Hello, ladies and gentlemen. Thank you for standing by for the fourth quarter and fiscal year 2021 earnings conference call for XPeng Inc. At this time, all participants are in a listen-only mode. After 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. Alex Xie, Head of Investor Relations of the company. Please go ahead, Alex. Thank you. Hello, everyone, and welcome to XPeng's fourth quarter and fiscal year 2021 earnings conference call. Our financial and operating results were issued via news wire services earlier today and are available online. You can also view the earnings press release by visiting the IR section of our website at ir.xiaopeng.com. Participants on today's call from our management will include Co-founder, Chairman, and CEO, Mr. He Xiaopeng; Vice Chairman and President, Dr. Brian Gu; Vice President of Finance, Mr. Dennis Lu; Vice President of Corporate Finance and Investments, Mr. Charles Zhang; and myself. Management will begin with prepared remarks, and the call will conclude with a Q&A session. A webcast replay of this conference call will be available on the IR section of our website. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and 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 U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that XPeng's earnings press release and this conference call includes 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. He Xiaopeng. Please go ahead. Hi, everyone. We closed 2021 with another record quarter of deliveries. We delivered 41,751 units in the fourth quarter alone, growing 222% year-over-year. Our total deliveries for the full year of 2021 increased by 263% compared with 2020 and reached 98,155 units, making us the top-ranked emerging EV maker in China. Our 2021 full year revenue exceeded CNY 20 billion. Heading into 2022, we are experiencing even higher demand for our products, which continue to outpace our production. To expedite delivery of large volume of order backlog carried over from 2021 and our newly acquired orders early this year, we completed technology upgrades of our Zhaoqing plant during scheduled downtime over the Chinese New Year holiday. By adjusting our sales and delivery schedules, new orders that came in late February and the first half of March picked up quickly and have returned to the same robust level as the peak season in last December. Starting from March 21, we raised the prices across our product lineups by CNY 10,000-CNY 20,000 each in order to pass through the rise in cost of batteries and raw materials. Against a backdrop of higher oil prices, driving electric vehicles typically brings increasing cost advantages over ICE vehicles, allowing for greater growth opportunities in the mid to high-end BEV market, which is the target segment for our smart EVs. This market also feature a vast array of consumers who attach more importance to EV quality and technologies. Therefore, 2022 will be a crucial year for each EV maker to validate their product's competitiveness. Looking ahead, as we pursue rapid technology and product iterations, we'll continue to strengthen the overall competitiveness of our products. I'm confident that our sales performance will continue to lead the industry. Even though we experienced some hiccups in terms of our sales deliveries in certain areas of China, but because of our technology upgrade in our Zhaoqing plant as well as our newly acquired large volume of orders, we expect to welcome in a new level of large orders in March, which will be similar to our peak level last year. That will help us definitely to enhance our market share and maintain our leadership position. Our confidence about the sales volume potential of our core EV products has extended into 2022. We delivered over 60,000 P7s in 2021, placing it in the top three class B BEVs and above by sales volume, making it an indisputable blockbuster model and setting P7 as a new benchmark smart EV in China. With the buildup of P7's production capacity and reputation, one of our goals in 2022 is to exceed 10,000 P7 deliveries in a single month. We officially commenced mass deliveries of our P5 family sedan model in the fourth quarter of 2021, delivering close to 8,000 units in its initial quarter debut. With supply chain improvement and our City NGP launch, we can expect a more consistent ramp up in sales volume of the P5. As supply chain constraints ease off in the coming months, I'm confident the P5's monthly sales volume will begin to approach that of the P7 in the second half of the year. Next EV model in line for us is our flagship SUV model, the G9. Its PT production vehicle has successfully rolled off the production line, and we are on track to officially launch the G9 in the third quarter. The G9 