product roadmap of where or in terms of marketing go to market strategy. We're also.

The overseas market is both an opportunity and a challenge.

For example overseas.

How solidified our.

Overall plan to focus on.

Auto is not very well known brand just to name a few of the challenges.

Middle East Central Asia and Europe.

So the overseas market expansion will take time and effort, but we have enough patients in resolution and in fact, the overseas market expansion has been one of the top.

The overseas market is both an opportunity and a challenge.

For example overseas.

Auto is not a very well known right.

Medium to long term strategy is for the auto.

Name a few of the challenges.

So the overseas market expansion will take time and effort, but we have enough patients in resolution and in fact, the overseas market expansion has been one of the top.

Thank you.

Thank you. Your next question comes from John King from CIBC. Please go ahead.

Medium to long term strategy is for the auto.

Okay.

Hi, Doug.

Okay.

Hey, Dan how can do with Olympia.

Thank you.

Darcy: Thank you. Your next question comes from Janet Chang from CICC. Please go ahead.

Yes Q2.

Thank you. Your next question comes from <unk> Chang from C. ICC. Please go ahead.

Finally in the quarter.

Please go ahead.

Okay.

Neutral.

Donghui Ma: 好的, 管理层好。那我这边的话跟您问几个问题。首先是第二季度, 我们看到整体现金流方面的话, 可能这个现金流和自由现金流出的话有进一步扩大, 想问一下具体的原因是什么, 包括我们可能怎么看待后续现金流的一个情况。那问题的话是关于自动驾驶, 那近期也是看到我们自动驾驶团队可能有一些人事变动, 包括外部环境方面, 支架监管可能有一定的重演和升级。那是否会影响我们后续VLA新开发迭代和推送? 我来翻译一下。 So I have two questions. The first is, we have seen that our operating cash flow or net cash flow outflow further expands the second quarter. May you explain what the main reasons and how should we view the subsequent cash flow situation in the future? The second question is about the autonomous driving. We can see some key changes in our autonomous sector. Also we see the regulatory tightening on autonomous driving. Will that affect our future development and also our integration and also deployment of our new VLA functions?

Okay got you.

Got it.

Sure.

How come your way Olympia.

Okay.

Davidson.

Yeah, you too.

When do the classic money cash.

Oh pardon me in the car.

Yes, it kind of all of them so the cash of 20.

Please go ahead.

Yes.

It looks like.

<unk> Q2.

Sounds great.

2021.

Fishbone Buffalo Mac windows.

Yes.

Sure.

Davidson.

<unk>.

When do the classic Bonnie Cashin.

Thanks Jose.

Thanks.

Yes.

So I have two questions the first day.

Yeah, Yeah, Yeah no.

That's helpful by Q.

We have seen that.

Our operating cash flow on that so.

2021.

Yes.

Chipotle from a whole cheesy L. A.

Bill.

The second quarter so.

Let's see.

Thanks.

Can you explain why.

So I have two questions. The first day, Oh, we have see that that's our operating cash flow on that.

And how should we view that.

Subsequent cash flow situation.

And the second question.

So we can see some.

Second quarter so.

10 days.

Can you explain why.

Thomas Hector and also OECD regulatory attaching.

And how should we be with that.

Subsequent cash flow situation.

Will that affect our future.

And the second question.

Upon the Sky D. So we can see some PV 10 days.

And also our integration and also deployment.

Got you.

Check test.

Okay.

And also we see the.

Okay.

Regulatory attaching.

Okay.

Describing that.

Our future development.

This strong I will take the.

And also I went to Asia and also deployment.

The first question.

In the second quarter.

U B L. A.

Our.

Okay.

Payment term.

Okay.

By the end of last year.

Okay.

Xiang Li: This is Johnny. I will take the first question. I think in the second quarter, as our payment term by the end of last year was three months to four months, we are paying off most of the payables of last December, November, and January, February, basically. This is why in the second quarter we have some negative operating cash flow. As you may know, we have already adjusted the payment term to 60 days to respond to the regulatory requirements and the industry trends. Basically, in the third quarter, the negative operating cash flow used can be, will be enlarged in the third quarter. We expect this will improve the cash flow in the fourth quarter. That's, we can have a better sales volume guidance in the fourth quarter. Thank you.

