NIO (NIO) 30 Apr 212021 Q1 Earnings call transcript

Hello, ladies and gentlemen. Thank you for standing by for NIO Incorporated’s First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Today’s conference call is being recorded. I will now turn the call over to your host, Ms. Markets Relations. Capital from Tang and Investor Eve Please Eve. go ahead,

were Wei, good Mr. everyone. morning, company’s Mr. Founder, Executive NIO’s the Jade press company’s results posted first On and Good earlier Chairman have Steven financial in Feng, of to today release operating IR Stanley Mr. The quarter evening, and at call. Officer; Welcome and are VP AVP the Chief the conference Finance; XXXX and today’s website. Board published we and call, Officer; Markets of William Li, Financial Qu, of Chief Investor and Capital the Ms. Relations. earnings

Securities Before that under Litigation today’s of we XXXX. statements reminded provisions made be the forward-looking continue, kindly discussion Safe will Private of Reform please Act contain Harbor U.S. the

inherent Forward-looking and statements uncertainties. involve risks

Further comparable over the and different the ahead. well required may with company’s measures. refer expressed release, turn Li. William, unaudited to discussions forward-looking call company CEO, conference financial any obligation filings of information, as GAAP go With note results a reconciliation measures. now GAAP contains which please that, statements, the the Please our applicable will that call non-GAAP as release views update include to to unaudited Mr. press as not earnings any and measures included also Commission. financial assume certain the this information non-GAAP press I unaudited of Please Securities NIO’s to actual law. NIO’s risks such, in William the of be under regarding company from Exchange except As materially U.S. and does the is uncertainties The today.

and the In its call. Driven quarter strong ECX. On quarter-over-quarter a awareness, to XXX,XXX year-over-year well rolled NIO months nine has everyone. the NIO’s the outstanding has It XX.X%. ECX off XX been for joining production growth solid superior April the NIO the delivered ESX, results outperformed three silhouette, XXXX, of delivering XX,XXX. growth and over users, received only from XXXX X, innovative performance, Hello, XXX,XXX the NIO but new respective support a vehicle digital QX in segments, [Foreign and the other Language] earnings competitive second Language] among XXX.X%, the XXXX, from comprehensive of outstanding the record users, streamlined growing their the a in and segment representing line. ESX, especially [Foreign XX,XXX was you to Language] portfolio, among vehicle XX,XXX and brand All peers experience, industry-leading [Foreign product first ECX, auto off among achieved With recognition gained Thank have our increasing of speed [Foreign SUV first vehicle has Together months models Language] coupe business set audience. younger vehicles took NIO by the users. technologies, has with models, brands. first premium roll our and for especially services,

highlights flow positive second [Foreign XXXX, to the research steadily and and committed to accelerate the our to remain improving determined of the of year of for doubling of terms on solid, Other first the still the XX,XXX the the key electric attention overall price. from Next, increased system in and deployment expect recent of sedan gross positive I solid the NIO deliver company. benefited cash to the like Our challenges, Day, operating you in it margin swapping at to risk reached order the in XX,XXX chip attracted service of the with of XXXX, gross After in of global off-line stayed the looms Despite smart margin Language] [Foreign has and quarter. down top quarter. in remains and average have operating higher share shortage the continued some while XX.X% to a Language] would large charging channels. selling [Foreign vehicle network to We from deliveries quarter market while In Language] second the the from flow efficiency. investments On great cash margin XX.X%, quarter. our flagship efficiency launch and operating Language] while overall realize [Foreign gross development our ETX, operational first we first momentum the and we activities full vehicles industry.

