Q4 2025 NIO Inc Earnings Call

March 10, 2026

Speaker #1: Hello, ladies and gentlemen. Thank you for standing by for NIO Incorporated's fourth quarter and full year 2025 earnings conference call.

Speaker #1: At this time , all participants are in listen only mode Today's conference call is being recorded . I will now turn the call over to your host , Mr. Ray Chen .

Speaker #1: Head of Investor Relations and Corporate Finance of the company. Please go ahead, Ray.

Speaker #2: Good morning and good evening , everyone . Welcome to news first quarter and full year 2025 earnings conference call . The company's financial and operating results were published in the press release earlier today , and are posted on the company's IR website .

Rui Chen: Good morning and good evening, everyone. Welcome to NIO's Q1 and full year 2025 earnings conference call. The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website. On today's call, we have Mr. William Li, Founder, Chairman of the Board, and Chief Executive Officer, and Mr. Stanley Qu, Chief Financial Officer. Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today.

Speaker #2: On today's call , we have Mr. William Lee , founder , chairman of the board and chief Executive Officer and Mr. Dainichi , chief Financial officer Before we continue , please be kind reminded that today's discussion will contain forward looking statements made under the safe harbor provisions of the US private Securities Litigation Reform Act of 1995 .

Speaker #2: 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 filings of the company with the U.S. Securities and Exchange Commission.

Rui Chen: Further information regarding risks and uncertainties is included in certain filings of the company with the U.S. Securities and Exchange Commission, the Stock Exchange of Hong Kong Limited, and the Singapore Exchange Securities Trading Limited. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that NIO's earnings press release and this conference call include discussion of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to NIO's press release, which contains a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures. With that, I will now turn the call over to our CEO, Mr. William Li. William, please go ahead.

Speaker #2: The stock Exchange of Hong Kong Limited and the Singapore Exchange Securities Trading Limited , the company does not assume any obligation to update any forward looking statements except as required under applicable law .

Speaker #2: Please also note that Neos earnings press release and this conference call include discussions of unaudited GAAP financial information , as well as unaudited non-GAAP financial measures .

Speaker #2: Please refer to news press release , which contains a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures With that , I will now turn the call over to our CEO , Mr. William Lee William , please go ahead

William Li: Hello, everyone. Thank you for joining NIO Inc.'s 2025 Q4 and Full Year Earnings Call. In Q4 2025, we delivered 124,807 smart EVs, achieving a year-over-year increase of 71.7%. Quarterly deliveries for all three brands reached a record high. For the full year 2025, the NIO, Onvo, and the Firefly brands worked in close synergy and delivered a total of 326,028 vehicles, up 46.9% year-over-year. This marks our return to a strong growth trajectory. In January and February of 2026, we delivered 27,182 and 27,797 vehicles respectively. For Q1, we expect total deliveries to be between 80,000 and 83,000 vehicles, representing a year-over-year increase of 90.1% to 97.2%.

[Translator]: Hello, everyone. Thank you for joining NIO Inc.'s 2025 Q4 and Full Year Earnings Call. In Q4 2025, we delivered 124,807 smart EVs, achieving a year-over-year increase of 71.7%. Quarterly deliveries for all three brands reached a record high. For the full year 2025, the NIO, Onvo, and the Firefly brands worked in close synergy and delivered a total of 326,028 vehicles, up 46.9% year-over-year. This marks our return to a strong growth trajectory. In January and February of 2026, we delivered 27,182 and 27,797 vehicles respectively. For Q1, we expect total deliveries to be between 80,000 and 83,000 vehicles, representing a year-over-year increase of 90.1% to 97.2%.

Speaker #3: Hello, everyone. Thank you for joining NIO Inc.'s 2025 Q4 and full year earnings call.

Speaker #2: We Are

Speaker #3: In Q4 2025 , we delivered 124,807 smart EVs achieving a year over year increase of 71.7% , quarterly deliveries for all three brands reached record highs For the full year 2025 , the Neo and the Firefly brand worked in close synergy and delivered a total of 326,028 vehicles , up 46.9% year over year This marks our return to a strong growth trajectory

Speaker #2: Liang Liang The one .

Speaker #3: Are in January and February of 2026 . We delivered 27,182 and 20,797 vehicles , respectively , for the first quarter , we expected total deliveries to be between 80,080 3000 vehicles , representing a year over year increase of 90.1% to 97.2% .

Stanley Qu: 财务表现方面，2025年第四季度，公司整车毛利率达18.1%，毛利率的持续提升得益于销量的大幅增长、高毛利率产品销售占比提升以及整车成本进一步优化。同时其他销售毛利率达11.9%，基于保有量的服务与社区各项业务的规模及盈利表现全面提升。

William Li: 财务表现方面，2025年第四季度，公司整车毛利率达18.1%，毛利率的持续提升得益于销量的大幅增长、高毛利率产品销售占比提升以及整车成本进一步优化。同时其他销售毛利率达11.9%，基于保有量的服务与社区各项业务的规模及盈利表现全面提升。

Speaker #2: For The . The

William Li: Turning to the financial performance. In Q4 2025, our vehicle margin reached 18.1%. The continuous improvement in margin was mainly driven by strong sales growth, a higher mix of high margin models, and also continued vehicle cost optimization. Meanwhile, the margin of other sales reached 11.9%, supported by the expanding scale and improving profitability of our services and community related businesses as our user base continues to grow.

[Translator]: Turning to the financial performance. In Q4 2025, our vehicle margin reached 18.1%. The continuous improvement in margin was mainly driven by strong sales growth, a higher mix of high margin models, and also continued vehicle cost optimization. Meanwhile, the margin of other sales reached 11.9%, supported by the expanding scale and improving profitability of our services and community related businesses as our user base continues to grow.

Speaker #3: Turning to the financial performance in Q4 2025 , our vehicle margin reached 18.1% . The continuous improvement in margin was mainly driven by strong sales growth , a higher mix of high margin models , and also continued vehicle cost optimization Meanwhile , the margin of other cells reached 11.9% , supported by the expanding scale and improving profitability of our services and community related businesses .

Speaker #3: As our user base continues to grow

Stanley Qu: 2025年第四季度，Non-GAAP经营利润达12.5亿元，GAAP经营利润达8.1亿元。现金流层面，公司连续两个季度实现正向自由现金流，2025年全年实现正向经营性现金流。季度盈利充分印证了蔚来技术路线、产品以及商业模式的核心竞争力，也体现了蔚来体系化能力与运营效率的持续提升，为公司长期可持续发展奠定了坚实基础。

William Li: 2025年第四季度，Non-GAAP经营利润达12.5亿元，GAAP经营利润达8.1亿元。现金流层面，公司连续两个季度实现正向自由现金流，2025年全年实现正向经营性现金流。季度盈利充分印证了蔚来技术路线、产品以及商业模式的核心竞争力，也体现了蔚来体系化能力与运营效率的持续提升，为公司长期可持续发展奠定了坚实基础。

Speaker #2: Non-GAAP Q1, even solution. We Q2.

William Li: In Q4, Non-GAAP operating profit reached CNY 1.25 billion, while GAAP operating profit reached CNY 810 million. On the cash flow side, we delivered positive free cash flow for two consecutive quarters and achieved positive operating cash flow for the full year of 2025. This quarterly profitability also further validates the competitiveness of our technology roadmap, products and business models. It also demonstrates the continuous strengthening of our operational capabilities and efficiency, providing a solid foundation for long-term sustainable development.

[Translator]: In Q4, Non-GAAP operating profit reached CNY 1.25 billion, while GAAP operating profit reached CNY 810 million. On the cash flow side, we delivered positive free cash flow for two consecutive quarters and achieved positive operating cash flow for the full year of 2025. This quarterly profitability also further validates the competitiveness of our technology roadmap, products and business models. It also demonstrates the continuous strengthening of our operational capabilities and efficiency, providing a solid foundation for long-term sustainable development.

Speaker #3: In Q4 , non-GAAP operating profit reached 1.25 billion RMB , while GAAP operating profit reached 810 million RMB on the cash flow side , we delivered positive free cash flow for the for two consecutive quarters and achieved positive operating cash flow for the full year of 2025 .

Speaker #3: This quarterly profit also further validates the competitiveness of our technology roadmap, products, and business models. It also demonstrates the continued strengthening of our operational capabilities and efficiency, providing a solid foundation for long-term sustainable development.

Stanley Qu: 2025年开始，我们通过蔚来、乐道和萤火虫三大品牌，服务了更广泛的用户群体。三个品牌在各自细分市场均获得目标用户的高度认可。

William Li: 2025年开始，我们通过蔚来、乐道和萤火虫三大品牌，服务了更广泛的用户群体。三个品牌在各自细分市场均获得目标用户的高度认可。

Speaker #2: On . Yu Qu 20 .

William Li: Since 2025, we've been serving a broader group of users through the NIO, Onvo, and Firefly brands. The three brands have been well recognized by users in their respective segments.

[Translator]: Since 2025, we've been serving a broader group of users through the NIO, Onvo, and Firefly brands. The three brands have been well recognized by users in their respective segments.

Speaker #3: Since 2025, we've been serving a broader group of users through the New, Onvo, and Firefly brands. The three brands have been well recognized by users in their respective segments.

Stanley Qu: 蔚来品牌方面，全新ES8自2025年9月底开启交付以来，历时仅160天，便达成第7万台新车交付里程碑，刷新40万元以上车型单月交付量纪录。二季度，我们将推出科技行政SUV旗舰ES9。作为十一年技术和体验的集大成之作，ES9将搭载多项行业领先的核心技术，为用户带来豪华行政级的出行体验。同时，2026款ET5、ET5T、ES6、EC6也将于二季度陆续上市。蔚来品牌将持续完善在高端纯电市场的产品布局和竞争力。

William Li: 蔚来品牌方面，全新ES8自2025年9月底开启交付以来，历时仅160天，便达成第7万台新车交付里程碑，刷新40万元以上车型单月交付量纪录。二季度，我们将推出科技行政SUV旗舰ES9。作为十一年技术和体验的集大成之作，ES9将搭载多项行业领先的核心技术，为用户带来豪华行政级的出行体验。同时，2026款ET5、ET5T、ES6、EC6也将于二季度陆续上市。蔚来品牌将持续完善在高端纯电市场的产品布局和竞争力。

Speaker #2: For by SUV , ESG to see that ESG We E2 t s ethyl I

William Li: For the NIO brand, the all new ES8 has shown strong market momentum since deliveries began at the end of September 2025. In just 160 days, it reached the milestone of 70,000 deliveries, setting a monthly delivery record among vehicles priced above CNY 400,000. In Q2 this year, we will introduce the new ES9, an executive flagship SUV. As a combination of NIO's 11 years of technological innovation and user experience development, the new ES9 is equipped with multiple industry leading technologies, delivering a luxurious executive mobility experience for users. In addition, the ET5, ET5T, ES6, and EC6 will introduce the 2026 versions in Q2. Overall, the NIO brand will continue strengthening the product lineup and its position in the premium BEV market.

[Translator]: For the NIO brand, the all new ES8 has shown strong market momentum since deliveries began at the end of September 2025. In just 160 days, it reached the milestone of 70,000 deliveries, setting a monthly delivery record among vehicles priced above CNY 400,000. In Q2 this year, we will introduce the new ES9, an executive flagship SUV. As a combination of NIO's 11 years of technological innovation and user experience development, the new ES9 is equipped with multiple industry leading technologies, delivering a luxurious executive mobility experience for users. In addition, the ET5, ET5T, ES6, and EC6 will introduce the 2026 versions in Q2. Overall, the NIO brand will continue strengthening the product lineup and its position in the premium BEV market.

Speaker #3: For the new brands, the all-new iOS Eight has shown strong market momentum since deliveries began at the end of September 2025. In just 160 days.

Speaker #3: It reached the milestone of 70,000 deliveries, setting a monthly delivery record among vehicles priced above 400,000 RMB in Q2 this year. We will introduce the new Ismai and Executive flagship SUV as a combination of NIO's 11 years of technological innovation and user experience development.

Speaker #3: The new S9 is equipped with multiple industry leading technologies , delivering a luxurious experience for luxurious executive mobility experience for users . In addition , the Et5 Et5 , ES6 and S6 will introduce the 2026 versions in Q2 Overall , the new brand will continue strengthening the product lineup and its position in the premium Bev market

Stanley Qu: 乐道品牌方面，L90自上市以来，凭借革新的产品体验、卓越的安全性能与优异的空间表现，获得大家庭用户的高度认可，成为2025年度纯电大型SUV的销量冠军。乐道品牌全球首款双舱超级大五座SUV L80将于第二季度正式上市。同时乐道L90和乐道L60也将迎来产品升级与换新。随着产品布局的持续丰富与产品力的不断迭代，乐道品牌将为更多家庭用户带来高品质的用车体验，持续推动销量稳步增长。

William Li: 乐道品牌方面，L90自上市以来，凭借革新的产品体验、卓越的安全性能与优异的空间表现，获得大家庭用户的高度认可，成为2025年度纯电大型SUV的销量冠军。乐道品牌全球首款双舱超级大五座SUV L80将于第二季度正式上市。同时乐道L90和乐道L60也将迎来产品升级与换新。随着产品布局的持续丰富与产品力的不断迭代，乐道品牌将为更多家庭用户带来高品质的用车体验，持续推动销量稳步增长。

Speaker #2: For the So early dashing SUV , the Hong Kong SUV Elbling Is The

William Li: For the Onvo brand, its L90 has been very well received by large family users since its launch. Thanks to its innovative experience, outstanding safety performance, and exceptional space design, the Onvo L90 became the best-selling large battery electric SUV in 2025. Next, the Onvo L80, a large five-seat SUV with front and rear trunks, will be introduced in Q2. At the same time, L90 and L60 will also receive product upgrades and refreshes. With an expanding product lineup and continuous product upgrades, the Onvo brand will deliver the finest mobility experiences to more family users, driving steady sales growth.

[Translator]: For the Onvo brand, its L90 has been very well received by large family users since its launch. Thanks to its innovative experience, outstanding safety performance, and exceptional space design, the Onvo L90 became the best-selling large battery electric SUV in 2025. Next, the Onvo L80, a large five-seat SUV with front and rear trunks, will be introduced in Q2. At the same time, L90 and L60 will also receive product upgrades and refreshes. With an expanding product lineup and continuous product upgrades, the Onvo brand will deliver the finest mobility experiences to more family users, driving steady sales growth.

Speaker #3: For the brand it's L90 has been well has been very well received by large family users since its launch thanks to its innovative experience , outstanding safety , performance and exceptional space design .

Speaker #3: The onboard L90 became the best selling large battery electric SUV in 2025 . Next , the Humble Latte , a large five seat SUV with front and rear trunks , will be introduced in Q2 .

Speaker #3: At the same time, L90 and L60 will also receive product upgrades and refreshes, with an expanding product lineup and continuous product upgrades. The onboard brand will deliver the finest mobility experiences to more family users.

Speaker #3: Driving steady sales growth

Stanley Qu: 萤火虫品牌方面，作为2025年正式上市的全新品牌，凭借精准的市场定位、同级领先的产品力及创新的用户共创模式，连续七个月稳居高端小车市场销冠地位。萤火虫的用户关注度在更多的区域持续攀升。

William Li: 萤火虫品牌方面，作为2025年正式上市的全新品牌，凭借精准的市场定位、同级领先的产品力及创新的用户共创模式，连续七个月稳居高端小车市场销冠地位。萤火虫的用户关注度在更多的区域持续攀升。

Speaker #2: So we Then want In Pension .

