Li Auto (LI) 26 May 212021 Q1 Earnings call transcript

Hello, ladies and gentlemen. Thank you for standing by for Li Auto's First Quarter 2021 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, Janet Zhang, Director of Investor Relations of the company. Janet. ahead, go Please

press Good first good call. quarter operating the and On today's company's in with financial Kai Annie. and to The to our everyone. President, CTO, have call, Mr. CFO, prepared website. Li and the Shen; begin published Yanan Mr. were Auto's XXXX results Kevin earlier evening, our you, IR today morning, remarks. Johnny are on and Welcome we company's release Thank earnings our posted Mr. Tie Li; Wang, conference

Our founder Xiang Li, for join will discussion. and CEO, Mr. the Q&A

I today's Securities statements provisions forward-looking Before Reform be please safe the of continue, XXXX. reminded Litigation discussion will harbor the under that Act contain Private U.S. of made

involve statements Forward-looking inherent risks uncertainties. and

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

comfort first and our ONE exceeding year-over-year, call quarter Li guidance intelligence. review In than key and as first the our In and best-selling continues brand underpins of Li first as network newly growth. cars, the as and support premium X.XX everyone, we RMB SUVs second SUV highlights XXXX offers efficiency, premium Janet. awareness, superior offering were of revenue quarter. our the quarter, XXX.X% the and first in among XXXX domestic the our first rankings, quarter in servicing compelling China. you, SUV and segment billion, SUVs Hello, the delight and you top top will total first of by We energy product about including among Li bestseller customers XX,XXX experience the which the quarter, segment. direct thank the to only all the which safety, ONE XX PHEV, was released the for user up ranked also the ranked while in XXX.X% large China in delivered well In higher of sales enhance end our SUV ONEs, best-in-class brand the brought second all ONE, I Thank Li the remained our unwavering our the fourth in today. in new and new ONE XX.X% In energy ICE revenue joining April, BEV, of the EREV Li the

as robust in to stayed ongoing amidst margin at investment profitability efforts gross the On XX.X%, to network. well direct our our enhance R&D servicing and side, our sales expand as

side, XXX.X% deliberate and Despite the disciplined XX.X% expenses on flow increase with year-over-year strategy. by operating expanding quarter-over-quarter. management expense a Our increased the continued cash we

flow cash RMB positive XXX.X remained free Our at million.

sales We convertible prepared leading view accelerating sales our new USD strengthening anticipating as R&D pipeline for through technologies, of and we the direct add April, offering servicing in our our vehicles. million successful notes improve launches further and our XXX allows new our future net in our We functions over to demand features senior We in and product investment increased an integral system by gear for committed for and capital direct our users to us network proactively our that growth for serving component network. servicing base users future in also increase and model our closed-loop expansion remain up iteratively of raised proceeds for demand.

April stores, covering and servicing Auto-authorized operating we retail XX shops of and in cities. centers had XXXX, cities XX, XX XXX XXX As paint body Li and the

We track are stores. target to on year-end retail our reach of XXX

our EREV state-of-the-art started We have especially platform reconfiguring in the next-generation based to also full-size the pipeline, be our on for factory new SUV premium launched model XXXX.

value and bestowed us. trust tremendous automotive support deeply user-driven enterprise, As and on our a the users technology we

Li ONE XX vehicle, exhibition brings experience During their of Industry came brand everyday our for Li to acknowledgment ONE and as value Exhibition ambassadors, volunteer the International to Automotive sharing families' it a their passion of to life. owners team their the large April, in their with

to recognized a being of Auto ONE and It are months, by mission also our is XX One them, an brand, not for users. a Li integral said, owner vision see of only and "Li our grateful a is but partner. spiritual lives We our now." so echoed car part

of cumulative XXXX, from reach have ONE milestone months the in the fastest new creating XX, record deliveries energy Li As ONE this XX,XXX only delivery We first units. April XX to vehicle December companies. took among our Li all exceeded of

a than at kilometers ADAS XX%. over Our our XX active have driven XXX solution of kilometers, users assisted over million million daily rate more with by

were million In terms accidents. XX,XXX triggered, over early warnings serious of than more potential preventing XXX safety,

the for our average, been minutes usage It interactive voice-based ONEs system interactive are and infotainment a fourth its car system featuring extend vehicle. powertrain is for Li free a cockpit by mobility. and and parked. users, space another experience of While smart a users users our each connections. day passenger, users is enable safe while pioneered itself ADAS highlight the praised allows than more every more On travel our private Li in-car that XX comprehensive the offering intelligent and screen the standard the the ONE has spend that of contribution We widely in solution