Three months too.

This strong.

The first question.

Walmart so basically.

In the second quarter.

Pay off.

Most of it.

Sure.

Payables.

Payment term.

By the end of last year.

Last December November and January February basically so.

All three months to Walmart.

Walmart, so basically that pay off.

This is why the second quarter.

Most of it.

Omar.

Payables of last December and November and January February basically so.

Got it.

Operating cash flow.

Yes.

We know we have already prepared.

Payment term tool.

This is why the second quarter.

60 day.

Uh huh.

Got it.

To respond to the regulatory requirements.

Operating cash flow.

And we know we have already a job so far.

So.

Term tool.

The third quarter.

The operating cash flow.

60 day.

Negative.

Uh huh.

To respond to the regulatory requirements.

<unk>.

Our operating cash flow yields can be will be in March.

Uh huh.

So basically.

So a corner and we expect that.

The third quarter.

Operating cash flow.

That will improve.

Negative.

The cash flow in the fourth quarter.

<unk>.

Our operating practical used can be will be in that.

You can have a better sales.

Alright. Thank.

So call it here.

Thank you.

And we expect this.

Sure.

That will improve.

Government.

The press release in the fourth quarter. Thanks, Bob.

And then just issues with LNG leader typical.

You kind of have a better so it was one of them.

<unk> had a little tougher.

The fourth quarter.

Thank you.

Yeah.

Tie Li: of compliance, seeking a dynamic balance between safety verification and experience innovation. We have the confidence and ability to ensure the continuity of VIA development iteration and the certainty of rollout and implementation. Thank you.

Oh sure I'll go with one okay got it.

Tom.

Thank you.

I think that a lot of detail to my second Sunday CIT research would tell us either you could handle.

But that's enough.

We didn't catch you on each of those insurance side Asia key gender.

A woman.

Looking ahead, a little not that pattern.

Toss up.

Yeah.

Sure.

I think what you saw.

Let's move on to the similar kind of ambition.

That's enough.

Consider for example.

Yeah on each of those machines I E.

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Hi, <unk>.

Tenda has seen him with.

A woman.

The agenda.

We do some actual agenda.

How many initial points out.

So just to put it in that engine.

Let's move on to some of that kind of a Nissan.

<unk> full for that yet.

You'll get you'll see the downhole.

What youll positive for sure.

I can do about that.

Hi.

Don.

Now moving to changing the trend here.

The agenda.

Let me do some isolation.

Peter <unk> head of oncology patents.

So just to put it into that engine.

Yeah that should be higher than the usual the hittite.

Bullock, who write downs in Chile that fulfill that yet.

With Andrea contention.

What you'll find that you foresee it.

Now, let me turn to Jeff with Ohio, Michigan.

And then we will be funding tool chain Kinder 'twenty here.

Hi, Jason.

Peter you can send out a few items that you called out called attention here.

Okay.

Hi, Bob.

You're going to sell for October.

Yeah that should be a higher than usual.

Global banking a lot.

Based on their interpretation done what he.

Digitalized.

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Jason.

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Tie that P&L.

This is driving team has seen a few departures recently.

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Yeah.

At some level of talent movement is not uncommon.

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Yeah.

Janet Chang: Translating for Mr. Ma here. To directly answer the question, yes, our assisted driving team has seen a few departures recently. Some level of talent movement is not uncommon in this blossoming industry, and the percentage of people involved is actually very small. We'd like to extend our sincere thanks to those who have left for their contribution at Li Auto Inc., and together we have truly delivered many great products and experiences for our users. Our current assisted driving team operates with a very clear organizational structure, a well-developed talent pipeline, and strong strategic reserves of talent. In light of recent changes, we have appointed new leaders who bring a more youthful energy to the roles. They carry extensive experience from their past work and offer an international technical perspective. We have the kind of innovative thinking that will drive the team forward.

Blossoming industry.

Ill translate for Mr Ball here.

And the percentage of people involved are actually very small so we'd like to extend our sincere. Thanks.

So to directly answer the question, yes, our.

