XPeng Inc.

Hello, ladies and gentlemen. Thank you for standing by for the second quarter 2024 earnings conference call for XPEN Inc. At this time, all participants are in listen-only mode. After management's prepared 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 V, Head of Investor Relations and Capital Markets of the company. Please go ahead, Alex.

Thank you. Hello, everyone, and welcome to EXPON's second quarter 2024 earnings conference call. Our financial and operating results were issued by our 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 our co-founder, chairman, and CEO, Mr. He Xiaopeng, vice chairman and president, Dr. Brian Gu, Vice President of Corporate Finance and VW Projects, Mr. Charles Chang, Vice President of Finance and 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 certainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and certainties 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 obligation to update any forward-looking statements except as required under applicable law. Please also note that EXPON's earnings price release and this conference call include disclosure of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. EXPON's earnings price 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 the second quarter of 2024, the delivery volume of small and medium-sized vehicles was 30,207 units, with a return of 38% and a return of 30% at the same rate. With the technical downfall and continuous implementation of our comprehensive management, as well as the revenue from the technical transformation of cooperation with the public, our profit margin has been further increased to 14%. This is the most promising among the new forces in the car industry. The more important thing is that we have completed a new round of organizational ability upgrade and self-degradation. We have top talent in the field of marketing, styling, AI, and many other key fields joining us, and they are quickly starting to play an important role. We are constantly upgrading the short version and making the long version stronger, allowing Xiaopeng to become a multi-level competitor with comprehensive competitiveness. From the beginning of VOLA M03, Xiaopeng will enter a strong product cycle and a fast-growing cycle. From now until the end of the year 2026, we will have many competitive new products and reformed models. We will immediately start. Our plans for AI technology and product chain innovation, plus our presentation of technical balance and results, will be reflected in these products, and through Xiaohong will have a stronger marketing spirit in China and the global market. I believe this will bring profit for our sustainable and stable growth of resources. I am confident that Xiaohong will have a big growth in the third quarter and fourth quarter. And in the fourth quarter, it will create a growth in turnover.