A：The context of the earnings conference call was to discuss the fourth quarter and full year 2025 financial results of the company. The CEO and CFO were present during the call, and the company's financial and operating results were detailed in a press release earlier that day and were also available on the company's investor relations website.

A：The company expects the total deliveries for the first quarter of 2026 to be between 80,000 and 83,000 vehicles, indicating a year-over-year increase of 90.1% to 97.2%.

A：In the fourth quarter of 2025, the company achieved a vehicle margin of 18.1%, with a non-GAAP operating profit of 12.5 billion and a GAAP operating profit of 8.1 billion. The company also实现了连续两个季度的正向自由现金流，并且在2025年全年实现了正向经营性现金流，这体现了公司的核心竞争力以及体系化能力和运营效率的持续提升.

A：The company's new product launches include the all-new ES8, which reached the milestone of 70,000 deliveries in just 160 days; the introduction of the new ESI, an executive flagship SUV; and a range of new offerings for the existing ES9, ES6, and ET5 models. Additionally, the company's brand strategies include the expansion of the Leoned brand with the launch of the L90 and the Leoned I90 and I60 set for product upgrades. The Firefly brand added the萤火虫 with its unique user attention and the B梯品牌 positioned to appeal to a broader user base with its offerings.

A：The company's innovations include the self-research of the global first vehicle-grade 5nm high-performance chip, the whole vehicle spatial operating system, and the Tianpi intelligent底盘, all of which have achieved mass production. These innovations have not only set a new standard for performance and experience but have also led to significant cost reductions, underpinning the company's long-term competitive position. Furthermore, the update to the future world model includes the application of complete closed-loop reinforcement learning, resulting in an 80% increase in smart driving usage time占比 in February compared to January, providing users with a leading intelligent辅助驾驶 experience.

A：The company has expanded its sales network to include 171 future centers and 395 future space Leoned stores, totaling 420 stores. In terms of service networks, there are 406 service centers and 75 delivery centers. For 2026, the company plans to further penetrate key markets and efficiently布局下沉 markets through a combination of three brands in 'sky' stores, which will serve as a sales and service source for all brands.

A：The company has established a substantial presence in the global energy network with 3,815 charging stations, including more than 28,000 ultra-fast chargers and destination chargers. Notably, the company reached a milestone of over 1 billion battery swaps on February 6th, showcasing the viability and popularity of the battery swapping model. The network not only serves as a solution to address the mismatch between vehicles and batteries but also contributes to the development of the new power system, providing the company with a sustainable competitive advantage.

A：The company is focusing on strengthening its presence in the Chinese market while simultaneously advancing globalization. The Yonyou series, for example, is already available in ten countries. In 2026, the company plans to continue using the Firefly brand as a leading先行 model to systematically expand into overseas markets.

A：The significance of the funding received by the company's chip subsidiary,神基公司, is that it will allow the company to continue developing and promoting high-end, competitive chips that support future growth in the自动驾驶 and robotics markets.

A：The projected growth and market strategy for the company in 2026 include the introduction of three new models to strengthen the product portfolio, increasing the company's share in the premium large vehicle segment, and further investing in charging and换电 infrastructure while enhancing the commercial operations of the network.

A：The company plans to strengthen cost control and overall business performance by continuing to focus on the development of smart electric vehicles (EZ) technology, ensuring product and technology leadership, and implementing business unit mechanisms along with organizational optimization to improve operational efficiency.

A：The company's financial performance and market position highlights for 2025 include total revenues reaching 34.7 billion RMB, a year-over-year increase of 75.9%, and a gross margin from other sales reaching a record high of 11.9%. The company also reported an operating profit of 800 million RMB, an improvement in vehicle and other sales margins, and positive operating cash flow and free cash flow. The balance sheet remained strong with total cash and cash equivalents, among other financial figures, amounting to 45.9 billion RMB.

A：The projected growth of the electric vehicle market, particularly the Battery Electric Vehicle (BEV) segment, is expected to see a significant increase due to the rising penetration rate and support from infrastructure and technological advancements. While the overall passenger vehicle market is anticipated to see a slight decline, the新能源 (new energy) vehicle market is expected to grow further, with BEV sales showing particularly strong growth. In the premium segment, the渗透率 of battery electric vehicles has increased significantly, with strong growth observed in the large SUV class.

A：The company's upcoming product releases and their timing include the launch of the ES9, a flagship行政SUV, and the L80, a new model, in the second quarter; and the EX8 platform-based large 5-seater SUV in the third quarter.

A：The company's vehicles, including the ET5, ET6, and EC6, are leading in their respective细分 markets with stable and robust demand. The L60 is in the top three in its细分市场, and the萤火虫firefly has a high market share in the高端小车市场, with strong demand recovery post-春节.

