Li Auto Inc.

Hello, ladies and gentlemen. Thank you for standing by for Lee Auto's fourth quarter and full year 2023 earnings conference call. At this time, all participants are in listen-only mode. Today's call is being recorded. I will now turn the call over to your host, Kobi Wang, the head of capital markets of Lee Auto. Please go ahead, Kobi.

Thank you, operator. Good evening and good morning, everyone. Welcome to the Alto's first quarter and four-year 2023 earnings conference call. The company's financial and operating results were published in a press release earlier today and were posted on the company's IR website. On today's call, we will have our chairman and CEO, Mr. Xiang Li, and our CFO, Mr. Johnny Tian Li, begin with their remarks. Our President, Mr. Dong Hui Ma, and Senior VP, Mr. James Liang Jun Zhou, will join for the Q&A discussion. Before we continue, please be reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Security Dedication Reform Act of 1995. Forward-looking statements inform Inherent risk and uncertainties are 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 USSEC and the Hong Kong Stock Exchange. The company does not assume any obligation to update any forward-looking statements as required under applicable law. Please also note that the auto's earnings price release and this conference call include discussion of an audit gap financial information, as well as an audit gap financial measures. Please refer to the auto's disclosure documents on our IR website which contains a recommendation 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. Xiangli, please go ahead.

Hello, everyone. I'm Li Xiang. Welcome to today's phone call meeting. 2023 is the year of Li Xiang's speedy growth. We delivered 37.6 million new cars throughout the year. Our goal is to achieve the goal set by the beginning of 2023. We will become the first Chinese new power company to sell more than 300,000 new cars. In the fourth quarter, we delivered 13.2 million new cars, which is 184.6% of the total growth. In December, we also realized the important milestone of delivering 50,000 new cars a month. We created a Chinese luxury car brand. I want to take this opportunity to express my sincere gratitude to all family members, partners, and our team. Thank you for your trust, support, and hard work all the way. In terms of financial performance, the rapid growth of the business size, the steady execution of supply and supply and supply and supply and supply and supply and supply and supply and supply and supply and supply and supply and supply and supply and supply and supply and supply and supply and supply and supply For the first time in 2023, the ideal car will be the first year to turn back to profit and achieve healthy profit. The net profit of the whole year reached 118.1 billion RMB. By the end of 2023, we have reached 1036.7 billion RMB. In 2024, the growth of the business cycle will stabilize our healthy profit and loss, and continue to promote the deepening of product, platform, and system development. Long-term for the user to bring outstanding products and services. 2024 will be the year of the product of ideal cars. In March, we will bring home technology flagship mbv ideal mega. Publish and deliver. The ideal mega is based on high-pressure pure electricity structure development. Accomplish the ideal car in 5C charging. The latest technology results in the field of intelligent space and intelligent driving. In the same month. The 2024 ideal R7, ideal R8 and ideal R9 will open up a large-scale user exchange Welcome to pay attention to this Friday, which is March 1st Ideal Car 2024 Spring Announcement At that time, we will reveal more about the product details of the ideal MEGA and the 2024 R series In addition, this year we will also release a variety of new vehicles, including the ideal R6, to further expand our product range By the end of the year Our product line will include four high-voltage pure electricity, four high-pressure pure electricity, a total of eight models, and a product combination with extreme competitiveness to meet the diversified needs of family users in all areas. The release of the product is just the beginning of the growth of product power. Since the delivery of the ideal R series, we have completed more than 20 OTA upgrades, and have accumulated more than 700 functions and experiences. In December last year, we released the OTA 5.0 update to fully enhance the ideal L-series of car products. In terms of smart driving, with this upgrade, ADMAX 3.0 brings high-speed and city all-terrain smart driving NOA for all users, covering the city circuit of high-speed cities across the country and the city roads of more than 114 cities. In the second quarter of this year, we will realize the unmanned city NOA, which will be open to the whole country. It will further enhance the ability of city UAVs. The range of use is no longer limited to any city. And it will be upgraded through OTA to all ADMAX vehicles. So far, the smart driving UAV accumulation journey of ideal users has reached 5.6 billion kilometers. In the 10-day spring holiday period from February 8 to 17, more than 220,000 ideal users enjoy the smart driving UAV, which brings travel convenience. The UAV accumulation journey is more than 50 million kilometers. In terms of smart space, OT5.0 will actually connect to the multi-modal large-modal MIME GPT, which can be used in the whole car, to help ideal students. This will help ideal students to understand the ability of generation, knowledge memory, and reasoning. Since MIME GPT was launched, compared to the standard command-and-call way, users can send commands in a natural way, and get more text-to-text information and text-to-text services. In the 10-day holiday period of the Spring Festival, In terms of natural language dialogue, the proportion of all effective exchanges increased by 7.2% compared to before OTA 5.0. The whole number has doubled. In the next three years, we have also accelerated the expansion of the direct sales network. In the fourth quarter of 2023, we have increased the sales center by 106 stores at a speed of more than one store per day. We have established China's largest car direct sales network. sales and retail service system. As of January 31, 2024, Ideal Car has used 474 retail centers nationwide, covering 142 cities. In 2024, the sales and service network of Ideal Car will be further upgraded. By the end of the year, the target of the retail center will be increased to 800. At the same time, it will increase the layout of 1 and 2-line cities and deepen the coverage of 3 and 4-line cities. In terms of charging network, So far, ideal cars have opened more than 340 supercharging stations In the spring of the second half of the second half of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the first month of the to continue to provide high-quality and efficient energy-saving experiences for users. In 2024, we will speed up the supercharging network at the national highway and city layout speed. The target is to build more than 2,000 supercharging stations by the end of this year. In terms of production, the ideal car Beijing Green Zhidun Factory has been completed and produced by the end of 2023. For the delivery of the ideal MEGA in March and the production of the subsequent pure electric vehicles, In the first quarter of this year, we expect that the delivery volume of ideal cars will reach 100,000 to 100,003,000 in March and then break through 50,000. In 2024, we will continue to learn from excellent companies, continue to evolve, exceed expectations, create mobile homes, create happy homes.