Hello, ladies and gentlemen. Thank you for standing by for Zeekr Group's fourth quarter and full year 2024 earnings conference call. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. I would now like to turn the call over to your host, Mr. Yuan Jing, the CFO of Zeekr Group. Please go ahead, sir. Thank you very much. Thank you all for joining Zeekr Technology's annual results conference call. First, may I have Mr. An Conghui, CEO of the company, to start the meeting? Thank you. 好的，先生们，各位朋友们，大家好。我是安聪慧，欢迎大家参加极客2024年四季度和年度的议事电话会。 Hello everyone, I'm Andy. Thank you all for joining Zeekr Group's fourth quarter and full year 2024 earnings call. 首先我想感谢我们的用户，感谢我们的员工，我们的合作伙伴，能够让极客从2024年5月上市，短短的数月时间，应该说也交出了一个比较能够好的年度答卷。 First and foremost, I would like to express my gratitude to our users, suppliers, and employees for their unwavering support. Thanks to everyone's efforts, Zeekr Group has delivered its first stellar full year results to the capital market just a few months after our IPO in May 2024. 我们回顾一下2024年，极客科技集团总的销量超过50万台，中国的零售品牌超过28万台，同比增长30%，年度销量创历史新高。极客品牌全年交付超22万台，同比大幅增长87%，也成为了中国豪华车沉淀的年度销量冠军。应该说交付量大幅增长，带动了极客品牌的整体营收和比较充裕的现金流。全年整车的营收超过553亿，含有三电、研发等业务收入，全年总营收达到759亿。四季度是227亿，创单季历史新高。公司的盈利能力也在持续改善。从报表中看到，四季度的整车毛利率达到了17.3，全年是15.6。整个年度里面来看的话，整车的毛利率每季度也不断在走高，也应该说呈现比较好的上升趋势。 Zeekr Group has achieved a total sales of over 500,000 vehicles in 2024. Of the total, the Lynk & Co brand delivered 280,000 units, nearly 30% year-over-year increase, achieving the highest sales in its history. Total annual deliveries for the Zeekr brand surpassed 222,000 vehicles for the full year, a remarkable 87% year-over-year increase, making Zeekr brand the best-selling premium battery electric vehicle brand in China. Thanks to the rapid growth of our sales volume, in the full year 2024, we achieved a vehicle revenue of CNY 55.5 billion and the whole revenue of CNY 75.9 billion. Also, our gross margin considerably grows. In the fourth quarter, our vehicle gross margin achieved 17.3%, while the full year vehicle margin achieved 15.6%. We saw our gross margin for the vehicles also grow quite good. 在极力控股的整个态度宣言的战略指引下，从11月份我们确定整合，我们通过三个月的时间在2月份完成了股权交割，也正式成立了极客科技集团。应该说，站在极客和领克合并以后，已经超过182万的用户。我们在25年的目标是要挑战71万辆的销售目标。我们制定的两年的目标计划，希望通过两年时间的努力，能成为一个年销百万的全球领先的高端豪华新能源汽车集团。同时，我们也通过极客的合并，我们通过产品的研发的协同、制造体系的革新，还有用户运营的升级、海内外渠道的协同等等，我们想采取一系列的举措来进一步地提升我们的整个运营的效率，来发挥规模化的优势，来提升企业的抗风险能力。我们也相信，有充足的信心，通过一系列的战略举措，来持续提升公司的盈利性，也能为我们的股东带来回报。 Under the strategic guidance of Geely Holdings' title declaration, Zeekr and Lynk & Co successfully completed our equity transaction in just three months, officially forming Zeekr Group on February 14, 2025. Building on a global user base of over 1.82 million across both Zeekr and Lynk & Co-Brand, we aim to deliver 710,000 vehicles in 2025. Within two years, we aspire to become the world's leading premium new energy vehicle group, with annual sales of 1 million units. Meanwhile, we are leveraging synchronized product R&D, improved manufacturing system, enhanced user engagement, and integrated domestic and international distribution to drive greater operational efficiency, maximize economies of scale, and strengthen Zeekr Group's resilience against market uncertainties. With these efforts, we are confident in our ability to continuously improve our profitability and enhance our shareholder values. 好的，下面我想花一点点时间对2025年的一些公司的整个规划，如何驱动业务增长，有三个方面。首先就是说，基于两个品牌整合以后，我们有品牌的清晰的定位。我们通过极客品牌要进一步向上，领克品牌向宽的一个战略规划。这样的话，对于整个极客科技集团进一步丰富产品的矩阵，来提升我们产品竞争力。 Next, let me outline our three key strategies for driving sustained growth. First, we will continue to strengthen the Zeekr brand in the premium market to go more upmarket while broadening the Lynk & Co customer base and further expand our product portfolio and enhance product competitiveness. 极客向上，在24年极客的单车售价超过30万元人民币，应该说能够站稳了豪华车的市场，初步站稳了。009平均售价也40多万，成为了应该广深受这些成功人士的喜欢。25年的话，我们也将会推出三款全新的车型，来进一步地开拓豪华车市场。二季度，我们应该就在下个月4月10号左右，我们会发布第二款的列装车007的GT。三季度和四季度各有一款豪华的大型的SUV。这两款中大型和旗舰型的SUV的话，它将会搭载超级电混的技术，其中9X将会在今年4月份在上海首次亮相。 