Q1 2026 Li Auto Inc Earnings Call

May 28, 2026

Operator 2: Hello, ladies and gentlemen. Thank you for standing by for Li Auto's Q1 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Miss Janet Zhang, Investor Relations Director of Li Auto. Please go ahead, Janet.

Speaker #1: Today's conference call is being recorded. I will now turn the call over to your host, Ms. Janet Chang, Investor Relations Director of Li Auto.

Speaker #1: Please go ahead, Janet.

Speaker #2: Thank you, Operator. Good evening and good morning, everyone. Welcome to Li Auto's first quarter 2026 earnings conference call. The company's financial and operating results were published in a press release earlier today and were posted on the company's IR website.

Janet Zhang: Thank you operator. Good evening and good morning, everyone. Welcome to Li Auto's Q1 2026 Earnings Conference Call. The company's financial and operating results were published in a press release earlier today and were posted on the company's IR website.

Speaker #2: On today's call, we will have our chairman and CEO, Mr. Xiang Li, and our CFO, Mr. Johnny Tie Li, to begin with prepared remarks.

Janet Zhang: On today's call, we will have our Chairman and CEO, Mr. Xiang Li, and our CFO, Mr. Tie Li, to begin with prepared remarks. Our President, Mr. Donghui Ma, and our CTO, Mr. Yan Xie, will join for the Q&A discussion. Before we continue, please be reminded that today's discussion will contain forward-looking statements made under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding risks and uncertainties is included in certain company filings with the U.S. Securities and Exchange Commission and The Stock Exchange of Hong Kong Limited. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that Li Auto's earnings press release and this conference call include discussions of unaudited GAAP financial information, as well as unaudited non-GAAP financial measures. Please refer to Li Auto's disclosure documents on the IR section of our website, which contain a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures. Our CEO will start his remarks in Chinese. There will be English translation after he finishes all his remarks. With that, I will now turn the call over to our CEO, Mr. Xiang Li. Please go ahead.

Speaker #2: Our president, Mr. Dong Hui Ma, and our CTO, Mr. Yan Xie, will join for the Q&A discussion. Before we continue, please be reminded that today's discussion will contain forward-looking statements made under the SIP 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 company filings with the US Securities and Exchange Commission and the Stock Exchange of Hong Kong Limited.

Speaker #2: The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that Li Auto's earnings press release and this conference call include discussions of unaudited GAAP financial information, as well as unaudited non-GAAP financial measures.

Speaker #2: Please refer to Li Auto's disclosure documents on the IR section of our website. Which contain a reconciliation of the unaudited non-gap measures to comparable gap measures.

Speaker #2: Our CEO will start his remarks in Chinese. There will be English translation after he finishes all his remarks. With that, I will now turn the call over to our CEO, Mr. Xiang Li.

Speaker #2: Please go ahead.

Speaker #3: 大家好，我是李想，欢迎各位参加今天的业绩电话会议。今年一季度以来，我们的交付量进入到了增长轨道。1月至4月，理想汽车在20万元以上，中国新能源汽车市场重新回到中国品牌销量搒首的位置。纯电车型理想I6的销量稳定在2万辆每月的水平，是纯电SUV销量的top 3。5月15日，全新理想L9正式发布，并已于17日开启交付。全新L9提供Levis和Atto两个版本，定价分别为50.98万和45.98万元。全新一代理想L9的核心目标是要达成旗舰SUV的市场市场地位。在造型设计、悬架底盘、增程三电、智能算力等重要的旗舰产品认知层面，实现了行业的领先，定义了新一代旗舰SUV产品必须有的实力。在开始销售的前两周，成交价50万元以上的理想L9 Levis车型获得了超过1万的大订。预计理想L9 Levis可以在50万元以上的新能源SUV市场保持20%以上的市场份额。旗舰SUV的核心目标初步达成。6月份开始，我们将重点聚焦传播和推广理想L9 Atto车型，努力实现在40到50万的新能源SUV市场获得20%的市场份额。理想L9是理想L系列全系换代的开始。我们将在6月底发布全新一代的理想L8，一款非常棒的五座旗舰SUV。它强大的产品力就是一个理想L9的五座版。这和上一代L8要降级的本质是不同的。同时，新理想L8也是全球范围内操控最好的大尺寸SUV。五座二排的舒适性也是同级别体验最好的。随着理想L9的发布，自研芯片马赫M100和马赫VLA大模型成功一体化部署上车。这是软硬协同的量产落地，是理想汽车发展的重要里程碑，一颗全新的芯片能够第一次上车就稳定交付全部功能，在中国上书首次。马赫M100芯片为5纳米车规AI推理芯片，基于AI原生的动态数理流架构。这种创新的部署方式及其更强的算力为我们构建了长期的技术壁垒。通过软硬件一体化设计，M100芯片还以相近成本实现了三倍有效算力的提升。马赫M100支持我们将最新的自研马赫VLA部署在车端。该模型参数量较上一代提升十倍。马赫M100和马赫VLA的上车只是一个稳定的开始。后续凭借更大的模型规模以及更高精度、更高帧率的训练数据，智驾的体验将出现巨大的跃升。由于5月15日的发布会主要聚焦于硬件和性能的讲解，而我们的软件和智能化能力的进步，大概需要两到三个小时才能讲得比较好。同时还必须有用户提车以后方可真实体验。在6月，也就是下个月，我们还将举办软件和人工智能的发布，用足够多的时间深度讲解车机交互、机座模型、智能驾驶、系统agent、自研芯片在内的能力的真实体验，向大家直观呈现软件和具身智能究竟带来什么样的用户价值和巨大的提升。敬请关注。随着核心技术和全新产品矩阵的稳步落地，我们维持20%的全年销量增长目标。下面有请我们的CFO李铁为我们大家介绍财务的表现。

Li Xiang: 大家好，我是李想，欢迎各位参加今天的业绩电话会议。今年一季度以来，我们的交付量进入到了增长轨道。1月至4月，理想汽车在20万元以上中国新能源汽车市场重新回到中国品牌销量榜首的位置。纯电车型理想L6的销量稳定在2万辆每月的水平，是纯电SUV销量的top 3。5月15日，全新理想L9正式发布，并已于17日开启交付。全新L9提供Livis和Li Aqua两个版本，定价分别为50.98万和45.98万元。全新一代理想L9的核心目标是要达成旗舰SUV的市场地位。在造型设计、悬架底盘、增程钻电、智能算力等重要的旗舰产品认知层面，实现了行业的领先，定义了新一代旗舰SUV产品必须有的实力。在开始销售的前两周，成交价50万元以上的理想L9 Livis车型获得了超过1万的大定。预计理想L9 Livis可以在50万元以上的新能源SUV市场保持20%以上的市场份额，旗舰SUV的核心目标初步达成。6月份开始，我们将重点聚焦传播和推广理想L9 Aqua车型，努力实现40到50万的新能源SUV市场20%的市场份额。理想L9是理想L系列全系换代的开始。我们将在6月底发布全新一代的理想L8，一款非常棒的五座旗舰SUV。它强大的产品力就是一个理想L9的五座版，这和上一代L8要降级的本质是不同的。同时，新理想L8也是全球范围内操控最好的大尺寸SUV，五座二排的舒适性也是同级别体验最好的。随着理想L9的发布，自研芯片马赫M100和马赫VLA大模型成功一体化部署上车，这是软硬协同的量产落地，是理想汽车发展的重要里程碑。一颗全新的芯片能够第一次上车就稳定交付全部功能，在中国尚属首次。马赫M100芯片为五纳米车规AI推理芯片，基于AI原生的动态数据流架构。这种创新的部署方式及其更强的算力，为我们构建了长期的技术壁垒。通过软硬件一体化设计，M100芯片还以相近成本实现了三倍有效算力的提升。马赫M100支持我们将最新的自研马赫VLA部署在车端。该模型参数量较上一代提升10倍。马赫M100和马赫VLA的上车只是一个稳健的开始。后续凭借更大的模型规模以及更高精度、更高真率的训练数据，智驾的体验将出现巨大的跃升。由于5月15日的发布会主要聚焦于硬件和性能的讲解，而我们的软件和智能化能力的进步，大概需要两到三个小时才能讲得比较好，同时还必须有用户提车以后方可真实体验。在6月，也就是下个月，我们还将举办软件和人工智能的发布，用足够多的时间深度讲解车机交互、基座模型、智能驾驶、系统agent、自研芯片在内的能力的真实体验，向大家直观呈现软件和跻身智能究竟带来什么样的用户价值和巨大的提升。敬请关注。随着核心技术和全新产品矩阵的稳步落地，我们维持20%的全年销量增长目标。下面有请我们的CFO李铁为我们大家介绍财务的表现。

Speaker #4: Hello everyone, this is Li Xiang Li. Thank you for joining today's earnings conference call. In Q1 of this year, our deliveries entered a growth trajectory from January to April.

