Hello, ladies and gentlemen. Thank you for standing by for the fourth quarter and fiscal year 2020 earnings conference call for XPeng Inc. At this time, all participants are in listen only mode. After the 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. Charles Zhang, Managing Director of Strategy of the company. Please go ahead, Mr. Zhang. Thank you. Hello, everyone, and welcome to the fourth quarter and fiscal year 2020 earnings conference call of XPeng Inc. The company's financial and operating results were issued via newswire services early today and are available online. You can also view the earnings press release by visiting the IR section of our website at ir.xpeng.com. Participants on today's call will include our Co-Founder, Chairman and CEO, Mr. Xiaopeng He, Vice Chairman and President, Dr. Brian Gu, Vice President of Finance, Mr. Dennis Lu, and myself. Management will begin with prepared remarks, and the call will conclude with a Q&A session. As a reminder, this conference is being recorded. 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 provision 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 SEC. The company does not assume any obligations to update any forward-looking statements except as required under the applicable law. Please also note that XPeng's earnings press release and this conference call include the disclosure of unaudited GAAP financial measures, as well as unaudited non-GAAP financial measures. XPeng'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. Xiaopeng He. Please go ahead. [Non-English content] Hello, everyone. Thank you for joining XPeng's fourth quarter and fiscal year 2020 earnings conference call today. [Non-English content] In the fourth quarter of 2020, we achieved another quarter of record high vehicle delivery, which reached 12,964 units, up 303% year-over-year and 51% quarter-over-quarter. Vehicle deliveries for the full year of 2020 increased by 112% year-over-year to 27,041 units. Driven by strong delivery growth, we increased our revenue in 2020 by 151.8% to RMB 5.8 billion. More excitingly, we achieved a positive full year growth margin for the first time in the company's history, marking a significant milestone. [Non-English content] I believe that 2020 signified the beginning of a new era in China's smart EV development. During the year, our consistent execution of the past six years of full-stack in-house R&D strategy bolstered our ability to provide customers with differentiated smart EV products and lead the technology innovation of smart EVs in China. [Non-English content] I would like to go through our recent advancements in smart EV technology innovation. [Non-English content] In October 2020, we released our second generation smart in-car operating system through OTA, which features the first of its kind all-voice in-car system. This is one of our key proprietary technologies that allow our customers to interact with our vehicles in natural language and continuous dialogue. In January and February 2021, the average daily utilization rate for our AI voice assistant exceeded 90%. This illustrates the disruptive changes our self-developed smart in-car operating system is bringing to traditional in-car interactions. [Non-English content] On January 26th, 2021, we have released the first OTA of XPILOT 3.0, our full-stack in-house developed autonomous driving system, which includes our navigation assistant, highway autonomous driving solution or Navigation Guided Pilot, NGP. NGP has been activated in approximately 20% of all P7s delivered as of the end of February. It has assisted our customers in driving for more than 1.3 million kilometers. Leveraging field data from our customers and our closed loop data capability, we can continuously train our algorithms and implement fast iterations, providing our customers with an evolving autonomous driving system that is capable of handling complex road conditions in China. In February, the NGP assistant mileage penetration rate, which refers to the mileage assisted by the NGP as a percentage of the drivable mileage of NGP, exceeded 50% amongst those P7s that activated the NGP. This is a very exciting figure. With the continuous advancements in our autonomous driving capabilities, we're confident that autonomous driving features will be a key consideration of our customers' purchasing decisions. Later this month, we'll also kick off the NGP expedition from Guangzhou to Beijing to showcase the disruptive experiences our cutting-edge autonomous driving system can offer to the customers. [Non-English content] In addition to that, we're also planning to release multiple OTA updates of XPILOT 3.0 in 2021, including memory parking and a further improved version of the NGP, to enhance our vehicles in terms of safety, functionality, and performance. [Non-English content] We'll deploy automotive-grade LiDAR technology on our third smart EV model, which we plan to deliver in the second half of this year. We believe our third model will be the first mass-produced smart EV equipped with LiDAR in the world. Leveraging our visual based perception capability complemented by LiDAR, we plan