XPeng Inc.

Hello, ladies and gentlemen. Thank you for standing by for the fourth quarter and fiscal year 2023 earnings conference call for Xpeng Inc. At this time, all participants are in listen-only mode. After management's remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Mr. Alex Shear, head of investor relations of the company. Please go ahead, Alex.

Thank you. Hello, everyone, and welcome to Expo's fourth quarter and fiscal year 2023 earnings conference call. Our financial and operating results were issued via Newswire services earlier today and available online. You can also view the earnings press release by visiting the IR section of our website at ir.xiaopeng.com. Participants on today's call from our management team will include co-founder, chairman, and CEO, Mr. He Xiaopeng, vice chairman and president, Dr. Brian Gu, Vice President of Corporate Finance Investments, Mr. Charles Zhang, Vice President of Finance Accounting, Mr. James Wu, and myself. Management will begin with prepared remarks and the call will conclude with a Q&A session. A webcast replay of this conference call will be available on the IR section of our website. Before we continue, please note 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 results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the relevant public filings of the company as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligations to update any forward-looking statements except as required under applicable law. Please also note that EXPON's earnings press release and this conference call includes the disclosure of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. EXPON's earnings press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures. I will now turn the call over to our co-founder, chairman, and CEO, Mr. He Xiaopeng. Please go ahead.

Hello, everyone. In 2023, with our strategy and organization adjustment and the launch of new products, Xiaopeng's delivery volume has increased by a quarter. In the fourth quarter of 2023, it broke 60,000 units and grew by 171%. In 2023, the total delivery volume exceeded 140,000 units. Our parallelization, research and development, technology reduction and business improvement, initial performance, in the fourth quarter of 2023, the company's interest rate improved to 6.2%, and the whole car interest rate From the perspective of cash flow, in the second half of last year, the positive free cash flow exceeded 600 million yuan, and it was the first time to achieve a full year of cash flow transfer. At the end of 2023, our cash flow exceeded 451 yuan. The abundant cash flow of capital and positive circulation makes us more confident to achieve high-quality and high-speed growth in the middle of a fierce competition. I believe this is just the beginning of a change. I hope that in 2024, we will see a greater improvement and efficiency in business capabilities.