represents the most advanced technology XPeng has ever developed, building on years of in-house developed software and core hardware. Consequently, the performance of our G9 is head and shoulders above popular SUV models in the same category. I firmly believe the G9 will become a blockbuster model in the medium to large size smart electric SUV market. Furthermore, we plan to launch the first production model built on our two newly established smart EV platforms respectively in 2023. These two new platforms, comprising a platform tailored for C class vehicles and the other for B class vehicles, will inherit and further advance XPeng's robust capabilities in aesthetic design, electrification, and smart technology, thus strengthening our product portfolio's competitive advantages. In addition, as we strive to make our platforms more scalable by employing more highly integrated design and state-of-the-art manufacturing processes such as ultra-large integrated die casting technology, the new platforms will also enact powerful cost control abilities, as well as help us address a broader customer base in the mid to high-end market segments, which have tremendous growth potential. 分享关于智能化的一些进展。在四季度交付的P7跟P5中间，XPILOT 3.0的软件渗透率接近20%。当前这个以P5为主要使用XPILOT 3.5的核心功能城市NGP研发进展顺利。我们看到测试的版本正在快速迭代，每一个版本的安全性跟体验都在提升。我们计划在今年的二季度完成城市NGP的技术开发。那么当在获得城市高精地图的相关审批后，我们将分批逐步的支持这个各个城市NGP的这个相关的城市数量来进行OTA。我们感到非常兴奋的是，基于全新架构的XPILOT 3.5，在城市的场景的表现远超我们最开始的预期。在P5的量产车上，我们现在城市NGP的每百公里接管次数已经开始接近了高速NGP。综合体验我们正在对标中国国内头部的robotaxi公司，我们已经看到在相当方面已经达到一致，甚至在部分方面已经赶超。 Next, I would like to share some updates on R&D of our smart EV technologies. For our P7 and P5 models delivered in the fourth quarter, the attach rate of the XPILOT 3.0 software was close to 20%. Currently, the progress on the R&D of our city NGP, the key function of XPILOT 3.0, which is mainly deployed on P5, is well advanced. Its beta version is undergoing a fast iteration process, making continuous improvement in safety and user experience. We also plan to complete the development of our city NGP in second quarter of this year and plan to roll out in cities by batches once we receive the approval of the city HD map. The XPILOT 3.5, that is built on our next generation technology architecture, has presented much higher than expected performance in the city driving scenarios. We are extremely proud of this. Notably, among our mass-produced P5s, the number of driver interventions per 100 km for City NGP is approaching that of Highway NGP. The level of its overall user experience can be benchmarked against domestic top robotaxi players. In some respects, we already have caught up and even exceeded those companies' performances. 那么基于XPILOT 3.5的全新架构体系跟数据闭环的基础上，我们计划在2023年正式推出XPILOT 4.0，实现高速和城市内全场景的智能辅助驾驶，并且逐步在这个基础上统一新车型的智能辅助驾驶硬件和软件平台。我们计划在2023年内，至少有四款车型，那么包括现车——包含新车跟现有车型的改款车，可以支持XPILOT 4.0。那么借此我们相信，相比行业内其他量产的智能辅助驾驶系统，4.0会有明显的技术上的代差，这意味着在保障高度安全的前提下，XPILOT 4.0会具备更全面的使用场景，更广泛的地域覆盖，以及更好的交互跟驾乘体验，并且我们要把它的成本给控好。我们相信XPILOT 4.0将会普及高阶智能辅助驾驶，推动整个汽车交通从手动驾驶到一个新的时代，也就是人机共驾时代的到来。在那个时候，XPILOT 4.0的软件渗透率相比现在的渗透率，我们认为会有明显的提高。 Given the underlying next generation technology architecture of our XPILOT 3.5 and our closed loop of data, we plan to officially launch the XPILOT 4.0 in 2023 to deliver advanced driving assistance experiences spanning full scenarios of both highways and city roads. Simultaneously, we plan to progressively converge our autonomous driving hardware and software platform that enables advanced driving assistance systems for our future vehicle models. There will be at least 4 models, including both new models and facelift versions of existing models, to support the XPILOT 4.0 in 2023. With that, our XPILOT 4.0 will boast a clear next generation leap against other mass-produced advanced driver assistance systems. Simply put, under the premise of offering superior safety, the XPILOT 4.0 will feature a more comprehensive set of use scenarios, even wider geographical coverage, and a better human vehicle interface and in-vehicle experience for both drivers and passengers. In addition to that, we will control the cost of that production. We believe that our XPILOT 4.0 has the potential to spread high-level advanced driver assistance system to an even broader customer base, accelerating the transformation from human driving to the era of advanced driver-assisted driving. When this becomes reality in the future, the attach rate of the XPILOT software will naturally be significantly higher than its current level. 我们会坚持软件全栈自研，以及在智能系统跟动力系统的平台化技术。通过这些系统的平台，我们将推动我们在动力系统、制造工艺以及整个BOM的成本体系上的巨大变异。我相信通过这场升级跟变革，我们在新车型上的毛利率，包括G9以及公司整体的毛利率将会有结构性的改变。我们中长期的目标是将公司的整体毛利率提高到，提升到25%以上。与此同时，我们将会坚持我们的创业精神跟经营思维，不断提升运营效率。我相信，在规模效应经营能力的提高下，我们的过销费用率将会持续地下降。 