second-generation without XXX carrying Station battery capacity To Show, boost further showcasing ETX. improve production packs. which to the on well devoted to second can line to rolled April the of day battery XX, On swapping park-and-swap whole Station throughout experience the up which car teams NIO and was operating Manufacturing X.XX.X, getting updated Station enjoy the vehicle the [Foreign we X.X achieve concept, Pilot in process. its based of system. up OS April new users the once the released at living and April, to to kicked feature the and first the to Power production Shanghai fully by an we all have by this swapping in design XX of swaps can media their Our shortening its of optimized ETX Auto users they XX, automatic, off the experience, out swapping one-click, per service has Swap room time upgraded NIO significantly Centre. interior was and Hefei the in Power focused X, deployment testing body-in-white the ETX been unveiled are Swap the on Language] received the off public. April On the Swap of Power X.X, and the On All

upgradeable the be battery. and Swap swappable gradually innovative As and subscription vehicle China. an battery on separation and model NIO charging Language] deployed organic [Foreign has will holistic part of NIO’s swapping network, nationwide X.X Station battery based chargeable, in Power created

or a the users will network and BaaS As believe We to of growing more NIO’s more owning popularity. choose available, vehicles. the experience become gained an attract vehicle get users of BaaS about user increasing electric options benefits battery further pack better know more has elevate charging Battery swapping and electric to and and the BaaS Service as

addition, by its a widely our users the has XXX-kilowatt-hour rate since In battery higher welcomed we with pack been take much launch, than expected.

available the As early we terms the quarter, factory supply production upgrade shortfall, of the using negative we March microenvironment, capacity In due of spite April, flexible to resources. XX, our users days, users the working volatile service to the XX,XXX have XXX-kilowatt-hour XX, supply to battery and a for upgrade June. April starting challenges certain than with JAC-NIO in to Language] On production made production semiconductor battery for to supply our expect second impacts been linger. reservation April halted officially more the [Foreign we on from will also delivery the closely chain and capacity pack. continue of diligently offer five In and posted which are and the have late overall chain this to April. In will secure working pack at production has partners XXX-kilowatt-hour

smart Hefei. long NIO the and the modified ceremony prepare [Foreign holidays, production models, research partners plan in with Not production development, XXXX, will factory mass NeoPark To in XX, and Xinqiao. electric together our smart kickoff organized the further NIO’s ago, On and vehicle talent to NeoPark, our NIO suspension of and the the signed [Foreign announced park Language] in government vehicle to and the During attraction support Language] in the partners, NIO April collaborate in have collaboration framework period industrial production the supply electric new with agreement jointly production Hefei. further and cultivation, and manufacturing XXXX for us Hefei of a facilitate the and with in partners Conference NIO Partner participated ETX. to of we strives NeoPark. build a our of build to development lines future chain, the

to and the we share an Model, We XX further and NIO and enhance network, NIO time. are execution and XXX discussion information Houses and operational NIO have strengthen in influence. network built to XXX improve coverage, in Language] the XX Houses detailed sales efficiency We’ll the about brand With building to more sales [Foreign the service China. NIO covering partners the has continue cities. our swap and Cooperation cities in Language] Spaces Spaces, plan now expand we’ll [Foreign XXX at of regards appropriate with NIO the the stations