The Zeekr brand, with an average selling price of close to CNY 300,000, continues to solidify its market position in the premium segment. The Zeekr 009 emerged as the best-selling MPV in China, priced above CNY 400,000 in 2024, and has gained significant popularity among business leaders. In 2025, the Zeekr brand will launch three new models to further expand its reach in the premium market. We will release the Zeekr 007 GT, our second shooting brake model in Q2, followed by the Zeekr 9X, our full-size flagship SUV in Q3. Furthermore, we are introducing a large-size premium SUV in Q4. Both premium SUVs will feature advanced super electric hybrid technology. Notably, the Zeekr 9X Grand will make its debut with level three Chen Li Haohan autonomous driving system H9 and make its first appearance at the Shanghai Auto Show in April. 另一方面，领克向宽都有发展。2024年的领克实际上也取得了比较好的成绩。在新能源增长速度很快，新能源的占比超过了58%。平均售价，过去一年领克售价也过了20万。所以在2025年的话，领克将会推出全新的两款车型。一款的话就是SUV，领克的900。我想现在大家应该比较有一定的了解了，因为车现在已经到店，开始进行展出。我们会在预计会在4月底5月初左右正式上市。应该说它也是领克里面的旗舰车型。另一款车型的话，将会搭载另一款是一款中大型的轿车，也是使用的是混合动力EMP，将会在下半年上市。 Meanwhile, the Lynk & Co brand is broadening its customer reach. In 2024, its new energy vehicle segment showed rapid growth with over 58% penetration rate. The average selling price for the Lynk & Co brand reached over CNY 200,000. The Lynk & Co EMP ranked among the top three in the high-end plug-in hybrid segment, with an average selling price exceeding CNY 220,000. As the Lynk & Co brand achieves both price and sales volume growth, its range of powertrain and customer reach continue to expand. In 2025, the Lynk & Co brand will launch two new models. The first one is the Lynk & Co 900, its flagship large six-seater SUV. We will officially launch this product in late April or early May. Many of these show cars have already arrived at our showrooms. It will be the world's first mass-produced vehicle with a very advanced ADAS system and will feature the Chen Li Haohan H7. Additionally, the brand's first EMP mid to large-size sedan will be released in the second half of this year. 第二方面的话，我们现在进入了人工智能的时代。我们会进一步的人工智能来赋能，通过全域的AI赋能提升我们企业的竞争力。极客是在行业内能够拥有在整车架构、电子电器架构、三电、智驾、智仓等产业链的核心技术、全栈自研和软硬件结合的创新能力。在这差异化的技术优势下，我们通过AI的赋能能加速构建技术护城河。 Secondly, we will strategically leverage our full-stack AI capabilities to further enhance our competitive edge. The Zeekr Group is the only company in the industry with full-stack in-house development capability that spans vehicle architecture, electronic and electrical architecture systems, the battery and E-power trains, autonomous driving, and intelligent cockpits, along with superior innovations through the seamless hardware and software integration. With this unique technological advantage, we are well positioned to quickly expand our technological moat through AI empowerment. 在智驾方面，我们确实极客和其他的现在的头部企业在智驾方面起步的晚一点。但是通过我们的努力，我们在3月18号也进行了发布。我们端到端的车位到车位的整个能力在本月已经实现了万人公测，将在下个月来进行全量推送。通过我们努力的话，现在极客原来作为相对比较短板的智驾，我们可以进入了行业第一梯队。 In the field of autonomous driving, we have firmly established ourselves as now the leading player in the industry, admitting that in the first we were late compared to our peers. Last March, on March 18, we held a product launch event, technology launch event to showcase our end-to-end and door-to-door technologies. Last year, our self-developed end-to-end AI-powered large model became the first of its kind to be mass-produced and deployed in vehicles. By the end of this year, we have completed the nationwide rollout of MAP III NZP, ensuring a seamless driving experience on every road across the country. In. 我讲的讲。对。 In February, we also launched a large-scale banner for the door-to-door navigation. We recently unveiled the industry-first full-stack door-to-door navigation system featuring GS and automatic invasive maneuvering and level three autonomous driving technology architecture. 在智舱方面，我们也全栈自研了自己的大模型极客AI OS。我想在今年我们在座舱方面也给用户也可以提供更好的体验。 For the infotainment, we have, based on our full-stack in-house developed AI, Kerr AI large language model, we have launched our Zeekr AI OS. We hope to deliver a very good technology offering to our customers this year. 当然，除此以外的AI我们也会极客的IDD部门成立。所以整个AI将会赋能极客集团的各个业务板块，无论是它可以也可以应用于整个覆盖整个研发供应链、质量、销售、运营等各个领域。 In addition, we have recently established our IDD department for AI development and AI services as a powerful engine for the Zeekr Group, propelling progress across various business segments. In 2024, we deployed AI-driven solutions across a wide range of scenarios, including the R&D supply chain, quality control cells, and operational support. 