Li Auto Inc.

Hello, ladies and gentlemen. Thank you for standing by for Lee Otto's fourth quarter and full year 2024 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, Ms. Janet Zhang, Investor Relations Director of Lee Otto. Please go ahead, Janet.

Thank you. Good evening and good morning, everyone. Welcome to Lee Otto's fourth quarter and full year 2024 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 Tia Li, to begin with prepare remarks. Our President, Mr. Donghui Ma, and our Senior Vice President, Mr. James Liang Jinzhou, will join for the Q&A discussion. Before I continue, please be reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. 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 failings. 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 a required and applicable law. Please also note that Li Auto's earnings price release and this conference call include discussions of unaudited U.S. GAAP financial information as well as unaudited non-GAAP financial matters. Please refer to Liado's disclosure documents on the IR section of our website, which contain a reconciliation of the unaudited non-GAAP matters to comparable U.S. GAAP matters. 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 conference. In 2024, China's new energy car market will continue to grow rapidly. According to the data from the mid-term year, China's new energy car penetration rate has broken 50% in multiple months. The previous year's new energy car penetration rate reached 45.9%, which is a 12% increase in the same ratio. Li Xiang Car, with its outstanding product power and organizational efficiency, as well as continuous breakthroughs in artificial intelligence, It continues to consolidate the Chinese brand sales champion position of more than 200,000 yuan. The previous year's market share reached 15.3%. In the fourth quarter of 2024, the ideal car delivery volume exceeded 15.8 million units, creating a new high in the quarter. In 2024, the total delivery volume of ideal cars in the previous year broke 500,000 units, becoming the first brand to reach 500,000 units per year. It is also the first Chinese luxury brand to reach this milestone. In addition, the total number of L6, L7, L8, and L9 vehicles in the ideal L series has exceeded 200,000. This highlights the high recognition of users for ideal products and our consistent efficiency in dealing with them. The achievements we have achieved are inseparable from the efforts of every employee in ideal vehicles, the support of cooperative partners, and the trust of users. Again, I would like to express my sincere gratitude We also look forward to continuing to work with everyone to cross the new milestone. As the scale of business grows, the multiple financial indicators of Dream Cars have also created a high historical record. In the fourth quarter of 2024, the total income of Dream Cars reached RMB 4.43 billion, and the total income of the whole year of 2024 reached RMB 1,445 billion. By the end of 2024, the company's in-hand cash reached RMB 1,128 billion, We will continue to grow in 2025. In the first quarter, we expect to reach 8.8 million to 9.3 million cars. There is no doubt that intelligent technology is the second half of the development of the automotive industry. For this reason, we continue to invest in R&D and acceleration innovation. The R&D and R&D investment of two to four years is more than 1.1 billion yuan. Effective R&D drives ideal cars. Intelligent driving has made further breakthroughs and growths. In terms of intelligent driving, ideal cars are the number one choice. Our industry's first DUN DUN DUN and VLM dual-system intelligent driving solution not only lead the trend of the industry, but also performance and other aspects to achieve the leading level in the industry. In January, we launched the new ADMAX V13. The high-speed NOA has also been upgraded to an end-to-end technical architecture, realizing the full-scale top cover of the city's high-speed end-to-end. We also launched the industry's first AI push-and-pull visualization function, so that users can clearly understand the way of intelligent driving. In February, we further realized the end-to-end Java 2.0 with 10 million clicks. large-model all-wheel drive, becoming China's first large-model car with 10 million kWh. From 1 million kWh to 10 million kWh in just seven months, ideal cars' intelligent driving speed continues to maintain the leading level in the industry. In terms of performance, the performance of the 10 million kWh ADMAX V13 also occupies the leading position in the industry. With the recent increase in car professional media, In terms of the ranking of the leading brands in China and abroad, ABMAX V13 has won the first place in multiple competitions. The advantage is very obvious from the level of average control. In addition, we have also launched the development of the next-generation technology structure VLA, which is the VG visual language action model. It is planned to be released at the same time as this year's first-in-summe pure-summe ideal i8. We look forward to bringing a new intelligent driving experience to users. In terms of charging network, with the launch of the pure electric SUV product in 2015, our construction is also in full swing. In 2024, we have newly increased the top line of 1,420 ideal supercharger stations, and the speed industry is leading. In addition, the ideal supercharger network has been built into the largest high-speed supercharger network so far. Even now, we already have more than 1,900 ideal superchargers and more than 10,000 charging stations in operation. The ideal car's supercharging network not only covers a wide range and fast charging speed, but also has a high stability of the device. Even in winter, after starting the automatic charging, the ideal mega can still achieve a charging efficiency of 500 kilometers in 12 minutes at the ideal supercharger station. In the spring and summer period, the recharging rate of charging devices is still at a higher level of 99.9% of the industry. Such a high-quality non-experience is exactly what pure electric users need. Looking forward to the future, we will continue to accelerate the deployment of super charging networks. The goal is to build 2,500 super charging stations when the first pure electric SUV ideal 8 is released, which will increase the number of super charging stations to 4,000 by the end of 2025. In terms of sales network, in 2024, our opening capacity and sales efficiency have significantly improved. By gradually transforming the north-side shopping mall into the central city of the capital city of Qicheng, the balance of central power has increased from 24% at the end of 2023 to 42% at the end of 2024. The total number of jobs in the country has increased from more than 2,600 to more than 3,700. From the point of view of the power school, the new Cangzhou-Gaoxin Central Power Plant, which opened in 2024, has only opened for four months, we have already reached 175 units in a month. This also fully demonstrates the efficiency of our new power. As of February 28, 2025, there are already 500 retail centers in the country, covering 150 cities. By 2025, we will continue to improve the efficiency of offline channels and continue to promote the expansion and construction of sales networks with rhythm and quality. We are also promoting the internationalization process according to the plan. In January of 2025, the German Research and Development Center of ideal vehicles opened in Munich. The German Research and Development Center is the first overseas research and development center for ideal vehicles. At the same time, it is also the first step for ideal vehicles to move towards a globalized research and development strategy. In addition, we have established a command and control service center in three regions in Kazakhstan, Dubai, and Uzbekistan. In 2025, we will increase overseas expansion and continue to build a market with high growth potential. We believe that there will be more and more ideal vehicles in different countries in the future. By the end of 2025, we will continue to focus on user value, maintain consistent product competitiveness, and do a good job of promoting pure electric SUV models while upgrading existing models. In addition, we will continue to embrace intelligent transformation, continue to strengthen research and development, technology innovation, and self-discovery capabilities to ensure sustainable long-term development and breakthrough in the era of intelligent transformation. Next, let's have CFO Li Tie introduce our financial statements.