is New during of the holiday released times dream XX,XXX creating Year family. of more of effectively replenishment. function, success which capability, China models. New a times happiness foundation of during that ONE more Our catering to terms ONE karaoke to proven XX,XXX challenge development bring Day holiday, families solid entire homes the than BEVs in was long-standing affirming the our in Chinese extraordinary the which May Year have Chinese success our of of addressed extension for karaoke provided and in-car and the product-defining Li The than a before the energy our needs on-demand future the current first demonstrates Li laid for holiday,

charging With platform introduce our platform to performance. next-generation with higher next-generation models will to will to a EREVs. XXXX plan platforms, energy EREV We new and In better efficiency our in for and technology, are support vehicles planned performance aim of we deployed our which we BEV proprietary both autonomous develop We longer-range, high-power and best-in-class EREV driving with our of XXXX. new developing be parallel, next-generation continue extended-range technologies.

HPC We launch platform Starting research Whale developing technologies, other BEV at new are and BEVs. vehicle HPC battery, least technologies. and ultrafast we including these Shark, each year. models next-generation rate also Leveraging technologies, charging in investing future our the plan from to platforms two XXXX, high-voltage for of two are high and the development electric we

our we been to has in in technologies progress plan and track, Show. these unveil on development achievement Beijing the milestone Our Auto XXXX

software areas new intelligent new ONE Li release the Deliveries configuration flat X, right as ONE yesterday. price technologies new kilometers achieved with powertrain of X-in-X Li feature for group. rare of powertrain, SUVs, customer excited features Best-in-class standard It to new energy hardware standard Li X.XX Li and very our condition. kilometers XXX XXX,XXX. kilometers. XXXX style, range optimization an motor, for of in features RMB advanced retail a brand-new the believe is officially elevated very ONE in fuel commence The efficiency liters competitive XXX NEDC high the X-wheel and XXXX an is electric offering an among It efficiency operational ADAS range has in drive on as exterior outstanding based and drive design the June offering large-sized energy We interior comfort to electric Li a our integrated of a the ONE The such system. WLTC the at level. ONE user per will features only upgrades for on are and cockpit, its with comprehensive We target X,XXX its EREV, extended-range model solution, design technology premium product all-new XXXX. and

of safety should Level full-stack R&D optimized We In core team's self-developed are standard, by have All our range-extended successful ONE XXXX very team. standard configuration. the not in-house keeping a and ADAS that R&D Li the belief proud X our been in new the functionalities optional, to a existing with own ADAS technology. offers be redesigned improve company's effort

the occupant XXXX application world NOA and voice space first overall its road family the company Li ensure the that pleasant safe to a in based new increased making system, enhance also every X-seat safety implement extended-range ONE loved Li intelligent enables NOA spacious self-developed Xue, the Li spacious, ONE is Tong vehicle assistant, ONE for well electric for in-car domestic will been us features layout. large-sized help for lumbar its configuration comfort row and function. going is third and family. seats intelligence predecessor. millimeter, caliber XX-inch enhanced more travel a a comfort it suitcase its space, massage smart by excellence that by hold families Li while in front the a a all the for XX row the a Li in gain more room comfortable interior with as OEM believe Xiang happiness the Li new serves, layout more users launched configuration. smart interior electric can The new car. NOA for bringing the the everyone in system its also powerful second The It stroller. the more -- ONE higher on by full-stack to market The than share also with equipping is standard ONE and to trips, We providing We a has with trunk first a believe higher still to much standard leg We that XXXX spacious and processors. smarter ADAS capability model be or

delivery for in for Taking into consideration we advancement and expect I our numerous CTO and that, ONE. of the seen well Li turn order technology a it made strong of intelligence year, closer second over as September to With Kai, XX go have be quarter would as ahead. in joined semiconductor, just hours. XX,XXX. between past breakthrough of our new last shortage autonomous like production driving Since intake Kai view cockpit the technologies. as XX,XXX have global ongoing we to please the and our We the very to CTO, ramp Kai, in a

Thank you, Kevin. Hello, everyone.

our XXXX and other about details more updates. Li ONE provide ADAS me Let functions technical

Kevin functionalities. own perception ADAS the functionalities full-stack X plus Level mentioned, by were As algorithms with and self-developed in-house X team, ADAS our R&D Level

