Li Auto Inc.

Hello, ladies and gentlemen. Thank you for standing by for Lee Auto's second 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 Auto. Please go ahead, Janet.

Thank you, Darcy. Good evening and good morning, everyone. Welcome to Li Auto's second 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 Tianli, to begin with prepared remarks. Our President, Mr. Donghui Ma, and CTO, Mr. Yan Xie, 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 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 required under applicable law. Please also note that Li Auto's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to Li Auto's disclosure documents on the IR section of our website, which contain a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures. Our CFO 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 press conference. In the second quarter of 2025, we will deliver more than 110,000 new cars and achieve a revenue of RMB302 billion. According to the data from the mid-term, this year's ideal car sales in the Chinese youth car market of more than 200,000 yuan has reached 13.4% and is one of the top sellers of Chinese car brands. As of the end of July, we have sold more than 1.36 million cars. Thanks to the recognition of 1.36 million families, and thanks to our partners, shareholders, and all our employees who have grown with us. In April, we launched the new ideal, MIGA HOME. The current monthly sales volume is about 3,000 units, far above the expected. After the release of Mega in March last year, it has been 14 months. Since May this year, it has become the No. 1 sales volume of NTD 500,000 or more. Since June, it has become the No. 1 sales volume of left-hand cars worth 600,000 or more. On the one hand, this success reflects the company's ability to quickly identify problems and self-reliance. On the other hand, it also bravely proved that the value of the product will be verified by the market and time. In terms of the R-series, in the first half of the year, we completed the smart change-up of all-season retail products. Since the 6th month, due to the adjustment of the sales service system and the influence of market factors, the sales volume of the R-series has fluctuated. Despite this, in June and July, we are still in the top three in the new and advanced car market of more than 200,000 yuan. We will continue to play an influential role in the ability of cars to grow in adversity, to complete the adjustment of the sales service system as soon as possible, including the ability to optimize sales and delivery, establish a front-line marketing system, and promote sales competitiveness. At the same time, we will focus on value, focus on users, and more effectively address market changes. On July 29, we officially released the Dream i8, and on August 20, we started to deliver it. The Dream i8 is an ideal car that redefines the pure SUV, and it is the most innovative product of the ideal car. It takes into account the full capacity of the passenger car, the handling of the luxury car, the comfort and comfort of the MPV, and other advantages. It is also one of the core reasons why users choose ideal 8. It is a good proof that we have developed through the positive direction to create a unique value for users. As a brand new product that re-designs and recharges SUVs, after the release of ideal 8, we are focused on gradually winning the reputation of users. We are very happy to see that the market value of ideal 8 is up to 97%. As users deeply experience the product, they fully understand and feel the value of the product, and the market response is gradually warming up. Since August 2, Since the start of delivery on August 20, the first user's experience with the ideal 8 has given a high evaluation. We are confident that by the end of September, we will be able to deliver more than 8,000 pairs of ideal 8s. I believe that through time verification, the ideal 8 can become a pure standard product in the price range like the ideal mega. In addition, the preparation work of our five pure electric ACV Li Xiang i6 is progressing smoothly. It will be listed and opened in September. It will further expand our product base and meet the needs of more and more users. With the introduction of pure electric vehicles, we have established the largest energy-saving system in China. As the fastest-growing vehicle in China in the past two years, Li Xiang i6 is dedicated to the experience of driving a car that is not anxious by pure electric users. At present, our self-built supercharger, We are confident that by the end of the year, In terms of charging speed, our energy-saving system has also reached the top of the industry. At present, our charging capacity is more than 250,000 watts. The ratio of 4C and 5C is more than 61%. Subsequent charging stations will all use 4C and 5C charging capacity to further improve our energy-saving system's supercharging capacity. In addition, we continue to explore and build a car charging service ecosystem. In June, we launched the first transverse supercharger station in Changzhou, which is the same as the gas station. Not only does it support the separation of people and cars, but it can also achieve multi-car supercharger at the same time, making the charging experience more convenient and efficient. We are also testing automatic charging machines, hoping that we can redefine intelligent charging in the future. We insist on continuous investment in research and development to further consolidate the industry leading position in the field of intelligent cars. We believe that smartization will increasingly become the key and key factor in the decision-making of user purchases. We will also rebuild the car industry and bring revolutionary changes to travel. We expect more than 6 billion yuan to be invested in artificial intelligence this year for infrastructure and product technology development. On August 20, our self-proclaimed VLA driver prototype and ideal class intelligent body will be officially launched with the delivery of ideal M8. Among them, the VLA technical structure will be the first car delivery in the industry and will be deployed to all ABMAX models through OTAs in mid-June. The VLA driver model combines space, language intelligence, and behavior strategy. It has a more accurate space detection ability, thinking chain reasoning and decision-making ability, the ability to communicate through language like a human driver, and the ability to generate and select the best route. By adopting a technology structure that is more like human intelligence, the VLA driver model can be used in the prevention of driving, stability, comfort, three-point turn signal, continuous tasks, and terrain formation, etc., to bring a significant experience improvement to the user, and can learn more and more through continuous learning. At the same time, the ideal student who is based on the EPC of the self-developed machine model class has also been upgraded from a language assistant to an ideal student. The improvement of its ability greatly expanded the service ecosystem of the vehicle. For example, you can You can use your life assistant to complete the delivery of food to the delivery app. You can use an outdoor camera and a GPS app to complete the cleaning of the parking lot. The ability of ideal students to remember not only increases the diversification of tools, but also makes them more emotional and individualized. In the future, we will continue to upgrade artificial intelligence technology and use the results of research and development to continuously promote the evolution of product generation. We will strive to become the bridge between the physical world and the digital world, bringing artificial intelligence back to every user. In addition to artificial intelligence, our research and development also focuses on electrical district technology and 5C supercharger and other core components. Our natural drive area, including the core of the carbon fiber technology chip, greatly improved the overall car performance and the performance of the car. Another development focus is the 5C battery. We self-proclaimed the power and heat management system to better support ultra-fast charge and long-term battery life. From 0% to 80%, it can maintain a high efficiency of more than 3,000W. In addition, the battery life is also excellent. Under the ultra-charge mode, after 1,500 full charge and full release, the battery's health can still be maintained at more than 80%, leading the industry. We will continue to take advantage of the self-proclaimed advantages. Through self-proclaimed and self-made, or technology self-sufficiency, joint production, etc., to build product experience and further optimize production costs. In terms of sales service network, through recent organizational structure adjustment, we strive to build the core of the user operating ability by building a door store, improve the ability to convert middle-end sales, and better pass on brand and product value. At the same time, we will continue to optimize the network structure, expand and upgrade the network coverage in the head car city and mall, and gradually increase the number of doors in low-end cities to reach more users. In order to better support the launch of pure electric cars, our opening rhythm this year is relatively poor overall. So far, ideal cars have operated about 550 retail centers in more than 150 cities around the country. The number of doors increased by 50 at the end of last year. The total number of cars in the country has also increased from 3,700 last year to more than 4,400. Dream Cars has always insisted on doing the right thing in the development process. From Zengcheng's Dream 1 and L series to 5C's Dream Mega and Dream i8, no matter what challenges we face, we will never change our intention to create better technology and better products. This year, we will continue to create the best Zengcheng and Zengcheng products and deepen the brand construction. In the future, we will continue to use technology innovation as a driving force to continue to improve the transformation of the industry. We hope that through our long-term efforts, we can provide a positive service and a happy company to our users. Next, let's welcome our CFO, Vichit, to introduce our financial performance in detail.