Li Auto Inc.

Hello, ladies and gentlemen. Thank you for standing by for Lee Auto's second quarter 2026 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, operator. Good evening and good morning, everyone. Welcome to Lee Auto's second quarter 2026 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 Tie Li, 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 filings with the FDC 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 discomfort call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to Li Auto's disclosure document on the IR section of our website, which contains a reconciliation 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. Xiang Li. Please go ahead.

Hello, everyone. I'm Li Jiang. Welcome to today's E&G phone conference. In the face of a fierce market competition and the era of car generation, in the first half of this year, ideal cars are the number one Chinese brand in the new car market with a value of more than 200,000 yuan. As our dual-power strategy continues to advance, ideal cars are more mature and the pure car model is now balanced in the third structure. Since the second quarter, the ideal R series has achieved a comprehensive transformation. Our series of core technical achievements have been launched. From the self-propelled Mach M100 cable, Mach VLU model to 800V main drive, full line control chassis, to the third-generation self-propelled turbocharger and 5C supercharged battery, all aspects of software upgrade, re-defined technology, and new standards of experience. In terms of pure electricity, Li Xian i6 has been in demand for more than 200,000 yuan for six months in a row. All models have a low sales volume. With Li Xian i6, are the leading companies in the investment market. They will further strengthen our leadership in the S&P 300,000 to S&P 300,000 market. We are also setting up an upgrade of pure electric products. At the end of July, we plan to add a long-term long-term version in the post-pandemic market, and we will increase the number of e-cigarettes in the e-cigarettes box around the problem and demand of the feedback of the users. We will also upgrade the front row of the front row of the front row of the front row of the front row of the front row of the front row of the front row of the front row of the front row of The new generation of Dream Mega is about to be launched. We have further polished its flagship design and brought the new generation of interior design, space experience, smart platform, and driving quality. The new pure electric flagship SUV Dream i9 will also be launched in mid-June, and will further perfect the pure electric products of Dream vehicles. It is expected that the order ratio of the subsequent pure electric vehicles will continue to increase. In the second half of the year, We are confident that we will be able to enter all the brands in the Chinese car market in more than 200,000 yuan. With the help of core technology, we will continue to consolidate the more in-depth supply chain and gradually transform it into user value and commercial efficiency. At present, 5C supercharger has become a necessary factor for users to choose. The ideal self-built supercharger station is one of the important competitiveness. In terms of battery, we have already realized the full-battery self-battery, including telecom, BMS, and Pike. After the self-battery motor and electric control, I made the last version of the 3D field. Through the integrated design of the whole car system and the experience accumulated on the 5C supercharger technology, the ideal car self-battery can have a leading performance in terms of quality, safety, and life. At present, the ideal car's autonomous battery has been officially launched in the new LXR8, new LXR6, and LXR8. In the next few months, all of our models will be equipped with autonomous batteries. We firmly believe that, in the long term, batteries and batteries will be the most important technological deviations and add-ons in the giant smart industry. In May, we started to deliver the entire M100 chip system of Dream Car. Currently, the delivery of the M100 chip has exceeded 50,000 pieces and maintained a good performance. In addition to the chip, we are also constantly breaking through in the development stages such as model, controller, and surface system, and gradually turning it into a product experience. In July, the overall performance of Mahoe VLA increased by 20% through OTA 9.1. and Li Cheng. Compared to the previous generation of computing platforms, the number of users has increased by nearly three times. In September, MAFA VLA has already sent users to ZOOL and AURUN. In the future, we will use the data accumulation of ideal cars to increase the capacity of MAFA M100 chips, accelerate model training, and further play the advantage of self-propelled chips. In July, the OTG.1 version will let VLA see the speed of reaction and surpass the lower level. In October, the OTG.2 version VLV will use the 3D VIT sensor in the front to see further and more accurately. At the end of the year, the OK9.3 version of VLV's model parameters will be increased, which will significantly increase the understanding and interpretation ability of complex scenarios. Faster response, more accurate, and stronger interpretation are the three most important improvements of the Mahe M100 and Mahe VLV this year. Hi everyone, this is Visham. Thank you for joining our honoring conference call today.