We will continue to advance and improve product performance. Also, we will continue to be committed to our in-house full stack software development and platform architecture approach to develop and upgrade our intelligent systems, and powertrain systems for smart EVs. Applying a platform architecture approach to our system management will propel innovations in our powertrain manufacturing techniques and processes, as well as a BOM cost structure. I have confidence in our ability to achieve structural improvement of gross margin for our new models, including G9, and ultimately improve overall gross margin. Our medium and long term goal is to increase the level of our overall gross margin above 25%. At the same time, we'll remain dedicated to our vision and execute on our founding strategy and operational literacy to continually boost operational efficiency. Going forward, as we achieve economies of scale while improving operating leverage, I believe our operating expense ratio will continue to trend downward. 下面我来介绍一下我们在战略布局上的一些进展和规划。 With that overview, I would like to walk you through a few of our strategic initiatives and expectations moving forward. 小鹏的销售和服务网络继续扩张。截止到2021年年末，357个销售店覆盖了129个城市，其中有209个直营店，148个授权店。在2021年，我们前瞻性地布局了渠道下沉的策略，以把握非一线城市的爆发的需求跟增长机遇。那么到去年的年底，我们在一线城市以外的销售店占了，已经接近了80%，那么他们基本上都是在去年的年底或者下半年布局。在网络迅速发展的同时，2021年单店的月销量在每个季度都有显著的进步，这反映了我们销售体系整体能力跟效率的加强。那么在2022年，我们会继续完善销售网络的布局跟提升店效。 We've rapidly expanded our sales and services network. As of the end of 2021, XPeng's physical sales network comprised 357 stores across 129 cities, of which 209 were directly operated by us and 148 were franchise stores. In particular, during 2021, we strategically increased our investment in sales channels in lower tier areas in order to tap into pent-up demand and capture the great growth potential we see in non-Tier one cities. As a result, we closed the year with our non-Tier one sales stores accounting for close to 80% of total XPeng stores, and most of those performance and sales were achieved during the second half of the year. While we drove rapid network expansion throughout 2021, our monthly single store sales increased substantially on a sequential order basis, reflecting our sales model capability to make systemic enhancement as well as sustain efficiency improvement. For 2022, we'll continue to strengthen our sales network expansion and enhance same store performance. 那么在充电网络布局方面，覆盖更广、体验更好的小鹏超充已经成为小鹏汽车当前的重要竞争优势。那么截止到2022年1月17日，小鹏汽车的品牌充电站已经达到813座，覆盖全国337个城市。那么从2022年下半年开始，我们将部署下一代高功率超充，进一步大大缩短用户的充电时间。我们同时也会加强在高速公路沿线的超充电站的部署，以更好地支持小鹏用户在长途出行的需求。 Regarding our supercharging network, XPeng branded supercharging facilities featuring wide coverage and a better user experience have already become a critical factor in XPeng's competitive edge. As of January 17, 2022, the number of XPeng branded supercharging stations increased to 813, covering 337 cities nationwide. Beginning in the second half of 2022, we'll deploy next generation high capacity supercharging to further shorten users charging sessions significantly. We also plan to accentuate efforts in deploying supercharging stations alongside high speed expressways to bring users better, more secure long distance traveling experiences with XPeng's vehicles. 在海外市场的拓展方面，2022年2月份，我们宣布与欧洲头部经销商集团达成了战略合作协议，借助海外经销商体系的成熟经验，帮助小鹏汽车进行海外市场的布局。我们在欧洲的首个直营的体验店已经在斯德哥尔摩正式开业。我们将在海外采用和中国国内类似的直营加授权的创新零售模式来夯实欧洲乃至全球的销售和服务。 Along with these upgrades, we are actively progressing our overseas expansion initiatives. To this end, we announced in February 2022 that we had established partnerships with top-tier European dealers. By leveraging the well-established market presence of respected overseas dealers, we strive to build our international business development capabilities and have established the first branded European retail experience store for our smart EVs in Stockholm, Sweden. We also plan to adopt a novel direct-plus franchise retail model, which is what we are doing right now in China to expand our sales and service network in Europe. 在资本市场方面，二月九日，小鹏汽车正式纳入了港股通，成为首个进入港股通的造车新势力。我们非常高兴能够有更多的内地投资者一起分享智能电动汽车行业的增长机会。在三月七日，小鹏汽车作为恒生科技指数智能化主题的代表公司，正式成为恒生科技指数的三十只成分股之一。 On February 9 of this year, XPeng were included in the Shenzhen and Shanghai-Hong Kong Stock Connect programs. We officially became the first emerging EV maker stock to be accessible for direct investment by qualified investors in mainland China. We're delighted to share the growth opportunities in the smart EV industry with broader investor base from our home country. Shortly thereafter, on March 7, XPeng was added to the Hang Seng TECH Index among 30 constituent stocks as one of representative stocks for the autonomous tech theme. 回顾2021年，我们面临了行业性的芯片和电芯短缺的挑战。在此我特别要感谢我们的优秀供应商对我们的鼎力支持。为了应对各种挑战，我们在去年开发和验证了数百个替代的供应方案，以保障供应链的稳定。在2022年，我相信行业还会面临芯片短缺跟电池原材料上涨的挑战。 成本上升的挑战。