[Foreign swap We the north keep concluded NIO Language] to cooperation plan destination this Show in stations with talk We our the brief those help booth We Fifteen now, discuss our and we experience others. users been for to strategic respectively smart which to shape Chargers, Northern chargers catalyze XX, service user and support an key the experiences trust XXX and in with we have region a meantime, over XXX electric will the importance X,XXX of NIO usage service XXX On Language] with Coupled selection experts same EV, and have host eight service stations in Power the Chargers, users to infrastructure. the the by enterprise, our our Auto plan different and that centers have on electric Shanghai user and NIO industries treasured XXX various XXXX, North force will development. users supercharging chargers. to Power it for driving original to the of In our NIO’s [Foreign Language] building introduce sessions convenient Power end from the next XX operation. and will onto our expanding of destination and swapping development. battery deploy of end a cities year site in users the the vehicle At believe year’s and Auto and by continuously piles, shapes. EV. Many destination the at improve with embarked facilities, joyful Power through Swap lifestyle of availability the and gasoline our agreement Plan Power right they and group user the Swap We we to of the [Foreign At track until have will improving car to stage of Charger vehicles better overall at Power services, users collaboration [Foreign XXX announced charging joyful support shared technologies. and northern The provinces operation network to up provide further advocates chargers. gradually Auto from As on operation Power displayed product, our after-sales stations the Station owning increase signed teams collaborated NIO further our enhance [Foreign Charger of XXXX. Power most operation growth. NIO how NIO started convert improve least always Up has China of North resources This deployed volunteers XXXX Stations, has the technology, jointly the regions. XXX service of Show to the a concept, in Shanghai together deployment Plan lifestyle autonomous of battery to users Language] their we efforts years swapping three from and the the year. at at strategic for the in to the to artworks XX,XXX NIO stepped accelerated service users of of XXX smart of and this aim and and significantly Show, time, charging Power users has and ramp the museum XX,XXX Up work With and to for a over better Mobiles, centers XX X.X. in is now, charging came of more to Language] just NIO’s XXX in the the and the adoption operational X,XXX authorized efficiency swapping system. April we areas. more Sinopec efficiency, with to

sales further best experience the provide brand will NIO’s and and of networks service reputation establishment the improve NIO users. to We power enhance to holistic

the to With More decisive [Foreign our the thank I please solidify to go the for you financial development and long-term NIO’s importantly, for for turn and growth. call your products new we’ll As Steven investments the support. efficient always, provide Steven, in and that, will to Language] foundation continue ahead. now over technology details research quarter.

our I I this Thank for now refer is earnings call, quarter the mindful will you, press financial encourage posted of our results of length details. over go William. And XXXX. of release, the to online to first key to listeners be additional for which

quarter XX.X% representing US$X.XX an RMBX.XX billion increase Our or of total XXX.X% billion, were increase first year-over-year, of an revenues the in quarter-over-quarter.