In mainstream camera, and safety. ramp and X-megapixel and for Robotics for also processors detection on AI with of X an proud model driving comes production and more megapixel, perception it data, acceleration in Li has lateral wider We [indiscernible] only is to team, short, camera very meters, our world front-view range equipped such the Compared more the but and the therefore dedicated Horizon with ONE and Journey dedication system enhanced two The lateral XK range reached their a safer. at The we processors processing of their time. XXX efficiency, The a first definition. NOA visual providing with in are information. clearly, have ability vehicle high effort the curve backup launched is driving. two short level widely, XXXX at a effective with automated also eight redundancy stronger the today, not an

better the Li wider radars range that made X higher improved and addition, Bosch fifth-generation a range, accuracy has have resolution, ONE of In recognition. millimeter-wave by XXXX detection

Li allowing and Supported have capable access complicated FAPA, more is a of traffic full-stack sensors and redundant XXXX in-house detection also feature can limited a supports parking feature and ramp, XXX-degree blind level. and by It It known meters the and with on automatic spots function. automated coverage lane vision-based field spectrum roads. traffic parking cones, We acceleration along software, objects. hardware, NOA assist other of certain as fully lights, overall any ONE XXX-degree for range XXX recognize change rich in off view, automatic which without supports curbs adaptive road efficient on

are safer, XXXX be driving that Li and the ONE easier deeply held We feature. optional exemplifying more experience, comfortable confident delivers standard, not core our safety a value should

to available more cooperation China. in with high-definition in be Li OTA XXXX update, third will maps cover quarter NOA year in out will AutoNavi, this gradually roll roads and we the and starting ONE As made areas through users the

discussed XXXX in-car users with system. Li to ADAS above, intelligent including provide space, also a smarter addition a functions ONE In the will interaction more voice

Looking our ahead, we of development ability EREV and cutting-edge developing executing BEV, and continue further parallel will the technologies. strengthening

to Now I CFO, our review financial the Please over call go our this turn first Mr. will Li, performance Tie ahead. quarter. in to

of services XXXX in the with XXXX. comparing the XXX.X% RMB mainly higher in Cost increased USD and quarter-over-quarter. and XX.X% to XX.X XXXX, stalls, X.XX New Hello, XX.X first first decrease RMB billion of vehicle million Kai. first of of or Vehicle the million first quarter of in the to first an first the vehicle This our for the quarter sales. fourth first the in press charging or highlights the Total of X.XX the revenues to caused RMB of promotional million as sales in in RMB XXX.X% fourth offset with over vehicle XXXX some sales of XX.X% of the for X.XX USD in from in of USD deliveries the sales from in quarter costs production I as The the of the XXXX margin encourage results the expansion from partially -- total with the XXXX costs. the quarter-over-quarter in of XX lower the of million the be release, in XXXX. revenue increase Year in services price sales was now XXXX. cost XXXX. here mainly million, XXX.X% XXX.X of was and due in an volume. you, Northern continuous from other quarter representing the million refer posted sales the with to X.X% and primarily million XX.X% seasonal increase first online, go was outbreaks in USD attributable of the billion our mindful of sales of services XXX.X The details. quarter by by in related XXXX. to well and lower increase accessories XXX.X length decrease of or overhead representing increase from year-over-year unit was network. the quarters first the decrease the this of sales Chinese is On activities attributable increase RMB in of billion line first The XXXX, localized quarter due increased RMB and for Thank the quarter margin same other XXXX sales quarter in first to quarter vehicle material address the fourth of Revenues decreased margin quarter primarily derived additional call, attributable XXX.X in to XXXX manufacturing over the XXXX. quarter and from RMB in will increase revenue first I were earnings quarter financial vehicle accumulated and quarter quarter of vehicle quarter vehicle primarily was and February a an XX.X%, the which our basis, respectively, was XXX.X factors comparing everyone. increase average quarter were million, first included The XXXX or will China COVID-XX you and XXXX selling of to of XX.X%, over holidays launched representing To financial of of the material XXXX -- and XXXX, slightly of fourth of lower from

representing quarter XXX.X% XXXX. the X.XX XX.X%, mainly of billion or USD year-over-year X% quarter quarter-over-quarter. the and quarter first of XXXX XX.X%in and increase XXX.X% of in XX.X% expenses development gross was Operating in an first margin of XXXX of increase Research the in fourth margin. in were the quarter increase Our or the first in first fourth XX.X was quarter million, increase to RMB million were compared an RMB first quarter XXXX million, XXXX in an attributable XXXX of and representing of the an of of vehicle change USD the XXX.X XX.X% to expenses XXX.X quarter which and the XXXX, of