This is driving team has seen a few departures recently.

So those who have lost further contribution that'd be auto and together, we have truly delivered many great product and experience for our users.

At some level of talent movement is not uncommon.

Blossoming industry.

And the percentage of people involved are actually very small so we'd like to extend our sincere. Thanks.

Our current assisted driving team operates with a very clear organizational structure and well developed talent pipeline and strong strategic reserves of talent.

So those who have left for their contribution that'd be auto and together, we have truly delivered many great product and experience for our users.

In light of recent changes, we have appointed new leaders, who bring a more youthful energy to enroll.

Our current assisted driving team operates with a very clear organizational structure and well develop talent pipeline and strong strategic resource of talent.

<unk> extensive experience from the past work and offer an international technical perspective, we have the kind of innovative thinking that will drive the team forward.

The recent changes we have appointed new leaders, who bring a more youthful energy to enroll.

And to add to that the auto strong brand appeal and promising prospects continue to attract outstanding talent from across the industry.

<unk> extensive experience from the past work and offering an international technical perspective.

Bringing fresh energy to our team.

We have the kind of innovative thinking that will drive the team forward.

We are steadily advancing our BLA product delivery the veolia previous version we have already developed.

Janet Chang: To add to that, Li Auto Inc.'s strong brand appeal and promising prospects continue to attract outstanding talents from across the industry and bring fresh energy to our team. We're steadily advancing our VLA product delivery. The VLA preview version we have already developed features our VLA driving, VLA parking, and VLA summit capabilities. We expect to roll out a complete version with scheduled shipment to all the Li AD Max users in September, adding the VLA command functions to deliver a more convenient and intelligent assisted driving experience. We also have another major update scheduled for October to create additional user value. The increased regulatory focus on assisted driving really represents an important step towards healthy and orderly growth for this industry. From our perspective, a structured regulatory environment helps the truly capable companies with real technical expertise to stand out.

And to add to that the auto strong brand appeal and promising prospects continue to extract attract outstanding talents from across the industry and bringing fresh energy to our team.

Featuring driving trailer parking and BLA filing capabilities, we expect to rollout a complete version with Shelley shared with all of the AVR IMAX users.

We are steadily advancing our product delivery. The veolia previous version, we have already people are different.

In September, adding the BLA command functions to deliver more convenient and intelligent assisted driving experience.

Featuring out value driving valet parking and BLA filing capabilities, we expect to rollout a complete version with Shelley shared with all of the ADR tobacco users in.

We also have another major update scheduled for October.

To create additional user value.

The increased regulatory focus on assisted driving really represents an important step towards healthy and orderly growth for this industry from our perspective, a structure a stricter regulatory environment helped to truly capable companies with real pegged.

In September adding the only command functions to deliver more convenient and intelligent assisted driving experience.

We also have another major outages scheduled for October.

Create to create additional user value.

The increased regulatory focus on assisted driving really represents an important step towards healthy and orderly growth for this industry from our perspective, a structure a stricter regulatory environment helps us truly capable companies with a real tight.

Technical expertise to stand out.

And the auto safety and compliance have always been our top priority when developing new technologies as we adapt to these evolving standards, we've been strengthening our testing protocols and quality control systems.

Technical expertise to stand out.

Janet Chang: Li Auto Inc.'s safety and compliance have always been our top priority when developing new technologies. As we adapt to these evolving standards, we've been strengthening our testing protocols and quality control systems. This not only improves VLA's technological maturity and reduces potential risk, but also helps us to deliver a safer and more reliable assisted driving experience for our users. Throughout VLA's development, we've maintained focus on user value and compliance boundaries, constantly striking a balance between safety validation and experience innovation. We're confident and fully capable of maintaining consistent progress in VLA's development and ensuring its timely rollout. Thank you.

And the auto safety and compliance have always been our top priority when developing new technologies as we adapt to these evolving standards, we've been strengthening our testing protocols and quality control systems.

This not only improves the BLA is technological maturity and reduce potential risks, but also helps.

Deliver a safer and more reliable assisted driving experience for our users.

Throughout the earliest development, we've maintained focus on user valeant compliance boundaries.

