This meeting is a closed-door meeting of China International Capital Corporation Limited (CICC), and only invited guests are allowed to attend. Without the written permission of CICC and the speaker, no organization or individual is allowed to publish, forward, reprint, disseminate, copy, edit, or modify the meeting contents and relevant information in any form. CICC reserves the right to investigate the relevant legal liability. Good afternoon. I'm your host, Auto Analyst Deng Xue from CICC. Joining us, we have [Shanling] and [Jingwen Chen] from Auto Team. Welcome to the 2024 full-year earning call for Leapmotor. Today we have the CFO, Mr. Li Tengfei, Joint President Wu Qiang, and Secretary of the Board, Mr. Shen Ke. First of all, may I ask Mr. Shen to read out the disclaimer? Thank you. Good evening, dear investors. The content of this earning call may contain certain forward-looking statements, specifically including but not limited to statements regarding the company's future financial condition, strategies, objectives, indicators, and future market developments in which the company is or will be involved. These forward statements are based on the company's current and future business development strategies, as well as the company's assumptions about the future business environment, which will inevitably involve a number of known or unknown risks and a number of uncertainties. These factors, which the company cannot predict nor control, could cause the company's actual results and the company's industrial performance to differ from future results expressed or implied in the forward-looking statements. Therefore, we caution you not to place undue reliance on the forward-looking statements discussed on this call. These statements reflect only the opinions of the company's management as of this call, and the company undertakes no obligation to update or revise any statements made in this call in light of new information, future events, or otherwise. The forward-looking events discussed in the call may not occur due to various uncertainties and assumptions. The above disclaimer applies to all forward-looking statements referred to in this call. In addition, shareholders and potential investors are also reminded that nothing contained in this earnings call constitutes any state investment advice, nor does it constitute the basis or ground for any contract commitment or investment decision. Shareholders and potential investors are advised to exercise rational judgment and caution when trading the company's shares. Okay, back to the host. Thank you. Thank you. Now we're going to invite Mr. Li Tengfei to share with us the full-year results of 2024 of the company. Thank you. Good evening, dear investors. I'm Li Tengfei from Leapmotor. I'll be presenting you the earnings for the company 2024. First of all, operating highlights for the year. In Q4 last year, we have achieved the positive net profit with RMB 80 million net profit Q4. We have achieved the target of positive profit over a single quarter ahead of schedule. We are the second profit-making company in the EV startups. In Q4 2024, our GP margin was 13.3%, which is a historical high since the establishment of the company. In 2024, we delivered 293,724 vehicles compared with 2023, which is 144,155. It represents a growth of 103.8%, which is the fastest growing startup brands of EV. For sales, we are ranking top three in all the startup brands. In terms of financial performance, our total revenue was RMB 32.16 billion, which is up by 92% from 2023. The GP margin in 2024 was 8.4%. Compared with the same period of 2023, we improved by 7.9 percentage points. Compared with last year, it was only 0.5%. In the fourth quarter, our GP margin was 13.3%, which is the highest GP margin for the single quarter since the establishment in 2024. The attributable net loss was RMB 2.82 billion. Compared with RMB 4.22 billion loss in 2023, it has been reduced by RMB 1.4 billion. Excluding the share payment, the adjusted net loss was RMB 2.35 billion. Compared with the RMB 3.52 billion in 2023, it was reduced by RMB 1.17 billion. The operating net cash was RMB 8.47 billion. Compared with the RMB 1.08 billion in 2023, it increased by RMB 7 billion. It was much improved in 2024. The net free cash flow was RMB 6.32 billion. Compared with the negative RMB 320 million, it was increased by RMB 6.64 billion. In terms of sales, the total delivery was 293,724 vehicles, up by 103.8%. 40,000 delivered in the single quarter on a monthly basis in quarter four. As of the end of December 31st, we have culminated delivery of over 600,000. The C Series delivery in 2024 was 22,571. The C Series actually improved by 112.9% compared with 2023. In terms of product, we have launched the brand new models, the C10, delivered 75,469 vehicles in the fourth quarter, C10, and also the full-year C16 delivered 43,528. The monthly sales in the fourth quarter was over 8,000. C10, since the global debut, has been winning awards and safety certification, including the Industrial Design Award in America, French Design Award, and also the European and California Double Five- Star certification. It was granted the title of Zero Formaldehyde Vehicles. It is also one of the best vehicles in terms of fire safety. C10, in terms of industrial design, continues to build better experience. C16 is also excellent in design, intelligence, safety, reliability, and experiences, which is winning the Best Model for auto industry 2024 from the International Auto Quality Standardization