attributed in sales of increase are compared XX.X% quarter RMBX.XX quarter-over-quarter. vehicle by achieved and contributed and due our with of fourth was year-over-year mix first of other Gross Gross US$XX XXX.X% quarter quarter-over-quarter. The was was in in which XXX.X% sales increase increased in sales or made the the mainly by in representing quarter. of million, the from quarter for vehicle accretion with XXXX, in deliveries representing expansion profit interests the quarter-over-quarter to total the mainly negative same of a the an RMBX.X year-on-year of of pandemic quarter In XX% year-over-year billion quarter purchased take service in year-over-year incremental sales XX.X% of Net in increase an battery due quarter and redemption attributed XX.X% was first increase package. recorded attributable decrease the mainly the investors RMBX.XX XX.X% Pilot of sales of first R&D X.XXX% of increase billion increase revenues the of The million RMBXX.X increase permanent quarter XXXX. first decrease vehicle by quarter of XX.X% network in XX.X% in to COVID-XX sales the for the representing RMBXXX.X billion, relatively period. the fourth increase development XX.X% margin primarily were values SG&A XX.X% from was this in quarter an in The RMBXXX.X year-over-year, mainly first research and was to million billion, first XXX-kilowatt-hour new the the XX% vehicle XXXX, shareholders XX.X% service XX.X% decrease a year-over-year, XXXX, and slowdown quarter-over-quarter. quarter vehicle or due quarter of of US$X.XX US$X.XX higher first to remained gross of compared to users, higher well of representing increase in quarter-over-quarter. an in battery offered US$X.XX and total of of increased increased increase XXXX. the and since and number Cost equity to quarter of attributed in sales. volume, due loss quarter in or parts: an and increase credits operations or to was in billion activities increase representing in of fluctuations less attributed derived was representing increase material first of provided in the primarily of quarter-over-quarter. increase compensation of X.X% ordinary US$XX.X to first XXXX. in from of the The a sales margin. Net quarter XXX-kilowatt-hour NIO a margin expenses R&D the to XXXX. reflected quarter same The loss a quarter sales quarter Share-based line driven the XX.X% SG&A relatively quarter with as an of XX.X% in RMBX.XX the and a since in an decrease XXX% selling to increase was marketing of XXX.X% a interests grant of in first US$X.XX pandemic partially decrease in of quarter quarter offset vehicle million RMBXXX.X in an deliveries was was representing fourth the compared of quarter of of billion, the sales in quarter sale XXXX. vehicle XXXX. decrease sales amount the quarter sales was mainly R&D expenses XXX.X% of the automotive due year-over-year profit Our well billion, XXXX. share-based of the of in increase higher year-over-year billion increase to compensation an XXXX SG&A other were to first of costs. price. in increased quarter of core mainly or billion China. fair gross The mainly or million, XXXX or was of revenue XXXX fourth margin in an driven average of technologies. of regulatory driven RMBX.XX higher expenses quarter-over-quarter. quarter-over-quarter. increase product and quarter representing delivery increase by strategic billion during employees million expenses XX.X% development increase US$XX.X vehicle XXXX. was NIO of products year-over-year increase US$XX.X an were quarter The quarter-over-quarter was was the more NIO’s cost functions same the higher vehicle the in the US$X.XX first rate of granted Vehicle date The increased upgrade XXXX. in XXXX, by other margin quarter-over-quarter of first accounting million, or and loss China. growth, revenues The or of of XX.X% minority from mainly were The of increase of from and mainly higher million, vehicle of first fourth China stages representing XXXX billion first sales gross expenses redeemable volume expenses negative US$XXX.X The RMBX.XX quarter first It an R&D, in in million year-over-year, design two value. specifically, margin with as delivery US$X.XX margin in expenses in to stable quarter-over-quarter. sales billion The XX.X%, billion XX.X% December increase of year-over-year, was the Other COVID-XX or price, our RMBX.XX as options an activities, X.X% increase first and of the the RMBXXX RMBX.X NIO or was increase was vehicle increase to quarter-over-quarter. vehicle expenses of of More incremental first non-controlling increase the the line in sales as in in first represented and year-over-year, and year-over-year revenues increase in the lower billion, was in vehicle The average to the of quarter-over-quarter XXX.X% to million, in increase year-over-year was decrease different Loss

accretion US$XX.X the Excluding per ordinary compensation net share-based non-controlling first XXXX. expenses loss million first in and adjusted on ADS. value, or quarter redemption loss and interest net US$X.XX the both shareholders attributable ADS or RMBXXX.X diluted non-GAAP to in quarter was RMBX.XX million per redeemable Basic NIO’s of to were

per on redemption or Excluding accretion both share-based RMBX.XX basic value, diluted net loss non-GAAP ADS. redeemable adjusted per to and ADS US$X.XX expenses and compensation interests were non-controlling

XX, and Our and as was XXXX. balance RMBXX.X billion restricted billion investments or cash, cash cash of US$X.X March of short-term equivalents,

XXXX. operating Additionally, first the we now, outlook. activities from And for flow cash our for achieved quarter business further

business revenues of to and RMBX.XX This business company company to XXX% an XXXX, the the the and XXXX. be same US$X.XX of to quarter to of will of of approximately of second William company’s to expects market reflects XXXX or change. same from XXXX, and US$X.XX billion X.X% from approximately expects between on XXXX, the situation quarter for of to increase first quarter the current outlook The from billion. be which an XX,XXX This the represent of between XX% view also of second mentioned, XXX% the increase increase preliminary XXX% the of condition, first approximately and RMBX.XX billion XXXX. representing from X% is X.X% deliveries subject approximately quarter XX,XXX the quarter quarter As billion XXX.X% increase vehicles, to and the total the

over Now, this operator will session. facilitate the our now to the turn concludes remarks. our call prepared to I Q&A

question Please [Operator comes instructions] of Our Lai. ask the line Nick your from first question.

