A：In the first half of 2025, Lixiang Automotive's main operational highlights include: achieving a net profit of 0.3 billion yuan for the first time in half a year, becoming the second enterprise among China's new car forces to achieve half-year profitability; gross profit margin reaching a historic high since the establishment of the company, at 14.1%; total car deliveries reached 221,664 units, ranking first in China's new car brand sales list; delivery volume in July reached a new high of 50,129 units, maintaining this sales record for five consecutive months and becoming the only new Chinese car brand company to deliver over 50,000 units per month since 2025. In terms of finance, as of June 30, 2025, the income for the six months was 242.5 billion yuan, with a gross profit margin of 14.19%. The main reasons for the year-on-year increase were the scale effect brought about by the increase in sales, continuous optimization of management, optimization of product portfolio, and income generated from other businesses. In addition, as of June 30, 2025, the net profit attributable to equity holders was 1.3 billion yuan, an improvement from a negative 22.1 billion yuan in the same period of 2024; adjusted net profit was 3.3 billion yuan, compared to a negative 20.2 billion yuan in the same period of 2024. Net cash generated from operating activities was 28.6 billion yuan, compared to 2.7 billion yuan in the same period of 2024; free cash flow was 8.6 billion yuan, compared to -4.8 billion yuan in the same period of 2024.

A：In terms of sales, in the first half of 2025, Lixiang Motors delivered a total of 221,664 vehicles, an increase of 155.72057% compared to the same period in 2024. Among them, the delivery volume in July reached 50,129 vehicles, ranking first in the Chinese new energy vehicle brand sales for five consecutive months. The 410 model has been on the market for 13 months, with global deliveries surpassing 100,000 units, and the monthly delivery volume exceeding 14,000 units. The C10 model has been the top-selling mid-size SUV among new energy vehicle brands for three consecutive months, with the 311 model cumulative sales exceeding 250,000 units, and the 416 model occupying the top spot in the large and mid-size SUV sales chart for eight consecutive weeks. The B10 model delivered over 10,000 units in the month following its launch, while the B01 model was launched on July 24, 2025, with over 10,000 orders within 72 hours, showing potential for further improvement over the B10 model.

A：In terms of products, since 2020, Lixiang Motors has launched two new models and redesigned the existing three models on the C platform, enriching the product matrix to meet the diverse needs of users. All models are built on the new 3.5 architecture, providing cutting-edge technology experience. The second model was launched in April 2025, equipped with laser radar and Qualcomm 865 chip, and won 18 awards within one month of its launch, including the latest emblem award and the title of the national first electric car cabin energy efficient car seat comfort star. In addition, the new Lixiang C01 was launched on July 24, 2025, targeting young individuals and young families with leading 650km ultra-long range, luxury car level blowout stability control and other high-end configurations.

A：In terms of intelligent driving technology, Zeropao Motors released the third technical architecture on March 10, 2025, using the combination of Qualcomm 865 chip and Qualcomm 829 intelligent cockpit chip to achieve composite assisted driving framework. The research and development investment in intelligent driving continues to increase, with the manufacturing team size and computing resources invested increasing by over 100% compared to the same period in 2024. The urban commuting navigation assistance function based on end-to-end algorithm has been mass-produced for the first time and has been developed and first used on the B platform model. The plan is to achieve urban NOA function by the end of 2025. At the same time, the self-developed ARHUD has been used for the first time on the new 411 model, supporting the intelligent vehicle management in ARD53 mode. In the future, it will also cover the main models of the D platform and C platform.

A：The company has built an integrated operation system centered around end users by deploying a full digital marketing and service system. This system deeply integrates online and offline service processing to achieve seamless coverage of user experiences in all scenarios. Using intelligent tools like DMP, the company finely manages the full lifecycle of potential customers' exploration, engagement, conversion to transaction, and operation of transaction users, driving the business process with data and achieving significant results in operational efficiency. In the first half of 2025, core retail indicators have significantly improved, with a 2 percentage point increase in post-purchase mortality compared to the end of 2024, a five percentage point increase in store visit interception rate for the entire vehicle series, and a 27% year-on-year growth in store operational efficiency.

A：In the first half of 2020, the company achieved significant results through the implementation of the 3.2 express service strategy: First, the exclusive service group's 15-minute enjoy rate reached 99.5%, an increase of nine percentage points year-on-year; Second, the one-time repair rate of vehicle maintenance rose to 98.3%, an increase of 3.4 percentage points compared to the previous period; Third, the delivery rate of different styles of accessories reached 91.5%, an increase of 14.3 percentage points compared to the previous period.