William Li: The Firefly brand, officially launched in 2025, has quickly established itself thanks to its clear market positioning, class-leading product competitiveness, and innovative user co-creation model. In 2025, the Firefly ranked number one in the high-end small car market for seven consecutive months. User interest in the Firefly continues to grow across more regions.

[Translator]: The Firefly brand, officially launched in 2025, has quickly established itself thanks to its clear market positioning, class-leading product competitiveness, and innovative user co-creation model. In 2025, the Firefly ranked number one in the high-end small car market for seven consecutive months. User interest in the Firefly continues to grow across more regions.

Speaker #3: The Firefly brand officially launched in 2025 , has quickly established itself thanks to its clear market positioning , class leading product competitiveness and innovative user co-creation model .

Speaker #3: In 2025 . The Firefly ranked number one in the high end small car market for seven consecutive months . User interest in the Firefly continues to grow across more regions And our long term investments in core technologies are beginning to bear fruit .

Stanley Qu: 未来在核心技术领域的持续研发投入进入全面收获期。我们自研的全球首颗车规五纳米高阶自驾芯片、整车全域操作系统、天行智能底盘等智能汽车核心技术均实现量产上车。这些投入不仅拉开了产品的性能与体验上限，也带来了显著的技术降本成效，为公司构建长期竞争力提供了坚实底层支撑。

William Li: 未来在核心技术领域的持续研发投入进入全面收获期。我们自研的全球首颗车规五纳米高阶自驾芯片、整车全域操作系统、天行智能底盘等智能汽车核心技术均实现量产上车。这些投入不仅拉开了产品的性能与体验上限，也带来了显著的技术降本成效，为公司构建长期竞争力提供了坚实底层支撑。

William Li: Our long-term investments in core technologies are beginning to bear fruit. Key technologies such as the world's first automotive-grade 5-nanometer chip with smart driving, the full domain vehicle operating system, and the SkyRide intelligent chassis have all achieved mass production. These innovations not only elevate product performance and user experience, but also deliver significant cost advantages. Together, they form a strong foundation for the company's long-term competitiveness.

[Translator]: Our long-term investments in core technologies are beginning to bear fruit. Key technologies such as the world's first automotive-grade 5-nanometer chip with smart driving, the full domain vehicle operating system, and the SkyRide intelligent chassis have all achieved mass production. These innovations not only elevate product performance and user experience, but also deliver significant cost advantages. Together, they form a strong foundation for the company's long-term competitiveness.

Speaker #3: Key technologies such as the world's first automotive grade five nanometer chip for smart driving , the full domain vehicle operating system , and the Skyride Intelligent Chassis have all achieved the production .

Speaker #3: This innovations not only elevate product performance and user experience , but also deliver significant cost advantages . Together , they form a strong foundation for the company's long term competitiveness

Stanley Qu: 今年一月下旬，我们向用户推送了蔚来世界模型的全新版本。在这个版本中，我们在国内率先运用完整的闭环强化学习的训练范式，通过蔚来世界模型加闭环强化学习的领先技术架构，实现全域领航辅助体验上的显著优化。二月份，作为蔚来世界模型全新版本推送后的首个完整月，我们的智能辅助驾驶使用时长占比相较一月份增长了超过80%。随着新版本推送，全国超过两千个城区换电站支持领航换电功能，与城区领航辅助无缝连接，为用户提供行业唯一全自动的无感的加电体验。

William Li: 今年一月下旬，我们向用户推送了蔚来世界模型的全新版本。在这个版本中，我们在国内率先运用完整的闭环强化学习的训练范式，通过蔚来世界模型加闭环强化学习的领先技术架构，实现全域领航辅助体验上的显著优化。二月份，作为蔚来世界模型全新版本推送后的首个完整月，我们的智能辅助驾驶使用时长占比相较一月份增长了超过80%。随着新版本推送，全国超过两千个城区换电站支持领航换电功能，与城区领航辅助无缝连接，为用户提供行业唯一全自动的无感的加电体验。

Speaker #2: In the Wishing to be Often We

William Li: In late January this year, we released a new version of NIO World Model known as NWM. In this version, we adopted a training paradigm with complete closed-loop reinforcement learning, one of the first implementations of its kind in China. With the advanced architecture of World Model and closed-loop reinforcement learning, NWM has significantly enhanced the performance of Navigate on Pilot+, or NOP+, across all domains. February marks the first full month following the rollout of the new version. During the month, the share of driving time using smart driving increased by more than 80% compared with January. With this update, over 2000 Power Swap stations in urban areas now support Power Swap Pilot, seamlessly integrating with urban NOP+ and offering users the industry's only fully automated recharging experience.

[Translator]: In late January this year, we released a new version of NIO World Model known as NWM. In this version, we adopted a training paradigm with complete closed-loop reinforcement learning, one of the first implementations of its kind in China. With the advanced architecture of World Model and closed-loop reinforcement learning, NWM has significantly enhanced the performance of Navigate on Pilot+, or NOP+, across all domains. February marks the first full month following the rollout of the new version. During the month, the share of driving time using smart driving increased by more than 80% compared with January. With this update, over 2000 Power Swap stations in urban areas now support Power Swap Pilot, seamlessly integrating with urban NOP+ and offering users the industry's only fully automated recharging experience.

Speaker #3: In late January this year, we released a new version of the New World model known as NWN. In this version, we adopted a training paradigm with complete closed-loop reinforcement learning.

Speaker #3: One of the first implementations of its kind in China. With the advanced architecture of World Model and closed-loop reinforcement learning, and W.M.

Speaker #3: has significantly enhanced the performance of navigate on Pilot , where NLP across all domains . February marked the first full month following the rollout of the new version .

Speaker #3: During the month, the share of driving time using smart driving increased by more than 80% compared with January. With this update, over 2,000 power swap stations in urban areas now support power swap pilot, seamlessly integrating with urban and NLP, and offering users the industry's only fully automated recharging experience.

Stanley Qu: 目前，乐道智能驾驶已实现在城区领航辅助、智能泊车辅助及智能安全辅助领域的端到端化体验升级。今年，我们也将对乐道全系产品的智能硬件和软件系统进行迭代升级，让更多用户共享全栈自研的技术成果。

William Li: 目前，乐道智能驾驶已实现在城区领航辅助、智能泊车辅助及智能安全辅助领域的端到端化体验升级。今年，我们也将对乐道全系产品的智能硬件和软件系统进行迭代升级，让更多用户共享全栈自研的技术成果。

Speaker #2: More than Two . Indian

William Li: ONVO Smart Driving has also achieved end-to-end upgrades across Navigate on Autopilot for urban routes, parking assist, and smart safety. This year, ONVO will further upgrade the smart driving hardware and software systems across its lineup, allowing more users to benefit from our full-stack proprietary technologies.

[Translator]: ONVO Smart Driving has also achieved end-to-end upgrades across Navigate on Autopilot for urban routes, parking assist, and smart safety. This year, ONVO will further upgrade the smart driving hardware and software systems across its lineup, allowing more users to benefit from our full-stack proprietary technologies.

Speaker #3: Almost smart driving has also achieved end to end upgrade across Navigate on Autopilot for urban roads . Parking Assist and smart safety . This year , onward will further upgrade the smart driving hardware and software systems across its lineup , allowing more users to benefit from our full stack proprietary technologies

Stanley Qu: 销售网络方面，截至目前，我们开设了一百七十一家蔚来中心和三百九十五家蔚来空间，乐道门店数量达四百二十家。服务网络方面，我们已开设了四百零六家服务中心和七十五家交付中心。2026年，蔚来、乐道、Firefly萤火虫在深耕重点市场的同时，将联合布局下沉市场，通过三品牌联合的Sky Store门店，对更多地级市进行高效的销售服务网络的覆盖。

William Li: 销售网络方面，截至目前，我们开设了一百七十一家蔚来中心和三百九十五家蔚来空间，乐道门店数量达四百二十家。服务网络方面，我们已开设了四百零六家服务中心和七十五家交付中心。2026年，蔚来、乐道、Firefly萤火虫在深耕重点市场的同时，将联合布局下沉市场，通过三品牌联合的Sky Store门店，对更多地级市进行高效的销售服务网络的覆盖。

Speaker #2: Those who Are

William Li: On the sales side, we currently operate 171 NIO House and 395 NIO Space, while Onvo has 420 stores. For the service network, we have 406 service centers and 75 delivery centers. In 2026, the three brands will continue to strengthen their presence in key markets, while expanding into more lower-tier markets through Sky Stores, which serve as a shared sales and service stores for all three brands.

[Translator]: On the sales side, we currently operate 171 NIO House and 395 NIO Space, while Onvo has 420 stores. For the service network, we have 406 service centers and 75 delivery centers. In 2026, the three brands will continue to strengthen their presence in key markets, while expanding into more lower-tier markets through Sky Stores, which serve as a shared sales and service stores for all three brands.

Speaker #3: On the south side, we currently operate 171 new houses and 395 new spaces, while Onward has 420 stores for the service network.

Speaker #3: We have 406 service centers and 75 delivery centers . In 2026 , the three brands will continue to strengthen their presence in key markets while expanding into more lower tier markets through Sky stores , which serve as a shared sales and service stores for all three brands

Stanley Qu: 充换电网络方面，截至目前，我们全球已经累计布局3,845座换电站，累计建成超过28,000根超充桩和目的地充电桩。今年2月6日，我们实现了累计提供超一亿次换电服务，此项里程碑标志着换电模式已获得用户与市场的充分规模化验证。在今年春节期间，换电次数年创新高，创下单日突破17.7万次的纪录。换电网络是解决车电不同售的体系化创新方案，同时作为储能设施，也正在成为新型电力系统的重要组成部分。长期来看，换电网络的持续布局，在提升电动车用户体验的同时，也将为公司的长期商业成功带来独特且难以复制的竞争优势。

William Li: 充换电网络方面，截至目前，我们全球已经累计布局3,845座换电站，累计建成超过28,000根超充桩和目的地充电桩。今年2月6日，我们实现了累计提供超一亿次换电服务，此项里程碑标志着换电模式已获得用户与市场的充分规模化验证。在今年春节期间，换电次数年创新高，创下单日突破17.7万次的纪录。换电网络是解决车电不同售的体系化创新方案，同时作为储能设施，也正在成为新型电力系统的重要组成部分。长期来看，换电网络的持续布局，在提升电动车用户体验的同时，也将为公司的长期商业成功带来独特且难以复制的竞争优势。

Speaker #2: The most, Yu Qu, Q1, and Hong Kong.

William Li: As of now, we have 3,815 Power Swap Stations and more than 28,000 power chargers, and destination chargers worldwide. On 6 February 2026, the company reached the milestone of 100 million cumulative swaps, which demonstrates that battery swapping has been widely validated by both users and the market. During the Chinese New Year holiday, our swap volume reached new highs, surpassing 177,000 swaps in a single day. Power Swap is a systematic and innovative solution to addressing the mismatched life cycles of vehicles and batteries. Serving also as a form of energy storage, it is increasingly becoming an integral part of the new power system. Over time, the continued expansion of the Power Swap network will enhance the EV user experience and provide a unique, defensible competitive advantage for the company's long-term success.

[Translator]: As of now, we have 3,815 Power Swap Stations and more than 28,000 power chargers, and destination chargers worldwide. On 6 February 2026, the company reached the milestone of 100 million cumulative swaps, which demonstrates that battery swapping has been widely validated by both users and the market. During the Chinese New Year holiday, our swap volume reached new highs, surpassing 177,000 swaps in a single day. Power Swap is a systematic and innovative solution to addressing the mismatched life cycles of vehicles and batteries. Serving also as a form of energy storage, it is increasingly becoming an integral part of the new power system. Over time, the continued expansion of the Power Swap network will enhance the EV user experience and provide a unique, defensible competitive advantage for the company's long-term success.

Speaker #3: As of now , we have 3815 power swap stations and more than 28,000 power chargers and destination chargers worldwide . On February 6th , 2026 , the company reached the milestone of 100 million cumulative swaps , which demonstrates that battery swapping has been widely validated by both users and the market .

Speaker #3: During the Chinese New Year holiday , our swap volume reached new highs , surpassing 177,000 swaps in a single day . Power swap is a systematic and innovative solution to addressing the mismatched life cycles of vehicles and batteries , serving also as a form of energy storage .

Speaker #3: It is becoming an integral part of the new power system . Over time , the continued expansion of the power swap network will enhance the EV user experience and provide a unique , defensible , competitive advantage for the company's long term success

Stanley Qu: 全球布局方面，我们在专注深耕中国市场的同时，也将稳步推进全球化布局。目前，萤火虫及其右座版本已进入十个国家。2026年，我们将继续通过国家总代理模式，以萤火虫作为先行品牌，稳步拓展海外市场。

William Li: 全球布局方面，我们在专注深耕中国市场的同时，也将稳步推进全球化布局。目前，萤火虫及其右座版本已进入十个国家。2026年，我们将继续通过国家总代理模式，以萤火虫作为先行品牌，稳步拓展海外市场。

Speaker #2: Yu Qu Shenzhen

William Li: While continuing to deepen our presence in the Chinese market, we are also steadily advancing our global strategy. So far, the Firefly, including its right-hand drive version, is available in 10 countries. In 2026, we will continue to expand overseas through the country distributor model, with Firefly serving as a leading brand.

[Translator]: While continuing to deepen our presence in the Chinese market, we are also steadily advancing our global strategy. So far, the Firefly, including its right-hand drive version, is available in 10 countries. In 2026, we will continue to expand overseas through the country distributor model, with Firefly serving as a leading brand.

Speaker #3: While continuing to deepen our presence in the Chinese market , we are also steadily advancing our global strategy . So far , the Firefly , including its right hand drive version , is available in ten countries .

Speaker #3: In 2026, we will continue to expand overseas through the country distributor model, with Firefly serving as a leading brand.

Stanley Qu: 2026年2月，我们的自驾芯片子公司神基公司完成首轮股权融资协议签署，融资金额22.57亿元人民币，投后估值超80亿元。神基公司的芯片技术、研发能力及商业化前景，获得了多家产业资本和行业市场化投资机构的认可。此次融资将有利于神基公司持续研发和推广高端高竞争力的芯片产品，支撑未来在自动驾驶、具身智能等领域的长远布局。

William Li: 2026年2月，我们的自驾芯片子公司神基公司完成首轮股权融资协议签署，融资金额22.57亿元人民币，投后估值超80亿元。神基公司的芯片技术、研发能力及商业化前景，获得了多家产业资本和行业市场化投资机构的认可。此次融资将有利于神基公司持续研发和推广高端高竞争力的芯片产品，支撑未来在自动驾驶、具身智能等领域的长远布局。

Speaker #2: In Asia and the Tohoku Yuan Changing the Shanghai Golden champion

William Li: Last month, our smart driving chip subsidiary, GeniTech, or Shenji, signed an agreement for its first round of equity financing. The round raised RMB 2.257 billion, giving Shenji a post-money valuation of more than RMB 8 billion. Shenji's chip technology, R&D capabilities, and commercialization outlook have been widely recognized by multiple leading industry investors and top market institutions. This financing will support Shenji's continued development of high-performance chip products and strengthen our long-term positioning in autonomous driving and embodied AI.

[Translator]: Last month, our smart driving chip subsidiary, GeniTech, or Shenji, signed an agreement for its first round of equity financing. The round raised RMB 2.257 billion, giving Shenji a post-money valuation of more than RMB 8 billion. Shenji's chip technology, R&D capabilities, and commercialization outlook have been widely recognized by multiple leading industry investors and top market institutions. This financing will support Shenji's continued development of high-performance chip products and strengthen our long-term positioning in autonomous driving and embodied AI.