to roll out XPILOT 3.5, which will support NGP on major urban roads. We also plan to introduce XPILOT 4.0, built on our next generation autonomous driving hardware and software platform to be deployed on our fourth model, which will be launched in 2022. We are confident that XPILOT 4.0 will provide our customers with a new level of autonomous driving experiences. [Non-English content] Each aforementioned technological advancement underpins our mission to drive smart EV transformation with data and technology, shaping the mobility experience of the future. Looking forward, as we upgrade our XPILOT and Xmart in-car operating system, we're committed to investing in smart EV technologies and leading technology innovation. [Non-English content] As we solidify our core strength in technology, we'll strive to diversify our product portfolio to address additional customer needs and expand our market share. [Non-English content] Later in March this year, we expect to start to deliver the P7 Wing Edition that was unveiled in November at the Guangzhou Auto Show 2020. This edition features sporty wing doors. It is also equipped with the XPILOT 3.0 system as the standard configuration. It provides an exclusive and exhilarating mobility experience to auto enthusiasts. [Non-English content] On March the 3rd, we announced lithium iron phosphate, or LFP, battery-powered G3 SUVs and P7 sedans, and we plan to start deliveries in April and May respectively this year. We expect these two models to resonate across a broader customer base. [Non-English content] In the second quarter of 2021, we'll unveil and begin selling our third mass-produced vehicle model. This brand-new design will be the first mass-produced smart EV equipped with LiDAR and will support our XPILOT 3.5. Also, it will feature an innovative third-generation smart cockpit, connecting the vehicle to our everyday life in an even closer way. Mass delivery of this new model will start in the fourth quarter of this year. [Non-English content] Furthermore, we plan to begin delivering the mid-cycle facelift version of the G3 in the late third quarter of 2021. [Non-English content] In terms of sales and service network, as of December 31st, 2020, XPeng's physical sales and service network consisted of 160 sales stores and 54 service centers across 69 cities in China. Of the 160 stores, 72 were direct stores operated by us. During 2020, we greatly increased the efficiency of our stores, especially direct stores. By the end of 2021, we plan to increase the number of sales stores to approximately 300, covering 110 cities. [Non-English content] In terms of our supercharging network, we also accelerated our efforts to expand our coverage across the nation. As of December, the XPeng-branded supercharging stations was 159, covering 54 cities. To further improve our customers' charging experience, we plan to significantly expand the number of XPeng-branded supercharging stations in our network to more than 500 by the end of 2021. Since we initiated the free charging program last year, the number of cities in this program has grown to 100 as of the end of December. In 2021, we'll strive to expand our free charging service network to 200 cities and provide greater accessibility in a broader range of locations, including highways and airports. At the same time, we plan to substantially increase the number of XPeng-branded supercharging stations and charging piles in selected popular destinations to facilitate more convenient and efficient charging services for our customers. [Non-English content] In the fourth quarter, we also made positive progress in overseas markets. In December, we fully delivered the first batch of the European version G3s in Norway. In 2021, we'll continue to strengthen our capabilities of international operations in areas such as organization, product development, R&D, branding, and distribution channels. [Non-English content] With the rapid growth in vehicle deliveries, we have been ramping up our capacity at the Zhaoqing factory to prepare for a monthly production capacity of 10,000 units within this year. Meanwhile, we have started construction of our Guangzhou manufacturing base and expect to commence production in the third quarter of 2022. Our Guangzhou and Zhaoqing smart EV manufacturing base will shore up our production capacity and allow us to further capitalize on the rising demand in the EV market. [Non-English content] Looking into 2021, we remain dedicated to delivering smarter and more differentiated products to our customers in our relentless drive to implement fast software and hardware iteration and technology innovation. We'll also strategically make long-term investment in branding, sales and service networks, charging networks, a brand-new smartification system, our powertrain technologies, production and supply chain capabilities, international operations, and the R&D efforts into innovative product pipelines such as our flying vehicles, to support our growth over the next few years [Non-English content] Lastly, on guidance, for the first quarter of 2021, we expect our smart EV deliveries to be approximately 12,500 