A：On March 3, 2025, China Automobile and China Gas signed a strategic cooperation agreement. The two parties will jointly carry out the development of new energy vehicles and component cooperation. The first cooperative car model has successfully been launched, and follow-up work is actively progressing. In addition, the company has obtained approval to issue shares to specific targets and approved the decision to increase its registered capital at the shareholder meeting on June 25.

A：In 2020, the company exported a total of 20.375 million vehicles, ranking first among the new forces in the automotive industry. Zero Run Cars has a market share of over 1% in Germany, and orders for leading products in Europe have reached a historic high. The company's first batch of B10 models will be shipped to Europe in July 2022 and is scheduled to be launched in September. In terms of globalization, the company's overseas product and brand influence continues to strengthen. The T03 won first place in the 2025 European endurance race and was rated as the top new brand in a satisfaction survey of German car dealers. In terms of sales channels, the company has established over 600 outlets with both sales and after-sales service functions in approximately 30 international markets in Europe, the Middle East, Africa, and the Asia-Pacific region.

A：It is expected that the company's sales will see a significant increase in August and September, with overall sales in the third quarter expected to be between 170,000 and 180,000 units. As for the full-year sales guidance, due to strong performance in the first half of the year and adjustments in expectations for the third and fourth quarters, the full-year sales forecast has been revised to between 580,000 and 650,000 units. In terms of gross profit level, the overall gross profit margin will be maintained at a high level of 14%, with room for improvement in the second half of the year compared to the first half.

A：The proportion of overseas sales to the domestic market in the sales target set at the beginning of the year has not changed significantly, with the main growth coming from the domestic market.

A：In the first half of the year, the carbon trading opportunities were at a level of about 200 million to 300 million, and this portion of the income reflected the cooperation advantages between the leading companies and the Three Capital Group. In terms of non-vehicle sales revenue, carbon credits contributed a portion, although the specific percentage was not clearly stated. It was mentioned that in the first half of the year, non-vehicle sales revenue was mainly composed of increased sales volume in cooperation business and direct sales areas, as well as income generated from vehicle sales.

A：The company strongly supports national-level laws and regulations as well as industry governance measures, and firmly opposes any form of internal competition or behavior that exceeds the scope. From a competitive strategy perspective, the company, relying on its own technical capabilities and cost control abilities, is adjusting its pricing and competitive strategy in accordance with the company's development strategy to achieve a significant increase in sales gross margin and effectively safeguard vehicle gross margin levels.

A：Our company has not publicly provided fee rate guidance. With the rapid expansion of our sales business and the increase in sales revenue, the company's expense levels are quickly decreasing. It is expected that the overall sales business will continue to improve in the first half of the year, with sales revenue increasing and expenses increasing in absolute value, but the expense rate will further decrease. Specific guidance on overseas sales volumes will depend on the performance of overseas sales volumes in the first half of this year.

A：We expect to achieve localized production in Europe next year, especially for the B series models. Overseas sales are expected to grow rapidly, with hopes of doubling sales in Europe next year compared to this year. As for purchasing carbon credits, Europe has its own set of rules, with the current rule period for the credit pool being three years. Given Europe's carbon emission requirements, in the next 1-2 years, major European automotive companies, including Brandt Group, will have a need to purchase carbon credits.

A：In the second half of the year, the overall gross profit margin of the company will be maintained at the level of the first half of the year, and efforts will be made to achieve a slight increase, reaching the originally expected gross profit margin level of about 15%.

A：The B05 model will make its global debut at the Munich Motor Show in Germany next month, and is expected to be launched domestically in November this year. The D platform model, as the masterpiece of the tenth anniversary, is expected to be unveiled for the first time as early as October this year.

A：Both the employees and management of the company have great confidence in meeting the annual sales target of 1 million vehicles next year.

A：Yes, the plan is to produce the models of the B platform in Europe next year.

A：Currently there is still some time before next year, although there are internal plans, we are facing changes and adjustments in the second half of this year, so we cannot provide detailed sales plans for each vehicle model next year. However, based on the existing B series and C series models that have been launched this year, we hope to see an increase next year. Additionally, we also hope to launch and achieve sales for the new A platform and D platform models next year, in order to collectively achieve the sales target of 1 million vehicles.

A：The overall vehicle gross profit margin (excluding spare parts and other ancillary businesses) is around 12%.

