NIO Inc.

Hello, ladies and gentlemen. Thank you for standing by for NEO Incorporated's first quarter 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, Mr. Rui Chen, Head of Investor Relations of the company. Please go ahead, Rui.

Good morning and good evening, everyone. Welcome to NIO's first quarter 2024 earnings conference call. The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website. On today's call, we have Mr. William Lee, founder, chairman of the board, and the chief executive officer, Mr. Stephen Fong, chief financial officer, and Ms. Stanley Chu, senior vice president of finance. Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the US Private Security 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 filings of the company with the US Securities and Exchange Commission, the Stock Exchange of Hong Kong Limited, and the Singapore Exchange of Security Trading Limited. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that Neil's earnings press release and this conference call include discussions of unaudited non-GAAP financial information, as well as unaudited non-GAAP financial measures. Please refer to Neil's press release, which contains a reconsolidation of the unaudited non-GAAP measures to comparable GAAP measures. With that, I will now turn the call over to our CEO, Mr. William Li. William, please go ahead.

Hello, everyone. Thank you for joining NIO's 2024 Q1 earnings call. In Q1, NIO delivered 30,053 premium smart EVs. In Q2, thanks to the launch of all the model year products, unleashed of sales capabilities, together with a more flexible sales policy, NIO's deliveries started to pick up month by month. In April, NIO delivered 15,620 vehicles, and in May, 20,544 vehicles. Our market share in the premium BEV segment continued to grow, with year-over-year growth far above the segment average. The total deliveries in Q2 is expected to be between 54,000 and 56,000 units. up 129.6% to 138.1% year-over-year. In terms of NIO's financial performance, during model year product transition in Q1, the vehicle margin was 9.2%. In the meantime, with the improvements on the utilization of the charging and swapping facilities, and on the profitability of the after-sales services. Cost loss on the other sales was greatly reduced quarter by quarter. Now, I would like to share with you the recent highlights of our products and the operations. On April 25th, the 87th Executive Edition was launched at Beijing Auto Show. The delivery of this executive sedan has started in late April. With all round upgrades, the 2024 NIO 87 batch caters to the needs of the business community. It's well-placed to compete with the premium executive models, especially ICE models such as BMW 5 Series, Audi A6, and the Mercedes E-Class. In terms of NAD, on April 30, we started to push Urban NLP Plus to all NLP users, making it the largest release of its kind, accessible by more than 260,000 users on over 1.4 million kilometers of highway and urban streets. 726 cities in China. NOP Plus has been an industry leader in terms of its user base and coverage. During the Labor Day holiday, 48.1% of the total mileage was driven with NOP Plus, making user journeys safer and more relaxing. Since day one, NIO has developed a clear brand roadmap starting from the premium segment to build up skills and experience, and then introducing a mass market brand to reach and serve more users. With that, we will be able to make greater contributions to a more sustainable future. On May 15th, at the International Day of Family, we introduced Anvo, a new brand for the mainstream family market. Envoy is from Envoyage, and its Chinese name, Le Dao, translates into path to happiness. On a mission to make family life better, Envoy is committed to bringing products with the ultimate experience value and optimal ownership cost. The pre-order of its first product, L60, was started LCC is a smart electric midsize SUV. The official product launch and delivery will begin in September. The launch of Envo has shifted us into a higher scale, expanding our reach to a wider user base. As more people are aware of our technologies and products, we will add closer our vision of a blue sky coming. As for the sales and service networks, so far, NIO has 154 NIO houses and 388 NIO spaces, as well as 344 service centers and 64 delivery centers. About the charging and the swapping networks, so far, NIO has 2,472 power swap stations worldwide and has provided over 45 million swaps. Besides, NIO has also installed over 22,000 power chargers and destination chargers. In the meantime, more industry players have joined NIO's charging and swapping network. As of now, We have partnered with Chang'an, Geely, JAC, Cherry, Lotus, GAC, and FAW to jointly expand and standardize the battery swapping network. More investors have taken notice and recognized the value of NIO's charging and swapping business. On May 31st, NIO Power signed a strategic investment agreement of RMB 1.5 billion with the support of strategic investors, NIO will be able to further develop its core technologies and expand the network. On May 13th, NIO was named in the 2024 Fortune China ESG Impact Seed. We have continued to show those social responsibilities and lead by example in the ESG domain. to further contribute to sustainable development worldwide. Despite the failed competition, our continuous investment in technology, products, services, and the community starts to pay off and set us apart from others. Niel's premium brand precision, industry-leading technologies, and innovative chargeable, swappable, and upgradable power experience have been recognized by more people, and thus driven steady sales rebound. We will continue to speed up software integration, optimize products and experiences, improve system capabilities and operational efficiency to gain a larger market share. In the meantime, As the company unfolds its multi-brand strategy and enters a broader market, we expect to bring out more potential for growth. As always, thank you for your support. With that, I will now turn the call over to Stephen for Q1's financial details. Over to you, Stephen.