This not only improves the all is technological maturity and reduce potential risks, but also helps us to deliver a safer and more reliable assisted driving experience for our users.

Instantly striking a balance between safety validation and experience animation.

Were confident and fully capable of maintaining consistent progress and BLA development, and Shirley and assuring a timely rollout. Thank you.

Throughout the earliest development, we've maintained focus on user values compliance boundaries.

Instantly striking a balance between safety validation and experience innovation or.

Thank you. Your next question comes from Nathan Lee from Bank of America. Please go ahead.

Confident and fully capable of maintaining consistent progress and be alleys development, and Shirley and assuring a timely rollout. Thank you.

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Darcy: Thank you. Your next question comes from Ming Xun Li from Bank of America. Please go ahead.

Yeah.

Thank you. Your next question comes from Nathan Lee from Bank of America. Please go ahead.

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Tie Li: 穿障线全线的贯通, 实现了九纵九横的高速超充网络核心路段的贯通。目前我们已经建成了车企规模最大的城市和高速的超充网络。快呢, 指的是 10 分钟就可以补能 500 公里, 买一杯咖啡的时间就能够满点出发。快, 非常快。好, 车和桩协同的智能体验, 包括智能的充电规划, 预约的充电即插即用, 然后再加上单手可提的轻量化的充电枪, 对女性用户非常贴心, 非常友好。省呢, 是指相比其他品牌的电动车, Li Auto Inc. 车主会有专享的优惠定价, 更省钱, 并且 Li Auto Inc. 车主的积分可以抵扣充电的费用等等。这些不仅仅是纸面上的数字, 是用户每天都能感受到的充电自由。关于对于其他品牌开放, 我们一直将 2C、4C 桩开放给其他品牌, 但可能达不到车, 达不到 Li Auto Inc. 车主以上的体验, 因为充电过程需要车端和桩端的一体化协同。谢谢。

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John I Wonder if you parse it Keith.

But it should have an impact as well.

Ill translate for Mr amount here for the auto vehicle owners I can assure that the experience with our charging stations.

They don't see excuse me I'd love, Kevin to checking back that's one of them that without having to do with how much yet.

Please be the best.

Trillium she'll join.

I can summarize experience with forward curve.

Linda you can watch it Keith.

Average speed experience and value for money.

Janet Chang: Translating for Mr. Ma here. For Li Auto vehicle owners, I can assure that the experience with our charging stations will always be the best. I can summarize the experience with four words: coverage, speed, experience, and value for money. First of all, coverage. We're absolutely number one among all automakers in terms of the number of supercharging stations. We have about 1.55 times the number of charging stations compared to Tesla. Wherever our users go, they can easily find our charging stations. We completed the coverage along the G318 Sichuan to Tibet highway route and core sections of the 9x9 highway network in China. We now operate the largest urban and highway supercharging network of any automaker in China. Second, speed. Our charging network supports 500 kilometers of driving range with only 10 minutes of charging, just the time of buying a cup of coffee. It's really, really fast.

Sure translate for Mr amount here.

First of all coverage, where it absolutely number one among all automakers in terms of the number of Supercharging stations, we have about one five times the number of charging station compared to top line.

One is the auto vehicle owners are I can assure that the experience with our charging stations will always be the best I can summarize experience with forward coverage speed experience and value for money.

However, our users Goldman can easily find are charging stations, we've completely we completed the coverage along the tier 318, so trying to Tibet Highway route and core sections of the nine by nine Highway network in China. We now operate the largest urban and highway Supercharging network of any automaker in China.

First of all coverage, where it absolutely number one among all automakers in terms of the number of Supercharging stations.

We have about one five times the number of charging station compared to top line.

However, our user school they can easily find are charging stations, we've completely but we completed the coverage along the tier 318, so trying to Tibet Highway route and core sections of the nine by nine Highway network in China. We now operate the largest urban and highway supercharger network of any auto maker in China.

Second speed are charging network support 500 kilometers of driving range only 10 minutes of charging just the time of buying a cup of coffee is really really fast.

Experience are charging network providers are.

Second speed are charging network support 500 kilometers of driving range with only 10 minutes of charging just the time of buying a cup of coffee is really really fast.