Speaker #3: Last month, our smart driving chip subsidiary Genetec, or Shenzhen, signed an agreement for its first round of equity financing. The round raised RMB 2.257 billion.

Speaker #3: Giving Shanxi a post-money valuation of more than 8 billion RMB. Zhengzhou Chip technology R&D capabilities and commercialization outlook have been widely recognized by multiple leading industry investors and top market institutions.

Speaker #3: This financing will support Shenzhen's continued development of high-performance chip products and strengthen our long-term positioning in autonomous driving and embodied AI. The company has now entered the third stage of its development, embarking on a new cycle of high-speed growth.

Stanley Qu: 目前，公司已经正式迈入发展的第三个阶段，开启新一轮高速增长周期。

William Li: 目前，公司已经正式迈入发展的第三个阶段，开启新一轮高速增长周期。

William Li: The company has now entered the third stage of its development, embarking on a new cycle of high-speed growth.

[Translator]: The company has now entered the third stage of its development, embarking on a new cycle of high-speed growth.

Stanley Qu: 我们将继续围绕智能电动汽车十二项全栈核心技术做坚决持续的投入，确保产品与技术保持领先优势。2026年，我们将推出三款全新车型，进一步完善产品矩阵，持续提升我们在高端大车市场的份额。我们也会坚决投入充换电基础设施建设，持续提升充换电网络的能源商业运营能力。同时，我们也将继续加强销售服务网络的优化升级，确保整个体系具备更强的韧劲，能够应对日益激烈的市场竞争。

William Li: 我们将继续围绕智能电动汽车十二项全栈核心技术做坚决持续的投入，确保产品与技术保持领先优势。2026年，我们将推出三款全新车型，进一步完善产品矩阵，持续提升我们在高端大车市场的份额。我们也会坚决投入充换电基础设施建设，持续提升充换电网络的能源商业运营能力。同时，我们也将继续加强销售服务网络的优化升级，确保整个体系具备更强的韧劲，能够应对日益激烈的市场竞争。

Speaker #2: And To

William Li: We will continue to make determined and sustained investments in the 12 full-stack technology domains for smart EVs, ensuring our leadership in both products and technology. In 2026, we will launch 3 new models, further strengthening our product portfolio and expanding our share in the premium large vehicle segment. We will also continue investing in charging and swapping infrastructure while improving the commercial operations of our infrastructure network. In addition, we will further strengthen our sales and service network, ensuring that our overall system remains resilient in an increasingly competitive market.

[Translator]: We will continue to make determined and sustained investments in the 12 full-stack technology domains for smart EVs, ensuring our leadership in both products and technology. In 2026, we will launch 3 new models, further strengthening our product portfolio and expanding our share in the premium large vehicle segment. We will also continue investing in charging and swapping infrastructure while improving the commercial operations of our infrastructure network. In addition, we will further strengthen our sales and service network, ensuring that our overall system remains resilient in an increasingly competitive market.

Speaker #3: We will continue to make determined and sustained investments in the 12 full-stack technology domains for smart EVs, ensuring our leadership in both products and technology.

Speaker #3: In 2026 , we will launch three new models , further strengthening our product portfolio and expanding our share in the premium large vehicle segment .

Speaker #3: We will also continue investing in charging and swapping infrastructure while improving the commercial operations of our infrastructure network. In addition, we will further strengthen our sales and network, ensuring that our overall system remains resilient in an increasingly competitive market.

Stanley Qu: 2026年，我们继续深化组织变革，不断完善以用户价值创造为核心的基本经营单元机制，打造更高效的全员经营体系，强化成本控制和ROI，保持用户企业的初心，以更具竞争力的产品与技术、更优质的服务与更稳健的经营业绩，回馈用户、股东及投资者的信任与支持。

William Li: 2026年，我们继续深化组织变革，不断完善以用户价值创造为核心的基本经营单元机制，打造更高效的全员经营体系，强化成本控制和ROI，保持用户企业的初心，以更具竞争力的产品与技术、更优质的服务与更稳健的经营业绩，回馈用户、股东及投资者的信任与支持。

Speaker #2: The Shanghai ROI is Yu Qu in the tissue in of Yu Qu . Q2 . The

William Li: In 2026, we will continue to deepen organizational transformation, refine the CBU mechanism centered on user value creation, and strengthen our company-wide business system with heightened ROI awareness and improved cost control. We remain committed to our original aspiration as a user enterprise, delivering more competitive products and technologies, better services and stronger business performance to honor the trust and support of our users, shareholders and investors.

[Translator]: In 2026, we will continue to deepen organizational transformation, refine the CBU mechanism centered on user value creation, and strengthen our company-wide business system with heightened ROI awareness and improved cost control. We remain committed to our original aspiration as a user enterprise, delivering more competitive products and technologies, better services and stronger business performance to honor the trust and support of our users, shareholders and investors.

Speaker #3: In 2026, we will continue to deepen organizational transformation. We will refine the CPU mechanism centered on user value creation, and strengthen our company-wide business system with heightened ROI awareness and improved cost control.

Speaker #3: We remain committed to our original aspiration as a user enterprise, delivering more competitive products and technology, better services, and stronger business performance.

Speaker #3: To honor the trust and support of our users , shareholders and investors .

Stanley Qu: Thank you, William. Let's now review our key financial results for Q4 of 2025. Our total revenues reached CNY 34.7 billion, up 75.9% year-over-year, and 59% quarter-over-quarter. Vehicle sales were CNY 31.6 billion, representing a strong increase of 80.9% year-over-year and 64.6% quarter-over-quarter. The year-over-year and quarter-over-quarter growth were mainly due to increased deliveries and higher average selling price, driven by positive product mix effect. Other sales were CNY 3 billion, up 36.6% year-over-year, and 17.5% quarter-over-quarter. The year-over-year growth was driven by increased sales of used cars, technical R&D services, and sales of parts, accessories, and after-sales vehicle services.

Speaker #2: Thank you . Wilhelm . Let's now review our key financial results for the fourth quarter of 2025 . total revenues reached 34.7 billion RMB , up 75.9% year over year , and 59% quarter over quarter .

Speaker #2: Vehicle Our sales were 31.6 billion RMB , representing a strong increase of 80.9% year over year . And 64.6% quarter over quarter . The year over year and quarter over quarter growth were mainly due to increased deliveries and higher average selling price , driven by positive product mix effect .

Speaker #2: Other sales were 3 billion RMB , up 36.6% year over year , and 17.5% quarter over quarter . The year over year growth was driven by increased sales of used cars , technical R&D services and sales of parts , accessories and aftersales vehicle services .

Stanley Qu: While the quarter-over-quarter increase was mainly due to the increase in revenues from technical R&D services and sales of parts, accessories, and after-sales vehicle services. Looking at margins, vehicle margin was 18.1% compared with 13.1% in Q4 last year, and 14.7% last quarter. The year-over-year and quarter-over-quarter improvements were driven by positive product mix effect with the wrap-up of higher margin products. Moreover, gross margin from other sales reached a record high of 11.9% during the quarter, reflecting the continuing enhancement in the profitability of our user base-driven service and community-related businesses. With the improvement in both vehicle margin and other sales margin, overall gross margin increased to 17.5%, compared with 11.7% in Q4 last year, and 13.9% last quarter.

Speaker #2: While the quarter over quarter increase was mainly due to the increase in revenues from technical R&D services and sales of parts , accessories and after sales vehicle services .

Speaker #2: Looking at margins , vehicle margin was 18.1% compared with 13.1% in Q4 last year and 14.7% last quarter . The year over year quarter over quarter improvement were driven by positive product mix effect , with the wrap up of higher margin and Moreover , gross margin from other sales reached a record high of 11.9% during the quarter , reflecting the continuing enhancements in the profitability of our user base driven service and community related businesses .

Speaker #2: With the improvement in both vehicle margin and other sales margin, overall gross margin increased to 17.5% compared with 11.7% in Q4 last year.

Speaker #2: And 13.9% last products , with the implementation of cell business unit mechanisms and the progress of organizational optimization , we are seeing a sustained improvement in operational efficiency , R&D expenses were 2 billion RMB , decreased 44.3% year over year , and 15.3% quarter over quarter .

Stanley Qu: With the implementation of Cell Business Unit mechanisms and the progress of organizational optimization, we are seeing a sustained improvement in operational efficiency. R&D expenses were RMB 2 billion, decreased 44.3% year-over-year and 15.3% quarter-over-quarter. The year-over-year decrease mainly driven by lower personnel costs in R&D functions due to organizational optimization and a decreased design and development costs from different development stages. The quarter-over-quarter decrease was primarily driven by lower personnel costs in R&D functions due to organizational optimization. SG&A expenses were RMB 3.5 billion, decreased 27.5% year-over-year, and 15.5% quarter-over-quarter.

Speaker #2: The year over year decrease , mainly driven by lower personnel costs in R&D functions due to organizational optimization and decreased design and development costs from different development stages .

Speaker #2: The quarter over quarter decrease was primarily driven by lower personnel costs in R&D functions due to organizational optimization . Expenses were 3.5 billion RMB , decreased 27.5% year over year , and 15.5% quarter over quarter .

Stanley Qu: The year-over-year and quarter-over-quarter decreases were mainly driven by a decrease in personnel and related costs in marketing and other supporting functions as a result of organizational optimization, as well as the decrease in sales and marketing activities. In the fourth quarter, we achieved an important milestone, our first-ever quarterly profit. Profit from operations was RMB 0.8 billion, compared with loss from operations of RMB 6 billion in Q4 last year, and RMB 3.5 billion last quarter. Excluding share-based compensation expenses, adjusted profit from operations was RMB 1.25 billion. Net profit was RMB 0.3 billion, compared with net loss of RMB 7.1 billion in Q4 last year and RMB 3.5 billion last quarter. Excluding share-based compensation expenses, adjusted non-GAAP net profit was RMB 0.7 billion.

Speaker #2: The year-over-year and quarter-over-quarter decreases were mainly driven by a decrease in personnel and related costs in marketing and other supporting functions.

Speaker #2: As a result of organizational optimization , as well as the decrease in sales and marketing activities . In the fourth quarter , we achieved an important milestone .

Speaker #2: Our first ever quarterly profit . Profit from operations was 0.8 billion RMB , compared with loss from operations of 6 billion RMB in Q4 last year and 3.5 billion RMB last quarter .

Speaker #2: Excluding share-based compensation expenses, adjusted profit from operations was RMB 1.25 billion. Net profit was RMB 0.3 billion, compared with a net loss of RMB 7.1 billion in Q4 last year.

Speaker #2: And 3.5 billion RMB last quarter . Excluding share based compensation expenses , adjusted net profit was 0.7 billion RMB . Furthermore , we delivered positive operating cash flow and positive free cash flow this quarter .

Stanley Qu: Furthermore, we delivered positive operating cash flow and positive free cash flow this quarter. We ended this quarter with a stronger balance sheet, with total cash and cash equivalents, restricted cash, short-term investments, and long-term time deposits amounting to CNY 45.9 billion. That wraps up our prepared remarks. For more information and the details of our unaudited Q4 and full year 2025 financial results, please refer to our earnings press release. Now I will turn the call over to the operator to start our Q&A session. Operator?

Speaker #2: We ended the quarter with a strong , stronger balance sheet with total cash and cash equivalents . Restricted cash , short term investments and long term time deposits amounting to 45.9 billion RMB .

Speaker #2: That wraps up our prepared remarks . For more information and details of our unaudited fourth quarter and full year 2020 financial results , please refer to our earnings press release .

Speaker #2: Now I will turn the call over to the operator to start our Q&A session Operator .

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

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

Speaker #1: If you wish to cancel your request, please press star two. For the benefit of all participants on today's call, please limit yourself to two questions.

Speaker #1: And if you have additional questions , you can reenter the Q Your first question comes from Tim Zhao with Morgan Stanley

Tim Hsiao: Hi, management team. This is Tim Hsiao from Morgan Stanley. Thanks for taking my questions, and congratulations for achieving the first ever quarterly profitability. I have two questions. The first question is about the product and volume sales growth target. Because during the call, I think William Li just mentioned he is going to launch ES9, ET5 series and the ES6 series facelift and L80 in Q2. What's our plan for second half? Could we have a quick update on the model pipeline for second half? And separately, given the challenge auto industry backdrop, is NIO still maintaining annual volume growth target of 40% to 50% this year? That's my first question. Thank you.

Speaker #4: I on management team , this is Tim from Morgan Stanley . Thanks for taking my questions . And congratulations for achieving the first ever quarterly profitability I have two questions .

Speaker #4: The first question is about the product . And sales growth target , because during the call , I think really just mentioned is going to launch is five series .

Speaker #4: And six Series facelift and L80 in the second quarter. So what's our plan for the second half? Could we have a quick update on the model pipeline for the second half? And separately, given the challenge and the auto industry backdrop, it's new.

Speaker #4: Are you still maintaining the annual volume growth target of 40% to 50% this year? That's my first question. Thank you.

Stanley Qu: 谢谢Tim。确实今年一季度总体的市场还是非常有挑战的，我们也看到了行业的这个数字。我们总体上认为今年中国总体的乘用车市场和去年相比的话，是会有所下降，会小幅下降。但是如果去看新能源车的话，当然这个渗透率还会进一步提升。特别在这里边的话，BEV就是纯电的增长，我们认为会非常的强劲，因为事实上去年整个新能源汽车的增长就是由BEV来驱动，它在整个新车里面的销量从26%到了33%。所以，因为基础设施和技术的这样的一些进步，纯电整个的增长，我们认为今年还是会保持比较快速的一个增长。

William Li: 谢谢Tim。确实今年一季度总体的市场还是非常有挑战的，我们也看到了行业的这个数字。我们总体上认为今年中国总体的乘用车市场和去年相比的话，是会有所下降，会小幅下降。但是如果去看新能源车的话，当然这个渗透率还会进一步提升。特别在这里边的话，BEV就是纯电的增长，我们认为会非常的强劲，因为事实上去年整个新能源汽车的增长就是由BEV来驱动，它在整个新车里面的销量从26%到了33%。所以，因为基础设施和技术的这样的一些进步，纯电整个的增长，我们认为今年还是会保持比较快速的一个增长。

Speaker #2: Yan

Speaker #5: We also Believe Can See that Yan has The

William Li: Thank you for the question. It's true that the entire industry has encountered challenges in Q1 of this year as a lot of industry numbers and data have already shown the market and the environment. For this year, we also believe that the size of the Chinese passenger vehicle market will also see a slight decline from last year. Within China's passenger vehicle market, we believe that the penetration rate of the new energy vehicles will continue to grow. Among the new energy vehicles, battery electric vehicle will see a stronger growing momentum. Actually, last year, the increase of the new energy vehicle market as a whole is largely driven by the increase of the BEV models. The penetration rate of BEV increased by 26% to 33%. This is largely driven by the BEV models. As technology and infrastructure network continue to mature, we believe that the BEV market or segment will maintain the strong momentum also this year.

[Translator]: Thank you for the question. It's true that the entire industry has encountered challenges in Q1 of this year as a lot of industry numbers and data have already shown the market and the environment. For this year, we also believe that the size of the Chinese passenger vehicle market will also see a slight decline from last year. Within China's passenger vehicle market, we believe that the penetration rate of the new energy vehicles will continue to grow. Among the new energy vehicles, battery electric vehicle will see a stronger growing momentum. Actually, last year, the increase of the new energy vehicle market as a whole is largely driven by the increase of the BEV models.