[Company Representative] (Li Auto): Hello everyone, this is Li Xiang. Thank you for joining today's earnings conference call. In Q1 of this year, our deliveries entered a growth trajectory. From January to April, Li Auto returned to the top position in sales among Chinese brands in the Chinese new energy vehicle market, priced at RMB 200,000 and above. Monthly sales of our best model, the Li L6, have stabilized at 20,000 units per month, ranking top three among all best SUVs. On 15 May, we launched the all-new Li L9, with delivery starting on 17 May. The all-new Li L9 comes in two trims, Livis and Ultra, priced at RMB 509,800 and RMB 459,800 respectively. The primary goal of our all-new generation Li L9 is to achieve the market position of a flagship SUV.

Speaker #4: Li Auto returned to the top position in sales among Chinese brands in the Chinese new energy vehicle market, priced at R&B 200,000 and above.

Speaker #4: Monthly sales of our BEV model, the BL6 i6, have stabilized at 20,000 units per month, ranking in the top three among all BEV SUVs. On May 15, we launched the all-new Li L9, with deliveries starting on May 17.

Speaker #4: The all-new L9 comes in two trims: Levis and Ultra, priced at RMB 509,800 and RMB 459,800, respectively. The primary goal of our all-new generation Li L9 is to achieve the market position of a flagship SUV.

Speaker #4: An important aspect of flagship product perception, such as styling, suspension, and chassis, range extender, and electric powertrain, as well as intelligence and computing power, it sets the standard for what the next generation of flagship SUVs must possess.

[Company Representative] (Li Auto): In important aspects of flagship product perception, such as styling, suspension and chassis, range extender and electric powertrain, as well as intelligence and computing power, it sets the standard for what the next generation of flagship SUVs must possess. Within just two weeks, the Li L9 Livis secured over 10,000 orders with transaction prices of over RMB 500,000. We expect that it will maintain a market share of over 20% in the RMB 500,000 and above NEV SUV market. Starting in June, we will focus our communication and promotion efforts on Li L9 Ultra, aiming to capture a 20% market share in the RMB 400,000 to 500,000 NEV SUV market. The all-new Li L9 marks the beginning of a series of new product rollouts for the Li L series. In late June, we will launch the all-new Li L8, an exceptional five-seater flagship SUV.

Speaker #4: Within just two weeks, the Li L9 Levis secured over 10,000 orders with transaction prices of over R&B 500,000. We expect that it will maintain a market share of over 20% in the R&B 500,000 and above NEV SUV market.

Speaker #4: Starting in June, we will focus our communication and promotion efforts on Li L9 Ultra. Aiming to capture a 20% market share in the R&B 400 to 500 thousand NEV SUV market.

Speaker #4: The all-new Li L9 marks the beginning of a series of new product rollouts for the Li L series. In late June, we will launch the all-new Li L8, an exceptional five-seater flagship SUV.

Speaker #4: As the five-seater version of the all-new Li L9, it is a complete overhaul from the previous generation, and it is no longer a downgrade from the L9.

[Company Representative] (Li Auto): As the five-seater version of the all-new Li L9, it is a complete overhaul from the previous generation, and it is no longer a downgrade from Li L9. We believe the all-new Li L8 might be the best handling large SUV globally while delivering the most comfortable five-seat experience in its class. With the launch of the all-new Li L9, we have successfully and fully deployed our proprietary Mahe M100 chip and the MindVLA model. This mass production of our full stack hardware software solution was a key milestone for us. We're the first company in China to deliver full functionalities on a brand new chip in its first ever on-vehicle deployment. The Mahe M100 chip is a 5 nanometer automotive-grade AI inference chip built on an AI-native dynamic data flow architecture. This unique architecture and superior computing power establish a long-term technological moat for us.

Speaker #4: We believe the all-new Li L8 must be might be the best handling large SUV globally, while delivering the most comfortable five-seat experience in its class.

Speaker #4: With the launch of the all-new Li L9, we have successfully and fully deployed our proprietary Mahe 100 chip and the MindVLA model. This mass production of our full-stack hardware, software solution was a key milestone for us.

Speaker #4: We're the first company in China to deliver full functionalities on a brand new chip in its first-ever on-vehicle deployment. The Mahe M100 chip is a five-nanometer automotive-grade AI inference chip built on an AI-native dynamic data flow architecture.

Speaker #4: This unique architecture and superior computing power established a long-term technological moat for us. With an integrated hardware and software design, our chip delivers three times the effective computing power per unit cost.

[Company Representative] (Li Auto): With an integrated hardware and software design, our chip delivers three times the effective computer power per unit cost. Furthermore, the MAHE M100 chip enables us to deploy our latest MindVLA model on our vehicles. The number of parameters in this new model increased tenfold from the previous version. The rollout of MAHE M100 and the MindVLA is just the starting point. Moving forward with larger models and data training at higher precision and higher frame rates, we expect a massive leap in the autonomous driving experience. The 15 May event focused primarily on hardware and vehicle performance. We believe it would require a dedicated 2 to 3-hour session to fully showcase our advancements in software and intelligence. We are planning a separate launch event in June dedicated to software and AI.

Speaker #4: Furthermore, the Mahe M100 chip enables us to deploy our latest MindVLA model on our vehicles. The number of parameters in this new model increased tenfold from the previous version.

Speaker #4: The rollout of Mahe M100 and the MindVLA is just the starting point. Moving forward, with larger models and data training at higher precision and higher frame rates, we expect a massive leap in the automotive and autonomous driving experience.

Speaker #4: On May 15, the May 15 event focused primarily on hardware and vehicle performance. We believe it would require a dedicated two- to three-hour session to fully showcase our advancements in software and intelligence.

Speaker #4: We're planning a separate launch event in June dedicated to software and AI. We'll take the time to provide an in-depth walkthrough of the real-world experience across in-cabin interaction, foundation model, autonomous driving, system agents, and our Mahe chip.

[Company Representative] (Li Auto): We'll take the time to provide an in-depth walkthrough of the real-world experience across in-cabin interaction, foundation model, autonomous driving, system agents, and our Mach chip. We look forward to giving a deep dive into the many things we can bring to our lives through software and embodied AI. Please stay tuned. With the steady rollout of our core technologies and our updated product portfolios, we maintain our full-year sales growth target of 20%. With that, I'll turn the call over to our CFO, Tie Li, to walk you through our financial performance. Thank you.

Speaker #4: We look forward to giving a deep dive into the many things we can bring to our lives through software and embodied AI. Please stay tuned.

Speaker #4: With the steady rollout of our core technologies and our updated product portfolio, we maintain our full-year sales growth target of 20%. With that, I'll turn the call over to our CFO Johnny to walk you through our financial performance.

Speaker #4: Thank you.

Tie Li: Thank you, Li Xiang. Hello everyone. Given time constraints, my remarks will be limited to Q1 financial highlights. All figures will be quoted in RMB unless otherwise stated. For further details, including the corresponding US dollar amount, we encourage you to refer to our earnings press release. Total revenues in Q1 were RMB 23 billion, down 11.4% year over year and 20.1% quarter over quarter. This included RMB 21.5 billion from vehicle sales, down 12.7% year over year and 21% quarter over quarter. The year over year decrease was mainly driven by a lower average selling price due to different product mix. The sequential decrease was mainly attributable to reduced vehicle deliveries due to seasonal factors related to the Chinese New Year holiday, and lower average selling price due to different product mix.

Speaker #5: Thank you, Lisa. Hello, everyone. Given time constraints, my remark will be limited to first quarter financial highlights. All figures will be quoted in R&B unless otherwise stated.

Speaker #5: For further details, including the corresponding US dollar amounts, we encourage you to refer to our earnings press release. Total revenues in the first quarter were $23 billion.

Speaker #5: Up 11.4% year over year, and 20.1% quarter over quarter. This included $21.5 billion from vehicle sales, up 12.7% year over year and 21% quarter over quarter.

Speaker #5: The year over year decrease was mainly driven by a lower average selling price due to different product mix. The sequential decrease was mainly attributable to reduced vehicle deliveries due to seasonal factors related to the Chinese New Year holiday.