第三个，我们讲就是25年要加快全球持续的销量的提升。在25年，我们这个目标要海外市场要占整个销量的10%的贡献。在两个品牌合并以后，我们也最大化的发挥协同效应。我们会在欧洲以外的新兴市场成立统一的销售公司，用一个团队来开拓两个品牌的国际市场，并推出适合国际主流市场的新产品。比如说我们今年领克008的EMP，极客的7X，应该这两个车型非常受海外市场的喜欢，今年将会快速推向市场。 Thirdly, we will drive our sustained sales growth through the continued global expansion. In 2025, we aim around 10% of our annual sales targets will come from the international market. To maximize synergies, we will establish a unified sales company after we integrate the two brands in the global markets outside of Europe, with a single team focusing on expanding both brands' international presence. We will also introduce a new product tailored for the mainstream global markets, including the Lynk & Co 08 EMP and the Zeekr 7X. These two products are liked by the global customers. 2025年是极客科技集团成立的元年。我们以建立统一的管理体系为目标，已开启了新一轮的内部管理变革。我相信通过这个管理变革会释放更大的组织的效能，并且大力地推进平台化的技术的共享，规模化的协同降本，持续保障和提升股东的收益。 2025 marks Zeekr Group's inaugural year since its formation. To establish a unified organizational structure, we have embarked on a new phase of internal management transformation. We aim to unlock greater organizational synergies while driving platform-based technology sharing and economics of scale for the cost reduction, ultimately maximizing shareholder returns. 好的，接下来我把电话交给我们的CFO袁景，请他来提供一些2024年度的一些财务细节。我想也尽量留更多的时间给大家提问。好，谢谢大家。 With that, I will hand over our call to our CFO, Yuan Jing, and hope we have a decent time for the Q&A. Thank you, everyone. Thank you, Andy. Before I start, our lawyer reminded me to read the disclaimer. I will read. Before we continue, please be reminded that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Security Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding risks and uncertainties is included in certain company filings with the U.S. Securities and Exchange Commission. The company does not take any obligation to update any forward-looking statements except as required under the applicable law. With that said, now I will go over our key financial results for the fourth quarter and full year of 2024. Due to time constraints, I will address our financial highlights here, and I encourage you to refer to our earnings press release and 20-F forms for further details. As you can see, we ended the year on a strong note, delivering record high across several key financial metrics in the fourth quarter. Propelled by the ongoing expansion of our product lineup and the continuous enhancements of intelligent features, we delivered over 222,000 vehicles in 2024, resulting in impressive year-on-year growth of 87%, further reinforcing our position as the best-selling pure electric luxury brand in China. Our record-breaking vehicle deliveries led to a remarkable 46.9% year-over-year increase in total revenue, reaching CNY 75 billion in 2024. Notably, vehicle revenue grew substantially by 63% year-over-year, totaling CNY 55 billion. Thanks to our strong product competitiveness, rigorous cost discipline in supply chain management, and economic scale, we also continued to enhance profitability, achieving sequential improvements in vehicle margin to 17.3% in the fourth quarter and 15.6% for the full year. We believe this is better than all our listed pure play BEVs globally. Driven by our unwavering commitment to electrification and intelligentization, we continue to increase our R&D investments while enhancing efficiency. In 2024, our R&D expense reached RMB 9.7 billion, representing a 16.1% year-over-year increase. At the same time, our R&D expense ratio decreased from 16.2% in 2023 to 12.8% in 2024, demonstrating improved operational efficiency. Our R&D expense for Q4 2024 is around RMB 3.2 billion, roughly in line year-over-year with Q4 2023, which stood at around RMB 3.16 billion. The quarter-over-quarter increase of R&D expense, mostly due to year-end employee bonus and booking schedule for finished projects. We also booked an investment gain of RMB 727 million. It is related to a partial disposal of investment in Guangzhou Xinyuan by our subsidiary Nimble Variety, as we