Speaker #3: Thank you for the question. It's true that the entire industry has encountered challenges in the first quarter of this year. As a lot of industry numbers and data have already shown, the market and the environment for this year—

Speaker #3: We also believe that the size of the Chinese passenger vehicle market will also see a slight decline from last year , but within the China's passenger vehicle market , we believe that the penetration rate of the new energy vehicles will continue to grow .

Speaker #3: And among the new energy vehicles , battery electric vehicle will see a stronger growing momentum . Actually , last year , the increase of the new energy vehicle market as a whole is largely driven by the increase of the above models .

[Translator]: The penetration rate of BEV increased by 26% to 33%. This is largely driven by the BEV models. As technology and infrastructure network continue to mature, we believe that the BEV market or segment will maintain the strong momentum also this year.

Speaker #3: The penetration rate of above increased by 26% to 33% . This is largely driven by the above models , and as technology and infrastructure network continue to mature , we believe that the above market will segment will maintain the strong momentum .

Speaker #3: Also this year

Stanley Qu: 特别要强调的是，在高端市场，纯电的新势已经开始建立，在高端市场的纯电的渗透率，这个应该说是在去年已经实现了翻倍。2025年成交价三十万以上的高端市场，纯电的同比增长是58%，增程的是同比下降了4%。那么高端市场的BEV的渗透率从2024年Q4的14%上升到了2025年Q4的27%。

William Li: 特别要强调的是，在高端市场，纯电的新势已经开始建立，在高端市场的纯电的渗透率，这个应该说是在去年已经实现了翻倍。2025年成交价三十万以上的高端市场，纯电的同比增长是58%，增程的是同比下降了4%。那么高端市场的BEV的渗透率从2024年Q4的14%上升到了2025年Q4的27%。

Speaker #5: In the Golden Is Golden

William Li: More specifically for the BEV segment, we also see a good potential within the premium segment as the perception and the awareness on the premium battery electric vehicle model has already established in that segment. The penetration will also be growing, driven by that, for all the vehicles priced above CNY 300,000, we actually see an increase of BEV penetration of 58% year over year, while for the rest model, the penetration within that price segment actually decreased by 4%. The overall BEV penetration in the premium segment also increased from only 14% in Q4 2024 to 27% in Q4 2025.

[Translator]: More specifically for the BEV segment, we also see a good potential within the premium segment as the perception and the awareness on the premium battery electric vehicle model has already established in that segment. The penetration will also be growing, driven by that, for all the vehicles priced above CNY 300,000, we actually see an increase of BEV penetration of 58% year over year, while for the rest model, the penetration within that price segment actually decreased by 4%. The overall BEV penetration in the premium segment also increased from only 14% in Q4 2024 to 27% in Q4 2025.

Speaker #3: And also more specifically for the segment , we also see a good potential within the premium segment as the perception and the awareness on the premium battery electric vehicle model has already established in that segment .

Speaker #3: The penetration will also be growing driven by that , for all the vehicles priced above 300,000 RMB , we actually see an increase of above penetration of 58% year over year , while for the risk model , the penetration within that segment actually decreased by 4% and the overall penetration in the premium segment also increased from only 14% in Q4 2024 to 27% in Q4 2025 .

Stanley Qu: 其中，大三排和大五座SUV的市场，确实是迎来了纯电的黄金时代。25年9月以来，纯电大三排销量连续五个月领跑所有的能源形式。25年下半年，纯电大三排SUV的销量，是同比增长了超过350%，增程是同比下滑了6%。那么，我们其实从这个趋势的角度来看，我们现在的产品节奏，和这样的一个趋势的话，是匹配的，这也是我们对今年，这个整个的增长是非常有信心的这个所在，原因所在。

William Li: 其中，大三排和大五座SUV的市场，确实是迎来了纯电的黄金时代。25年9月以来，纯电大三排销量连续五个月领跑所有的能源形式。25年下半年，纯电大三排SUV的销量，是同比增长了超过350%，增程是同比下滑了6%。那么，我们其实从这个趋势的角度来看，我们现在的产品节奏，和这样的一个趋势的话，是匹配的，这也是我们对今年，这个整个的增长是非常有信心的这个所在，原因所在。

Speaker #5: The And The Woman Could choose the In a In the

William Li: More specifically on the large three-row battery electric SUVs as well as large five-seater battery electric SUVs, we also see a strong momentum last year. Since September last year, the large three-row battery electric SUV model has been leading the segment across all powertrain and energy types for five consecutive months. In the second half of last year, the BEV sales actually increased by 350%, while for rest, it actually decreased by 6%. We believe that with this trend where BEV is actually growing within the segment, our product launch cadence is also in a perfect match with the macro trend in the industry. This is also where we have the confidence for the continuous growth this year.

[Translator]: More specifically on the large three-row battery electric SUVs as well as large five-seater battery electric SUVs, we also see a strong momentum last year. Since September last year, the large three-row battery electric SUV model has been leading the segment across all powertrain and energy types for five consecutive months. In the second half of last year, the BEV sales actually increased by 350%, while for rest, it actually decreased by 6%. We believe that with this trend where BEV is actually growing within the segment, our product launch cadence is also in a perfect match with the macro trend in the industry. This is also where we have the confidence for the continuous growth this year.

Speaker #3: And more specifically on the large cerebral battery . Battery electric SUVs as well as the large five seater battery electric SUV . We also see a strong momentum last year in September last year was since September last year .

Speaker #3: The large three row battery electric SUV model has been leading the segment across all powertrain and energy types for five consecutive months , and in the second half of last year , the sales actually increased by 350% , while for reef , it actually decreased by 6% .

Speaker #3: So we believe that with this trend , we're actually growing within the segment . Our product launch cadence is also in a perfect match with the micro trend in the industry .

Speaker #3: This is also where we have the confidence for the continuous growth this year .

Stanley Qu: 今年我们的三款全新的产品，ES9，就是行政旗舰SUV，我们科技行政SUV旗舰，这个是今年二季度会上市，四月九号我们就会开这个产品技术的发布会。我们基于ES8平台的这样一个大五座的SUV在三季度会上市。我们这个乐道的L80在二季度会上市。那这样的话呢，就完成了我们在这五款——加上我们原来的L90，现在已经上市的L90和正在热销的全新ES8，我们这五款大型SUV，中大型和大型的SUV，我们就完成了这样的一个在高端的大型SUV里面的全面的布局，给我们全年的销量增长打下了一个非常好的基础。

William Li: 今年我们的三款全新的产品，ES9，就是行政旗舰SUV，我们科技行政SUV旗舰，这个是今年二季度会上市，四月九号我们就会开这个产品技术的发布会。我们基于ES8平台的这样一个大五座的SUV在三季度会上市。我们这个乐道的L80在二季度会上市。那这样的话呢，就完成了我们在这五款——加上我们原来的L90，现在已经上市的L90和正在热销的全新ES8，我们这五款大型SUV，中大型和大型的SUV，我们就完成了这样的一个在高端的大型SUV里面的全面的布局，给我们全年的销量增长打下了一个非常好的基础。

Speaker #5: Now the The ESG , the SUV , SUV Now is back to the SUV Woman . The Woman During The woman can SUV SUV And the SUV Woman .

Speaker #5: And the Xiaoliang

William Li: Also as mentioned, actually on 9 April, we are going to host the technological launch event for the new ES9, which is our flagship executive SUV, also a technological flagship. The official launch of the vehicle of the new ES9 will be in Q2 this year. In the meantime, in Q3, we are going to introduce the large five-seater SUV developed on the same platform as the all-new ES8. In Q2 this year for the AVATR brand, we are going to introduce the L80, which is a large five-seater SUV. Together with the L90, as well as the all-new ES8 that are already in the market and also popular among the users, we will be having five mid-size and mid-to-large SUV models to complete our product lineup in the large SUV, premium model.

[Translator]: Also as mentioned, actually on 9 April, we are going to host the technological launch event for the new ES9, which is our flagship executive SUV, also a technological flagship. The official launch of the vehicle of the new ES9 will be in Q2 this year. In the meantime, in Q3, we are going to introduce the large five-seater SUV developed on the same platform as the all-new ES8. In Q2 this year for the AVATR brand, we are going to introduce the L80, which is a large five-seater SUV. Together with the L90, as well as the all-new ES8 that are already in the market and also popular among the users, we will be having five mid-size and mid-to-large SUV models to complete our product lineup in the large SUV, premium model.

Speaker #3: And also as mentioned in Q2 , this actually on April 9th , we are going to host the technological launch event for the New Year's night , which is our flagship executive SUV .

Speaker #3: Also a technological flagship . And the official launch of the vehicle of the new S9 will be in Q2 this year . And in the meantime , in Q3 , we are going to introduce the large five seater SUV developed on the same platform as the S8 .

Speaker #3: And in Q2 this year , for the onward brand , we are going to introduce the Oti , which is a large five seater SUV .

Speaker #3: Together L90 , as well as the all estate that are already in the market and also popular among the users . We will be having five mid-size and mid to large SUV models to complete our product lineup in the large SUV premium model , and this is also where we believe that they will be the key drivers for our full year growth .

William Li: This is also where we believe that it will be the key drivers for our full year growth.

[Translator]: This is also where we believe that it will be the key drivers for our full year growth.

Stanley Qu: 我们未来的ET5、ET5T、ES6、EC6在所在的细分市场，目前都还是处在一个领先的、销量领先的位置，它的需求还是非常稳健、稳定的。那么L60呢，在所在的细分市场，事实上也是在一个前三名的这样一个位置。那我们今年还有对它的一个改款，那我们相信这个改款以后的表现呢，是值得期待的。那特别值得说的是我们萤火虫，Firefly萤火虫在高端小车市场，它的这个市场的份额，这个是非常高的这样一个市场份额。那我们也看到了它的需求，是从春节回来以后，它恢复的是非常非常的快。那对全年的销量预期，我们也是非常有信心的。所以总的来说的话呢，我们今年对于全年40%到50%的这样一个增长，我们还是非常有信心。那一到二月是行业的一个淡季，但是我们呢，这个仍然是保持了同比的一个增长。那我们一季度目前给的指引呢，也是同比增长90%以上，所以总体来说，全年的销量目标，我们还是非常有信心。

William Li: 我们未来的ET5、ET5T、ES6、EC6在所在的细分市场，目前都还是处在一个领先的、销量领先的位置，它的需求还是非常稳健、稳定的。那么L60呢，在所在的细分市场，事实上也是在一个前三名的这样一个位置。那我们今年还有对它的一个改款，那我们相信这个改款以后的表现呢，是值得期待的。那特别值得说的是我们萤火虫，Firefly萤火虫在高端小车市场，它的这个市场的份额，这个是非常高的这样一个市场份额。那我们也看到了它的需求，是从春节回来以后，它恢复的是非常非常的快。那对全年的销量预期，我们也是非常有信心的。所以总的来说的话呢，我们今年对于全年40%到50%的这样一个增长，我们还是非常有信心。那一到二月是行业的一个淡季，但是我们呢，这个仍然是保持了同比的一个增长。那我们一季度目前给的指引呢，也是同比增长90%以上，所以总体来说，全年的销量目标，我们还是非常有信心。

Speaker #5: Now , the E2 , E2 , Yu Qu in certain Ways The Five . A Are a Woman in The Woman Is The Xiao Yang

William Li: Also for the ET5, ET5T, ES6, and EC6, they are also leading in their respective segments also with steady demand. For the ONVO L60, it is also the top three among the peers in its segment. Very soon, we are also going to introduce updates on the L60, and we can really look forward to the refreshes of this product. Worth noting is that for Firefly, it's actually performing pretty well among the high-end smart small car segment with a very significant market share. For the full year, we also are having confidence with the sales volume of Firefly, as since after the Spring Festival holiday, we are seeing the rebounding demand for the Firefly models. For the full year, we do have confidence of achieving a year-over-year volume growth of 40% to 50%.

[Translator]: Also for the ET5, ET5T, ES6, and EC6, they are also leading in their respective segments also with steady demand. For the ONVO L60, it is also the top three among the peers in its segment. Very soon, we are also going to introduce updates on the L60, and we can really look forward to the refreshes of this product. Worth noting is that for Firefly, it's actually performing pretty well among the high-end smart small car segment with a very significant market share. For the full year, we also are having confidence with the sales volume of Firefly, as since after the Spring Festival holiday, we are seeing the rebounding demand for the Firefly models. For the full year, we do have confidence of achieving a year-over-year volume growth of 40% to 50%.

Speaker #3: And also for the Et5 . E250 S6 and S6 . They are also leading in their respective segments . Also with steady demand for the Amo l60 .

Speaker #3: It is also the top three among its among the peers in its segment . Very soon we are also going to introduce upgrades on the L60 , and we can really look forward to the refreshes of this product and worth noting is that for Fireflite , it's actually performing pretty well among the high end smart small car segment with a very significant market share .

Speaker #3: And for the full year, we also are having confidence with the fourth volume of Firefly, as things after the Spring Festival holiday, we are seeing the rebound in demand for the Firefly models.

Speaker #3: So for the full year , we do have confidence of achieving a year over year volume growth of 40 to 50% . The first two months of this year is normally a typical seasonal low for the entire industry , but even against this backdrop , we still achieved a year over year growth in our sales volume .

William Li: The first two months of this year is normally a typical seasonal low for the entire industry. Even against this backdrop, we still achieved a year-over-year growth in our sales volume. For the Q1 guidance, we also target for over 90% year-over-year growth. For the full year, we do have confidence to achieve our volume target.

[Translator]: The first two months of this year is normally a typical seasonal low for the entire industry. Even against this backdrop, we still achieved a year-over-year growth in our sales volume. For the Q1 guidance, we also target for over 90% year-over-year growth. For the full year, we do have confidence to achieve our volume target.

Speaker #3: And for the Q1 guidance , we also target for a over 90% year over year growth . So for the full year , we do have confidence to achieve our volume target

Rui Chen: Thank you. My second question is about the autonomous driving, because I think during the opening remark, William mentioned after the rollout of the World Model, the time of AD usage grew 80% month-over-month in February. Can we know some what key feedback has been received regarding user experience? Additionally, we noticed several EV peers have or would introduce a more meaningful system model upgrades this year. What would be NIO's key technological highlights and differentiators, especially in a tight Level 3, Level 4 range? That's my second question. Thank you.

Tim Hsiao: Thank you. My second question is about the autonomous driving, because I think during the opening remark, William mentioned after the rollout of the World Model, the time of AD usage grew 80% month-over-month in February. Can we know some what key feedback has been received regarding user experience? Additionally, we noticed several EV peers have or would introduce a more meaningful system model upgrades this year. What would be NIO's key technological highlights and differentiators, especially in a tight Level 3, Level 4 range? That's my second question. Thank you.

Speaker #4: Thank .

Speaker #6: You .

Speaker #4: My second question is about Yeah , my my second question is about the autonomous driving , because I think during the opening remark really mentioned after the rollout of the world model , the time of ad usage grew 80% month over month in February .

Speaker #4: So we know that what key feedback has been received regarding user experience ? Additionally , we noticed several EV peers have or would introduce a more meaningful system model upgrades this year .

Speaker #4: What would be Neo's key technological highlights in differentiators , especially in the tight level three , level four race ? That's my second question .