A very integrated experience between the vehicle and the chartering staff.

And with very intelligent charging planning.

Janet Chang: Experience. Our charging network provides a very integrated experience between the vehicle and the charging stalls, with very intelligent charging planning, charging reservation, and plug and charge functionality. Combining that with the lightweight charging poles, designed to be easily handled with one hand, it's especially user-friendly for female users. In terms of value for money, compared to the owners of other EV brands, Li Auto vehicle owners enjoy a dedicated preferential electricity charging rate, saving on every charge. In addition to that, our owners can use their loyalty points to offset our charging costs. These aren't just numbers on paper. They translate into real everyday charging experience that our users can provide positive feedback on every day.

<unk> reservation and plug in charge functionality.

And experience are charging network provide R V.

Combining that with our Lightwave charging are charging both designed to be easily handled with one hand.

A very integrated experience between the vehicle and they're charging stop.

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And with very intelligent charging planning.

User friendly for them.

Female users.

<unk> reservation and plug in charge functionality.

In terms of value for money compared to the owners of other <unk> brands the auto vehicle owners enjoy.

Combining that with a lightweight charging are charging both designed to be easily handled with one hand.

A dedicated preferential electricity charging rates.

Especially.

User friendly for them.

Saving our average charge and in addition to that our owners can use their loyalty points to offset our chartering costs.

Female users.

In terms of value for money compared to the owners of other <unk> brands the auto vehicle owners enjoyed.

These arent just numbers on paper, they translate into real everyday charging experienced at our users Ken.

A dedicated preferential electricity chartering rates.

Our average charge and in addition to that our owners can use their loyalty points to to offset our charging cost.

Tom.

Provide positive positive feedback on every day or two to see unfortunately charging stop having opened the vehicle owners of other brands, but those other owners won't be able to have the same level experienced as our vehicle users because the best experience require a seamless integration of the <unk>.

These arent just numbers on paper they translate into real everyday charging experience at our users can.

Uh huh.

Provide positive positive feedback on every day or two to see enforcing charging stop having opened a vehicle owners of other brands, but those other owners won't be able to have the same level experience at our vehicle users because the best experience require a seamless integration.

Janet Chang: Our 2C and 4C charging stalls have been open to vehicle owners of other brands, but those other owners won't be able to have the same level of experience as our vehicle users because the best experience requires seamless integration of the vehicle as well as the charging stations. Thank you.

Nickel as well as the charging stations.

Okay.

No.

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$70 Josh <unk>.

Nickel as well as the charging stations. Thank you.

Some of the detail on that.

Tie Li: 我是李想。关于VLA，我也说说我的一个看法。就2025年整个辅助驾驶行业，我们遇到了质量时刻，就相关技术和体验的整个上半年的进展缓慢，同时还面临了来自监管的挑战。我认为这是黎明到来前的黑暗。VLA是很清晰的通往L3、L4，甚至是L5级自动驾驶的路径，因为它和人的工作方式一样。我们预测，未来会比人类的驾驶强10倍，甚至100倍。VLA是真正的AGI的第三阶段的智能体，它的能力提升来自于两个方面。首先是通过人类的数据和技术模型，获得人类的经验，达到和人类相同的水平，类似于师傅带徒弟，大量的应用类似SMT和RHF的方式来进行后训练。更重要的是，可以通过世界模型生成的环境进行强化训练，也就是RRAIF。这里的RRAIF不是用于训练基座模型的，而是用于直接训练智能体的。举个例子来说，我们近期在国外国内经常看到L4的运营车辆掉到了施工场景的坑里，但是在人类世界中，这样的数据非常有限，却也无法用于训练。在世界模型中，我们可以把这些坑变成数据资产，生成无数个车辆掉坑的数据，从而通过强化训练，让智能体可以轻松地解决这类的问题。也就是说，世界模型拥有比真实世界更难、更全面、更高质量以及更有挑战的数据和反馈方式，从而解决了人类世界数据过密合、数据分配不均以及无法剔除脏数据对智能体的影响。我们相信，随着训练迭代和成长，未来两年左右，VLA可以达到人类驾驶安全的10倍以上。而这背后的挑战是智能体需要更强的大脑和更强的心脏。大脑就是模型的规模，端到端是3亿的，是3亿参数的模型规模。虽然我们交付的VLA已经是40亿的模型规模了，但是跟人类大脑相比还是有很大的不足。模型规模的扩大会带来放化能力的显著提升，而对于模型规模的扩大，也需要在端侧部署更强的算力。算力就相当于心脏，通过给大脑持续的供血，从而运行更大的模型。在世界模型和RRAIF层面，相比之前，我们可能需要10倍起的推理算力，用以解决RRAIF训练所需要的环境和数据。我们预测，随着强化训练、模型规模以及算力的提升，自动驾驶的进步速度和成长速度会远远高于以前的任何一种方式。我们相信未来3到5年里，数字世界最大的智能体应用是编程，而物理世界最大的智能体应用就是自动驾驶。我相信L4级别的自动驾驶将会在2027年实现。