Speaker #5: And a lower average selling price due to different product mix. Cost of sales in the first quarter was $21.2 billion. Up 2.7% year over year, and down 10.4% quarter over quarter.

Tie Li: Cost of sales in Q1 was RMB 21.2 billion, up 2.7% year-over-year and down 10.4% quarter-over-quarter. Gross profit in Q1 was RMB 1.8 billion, down 66% year-over-year and 64.8% quarter-over-quarter. Vehicle margin in Q1 was 6.1%, versus 19.8% in the same period last year and 15.8% in the prior quarter. The year-over-year and the sequential decrease was mainly due to the different product mix. Gross margin in Q1 was 7.9%, versus 20.5% in the same period last year and 17.8% in the prior quarter. Operating expenses in Q1 were RMB 4.8 billion, down 4.8% year-over-year and 13.8% quarter-over-quarter. R&D expenses in Q1 were RMB 2.7 billion, up 8.3% year-over-year and down 9.8% quarter-over-quarter.

Speaker #5: Gross profit in the first quarter was $1.8 billion, down 66% year over year and 64.8% quarter over quarter. Vehicle margin in the first quarter was 6.1%, versus 19.8% in the same period last year.

Speaker #5: And 16.8% in the prior quarter. The year-over-year and sequential decreases were mainly due to the different product mix. Gross margin in the first quarter was 7.9% versus 20.5% in the same period last year.

Speaker #5: And $17.8% in the prior quarter. Operating expenses in the first quarter were $4.8 billion. Down 4.8% year over year, and $13.8% quarter over quarter.

Speaker #5: R&D expenses in the first quarter were R&B $2.7 billion, up 8.3% year over year, and down $9.8% quarter over quarter. At C&A expenses in the first quarter were $2 billion.

Tie Li: SG&A expenses in Q1 were RMB 2 billion, down 19% year over year and 22.6% quarter over quarter. The year over year and sequential decrease was mainly due to the decreased employee compensation and reduced expenses related to marketing and promotion activities. Loss from operations in Q1 was RMB 3 billion, versus RMB 271.7 million income from operations in the same period last year, and RMB 442.6 million loss from operations in the prior quarter. Operating margin in Q1 was -13%, versus 1% in the same period last year, and -1.5% in the prior quarter. Net loss in Q1 was RMB 2.3 billion, versus RMB 646.6 million net income in the same period last year, and RMB 20.2 million net income in the prior quarter.

Speaker #5: Down 19% year over year, and $22.6% quarter over quarter. The year over year and sequential decrease was mainly due to the decrease employee compensation and reduced expenses related to marketing and promotion activities.

Speaker #5: Loss from operations in the first quarter was RMB 3 billion, versus RMB 271.7 million income from operations in the same period last year, and RMB 442.6 million loss from operations in the prior quarter.

Speaker #5: Operating margin in the first quarter was negative 13% versus 1% in the same period last year, and negative 1.5% in the prior quarter. Net loss in the first quarter was RMB 2.3 billion, versus RMB 646.6 million net income in the same period last year, and RMB 20.2 million net income in the prior quarter.

Speaker #5: Diluted net loss per ADS attributable to ordinary shareholders was $2.26 in the first quarter, versus diluted net earnings of $0.62 in the same period last year, and $0.01 in the prior quarter.

Tie Li: Diluted net loss per ADS attributable to ordinary shareholders was RMB 2.26 in Q1, versus diluted net earnings of RMB 0.62 in the same period last year and RMB 0.01 in the prior quarter. Turning to our cash flow and balance sheet. Net cash used in operating activities in Q1 was RMB 6.1 billion, versus RMB 1.7 billion used in the same period last year and RMB 3.5 billion provided in the prior quarter. Free cash flow was RMB -7.4 billion in Q1, versus RMB -2.5 billion in the same period last year and RMB 2.5 billion in the prior quarter. Our cash position remains solid with a quarter-end balance of RMB 94.3 billion. With this strong cash position, we continue to return to shareholders through a $1 billion share repurchase program announced in March.

Speaker #5: Turning to our cash flow and balance sheet. Net cash used in operating activities in the first quarter was R&B $6.1 billion versus $1.7 billion used in the same period last year, and $3.5 billion provided in the prior quarter.

Speaker #5: Great cash flow was negative $7.4 billion in the first quarter. Versus negative $2.5 billion in the same period last year, and $2.5 billion in the prior quarter.

Speaker #5: Our cash position remained solid, with a quarter-end balance of $94.3 billion. With this strong cash position, we continue to return to our shareholders through a $1 billion share repurchase program announced in March.

Speaker #5: To date, we have repurchased a total of $17.5 million Class A ordinary shares. Including $7.3 million ADS for a total consideration of US dollar $148.1 million.

Tie Li: To date, we have repurchased a total of 17.5 million Class A ordinary shares, including 7.3 million ADS, for a total consideration of $148.1 million. Now for our business outlook. For Q2 2026, the company expects the delivery to be between 95,000 and 100,000 vehicles, and quarterly total revenues to be between RMB 24.1 billion and 25.4 billion. This business outlook reflects the company's current and preliminary view on the business situation and market conditions.

Speaker #5: And now for our business outlook. For the second quarter of 2026, the company expects deliveries to be between 95,000 and 100,000 vehicles, and quarterly total revenues to be between $24.1 billion and $25.4 billion.

Speaker #5: This business outlook reflects the company's current and preliminary view on this business situation and market condition, which is subject to change. That concludes our prepared remarks.

Janet Zhang: Which is subject to change. That concludes our prepared remarks. I will now turn the call over to the operator and start our Q&A session. Thank you.

Speaker #5: I will now turn the call over to the operator and start our Q&A. Thank you.

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. If you wish to cancel your request, please press star two.

Operator 2: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. For the benefit of all participants on today's call, please limit yourself to two questions, and if you have additional questions, you can reenter the queue. If you are a Mandarin speaker, please ask your questions in Chinese first, then follow with English translation. Your first question comes from Tim Cao with Morgan Stanley.

Speaker #1: If you're on a speakerphone, please pick up the handset to ask your question. For the benefit of all participants on today's call, please limit yourself to two questions.

Speaker #1: And if you have additional questions, you can re-enter the queue. If you are a Mandarin speaker, please ask your questions in Chinese first, then follow with English translation.

Speaker #1: Your first question comes from Tin Sao with Morgan Stanley.

Tim Cao: 你好，我是Morgan Stanley的Tim，感谢接受我的提问，我有两个问题。第一个问题是有关于我们新车型L9，刚才我听到Li Xiang所提到的，上市以来大概Livis这边有超过1万的订单，想首先请教一下对于Li Xiang L9整体的订单表现如何？然后Livis版本目前也看到了，就等车周期已经19到21周，想请问一下公司产能目前准备如何？那另外一块就是公司二季度的指引中，L9这块占的份额有多少？So my first question is about L9.

Speaker #2: 感谢接受我的提问。我有两个问题。第一个问题是有关于我们新车型L9。刚才我听到了李祥所提到的就是说上市以来的话大概Levis这边有超过1万的订单。那想首先请教一下李祥，L9就是整体的订单表现如何？然后Levis版本目前也看到了就是等这周期已经是9到11周，想请问一下公司产能目前准备如何？那另外一块就是公司二季度的指引中，L9这块占的份额有多少？So my first question is about the L9. So how's the order inflow for the lead auto L9 currently? And the waiting period for the Levis variant, I have scratched to 9 to 11 weeks.

Tim Cao: How's the order inflow for the Li Auto L9 currently? The waiting period for the Livis variant have stretched to nine to 11 weeks. Could you share the company's production capacity arrangement for this model? What is the targeted sales mix of the L9 in your Q2 delivery guidance? That's my first question. Thank you.

Speaker #2: So could you share the company's production capacity arrangement for this model and what is the targeted sales mix of the L9 in your second quarter delivery guidance?

Speaker #2: That's my first question. Thank you.