units and our total revenue to be approximately RMB 2.6 billion [Non-English content] Thank you, everyone. With that, I'll now turn the call over to our VP of Finance, Mr. Dennis Lu, to discuss our financial performance for the fourth quarter of 2020. Thank you, Xiaopeng, and hello, everyone. We are very pleased to have achieved solid results in our first quarter and throughout fiscal year 2020, which demonstrates our ability to effectively cater the rapidly growing market demand for compelling smart mobility experience. Our top line in the first quarter and for the full year expanded year-over-year with robust vehicle deliveries performance. In particular, we increased gross margin sequentially in the first quarter and post the first positive full year gross margin. Additionally, we had a strong cash position to ensure a solid financial foundation to execute our business strategies and to enhance our competitive advantages. Now, I would like to walk you through our detailed financial results for the first quarter of 2020. Total revenues were RMB 2.9 billion. For the first quarter, representing an increase of 345% from RMB 640 million for the same period of 2019, and an increase of 43% from RMB 2 billion for the third quarter of 2020. Revenues from vehicle sales were RMB 2.7 billion for the first quarter, up 376% from RMB 575 million for the same period of 2019, and an increase of 44% from RMB 1.9 billion for the third quarter of 2020. The year-over-year increase was mainly due to mass delivery of the P7. The quarter-over-quarter increase was primarily due to accelerated vehicle deliveries for both P7 and G3 in the first quarter of 2020. Gross margin was 7.4% for the first quarter, compared with a - 6.6% for the same period of 2019 and 4.6% for the third quarter of 2020. Vehicle margin was 6.8% for the first quarter, compared with a - 8.5% for the same period a year ago and 3.2% for the third quarter of 2020. The improvement was primarily due to better product mix, decreased material cost, and increased manufacturing efficiencies. Research and development expenses were RMB 460 million for the third quarter, down 29% from RMB 652 million for the same period in 2019, and down 28% from RMB 635 million for the third quarter of 2020. The year-over-year decrease was mainly due to higher expenses relating to the development of the P7 a year ago. The quarter-over-quarter decrease was mainly due to the reduced share-based compensation expenses in the first quarter, compared with one of larger amount recognized in the third quarter. Selling, general and administrative expenses were RMB 918 million for the first quarter, representing an increase of 133% from RMB 395 million for the same period a year ago, and a decrease of 24% from RMB 1.2 billion for the third quarter of 2020. The year-over-year increase was mainly due to, number one, higher marketing, promotional and advertising expense to support vehicle sales. Number two, the expansion of our sales network and associated personnel cost, lease expense of physical sales and service center, and also the commission for the franchise stores. The quarter-over-quarter decrease was mainly due to the reduced amount of share-based compensation expense compared with one of larger amount recognized in the previous quarter, offset partially by increase in marketing, promotional and advertising expense as well as personnel cost, lease expense and commission, as mentioned above. Excluding the share-based compensation expenses, the year-over-year and quarter-over-quarter increase was mainly resulted from higher marketing, promotional and advertising to support new vehicle sales, and also the expansion of our sales network and associated personnel cost, and also the increased commission paid to our franchise dealers. Loss from operation was RMB 1.1 billion for the first quarter, compared with RMB 1.1 billion for the same period 2019 and RMB 1.7 billion for the same quarter of 2020. Excluding the share-based compensation, the non-GAAP loss from operation was RMB 1 billion in the first quarter, compared with RMB 1.1 billion for the same period of 2019, and also RMB 823 million for the third quarter of 2020. Net loss was RMB 787 million for the first quarter, compared with RMB 1 billion for the same period a year ago and RMB 1.1 billion for the third quarter of 2020. Excluding share-based compensation expenses, the fair value change on derivative liabilities related to the redemption right of the preferred shares, the non-GAAP adjusted net loss was RMB 730 million for the first quarter of 2020, compared with RMB 1.1 billion for the same period of 2019, and also RMB 865 million for the third quarter of 2020. Net loss attributable to ordinary shareholders of XPeng was RMB 787 million for the first quarter, compared with RMB 1.3 billion for the same period a year ago and also RMB 2 billion for the third quarter of 2020. Excluding the share-based compensation expense, the fair value change on derivative liabilities related to the redemption right of preferred shares, and also the accretion of preferred shares to redemption value, the non-GAAP net loss attributable to