NIO Inc.

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. Ray Chen, Head of Investor Relations of the company. Please go ahead, Ray.

Good morning and good evening, everyone. Welcome to NIO's third 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 CEO, Mr. Stanley Chu, CFO. Before we continue, please be kindly 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 filings of the company with the U.S. Securities and 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 and 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 gap financial information as well as unaudited non-gap financial measures. please refer to NIO's press release, which contains a reconciliation 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 Q3 earnings call. In Q3, the company achieved a new quarterly record with 61,855 deliveries. The new brand, Mantent, is positioned as the top-selling brand in China's BEV segment, priced above 300,000 yuan, with its market share reaching 48%. The Ongo brand also started to deliver its first model L60 on September 28th, marking its entry into the broader mainstream family market. In October 2024, the company delivered 20,976 vehicles. While the Anvo brand continues to run top production capacity, the company's total deliveries in Q4 are expected to be between 72,000 and 75,000 units. On the financial side, our Q3 results reflected continued improvement in component costs leading to a vehicle margin of 13.1%. Besides, the gross margin of other sales has improved steadily. Supported by sustained growth in the revenues and the gross margin, the company achieved a positive operating cash flow and the free cash flow in Q3. Now, I would like to share with you some updates on our products and operations. Niel's executive flagship, 89, is in the final testing and the preparation before mass production. And the delivery is expected to start in March next year. The 89 brings together Niel's leading innovation. Its delivery will reinforce Niel's premium brand image. With new models to be introduced in the coming year, The new brand will be more focused on improving profitability. The Anvo S60, aiming at the mainstream family market, has been a hit with family users thanks to its spacious cabin, ultra-low energy consumption, comprehensive safety features, and the hassle-free charging and swapping experience. Now, we are ramping up our supply chain capacity. Niel's monthly production capacity is expected to hit 10,000 units in December and 20,000 units by March. Besides, on December 21st, Niel's third brand, officially named Five Lives, will make a global debut on New Day 2024. Its fourth product will be delivered in the Its first product will be delivered in the first half of next year. Targeting the boutique compact car market, the Firefly brand will enrich the company's product lineup and make full use of existing sales networks. In terms of smart driving, by October, Niel's Smart Driving had over 610,000 users. and 78.4% had activated NEOS Navigate on pilot. Together, they had driven over 1.39 billion kilometers with NOP. The onboard smart driving, based on the company's experience and expertise built over time, was rolled out with the S60. making Envoy the first brand to deliver vision-based and navigation-guided smart driving on urban roads. The company's success footprint continues to grow. So far, NIO has 176 NIO houses and 412 NIO spaces worldwide, while Envoy has 191 stores across China. On the service end, the company has 300 and 98 service centers and 65 delivery centers. The Power of Counties plan is making strong headway, with more partners joining us, expanding the network. As of now, the company has 2,737 power source stations worldwide, including 887 on highways. having provided over 58 million swaps for NIR and ANVA users. In addition, over 24,000 power chargers and destination chargers are up and running. They continue to expand globally. On November 28, the first NIR house in the MENA region will open up, and our sales and delivery have already started in the UAE. Next year, with new products from Anwu and Firefly, the company will accelerate its international market entry. On September 29, NIO China signed a new investment agreement and secured $3.3 billion from the strategic investors. This capital boost reinforces our balance sheet and reflects the investor's high confidence in NIO's industry leadership. On October 26, the 2024 NIO Cup Formula Student Electric China came to an end. Supporting the event for 10 years, NIO has helped more than 60,000 talented students chase their dreams in rapidly evolving smart EV industry. November 25th marks NIO's 10th anniversary, a milestone that wouldn't have been possible without the trust and the support of our users and the investors. Going forward, as the new brand starts to enter new product cycle, and Onward and Firefly will deliver more new products, the company is embarking on a phase of robust growth. We are confident in what's to come. Thank you for support. With that, I will now turn the call over to Stanley for Q3's financial details. Over to you, Stanley.