Speaker #3: 我是马东辉，我来回答这个问题。李祥，全新的L9从订单结构来看的话，其中主力的Levis版本订单占比将近90%。然后顶配的Ultra版本的话占比是10%。这也充分体现了用户认可车型的话高阶技术的价值，愿意为高端配置买单。那也标志着李祥征程产品正式稳固在50万以上的高端市场，也实现了品牌向上的突破。那后续我们也将重点去强化Ultra版本的产品力传播，进一步优化订单的结构。那关于产能的话，全新L9是位于的话常州生产基地，可以和我们全新的L8贡献柔性生产。长期的生产保障能力稳定。那5月份和6月份的话是处于爬坡期，每个月的产能大概是在4,000到5,000台。那目前Levis版本的双色车身和专属的创新零部件供应的话瓶颈，目前我们已经联动核心供应商完成保供的方案。Ultra版本的话产能储备的话是充足的，可以根据市场的订单灵活调整排产。关于Q2全新L9的交付量，受上市初期产能爬坡的影响，预计交付的话8,000台左右。那Q3产能全面爬坡完成之后，我们有信心全新L9的稳态月销将稳步超越老款L9的月均水平。谢谢。

Donghui Ma: 我是马东辉，我来回答这个问题。理想全新的L9，从订单结构来看的话，其中主力的Livis版本订单占比将近90%，然后顶配的Ultra版本占比是10%，这也充分体现了用户认可车型的高阶技术的价值，愿意为高端配置买单。也标志着理想增程产品正式稳固在50万以上的高端市场，也实现了品牌向上的突破。后续我们也将重点去强化Ultra版本的产品力传播，进一步优化订单的结构。那关于产能的话，全新L9适配于常州生产基地，可以和我们全新的L8贡献柔性生产，长期的生产保障能力稳定。那五月份和六月份是处于爬坡期，每个月的产能大概是在4,000到5,000台。目前Livis版本的双色车身和专属的创新零部件供应的话紧紧，目前我们已经联动核心供应商完成保供的方案。Ultra版本的话，产能储备是充足的，可以根据市场的订单灵活调整排产。关于Q2，全新L9的交付量，受上市初期产能爬坡的影响，预计交付的话8,000台左右。那Q3产能全面爬坡完成之后，我们有信心全新L9的稳态月销将稳步超越老款L9的月均水平。谢谢。

Speaker #2: First of all, the order pattern for the L9 is very clear. The top selling Levis version accounts for over 90% of all orders, and the already fully loaded Ultra version accounts for the other less than 10%, which reflects the customer recognition of our latest advanced technology and the willingness to pay for features and performance.

[Company Representative] (Li Auto): First of all, the order pattern for the L9 is very clear. The top-selling Livis version accounts for over 90% of all orders, and the already fully loaded Ultra version accounts for the other less than 10%, which reflects the customer recognition of our latest advanced technology and the willingness to pay for features and performance, and which also showcases our steady foothold in the market above RMB 500,000, which is a very positive trend for the brand. Later down the road, we are going to strengthen the promotion efforts on the Ultra version and continue to optimize the order mix. Secondly, on production capacity, the all new L9 and L8 will both be manufactured in our Changzhou base, and the two cars can be adjusted flexibly between the production lines. In the long term, we're confident of the ability to manufacture these two models.

Speaker #2: And which also sets showcase our steady foothold in the market above R&B 500,000. Which is a very positive trend for the brand. Later down the road, we're going to strengthen the performance promotion efforts on the Ultra version, and continue to optimize the order mix.

Speaker #2: Secondly, on production capacity, the all-new L9 and L8 will both be manufactured in our Changzhou base, and the two cars can be adjusted flexibly between the production lines.

Speaker #2: So in the long term, we're confident of our the ability to manufacture these two models. May and June will be the ramp-up period for these two cars, and the monthly production capacity will fall between four and five thousand units per month.

[Company Representative] (Li Auto): May and June will be the ramp up period for these two cars, and the monthly production capacity will fall between 4,000 and 5,000 units per month. At the moment, the two-tone body color of Livis, and also some of the unique parts on this model are slightly supply constrained. We're now working around the clock with core suppliers to come up with solutions to make sure that we can deliver these cars to our customers as soon as possible. In the meantime, we have ample production capacity for the Ultra version, and we'll be able to adjust our production based on market demand. Finally, on L9 deliveries in Q2. Concerning the production ramp up, we expect to deliver around 8,000 units between the middle of May and the end of June.

Speaker #2: At the moment, the two-tone body color of Levis and also some of the unique parts on this model are supply constraints, slightly supply constraints. We're now working around the clock with core suppliers to come up with solutions to make sure that we can deliver these cars to our customers as soon as possible.

Speaker #2: In the meantime, we have ample production capacity for the Ultra version, and we'll be able to adjust our production based on market demand. And finally, on L9 deliveries in Q2, considering the production ramp-up, we're expected to deliver around 8,000 units between the middle of May and the end of June.

Speaker #2: After we fully ramp up in Q3, we're confident that the all-new generation L9 will reach a delivery level of over the previous generation L9.

[Company Representative] (Li Auto): After we fully ramp up in Q3, we're confident that the all-new generation L9 will reach a delivery level over the previous generation L9. Thank you.

Speaker #2: Thank you.

Speaker #4: 感谢通讯社我们的分享。那我第二个问题是有关于利润率这一块，就是首先公司对于二季度的利润率的预期大概是什么情况？然后去年来看的话，这个利润的转折点在哪？然后今年原材料成本上涨的一个背景之下，我们是否能够重返盈利？那另外一块我们也看到李祥目前I6这边占公司销量近六成。那公司毛利率的底在哪？然后李祥L9以及今年后续上市的车型毛利率的目标是不是可以请管理层分享一下？My second question is about the profitability. What's your profitability, Alex, for the second quarter? And from a full-year perspective, when do you expect to see a clear inflection point for earnings?

Tim Cao: 感谢东辉对我们的分享。那我第二个问题是关于利润率这一块，首先公司对于二季度的利润率的预期大概是什么情况，然后去年来看的话，这个利润的转折点在哪？然后今年原材料成本上涨的一个背景之下，我们是否能够重返盈利？另外一块我们也看到，Li Auto目前Li i6这一边占公司销量近六成。公司毛利率的底在哪儿？然后Li L9以及今年后续上市的车型毛利率的目标，是不是可以请管理层分享一下？My second question is about profitability.

Tim Cao: What's your profitability outlook for Q2? From a full-year perspective, when do you expect to see a clear inflection point for earnings? Given the rising raw material costs, is a return to profitability achievable this year? Separately, Li Auto i6 now accounts for nearly 60% of the total vehicle sales. What is the floor level of the overall gross profit margin? Lastly, could you also share the gross margin target for the Li L9 and other upcoming models scheduled to launch later this year? That's my follow-up question. Thank you.

Speaker #4: And given the rising raw material costs, is a return to profitability achievable this year? And separately, the Auto I6 now accounts for nearly 60% of total vehicle sales.

Speaker #4: What is the floor level of the overall gross profit margin? And lastly, could you also share the gross margin target for the L9 and the other upcoming models scheduled to launch later this year?

Speaker #4: That's my follow-up question. Thank you.

Tie Li: Hi team, this is John. I will take this question. Our Q1 gross margin was impacted by several factors, including the model refresh cycle. We need to refresh our L series starting from the Li L9, and also a higher mix of Li L6 and also Li L6 deliveries among the total, and also purchasing tax subsidy to the Li L6. However, with the launch and delivery for the all new Li L9, we expect our gross margin to recover about 10% in Q2. Looking at the full year, as we complete our model refresh cycle and optimize our production layout, we expect continued improvement in our gross margin. This year, our first priority is to successfully complete the refresh for the Li Auto series. We are pleased to see that the Li L9 delivery showcases our flagship capabilities and technology leadership.

Speaker #3: Hi, Tim. This is John. I will take this question. Our first quarter gross margin was impacted by several factors, including the model refresh cycle.

Speaker #3: We need to refresh our L series starting from the nine. And also a higher mix of I6 and also L6 deliveries in the amount total.

Speaker #3: And also purchasing tax subsidy to the I6. However, with the launch and the delivery for the all-new L9, we expect our gross margin to recover about 10% in the second quarter.

Speaker #3: Looking at the full year as we complete our model refresh cycle and optimize our production lineup, we expect continued improvement in our gross margin.

Speaker #3: This year, our first priority is to successfully complete the refresh for the L series. We are pleased to see that the L9 Levis showcases our flagship capabilities and technology leadership.

Speaker #3: It's gaining strong market recognition and has been gaining market share in the about half a million price range. The success of all these L9 Levis in establishing a solid foothold in this price segment marks a step forward, building upon the success of the original L9.

Tie Li: It's gaining strong market recognition and was gaining market share about halfway in price range. The success of all this Li L9 deliveries in establishing a solid foothold in this price segment marks a step forward, building upon the success of the original Li L9. This year's all new Li L series, as well as our BEV portfolio, including the Li i6 to be launched, with feature extensive in-house developed technologies, and lay a solid foundation for over the next two years. Thank you.