ordinary shareholders of XPeng was RMB 730 million for the first quarter of 2020, compared with RMB 1.1 billion loss for the same period of 2019 and RMB 865 million for the third quarter of 2020. Basic and diluted net loss per ADS were both RMB 1.05 yuan for the first quarter of 2020. Non-GAAP basic and diluted net loss per ADS were both 0.95 for the first quarter of 2020. Each ADS represents two Class A ordinary shares. It is worthwhile to know that the calculation of earnings per share for the ADS is based on the weighted average number of the ADSs. For example, 747 million ADSs were used for the first quarter of 2020, while 377 million ADSs have been used for the fiscal year 2020. Our year-end ADSs count was 789 million at the end of the year. Turning back to the balance sheet at the end of 2020, our company has the cash and cash equivalent, restricted cash, short-term deposits, and also the short-term investment in total RMB 35.3 billion, compared with RMB 2.8 billion as of December 31st, 2019. To be mindful of the events of our earnings call for other full year financial results, I will encourage listeners to refer to our earnings press release for further details. This concludes our prepared remarks. We will now open the call to questions. Operator, please go ahead. Thank you. At this time, I would like to remind everyone, in order to ask a question, press the number one on your telephone keypad. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. For the sake of clarity and order, please ask one question at a time. Management will respond and then feel free to follow up with your next question. Your first question comes from Tim Hsiao of Morgan Stanley. Your line is open. Hello, everyone. This is Tim from Morgan Stanley. Congratulations on the strong results and thanks for taking my questions. My question is about the guidance. Because based on the latest guidance, we are looking for around 5% sequential price erosion in first quarter. Could you please elaborate more about the underlying factors? Especially, I think previously the management mentioned some of XPILOT 3.0 revenue would be recognized in first quarter. Given that ASP accretive, why are we still expecting ASP to be down quarter-over-quarter? Thanks. [Non-English content] Okay, thank you for your question. I think in quarter four we delivered close to 13,000 units. In the first quarter because of the seasonality issue, the February which was very slow, typically the lowest demand in a year. Our guideline for the moment is 12,500 units. You can see that 500 units are like volume and mix impact. Yeah, you are right, we have included the XPILOT 3.0 for those vehicles, those customer, who have activated the functionality. We have included in our first quarter, mainly in January and part in February. Due to the volume and mix impact we are foreseeing, there was some minor impact on the overall revenue compared with the quarter four last year. Okay, thanks. My second question is about more like the impact from the component supply chain. We are going to launch the LFP version P7 in second quarter. I just want to know that with increasing battery variety, how to ease the battery bottleneck in second quarter or the other way around. In the meantime, our peers and other traditional OEM highlighted the impact from hiccup caused by component tightness. What's our assessment of the potential impact to XPeng, the company's second quarter shipments? Thank you. [Non-English content] [Non-English content] Yes, indeed. I think for the coming six months, battery supply will remain very important for our OEMs out there, and for our new models of P7 and G3 for their Q2 deliveries. I think that would be very challenging in terms of battery supplies because we are adopting this new LFP batteries, and then we're working very closely with our battery suppliers to solve this challenge. I believe in the long run, we will be facing ramp up in terms of our battery supply. By Q3 and Q4 in the coming year, we'll be able to solve the supply issue. With our past experience of successful delivery of the 500 km version, the range version of G3, we are very confident that we can solve this kind of challenge of adopting LFP as our new battery for our vehicles in the coming year. Tim, this is Brian. Let me just add to what Xiaopeng just said on this LFP battery version of our products. We are seeing actually very healthy and very strong demand for that product. Since we just recently launched, we already see up to 20% of our P7 actually have the LFP version battery orders, which is actually very interesting and very exciting. The supply issue, I think Xiaopeng mentioned, I think we actually expect this to gradually resolve as we actually head towards the second half of the second quarter. I think this volume will be picking up as we see. For the second quarter, actually we are very confident that we can see actually quite healthy growth over the first quarter, overall for the deliveries. Got it. Thank you very much, Mr. He, Brian and Dennis. Thanks for the answers. [Non-English content] Your next question comes from Edison Yu of Deutsche Bank. Your line is