Association, providing excellent experiences. We plan to complete the B Series launch in 2025, which is a compact SUV B10, midsize sedan B01, which is a sport hatchback B05. Those products are facing the largest market in China, which will be an important growth for the 500,000 sales target in 2025. Also, at a compact SUV, we have made a debut in Paris 2024 in the Paris Car Show on March 10. The pre-sale will officially start this year. In terms of R&D, we have launched the 3.0 architecture, which is the first full domain-in-one centralized electric architecture, the first 8295 chips, and also the first to have the network control domain, and also OTA upgrade, and also the first industry, the power technology in new energy, and also reaching general adoption rate of the whole car architecture to 88%, which is highest in the industry. We have successfully adopted the Clover centralized control technology, which led to the great success in series. In the fourth quarter, the monthly sales was over 30,000 C Series. In the respective market, it has been capturing top five position. On the 10th of March, which is today, we will be launching the Leapmotor 3.5 architecture, which is the first super centralized central free control architecture with the 8650 smart driving chip, LiDAR, and also supporting end-to-end integrated system and also sport features. In 2024, we have set up B2B, sorry, the end-to-end large language model technical roadmap, building our institute, as well as expanding a 500-people team, achieving the high-speed smart driving for the city, HPA, parking, memory parking, and AI. In terms of AI infrastructure, we continue to invest in resources to make sure we have the AI language model development and 2025 volume delivery. The brand new LEAP 3.5 architecture is putting us in the first tier in autonomous smart driving integration. In 2024, we continue to provide technical upgrades for the old and new users. On the LEAP 2.0 architecture, we have completed eight OTA upgrade, adding 50 features, including NAP, high-speed navigation, high-speed lane changing optimization, optimizing health, mobile charging, remote control. In LEAP 3.0 architecture, we have completed eight OTA upgrade, upgrading over 100 features, including NAP, national high-speed scenario, 12 high scenarios, HPA parking, AI language model. We have taken an important step to support the Ali Cloud, the Tongyi Qianwen large language model, and DeepSeek model connection, providing rich voice interaction. The user can choose different language models in terms of their voice control, which goes to show our deep understanding and respect for user experience. Every user can enjoy a tailor-made bespoke driving pleasure. In terms of sales management, we have a Leapmotor special new model of retail, which has been gradually taking form in 2024. Also, as of the end of last year, we have deployed 695 server stores, 727 covering 264 cities, which is 82 more cities covered compared with 2023. The company continues to adopt 1+ N model. As of 2024, we have 262 Leapmotor centers, 433 experience centers, which is 186 more Leapmotor stores compared with 2023. We have brought in 77 quality partner channels, and the partner channels' profitability was in excess of 80%. In retail, we are using full-chain digital marketing and service systems, and also DMP and other targeting tools based on the full- lifecycle philosophy of users, from identifying the interest prospect to media targeting to invitation, test drive, order, and also sales. We completely digitalized the entire chain to improve the operational efficiency. In terms of services, in 2024, we have seen massive improvement of service satisfaction. We have been building a high, after-sales service system covering 427 stores in the country. By providing dedicated butler, we can provide one-on-one services to every user. We can achieve the remote diagnostic technology to reduce the users' contact frequencies. We can also shorten the maintenance cycle by using optimization lists. We are providing the full scenario ecosystem to provide full-cycle service capability. In terms of globalization, in May 2024, we formed the joint venture with Stellantis to create Leapmotor International to be in charge of the export sales and localized production overseas. From the 24th of September 2024, Leapmotor International has initiated the sales of C03 and T02 in the mainstream countries in Europe. As of the end of December, we have exported 13,726 vehicles to overseas sales channels. We are also adopting overseas sales channels. We are building over 400 outlets in the world, including 350 in Europe and also about 50 in Asia-Pacific, Middle East, Africa, and South America. Expected in 2024, we are going to form 550 sales channels to lay down a solid foundation for globalized sales. We're using Stellantis' auto finance services and insurance, repair, maintenance, and resources. We are quickly reaching top-level service level for international car makers to provide convenient after-sales services. Now, Leapmotor International has already reached an agreement with Stellantis' auto finance to provide financial services to dealers and consumers. We have one depot with five sub-depots of spare parts so that we can provide spare part delivery twice a day to the service network. In terms of ESG, in January this year, again, we have been rated AA by MSCI. For two years in a row, we are leading the peers in the world. In 2024, we are also having authoritative sustainable development rating and also