A：The company is firmly committed to the path of independent research and development in all areas. In terms of intelligent driving technology, the company plans to achieve urban NOA functionality by the end of this year, and strive to reach the top level in the industry. The company is rapidly increasing investment in support, including resources, manpower, and technology, to achieve this goal.

A：For the overseas launch pace and long-term profitability prospects of the B-series models, more specific explanations will be provided at the appropriate time.

A：The B10 model of the B Series has been shipped out to sea in July and is expected to be launched in Europe at the September car show. The overall facilities of the BC series will also be gradually launched globally next year. In the near future, the company's focus overseas is on quickly opening up markets and increasing sales volume, rather than high profit margins. Once a market base is established, then we will focus on increasing profits.

A：In terms of domestic channels, the major markets in the country have been laid out, and next steps will involve deepening and expanding channels, including coverage in counties and cities that have not been reached. As the penetration rate of new energy expands to third to fifth tier cities, the incremental opportunities in these markets are emerging, and the quality of store telesales is quickly improving. The company emphasizes both the quantity and quality of channels, with a high focus on the profitability of distributors, and the majority of distributors have already achieved profitability.

A：Currently, the company's overseas production capacity is increasing rapidly, including layouts in Europe and Southeast Asia. Production capacity will be quickly increased according to sales demand. Good planning with partners like Salas Group ensures the smooth expansion of production capacity, giving the company a significant advantage compared to competitors.

A：Capital expenditures related to exports are led by international investments rather than by the company itself; furthermore, overseas bases are more based on transforming existing production lines, which can save a significant amount of money compared to building new ones. Both shareholders will leverage their respective strengths to jointly optimize overseas investments. Royalty fees have been reflected in the first and second quarters, and negotiations for new projects with other partners are still ongoing. For specific effects of royalty fees, please contact the finance department for more detailed data.

A：After nearly ten years of independent research and development, the company has made significant progress in the export of parts, and has obtained designated suppliers for traditional domestic manufacturers and overseas partners. The company's original goal was to achieve annual break-even, but due to achieving profitability in the first half of 2025 and expecting higher sales in the second half of the year, the goal has been adjusted to achieving profitability for the whole year. The estimated net profit level is expected to reach around 5 to 10 billion yuan.

A：We will decide whether to support RPMI in overseas markets based on actual circumstances, as well as the extent and form of support. Currently, we are not pursuing excessive profits in overseas markets, but rather focusing on rapidly increasing sales of branded products and gaining market share overseas.

A：The company has not adjusted its overseas sales guidance this year. Currently, the sales performance in the European market is good, and the leading brand has been widely recognized by users in Europe, especially in traditional automotive powerhouses like Germany. Considering that the South American models will only be available for sale starting in April, we are confident in achieving this year's overseas sales guidance.

A：Other income primarily includes revenue from carbon credits, income from partnerships, and increased revenue from trading companies due to increased sales.

A：The part not included in other income mainly consists of revenue from component sales and licensing fees.

A：Although the halving of the purchase tax next year will have a certain impact on sales and profits, we believe that the impact will be very small, mainly in the first quarter of January and February next year. Overall, the impact for the whole year can be negligible. This is because after the end of the national subsidy in 2022, the national penetration rate of new energy vehicles has not been significantly affected, and with the development of new energy in China, the penetration rate of new energy vehicles will continue to increase.

A：The D series products will debut in October of this year, and a series of products will be launched in the first quarter of next year. The D series will adhere to the core technology rights and high cost-effectiveness strategy, ensuring that the products are of extremely high value regardless of the price range of the vehicle models. Through solid technical research and development and improving core technology capabilities, we will create high cost-effective products, allowing users to experience high-end products in different price ranges.

A：In the first half of the year, RPMI achieved overall profitability, with sales and profitability in the European market making the main contributions. As for the plan to import new car models, the B10 electric model will be launched in Europe in September, and extended-range products will also be launched globally at the end of this year or early next year. In terms of component sales, it is expected that large-scale overseas sales results from the designated business with Serandite Group will gradually become apparent in the second half of next year and beyond. At the same time, localized production helps enhance the competitiveness of car models, but the company will still prioritize increasing sales and brand influence.

A：In the first half of this year, Leading International has achieved profitability, but the profit level is within the range expected by both shareholders. At this stage, the company places more emphasis on increasing sales and enhancing global brand influence, rather than maximizing profit. After the European factory starts production next year, it is expected to effectively improve Leading International's gross profit margin, but the gross profit improvement will mainly be used for marketing and expansion, in order to quickly increase sales and brand influence.