open. Hi, thanks for taking the questions. First, kind of more near term, I know you just said 2 Q should see sequential growth. Can you give us kind of an idea of not only 2 Q but in the second half as well? Obviously, I'm not trying to pin you down to a number, but just assuming demand is there, what kind of monthly sales run rate could we see? Is there any sort of limitations due to the semiconductor shortage? [Non-English content] Edison, this is Brian again. We obviously don't want to give out long range guidances per company policy. What we can see as Xiaopeng describing the opening remarks that we actually have new product introductions every quarter for the next three quarters. We actually see growth picking up on a sequential basis, fairly healthy. In terms of supply constraints, right now we have visibilities for about two to three months of semiconductor supply, which I think on a long range basis, we are monitoring very closely as to whether that will impact our supply chain overall. So far in the foreseeable period, we don't see any impact, but that's something we actually paying a lot of focus on. At the same time, I think given our volume is relatively small compared to some larger OEMs that's facing much bigger crisis, I think we are more nimble to address this issue. This is definitely something we'll be monitoring very closely. Great. The second question, unrelated. I wanted to ask about XPILOT. As we think about the next generation offering, would you consider moving to a subscription-only model for the features? If not, would you expect the pricing of it to go up since now you're equipping it with LiDAR? Thank you. [Non-English content] [Non-English content] Yes, based on our newer generations of XPILOT, we'll definitely increase the pricing for different configurations. Whether or not it's a subscription model or a one-off payment model, it will depend on our customers feedback and also our overall strategy. Generally speaking, definitely ASP will go up for higher versions of XPILOT. Thank you. Your next question comes from Jeff Chung of Citi. Your line is open. My first question is, how should we see the sales mix between LFP and the NCM power, the BEV, going forward, and the differences in margin outlook and guidance on the changing the full year sales target? this is my first question. [Non-English content] For the LFP battery, we are seeing, obviously it's still recent days, that on the P7 version, the LFP version actually is close to 20% of the new orders. on the G3, I think, it's around 10% of the new orders that are LFP battery. We believe that mix will probably increase as we continue the promotion in introducing these new LFP battery products. Another very interesting, I would say, mix on the LFP battery version is that since we got rid of the low-end configuration without the autonomous driving and assisted driving systems, actually, the percentage of these LFP battery version P7 that's incorporating our XPILOT 3.0 hardware is actually much higher in terms of percentage than the entire P7 population, which also can potentially translate to higher software penetration for these products, which is actually quite exciting. In terms of growth for March and the full year, I think I already gave the comments earlier. I don't know whether you're looking for anything specific. Yeah, just the margin outlook. If we take off the software portion, just considering the hardware, the vehicle portion, could you give us some, the roughly level between the margin trend on the vehicle powered by LFP and on vehicle powered by NCM? Because some OEM actually can achieve a higher margin from the LFP-powered BEV. I just want to know what the company think about the long-term margin trend. Thanks, Jeff. This is Dennis. For the margin, actually, the introduction of the LFP product, there are two purpose. One is to improve sales. The other one actually is to reduce cost. Definitely, this product will improve sales as well as will improve our margin. I cannot give you specifically the number or the amount of the margin improvement, but this product will bring us better margin for these two products. They are both P7 and G3. Okay, thank you. My second question is on the autopilot revenue and income. Considering the previous P7 equipped with XPILOT 3.0, the software income, and also the first quarter income will be combined together, in the first quarter earnings this year. A while ago, the management seems to give a rather conservative guidance on the software income. I just want to know the why. Secondly, could you give us some color on the attach rate on the XPILOT 3.0 right now, and also going forward, as well as the XPILOT 3.5 penetration level in the future? Thank you [Non-English content] Hey, Jeff, this is Brian again. I think I mentioned earlier that the entire P7, the activation of our XPILOT 3.0 represents over 20% of the entire P7 population, which we have delivered over 20,000 units already. Upon introduction of OTA in the NGP in January, we saw actually the penetration slightly going up, which is very encouraging. We also saw the utilization rate of that product is at a very