Speaker #3: This year's all-new L series as well as our EV portfolio, including the I9 to be launched with feature extensive in-house developed technologies. And lay a solid foundation for over the next two years.

Speaker #3: Thank you.

Speaker #4: Thank you.

Tim Cao: Thank you.

Speaker #1: Your next question comes from Wen Zhu's Gao with Cytex.

Operator 2: Your next question comes from Wenzhu Gao with CITIC Securities.

Speaker #4: 管理层好，我是中信证券的乔文祚。我有两个问题想请教管理层。第一个问题是关于智能化的。那么就是咱们的马赫M100芯片和马赫VLA大模型上车之后，那么目前看起来有怎样的实际效果？用户反馈如何？那么体现出什么样的智能化的差异？以及带来什么样的降本的效果？以及公司的智能驾驶下一步的发展方向是什么？这是我的第一个问题。谢谢。Let me ask in English. What are the real vehicle performance user feedback intelligent differentiation highlights and actual cost reduction achieved by M100 chips and Mark VLA large model?

[Analyst] (CITIC Securities): 管理层好，我是中信证券的乔文作。我有两个问题想请教管理层。第一个问题是关于智能化的，咱们的马赫 M100 芯片和马赫 VLA 大模型上车之后，目前看起来有怎样的实际效果？用户反馈如何？体现出什么样的智能化的差异，以及带来什么样的降本的效果？以及公司的智能驾驶下一步的发展方向是什么？这是我的第一个问题，谢谢。Let me ask in English.

[Analyst] (CITIC Securities): What are the real on-vehicle performance, user feedback, intelligent differentiation highlights, and actual cost reduction achieved by M100 chips and the Mach VLA large model? What is the next development direction of the company's auto-driving system? Thank you.

Speaker #4: And what is the next development direction of the company's auto driving system? Thank you.

Speaker #3: And this is Yen. Let me answer your question. Compared to our Aidas 8.0 version, this 9.0 version powered by our in-house Mahe M100 chip shows significantly improvement.

Yan Xie: This is Yan. Let me answer your question. Compared to our ADAS 8.0 version, this 9.0 version, powered by our in-house MAHE M100 chip, shows significant improvement. It mainly shows up in how car make decisions in complex scenarios with more human-like control, both longitudinally and laterally, and a smoother, more comfortable driving and riding experience overall. 9.0 is our first AD version running on our in-house chip, which is already one of the best in the highly competitive market, but it's really just the beginning. With the new platform, the sensor will collect data at higher precision and higher frame rates, while the powerful compute of M100 allows us to run larger and better algorithms. This new platform let us improve data, compute, and algorithms all at the same time. That's what will drive much faster leap in our autonomous driving capabilities.

Speaker #3: It mainly shows up in our in-house car making decisions in complex scenarios, with more human-like control both longitudinally and laterally, and smoother, more comfortable driving and riding experience overall.

Speaker #3: 9.0 is our first AD version running on our in-house chip, which is already one of the best in the highly competitive market. But it's really just the beginning.

Speaker #3: With the new platform, the sensor will collect data at higher precision and higher frame rates. Which while the powerful compute of M100 allows us to run larger and better algorithms, so this new platform let us improve data compute and algorithms all at the same time.

Speaker #3: And this that's what will drive much faster leap in our autonomous driving capabilities. For the next step of autonomous driving, first we will further scale up our input data and precision models enabling more driving-related semantic information to be fed into the neural network.

Yan Xie: For the next step of autonomous driving, first, we will further scale up our input data and precision models, enabling more driving-related semantic information to be fed into the neural network.

Speaker #3: This allows the model to see significantly more signals right from the sensors. Second, we will improve the model's cognitive capabilities, especially its ability to learn short-term cause and effect relationships.

Yan Xie: This allows the model to see significantly more signals right from the sensors. Second, we will improve the model's cognitive capabilities, especially its ability to learn short-term cause and effect relationships. This empowers the model to go beyond simple behavior fitting, allowing it to make human-like judgments in more complex urban traffic scenarios. Finally, we will make the system much better at the execution stage. With more compute latency optimizations from our in-house operating system and a fully drive-by-wire chassis, a car will control motion more precisely and respond faster. That means the autonomous driving system will feel more confident and more importantly, safer. Also, because we design the software and hardware together, our in-house M100 chip delivers triple the computing powers of the previous generation platform at half the cost. Our similar cost brings six times higher effective computing power. Under the same model, our input frame rate has tripled with an even greater increase in inference frame rate. Our goal is to match the performance of Tesla's FSD V14 in the United States in H2 of this year. The higher performance AI inference system built around M100 chip gave us a strong foundation to make this happen. Thank you.

Speaker #3: This empowers the model to go beyond the simple behavior fitting. Allowing it to make human-like judgments in more complex urban traffic scenarios. Finally, we will make the system much better at the execution stage.

Speaker #3: With more compute, latency optimizations from our in-house operating system, and a fully drive-by-wire chassis, our car will control motion more precisely and respond faster.

Speaker #3: This that means the autonomous driving system will feel more confident and more importantly safer. Also, because we designed the software and the hardware together, our in-house M100 chip delivers triple the computing powers of the previous generation platform at half the cost.

Speaker #3: Or similar cost brings six times higher effective computing power. Under the same model, our input frame rates has tripled. With even greater increase in inference frame rates.

Speaker #3: Our goal is to match the performance of Tesla's FSDV 14 in the United States in the second half of this year. The higher performance AI inference system built around M100 chip give us a strong foundation to make this happen.

Speaker #3: Thank you.

Speaker #4: 谢谢管理层的回答。我的第二个问题是关于销售端的。那么自我们的门店合伙人计划实施以来，目前我们所看到的试点门店的坪效、单店的月均销量、人均产出，还有费用率等关键指标，相较于改革之前发生了哪些具体的变化？以及这个计划当前对于销量的拉动是否达到预期？公司又是如何量化评估该计划对Q3以及之后销量提振作用的？谢谢。Let me ask in English. Since the implementation of the store partner program, what specific changes have been observed in key metrics such as sales per unit area?

[Analyst] (CITIC Securities): 谢谢郭毅总的回答。我的第二个问题是关于销售端的。那么自我们的门店合伙人计划实施以来，目前我们所看到的试点门店的频效、单店的月均的销量、人均的产出，还有备用率等关键的指标，相较于我们改革之前发生了什么样的具体的变化？以及这个计划当前对于销量的拉动是否达到预期？以及公司如何量化评估这个计划对 Q3 以及之后销量的一个提振作用？谢谢。Let me ask in English. Since the implementation of the store partner program, what specific changes have been observed in key metrics such as sales per unit area, average monthly sales per store, output per employee, and expense ratio in pilot stores are compared to before the reform? Has the program's current impact on sales volume met expectations? How does the company quantitatively evaluate the program's effect on boosting sales in Q3 and beyond? Thank you.

Speaker #4: Average monthly sales per story, output per employee, and expense ratio in pilot stores are compared to before the reform. Has the program's current volume met expectations?

Speaker #4: And how does the company quantitatively evaluate the program's effort effect on boosting sales in Q3 and beyond? Thank you.

Speaker #3: 我是马东辉。我来回答这个问题。门店合伙人计划推进以来，通过充分的下放经营决策权和利润的分享权，激活了一线团队的主观流动性和经营的活力。首先我们可以看到店长的经营思维发生了很大的转变。从传统的执行，然后变成真正的经营者。可以自主去审视各项经营的投入产出，以经营效率为核心开展精细化的管理。同时也提升了核心管理团队的稳定性和长期的经营意愿。那门店合伙人可以长期去深耕一个门店，工作重心也可以从单纯的去追逐短期的销量业绩，逐步转向深耕本地用户的运营，优化区域的口碑，构建门店长期的核心竞争力。从阶段性的经营现状来看的话，那一季度是属于汽车行业传统业务的淡季，并且合伙人计划仍然是处于初期的落地阶段。从全国平均来看的话，门店月度的订单目标均实现了超额完成，并且也顺利完成了老款L系列的清除节奏，也提升了用户服务的满意度。那后续的话，随着店长经营管理经验的持续积累，然后叠加公司的赋能培训的话体系，那全国门店精细化运营的能力将持续的话提升。谢谢。

Donghui Ma: 我是马东辉，我来回答这个问题。门店合伙人计划推进以来，通过充分地下放经营决策权和利润的分享权，激活了一线团队的主观能动性和经营的活力。首先我们可以看到店长的经营思维发生了很大的转变，从传统的执行变成真正的经营者，可以自主去审视各项经营的投入产出，以经营效率为核心，开展精细化的管理。同时也提升了核心管理团队的稳定性和长期的经营意愿。那门店合伙人可以长期去深耕一个门店，工作重心也可以从单纯地去追逐短期的销量业绩，逐步转向深耕本地用户的运营，优化区域的口碑，构建门店长期的核心竞争力。从阶段性的经营现状来看的话，一季度是属于汽车行业传统业务的淡季，并且合伙人计划仍然是处于初期的落地阶段。从全国平均来看的话，门店月度的订单目标均实现了超额完成，并且也顺利完成了老款L系列的清库节奏，也提升了用户服务的满意度。那后续的话，随着店长经营管理经验的持续积累，然后叠加公司的赋能培训的话体系，那全国门店精细化运营的能力将持续提升。谢谢。

Speaker #4: Since we started to roll out the store partner program, as we grant the store managers genuine decision-making authority and profit-sharing rights, it has really fully unlocked the potential of our frontline sales team.

