Li Auto Inc.

Hello, ladies and gentlemen. Thank you for standing by for Lee Otto's first quarter 2025 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, Kelly. Good evening and good morning, everyone. Welcome to Li Auto's first quarter 2025 earnings conference call. The company's financial and operating results were published in a press release earlier today and are 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 Tie Li, to begin with prepared remarks. Our president, Mr. Donghui Ma, and our senior vice president, Mr. James Liang Jingzhou, and our CTO, Mr. Yan Xie, 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 Dedication Reform Act of 1995. Forward-looking statements may 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 companies' 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 price release and this conference call include discussions of unaudited GAAP financial information, as well as un-audited, non-GAAP financial measures. Please refer to Li Auto's disclosure documents on the IR section of our website, which contains a reconciliation of the un-audited, 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.

Hello, everyone. I'm Li Xiang. Welcome to today's phone call meeting. First, let's review the performance of Li Xiang's first record. In the first record of 2025, the total sales of the new car was 92,000 taels, which is 15.5% of the total growth. The sales volume and driving income reached RMB 259 billion. According to the data of the mid-term inspection, Li Xiang's performance was strong in the Chinese mid-term car market of more than 200,000 taels, which was twice as close to the big market. In addition, as of the end of April this year, The ideal car has won the Chinese car brand championship for 14 years in a row. Especially in April, the ideal car market share reached 14.1%. It has further occupied more than 200,000 new cars in sales and defense. By the end of April, the total delivery of ideal cars has exceeded 1.26 million. As a developer and leader of the upgraded model, the ideal car series continues to improve the value of users In the face of the challenge of the latter, it has always maintained its competitive advantage. Recently, we have released the smart changeable version of the Dream Mega and Dream 2 series. The changeable model with the ADMAX high-end support driving system has been upgraded from the Inreda Dual AuraX chip to the Su-2U chip. The changeable model with the ADPRO support driving system has been upgraded from the D-line GO5 chip to the GO6M chip. and standardize the ATL full-frame rear-view radar jointly developed by us and Hezai. The user brings a more intelligent and safe driving experience. In addition to the upgrade of the driver, we are still working on the control of the dashboard, the appearance of the TV, the smart seat, and so on. We have made further upgrades and improvements to the L-series change version. In addition, on the 23rd of April, we launched a list of the latest ideas we have for everyone in the Shanghai car exhibition. the ideal MEGA HOME special edition. MEGA HOME has the ideal flagship model. It is also the most close to the company's mission that we have built so far. It is a product that creates a mobile home and a new home. After the HOME version was launched, the overall ratio in the MEGA model exceeded 90%. It significantly improves the user's recognition of product power and innovation value. At present, the number of new orders is still high. In order to meet the daily needs of the users, we will continue to improve our production capacity. We expect to achieve the target of 2,500 to 3,000 orders in July. The ideal micro home, ultra, and ideal L series smart change versions have all been delivered this month. With the front-end delivery of the updated model, we expect that the delivery volume of the second-generation ideal car will reach 12.3 million to 12.8 million. The success of the ideal MIGRAN HOME has increased our confidence in the ideal pure metal SUV into the high-end pure metal market. Our pure metal SUV launch preparation work has progressed smoothly. Among them, the ideal i8 will be officially released in July this year, and the ideal i6 will be released in September this year. Currently, i8 test vehicles are registered nationwide and are in the final stages of optimization before mass production. The total test journey has exceeded 9.5 million kilometers. High-efficiency variable charging network is a key factor in the user experience of fully charged vehicles. With the fully charged vehicle market plan, we have established the largest city and high-speed supercharging network with the largest vehicle size. As of the end of the first quarter, the high-speed highway is more than 50,000 kilometers. At present, the ideal car has opened and operated 2350 ideal superchargers with more than 1280,000 superchargers. We are also in the whole country, including the G318 passing line. Twenty popular tourist attractions in the supercharging network are under construction. We will continue to speed up the supercharging layout. to ensure the completion of 2,500 ideal supercharging stations in June and to reach 4,000 agricultural targets by the end of the year. In the future, we will continue to expand the charging network advantage in our car, so that more users can charge without worries. In terms of supporting driving technology, we continue to quickly transform the retail market. We independently developed the new generation of supporting driving technology structure VLA Vita model, Unification, space, language, and behavior intelligence in a single model, so that the assistant driving system can sense, think, and adapt to the environment. The VLA-4G large model will bring the user a new product perspective and product experience. A vehicle with the VLA-4G large model is an intelligent body that can communicate with the user and understand the user's intentions, and can be heard, seen, and found. At the same time, our self-designed unified world model that rebuilds and generates clouds is able to construct a virtual environment that is close to the real world, and supports VLSG large model to achieve large-scale and comprehensive reinforcement learning in the virtual environment, and to learn from mistakes in real sense, and to continuously improve the efficiency and quality of the model. The VLSG large model will be released together with the ideal i8, and will then be launched by OTA to all ADMAX high-end support driving models. We believe that the VLA driver model will make the car become the bridge between the physical world and the digital world. In the future, we will continue to explore the deep integration of multi-mode interaction and driving decisions to provide users with a more natural driving experience. The ideal class is also growing steadily. Through the OTA delivery of the ideal class at the end of May, a new image was obtained. They also have the ability to remember and get to know each family member. The ideal student also has the ability to be an agent and become the life assistant of the user. The user can control the ideal student by voice, order, and check the express. In the future, we will also create a more personalized smart space to bring a different experience to the user. In April, we completed the release of the ideal golden OS technology YPS. The first key code has also been uploaded to the open source technology community. As the world's first open-source, self-sufficient, smart vehicle operation system, we hope to share the same vision with OS, assist our partners in the industry, and improve the industry together. In terms of the sales service network, we are preparing for the growth of expected sales this year and the launch of new vehicles. At the same time, we will continue to focus on expanding the network of headquartered car cities and shopping malls, and through the completion of the plan, we will further lower the cost and increase the cost-effectiveness of city coverage, As of April 30, 2025, Ideal Motors will operate 500 retail centers in 151 cities across the country. In 223 cities, it will operate 500 post-selective maintenance centers and spray centers. In the future, we will insist on using the customer as the center and innovation as the driving force to continue to achieve the leading product advantages in the industry and create happiness for more families. Next, let's welcome CFO Li Tie to introduce our financial statements in detail.