Speaker #4: Thank you

Stanley Qu: 好，谢谢Tim。我想评价这个辅助驾驶，智能辅助驾驶最好的指标，就是用户使用的、真实使用的这个时长，占这个它的整个驾驶的这个时间的比例，这个是在我们认为这是最重要的一个指标。那另外一个指标就是当地的说减少了多少事故，我们觉得这是评价这个AD相关的技术，最核心的两个终极的指标。那我们也讲到了，我们今年二月份这个和一月份比，使用时长增长了超过80%。特别值得说的是，我们现在的这个版本，是还在数据训练方面，我们目前还没有在投入那么多的算力去做的。今年的话，我们会投比较多的算力在后续的这个数据训练上。所以今年二季度和今年的四季度，我们今年还有两个大的版本，那我们会，我们现在已经证明了世界模型加上强化学习闭环这样的一个技术路线，它的上限是非常高的，而且我们显著地能看到增加数据以后，它的体验能够继续地提升。所以今年我们这个对整个自驾的表现，我们还是后续的表现，我们还是非常有信心的。

William Li: 好，谢谢Tim。我想评价这个辅助驾驶，智能辅助驾驶最好的指标，就是用户使用的、真实使用的这个时长，占这个它的整个驾驶的这个时间的比例，这个是在我们认为这是最重要的一个指标。那另外一个指标就是当地的说减少了多少事故，我们觉得这是评价这个AD相关的技术，最核心的两个终极的指标。那我们也讲到了，我们今年二月份这个和一月份比，使用时长增长了超过80%。特别值得说的是，我们现在的这个版本，是还在数据训练方面，我们目前还没有在投入那么多的算力去做的。今年的话，我们会投比较多的算力在后续的这个数据训练上。所以今年二季度和今年的四季度，我们今年还有两个大的版本，那我们会，我们现在已经证明了世界模型加上强化学习闭环这样的一个技术路线，它的上限是非常高的，而且我们显著地能看到增加数据以后，它的体验能够继续地提升。所以今年我们这个对整个自驾的表现，我们还是后续的表现，我们还是非常有信心的。

Speaker #5: What The AD Is And The The The Sandy I Mean the machine Rui Chen . Should had a Woman . The the woman to push the

William Li: Thank you for the question. Actually, for us, we believe that there are two key parameters to showcase if the smart driving experience and functionality is the best for our users. The first is the share of the smart driving time among the total driving time for users in the real life driving scenarios. The second is the number of accidents that are mitigated or avoided under the smart driving functionality. As you've mentioned, from January to February this year, after the rollout of the version, the usage of the smart driving functionality actually increased by more than 80% month-over-month. This is based on the new World Model version with limited computing investments we made last year.

[Translator]: Thank you for the question. Actually, for us, we believe that there are two key parameters to showcase if the smart driving experience and functionality is the best for our users. The first is the share of the smart driving time among the total driving time for users in the real life driving scenarios. The second is the number of accidents that are mitigated or avoided under the smart driving functionality. As you've mentioned, from January to February this year, after the rollout of the version, the usage of the smart driving functionality actually increased by more than 80% month-over-month. This is based on the new World Model version with limited computing investments we made last year.

Speaker #3: Thank you for the question . Actually , for us , we believe that there are two key parameters to showcase . If the smart driving experience and functionality is the best for our users .

Speaker #3: The first is the share of the smart driving time . Among the total driving time for users in the real life driving scenarios And the second is the number of accidents that are mitigated or avoided under the smart driving functionality .

Speaker #3: As you've mentioned , from January to February this year , after the rollout of the version , the usage of the smart driving functionality actually increased by more than 80% month over month , and this is based on the new World model version with limited computing investment .

William Li: This year we are going to actually increase our investments into the computing power resources and also be able to roll out more training sessions for our new World Model technology. We are targeting two major releases in Q2 and Q4 this year. Overall speaking, with this new version, we have already verified that our architecture featuring World Model and the reinforcement learning is actually capable of achieving good experience. It also has a lot greater potentials for the continuous capability and functionality upgrades. We also see that the huge amount of data is also helping us with the experience improvements. Overall speaking, we will be having these two major releases.

Speaker #3: We made last year , and this year we are going to actually increase our investments into the computing power resources and also be able to roll out more training sessions for our new world model technology .

[Translator]: This year we are going to actually increase our investments into the computing power resources and also be able to roll out more training sessions for our new World Model technology. We are targeting two major releases in Q2 and Q4 this year. Overall speaking, with this new version, we have already verified that our architecture featuring World Model and the reinforcement learning is actually capable of achieving good experience. It also has a lot greater potentials for the continuous capability and functionality upgrades. We also see that the huge amount of data is also helping us with the experience improvements. Overall speaking, we will be having these two major releases.

Speaker #3: And we are targeting two major releases in Q2 and Q4 this year . Overall , speaking with this new version , we have already verified that our architecture featuring world model and the reinforcement learning is actually capable of achieving good experience , and it also has a lot greater potentials for the continuous capability and functionality upgrades .

Speaker #3: We also see that the huge amount of data is also helping us with the experience improvement . So overall speaking , we will be having these two major releases

Stanley Qu: Thank you, team. Thanks. Thank you.

Tim Hsiao: Thank you, team.

Speaker #5: Thank you Tim .

Stanley Qu: Thanks. Thank you.

Speaker #6: Thank you . Thank you .

Operator: Your next question comes from Bin Wang with Deutsche Bank.

Speaker #1: Your next question comes from Ben Wang with Deutsche Bank

Bin Wang: Thank you for taking my question. I have two. Number one is about Q1 margin guidance. Based on your volume assumption, what are we looking at? Because you're actually facing the rising memory cost and the cost for raw material. Recently we may actually launch sample substitute for ES8, about CNY 10,000. Can you provide a Q1 margin guidance? The second question is more about receivable from related parties because investors see this number keep increase every single quarter. Can you provide a forecast? What's the trend for this receivable from related parties? It likely came from your battery swap partners. Thank you.

Ben Wang: Thank you for taking my question. I have two. Number one is about Q1 margin guidance. Based on your volume assumption, what are we looking at? Because you're actually facing the rising memory cost and the cost for raw material. Recently we may actually launch sample substitute for ES8, about CNY 10,000. Can you provide a Q1 margin guidance? The second question is more about receivable from related parties because investors see this number keep increase every single quarter. Can you provide a forecast? What's the trend for this receivable from related parties? It likely came from your battery swap partners. Thank you.

Speaker #4: Thank you for taking my question . I come from two . Number one is about first quarter margin guidance based on your volume assumption .

Speaker #4: What should we looking at . Because you actually facing the rising memory cost . Maybe some of the low recently we may actually launch some of the subsidy for Isa .

Speaker #4: About 10,000 maybe . So can you provide a first quarter margin guidance ? And the second question is more about the about the receivable from the parties , because investors see this number .

Speaker #4: It keeps increasing every single quarter. Can you provide a forecast? What's the trend for this receivable from related parties that came from your battery swap partners?

Speaker #4: Thank you

Speaker #5: The

Speaker #2: Shipping Woman . Yes . That William Li that for the for the yes . The for the GMB has Product mix on of the .

Speaker #2: Yes for the The The Shipping

William Li: Thank you for the question. Overall speaking for the vehicle growth margin in Q1, it will be maintained at a similar level as in Q4 last year. In Q1, there were seasonality factors as well as the policy impacts. Overall speaking, we still have ES8 order backlogs. Also since the Spring Festival holidays, we see a pretty good recovery on the order momentum of the ES8 model. Overall speaking, the ES8 model will still be playing a major part in our total deliveries in Q1. That part is guaranteed. With the product mix largely decided by the high margin product like the ES8, we will also be able to maintain a relatively flat vehicle growth margin in Q1 this year.

Speaker #3: Thank you for the question . Overall speaking for the vehicle . Gross margin in Q1 . It will be maintained at the same level as in Q4 last year .

Speaker #3: In Q1 , there were seasonality factors as well as the policy impacts , but overall speaking , we still have yes , eight order backlogs .

Speaker #3: And also since the Spring Festival holidays , we've seen a pretty good recovery on the order momentum of the S8 model . So overall speaking , the yes eight model will still be playing a major part in our total deliveries in Q1 .

Speaker #3: So that part is guaranteed with the product mix largely decided by the high margin product . Like the yes eight , we will also be able to maintain a relatively flat vehicle gross margin in Q1 this year .

William Li: As you've also mentioned, there are other external factors, including the rising raw material costs, rising costs for the chip, memory chips, as well as the lithium carbonate for the battery packs. Those impacts are also going to take effect starting Q1. As we have just get started, the current impact on our Q1 vehicle margin is also limited.

Speaker #3: But as you've also mentioned , there are other external factors , including the rising material costs , rising costs for the chip memory chips , as well as the lithium carbonate for the battery packs .

Speaker #3: Those impacts are also going to take effect starting Q1. But as they have just to get started, the current impact on our Q1 vehicle margin is also limited.

Stanley Qu: Okay.

Ben Wang: Okay.

Speaker #2: Okay The short Addition To to On the

William Li: Regarding your questions on the accounts payable by the affiliated party, it's mainly the accounts payable by our battery asset management company, Weineng. As in the recent months, we are seeing growth in both sales volume of our products as well as the take rate of the battery as a service. We also see increasing accounts payable by the battery asset management company. For them, they've been keeping a smooth and also diversified financing channels through debt financing, equity financing or the bank-backed consumer installment financing. Overall speaking, they've been having a diversified and smooth financing channels. This is also, we believe that we will have a good control and organized control over the accounts payable by the battery asset management company as well as the payment terms.

Speaker #3: And regarding your questions on the account payable by the affiliated party, it's mainly the account payable by our battery asset management company, Weno.

Speaker #3: As in the recent months, we are seeing growth in both the volume of our products as well as the take rate of the battery as a service.

Speaker #3: We also see increasing account payable by the battery Asset management company . But for them , they've been keeping a smooth and also diversified financing channels through debt financing , equity financing or the bank backed consumer installment financing .

Speaker #3: So overall speaking , they've been having a diversified and smooth financing channels , financing channels . This is also we believe that we will have a good control and organize the control over the payable by the battery asset management company , as well as the payment terms .

Paul Gong: Thank you.

Ben Wang: Thank you.

Speaker #6: Yes .

Speaker #4: Thank you

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

Speaker #1: Your next question comes from Paul Gong with UBS

Paul Gong: Thanks for taking my question. My first question is continuing with the raw material cost inflation. Just now I think Stanley has mentioned that the pressure is just beginning to be felt in Q1 and I think probably in Q2 that some more pressure could be felt. Given NIO is a position that's relatively high end and still have a relatively strong demand and new orders compared to the peers, do you think you can pass at least part of the cost inflation to the downstream to the customers? That is my first question regarding the raw material cost inflation pass-through.

Speaker #4: Thanks for .

Speaker #7: Taking my question. My first question is, continue with the raw material cost inflation. Just now, I think Stanley has mentioned that they are...

Speaker #7: Pressure is just beginning to be felt in Q1, and I think probably in Q2. That pressure could be felt given Leo is a position that is relatively high-end and still has a relatively strong demand and new orders compared to the peers.

Speaker #7: Do you think you can pass this part of the cost inflation to the downstream , to the customers ? That is my first question regarding the raw material cost inflation pass through

Stanley Qu: Hi Paul.

William Li: Hi Paul.

Speaker #2: Hi , Paul You can I Yu Qu To the volatility In the To the

William Li: I will follow up on my previous answer. For this year, we do face pressures coming from the vehicle cost structure. Also because of the trend on the AI and computing power, as well as the tensions on the geopolitical side, we do see the rising material costs or the volatilities in the prices regarding memory chips, copper or lithium carbonate, and all kinds of raw materials. We do have pressure regarding our cost structure as well as the vehicle margin. For the full year, so far, we don't have a clear picture regarding the implication of all these volatilities and uncertainties. In the meantime, we will keep working with our supply chain partners to improve the supply chain efficiency and to mitigate the negative impact of such uncertainties as much as possible.

Stanley Qu: I will follow up on my previous answer. For this year, we do face pressures coming from the vehicle cost structure. Also because of the trend on the AI and computing power, as well as the tensions on the geopolitical side, we do see the rising material costs or the volatilities in the prices regarding memory chips, copper or lithium carbonate, and all kinds of raw materials. We do have pressure regarding our cost structure as well as the vehicle margin. For the full year, so far, we don't have a clear picture regarding the implication of all these volatilities and uncertainties. In the meantime, we will keep working with our supply chain partners to improve the supply chain efficiency and to mitigate the negative impact of such uncertainties as much as possible.

Speaker #3: I will follow up on my previous answer for this year. We do face pressures coming from the vehicle cost structure, and also because of the trend on AI and computing power, as well as the tensions on the geopolitical side.

Speaker #3: We do see the rising material costs , or the volatilities in the prices . memory chips , copper or lithium carbonate and all kinds of raw materials .

Speaker #3: So, we do have pressure regarding our cost structure as well as the vehicle margin. But for the full year so far, we don't have a clear picture regarding the implication of all this volatility and uncertainties.

Speaker #3: But in the will keep working with our supply chain partners to improve the supply chain efficiency and to mitigate the meantime , we negative impact of such uncertainties as much as possible

Speaker #2: Seeing the SUV show 2020 , we All Will be Going to show A function The shipping

William Li: Also as introduced by William, this year we are going to launch three new large models. Together we will be having five large SUV models in our lineup, and they will be making major contributions to our sales and delivery volume. As larger vehicle models normally have higher margin and they are more resilient towards this raw material volatilities and uncertainties. In that case, we do have confidence to try to mitigate or offset the impact brought by the rising raw material costs and try to maintain our vehicle gross margin within a reasonable range for full year this year.

Stanley Qu: Also as introduced by William, this year we are going to launch three new large models. Together we will be having five large SUV models in our lineup, and they will be making major contributions to our sales and delivery volume. As larger vehicle models normally have higher margin and they are more resilient towards this raw material volatilities and uncertainties. In that case, we do have confidence to try to mitigate or offset the impact brought by the rising raw material costs and try to maintain our vehicle gross margin within a reasonable range for full year this year.

Speaker #3: But also, as introduced by William this year, we are going to launch three new large models. So together, we will have five large SUV models in our lineup.

Speaker #3: And they will be making a major contributions to our South and delivery volume as a larger vehicle . Models normally have higher margin and they are more resilient towards this raw material .

Speaker #3: Volatility and uncertainties. In that case, we do have confidence to try to mitigate or offset the impact brought by the rising raw material costs and try to maintain our vehicle gross margin within a reasonable range for the full year.

Speaker #3: This year

Paul Gong: Thank you. Okay. If I may have my second question, that is regarding the expense. We have seen that the cost control has taken quite some effect, especially from the R&D that has reduced from CNY 3 billion in Q2 into CNY 2 billion in Q4. Given Q4 is traditionally the strong season with the expense, moving to Q1 and Q2, do you foresee further optimization on the expense side, or do you think the CNY 2 billion per quarter is going to be the new normal?

Speaker #7: Thank you . Okay . My . Yeah . Sorry if I may have my second question . That is regarding the expense . We have seen that the cost control has taken quite some effects , especially from the R&D that has reduced from 3 billion in Q2 into 2 billion in Q4 , given Q4 is traditionally the strong season with expense .

Speaker #7: So, moving to Q1 and Q2, do you foresee further optimization on the expense side, or do you think the $2 billion per quarter is going to be the new norm?

Stanley Qu: Uh,

Speaker #2: How'd that Q2 Which is a Due to the the Two .

William Li: Thank you for the question. In 2026, on a quarterly basis, we will be maintaining our R&D investment at the level of around RMB 2 to 2.5 billion per quarter. For the full year, the R&D expenses will be at a similar level as we spent in 2025. In the meantime, as now we have the Cell Business Unit mechanism in place, we will use that mechanism to keep improving the R&D efficiency, to eradicate the low efficiency items among our R&D activities, and also to keep improving the return on all the R&D activities.