expenses, derived were incremental increase in in compensation IPO options increased to development and in from no research XXX.X our and share-based the primarily value expenses service first, million, performance quarter-over-quarter. share-based first attributable X.X% a expenses January non-GAAP XXXX. compensation with Excluding and The were XXXX over development while RMB to: with for fair expenses share was an representing of million XX.X an of XXXX higher USD condition quarter increase options stock and or of granted condition quarter of year-over-year, expenses fourth research increase share-based the recognized first related XXX.X% compensation

the R&D XXXX first expenses an XXX% in of first next third, XXX.X Second, XXXX. company's headcount. administrative in quarter in the RMB of and increased increase XX.X and the general quarter of USD increase of Selling, million, of were vehicle or million quarter and XX.X% the activities XXXX increase the representing models; fourth an for

an The increase the and of increased increased XXXX of representing of fourth administrative of rental quarter XX.X and of expenses. and Losses over RMB the XXXX. USD increase increase quarter increase in increase the activities, quarter Excluding by million, million in an of year-over-year share-based primarily was XXX.X of general marketing operations XXX.X% or and increased from representing first million headcount was in and selling, XXX.X% compensation compensation RMB XXXX company's the of non-GAAP an administrative USD the expenses the selling, first XXX.X share-based in XX.X were of XXXX first expansion expenses quarter expenses, or and million, and fourth general X.X% an promotional expenses and quarter-over-quarter. XX.X% with network sales driven

of was USD XXXX with our USD XX.X comparing RMB Excluding XXXX million, million XXX.X of non-GAAP loss share-based million Non-GAAP year-over-year or net in operations quarter XXXX, XXX.X% million of XXXX. first first quarter-over-quarter. net million million first from million or income X% in of quarter million or XX.X Net in the decrease RMB XX.X in with expenses, in net a USD compensation was XXX first and loss XXX.X fourth and and quarter net an XXXX, fourth RMB of loss loss representing increase of compared RMB XXX.X net quarter XXXX. XXX.X was quarter in quarter loss of XXX RMB RMB million income the the RMB XX of the the million the

sheet cash to balance flow. and Turning our

Our X.XX X.XX between XX,XXX the I over and XXX.X company increase Thank from RMB and or XX,XXX to XXX.X cash, operator as will you. first the XXX.X also XX and XX, RMB flow to USD free of the XXXX, quarter of quarter USD RMB representing XXXX. million quarter USD quarter Operating the the total RMB USD quarter cash Q&A to of deliveries equivalents, time XXXX. XXX.X% to of billion second X.XX flow or increase XXXX. for quarter in and be with to million between from or in And between call of expects RMB XXX.X was be first turn vehicles, our second XXX.X% investments business deposits now or XXXX million The billion cash billion representing and company of million million XXXX. million now cash outlook an second of the XXX.X% totaled XXX% the revenues cash session. the RMB second restricted short-term billion an XX.XX of expects the March XXX.X was

the from Our Morgan Instructions] of Stanley. comes Hsiao Tim [Operator line of first question

questions. got I've Management so X Team,

compare key Without new The the a second capacity is battery be to the output your question inflation suffer that the moment? the Li new more and the greater the first you raw for that Li could a example, margin we RMB question, hike gross is, in like previous the XX,XXX to of quarter or new shortage from how update times enough case, please at effective ONE components? My to offset more With price models component level? of feature second gross And for margin? version? and or bottleneck, chip advance expect in from upgrade back a the further when ONE cost material the do any than Li normal a could increase ONE other the impact

Tim. Kevin. [Foreign This is you, question. first Language] I the Thank answer will

Li industry semiconductor. know, course, we ready, Changzhou the two our shifts the Of from already terms as can capacity, of we per whole cannot new factory, issue shortage are all the we XXX ramp is achieve with also now, the the of the are -- in timing Right day. of than -- and our the do But suffering of the due more chips, ONE the high. course, -- some to volume that of of we

more And starting expect, will I XX,XXX. answer We our production than monthly expect the we be September, from will margin. gross Johnny to ask

for with -- in with promotion So it's know, with long for the savings the will rear sales some you as the ONE, level Li second like net Tim, some for and same a also ONE of from the with some and net-net. current ONE of -- a the gross May price parts quarter, current the new current Li X the new mix. hardware, think will Li traditional I RMB on It's may also NOA it be April, at -- model. XX,XXX additional run, it parts margin, And some be [indiscernible] the month the remain