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With technological and experienced programs slowing down at the same time regulatory pressures have grown.

Janet Chang: In fact, in the beginning of 2025 has really been the most challenging period for assisted driving. With technological and experience progress slowing down, at the same time, regulatory pressures have grown. However, I see this as the darkness just before dawn. The VLA represents a clear pathway towards L3, L4, and even L5 autonomous driving. As it operates really in a way like human, only we can expect it to perform 10 times or even 100 times better than human drivers in the future. VLA is a true agent in the third stage of AI, and we build its capabilities in two ways. First, it acquires human experience by learning from human data and the foundational model through large-scale operation of SFT and RLHF to achieve performance on positive human drivers. It's like an apprentice learning from a master.

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Technological and experienced programs slowing down at the same time regulatory pressures have grown.

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First it requires human experience by learning from human data and the foundational model through large scale operation SFC and ROI and share our outlook to achieve performance on par with human drivers if I can apprentice learning from a master <unk>.

Only weekend expected at 410 times, or even 100 times better than human factor in the future.

L. A is a true Asia in the third stage of Adi and we build these capabilities in two ways.

First it requires human experience by learning from human data and the foundational model through large scale operation SFC and ROI chair, our outlet shops to achieve performance on par with human drivers, it's like an apprentice learning from faster.

More importantly, it undergoes reinforcement training within environments generated by a world model using <unk> Aif to train agents for example, many times see al four vehicles in China as well as overseas.

Janet Chang: More importantly, it undergoes reinforcement training within environments generated by a world model using RLAIF to train agents. For example, we many times see L4 vehicles in China as well as overseas falling into traps, for example, construction zones. This kind of data is very limited in the real world and cannot be used for training. However, with a world model, we can generate countless variations of cars falling into these traps and enabling the agent to learn rapidly and resolve these issues effortlessly through reinforced practice. The world model provides data that is more difficult, more comprehensive, higher in quality, and more challenging than real-world data. This approach effectively addresses critical issues in real-world data such as underrepresentation, imbalanced distribution, and the impact of unavoidable polluted data on agents.

But more importantly, it undergoes reinforcement training within their environments generated by World model using our L. I F to train agents for example, many times see al for.

Following two trucks for example, construction zone.

And this kind of data is very limited in the real world and cannot be used for training. However, with a world model, we can generate countless variations of carbon falling into these trials.

Vehicles in China, as well as overseas.

Following two trucks for example, construction zone.

And enabling the agent to learn rapidly and resolve these issues effortlessly through reinforced practice.

And this kind of data is very limited in the real world and cannot be used for training. However, with a world model, we can generate countless variations of Carl falling into these trials.

The World model provides data that is more difficult more comprehensive and higher quality and more challenging world real world data.

And enabling the agent to learn rapidly and resolve these issues after literally through reinforced practice.

This approach effectively addresses critical issues in the real world data such as Underrepresentation in balanced distribution and the impact of unavoidable polluted data on agent.

World model provides data that is more difficult more comprehensive and higher quality and more challenging there.

Real World data.

We believe that ongoing iterative training and development.

This approach effectively addresses critical issues in real world data, such as Underrepresentation in balance distribution and the impact of unavoidable polluted data on agent.