Stanley Qu: Thank you for the question. In 2026, on a quarterly basis, we will be maintaining our R&D investment at the level of around RMB 2 to 2.5 billion per quarter. For the full year, the R&D expenses will be at a similar level as we spent in 2025. In the meantime, as now we have the Cell Business Unit mechanism in place, we will use that mechanism to keep improving the R&D efficiency, to eradicate the low efficiency items among our R&D activities, and also to keep improving the return on all the R&D activities.

Speaker #3: Thank you for the question . In 2020 . Six on the quarterly basis , we will be maintaining our R&D investment at the level of around 2 to 2.5 billion RMB per quarter .

Speaker #3: So for the full year , the R&D expenses will be at the similar level as we spent in 2025 . But in the meantime , as now , we have the cell business unit mechanism in place , we will use that mechanism to keep improving the R&D efficiency to low efficiency items among our R&D activities , and also to keep improving the return of R&D activities

Stanley Qu: 另一方面，我们也会根据26年的一个经营情况，以及基于ROI的这样的一个机制，我们来动态、动态地调整我们关于研发的一个节奏和增加相关的投入，来确保我们最关键产品和核心技术的一个投入的强度，推动公司长期竞争力的提升。

Speaker #2: To To ROI , the The Total champion To . To the

William Li: In the meantime, in this year based on our business performance as well as the overall return on investment analysis, we will keep a dynamic tracking and also management of our R&D expenses to make sure that we can adapt the pace and intensity of our R&D activities based on all these changing factors, so that we don't compromise on the investments into key products and also technologies or the long term competitiveness of the company.

Stanley Qu: In the meantime, in this year based on our business performance as well as the overall return on investment analysis, we will keep a dynamic tracking and also management of our R&D expenses to make sure that we can adapt the pace and intensity of our R&D activities based on all these changing factors, so that we don't compromise on the investments into key products and also technologies or the long term competitiveness of the company.

Speaker #3: And in the meantime , in this year , based on our business performance as well as the overall return on investment analysis , we will keep a dynamic tracking and also management of our R&D expenses to make sure that we can adapt the pace and intensity of our R&D activities based on all these changing factors , so that we don't compromise on the investments into key products , and also technologies or the long term competitiveness of the company .

Nick Lai: Thank you, Paul.

Stanley Qu: Thank you, Paul.

Speaker #2: Thank you . Paul .

Yuqian Ding: Thank you very much.

Paul Gong: Thank you very much.

Speaker #7: Thank you very much

Operator: Your next question comes from Nick Lai, JP Morgan.

Speaker #1: Your next question comes from Nicole JP Morgan

Nick Lai: Thank you for taking my question. I'd like to follow up previous question on profit and also cost. Given William you talked about very strong volume outlook for 2026. Also we have a lot of new model coming higher pricing, higher margin products from Q2 and onward. But at the same time the cost inflation pressure kicking in from Q2 as well. I mean putting all this together, I mean, can you help us understand how should we think about the ability maybe for second half or Q2? Or should we think, should we expect NIO can be potentially reach non-GAAP profit or break even sometime in second half or maybe in second half? And what does that mean for the free cash flow position for the full year? Thanks.

Speaker #4: Yeah .

Speaker #7: Thank you for taking my question . I'd like to follow up previous question on on the profit . And also cost given you talk about very strong volume outlook .

Speaker #7: Yeah . For for 26 . Also we have a lot of new models coming higher higher pricing , higher margin product from second quarter .

Speaker #7: And onward . But at the same time the cost inflation pressure kicking in from second quarter as well . So I mean putting all this together I mean can you help us understand how should we think about the ability maybe for second half or second quarter or , or should we think should we expect NIO can be potentially reach a non-GAAP profit or break even sometime in the second half , or maybe in the second half ?

Speaker #7: And what does that mean for the our free cash flow position for the full year ? Thanks

Stanley Qu: Hi Nick。对，确实。当然，销量方面，我们还是维持这个全年40到50的增长目标。我们基于今年的这三款大车，还是非常有信心的。那毛利方面，刚刚也提到，确实我们也会碰到来自于成本端的压力。但是，也看到我们这个大车在毛利率上的表现，像ES8，我们在四季度的毛利也都是超过20%，接近25%，所以整体的大车的毛利抗风险的能力还是比较强。所以，在2026年全年，我们还是依然维持一个全年实现Non-GAAP operating profit盈利的目标。

William Li: Hi Nick。对，确实。当然，销量方面，我们还是维持这个全年40到50的增长目标。我们基于今年的这三款大车，还是非常有信心的。那毛利方面，刚刚也提到，确实我们也会碰到来自于成本端的压力。但是，也看到我们这个大车在毛利率上的表现，像ES8，我们在四季度的毛利也都是超过20%，接近25%，所以整体的大车的毛利抗风险的能力还是比较强。所以，在2026年全年，我们还是依然维持一个全年实现Non-GAAP operating profit盈利的目标。

Speaker #2: Hi , Nick . The Which you In You You can Yes . For the So The model has In the early non-GAAP operating profit in

William Li: Thank you for the question. Regarding the sales volume, we are still on track of the target of achieving 40% to 50% year-over-year growth in our sales volume. As we've introduced this year, we are going to launch three large models that give us a confidence in the volume target. In the meantime, regarding the vehicle gross margin, we do have pressure on the margin and also the vehicle cost structure. As mentioned, we will be having more large models introduced this year as they will be contributing more significant margin. Like for the ES8 in Q4 last year, its vehicle gross margin was close to 25%. Overall speaking, large models are more resilient towards the price volatility in the market. With the volume and also the vehicle margin outlook combined, we still have the target of achieving full-year Non-GAAP operating profit breakeven in 2026.

[Translator]: Thank you for the question. Regarding the sales volume, we are still on track of the target of achieving 40% to 50% year-over-year growth in our sales volume. As we've introduced this year, we are going to launch three large models that give us a confidence in the volume target. In the meantime, regarding the vehicle gross margin, we do have pressure on the margin and also the vehicle cost structure. As mentioned, we will be having more large models introduced this year as they will be contributing more significant margin. Like for the ES8 in Q4 last year, its vehicle gross margin was close to 25%. Overall speaking, large models are more resilient towards the price volatility in the market. With the volume and also the vehicle margin outlook combined, we still have the target of achieving full-year Non-GAAP operating profit breakeven in 2026.

Speaker #3: Thank you for the question regarding the sales volume . We still keep track . Keep on track of the target of achieving 40 to 50% year over year growth in our sales volume .

Speaker #3: As we've introduced this year , we are going to launch three large models that give us a confidence in the in the volume target .

Speaker #3: And in the meantime, regarding the vehicle gross margin, we do have pressure on the margin and also the vehicle cost structure.

Speaker #3: But as mentioned , we will be having more larger models introduced this year as they will be contributing more significant margin like for the Es8 in Q4 last year .

Speaker #3: Its vehicle gross margin was close to 25% . So overall , speaking , larger models are more resilient towards the price volatility in the market .

Speaker #3: With the volume and also the vehicle margin outlook combined . We still have the target of achieving full year non-GAAP operating profit break even in 2026 .

Nick Lai: Yeah, thank you William. Certainly very exciting to hear that. My second question if it's okay is really about the Shenji self design chip. After recent successful fundraising $300 million, can you share with us our leadership strategy in the medium term, aside from supporting internal sales? Is it fair to say that Shenji will also try to explore external customer like other OEM or other supplier?

Speaker #2: Okay .

Speaker #7: Thank you, William. Certainly, very exciting to hear.

Speaker #6: That

Speaker #7: My second question , if that's okay , my second question is really about the Self-Designed chip . And after recent successful fundraising , $300 million , can you share with us our chip strategy in the medium term , aside from supporting internal internal sales , is it fair to say that Sanjiv will also try to explore external customer like other OEM or other supplier

Stanley Qu: 好，谢谢Nick。对，我们，谢谢Nick。我们神基的话呢，是完成了首轮的一个股权融资。那么，投资人，特别是这些专业的这个市场化的这样一些投资人呢和产业资本呢，对于神基整个的技术研发的能力和商业化前景都是非常认可的。

William Li: 好，谢谢Nick。对，我们，谢谢Nick。我们神基的话呢，是完成了首轮的一个股权融资。那么，投资人，特别是这些专业的这个市场化的这样一些投资人呢和产业资本呢，对于神基整个的技术研发的能力和商业化前景都是非常认可的。

Speaker #5: To To tissue

William Li: Thank you for the question. For Shenji, it has just completed the first round of equity financing, while doing the fundraising it has also received a wide recognition by the professional institutions as well as the industry institutions, and they all speak highly of the capabilities and R&D of the Shenji company.

[Translator]: Thank you for the question. For Shenji, it has just completed the first round of equity financing, while doing the fundraising it has also received a wide recognition by the professional institutions as well as the industry institutions, and they all speak highly of the capabilities and R&D of the Shenji company.

Speaker #3: Thank you for the question . For Shanghai . It has just completed the first round of equity financing where during the fund raising , it has also received a wide vaccinations by the professional institutions as well as the industry institutions .

Speaker #3: And they all speak highly of the capabilities and R&D of the company

Stanley Qu: 那我们的下一步发展呢，一方面在研发方面，除了下一代的芯片我们开始研发以外呢，我们也会对于一些相对终端的这样一些芯片，也会有这样的一些产品，给到一些更多的这样的一些客户去使用。那么当然我们也会去看，在Robotaxi、在智能方面的这样的一些市场机会，我们的产品完全是可以去在一些行业去拓展客户的。那我们已经看到了不少的外部的客户，包括一些汽车公司，对我们的芯片非常感兴趣，我们也有目前在外部业务拓展方面，也已经正在取得一些进展。

William Li: 那我们的下一步发展呢，一方面在研发方面，除了下一代的芯片我们开始研发以外呢，我们也会对于一些相对终端的这样一些芯片，也会有这样的一些产品，给到一些更多的这样的一些客户去使用。那么当然我们也会去看，在Robotaxi、在智能方面的这样的一些市场机会，我们的产品完全是可以去在一些行业去拓展客户的。那我们已经看到了不少的外部的客户，包括一些汽车公司，对我们的芯片非常感兴趣，我们也有目前在外部业务拓展方面，也已经正在取得一些进展。

Speaker #5: Side In The To the To the . For the Them . You can see that The To The

William Li: For the ongoing R&D activities of the Shenji company, it will be developing our next generation high-performance chips for our products. In the meantime, they are also planning and exploring mid-end chips that are more approachable by more clients in the industry, including potential partners and clients in robotaxi or embodied AI applications as we do see a good fit of our products in such areas and industries. Actually, in the meantime, we are already exploring possibilities with some external clients, including some automotive companies who have also shown interest into our chip products.

[Translator]: For the ongoing R&D activities of the Shenji company, it will be developing our next generation high-performance chips for our products. In the meantime, they are also planning and exploring mid-end chips that are more approachable by more clients in the industry, including potential partners and clients in robotaxi or embodied AI applications as we do see a good fit of our products in such areas and industries. Actually, in the meantime, we are already exploring possibilities with some external clients, including some automotive companies who have also shown interest into our chip products.

Speaker #3: And for the ongoing R&D activities of the company . It will be developing our next generation high performance chips for our products . But in the meantime , they are also planning and exploring meat and chips that are more approachable , a more approachable by more clients in the industry , including potential partners and clients in robotaxi , were embodied AI applications .

Speaker #3: As we do see a good fit of our product in such areas and industries . Actually , in the meantime , we are already exploring possibilities with some external clients , including some automotive companies who have also shown interest into our chip products

Stanley Qu: 我们的第二颗，就是面向更广客户的，这个也是非常先进制程的芯片，已经流片成功，正在量产的过程中。

William Li: 我们的第二颗，就是面向更广客户的，这个也是非常先进制程的芯片，已经流片成功，正在量产的过程中。

Speaker #5: Within the

William Li: Actually, the second chip product from Shenji, which is actually a chip still made of a high-end and advanced processing, but can be used by a broader client base. It's already achieved successful tape-out and is also preparing for the mass production.

[Translator]: Actually, the second chip product from Shenji, which is actually a chip still made of a high-end and advanced processing, but can be used by a broader client base. It's already achieved successful tape-out and is also preparing for the mass production.

Speaker #3: Actually , the second chip product from Shanghai , which is actually a chip still made of a high end and advanced processing , but can be used by a broader client base .

Speaker #3: It's already achieved successful tapeout and is also preparing for mass production. And this is a very competitive chip product.

Stanley Qu: 这个芯片是非常有竞争力的。

William Li: 这个芯片是非常有竞争力的。

William Li: This is a very competitive chip product.

[Translator]: This is a very competitive chip product.

Nick Lai: 好的，谢谢，谢谢，非常清楚。

William Li: 好的，谢谢，谢谢，非常清楚。

Speaker #7: For the

Stanley Qu: Thank you.

Speaker #5: Thank you . Thank

Operator: Your next question comes from Jing Huang with CICC.

Speaker #1: Your next question comes from Jing Chang with CICC.

Jing Huang: Okay, thank you for taking my question. My first question is about the upcoming new model, which is ES9. Compared with ET9 released last year, could you elaborate on its new capability enhancements and also, how is your pricing position for this new vehicle?

Jing Chang: Okay, thank you for taking my question. My first question is about the upcoming new model, which is ES9. Compared with ET9 released last year, could you elaborate on its new capability enhancements and also, how is your pricing position for this new vehicle?

Speaker #8: Okay . Thank you for taking my question . My first question is about our upcoming new model , which is yes , nice .

Speaker #8: So compared with Et9 released last year , so could you elaborate on its new capability enhancements and also how is our pricing position for this new vehicle

Stanley Qu: ET9呢，它是一个行政旗舰。那么，这个我们现在呢，从我们整个产品序列方面来讲，也是我们最高端的这样的一个产品啊。那么当我们陆续地推出来了这个我们的地平线特别版啊，也非常受用户的欢迎。那么，ES9的话呢，和ET9相比的话呢，当然ET9上的非常多的这样一些先进的技术在ES9上都会应用，但ES9也有自己的一些这个技术的创新，它的定位呢，差别还是非常大的。那么ET9是一款行政旗舰的这样一个轿车，ES9的话呢，是一个科技行政SUV的这样一个旗舰，所以他们的定位其实是非常显著的差别。

William Li: ET9呢，它是一个行政旗舰。那么，这个我们现在呢，从我们整个产品序列方面来讲，也是我们最高端的这样的一个产品啊。那么当我们陆续地推出来了这个我们的地平线特别版啊，也非常受用户的欢迎。那么，ES9的话呢，和ET9相比的话呢，当然ET9上的非常多的这样一些先进的技术在ES9上都会应用，但ES9也有自己的一些这个技术的创新，它的定位呢，差别还是非常大的。那么ET9是一款行政旗舰的这样一个轿车，ES9的话呢，是一个科技行政SUV的这样一个旗舰，所以他们的定位其实是非常显著的差别。

Speaker #5: Women Take a You know Yes An SUV the . So

William Li: Thank you for the question. NIO ET9 is our executive flagship. It is also the most premium and advanced product in our lineup. Recently we have also released the Horizon Edition for the NIO ET9, and it's well received by the users. For the ES9, definitely it carries over advanced technologies and also features from the NIO ET9, but it also comes with its unique tech innovation. Positioning and product type wise, these two products are quite different. ET9 is an executive sedan where ES9 is actually a tech flagship as well as a flagship SUV model.