但是我相信从中期和长期来看，这些挑战只是智能电动汽车在以超速度的发展，颠覆这个燃油车过程中间的一个暂时性的问题，同时对小鹏汽车是一种更好的磨练。我相信通过我们跟我们的供应商的共同努力，以及我们快速开发替代供应方案的能力，最终我们会克服这些挑战，并且取得更好的成绩。 Looking back on 2021, we have faced challenges stemming from industry-wide semiconductor and battery cell shortages. We would like to express our sincerest gratitude to our excellent supply partners for their great support for XPeng. Amid the challenges, we developed and qualified hundreds of alternative supply solutions to safeguard and stabilize our supply chain. Entering 2022, the ongoing chip shortage and surge in price for raw battery materials continues to present a challenge for the whole industry. Nevertheless, these near-term obstacles cannot stop the long-term journey we are on, where smart EVs are accelerating the disruption of ICE vehicles at an unprecedented speed. I believe this is going to be a good experience for us to continue to enhance our capabilities. I believe our ability to swiftly develop alternative supply solutions, coupled with concerted efforts with our suppliers, will help us overcome these challenges. 虽然在第一季度因为疫情的反复，但是我们仍然克服了供应链的挑战、季节性的因素，以及疫情的各种挑战。我们相预期，在2022年第一季度，我们的总交付数量约在3.35万到3.4万辆，收入预计为人民币72到73亿之间。 As we have been striving to navigate market dynamics amid obstacles in the supply chain, the impact of COVID-19's re-recurrence, and the seasonality factors, we expect our smart EV deliveries to reach approximately 33,500-34,000 in the first quarter of 2022, and our total revenue to be between approximately CNY 7.2 billion-CNY 7.3 billion. 谢谢大家。接下来请我们财务VP Dennis为大家介绍一下小鹏汽车第四季度的财务表现。 Thank you, everyone. With that, I will now turn the call over to our VP of Finance, Mr. Dennis Lu, to discuss our financial performance for the fourth quarter of 2021. Thank you, Xiaopeng, and hello, everyone. Now, I would like to provide a brief overview of our financial results for the first quarter of 2021. I will reference RMB only in my discussion today unless otherwise stated. Our total revenues were CNY 8.6 billion for the first quarter of 2021, an increase of 200% year-over-year, and an increase of 50% quarter-over-quarter. Revenue from vehicle sales was CNY 8.2 billion for the first quarter of 2021, an increase of 199% year-over-year, and an increase of 50% from the last quarter, mainly attributable to high vehicle deliveries, especially for the P7 and P5. Our gross margin was 12% for the first quarter of 2021, compared with 7.2% for the same period of 2020, and 14.4% for the last quarter. Full year gross margin reached 12.5%, an increase of 7.9 percentage points year-over-year. Vehicle margin reached 10.9% for the first quarter of 2021, compared with 6.8% for the same period 2020, and 13.6% for the last quarter. The quarter-over-quarter margin reduction was primarily attributable to product mix changes. R&D expenses were CNY 1.5 billion for the first quarter of 2021, an increase of 216% year-over-year, and an increase of 14.8% quarter-over-quarter. Mainly due to one, the increase in employee compensation as we grew and expanded research and development staff. Two, high expenses relating to the development of new vehicles to support future growth. SG&A expenses were CNY 2 billion for the first quarter of 2021, an increase of 120% year-over-year, and an increase of 31% quarter-over-quarter. The year-over-year increase was mainly due to one, higher marketing and advertising expenses to support vehicle sales. Two, the expansion of our sales network and associated personnel costs and commissions for franchise store sales. The quarter-over-quarter increase was mainly driven by the expansion of our sales network and more sales commission in line with the higher vehicle sales. As a result of the foregoing, loss from operations was CNY 2.4 billion for the first quarter of 2021, compared with CNY 1.1 billion for the same period of 2020, and CNY 1.8 billion for the last quarter. Fair value gain on long-term investments was CNY 0.6 billion for the first quarter of 2021, reflecting the fair value assessment on our assessment on HT Aero or Huitian after its Series A funding. As of December 31, 2021, we invested approximately CNY 0.6 billion and own approximately 18.8% of the equity interest in Huitian. Net loss was CNY 1.3 billion for the first quarter, compared with CNY 0.8 billion for the same period a year ago, and CNY 1.6 billion for the last quarter. As of December 31, 2021, our company had cash and cash equivalents, restricted cash, short-term deposits, short-term investment, long-term deposits, in total of CNY 43.5 billion. We achieved a positive operating cash flow in the second half of 2021. In the first quarter of 2021, our operating cash inflow was CNY 1.3 billion. To be mindful of the length of our earnings call, I will encourage listeners to refer to our earnings press release for the 2021 full year financial results and further details. This concludes our prepared remarks. We will now open the call to questions. Operator, please go ahead. 