our electric components and also providing strong support to the third-party customers. On the 3rd of March 2025, we have signed an MOU with FAW China, pertaining to two aspects. First of all, each company will play out its strengths in R&D technology, jointly develop the new energy vehicles, passenger vehicles, spare parts. Secondly, two parties have been discussing deepening collaboration of capital collaboration. By capital collaboration, achieving the full-chain resources synergy. From January and February, we have so accumulated 50,457 units, which is up by 167.8% from the period in 2023. Thank you. Thank you, Mr. Li, for the sharing. Now it's time for questions. Operator, how do we take questions? Okay, we'll be taking questions from the mandatory line. You can press star one on the phone, or you can use the network interface to enter a question in the chat box. Thank you. Hello, good evening. Particularly grateful for the presentation by the management. Congratulations to such wonderful results. I'm from CICC, Ren Danlin. I have three questions for you. Now, I wonder, do you have any guidance or update of guidance for 2025, including guidance on sale, GP margin, and profitability? The second question is to have you help us to map out the model planning for this year. The third question is about the capacity. I mean, based on the current capacity for the couple of years, are you seeing more demand for additional capacity? Okay, thank you. To your first question regarding guidance in 2025, right now, the company expects that in 2025, the delivery full year, including overseas delivery, will be 500,000-600,000 units. In terms of number of sales. Last year, in terms of GP margin, the full-year GP margin was 10%-11% of our target. In terms of net profit, the full-year target, we are striving to achieve profit in 2025. That was our full-year guidance for 2025. Now, regarding the 2025 total model plan, first of all, in this year, as I mentioned in my presentation, we're going to be launching three models on the B platform, which is B01, B05. Tonight, we're actually going to also launch the B10 as a pre-sales. These are the brand new three models in 2025 on the B Series. Regarding the C Series, the C10, C16, C11. Well, C10, C16, as the two products launched in 2024, this year, they are going to have a facelift for the 2025 edition. C11, in the middle of the year, there is also going to be a major facelift in the midterm of this year. That will be our product mapping for the year. Now, when it comes to capacity, right now, we have in Jinhua City of Zhejiang Province, where we have two factories. Of course, to cope with the upcoming production improvement, the company also has planned to add factory capacity. Thank you. Thank you, Mr. Li Tengfei. That will be my question. Thank you. Okay. Next question from the phone number ending 6426. Hello. Thanks for having me on. I am from Citi Auto. I am Kang Kai, auto analyst. Congratulations to the great results in 2024 Q4 and also embarking on a new journey. I have two questions. First of all, we have seen that last year, Q3, Q4, we have seen rapid improvement of GP margin. You have your in-house R&D in terms of the LEAP 3.0 architecture. What's the contribution from these in-house components? Because, I mean, regarding the component, the seats, the door, trim, you might have a Stellantis agreement. You should be trying to improve your economy of scale, right? I'm wondering in the future, whether it's the in-house R&D or external collaboration, what is the contribution to your GP margin? How can we see your competition with the top players in the market? Thank you. That will be my first question. Okay. You talk about the Q3, Q4 GP margin improvement. In Q3, Q4, the improvement was significant come from many reasons. First of all, that is because of overall sales in Q3, Q4 has been massively up, which provided the volume effect because we are able to reduce the fixed costs. Secondly, because Q3, Q4 have been seeing a model mix because Q3, Q4, C10, C16 were ramping up. They are counting more shares in the C Series, which is also a positive contribution to GP margin. The third reason is when you mentioned the cost improvement. The cost improvement has a lot to do with our in-house development costs. In terms of in-house development, in-house production, particularly on the C Series, they are seeing higher and higher proportion in the C Series. That also contributes to the cost down significantly. Of course, because of rising volume and also continued drive down, the procurement cost of spare parts and components, this has all contributed to the improvement of GP margin in Q3 and Q4. You mentioned that in the future, in terms of parts, what is the contribution from parts to the gross margin? Overall speaking, we are addressing a mass market. In-house production resources are very important for having some profit from these foreign parts because most of the gross profit from a vehicle actually comes from the gross margin from our in-house component and parts. Therefore, when we are able to meet our own demand, we are also expanding our channel to sell our parts to outside by using our resources and parts so that we can combine both in-house use and also outside sales so that we can improve the size and volume of that business. That will contribute to revenue. That will also help to amortize costs, and that is also going to contribute to the profitability and to support the profitability of whole vehicles. That will actually help us