[Company Representative] (Li Auto): Since we started to roll out the store partner program as we grant those store managers with genuine decision-making authority and profit-sharing rights, it has really fully unlocked the potential of our frontline sales team. First of all, on the store manager level, we can see a fundamental shift in mindset. They've transitioned from previously store executors to actual business operators. They're able to independently view the ROIs of different business activities and really focus on the operating efficiency. In the meantime, it has also increased the stability of core management teams and long-term commitment. The store management programs have led the store owner to invest in the store long term. They've shifted their focus from chasing short-term sales targets to cultivating the local user base, spreading word of mouth, and building the competitiveness of their stores in the long term. From a timing standpoint, our Q1 is a typical low season in car sales, and we're in the early stage of rolling out the store manager program. On average, our stores have all beaten their monthly sales targets.

Speaker #4: First of all, on the store manager level, we can see a fundamental shift in mindset. They've transitioned from previously store execution executors to actual business operators.

Speaker #4: They're able to independently view the ROIs of a different business activities and really focus on the operating efficiency. In the meantime, it has also increased the stability of core management teams and long-term commitment.

Speaker #4: The store management programs have led the store owner to invest in the store long-term. They've shifted their focus from chasing short-term sales targets to cultivating the local user base and spreading word of mouth and building the competitiveness of their stores in the long-term.

Speaker #4: From a timing standpoint, Q1 is typically a low season for car sales, and we're in the early stages of rolling out the store manager program.

Speaker #4: On average, each our stores have all beaten their monthly sales targets; we have also successfully cleared the inventory for the previous generation L series, and also significantly increased user satisfaction.

[Company Representative] (Li Auto): We have also successfully cleared the inventory for the previous generation L series and also significantly increased user satisfaction. Going forward, as our store managers accumulate more operational experience and combined with our training system and support system, we believe that the operational efficiency and capability of our stores will continue to increase. Thank you.

Speaker #4: Going forward, as our store managers accumulate more operational experience and combined with our training system and support system, we believe that the operational efficiency and capability of our stores will continue to increase.

Speaker #4: Thank you.

Speaker #1: Your next question comes from Tina Howe with Goldman Sachs.

Operator 2: Your next question comes from Tina Hou with Goldman Sachs.

Speaker #2: 非常感谢管理层的时间。我是高盛的Tina。我第一个问题是想要问一下咱们即将上市的理想L8，目前有一些什么信息可以分享吗？So my first question is regarding the upcoming Li Auto L8 facelift. So wondering if there is any information that management can share at this point?

Tina Hou: 非常感谢管理层的时间，我是高盛的 Tina。我第一个问题是想要问一下咱们即将上市的理想 L8，目前有一些什么信息可以分享吗？My first question is regarding the upcoming Li Auto L8 facelift. Wondering if there is any information that management can share at this point.

Speaker #3: 我是马东辉。我来回答这个问题。我们L系列的话成品矩阵会随着L8的上市会更加的清晰。那L9的话是主打旗舰的6座。那全新的L8会聚焦旗舰的5座。两款车型会形成高效的互补，持续巩固品牌在高端旗舰市场的优势地位。L8已经在4月份完成了更新部新车的公告申报。那计划的话是6月底正式发布，并启动交付。相较于老款车型，新车的车身尺寸和轴距均有所加长。车内升级为5座的布局，后排乘坐空间得到大幅的优化，整体乘坐体验全面提升。那在动力部分的话，新车会搭载我们自研的1.5T增程系统，同时配备72.7度5C大容量的电池。电池容量和全新的L9保持一致，并且很多技术都是共享同一技术平台。在能耗和续航表现上，十分出色。那另外的话，车身车辆还提供了双座车身、电动踏板等丰富的个性化选装方案。那更多的信息呢，请大家关注我们6月份的发布会。谢谢。

Donghui Ma: 我是马东辉，我来回答这个问题。我们L系列的话，产品矩阵会随着L8的上市会更加的清晰。那L9的话是主打旗舰的六座，全新的L8会聚焦旗舰的五座，两款车型会形成高效的互补，持续巩固品牌在高端旗舰市场的优势地位。L8已经在四月份完成了工信部新车的公告申报，计划是六月底正式发布并启动交付。相较于老款车型，新车的车身尺寸和轴距均有所加长，车内升级为五座的布局，后排乘坐空间得到大幅的优化，整体乘坐体验全面提升。在动力部分的话，新车会搭载我们自研的1.5T增程系统，同时配备72.7度5C大容量的电池，电池容量和全新的L9保持一致，并且很多技术都是共享同一技术平台，在能耗和续航表现上十分出色。另外的话，车辆还提供了双色车身、电动踏板等丰富的个性化选装方案。那更多的信息呢，请大家关注我们六月份的发布会。谢谢。

Speaker #4: 好。As we start to complete our L series product lineup, it has become clear that L9 will be a flagship six-seater and the new L8 will be a flagship five-seater.

[Company Representative] (Li Auto): As we start to complete our L series product lineup, it is becoming clear that L9 will be a flagship six-seater and the new L8 will be a flagship five-seater. The two cars will complement each other and continue to strengthen our foothold in the high-end flagship market. The L8 has already been registered with the MIIT in April 2026, and we're planning to launch and deliver it in June 2026. Compared to the previous generation, the new car is larger in overall dimensions as well as wheelbase. The car will feature a five-seat configuration with the rear passenger space significantly improved and the overall riding experience also much improved.

Speaker #4: The two cars will complement each other and continue to strengthen our foothold in high-end flagship market. The L8 has already been registered with the MIIT in April of 2026, and we're planning to launch and deliver it in June of 2026.

Speaker #4: Compared to the previous generation, the new car is larger in overall dimensions as well as wheelbase. The car will feature a five-seat configuration with a rear passenger space significantly improved and overall riding experience also much improved.

Speaker #4: On the powertrain front, the car will also feature our in-house developed 1.5-liter turbocharged range extender system, with a 72.7-kilowatt-hour, five-seat, large capacity battery, which is exactly the same as the one seen on the L9.

[Company Representative] (Li Auto): On the powertrain front, the car will also feature our in-house developed 1.5-liter turbocharged range extender system with a 72.7 kWh 5C large capacity battery, which is exactly the same as the one seen on the L9. The two cars will share the same technological platform and have great energy consumption and range performance. Apart from that, the L8 will also be featured in a two-tone body color as an option, and also an electric running board as another option. For more information, please stay tuned for our launch event in June. Thank you.

Speaker #4: The two cars will share the same technological platform and have great energy consumption and range performance. Apart from that, the L8 will also feature a two-tone body color as an option, and also an electric running board as another option.

Speaker #4: For more information, please stay tuned for our launch event in June. Thank you.

Speaker #2: Well, thanks. 第二个问题是关于就是AI的研发这一块，想要问一下管理层如何看待目前AI行业的这个投入，还有一个竞争格局，以及公司对AI行业的竞争有什么自己的思考。 So my second question is regarding AI. So, wondering how does management view the current competition and investment in the AI industry, and also what is management's thought on the competition in the industry?

Tina Hou: 好，感谢。我第二个问题是关于 AI 的研发这一块，想问一下管理层如何看待目前 AI 行业的投入，还有一个竞争格局，以及公司对 AI 行业的竞争有什么自己的思考？My second question is regarding AI. Wondering how does management view the current competition and investment in the AI industry? Also, what is management's thought on the competition in the industry?