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. Please press star one to ask a question. Your first question comes from the line of Tim Hsiao. Guanzhong，你好。非常感谢接受我的问题。也非常恭喜第一季度能够维持非常强劲的一个交付。那我这边两个问题。第一个问题是有关于提价的一部分，因为小鹏汽车其实是市场里面较早提价的一个电动车企业。那是否能够请管理层分享一下我们提价的逻辑，以及对应一些原材料和零部件今年涨价的一个假设。那这一次的提价是否反映材料成本的定价，还是反映了我们对未来几个季度可能供应链这边持续提价的一个预期？好，这是我第一个问题。 So my first question is about the price hike, because XPeng is one of the early movers announcing to raise the prices. Could we get a rough sense about how the company laid a foundation of CNY 10,000-CNY 20,000, or 5%-9% price hikes? What kind of cost inflation in batteries, raw material chips, et cetera, has been driving pricing? Is the price increase just the right amount to cover the stock contract or also reflect expense adjustment of more price hikes in the supply chain later this year? Xie xie. 谢谢这个问题，我是Dennis Lu。我先回答第一个问题。 Let me respond to your questions regarding the price realignment. Actually, we increase our price at about CNY 10,000-CNY 20,000 for the whole car lines in March 21st. This reflects the projected components, especially on the battery cost increase. We haven't finalized the battery price negotiation with our suppliers. According to the trend and also the components, we anticipate we will have the cost increase in the raw material as well as the battery. We technically increase the price cover the cost increase. Lastly, the main driver of the price increase to basically cover the potential cost increase for our component costs. 好的，谢谢Dennis。那我第二个问题是有关于XPILOT的选装率，刚才小鹏总你提到了，就是目前选装率可能是在10%左右。好，想要请问一下，就是当然一部分是因为可能比较低配置的车型，好，过去一个季度销售比较多，那未来来看的话，我们大概预期什么样的一个选装率，可能在未来一到两年可以达到，那我们什么时候可以看到可能超过50%的一个选装率。 My second question is about XPILOT take rate. Because I think during the presentation, the chairman has mentioned about take rate of XPILOT, it seems still relatively low. I just think it's just due mainly to more low spec models we saw during the past quarter. When do we expect more meaningful increase in adoption rate of XPILOT? And what would be more ideal take rate in your view in next one to two years? Is it likely to top 50%? 抱歉，因为我们的信号不是特别清晰。我大概只能听清楚您的话题，就是说，我们当前XPILOT三点的交付的比例取决于，主要依赖于我们的芯片的供应。所以当我们芯片供应量更充分的时候，实际上我们XPILOT渗透率会更高。我实际上更相信XPILOT 4.0的渗透率。因为从我们的数据来看，实际上用户一旦使用XPILOT习惯了之后，它的渗透率非常的高。那么在这样的情况下，在城市的NGP，特别是当点对点，就是说从你的家到你的公司，或者从你的家到你想去到的目的地，都能够绝大部分情况都能够使用XPILOT的时候，这个时候使用的渗透率会非常的高。我实际上对XPILOT 4.0认为渗透率，我认为在销售车型里面可能会高过，远高过50%，但是这个最终需要数据来表现。 I'm sorry. On my end, the connection is not perfect, but I get the gist of your question. Here is my response. Now, in regards to the attach rate of XPILOT 3.0, actually it all depends on the chip supply. When the chip supply recovers to the normal level, we believe that the attach rate will increase as well. I actually have more confidence in the attach rate improvement of XPILOT 4.0, because according to our data, our users habits and their satisfaction rate of using our XPILOT is actually very high, as they get used to actually having the navigation assistance, I mean with the help of our City NGP function in their daily life, from one destination to another, for example, from their home to their offices, or from their offices to a shopping mall, etcetera, that definitely will give them the trend of keeping the habit of using this sort of assistance from the XPILOT. By that time, the attach rate of our XPILOT will be even higher than the current level. In my own understanding, actually the XPILOT 4.0's attach rate will exceed 50%. Again, that actually will depend on the future market statistic, and we'll see. 谢谢小鹏总。 Your next question comes from the line of Jeff Chung with Citi. 小鹏总、各位管理层好，我是花旗的Jeff。那我想首先第一个问题，我想问一问有关这个量和利润率，就是因为我们今年知道有很多的干扰嘛，那最差最差的情况，我们可不可以把一季度的三万四千台的这个销量目标乘以四，是我们全年的最差的一个销量目标。我可以去这么想问题吧？这是第一。第二的话呢，我想问就是说刚才我们说了P7呢，单月是挑战一万台，那这个会是在什么时候啊？是年底十二月吗？还是可能六七月份有可能是这样呢？那如果是P7有一个销量目标，那我们是不是G9也应该有一个销量目标呢？还有呢，就是可不可以也说一下G9和P7的毛利率，会是大概设计在什么样的水平？那如果G9的这个销量是远远高于P... G9的毛利率远远高于P7的毛利率的话，我们是不是应该把这些芯片优先给G9，那样P7的话还可以有10,000台一个月吗？大概这是我的一个问题，是有关量的，和这个毛利率的. My first question is about the worst case scenario this year's full year sales volume and production capacity, if we assume a further disruptions in chip shortages. Second question is about the G9 and P7 gross margins. Is it necessary for us to also set a monthly sales target for G9 going forward? 谢谢。 