NIO Inc.

Hello, ladies and gentlemen. Thank you for standing by for NIO Incorporated's fourth quarter and full year 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. Ray Chen, Head of Investor Relations of the company. Please go ahead, Ray.

Good morning and good evening, everyone. Welcome to NIO's fourth quarter and full year 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 Chief Executive Officer, and Ms. Stanley Chu, Chief Financial Officer. 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 inherit risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding risk 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 New 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 news press release which contains a reconciliation of unaudited non-GAAP measures to comparable GAAP measures. With that, I will now turn the call over to our CEO, Mr. William Lee. William, please go ahead.

Hello, everyone. Thank you for joining NIO's 2024 Q4 and the four-year earnings call. In Q4, the company delivered a total of 72,689 smart EVs, setting a new quarterly record. In December, our monthly deliveries surpassed 30,000 for the first time. For 2024, the company's total deliveries reached 221,970, marking a 38.7% increase year-over-year. The new brand continued to lead the premium segment, delivering 201,209 vehicles, securing a 40% market share in China's BEV segment, priced above 300,000 rand. The Anvor brand delivered 20,761 vehicles in the mainstream family market. The market share of the Anvor S60 have been steadily increasing since its launch, ranking among the top three in China's SUV market price between $200,000 and $300,000. In January and February, Due to seasonality and the Chinese New Year holiday, the company delivered 27,055 vehicles. We expect the total deliveries in Q1 to reach 41,000 to 43,000 units, reflecting a year-over-year growth of 36% to 43%. On the financial side, Our efforts in supply chain optimization and cost control have delivered strong results. Niel's vehicle margin improved to 14.9% in Q4, while Anvo achieved a positive vehicle margin in the early stage of production run-up. As a result, the company's overall vehicle margin reached 13.1% in Q4. At the same time, the profitability of our after-sales services continued to improve, along with growth in technology service revenue, leading to a positive growth margin in other sales in Q4. Now, I'd like to share some updates on our products and operations. Starting this year, our three smart EV brands have entered a new product cycle. For the premium brand NEO, at a new day on December 21st. They launched NIO 89, a flagship smart executive sedan. As the result of NIO's 10-year tech innovation, 89 set a new benchmark for premium smart executive EVs. With industry-leading technology and a distinctive experience, it has been well-received by users in the segment. The first edition in a limited offering of 999 units, sold out within hours. And the signature version continues to see strong demand. 89 delivery will begin at the end of this month. Besides, Nios version products, ET5, ET5T, ES6, and EC6, will launch their 2025 models in Q2, featuring upgrades in design, cutting experience, and a smart driving chip Moreover, with another major product launching in the second half of this year, they enhanced the product lineup with further solidified NIO's leadership in the premium BEV market via driving its overall profitability. For the mainstream mass market brand Anvo, the first product, L60, gained strong recognition among family users for its safety, space, class-leading energy efficiency, and a convenient recharging experience. ANVA's second product, L90, is positioned as a flagship large family SUV. It will be introduced in Q2 and delivered in Q3. ANVA's third product will be launched in Q4, forming a well-rounded SUV lineup to cater to a broader range of mass market users. For the high-end small car brand Firefly, since its debut in December 2024, Firefly has received bold attention, particularly from young buyers and the family looking for a second car. The brand is set to launch and begin delivery in April, leveraging Neostar's network for rapid market expansion. With these three brands, the company is building a comprehensive product matrix spanning 150,000 runs to 800,000 runs. Catering device user groups, as we expand our SaaS and service networks, we are set to reach more users and drive sustainable growth. In terms of smart driving technology and experience, AI technology continues to drive us towards our vision of a relieving stress and reducing accidents. Prioritizing AI-based safety enhancements, NIO released the industry-best automatic emergency steering feature. It leads the market in speed runs, object detection, and use case coverage. To date, NIO's smart safety has prevented over 3.4 million potential accidents for users. And the release of AES has further improved driving safety. Meanwhile, we've made breakthroughs in switching to our next-generation architecture based on the new world model, NVM. We'll provide driving, parking, and safety assistance across all scenarios. The early board program will begin in early April. with mass release gradually rolled out. Globally, NIO has 183 NIO houses and 462 NIO spaces, while Anvo has 449 stores in China, ensuring a well-balanced sales coverage. On the service side, the company operates 388 service centers and six for delivery centers. We are putting more efforts in improving operational efficiency so as to better support our new product cycle and deliver on exceptional user experience. As of now, the company has deployed 3,245 post-workstations worldwide, including 970 stations on highway in China. having provided over 69 million swaps for near and onboard users. In addition, near has built over 25,000 power chargers and destination chargers. BetterSwap remains the preferred recharging solution for near users on long trips. During the Chinese New Year holiday, they set a new record with over 100,000 and 37,000 battery swaps in a single day, with top stations handing over 180 swaps. With unmatched speed and convenience, battery swaps is the optimal recharging solution for long distance and holiday travel. It's a strategic advantage where we reinforce our competitive edge of the BEV market. laying a strong foundation for the sales goals of our three brands during the upcoming product cycle. We were actively engaging with partners in more countries and regions to expand our global footprint. As we grow our global sales channels and start Firefly deliveries, the company is accelerating its global expansion. while delivering best-in-class EV solutions to users worldwide. The company remains committed to social responsibility and sustainability. In December, MCSI upgraded its ESG rating from A to AA. In general, Corporate Knights ranked NIO as the number one car company in its list of 2025 global 100 most sustainable companies. The competition landscape in the smart EV industry is evolving rapidly, making 2025 a critical year for the market in shipping. This year, with nine new models across three brands, The company is forming a comprehensive product line-up. While the tech-driven cost optimization will further enhance profitability with global expansion picking up speed, the company will be able to unlock new revenue opportunities. In the meantime, the company is enhancing operational capabilities and business awareness across teams, ensuring greater value creation and efficiency. With this action in place, we are confident in navigating fair competition and achieving our full-year operating targets. Thank you for your support. With that, I will now turn the call over to Stanley for Q4's financial details. Over to you, Stanley. Thank you, William.