NIO Inc.

Hello, ladies and gentlemen. Thank you for standing by for NEO Incorporated's second quarter 2024 earnings conference call. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I'll now turn the call over to your host, Mr. Rui Chen, head of investor relations of the company. Please go ahead, Rui.

Thank you. Good morning and good evening, everyone. Welcome to NIO's second quarter 2024 earnings conference call. The company's financial and operating results were published in the press release earlier today and posted on the company's IR website. On today's call, we have Mr. William Lee, founder, chairman of the board, and chief executive officer, and Ms. Danny Chu, chief financial officer. Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the State Harper 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 view expressed today. Further information regarding risks and uncertainties is included in certain filings of the company with the U.S. Securities Exchange Commission, the Stock Exchange of Hong Kong Limited, and the Singapore Exchange Securities 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 GAAP financial information, as well as unaudited non-GAAP financial measures. Please refer to Niel's press release, which contains a reconsideration of the unaudited non-GAAP measures to compatible 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 Niel's 2024 Q2 earnings call. In the first half of this year, The NIO brand completes the 2024 model year phase list, further enhancing the competitiveness of its NT2 products. In the meantime, as NIO's technologies, products, services, and the user community were recognized by more people, its order intake and delivery continued to grow. NIO's delivery in Q2 reached a quarterly record of 57,373 units, up 143.9%. In China, new models had over 40% market share among all BEVs with a transaction price higher than 300,000 RMB. Since Q3, new product mix has been continuously optimized. In July and August, The delivery was 20,498 and 20,176, respectively. With that, near-monthly delivery had been more than 200,000 for four consecutive months. The total delivery in Q3 is expected to be between 61,000 and 63,000 units. In terms of NIO's financial performance, with continuous cost optimization of core components and the supply chain, the vehicle margin increased to 12.2%. As the user community became larger and more vibrant, the second quarter also witnessed rapid growth in revenues from after sales and the power services. The growth margin of other sales continued to improve. Now, I would like to share with you the recent highlights of our product, R&D and Operations. On July 27, NIO hosted NIO in 2024. At the event, we introduced the full domain operating system SkyOS and the smart system Banyan 3. Moreover, We also announced the successful tape-out of Cingy NS9031, our in-house device chip for smart driving. As for NAD, NIO continues to integrate its seasoned capabilities. In July, the industry's first AEB function based on end-to-end architecture was released, with the scenario coverage 6.7 times better than traditional AEBs. It makes driving safer. At a new year, we also introduced a new world model, NVM, the brand new architecture for smart driving. NAD Arc 2 will also be released. This is the most advanced end-to-end architecture based on NVM, NWM. New features and the expenses of NAD Arc 2 will be released in the second half of this year. On September 19th, our family-centric mass-market brand Anvo is going to celebrate launch of its fourth model, L60. And the use of delivery will start in late September. With a strong confidence in this all-round product, we will spend no effort in ramping up production and fulfilling the market demand. For sales and services, as of now, the new brand has 161 new houses and 408 new spaces, as well as 351 service centers and 63 delivery centers. The Anwu brand has already opened 105 stores in 55 cities. And we have over 200 stores by the end of the year, by the year end. about charging the swapping network. So far, NIO has over 2,561 power swap stations worldwide and has provided over 52 million swaps. Besides, NIO has installed over 23,000 power chargers and destination chargers. Quick and hassle-free recharging is critical for convincing ICE owners to drive EVs. On August 20, they hosted the NEO Power Up event, where we announced the plan of Power Up countries. In the first half of 2025, NEO's charging network will become available in every country in Chinese mainland. By the end of 2025, the swapping network will become available in more than 2,300 countries in China. To better support this initiative, we also announced the Power-Up Partner Plan and signed agreements with further partners. The continuous deployment of the charging and swapping network will help expand the market reach of NEO and Envo and further drive sales growth. As for market development, We are accelerating the international expansion on August 20. News UAE website won't lie. And in Q4, the products will be launched and delivered in UAE. While ensuring controllable investment and efficient operations, we will also actively evaluate opportunities worldwide, introducing products to more markets. In the NUV quality study released by J.D. Power in early June, NIO models ranked highest in the respective segments. NIO is also the only NUV company winning top ranking for six consecutive years. Ever since its establishment, NIO has been committed to making itself a global benchmark of quality and providing great user experience through lifecycle quality management. As NIO has been funded for almost 10 years with the multi-brand strategy and the international business rollout, as well as the external change, they upgraded the company's value system in July. In the quest of a blue sky coming, NIO aspires to shape a sustainable and bright future and visions itself as a youth enterprise where innovative technology meets experienced excellence. With new brands and the products being launched step by step, the fundamental tech capability and the long-term strategic planning that NIO has been developing will have a greater effect. NIO's cumulative R&D investment sophisticated community operations, and efficient infrastructure deployment will lead to better sales and the margin. We look forward to Niel's performance in the second half. Thank you for your support. With that, I will now turn the call over to Stanley for Q2's financial details. Over to you, Stanley.