Speaker #3: 你好，我是李讲。我们认为未来的三到五年，中高端的智能汽车的竞争本质上就是具身智能的竞争，而整个行业最高的技术壁垒以及决定公司长期经营力核心，我们将聚焦于芯片和大模型的深度的联合设计。根据我们自研芯片的真实案例，过去然后我们的技术和信息都是流动的，然后大家都在使用英伟达的芯片的时候，我们虽然做了很多的创新，但是别人可以通过挖走我们的人，就可以做到和我们相似的水平。随着我们自研算力更强芯片以及采用完全不同的，然后模型的部署的方式和模型的规模，通过软硬化一体的垂直整合，然后这让挖人的竞争方式就彻底失效。后续我们还会把系统化的能力变成核心壁垒，我们的能力和产出将不再会被别人简单的拿走。那此外时间也是重要的因素，我们自研芯片从启动到正式上车是用了四年的时间，新的十年我们也会保持技术和创新的竞争力，更要保持有足够领先性足够高和时间足够长的技术壁垒。

Li Xiang: 你好，我是李想。我们认为未来的三到五年，中高端的智能汽车的竞争本质上就是汽车智能的竞争。而整个行业最高的技术壁垒以及决定公司长期竞争力核心，我们将聚焦于芯片和大模型的深度的联合设计。根据我们自研芯片的真实案例，过去我们的技术和信息都是流动的，大家都在使用NVIDIA的芯片的时候，我们虽然做了很多的创新，但是别人可以通过挖走我们的人，就可以做到和我们相似的水平。随着我们自研算力更强芯片，以及采用完全不同的模型的部署的方式和模型的规模，通过软硬一体的垂直整合，这让挖人的竞争方式就彻底失效。后续我们还会把系统化的能力变成核心壁垒，我们的能力和产出将不再会被别人简单地拿走。此外，时间也是重要的因素。我们自研芯片从启动到正式上车，使用了四年的时间。新的十年，我们也会保持技术和创新的竞争力，更要保持领先性足够高和时间足够长的技术壁垒。

Speaker #4: In our view, the competition in the mid to high-end smart vehicle segment over the next three to five years will really be a competition of embodied AI.

[Company Representative] (Li Auto): In our view, the competition in the mid to high-end smart vehicle segment over the next three to five years will really be a competition of embodied AI.

Speaker #4: The highest technical barrier and the core determinant of a company's long-term success and competitiveness will be a deeply integrated chip and large foundational model.

[Company Representative] (Li Auto): The highest technical barrier and the core determinant of a company's long-term success and competitive advantage will be a deeply integrated chip and large foundational model. Take our real world experience with in-house developed chips as an example, in the past technology and information really flowed freely in the industry because everybody used NVIDIA chips and others could easily poach our teams, our former employees, and reach a very close level of performance despite our many innovations. However, with our in-house developed chips and much more computing power, much greater scale for models, we use a completely different architecture making this traditional approach ineffective because we're fully integrated vertically between hardware and software. Going forward, we will turn our systematic ability into our core mode. Our capabilities and outputs will no longer be easily replicated by others. Another critical factor is time. It took us four years to bring our in-house chips from starting the program to vehicle production. In the next decade, while maintaining our technological and innovation edge, we will also ensure the technological barriers that are sufficiently advanced and provide long enough time horizon as a competitive advantage. Thank you.

Speaker #4: Take our real-world experience with in-house developed chips as an example. As in the past, technology and information really flowed freely in the industry because everybody used NVIDIA chips and others could easily approach our teams, our former employees, and reach very close level of performance despite our many innovations.

Speaker #4: However, with our in-house developed chips and much greater scale and much more computing power, much greater scale for models, we will use a completely different architecture and making this traditional poaching approach ineffective.

Speaker #4: Because we're fully integrated vertically between hardware and software. So going forward, we will turn our systematic capabilities into our core moat. Our capabilities and outputs will no longer be easily replicated by others.

Speaker #4: Another critical factor is time. It took us four years to bring our in-house chips from starting the program to vehicle production. In the next decade, while maintaining our technological innovation edge, we'll also ensure the technological barriers that are sufficiently advanced and provide long-term and long enough time horizon as a competitive advantage.

Speaker #4: Thank you.

Speaker #2: Your next question comes from Jingcheng with CICC.

Operator 2: Your next question comes from Chang Jing with CICC.

Chang Jing: 好的，感谢接受我的提问。首先我这边第一个问题是关于机器人智能，刚刚李想这边也提到，6月份我们会召开比较详细的偏智能化的一些发布会，会讲智能芯片等东西，想问一下目前的话，我们对于可能人形机器人、机器人智能这边一些战略和规划的中心。So my first question is also about the intelligence. As just mentioned by Mr. Li Xiang, we will hold a more detailed intelligence technology launch event in June. I would like to ask about do we have any updates on our current strategy and also planning regarding to the human robotic?

Speaker #5: 这是我的提问。首先我这边第一个问题是关于具身智能，发光立香总这边也提到六月份我们会召开比较这个比较详细的这个偏智能化的一些发布会，会讲自研芯片等东西。想问一下就目前的话，我们对于可能人形机器人具身智能这边的一些战略和规划的中心。So my first question is about the also about the intelligence. As just mentioned by Mr. Li Xiang，we will have a more detailed intelligence technology launch event in June。So I would like to ask about do we have any updates on our current strategy and also planning regarding to the human robotics?

Speaker #3: 你好，我是李讲。我觉得从长远来看，我们能够清楚地看到，无论是我们的工厂门店还是我们的用户，都需要人形机器人。那从市场格局来看，然后我们认为，然后创业公司对像我们这样的，然后这个初步迁移收入的中场，还有那些更大规模的大厂，其实都会进入到机器人的赛道中来。所以机器人既不属于既不独属于我们，然后也不独属于创业公司。那机器人是标准的劳动力，是任何一个希望在该领域有所作为的公司都会去做的产品，并不专属于任何一类型的公司。然后只要公司的业务需要人，就一定会制造机器人。只不过然后到底是用外购的方式，还是用自制的方式，这是唯一的区别。那另外最后我们看的就是说人形机器人形成规模化的非常成规模的商业化，对和工业化。举个例子比较像2010年到2015年的，然后这个电动车领域，对我觉得要想达到这个程度，基本上至少还需要三年以上的时间。对甚至更久。所以在这个期间还有非常非常多的，然后技术需要去攻克，因为在每一个细微的环节上，其实接下来的技术路线，然后都没有达成共识。对都需要去解决。这是我们的判断。

Li Xiang: 你好，我是李想。我觉得从长远来看，我们能够清楚地看到，无论是我们的工厂、门店，还是我们的用户，都需要人形机器人。那从市场格局来看，我们认为创业公司，像我们这样的初步牵引收入的中场，还有那些更大规模的大厂，其实都会进入到机器人的赛道中来。所以机器人既不独属于我们，也不独属于创业公司。那机器人是标准的劳动力，是任何一个希望在该领域有所作为的公司都会去做的产品，并不专属于任何一类型的公司。只要公司的业务需要人，就一定会制造机器人，只不过到底是用外购的方式，还是用自制的方式，这是唯一的区别。那另外，最后我们看的人形机器人形成非常成规模的商业化和工业化。举个例子，比较像2010年到2015年的电动车领域，我觉得要想达到这个程度，基本上至少还需要3年以上的时间，甚至更久。所以在这个期间还有非常非常多的技术需要去攻克，因为在每一个细微的环节上，其实接下来的技术路线都没有达成共识，都需要去解决。这是我们的判断。

Speaker #4: In the long run, we can clearly see whether it's our factories or stores and our users will all need humanoid robots. And we believe that robots should not be limited to startups or medium-sized companies or large companies.

[Company Representative] (Li Auto): In the long run, we can clearly see whether it's our factories, our stores, or our users, all need humanoid robots. We believe that robots should not be limited to startups or medium-sized companies or large companies, it should not be limited to us. Robots will be a standardized labor. It's something that any company who's willing to make a difference in their field should adopt. It is not limited to any specific type of companies. As long as a company needs human beings, it will use robots. It's only a difference between whether they purchase a robot from somebody else or they develop it in-house.

Speaker #4: It should not be limited to us. Robots will be a standardized labor. And it's something that any company who is willing to make a difference in their field should adopt and is not limited to any specific type of companies.