The BLA will achieve a level of driving safety at least 10 times that of the human driver within the next two years or so.

The challenge behind Us lives and equipping the Asian with both a more powerful brand and a stronger heart February we referred to model scale, we enter and model has three building parameters, while our VLA model has four built parameters, which remain far inferior to cumulus capabilities and expanding the scale will.

Janet Chang: We believe that ongoing iterative training and development, the VLA will achieve a level of driving safety at least 10 times that of a human driver within the next two years or so. The challenge behind this lies in equipping the agent with both a more powerful brain and a stronger heart. By brain, we refer to model scale. The end-to-end model has 0.3 billion parameters, while our VLA model has 4 billion parameters, which remain far inferior to human capabilities, and expanding this scale will substantially enhance generalization capability. Scaling the model will also require significantly more computing power on the device side, which acts as the heart to supply the brain with the necessary resources to supply larger models.

We believe that all go iterate, a training and development.

The BLA will achieve a level of driving safety at least 10 times that of the human driver within the next two years or so.

The challenge behind Us lives and equipping the Asian with both a more powerful brand and a stronger heart by Gray, we referred to model scale. The antenna and the model has 3 billion parameters, while our VLA model has for delta parameters, which remains far inferior to human capabilities and expanding the scale of what will.

Essentially enhanced <unk>.

<unk> capability.

Scaling the model will also require.

Significantly more computing power on the device side, which access the heart to supply the brand with the necessary resources to supply large model.

Essentially enhance a generalization capability.

And in the meantime, the realm of World models and <unk>.

Scaling the model will also require.

Significantly more computing power on the device side, which access the heart to supply the brand with the necessary resources to supply large models.

We will likely require at least 10 times more computing power for reopening than before to generate the environment at data necessary for our Aif training, we anticipate that with the enhancements and reinforcement training modest scale and computing power the speed of our progress will far exceed anything we've seen between our previous approaches.

Janet Chang: In the meantime, the realm of world models and RLAIF will likely require at least 10 times more computing power for reasoning than before to generate the environment and data necessary for RLAIF training. We anticipate that with the enhancements in reinforcement training, model scale, and computing power, the speed of our progress will far exceed anything we've seen in our previous approaches. I believe that in the next three to five years, the largest application of agents in the digital world will be programming, coding, while in the physical world, it's going to be autonomous driving. I believe that level four autonomous driving will be achieved by 2027. Thank you.

And in the meantime in the realm of World models, and our L. A as well.

We will likely require at least 10 times more computing power for reopening than before to January of the environment and data necessary for all AI ops training, we anticipate that with the enhancements and reinforcement training modest scale and computer power the speed up our progress will far exceed anything that we've seen with previous approaches.

I believe that in the next three to five years, the largest allocation of agents in the digital world will be programming coating.

In the physical world is going to be autonomous driving.

And I believe that level four autonomous driving will be achieved by 2027. Thank you.

I believe that in the next three to five years, the largest application of agents in the digital world will be programming coating.

Yeah.

Thank you Anthony and reaching the end of our conference call now I'd like to turn the call back over to the company for closing remarks.

All in the physical world is gonna be autonomous driving.

And I believe that level four autonomous driving will be achieved by 2027.

Ken Cheng. Please go ahead.

Thank you once again for joining us today. If you have further questions. Please feel free to contact <unk> Investor Relations.

Yeah.

Yeah.

Darcy: Thank you. As we are reaching the end of our conference call now, I'd like to turn the call back over to the company for closing remarks. Ms. Janet Chang, please go ahead.

Thank you Anthony I, reaching the end of our conference call now I'd like to turn the call back over to the company for closing remarks.

The contact information provided on our IR website. This concludes today's conference call. You may now disconnect your lines. Thank you.

Jenny Zhang Please go ahead.

Operator: Thank you once again for joining us today. If you have further questions, please feel free to contact Li Auto Inc.'s investor relations team through the contact information provided on our IR website. This concludes this conference call. You may now disconnect your lines. Thank you.

Thank you once again for joining us today. If you have further questions. Please feel free to contact me IR Investor Relations.

The contact information provided on our IR website. This concludes this conference call you may now disconnect your lines. Thank you.

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