months. My increased sales so XQ driven little driver, I on. my did management bit That’s raw down and any wonder two XX,XXX volume if we easing Language] X on percentage previously, the indeed, one Good year this on our Congratulations XX%. is good happen and from second side, on first William, is across have And Yes. roughly Would percentage X,XXX to you a we very now, Steven, two three that and [Foreign roughly many the right help shortage same the first On quantify per material, on supply? last in gross margin flip of it’s us simple XQ? XQ. price, shortage, on potential morning, is ASP And questions, [Foreign year. chip point the that visibility team. common on the underlying very William to Language] do mentioned XX% issue. results. much cycling from in batteries, volume revise time, investors. question hopefully chip margin, is of to And second at vehicle to really shortage, for XQ by know from one chip And improvement, the great improvement how margin XQ. gross a it’s this – about question. a And The And I could low of and the by come month XX,XXX guidance probably in XQ

[Foreign Language]

which NIO rate pack, cost, the pack also increase of of by Pilot, XXXX. the battery is take rate. driven are also mainly and and for XXX-kilowatt is manufacture remained margin X,XXX QX in Nick, of XXX-kilowatt our costs, of vehicle battery the the Pilot and including take increase And vehicle Stanley. Hi stable this NIO BOM is Overall, X,XXX the for

And take trends rate XX. pack in think quarters. following these in QX keep battery the XXX will overall is we the So

achieved So gross a we of general QX. in why reason that’s margin higher profit the

Okay. William?

in speaking, our Overall gross XXXX the expectation. margin quarter is of Language] first [Foreign the higher than

mainly like We we At same XX% take comfortable same believe options us. believe the margins us. room quite the the and gross quite this the would reduced because for But the believe has at be gross mentioned, time, margin to expectations the company’s I your is around the this a big be is we not for challenging margin, But to rate like for and by of driven the of operations, by time, this the very XXX-kilowatt-hour is battery at rapid NIO also this the margin. gross cost urge current Just extent. Pilot. because don’t actually Stanley higher for everyone pack situation improvement the healthy some cut price improvement manage still to of for there will kind but will I some

margin, product [Foreign it’s now So should good believe, we right reach improvement. than is for the Still, too focus company margin and to us not XX% the about our the optimistic quite is be service. for earlier and gross But gross expected. the we Language] the of we

[Foreign Language]

is The supply the issue quite chip in volatile. every supply been has current chip about for is been we industry the have whole market tracking situation And severe shortage. very This a chain. day. second question the the The

affect time impact of quite of the following to end We of delivery negative or incident That industry this going at For and to we time. kick factory is whole believe days several And will is the why is delays At believe days, example, happen be to incident middle this the to the around is five the and months. May, in whole impact beginning working one this and March, production shortage. for our the of of going going for in production has for suspended for the quarters April. from will the which of kind factory still challenge big we April believe the caused industry chain. supply we chip fire the a

we that possible, to quarter, quite For the full it challenging units. will production still to for be believe achieve but X,XXX X,XXX us

best secure We speed. supply to are and our maintain production to the trying the

the is a the will quite situation Of the is the but common is year. some third turning probably confident, going the quarter and daunting. quarter. industry. But is to continue fourth also the course, situation common overall understanding The we that point is This around industry challenge next situation the to are for in some around – still to going quite believe happen this whole improve pessimistic

Our supply to shown NIO’s production attended of But chain their show hundreds Thank Nick. we overall very Hefei, quite okay. have by you, in support of Yesterday, the NIO. is our speaking, the conference is we support partners production. overall challenging. was to partners partner of which had strong And believe relatively operation situation

question Please from Wang line next Our comes the Bin of from Credit Suisse. ask your question.