Speaker #4: As long as a company needs human beings, it will use robots. It's only a difference between whether they purchase the robots from somebody else or they develop it in-house.

Speaker #4: That would be the only difference. So from a lot time standpoint, my belief is that for humanoid robots to reach full-scale development, deployment, and commercialization, to a point just like where we got to with electric vehicles between 2010 and 2015, to get to that point takes will still take more than three years.

[Company Representative] (Li Auto): That would be the only difference. From a long-time standpoint, my belief is that for humanoid robots to reach full-scale development, deployment, and commercialization to a point just like where we got to with electric vehicles between 2010 and 2015. To get to that point will still take more than three years, because in every specific area, the technological path has not converged and there are many problems that remain to be solved. In between this period, we still need to work on solving many hard problems. Thank you.

Speaker #4: Because in every specific area, the technological path has not converged and there are many problems that remain to be solved. So in between this period, we still need to work on solving many hard problems.

Speaker #4: Thank you.

Speaker #5: 好的。第二个问题是关于这个海外市场。能否请再更新一下我们最新的这个海外的战略。当然对于可能中高端品牌去突破海外市场，是否面临更大的一个挑战。那么能否再分享一下我们2026年或者更长远的规划，那包括像海外扩展的一些实际的节奏、贡献，包括像我们的目标、重点市场以及车型节奏等。So my second question is about the overseas market。So could you share more updates on our latest overseas strategy including our plans for 2026 and also the following years?

Chang Jing: 好的。第二个问题是关于海外市场，能否请再更新一下我们最新的海外的战略？当然对于可能中高端品牌去突破海外市场，是否面临更大的一个挑战？那么能否再分享一下我们 2026 年或者更长远的规划，包括像海外扩展的一些实际的节奏、贡献，包括像我们的目标、重点市场以及车型节奏等。My second question is about the overseas market. Could you share more updates on our latest overseas strategy, including our plans for 2026 and also the following years, our pace and also the contribution of international expansion, such as the overseas market, sales volume target, key regions, and also our product pipelines in overseas markets?

Speaker #5: Our pace, and also the contribution of international expansion, such as the overseas market sales volume target, key regions, and also our product pipelines.

Speaker #3: 我是马东辉。我来回答这个问题。然后李想汽车的国际化战略是在稳步的推进。然后关于海外市场的话，我们是采取分阶段拓展的思路。结合当地的市场规模和竞争格局，我们会灵活去选用是设立子公司发展经销商，还是去签约独家总代的模式。而是希望依托当地的头部合作伙伴，快速去搭建销售、交付、售后一体的完整服务体系。李想汽车的品牌和产品也持续获得了海外市场的认可。在北京四月份车展，我们也收获了大量的海外媒体和用户的关注。那我们也正式签约了向阿联酋、沙特头部的经销商。对于中东、中亚等市场，我们会以L系列征程车型为主力。那首款海外专属的版本全新的L9，会结合当地的使用场景，在充电性能、座舱、空调热管理等软硬件层面会进行的话优化。在Q3将正式进入的话中东、中亚的市场。那在五月份我们将陆续进入中国澳门、柬埔寨、老挝、缅甸，不断去深耕东南亚的市场。在下半年我们还会在欧洲市场推出纯电的车型I6，并且针对于又多的市场，我们在年底会在中国香港、新加坡等亚太核心区域投放Mega的又多版本。在产品端我们会坚持区域精准的适配。那后续所有新车型在研发阶段，我们便会同步完成海外法规的适配。更好去支持李想国际化的战略。谢谢。

Donghui Ma: 我是马东辉，我来回答这个问题。理想汽车的国际化战略是在稳步地推进。关于海外市场，我们是采取分阶段拓展的思路，结合当地的市场规模和竞争格局，我们会灵活去选用是设立子公司发展经销商，还是去签约独家总代的模式。是希望依托当地的头部合作伙伴，快速去搭建销售、交付、售后一体的完整服务体系。理想汽车的品牌和产品也持续获得了海外市场的认可。在北京四月份车展，我们也收获了大量的海外媒体和用户的关注。我们也正式签约了像阿联酋、沙特头部的经销商。对于中东、中亚等市场，我们会以L系列增程车型为主力，首款海外专属的版本，全新的Li L9，会结合当地的使用场景，在充电性能、座舱、空调热管理等软硬件层面会进行优化。在Q3将正式进入中东、中亚的市场。在五月份，我们将陆续进入中国澳门、柬埔寨、老挝、缅甸，不断去深耕东南亚的市场。在下半年，我们还会在欧洲市场推出纯电的车型：Li i6。并且针对于右舵的市场，我们在年底会在中国香港、新加坡等亚太核心区域，投放Li MEGA的右舵版本。在产品端，我们会坚持区域精准的适配。后续所有新车型在研发阶段，我们便会同步完成海外法规的适配，更好去支持理想国际化的战略。谢谢。

Speaker #4: We're steadfastly advancing our internationalization strategy and taking a fixed approach to this. Based on the local market size, industry landscape, and competitiveness, we will have choose between a model including establishing local subsidiaries, working with local dealerships, or using the sole local sole distributor.

[Company Representative] (Li Auto): We're steadfastly advancing our internationalization strategy and taking a phased approach to this. Based on the local market size, industry landscape, and competitiveness, we will have to choose between a model including establishing local subsidiaries, working with local dealerships, or using a local sole distributor. In any case, we want to work with leading companies or partners locally and quickly build an integrated service system encompassing sales, delivery, and after-sales. Our product and brand have continued to be recognized globally. In the Beijing Auto Show in April, we have received a lot of attention from overseas media and users and partners. We have also officially signed contracts with Saudi Arabia and UAE distributors. In the Middle East and Central Asia market, we will be taking our L series, the range extender product line, as the main product offer there.

Speaker #4: In any case, we want to work with leading companies or partners locally and quickly build an integrated service system encompassing sales, delivery, and after-sales.

Speaker #4: Our product and brands have continued to be recognized globally in April in the Beijing Auto Show in April, we have received a lot of attention from overseas media, and users, and partners.

Speaker #4: We have also officially signed contracts with Saudi Arabia and UAE distributors. In the Middle East and Middle Asia market, Central Asia market, we will be taking our L series, the range extender product line, as the main product offer there.

Speaker #4: The first product will be an overseas dedicated all-new Li-L9, which is optimized based on local conditions in charging capability, UI, and software ecosystem thermal management.

[Company Representative] (Li Auto): The first product will be an overseas dedicated all-new Li L9, which is optimized based on local conditions in charging capability, UI and software ecosystem, thermal management, including a series of hardware and software optimizations. We will be entering the Middle East and Central Asia market in Q3. Starting in May, we will be gradually entering markets like Macau, China, Cambodia, Laos, and Myanmar to further cultivate our Southeast Asia market. In H2 of this year, we will introduce the all electric Li i6 in Europe. Additionally, for right-hand drive markets, we will launch the right-hand drive version of our Li MEGA in key Asia Pacific markets, including Hong Kong, China, and Singapore by the end of this year. Regarding products, we're implementing a precise regional customization approach.

Speaker #4: Including a series of hardware and software optimizations. We will also be entering the Middle we'll be entering the Middle East and Central Asia market in Q3.

Speaker #4: Also starting in May, we will be graduating gradually entering markets like Macau, China, Cambodia, Laos, and Myanmar to further cultivate our Southeast Asia market.

Speaker #4: In the second half of this year, we will introduce the all-electric Li-I6 in Europe. And additionally, for right-hand drive markets, we will launch the right-hand drive version of our Li-Mega in key Asia-Pacific markets including Hong Kong, mainland China, Hong Kong, China, and Singapore.

Speaker #4: By the end of this year. Regarding products, we're implementing a precise regional customization approach. All of our upcoming models will incorporate compliance with overseas regulations right from the early stage of R&D to better support our ongoing global strategy.

[Company Representative] (Li Auto): All of our upcoming models will incorporate compliance with overseas regulations right from the early stage of R&D to better support our ongoing global strategy. Thank you.

Speaker #4: Thank you.

Speaker #5: As we are reaching the end of our conference call now, I'd like to turn the call back over to the company for closing remarks.

Operator 2: As we are reaching the end of our conference call now, I'd like to turn the call back over to the company for closing remarks. Ms. Janet Zhang, please go ahead.

Speaker #5: Ms. Janet Chang, please go ahead.

Speaker #6: Thank you once again for joining us today. If you have further questions, please feel free to contact Li Auto's Investor Relations team through the contact information provided on our IR website.

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