[Translator]: Thank you for the question. NIO ET9 is our executive flagship. It is also the most premium and advanced product in our lineup. Recently we have also released the Horizon Edition for the NIO ET9, and it's well received by the users. For the ES9, definitely it carries over advanced technologies and also features from the NIO ET9, but it also comes with its unique tech innovation. Positioning and product type wise, these two products are quite different. ET9 is an executive sedan where ES9 is actually a tech flagship as well as a flagship SUV model.

Speaker #3: Thank you for the question . Neal . Utilize our executive flagship . It is also the most premium , premium and advanced product in our lineup Recently we have also released the horizon editions for the new Et9 .

Speaker #3: And it's well received by the users . And for the ismy , definitely , it carries over advanced technologies and also features from the new Et9 , but it also comes with its unique tech innovation , positioning and the product type wise .

Speaker #3: Are these two products are quite different . Et9 is an executive sedan where yes , is actually a flagship as well as a flagship SUV model

Jing Huang: Thank you. My second question is about the energy replenishment methods. There has been more market discussion recently. Against the background of the rapid development of fast charging, could we elaborate on the advantages and also the necessity of battery swapping, especially in infrastructure construction? And also as well as our mid- and long-term charging and battery swapping construction plans.

Jing Chang: Thank you. My second question is about the energy replenishment methods. There has been more market discussion recently. Against the background of the rapid development of fast charging, could we elaborate on the advantages and also the necessity of battery swapping, especially in infrastructure construction? And also as well as our mid- and long-term charging and battery swapping construction plans.

Speaker #8: Thank you . My second question is about about the energy replenishment replacement method . So there there has been more market discussion recently .

Speaker #8: So against the on the background of the rapid development of fast charging . So could be elaborate on the advantages and also necessity of battery swapping , especially in infrastructure construction .

Speaker #8: And also as long as our mid and long term charging and battery swapping are swapping infrastructure

Stanley Qu: 对我们，很高兴看到更多的车企去参与这个充换电网络的建设，那么汽车公司去参与这个充换电网络的建设，这个对于推动BEV的渗透率，加快油车和增程和插混向纯电的转化，那是非常有好处的，我们特别高兴看到这样的一个变化，看到这样的一个趋势。

William Li: 对我们，很高兴看到更多的车企去参与这个充换电网络的建设，那么汽车公司去参与这个充换电网络的建设，这个对于推动BEV的渗透率，加快油车和增程和插混向纯电的转化，那是非常有好处的，我们特别高兴看到这样的一个变化，看到这样的一个趋势。

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William Li: Thank you for the question. Actually, we are happy to see that more automotive companies are participating into the construction of the charging and swapping network. As more players coming into the joint development of the infrastructure network, it can help accelerate the adoption of a battery electric vehicle, as well as the acceleration of the conversion from the ICE cars, EREVs, and the PHEVs to the BEV models. We are happy to see such trends.

[Translator]: Thank you for the question. Actually, we are happy to see that more automotive companies are participating into the construction of the charging and swapping network. As more players coming into the joint development of the infrastructure network, it can help accelerate the adoption of a battery electric vehicle, as well as the acceleration of the conversion from the ICE cars, EREVs, and the PHEVs to the BEV models. We are happy to see such trends.

Speaker #3: Thank you for the question . Actually we are happy to see that more automotive companies are participating into the construction of the charging and swapping network as more players coming into the joint development of the infrastructure network , it can help accelerate the adoption of a battery electric vehicle as well as the acceleration of the conversion from the Ice cars , riffs and pipes to the bath models .

Speaker #3: So we are happy to see such trend .

Stanley Qu: 充电和换电，它是不矛盾的。其实从未来来说的话，我们也已经建成了超过两万八千根的超充桩和目的地充电桩。我们也是中国布局充电桩最积极的汽车公司之一。那么换电、加充和超充，它是满足不同的用户在不同场景下不同目的的这样一个需要。这个我们本来就是一个可充、可换、可升级的这么一个体系。

William Li: 充电和换电，它是不矛盾的。其实从未来来说的话，我们也已经建成了超过两万八千根的超充桩和目的地充电桩。我们也是中国布局充电桩最积极的汽车公司之一。那么换电、加充和超充，它是满足不同的用户在不同场景下不同目的的这样一个需要。这个我们本来就是一个可充、可换、可升级的这么一个体系。

Speaker #5: Now has For women By To Man to put on the One . To see

William Li: Charging and swapping, they are not contradictory. We also have developed more than 28,000 power chargers and destination chargers. We are also one of the most active, Chinese car companies, in terms of the charging network development. For swapping, home charging, and supercharging, they come at different benefits, and they serve different purposes for users in different use cases and scenarios. For us, we always offer this holistic solution featuring charging, swapping, and upgradability.

[Translator]: Charging and swapping, they are not contradictory. We also have developed more than 28,000 power chargers and destination chargers. We are also one of the most active, Chinese car companies, in terms of the charging network development. For swapping, home charging, and supercharging, they come at different benefits, and they serve different purposes for users in different use cases and scenarios. For us, we always offer this holistic solution featuring charging, swapping, and upgradability.

Speaker #3: That charging and swapping . They are not contradictory . We also have developed more than 28,000 power chargers and destination chargers . We are also one of the most active Chinese car companies in terms of the charging network development for swapping , home charging and supercharging .

Speaker #3: They come at different benefits and they serve different purposes for users in different use cases . And scenarios . And for us , we always offer this holistic solution featuring charging , swapping and upgradability

Stanley Qu: 当然我们也近期也看到了这个行业内有些公司在这个充电速度方面的一些进步，那这个当然是非常好的一些技术的发展。当然再快的这个充电，在可见的将来，我们认为它的速度和体验呢也是比不上换电的，这个应该说是一个行业里面大家都认可这一点。但换电还有一些它的作用是充电所无法去承接的。因为换电它能够系统地去解决车和电池的寿命不同的这样一个问题。因为中国现在这个行业内的电动车的这样一个电池的质保标准呢，都是八年十万公里，70%的健康度。那以前呢，因为这个运营车辆它的使用时间都比较短，但私家车的话呢，其实车的话都是十五年，有的甚至于更长的这样一个使用的寿命。所以车和电池如果是去耦合的话，那么这个在八年后、九年后、十年后，这个会是比较大的这样一个问题吧。所以我们一直觉得换电是解决车和电池不同寿的这样的一个系统性的这样的方案。

William Li: 当然我们也近期也看到了这个行业内有些公司在这个充电速度方面的一些进步，那这个当然是非常好的一些技术的发展。当然再快的这个充电，在可见的将来，我们认为它的速度和体验呢也是比不上换电的，这个应该说是一个行业里面大家都认可这一点。但换电还有一些它的作用是充电所无法去承接的。因为换电它能够系统地去解决车和电池的寿命不同的这样一个问题。因为中国现在这个行业内的电动车的这样一个电池的质保标准呢，都是八年十万公里，70%的健康度。那以前呢，因为这个运营车辆它的使用时间都比较短，但私家车的话呢，其实车的话都是十五年，有的甚至于更长的这样一个使用的寿命。所以车和电池如果是去耦合的话，那么这个在八年后、九年后、十年后，这个会是比较大的这样一个问题吧。所以我们一直觉得换电是解决车和电池不同寿的这样的一个系统性的这样的方案。

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William Li: We see some industry peers. They have announced advanced technologies in terms of the charging and the charging speed.

[Translator]: We see some industry peers. They have announced advanced technologies in terms of the charging and the charging speed. We are also happy to see such technological innovation and development. In the foreseeable future, no matter how fast the charging becomes, it will never outperform the speed or the experience of Power Swap. Also there are additional benefits brought by the Power Swap that charging will never offer. We believe that Power Swap is also a systematic solution to solve the problems regarding the mismatched life cycles between the vehicles and the batteries. In the Chinese automotive industry, the warranty period for the battery pack is normally eight years, 160,000 kilometers or at 70% state of health after use.

Speaker #3: And also, we see some industry peers. They have announced advanced technologies in terms of charging and charging speed. We are also happy to see such technological innovation and development.

William Li: We are also happy to see such technological innovation and development. In the foreseeable future, no matter how fast the charging becomes, it will never outperform the speed or the experience of Power Swap. Also there are additional benefits brought by the Power Swap that charging will never offer. We believe that Power Swap is also a systematic solution to solve the problems regarding the mismatched life cycles between the vehicles and the batteries. In the Chinese automotive industry, the warranty period for the battery pack is normally eight years, 160,000 kilometers or at 70% state of health after use. For the vehicles, for the business and commercial purposes, normally their duration is shorter, but for the private sectors, the vehicle can be used for up to 15 years. In that case, the battery life cycle is significantly shorter than that of the vehicles. If the battery and the vehicles are tightly coupled with each other after 9 or 10 years, this mismatched life cycle will become a major problem for the users and industries. For that, we believe that Power Swap enables a flexible solution or innovative solution to solve the mismatched life cycles between vehicles and batteries.

Speaker #3: But in the foreseeable future, no matter how fast the charging becomes, it will never outperform the speed or the experience of a power swapping.

Speaker #3: And also there are additional benefits brought by the swapping that charging will never offer . We believe that swapping is also a systematic solution to solve the problems regarding the mismatched life cycles between the vehicles and the batteries in the Chinese automotive industry , the warranty period for the battery pack is normally eight years .

Speaker #3: 160,000km , or at 70% . State of health . After use for the vehicles . For the business and commercial purposes . Normally , their duration is shorter , but for the private sectors , the the vehicle can be used for up to 15 years .

[Translator]: For the vehicles, for the business and commercial purposes, normally their duration is shorter, but for the private sectors, the vehicle can be used for up to 15 years. In that case, the battery life cycle is significantly shorter than that of the vehicles. If the battery and the vehicles are tightly coupled with each other after 9 or 10 years, this mismatched life cycle will become a major problem for the users and industries. For that, we believe that Power Swap enables a flexible solution or innovative solution to solve the mismatched life cycles between vehicles and batteries.

Speaker #3: In that case , the battery life cycle is significantly shorter than that of the vehicles . But if the battery and the vehicles are tightly coupled with each other after 9 or 10 years , this mismatched life cycle will become a major problem for the users and industries , and for that , we believe that power swap enables a flexible solution where solution to solve the mismatched life cycles between vehicles and batteries .

Stanley Qu: 在换电的，在我们未来的换电体系下，那么结合长寿命的电池设计，那么充放电的策略，还有电池状况的健康状况的这个监测和维护，我们把它叫做运营的这样的一个延寿，能显著提升电池的安全性，并且最大化去延长电池的寿命。我们认为这是一个系统性的这样一个方案，它不是简单地说是说快一点慢一点，这个其实是电池整个这个智能电动汽车行业必须系统思考的一个问题。

William Li: 在换电的，在我们未来的换电体系下，那么结合长寿命的电池设计，那么充放电的策略，还有电池状况的健康状况的这个监测和维护，我们把它叫做运营的这样的一个延寿，能显著提升电池的安全性，并且最大化去延长电池的寿命。我们认为这是一个系统性的这样一个方案，它不是简单地说是说快一点慢一点，这个其实是电池整个这个智能电动汽车行业必须系统思考的一个问题。

Speaker #5: Now the the The the way who Are want to Show for so this is

William Li: Also under our Power Swap system, together with our long life battery, our charging and discharging strategy, as well as our life cycle monitoring and also inspections on the battery health, all these measures come as a very systematic and holistic operational approach for us to keep monitoring the safety of the battery and also maximize the longevity of our battery products. This requires systematic thinking and systematic design. It's more than a matter of the charging or swapping speed, it actually provides the industry a systematic solution.

[Translator]: Also under our Power Swap system, together with our long life battery, our charging and discharging strategy, as well as our life cycle monitoring and also inspections on the battery health, all these measures come as a very systematic and holistic operational approach for us to keep monitoring the safety of the battery and also maximize the longevity of our battery products. This requires systematic thinking and systematic design. It's more than a matter of the charging or swapping speed, it actually provides the industry a systematic solution.

Speaker #3: And also under our power swap system together with our long life battery our charging and discharging strategy , as well as our life cycle monitoring and also inspections on the battery health .

Speaker #3: All this measures come as a very systematic and holistic operational approach for us to keep monitoring the safety of the battery and also maximize the longevity of our battery products .

Speaker #3: And this requires systematic thinking and systematic design . So it's more than a matter of charging or swapping speed . It actually provides the industry a systematic solution

Stanley Qu: 另外我想强调一点，换电呢，它是一个分布式的储能设施。大家都知道中国现在新能源发电的绿电的消纳是一个非常大的问题，所以中国也在建设这个叫新型的电力系统。那么换电站，作为一个新型的能源设施，那么它参与电力的存储消纳，参与电网互动，这方面的话呢，它是有非常大的商业机会和商业价值。因为它和一般的储能去比的话呢，我们是能够只减少一次建设，这其实至少有一个大概6%左右的优势，效率的优势，所以它的运营经济性比一般的储能呢，其实是要更高一些。所以总的来说的话呢，我们要更长远地去看，我们现在在中国是接近3,800座换电站，如果我们是一万座换电站，每个换电站布满电池的话呢，那我们其实基本上，我们现有的换电站那基本上已经相当于6到7吉瓦时的储能容量，其实它已经是一个非常大的储能设施、一个体系了。

William Li: 另外我想强调一点，换电呢，它是一个分布式的储能设施。大家都知道中国现在新能源发电的绿电的消纳是一个非常大的问题，所以中国也在建设这个叫新型的电力系统。那么换电站，作为一个新型的能源设施，那么它参与电力的存储消纳，参与电网互动，这方面的话呢，它是有非常大的商业机会和商业价值。因为它和一般的储能去比的话呢，我们是能够只减少一次建设，这其实至少有一个大概6%左右的优势，效率的优势，所以它的运营经济性比一般的储能呢，其实是要更高一些。所以总的来说的话呢，我们要更长远地去看，我们现在在中国是接近3,800座换电站，如果我们是一万座换电站，每个换电站布满电池的话呢，那我们其实基本上，我们现有的换电站那基本上已经相当于6到7吉瓦时的储能容量，其实它已经是一个非常大的储能设施、一个体系了。

Speaker #5: In the Q4, no one can—we charge the new, the user system to the solution.

William Li: Also for the Power Swap system, it is also a distributed energy storage system. As with renewable energy and the green electricity generation, the storage and consumption of such renewable energy is a big challenge. This is also why the Chinese government is now building up the new power system to be able to digest all this, green energy. The Power Swap station is also a type of the new power system as it can help with energy storage, energy consumption, as well as the interaction with the power grid. In that case, we do see opportunities as well as the value, on the business side brought by our Power Swap system.

[Translator]: Also for the Power Swap system, it is also a distributed energy storage system. As with renewable energy and the green electricity generation, the storage and consumption of such renewable energy is a big challenge. This is also why the Chinese government is now building up the new power system to be able to digest all this, green energy. The Power Swap station is also a type of the new power system as it can help with energy storage, energy consumption, as well as the interaction with the power grid. In that case, we do see opportunities as well as the value, on the business side brought by our Power Swap system.

Speaker #3: And also for the power swap system , it is also a distributed energy storage system . As with renewable energy and green electricity generation , the storage and consumption of such renewable energy is a big challenge .

Speaker #3: This is also why the Chinese government is now building up the new power system . To be able to digest all this green energy and the power swap station is also a type of a new power system , as it can help with energy storage , energy consumption , as well as the interaction with the power grid .

Speaker #3: In that case , we do see opportunities as well as the value of on the business side brought by our power swap system , and also different from the supercharging requiring energy storage .