received cash gain during the disposal. We did not book any non-cash investment gain, as the rest of the Variety's shareholding are not deemed as available for sale. We also made notable progress in reducing our total net loss, which decreased from RMB 82.6 billion in 2023 to RMB 57.9 billion in 2024, marking a year-over-year decline of 30%. This improvement was attributable to stronger profitability and operational efficiency, despite substantial share-based compensation expense related to the company's initial public offering in May 2024. Last year, our capital expenditure amounted to RMB 1.7 billion, primarily allocated to PPE for Variety, production toolings, and leasehold improvements for our retail stores. Our free cash flow for 2024 reached RMB 1.5 billion, setting another record high. In February of this year, we successfully completed the acquisition of Lynk & Co, and we have disclosed the pro forma condensed combined financial data for Zeekr Group for the year 2023 and 2024. As shown in the combined pro forma financial results, in 2024, the combined Zeekr Group achieved a remarkable revenue milestone of RMB 130.9 billion, backed by vehicle deliveries of more than 507,000 cars. Looking ahead to 2025, we're working towards a significant growth trajectory of 40% delivery growth to 710,000 vehicles across two brands. The pro forma vehicle margin for Zeekr Group stood at 12.5%. With the realization of transaction-related synergies, we're working very hard to implement BOM cost and manufacturing synergies, and we expect Zeekr Group's vehicle margin to further improve to around 15% in fourth quarter 2025 if we can realize a few one-off synergies. Having said that, we will continue to aim for around 15% vehicle margin for full year 2025 in light of potential market conditions. Performer R&D expense stood at around CNY 13 billion, and we are seeking to realize 20% quarter-over-quarter R&D expense saving in fourth quarter 2025. We then will work to reduce R&D expense ratio to around 6% in two years' time. Performer SG&A ratio stood at around 12.5%, and we're aiming at reducing it to around 8% in the same timeframe. & Co recorded a free cash outflow of around RMB 400 million, which means pro forma Zeekr Group free cash flow for full year 2024 is around RMB 1.1 billion inflow. Again, we would like to reiterate our target of quarterly U.S. GAAP break-even in 2025. Our key work to achieve this milestone is quite clear. Most importantly, it is Lynk & Co integration. We're targeting to fully integrate Lynk & Co and Zeekr brands together and realize, if not surpassing, the aforementioned guidance as soon as possible. In the first half of 2025, you can see we are focused on improving our ADAS experience. As evidenced by our March 18th event, we believe we are on the right track to be among the leading players in the Chinese EV market in terms of ADAS software and globally. For the new models, our two brand new models to be launched in the first half of 2025 will have targeted improvements over where we received most customer feedback. Zeekr 007 GT will show improvements over Zeekr 007 and Lynk & Co 900 over Lynk & Co 09. With the latest NVIDIA SOC chipset on Lynk & Co 900, we hope we will be able to further solidify our leadership in the ADAS area. We believe these targeted improvements and improved smart software experience will support Lynk & Co and Zeekr sales growth. In the second half of 2025, we will introduce Zeekr 7X and Lynk & Co 08 EMP to international markets to further boost our international sales. We'll also launch our startup product for the year Zeekr 9X, which will feature our latest and industry-leading super electric hybrid system drivetrain technology and smart ADAS capability, including an L3-capable variant of the model. Two additional models, a middle to large plug-in sedan for Lynk & Co and a large plug-in luxury SUV under Zeekr brand, will also be launched, and we expect these new models to further boost our sales delivery. Looking ahead, we will stay focused on accelerating resource integration and unleashing greater synergies to enhance shareholder returns and create sustainable long-term value. This concludes our prepared marks. I will now turn the call over to the operator to begin the Q&A session. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. For the benefit of all participants on the call, if you raise your question in Chinese, please immediately repeat your question in English. At this time, we'll pause momentarily to assemble our roster. The first question will come from Tina Hou Golden sachs. Please go ahead. 感谢管理层的时间。我这边有两个问题。第一个问题是刚才管理层有提到，在2025年某个季度我们会达成这个盈利。想要请问一下，就在我们这个某个季度达成盈利的话，大概是会需要有一些什么样的条件？能不能从这个销量，然后车的这个毛利率，然后我们整体的这个费用端来跟我们这个介绍一下？然后包含这个极客和领克整合之后，这个实际的降本有可能在哪个季度有多大影响的一个体现？ My first question is regarding our break-even timeline. We mentioned that it's going to be sometime in 2025. Just wondering, what will be the conditions in order for us to break even in terms of the sales volume, vehicle gross margin, as well as operating expenses? Also, in terms of the Zeekr and Lynk & Co consolidation, what kind of cost reduction can be seen in the specific quarter? That's the first one. 然后第二个问题是想要问一下管理层对2026年的一个展望，从整个我们的可能从车型销量，然后包括市场的一个竞争，包括我们可能公司2026年因为这个领克整合了之后，也会有这个应该是有车这方面的一个资本开支，然后我们对整个资本开支2026年的一个指引。 So my second question is regarding management outlook for 2026. What kind of product pipeline, volume, as well as market competition expectation do you have? And then also your CapEx guidance for 2026 as well. Thank you. Thank you, Tina. Yeah. Obviously, as you can see, there are things and there are conditions that we can control, and there are things that we cannot control. For the things that we can and we're currently controlling and implementing changes, obviously, we are working very, very hard, as mentioned earlier, on the Lynk & Co integration. For example, most of the mid and back office functionalities, including HR, legal, compliance, finance, and admin team, we are all now sitting together as one team. At the same time, we are also working very hard to integrate in the R&D team, not only in China but also globally. Those are the things that we believe we can control. As I mentioned earlier, we do have this midterm target of lowering the R&D expense ratio towards something around 6%, and our targeted SG&A ratio is around 8%. Those two numbers, if you look at our pro forma financial statements, stood at around 11% for R&D and 12.5% for SG&A last year for year 2024. We do think we are implementing these changes and working very, very hard towards what we are able to control. On the other hand, obviously, you can see we have left some room for the market conditions that at this moment we see intense competition in the Chinese new energy vehicle market and a more increased competition in the global markets as well. It is very unfortunate at this moment that we won't be able to pinpoint an exact date where we can turn around. As I mentioned earlier, we are very confident, backed up by the consolidation of Lynk & Co and Zeekr, backed up on a targeted 40% vehicle delivery increase, and backed up by improved manufacturing and manufacturing efficiencies and improved gross margin target to achieve this kind of result. On your second question regarding our guidance for 2026, you can probably see when we started this Lynk & Co integration project, our aim for full year 2026 is that we will create a luxury brand group that sells close to more than 1 million cars globally in the luxury new energy vehicle sector. We stood by this target, and we think we are on the right track to realize this target. That means we are not only expanding in China, but we are expanding into global markets. We are not only selling BEVs under Zeekr brand, but also plug-in hybrids and potentially hybrid vehicles under Lynk & Co brand. We do think if you look at 2024, Zeekr brand, we had a CapEx of around 20, yeah, something capital expenditure. For 2025 and 2026, we looked at a slightly increase in capital expenditure for the combined Zeekr and Lynk & Co brands. As you can see from my previous guidance, we're looking at improved synergy. We're looking at improved efficiency. We do not see a proportional increase in CapEx, but an increase in CapEx in a more constrained and restrained. 我补充几句。就是我们领克和极客品牌的合并以后，实际上我们的车型的开发车型数量减少，可以达到20%。这也是这两个品牌不会存在任何的竞争。