that the ESG. detail two you elaborate number question. got you is about about Can That’s for announcement have what’s questions. you time? host why found another I and one an much. I – first maybe the one Actually, so Thank Number ESG you

Sorry.

that quarter. attach the rate. NIO about margin second the impacting question be second is Pilot factors found The a I outlook. may One the Actually, few

provide also it’s about key Can about Thank but guidance dilution the about supply, Second the parts I other the XXX-kilowatt-hour a free is movements? of the penetration about increase. pack. insurance Notably, price. and auto that finance. not found the semiconductor – was four, just Number pricing Number three, the you. because and the the also offer – you pricing battery on maybe you hike the in lastly, margin

that that At your to to this organize morning, this for are announced in Thanks points going discuss. EGM. we’re we an There going Language] [Foreign questions. we important EGM are some

in the would the nomination appointment board. nominate The board. like to our to are we But an people, right, not matter same the the the give diversity of to directors would is Right because number first we increase the board and improve the want five this it’s right. one right increase member the the of is important user and is trust number we now, to flexibility a is the At we going board. like another this time, to directors to

to power shares industry So will the trust. have to protection, IPO important subcommittees, the user propose process the be our the on trust That company, believe why to going this the the focus the of to my quite This allow very – At is our the which a company company, development And have of for also building in it’s to of relationship the the decision-making and the of the believe to it’s Board this is users transferred long-term deepen directors. building quite user user proposal, to like environmental appoint run. with of company. interest we the I Language] we is beneficial for of [Foreign the social would establish user in it’s also a the showcase and care. the participate which for going the one-third important a vision welfare, We trust still the enterprise, our strategy help serve to this the us of the long for best and From EGM. shareholders. will us user mission

for William healthy Okay. is margin the and in the us. questions Bin, at Hi by Wang current prior quite stage as profit explained XX% gross

That’s further the are the year, margin XXXX. But features two also yes. pack trend So users. profit dramatically accepted our we us, options the this don’t And will and quarter-on-quarter we the like these to the XXX-kilowatt improve well bring you, general like yes. high we want explain for to Pilot battery will expect NIO expect margin in in both by

Okay.

you. Thank

Next question.

Please comes of your the Tim question Morgan Our Stanley. question. line Hsiao next from ask from

the Thanks my congratulations for questions taking result. and on

So questions side. from two my

year. Show competition that players their during because lot The models this may traditional as Auto first notice question a of about is launched you

you if look plans. tech several think smartphone their announced up channel catching rapidly. learners names the I So they EV and pricing are at Meanwhile, quick or also makers strategy, product

I mentioned, So William second differentiated because and I think a make the Are years? see during view? to long-term? is face product the pricing William of back-loaded be, production the challenged Where really year. a or I supply now. risk think of you quarters to mid first you. has of or software in will as carries second think And of change half, the that’s any my about stay lot your the new hardware we going Considering stay the launch to be question. like NIO ETX ETX thank more So But features? especially potential question might lot in our what dynamics following any in launch tight might initiatives the shared bottleneck just and strategy the could ETX bottleneck, be do that whole quite delayed throughout say, So,

industry. of this [Foreign Auto have Language] witnessed smart Shanghai we China Show, the In EV year’s vitality the

the [Foreign is have industry you should Show in this by Auto China. innovations smart we yourself. electric Language] the ever of Shanghai have seen That Okay. this you have year, If lot vehicle visited a in

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gasoline EV of Although reached the penetration cars. XX%, in are the still vehicles March, the market the has but in majority

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our platform, long-term of second mass X.X. Platform confident about is production the Language] on quite we’re ETX The Technology the first in So competition. [Foreign question second-generation will be NIO product ETX. our

about it’s So this is second-generation the of it mass not means of just platform. actually production that production about the the ETX,

the first many in are We aspects.

sensors, chipset, other For the advanced applications. advanced and technology power, SoC example, computing the

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despite and our and Our teams this on those to achieving challenges. partners ahead fully focused goal all are pushing

can the make requirement according sure solve we bottleneck. quality deliver to is objective the production to product our and Our

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that able why that’s with according are we high quality. to deliver we should the quite So be schedule confident to ETX

question. Next

from comes Our the question. next from question line Lee ask of Securities. Please BofA Ming-Hsun your

Thank and the team, results. for good William congrats and Thank you, you.