to achieve our product strength of high value for money. At the same time, this also contributes to stable profitability in our operation of the company. Thank you. Thank you. I have another question because we have seen that this year, last year, investment gain like Leapmotor International contributed about RMB 10,000 net profit per car in overseas. This is actually better than what people expected. My question is, nowadays in Europe, you are selling Leapmotor vehicles, and you mentioned that, but also in Africa and other non-European regions. I'm wondering, you are building channel in non-European regions. How fast is it going to be this year? Are you expecting some ramp-up in volume this year? In some regions, they might not have that kind of high entry barrier or sales barrier. You're able to export with volume, but also profit. What's that going to be looking like? Thank you. Regarding overseas channels, actually overseas, other than Europe, we have over 300 network outlets in Europe, but also in other three major regions, we have about 50 outlets as a network. In 2025, our target is to achieve 450-500 channel outlets in Europe, and the rest of the regions, we hope to achieve around 200, over 200 channel outlets in the three regions. Moving from 50 to 200. As you mentioned, outside of Europe, our vehicles were being sold to South America, Brazil, Middle East, and Turkey, and Asia-Pacific, and also in Australia. We have models being sold over there already, and they are very popular by the local consumers. In 2025, Leapmotor International will continue to drive up all four regions so that we can quickly achieve our overseas sales target for Leapmotor International. Thank you. I wish you a successful 2025. Thank you. Next question from phone number ending with 2110. Hello. Good evening. I'm from Zhongtai Securities, He Junyi. I'm an Auto Analyst. I have three questions. First of all, about the price range. Now, for new product, which is above RMB 200,000, what is the timing for that, and what kind of plan do you have for that? My second question is about autonomous driving. Can you help us understand in terms of autonomous driving, like RMB 100,000-RMB 200,000 or maybe over RMB 200,000? What is the layout for autonomous driving product? Thirdly, about overseas profit guidance in 2025. All right. Let me start with your first question, which is new product above RMB 200,000. What's the timing for the RMB 200,000 launch? As you know, Leapmotor, we have class A, B, C, D. We have four platforms. Platform D is a high-end platform for the company. This will be the model above RMB 200,000. Those are the main platform. The platform D product will be expected to be launched in the first half of next year, 2026. By then, you're going to see on D platform product, we'll continue to present our feature of Leapmotor to present you with a highly competitive product. Secondly, regarding autonomous driving, now BYD this year and, and other peers continue to launch their autonomous driving product. Leapmotor, actually, in the past two years, we have actually been making a lot of preparation in that regard. I invite you to actually follow us because this evening, we're going to have a Technology Day release, a press con for the Leapmotor. On the press con, we're going to give you details on the autonomous driving, particularly the adoption of autonomous driving product on B10, those kind of products. As you know, we have the technology strength at Leapmotor. Our strength on the entire platform. Therefore, once we have an autonomous driving technology adopted in any model, it will be quickly rolled out throughout the entire platform on other models on the platform. In terms of the smart driving democracy, I think our peers have been really helping us to drive ahead. They have really given us a huge push. You can see we are making a lot of efforts in democratizing autonomous driving. Thirdly, regarding the profit guidance of overseas business 2025, actually, what the company asked for Leapmotor International is to quickly expand our sales channel. The hope is to expand sales channel, improve our branding strength in overseas, improve overseas sales. Now, when it comes to profit, both shareholders of the company have provided a target for Leapmotor International to break even. The target is to break even. Still, we are looking more on the branding channel and sales. We are hoping to quickly promote the Leapmotor brand to the whole world. Okay. Thank you. Thank you, leadership. I hope 2025 will be another successful year for you. Thank you. Okay. The next question from phone number 5325. Hello. I'm Tianfeng Securities Auto Analyst, Shao Jiang, and I have two questions for you. The first question regarding your overseas business. Actually, I have three questions related to that. First of all, the sales guidance for overseas sales, particularly the sales guidance for Europe. Second, I see in March, you have C10 REEV version will be starting to be sold in Europe. What do you think of the REEV policy there? Also, the C10 BEV and REEV, what is the gross profit respectively? The third question is right now, where we have a bit more clarity in the European policy. What do you think of your supply chain there? The CKD capacity, what do you think of the deployment of CKD capacity in Europe? Okay. To your first question, you are talking about overseas sales guidance, right? In 2025, the overall overseas sales, we estimate to be 50,000, about 50,000-60,000 units. That will be the range of sales for