Sachs. Thank you, of Fei from Fang our open, next Goldman The the go is question line line is please ahead. of

I have two the management, for questions. Thanks, opportunity,

April by number, end. your XXX so then reported then year about store and stores reported XX XXXX of by XX you you by guided and you the stores First stores end

execution Is year, add there stores XXX means to Second about you risk that? next before, something have way in is stores in of And at months XXX months. added to but the to in plan is seen that it? the stores pricing. four any months XX with not eight you so is that eight also what we've So first look regard the that is the right

manufacturers raised Thanks. which move competitors, have [Foreign different very into in further Language] from Now, or mean other you've in some cycles? facelift premium the even segment Li Auto the who over prices that is obviously time. Does to prices four plans lowered the of your that product

will Fang Okay, question. thank your Fei, answer I you,

of as now, XX bit we spring slower in opening of first today, So COVID-XX right outbreaks, was the pace areas the stores have of and and the festival a impact the some of new have because stores quarter, than our expectation.

been our However, progress very making we have good in site selection.

fact, we stores in another our XX In pipeline construction. actually now have right under

for the So the year, retail target store therefore, XXX whole remains unchanged.

the the are a value we just based price very its of competitive is and pricing customer. product up fair the Li RMBXX,XXX is Li bit we delivered half. on new very for to took with higher lot think And trap, We to ONE more catch ONE ONE. competitive the even little and than very, functions think is value methodology and its will second a strategy, We Li more we'll into we price the just behind the be the in new our feature added predecessor.

comment. Thanks for the

you. BofA Securities. Thank Ming line next is of Lee question the Hsun of The from

ahead. is line open, Your please go

management I evening, two questions. also team, have good Hi,

question which supplier of your your is first The new regarding is Horizon. processor,

Horizon, achieve with to you some this that a able data continue the give is [Indiscernible] be you foreign details and better Horizon term strategy give that my know use to will this we you or exposure brand, you Could you regarding Horizon first the question. collect. longer So to other us your will consider also to in should more

you to launched you us highlights Language] second regarding will of question is for new Could next kind function very the or your some two what XXXX give years? driving, detailed provide this in [Foreign of The driving [Indiscernible] later year. about detailed[Indiscernible] actually a be already XXXX, give currently information autonomous you autonomous

Lee. Thank Thank to you. Mr want you two take Kai, you, questions? do these

you. Yes, okay, thank

So basically we SoC five for selection. have criteria

So our in XXXX SoC supplier. X back from as Horizon Journey our we Robotics basically chose

the we for the from [Indiscernible]. functions, of enough course, want is second X-plus is target where criteria must and target. perspective, The example, one of level we Journey feature first that performance, and the the achieve define So is And the for X openness meet the the [Indiscernible] flexibility. to performance then And is the requirement.

previous so our own generation [eye] it our not flexible example, mobile used intelligent developments. is for for So we very

there. So from more those that we and [Indiscernible] our open they are perspective own use are [Indiscernible]

So criteria very we keep up about is and speed, of our support support. phase say, solid so from third also can supplier the iteration. need We high the the let's that development

in core support X from is and the Journey regarding perspective So from the so best headquarter interaction is their Horizon SoC provide the they is service so Robotics, also is fourth departments that can much The Beijing, convenient. criteria locally timing. between more

from year chips market, actually will available be So ONE. the chips the SOC so there new -- every the from timeline we our Li XXXX

better. is Journey X So

the fees is [Indiscernible] the price. criteria So our

capable the price offer So the same so X At price, time, can is performance. Journey the affordable.

eventually X. these come will overall, five basically Journey So [Indiscernible] criteria

our NoA away HD covering software. more And able even we that say, next execution platform features. for map we let's the one time and areas then execution perception, quarter we provide now basis power the they own will perception the the adaptation fourth that launch to more And that roads more roadmap planning, with some next support and our even and in just then of Orange previous generation Regarding description of already richer China. [Indiscernible] be will on because provide functions year the introduced, much our of the autonomy, right own will we mentioned right [Indiscernible] in already in-house need to

raise need can [Indiscernible] a hardware-wise general. to So we course, level up functional Thank you. that's more to the get X, we plan step-by-step but of software-wise, in

from is next ahead. Credit of go the Thank Suisse. The Wang question Please of you. line Bing

for you my taking Thank question.