Jeff, this is Brian. Let me answer the question for you. Can you hear me? First of all, we obviously, as our policy don't give guidance on the sales number as well as individual model numbers. I would say that obviously this quarter represents you know a quarter that's in a low season as well as has faced you know disruption from COVID measures in China. I would probably you know consider it not appropriate base for extrapolating for the full year. We're confident with our new model launch as well as further market momentum, the sales numbers should be higher than the first quarter. That's the first answer to your question. Second question is that on G9 we do have high hopes this will be a blockbuster in its class which is the premium SUV class. You could also find benchmark models in that class. We think they should be one of the top players in that category. I think in that vein I think they should you know approach should like be the P7 level. The third question is whether the P7 and G9 is interchangeable from a supply chain perspective. I think you know we hope by the time that G9 is started a volume delivery towards the second half or the fourth quarter the supply chain issue will get alleviated. I think right now, both models are representing high gross margin products for us in the high teens%. I think for us, those are models that we will, you know, obviously make sure that it has adequate chip suppliers for production. It is about the order backlog. After we raised the MSRP price, we saw a significant surge in new orders. Roughly speaking, right now, the waiting time to get a car ranging from 16-20 months, which implies around 4-5 undelivered order backlog. I just want to clarify on these numbers. Thank you. I think there is a mix of good and bad news with what's happening right now. Obviously, the bad news is the resurgence and recurrence of the pandemic, which really affect our supply chain, especially in cities such as Shanghai, because this is really the headquarters of all of the key suppliers of our company. The good side of the story is that we are actually improving our overall capability in enhancing our battery cell supply. Obviously there's a lot of interruption in the market and also there's a lot of risk. We will do our best and be fully committed to speed up the delivery time-lead time. Overall, I believe that the actual outcome would be better than expected. Next question, please. Your next question comes from the line of Ming Lee with Bank of America. My second question is regarding the new platform and your capacity breakdown for your third plant in the future. Thank you. That's my question. In response to your first question. First of all, we are very different from other new energy vehicle makers in the sense that we actually collaborated with multiple suppliers of batteries. In the past, what we experienced is that there has been a lot of demand for LFP batteries, and the market demand for LFP actually has surpassed our suppliers' capacity for battery supply. So that's why we experienced a lot of challenges in the supply chain. Going forward, we actually have been able to gradually alleviate this problem, and we are very confident that we can continue to improve the situation. For the second half of this year and for the coming year, we are very confident that the overall supply chain shortages can be relieved to a certain extent. Then in response to your second question, basically, we differentiate the concept of planned capacity and the actual deliveries, or the actual carried out or executed capacity. We do have planned capacity for each single plant of ours. Through multiple shifts of working, we can actually maximize those capacity. What we are doing right now is that we are trying to coordinate different plants in producing different models on different platforms because we haven't been able to. We're not in a position to announce the exact number in terms of the capacity of each single plant yet. I can just give you a rough idea that the single plant capacity will surpass 500,000. Next question, please. Your next question comes from the line of Nick Lai with JP Morgan. Hi, Nick. This is Dennis. Let me respond to your first question. Yeah, you're right. We actually have about CNY 43 billion cash in hand as of the end of last year. Our plan actually, as I mentioned, we actually achieved operating cash flow breakeven or positive cash inflow in the second half of the last year. Our plan is to continue to improve the efficiency and also to improve the capital spending. We are projecting or we are trying very hard to continue the positive breakeven operating cash flow this year. Other than that, we also have some spending on the CapEx. For example, we are continuing to have new products. We will have the facility and equipment for the new product, and we also have the investment in terms of the capacity, the new plant capacity. That's our plan for the usage of our cash in hand. Operationally, we will try to be break-even positive and CapEx will continue to improve the efficiency of spending while supporting the product development and also to support the capacity expansion for this year. OK，我第二个简单的问题就是在上一次的业绩公告的时候有讲到这个self- driving taxi，就是有这种，说到taxi吧，在这个有没有一些新的这个进展或想法，包括跟这些合作方，或者说这个推出的时间点，刚刚何总有提到说2024年是不是要全面推出Level 4，那我们可以一起说这个taxi的initiative是在这个今年2024年之后会开始commercialize，那么在今年下半年会有比较明显的进展。 