overseas for Leapmotor International as a sales target. Now, regarding the REEV, the range extended version, and what is it to do with BEV, the battery EV? REEV, not just being sold in Europe, but also in South America, in other regions, we will be deploying REEV additions, including B10. There will be REEV addition of B10 in overseas. For overseas market, you mentioned Europe and other regions. They have their consumption preferences. Actually, overseas are adopting new energy a bit less than China. It's not as fast in Chinese adoption. REEV is quite a considerable market overseas, particularly in other countries when the charging infrastructure was still not that built up as in China. In that case, REEV, the range extended model will be a good choice where you can enjoy the advantage of having an electric car, but also you are able to circumvent the charging anxiety. That kind of model is going to be very in demand in overseas. You talk about REEV versus BEV in terms of gross margin. I can say right now, roughly REEV model and BEV is not going to be that different in terms of overall margin in overseas. Thirdly, was it about localization? I didn't get your question. Yes. I just want to make sure you said the GP margin will be not that different, REEV and BEV. Are you saying not different? I didn't hear. Yeah. Not that different. Also, what's the gap? I don't think it's the right time, right place to talk about because the REEV model still needs a bit of testing. Okay. Please continue. Thirdly, you talk about localization, right? Yeah. When it comes to Europe and the European Union, including other countries, of course, tariff is a well-known issue now. Leapmotor, from our angle, working with our partners, the Stellantis group, we are jointly exploring the process of localization because of our partnership of the two sides. We believe the localization process of Leapmotor will do very well in terms of speed and quality, which will be of a higher quality compared with our peers. Both sides have conducted a lot of preparation work. It is expected that in the near future, we're going to have specific actions to make it happen. Of course, we have to think about the cost of localization, any potential change of policy. There are still some uncertainties. Right. Can I ask one more question? Because you talk about in the overseas market, you're going to launch an REEV model, right? Do you have the timeline for that? It should be sometime this year or second half this year. Okay. Got it. My second question has to do with autonomous driving. First of all, the autonomous driver, how does it empower your business model? I wonder what is going to drive your sales with autonomous driving feature. I mean, other than the empowerment from autonomous driving, what about the other factors like robotaxi, those kind of direction? Any ideas? In terms of the autonomous driving, it is going to be based on our own products. Of course, driving the sales is one thing, but for our end goal, it is more important to provide users with a satisfactory product. That is really more important for us because we want them to experience something that is more advanced, better experience, and help to improve the overall competitiveness of the product. That is what we are aiming for in terms of autonomous driving at the current stage. Right. Can I add a bit of a question? Because previously, I see that you are advertising RMB 150,000 with LiDAR, and by the end of this year, maybe RMB 100,000-RMB 150,000. Are you going to fit a LiDAR on those models? In terms of autonomous driving democracy or democratizing autonomous driving, as I mentioned, please tune in to our press release tonight, which will be an hour later, because in that press release, we're going to release the technology. I think it will be something you will expect. Also, when it comes to democratizing the technology to even lower-end models like A platform, because next year, the A platform is going to be launched next year, it is a bit too early to talk about it now. Okay. Those will be my questions. Thank you so much. Okay. Next question from 6221. You have the floor. Hi. I'm [Liang Fu], Auto Analyst from Bank of America Securities. Congratulations to results in Q4 last year. I have three questions. Now, first of all, about the sales target, you talk about 500,000 as a sales target. Can you help us to break it down that by the end of this year, what is the contribution from B platform? What is the contribution from B Series models? And what is from C? Do you have more questions? Or should we take them all before I respond to you? Maybe you can address the first one before I ask the second one. Yeah. Our total sales target, as mentioned, the full-year sales target is 500,000- 600,000 units. Now, I can definitely tell you that the 500,000- 600,000 unit sales mix surely will be predominantly Series C and Series B. Series B, Series C contribution will be even higher. You talk about the B Series and C Series, what is the contribution? What exactly is going to be their contribution? At the moment, I don't think it's the right timing to disclose because it has to do with how we want to launch the B Series and also the C10, C16 sales target. Also, we're going to have a launch of the C11, a new model, 2025 model. For Series B, we have very good expectations from the company. Tonight, we're going to launch the product. You're going to see the competitiveness. I'm sure it's going to be a blockbuster product. The three products from C Series, C11, it's been