high level, over 50%. We are actually very confident that, as we go into more and more product that's having the XPILOT 3.0 architecture embedded in the vehicle, we see the penetration rate will continue to increase. That's the trend that we're foreseen. It's difficult to predict the XPILOT 3.5, the penetration rate. for the third product that we're going to introduce in the fourth quarter, we're actually going to the product mostly in the configuration have either 3.0 or 3.5 XPILOT capabilities, which means that the majority, let's say, over 80% of the models for the third product will be able to charge software revenue, because they have the hardware configuration. we can anticipate the penetration rate for that product will be higher than P7. [Non-English content] I would just like to add to that. Basically, right now, if you look at our current XPILOT upgrading, you will notice the trend that we've been upgrading them quite aggressively and rapidly. Basically, in the future new models launched by XPeng, all of them will be equipped with newer version of XPILOT, and we plan to remove all of the older versions. For example, our latest upcoming third model that's going to be launched by XPeng will be equipped with XPILOT 3.5 or above. all of those will be chargeable version of XPILOT. For our fourth upcoming model to be launched by our company, it will be equipped with XPILOT 4.0. as a result, with the development and advancement of our software and technology and also this kind of investment on R&D effort into autonomous driving, and with future reduction in cost of these hardware preparation to support such XPILOT technologies, we believe in the future, all of the new vehicles launched by XPeng will be equipped with not only the hardware and architecture that are able to support newer versions of XPILOT, but also we will forecast more and more revenue income from the software next XPILOT. Thank you. Thank you, management. No more questions from me. Thank you. [Non-English content] Your next question comes from Bin Wang of Credit Suisse. Your line is open. [Non-English content] Do you want to repeat it in English for the other people to understand the question? Sure, actually, I just want to know whether you actually speed up your R&D for autonomous driving, because if you compare to your plan announced in the last October, we actually find that in the XPILOT 3.5, actually will only launch in 2022. Since that in the opening remarks you mentioned maybe end of this year, you already achieved XPILOT 3.5. For the same issue, actually, you also announced you will realize XPILOT 4.0 in 2022. This seems to be earlier compared to your last in the technology day you planned on 2023. That actually cannot assume you will have a speed up in the R&D capability. meanwhile, actually in the urban driving, that actually XPILOT 3.5, it doesn't mean you can already achieve the 90 degree turning in the vehicle, but also you actually look like the traffic light. Lastly, actually, because if you really speed up your R&D, we do have a big jump in R&D expense for the upcoming two or three years. Thank you. [Non-English content] Thank you for your question. Indeed, in 2020, based on our efforts and our R&D efforts in particular into XPILOT 3.0, we actually gain confidence into our future R&D effort and future launching of XPILOT 3.5, 4.0 and even 5.0. Yes, we plan to bring ahead the schedule of launching, I mean in the future, more higher version of XPILOTs. All of those comes from our current R&D efforts and also the data that we collected from our customers, which has been very positive. That's to the first part of your question. To the second part of your question, I believe that in the future, LiDAR technology, millimeter-wave technology and cameras will be part of the sensor configuration of the hardware architecture that supports a safer driving experience for future autonomous driving technology in general, because that will give us a better computing power that allow us to not only navigate among Level 1, Level 2 highways, but also in a broader sense of the urban growth across China and in other regions of the world. However, we believe that in order to achieve a full level of autonomous driving, there is still a long way to go, not only in China, but all over the world. We definitely have confidence that this will come sooner than expected. Thank you. [Non-English content] Yes, we are going to significantly increase our R&D spending this year and for upcoming years as well. Mainly, we'll be focusing on all of the areas surrounding autonomous driving, including the software upgrade of the data and computing, and also the internationalization of autonomous driving, and also an exploration into the Level 4 autonomous driving strategy, and also to the hardware upgrade in relation to supporting the software upgrade. Thank you. [Non-English content] Your next question comes from Ming Lee of Bank of America. Your line is open. [Non-English content] My question is regarding the international expansion, especially in Europe countries, because for some hardware or HD map, because of national security reasons, so