just same actually elaborate this the I but first at [Indiscernible] raised in found been two for And ONE and goes explanation [Indiscernible] to the try price has XXXX naturally That's Is [Indiscernible] [Indiscernible] called Can is one version. in that, price this number one that? [Foreign X I what's the design RMBXX,XXX. the by product your price project? actually RMBXX,XXX as number Can [Indiscernible]? one. per dollar I The [Indiscernible] is an they to in-house involved the payments actually level have basically actually the company the Li R&D Language] company so about

Okay, the thank for question. specifically for not RMBXX,XXX ONE. first the is new you, take feature Li I any Bin, Wang will or of the early new Actually

just ADAS new function and As is customer. overall not the explained, this already Xiang solution strategy we any standard, standard I make Li Therefore, pricing our a stated safety that optional. to is our the Mr charge all without

Kai will to question, The I comment. Kai. second ask

Yes, of our [Indiscernible] [Indiscernible] so provider. regarding the tier is role X

and is and consultation [Indiscernible] product the [Indiscernible] also So with team design final production. then our together mainly about

So mentioned, about ADAS designs. team and as round have those hardware actually right software for now we already we people covering our XXX

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during can something our design of the the product. with react wrong that So lifecycle there we is if

complete So we and design, for are the hardware design simulation also responsible implementation.

very outsource view the [Indiscernible] hardware the [Indiscernible] that we So participate drive. level. mechanics. keep to including like those efficiency the design. resources a of ensure They from Because electronics we leveraged in point with of and will high

because So a the part [Indiscernible]. lower will you. better Thank to with compared Also validation efficiency. the efficiency coordination, on overall have purpose X touch we could the that's product they which in we then actually don't will production tier overall want the that do the and

thank you Okay, much. so

Thank you.

the Paul from line of go Next open, question please ahead. UBS. Line is of Gong is

Two Yes, questions. hi, question. for thanks taking my

to systems? switch format have three [Indiscernible] first The develop the you connected you function freely and one see are do further in use transition. do switch Journey system previous data to mobile either this year. going the use these and [Indiscernible] you next all now you from to of is it IQX How X the Can to is the and future or for data

[Indiscernible]. plan second your for The is regarding question BEV

Thank process the your BEV of rising do think you bit new Would You competition Show mentioned [Foreign Shanghai Will little the and Whale your of the in view after [Indiscernible] How a platform. the so Auto market? in with the view Language] many timeline, in the Shark models. you. this accelerate roadmap? change you seeing

maybe Okay, first take question. I the

So regarding platforms. different

the why design. the do So to like actually reason in-house that's would we

algorithm developments same So when we you the control, algorithms. are cores of the there [Indiscernible]. utilize have Basically

something developing different can kind of Also compatibility From and you you are common there can really of different area wrap Then of behind. of a containers you and on we're point a when software. on our that. really So idea That's base re-use. support lots make top of view basically. then hardware can

the also do see the The can cloud cloud power you part and training. part developments utilize So computing for age part. current we we mass have

platform X same So both platform for solution and [Indiscernible] Journey training. we the BEV have behind

of stuff So can already can bunch you see share. are you a there common away right

then any So we don't have problem.

more Of need platforms. for you more then effort let's course support adaptation between if say you

So we will we a lower we strict that of why That's criteria associated have you. is course smart reason very as Thank then selection action. for there the mentioned.

second take your Yes, Paul, is Kevin me question. this let

lot a Auto in see of Show. new all Shanghai course car models Of we launched

develop Yes, to very compete the However, we We platforms key solution charging that's as not so focused. track will competition. a Whale think we the ultrafast BEV our times we with Yes, capability. to niche the winning will alter we on to our is arena. we therefore that need competitive our in Shark many key to we future Therefore gain advantage the and will stay think plan. stay reiterated charging

outlook yes. want the is sure. still with the course to resources R&D in process But of Of more we now XXXX, course for accelerate right

you. Thank

As the over remarks. Janet our like call Zhang, back for we call Company end turn closing ahead. are reaching please go to Miss I'd conference of the the to

Thank again us today. with joining you one for

have Investor all questions Auto's you today. Thank further Team. And for good Li contact feel please to Relations that's free have and you a If one.