William Li: Also different from the supercharging requiring energy storage, we actually only needed to charge and discharge the battery once, which can help to reduce the secondary, energy loss, that can contribute to an efficiency improvement or benefit of around 6%. Economic-wise, Power Swap is also more efficient and viable. For the charging for the swapping network now, so far in China, we already have installed more than 3,800 Power Swap stations. If every station comes with a full battery pack installation, it will be a total energy storage volume of around 6 to 7 gigawatt hours, which is already pretty sizable from the energy storage perspective. Overall speaking, Power Swap not only provides better charging or recharging experience for our users.

[Translator]: Also different from the supercharging requiring energy storage, we actually only needed to charge and discharge the battery once, which can help to reduce the secondary, energy loss, that can contribute to an efficiency improvement or benefit of around 6%. Economic-wise, Power Swap is also more efficient and viable. For the charging for the swapping network now, so far in China, we already have installed more than 3,800 Power Swap stations. If every station comes with a full battery pack installation, it will be a total energy storage volume of around 6 to 7 gigawatt hours, which is already pretty sizable from the energy storage perspective. Overall speaking, Power Swap not only provides better charging or recharging experience for our users.

Speaker #3: We actually only need to charge and discharge the battery once , which can help to reduce the secondary energy loss that can contribute to a efficiency improvement or benefit of around 6% .

Speaker #3: So economic wise , power swap is also more efficient and viable . And for the charging for the swapping network . Now so far in China , we already have installed more than 3008 hundred power swap stations .

Speaker #3: If every station comes with a full battery pack installment, it will be a total energy storage volume of around 6 to 7 gigawatt-hours, which is already pretty sizable from the energy storage perspective.

Speaker #5: For the 20 . To Years

Speaker #3: So overall speaking power swap not only provides better charging or recharging experience for our users , for the long term , it is also helping with our business development and also So this is also bringing us a long term business success .

William Li: For the long term, it is also helping with our business development and also, success. This is also bringing us a long-term business success, and it's highly defensive.

[Translator]: For the long term, it is also helping with our business development and also, success. This is also bringing us a long-term business success, and it's highly defensive.

Speaker #3: And it's highly defensive

Speaker #5: Since it

Operator: Your next question comes from Ming Hsun Lee with Bank of America.

Speaker #1: Your next question comes from Ming Sun Li with Bank of America

Ming Hsun Lee: Hello. William, I've two questions. My first question is related to the chip business. I think previously, you already mentioned that the second chip will be more powerful, more competitive compared to your first chip. Could you give a little bit guidance on this chip? In the future, will you only focus on automotive driving and humanoid robot for the chips in the future, or you will also develop the smart cabin used chip? Also, I think you save a lot of costs because you start to adopt your chip.

Speaker #4: Hello . I forgot two questions . So my first question is related to the chip business . So I think previously you already mentioned that the second chip will be more powerful , more competitive compared to your first chip .

Speaker #4: So could you give a little bit guidance on this chip . So in the future , will you only focus on autonomous driving and a humanoid robot for the chips in the future , or you will also develop the smart cabin used chip ?

Speaker #4: And also , I think you saved a lot of cost because you start to adopt your chip . So could you give some guidance about the vehicle model coverage for your chip ?

Ming Hsun Lee: Could you give some guidance about the vehicle model coverage for your chip, then how much percent the cost can be saved? Thank you.

Speaker #4: Then how much percent the cost can be saved ? Thank you

William Li: Thank you for the question. The second chip product function, it will also be a 5-nanometer automotive-grade chip, but it comes with a more competitive and efficient cost structure. Performance-wise, it will be on par with 3 Orin X. Cost-wise, it will also be more approachable and efficient than our first-generation Shenji NX9031 chip. In terms of the utilization, it can be used for autonomous driving, smart driving, as well as all the AI applications and embodied AI. In terms of the advanced chip product, we will not do the training chip, but focusing more on the on-device inference chip and the, our chip product will be also qualified to be as a on-device inference chip. It has a lot more potential to be applied across different scenarios and products.

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Speaker #3: Thank you for the question . So the second chip product from Shanghai will also be a five nanometer automotive grid chip . But it comes with a more competitive and efficient cost structure wise , it will be on par with three or ring X .

Speaker #3: Cost wise . It will also be more approachable and efficient than our first generation Shanghai 1931 chip . So in terms of the utilization , it can be useful for autonomous driving , smart driving , as well as all the AI applications and embodied AI .

Speaker #3: In terms of the average chip product , we will not do the training chip , but focusing more on the on device inference chip and our chip product will be also qualified to be as on device inference chip and also it has a lot more potentials to be applied across different scenarios and products .

William Li: In terms of which vehicle models will be equipped with our second chip product, so far we cannot disclose such information, especially if it's related to our external clients. We do have some industry peers and also clients showing strong interest in this chip product.

Speaker #3: In terms of which vehicle models will be equipped with our second chip product . So far , we cannot disclose such information , especially if it's related to our external clients , but we do have some industry peers and also clients showing strong interest into this chip product

Ming Hsun Lee: My second question is related to your service business. In full year, your service revenue gross margin reached 11.9%. Is it mainly because the utilization of your swap station continues to increase? Looking into 2026, do you expect the gross margin of a service business will continue to improve, because based on your projection? Thank you.

Speaker #4: And my second question is related to your your service business . So in for your service revenue , gross margin reached 11.9% . Is it is it mainly because that utilization of your substation continue to increase and the looking into 2026 , do you expect the gross margin of service business will continue to improve because based on your projection ?

Speaker #4: Thank you

Stanley Qu: Hi, Ming.

Speaker #2: Hi . Me The The The Molly The . You Speaking Question So . So I

Speaker #3: Thank you for the question. Regarding the revenues from other cells, it's mainly our service revenues as well as the revenues from community-related businesses.

Speaker #3: And in 2025 , as our user base grow and the operational efficiency grow , we we have also achieved the growth in our other source revenue .

Speaker #3: More than 10 billion RMB last year , which is also a growing part in our total revenue . And for this year , as we continue to grow our user base , we also are expecting the growth in our other sales revenue and also it will continue to make positive contribution to the group level gross margin .

Speaker #3: And regarding the charging and swapping business , as we will continue to develop and deploy our infrastructure network , especially our power swap network at the pace of around 1000 new stations every year .

Speaker #3: With all this upfront investment in the infrastructure for the near term , we will still see operational losses on the charging and swapping network side .

Speaker #3: But the profit from other cells can basically cover the losses on the power, and on the power side. So, the overall business development will actually be conducted at a controlled pace.

Speaker #5: Do you And

William Li: I would like to add a comment here. In 2025, we have achieved the profitability on our other sales, mainly our services and the community-related businesses. In 2026, we also believe that we will continue to enhance the profitability of this part, even against the precondition that we are going to install 1,000 new Power Swap Stations this year. We will still target to achieve improved profitability for this part of the business.

Stanley Qu: I would like to add a comment here. In 2025, we have achieved the profitability on our other sales, mainly our services and the community-related businesses. In 2026, we also believe that we will continue to enhance the profitability of this part, even against the precondition that we are going to install 1,000 new Power Swap Stations this year. We will still target to achieve improved profitability for this part of the business.

Speaker #3: And also I would like to add a comment here . In 2025 we have achieved the profitability on our other cells , mainly our services and community related businesses .

Speaker #3: And in 2026, we also believe that we will continue to enhance the profitability of this part, even against the precondition that we are going to install 1,000 new power stations this year.

Speaker #3: We will still target to achieve improved profitability for this part of the business.

Stanley Qu: Thank you, Ming.

Speaker #2: Thank you . Me

Ming Hsun Lee: That's all my questions.

Speaker #4: That's all my questions

Operator: Your next question comes from Yuqian Ding with HSBC.

Speaker #1: Your next question comes from Yu Qu with HSBC

Yuqian Ding: Thank you. I have two questions. The first is to follow up on the OpEx optimization. We talked about R&D guidance before. Could we share more color in terms of the SG&A? Q4, we hit SG&A absolute value at CNY 3.5 billion. Can we extrapolate to understand that's the baseline? If we multiply it by 4, that's the baseline or range we can understand in 2026.

Speaker #9: Yes . Thank you Tim I have two questions . The first is to follow up on the OpEx optimization . We talked about R&D guidance before .

Speaker #9: Could we share more color in terms of the SNA? So, first quarter we hit SNA absolute value at $3.5 billion. So can we extrapolate to understand that's the baseline?

Speaker #9: If we multiply it by by four that's the baseline . Or range we can understand 2026 .

Stanley Qu: Hi Yuqian Ding.

Speaker #2: High The Women ROI the The to the The the The way Q1 . By the

William Li: Thank you for the questions. In Q4 2025, as we have seen growth both in sales volume as well as sales revenue, the percentage of SG&A to the sales revenue has also fallen into a reasonable range. That is also driven by our CBU mechanism as well as the continuous efforts in the organizational efficiency improvement. It's partially because in Q4 we didn't introduce or launch any new models, so we didn't have much expenses on the marketing and relevant activities and events. For 2026, we will also continue our CBU efforts to make sure that our SG&A expenses are of the highest efficiency and good return.

Speaker #3: Thank you for in Q4 Thank you for the questions in Q4 2025 . As we have , we have see growth both in sales volume as well as sales revenue .

Stanley Qu: Thank you for the questions. In Q4 2025, as we have seen growth both in sales volume as well as sales revenue, the percentage of SG&A to the sales revenue has also fallen into a reasonable range. That is also driven by our CBU mechanism as well as the continuous efforts in the organizational efficiency improvement. It's partially because in Q4 we didn't introduce or launch any new models, so we didn't have much expenses on the marketing and relevant activities and events. For 2026, we will also continue our CBU efforts to make sure that our SG&A expenses are of the highest efficiency and good return.

Speaker #3: The percentage of Senna to the cells revenue has also fallen into a reasonable range, but that is also driven by our CPU mechanism as well as the continuous efforts in the organizational efficiency improvement.

Speaker #3: And also it is partially partially because that in Q4 we didn't introduce or launch any new models . So we didn't have much expenses on the marketing and the relevant activities .

Speaker #3: And events . And for 2026 , we will also continue our efforts to make sure that our expenses are of the highest efficiency and good return .

William Li: The absolute amount of the SG&A expenses this year will be growing. Proportionally to our sales revenue increase, we would like to control that to be within 10% of our sales revenue.

Stanley Qu: The absolute amount of the SG&A expenses this year will be growing. Proportionally to our sales revenue increase, we would like to control that to be within 10% of our sales revenue.

Speaker #3: The absolute amount of the G&A expenses this year will be growing , but proportionally to our sales revenue increase , we would like to control that to be within 10% of our sales revenue

Stanley Qu: Okay, you can.

Yuqian Ding: Thank you, Stanley. The second question is to ask about the volume and margin breakdown by brand. We talked about our volume target and we also talked about a reasonable margin. Could you help us to understand between like three portfolio brand or between the core five big SUV portfolio versus rest? Just give us a bit of a sense to understand the dynamics between the brand or how do we cluster our volume mix so that can support sustainable margin expansion.

Speaker #2: Okay ,

Speaker #9: Thank you . Stanley . The second question is to ask about the volume and margin break down by brand . We talked about the our volume target , and we also talked about the reasonable margin .

Speaker #9: So could you help us to understand between three portfolio brand or between the core five big SUV portfolio versus rest . Just give us a bit of a sense to understand that the dynamics between the brand or how do we cluster our volume mix so that that can support sustainable margin expansion

William Li: Thank you for the question. Regarding the sales volume and the vehicle gross margin breakdown, as we've mentioned, the market will be still highly dynamic in 2026. At the moment it will be very difficult for us to give a specific or precise breakdown on the volume or margin contribution by model. To give you some high-level information, for the 5 large SUV models that we've mentioned, they will be playing a major role in our sales volume. That's one. Secondly, for the Firefly, after the Spring Festival holidays, we also see a quick rebound of its volume and order momentum back to the stable level as it had last year. This will also be another indicator regarding the volume driver.

Speaker #2: Xiao long So the Na The The break down of The SUV in the 20 to One . Xiao . 20 to 20 . I The the Two .

Speaker #2: To The one . To

Speaker #3: Thank you for the question regarding the sales volume and the vehicle gross margin breakdown . As we've mentioned , the market will be still highly dynamic in 2026 .

Speaker #3: So at the moment it will be very difficult for us to give a specific for precise breakdown on the volume or margin contribution by model .

Speaker #3: But to give you some high-level information for the five large SUV models that we've mentioned, they will be playing a major role in our sales volume.

Speaker #3: That's that's one . And secondly , for the Firefly , as since after the Spring Festival holidays , we also see a quick rebound of its volume and order momentum back to the level , back to the stable level , as it had last year .

Speaker #3: So this will also be another indicator regarding the volume driver and regarding the vehicle gross margin . As we've mentioned , for all three brands , they will be under cost pressure due to the external volatility reasons .

William Li: Regarding the vehicle gross margin, as we've mentioned, for all three brands, they will be under cost pressure due to the external volatility reasons. In the meantime, we will still keep improving the vehicle gross margin across all three brands. At the moment, we cannot give you a specific margin outlook or assumption for each brand, but put that against a longer time spectrum. We always target to achieve 20 to 25% vehicle gross margin for the NIO brand, above 15% vehicle gross margin for the Onvo brand, and above 10% vehicle gross margin for the Firefly brand. That is our margin target for all three brands against a longer time spectrum, and it has also been our internal target.

Speaker #3: But in the meantime , we will still keep improving the vehicle gross margin across all three brands at the moment , we cannot give you a specific margin , outlook or assumptions for each brand , but put that against a longer time spectrum .

Speaker #3: We always target to achieve 20 to 2025% gross margin for the new brand above 15% vehicle gross margin for the brand , and above 10% vehicle gross margin for the Firefly brand .

Speaker #3: So that is our margin target for all three brands against a longer time spectrum. And it has also been our internal target.

Speaker #2: That the That we make the We make Xiaoliang the CPU To the Cushion

William Li: In addition to that, our management mindset has also made a switch since last year, where before it was purely sales volume driven. Now we are trying to find the optimal balance between sales volume, vehicle gross margin, and the overall business performance. This is also driven by our CBU mechanism. As for each vehicle model, we have established a dedicated vehicle strategy team that will be taking the overarching responsibilities for the vehicle's business performance, finding balance between the margin and also the volume of the product. That is a major change we have made since last year when we had the CBU in place. This is also reflected in our business performance improvement from Q4 to Q1 this year.

Speaker #3: And in addition to that our management mindset has also made a switch since last year . We before it was purely source volume driven .

Speaker #3: But now we are trying to find the optimal balance between source volume , vehicle gross margin , and the overall business performance . This is also driven by our CPU mechanism for each vehicle model , we have established a dedicated vehicle strategy team that will be taking the overarching responsibilities for the vehicles business performance .

Speaker #3: Finding balance between the margin and also the volume of the product—that is a major change we have made since last year, when we had the CPU in place.

Speaker #3: This is also reflected in our business performance improvement from Q4 to Q1 this year.

Speaker #2: Okay

Operator: As there are no further questions now, I'd like to turn the call back over to the company for closing remarks.

Speaker #1: As there are no further questions now, I'd like to turn the call back over to the company for closing remarks.

Rui Chen: Thank you again for joining us today. If you have further questions, please feel free to contact NIO's IR team through the contact information on the website. This concludes the conference call. You may now disconnect your line. Thank you.

Speaker #2: Thank you again for joining us today . If you have further questions , please feel free to contact Nils IR team through the contact information on the website .

Q4 2025 NIO Inc Earnings Call

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