launched for three years already. Still, C11 has maintained very vibrant vigor. This year, we're going to launch a C11 midterm facelift and C10, C16, even though those were launched in 2026 in the case of C16. In the first half of this year, we're also going to complete these 10, C16 facelifts. This is going to further improve the product competitiveness. We believe the C Series products, after the launch of new models, the new facelifts, are going to be very powerful. B Series and C Series will be supporting our achievement of the sales target, which is 500,000-700,000 units a year. Thank you. I have another question regarding your LEAP 3.5 platform because today, you have published the new platform, LEAP 3.5. In terms of the architecture of the platform, how do you expect the architecture to contribute to your margin or maybe a better contribution to the cost? I'm sorry, your line is a bit kind of breaking up. I didn't quite hear your question. Are you talking about the 3.5 platform? What was your question again? Yeah. Your line is kind of breaking up. My question actually has to do with the LEAP 3.5 platform that you have just released. So the new product under this new platform, how do you compare the GP margin compared with the platform 3.0? Is there any improvement in terms of gross margin compared with the platform 3.5 versus 3.0? Are you talking about GP margin? Yeah. To your question, the platform 3.5 is actually improving our product capabilities, right? That platform, as you know, is the foundation of a new energy vehicle for the electric electronic architecture, and it's the soul of NEV. Leapmotor has been exploring deeply into the electric electronic architecture of NEV, and we have launched a LEAP 3.0. Tonight, we're going to be releasing the brand new LEAP 3.5 platform. Our B Series, C Series, and facelift products will be all adopting the LEAP 3.5 platform. That platform actually helped to improve our integration of domain control. With higher concentration domain control, this helped to improve the performance and capability of the whole vehicle, providing better and more product to the users. When it comes to the GP margin improvement, as I mentioned, the GP margin improvement comes from many other factors. It's not simply coming from a platform by itself. The GP margin is not dictated by the platform by itself. It has to do with the overall sales of the company, economies of scale, the launch of model, and the product mix. It also has to do with the improvement in cost control. Everything will contribute to GP margin in the end. It's not simply a factor of switching to a different platform or new platform. Let me just add to it a little bit. Mr. Li has given a very thorough answer, but I'd like to add, people who are asking the B Series, you expect the sales will be the price will be lower than C Series, right? People will say B Series GP margin should be dragging your margin down because B Series will be lower margin than C Series. Would it be negative to the overall margin? Actually, B Series, they're using LEAP 3.5. Everything was optimized based on LEAP 3.5. The power consumption was reduced, matching with the model. It's just going to be a highly cost-effective product with both cost-effectiveness and performance and features. As a result, it's actually going to help to achieve a very healthy GP margin for the B Series. B Series is not going to be a drag on the gross margin. Both B and C, they will have their respective advantage, and the cost will be optimal, very healthy gross margin on both. Thank you. My third question is about, can you help us to give us a bit more color on your overseas model launch this year and the next year in terms of timing for the launch in overseas? In terms of launch of overseas models, as mentioned before, like this year, we're going to be launching the B Series, B10, maybe in the second half of this year. The B10 will be launched in overseas. Other B Series products, including the A Series product that we're about to launch in the future, they will be also launched in overseas. There was a plan for that as well. However, based on one thing, this is our overall plan. It has to do with our development process and development progress of the models. We are not completely locked in the second model yet. Some of the models have not been made public yet, so I'm not able to show you the launch plan before they are finalized with the plan. I hope you understand that. Okay. Okay. Looking forward to subsequent news from the company. With that, I thank you. Thank you. Okay. Next question from 9915. Hello. I'm [Zhang Zhuying] from Haitong Securities. First of all, congratulations to the excellent results. I have three questions. First of all, let me confirm, you talk about 2025. Your JV's target is to break even, right? Yeah. The second question is, now, the 13,000 units of export in 2024, what's the breakdown of T03 and C10 in export last year? Subsequently, in the future, what is the view on the product mix when it comes to overseas sales? Is there any plan in terms of the product mix? Right. To your first question, let me confirm that regarding Leapmotor International, our target is to hopefully they're able to break even. We are expecting Leapmotor International to devote more resources in marketing and market development to sales boosting. As to your second question related to contribution of T03 and C10, because our products have completed overseas certification, the timing is not exactly the same. In terms of a product