A：The company is confident in achieving a 40% to 50% year-over-year volume growth. The first two months of the year, typically an industry淡季, still showed a year-over-year growth in sales volume. The company has given a quarterly guidance of over 90% year-over-year growth. These positive indicators contribute to the confidence in reaching the full-year sales target.

A：The two key performance indicators for evaluating the user experience are the usage time占比 of the smart driving functions among total driving time for users and the number of accidents that are mitigated or avoided under the smart driving functionality.

A：The company is facing pressure from rising material costs, including semiconductors, memory, and lithium carbonate. While the impact is limited in the first quarter, the company is working with the supply chain to improve efficiency and mitigate the negative impact on profit margin. The strategy includes focusing on higher-margin products like the ES8 and managing the impact of cost inflation.

A：The company will continue to maintain a quarterly R&D investment between 20 to 25 billion RMB, with an expectation to maintain a similar level as in 2025. The company will utilize the cell business unit mechanism to enhance R&D efficiency, eliminate low-efficiency items, and improve the return on R&D activities.

A：We will dynamically adjust the pace of research and development and increase investment based on 26 years of actual business performance and ROI analysis to ensure the intensity of investment in key products and core technologies, thereby enhancing the company's long-term competitiveness.

A：We maintain a full-year growth of 40% to 50% for our full-year sales target for 2026. Although it will face pressure on the cost side, we can see the good performance of large models in gross profit margin. For example, the gross profit margin of ES8 in the fourth quarter exceeded 20%, close to 25%. As a result, we maintain our full-year target of achieving non-GAAP operating profit.

A：We have completed the first round of equity financing, and investors have highly recognized the company's technology research and development capabilities and commercialization prospects. The next development plan includes: in addition to the research and development of next-generation chips, it will also launch some terminal chip products for more customers, and pay attention to market opportunities such as robotaxi and intelligent driving. At the same time, we have seen many external customers, including some enterprise companies, showing strong interest in our chips, and some progress has been made in external business development.

A：As the executive flagship, ET9 is the most high-end product in our product series. At the same time, Horizon Special Edition was launched, which was warmly welcomed by users. Although ES9 inherits many advanced technologies of ET9, it also has its own technological innovation. The positioning of the two is significantly different-ET9 is the flagship car of administration, while ES9 is the flagship SUV of science and technology administration.

A：Changing electricity and charging are not contradictory, but complementary. In the future, we have built more than 28000 super-charging piles and destination charging piles, and are one of the automobile companies that actively lay out charging piles. Power change, charging and super-charging can meet the needs of different users in different scenarios. In particular, power exchange can systematically solve the problem of mismatch between vehicle and battery life. The current electronic warranty standard for electric vehicles is reduced to 70% health after eight years or 160000 kilometers. However, the service time of operating vehicles and test driving vehicles is different. If the battery is coupled with the vehicle, there will be major problems after eight years, nine years and ten years. Therefore, power exchange is a systematic solution to this problem.

A：The power swap system acts as a distributed energy storage system to manage and facilitate the consumption of renewable energy, enabling the Chinese government to incorporate all forms of green energy into the new power system. It helps with energy storage, consumption, and interaction with the power grid, which contributes to the larger initiative of handling the increase in green energy production.As of the information provided, there are over 3,800 power swap stations in China with a total energy storage volume potential of around six to seven gigabyte hours, which is substantial from an energy storage perspective.

A：The power swap system reduces secondary energy loss by only requiring the charging and discharging of batteries, which contributes to an efficiency improvement of around six percent, making it more efficient and economically viable compared to super charging.

A：The second chip product will also be a five nanometer or automotive-grade chip with high性价比, offering competitive performance and lower costs compared to the current 9031 add一代. It will be used for autonomous driving, smart driving, and various AI applications, but not for training chips. The vehicle models that will be equipped with this chip are yet to be disclosed, although there is strong interest from industry peers and clients.

A：The service business is anticipated to continue to improve and grow, supported by an increase in the user base and operational efficiency. Despite the planned increase in the number of换电站, the current profit margins of other business operations are expected to cover any operational losses, indicating a positive and controlled business development trend. The goal is to maintain profitability while striving for further improvement in the service and community business by 2026.

A：The detailed sales and profitability outlook across different brands and product portfolios is challenging to predict accurately due to the dynamic market conditions in 2026. However, the company expects a significant presence of five large SUV models in the overall sales volume. The sales volume and profitability will also be driven by the newly formed firefly brand, which is expected to return to a stable level post-January. While the company cannot provide specific details on the profitability outlook for each brand, they aim for long-term targets of achieving 20-25% for the new brand, 15% for the alma brand, and 10% for the firefly brand. The company has established dedicated teams for each vehicle model to find the best balance between sales volume, profit margin, and overall business results. These teams' efforts have shown positive results in the company's operational performance from the fourth quarter to the first quarter of the current year.