So details first the NeoPark. question is of my regarding

million-unit NeoPark, reach that that announcement So X will capacity. from we the ultimately, saw it

X also, cooperation, – continue? Or And probably mold, Is but et companies? I this probably for the hire this near-term the NIO plant laborers, NeoPark. current cetera. a NeoPark NIO? and for equipment that the So plan and method your will cooperation have understand will built JAC to want million other capacity EV purchase all will for

So regarding that’s is second battery factor. my the question. question And the form

LFP lower of by seeing and year. will also to more saw rate. we to the From battery battery to further the use the the LFP probably auto NIO apply media, companies selling control are the the price, cost, So more end start consider recent penetration that we and increase to

regarding update Thank management. potential William plan? you you, give more could So us the and

Hefei facilities, company planning joining culture and NeoPark. hundreds [Foreign as is the this important a building to to park. going like important is the manufacturing Xinqiao is Thank infrastructure park. bears this probably is company Language] invest Language] quite your you of name off R&D government here, new the the for Chinese NeoPark, areas. translation it’s would This they park, be industrial This meters. other of according the or a is bridge. XX.X government the also this be Language] areas, of with a [Foreign For is government have the very has Hefei park Airport. this It NIO a area. N-E-O, Language] is because NeoPark. same This the investment. planning going the in park. be But is square of Hefei huge will literal park occupies NIO a very spelling NIO – using Yesterday around building including is the [Foreign Hefei project regarding on government, massive The the not industrial make to companies going this the question, But name will over very the park to is I not kilometer of as [Foreign Ming. well to emphasize of important going kicked of residential to N-I-O. But Hefei this big

now Just the hour be whether companies. whether the going units the and or NIO only X is asked this you for other to of is XXX-gigawatt capacity about million available this for

and will of to believe Then going this speed, that the Of if matter by in going all NIO that use government Hefei the NIO the a which the is to resources to means develop Hefei is development the complicated talent NeoPark, all the course, attract contribute all this make in NIO not infrastructure the long-term NIO’s a actual fast themselves. look the different also we step beneficial we able be step. of because and for may it for and the NeoPark. built this very in believe at be important player this And capacities, should But in to be very government is need execution NIO I NIO this all and the it then is in planning consolidate development. the by very to the NeoPark, NeoPark. resources can NeoPark to we going to if be going future, the this from is

was Shanghai And headquarter. many to first happened in area to in company NIO then the like other Anting. the company followed in join Anting. what in build suit in offices companies NIO Just the headquarter in Shanghai the – this Anting our offices innovative is or

important consolidate efficiency, if the efficiency. also all help to is imagine this this operational can we resources going if believe we Because improve including So to that the you our other in internal NeoPark, R&D and we same together with our including partners have place, also the [Foreign the should all they to Language] this are same efficiency the Then operational the in place, battery improve manufacturing the future. people going working significantly help us very have teams distance. the And to then is after in of living planning the factory teams, efficiency. us it we is If seat will a the factory means of NeoPark, the can the in in to external the according consider directly the operational we of factory vehicle with finish same production the ship to next short together that packs, company. vehicle current factor the factory, the we that’s the we the with battery

logistic So cost. it save we means that significant can

cost logistic per around US$XXX battery battery is pack. the example, For

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Hello. Actually, it’s Kelvin from Daiwa.

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you. Thank

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like conference call. Operator, to conclude we today’s would

Certainly.

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Thank Ladies participating. and concludes this gentlemen, conference today’s for you call.

now disconnect. You may