That second question really about the quick update on robotaxi initiative that mentioned at previous conference call. Thank you. 我是小鹏，这个我们计划是在今年的四季度，在G9的上面去开展这个robotaxi的这个testing。我们并没有之前对外说在2024年会有一个Level 4的一个这个计划。从时间轴角度来看，我们更认为是在2026年的这个对于这个，这个往无人驾驶方向走，我们在robotaxi上会继续我们现在的这个方针，我们会先探索，然后去看到，通过数据的闭环，通过政策的管控来看看整体的这个进展，然后再来一起看它的商业化逻辑。但是从我们今天的XPILOT 3.5的实际的测试结果和我们XPILOT 4.0的研发进展来看，我们实际上对最终的这种无人驾驶和无人驾驶的时间节奏跟效果，我们现在实际上是持更乐观的态度，我们认为可能会更早地到来。谢谢。 Now we actually plan to test the robotaxi sort of capability and performance by Q4 this year on G9. We didn't actually announce or make any statement regarding achieving Level 4 by 2024. Our estimate is that we can actually achieve or work towards the goal of autonomous driving by 2026. Now in terms of the exploration in the robotaxi model, right now we need to do a lot more testing to be able to find out you know the business logic behind robotaxi and to gather more data from the actual execution of the capability and also to understand better the regulatory environment in this regard. Currently with our observations in the XPILOT development as well as the gathering of the data, we are very confident and very excited about the future of robotaxi, and we estimate that we can actually achieve a high level of autonomous driving sooner than expected. 好，谢谢。 Your next question comes from the line of Bin Wang with Credit Suisse. 谢谢各位领导，我的问题是关于新产品的。我们刚才有说过了，明年的两个新平台会推出一个新产品，想问问看是说也有一个新产品呢，还是说每个平台分别推出一个产品，那么就两个产品了。那么因为这个地方呢，之前领导也说过，在明年的时候我们会有四个产品可以做城市NGP嘛。那我想了一下，P5、P7、G9，还有明年的产品加在一起应该是有四个。目前的新硬件都只会有一个新产品。所以想把这个事情绕一下，大概我们会有几个新产品在明年，到底是一个还是两个？谢谢。 My question is about the new product for 2023. Because we actually said that we have some products from the new technology platform, so does it mean one product from each platform, or actually just one product for two platforms? Meanwhile, you just mentioned there are four products will be available for the City NGP. Does it mean that you can upgrade current P5, P7 and G9 and upcoming new product will be eligible for the upcoming City NGP with the hardware upgrade? Thank you. 我是小鹏。明年我们会有两个全新的产品，它们分别在两个不同的平台上面去产生，这两个平台都会支持XPILOT 4.0。谢谢。 Hi, this is Xiaopeng. Next year we plan to launch two new products on two platforms and both of them will support the deployment of XPILOT 4.0. Thank you. Great, thank you. Your next question comes from the line of Jing Chang with CICC. 小鹏总好，管理层你们好，我有两个问题。第一个问题想问一下关于G9，能不能可以给我们透露一些更多关于G9的细节，比如说这款车轴距大概是多少，以及会不会有一个六座版或者七座版的车。因为前一阵子看到网上也有新闻传出来说这个车可能只有五座版，希望管理层能够帮我们澄清一下。第二个问题想问一下关于我们的这个资本开支，那广州的工厂以及这个武汉的工厂，因为看到年报里头有披露这两个工厂现在的这样的一个贷款的授信额度，一个是11个亿，一个是30个亿。想问一下这两个工厂大概他们的这个CapEx，总共的这样一个投入分别是多少？ My two questions are about G9 and CapEx. The first question is: could you please provide more details about G9, and what's the wheelbase of G9? Will there be a six seat version or a seven seat version? My second question is about CapEx. What's the CapEx budget on Guangzhou and Wuhan factory respectively? What's the progress of these two factories? Thank you. 谢谢。我是小鹏。第一个问题我来回答这个，其实我可以现在明确的是，没有六座跟七座，是五座的中大型的SUV。那么关于具体的轴距以及等相关的类似的细节，我们会在后面的时间会正式对外。这是我们关于G9的一些相关的信息，谢谢。那么请Dennis来讲，回复一下第二个问题。 Hi, this is Xiaopeng. Let me respond to your first question. In terms of G9, what I can announce right now is G9 is going to be a five-seat, medium to large size SUV, it won't be a six-seater or seven-seater. In terms of the details such as wheelbase, et cetera, we will give you more details in our official announcement when we have the information. Thank you. Okay, the second question, this is Dennis, let me handle this. In our Guangzhou plant, total capital expenditure is somewhere around CNY 2.5 billion-CNY 3 billion, and among that the construction and the land actually is funded by the government. The government provide the loan for to us, yeah, free interest. In terms of facility, actually the government is funding 50% of the interest cost, so we will pay 50% of the interest cost in terms of the bank loan. The plan is in terms of construction has been completed, and now we are doing you know the equipment and facility for the new plan, new production line. This is to support the new vehicle production. In terms of Wuhan plant, Wuhan plant the land is bigger than the Guangzhou plant, so the total capital expenditure, the original project was about CNY 4 billion, about slightly higher than CNY 4 billion. Among that the government will fund the interest of the around CNY 3 billion, that will be the interest will be funded by the government, and the rest will be funded by XPeng itself. The plan is under construction, including the building and also the facility, and that actually to support the new product production as we mentioned for next year. That's the status of the current construction and also the capital spending of the plan. Next question please. Your final question comes from the line of Jing Chang with CICC. 