mix right now, it's not a true representation of the end game or the ultimate sales mix. Right now, we still have a bit more T03 in the mix, a bit less in C10. This is what's happening now. However, in November and December, C10, and even in January and February this year, C10 is actually ramping up fast. From our angle, these are the two products we launched overseas, whether T03 and C10. We hope they will be having good development, both of them in overseas. Right now, T03 as a miniature platform is actually very popular in Europe. T03 is really welcomed by European users, which is a nice fit of the market in Europe. Now, when it comes to C10, even though C10 as a model is more like a mid to large-sized product, C10, as the case in China, has presented excellent review and feedback. Right now, it is very popular among the local consumers. As you can see from the media coverage, you can see actually the positivity in terms of our product C10 in Europe is quite a popular product. From our angle, right now, we are not really after a certain percentage of any product. At this stage, what we hope is to bring up the Leapmotor branding to overseas market so that more overseas users are aware and accept Leapmotor's product. That is actually more important for us at this stage. Got it. My third question is about autonomous driving because in the annual report, you mentioned that you will be adding AI computing power, data infrastructure. You're going to add more resources investment. Is there any quantifiable metrics for us? Any numbers? To your question, as mentioned before, in 2025, our autonomous driving team is going to be expanding the headcount. The entire team is going to be moving from 500 people to over 600 people. Not just only the headcount of the team, but also quality of the team members. We're going to bring in more advanced autonomous driving talents to make sure we can achieve our strategy and to implement the strategy with the quality and volume that we're asking. In terms of the total cost in 2025, we're going to be making investment about RMB 800 million, more than RMB 800 million as an investment. In terms of computing power, we have invested but also rented computing power with 1.5 TFLOPS of computing power to make sure we have enough autonomous driving product development progress. Understood. Thank you. Thank you. As we are running out of time, let's take the final question, maybe final two questions. The next question is from 7946. Hello. Good evening, management. First of all, congratulations to the company. I'm [Yu Xiaofei] from Yongxin Auto. I'd like to ask you about the C Series remodels. They will be built upon the LEAP 3.5 architecture. Also, you have a range of autonomous driving solutions to be upgraded to the C Series. Would that be an impact on gross margin? Thank you. First of all, the C Series with the C10, C16, and C11 this year, we're going to be seeing the mid-year remodeling. They will all be using our LEAP 3.5 architecture. That's for sure. That's for sure already. Secondly, as you mentioned, is it going to be having an impact on a gross margin level? As I responded, Mr. Wu Qiang has responded previously. The LEAP 3.5 platform is something that presents technology strength, presents technical capability, but also presents cost capability, invariably provides further optimization. That platform is not going to have a negative impact on the GP margin for our upcoming products because this is based on our full-suite in-house R&D by Leapmotor so that we have the general adoption technology across the platform. Any new technology will be adopted in scale on our products. By using LEAP 3.5, this is going to be adopted on the B platform and C platform. This will help us to better control our costs with the products. In our case, we'll be dedicated to providing even better and more advanced and more comfortable product experience to the users at the same time, striving to maintain our advantage of providing better value for money. It is actually a much better experience for the users. Okay. Thank you. No further question from me. Okay. Last question from investor ended 0877. Hello. I'm [Zhen Xian] from [Pǔyín] International. I have two financial short-term questions. Can you briefly give us an outlook on the Q1? The Q1 GP margin for Leapmotor, do you have any idea or outlook? In Q1, what are the expenses? Can you also give us a bit of a forecast on expenses in Q1 as well? Because the first quarter, we are so today, we are having the full- year 2024 earning announcement. It is probably not a good timing to talk about data in the first quarter. I can point you to some directions if I may. We believe that overall GP margin in the first quarter this year, as of now, when we look at the gross margin in the first quarter compared with last December, there could be a small reduction because the overall sales in the first quarter, the monthly sales and overall sales compared with last December, there's been some gaps because in January and February, we have cumulative sales of 50,457 units. Overall sales compared with the same period last year was a massive growth year- on- year, which is 167% growth. On a month-on-month basis, because December sales was still kind of lagging behind from December where there were sales of over 40,000 a month, there is some seasonality of the NEV market. However, our sales in January and February, we still outperformed the overall market. The GP margin in the first quarter won't be a disappointment to you. Thank you.