you probably need to change the vendor or change software, etc. So what kind of challenge and bottleneck do you see for your international expansion, especially the smart cabin and autonomous driving are your strengths. [Non-English content] Yes. Actually, I've had many years of experience into expanding into the overseas market. I've been doing that since my first entrepreneurial project, which was back in 2010. My opinion on overseas expansion is maybe quite different from other counterparts in there. I think it takes a lot of time and efforts to build a solid foundation in order to grasp the international opportunities right there. In the future, our strategy on overseas expansion in general will be very similar to our domestic market ones. Basically, we'll focus on our product portfolio and our operation and organization. In those three areas, I think it will be very similar in our domestic market and international markets, so that in the future it can speed up our process of internationalization. Basically up to XPILOT 2.5, we'll be able to synchronize the launching of future XPILOT versions, both in the domestic market and in the overseas market as well. We plan to launch maybe in the European market and also in some very developed markets, XPILOT 4.0 and above in the future, the same time as we launch it in the domestic markets. Now, in terms of our smart cockpit, right now we are doing everything in house and we already dedicated a large team of R&D people in our last year in this regard, and in the coming year, we're going to build an even bigger team that focus on the R&D of smart cockpit. Usually it will take maybe a longer time, such as 12 months, to build a good, solid technological foundation that allow us to really apply it in all of our products and allow us to have a good foundation to expand overseas. But once that foundation is built, we believe that in the future, the development is going to be very impressive in terms of the speed of expansion, the reduction of cost, and also the core technological and the high quality, the technological foundation and the quality of our smart cockpit products. In the future, our overall strategy is that we are going to be a very powerful platform that are able to launch a very rich product line, that has a very solid autonomous driving capability. Also, we are going to have a very strong and powerful sales and marketing team that supports our overseas market expansion in the future. Thank you. Thank you. I don't have further question. [Non-English content] Your next question comes from Paul Gong of UBS. Your line is open. Hi, Xiaopeng He. Thanks for taking my question. My first question is regarding on the R&D headcount. I recall during the IPO you had like 1,500 R&D people, roughly one third on the autonomous driving. Now you have more financial resources than ever, and I think Xiaopeng also mentioned you are going to increase R&D significantly this year. Do you have any target of the headcount for the R&D heading towards later of this year? [Non-English content] [Non-English content] Indeed, we plan to greatly increase the headcounts in not only the R&D, but also our sales and service teams as well. By the end of this year, we forecast that the R&D team will double in its size. We're gonna also increase the R&D people that will be surrounded around our ecosystem as well. Thank you. [Non-English content] L et me translate my question. The second question is regarding the monetization of your autonomous driving. Given the price gap between the XPILOT 3.5 and 3.0, the penetration is just 20% so far for P7 on the XPILOT 3.0. In view you have spent fixed costs on the R&D of the software, and is it worthy for you to consider to narrow down the price gap between the 2.5 and 3.0, and try to monetize less in the near term but harvest more data to feed into the software and further improve that? [Non-English content] Actually, we don't have any current plans to shorten or narrow the price gap between different versions of XPILOT software offerings, because we are dedicating our R&D efforts into the core AD technological development. we believe that in the future, we're only going to have newer and newer or higher and higher versions of XPILOT. in the future, older versions or lower versions of XPILOTs will be removed from our product portfolio. we believe that as we advance into the exploration into higher level of AD technologies, actually, not only will us be able to upgrade our payment fee for higher level softwares, but also across the ecosystem, we are going to have so many opportunities across different scenarios that allow us to really provide better experience for our customers and also a lot of monetization opportunities in the future. Thank you. Thank you very much. [Non-English content] As there are no further questions, now I'd like to turn the call back over to the company for closing remarks. Thank you once again for joining us today. If you have any further questions, please feel free to contact us. Thank you. Thank you, everyone. This concludes- Thank you. ...today's conference call. You may now disconnect your line. Thank you.