小鹏的各位领导，大家好，我这边的话主要跟进两个问题。第一个问题还是关于电池的供应商，因为我们也是采取了多供应商这样的一个模式，想看一下的话，就目前可能经过年初的这一波谈判的进程，这个多供应商的形式对我们有哪些可能积极的，主要是可能哪些积极的一个效果呢？主要是对于可能这个供应链保供，包括在采购成本的一个下降这个方面，是否能够看到一个比较积极的效果。 My first question is about our battery supplier method this year, and what are the positive or some negative effects of our multiple supplier methods, especially on our supply and maintenance and also our purchase cost. 然后第二个问题是关于今年的大概整体的一个执行的情况，基于现在的可能目前的成本的情况，以及我们的产品的价格涨价的情况，应该怎么预期今年的一个毛利率，是否还是会有比较保守，就相对去年一个更保守的一个预期。然后另外就是在费率端，我们也能看到，去年2021年的话，研发和销管体现出了一个还比较强的一个规模效应，那今年的话是不是在费率端的话也能够看到一定程度的下降，然后体现一个更强的规模效应。 My second question is about the gross profit margin and also expense ratios guidance this year. Considering the current cost and our product price increase, how can you expect our gross profit margin this year? Also about the expense ratio, will our expectation of our R&D and ratios reflect a stronger scale effect? 好，你好，我是小鹏，我来回答你第一个问题啊。这个，选择多家电池的合作伙伴，从现在来看，对我们的价值非常的大。我觉得，我简单谈两个价值啊，第一个就是说，在小鹏的汽车体系里面，在我们去年看到的，我们有多款车型大卖，但是我们交付速度非常慢的，那么主要来自于电池的供应不足。例如刚刚所问的磷酸铁锂，像磷酸铁锂电池可以在我们的销售的规模相当大的比例，但是从去年来看，只占了一个非常微小的比例，所以在今年后面，我们相信经过我们的沟通，我们会跟我们的合作伙伴极大地增加这些在保供上的一些能力。第二个就是相关成本上啊，这个今年呢整个的材料实际上上涨得非常快，但是我相信快则一个季度，慢则三个季度左右，我相信材料会有一定的变化。那么在这个一到三个季度中间，我们通过跟我们的合作伙伴、电池合作伙伴的这种配合，我们相信我们实际上最终有可能有能力在电池的成本上能够做到更好的控制，所以一个在保供，一个在成本上，我相信都会有更好的效果。谢谢。 Hi, this is Dennis Lu. Let me respond to your first question. Having multiple suppliers for our battery cells definitely gives us a lot of values, mainly in two respects. The first one is to definitely make sure that we have enough supply, and the second is help us to optimize or enhance our cost control capability. Now, for the first benefit, because we have multiple models that definitely are really popular in the market, and we received a lot of orders last year. Due to the supply shortage in batteries, especially in LFP batteries, we were not able to actually fulfill or deliver those orders last year. The actual sales of our models or our products containing LFP batteries was actually a lot smaller than the actual orders that we received. This year, with our concerted effort with our supplier partners, we hope that and we are very confident that we can alleviate the situation this year. The second benefit, which I mentioned earlier, is the cost control capability enhancement. You know, as the raw materials for batteries and for a lot of the core components continue to increase, the whole industry experience a lot of cost increase risk. But because of our multiple supplier partner network and this model, we are able to actually relieve this sort of stress within, I think, one quarters to three quarters time. This year, we will continue to help our suppliers to better control our costs. That's all. Thank you. For the second one, the margin. Firstly, we don't provide the margin guideline for the future. According to the information we have on hand, actually in the first quarter, we use majority of the battery stock which we acquired or we purchased last. The cost increase did not really hit us on the full quarter basis. We anticipate some material cost good news on the battery. And also, we have better product mix. The P7, actually, the mix is higher in quarter four last year. For the second half, because we have increased the price, and then after we deliver those price protection orders, probably starting in late May or June, we will have capability to cover the cost. All in all, we anticipate the quarter one and quarter two margin would be equivalent or even slightly better than the quarter four margin level. For starting from June, we actually the price would reflect the new price which we will be able to cover the cost. More importantly, we have G9, which will be sold in the second half. We anticipate the second half margin will be better than the first half. That's kind of the general assessment for the margin thus far. Thank you. Sure. That's all for our Q&A session. Operator. As there are no further questions, 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 further questions, please feel free to contact XPeng's investor relations through contact information provided on our IR website or The Piacente Group Investor Relations. This concludes today's conference call. You may now disconnect your line. Thank you for your participation.