我们车型数量的减少实际上对我们影响非常有帮助的。第二句话就是这个，实际上领克品牌和极客品牌高度的平台化，这我们也减少车型的情况，也高度的平台化，可以带来比较好的收益。这是第二。 I would like to add a few remarks. First of all, after we integrate Lynk & Co brand and Zeekr brand, we have already made decisions to cut the models in the R&D pipeline by 20% and to avoid the unnecessary internal competition between the two brands. Accordingly, the R&D expense would also be lowered because of this decision. Secondly, I would like to say that the Zeekr brand products and Lynk & Co brand products are all developed based on a platform strategy, so they share a lot in common. 第三个呢，从去年的整个四个季度看来，我们毛利率都在比较好的变化。实际上今年一季度吧，我们预计吧，应该也还是不错的。这个，比如说我们预计我们单研发费用的投入方面，实际上可以减少20%以上。 Thirdly, I would like to say that if we look at our performance in the last year, our gross margin showed a very healthy growth. As far as we can see for this quarter, the margin in Q1 is also quite good. Also, we can see our R&D expense would be lowered by over 20%. For further details of our performance in Q1, we would release in May our earnings results. I can say here that with the organizational optimization and the personnel optimization, as well as the cost reduction on the manufacturing and the BOM cost, we are confident that we can achieve a very good performance in the first quarter. Fourth, Zeekr brand will move upmarket this year with two highly competitive flagship and large mid-size SUVs equipped with our super electric hybrid. The super electric hybrid powertrain will contribute a much better gross margin than pure electric. This will also be very helpful for our full-year profitability. In this industry so far, as long as the product has an engine, it is basically not losing money. With the super electric hybrid coming out, I believe our gross margin per vehicle, brand elevation, and sales contribution will all play a very important role. As we plan to, as we launch the two vehicle models with super electric hybrid technology, we will enjoy, we will see our vehicle margin grow, as well as we will further strengthen our brand and further strengthen our sales volume performance. 好，谢谢。 好的，感谢。 The next question will come from Tim Sayo with Morgan Stanley. Please go ahead. 各位同学你好，我是摩根士丹利的 Tim，感谢接受我的提问。我有两个问题，然后第一个问题的话可能也比较基本一点，就是有关于集团的销量目标。那其实刚才这个袁总也提到了，就是说今年我们看到就开年以来，车市的竞争非常的激烈。那依照目前市场的情况，那也想听听管理层，对于我们今年这个2025年71万的这个销量目标，这个达成难度，是如何去看待。 这是我的第一个问题。 My first question is about the sales target, because the competition has been incredibly strong this year. If such competition persists, would it risk Zeekr's full year sales target of 710,000 units in 2025? That's my first question. Thank you, Tim. This is Jin. You are right, we have set a 710,000 vehicle sales target. Among them, 390,000 will be Lynk & Co vehicles and 320,000 will be Zeekr vehicles. You can see, we are very confident about the profitability and the integration of Lynk & Co brand that can lead us to a very, very strong financial position, starting from fourth quarter 2025. With regard to our financial positions, with regard to our new models, with regard to, as Mr. Stanley mentioned, some of the high margin, plug-in hybrid vehicles, we are continuing to guide a full year vehicle business cost margin that is on par with what we were able to achieve in the first quarter of this year. I think that gives you an indication of, I would call it our animal spirit, our ability, and our willingness to remain competitive in this very highly competitive market. With the strong support of our earning ability and our profitability and our financial strength, we think, we are in a much better position than most, if not all, our competitors to remain competitive and to remain relevant when our customers are looking at, their choices, they're looking at the price tags of the vehicles they are looking to buy. Again, we reiterate our sales targets and we are fully confident we are able to achieve that. 好的，感谢袁总。我第二个问题是有关于新的车型。Tim，稍等一下，安总。补充一点。好，谢谢。全年71万台确实是有很大的挑战，但是我们还是充满了信心，这一句话。第二句话，从一季度，我知道大家可能也担心，因为从一季度量的情况来看，一季度的销量可能占全年的比例还是比较低。我相信我们再看去年，去年是这样，一、二、三、四。那今年实际上第一季度情况来的话，我觉得我们总体的虽然增长，但增长的话，对于管理层来说的话，也并不是满意的，但是在预期之内的。那我们二、三、四几个季度都会有相应的新的车型，以及我们现在已经快速地把我们的支架的能力已经补上来了。所以我相信通过支架能力的提升进入第一梯队，这是一个基础。这一方面，通过全新的一些车型，二、三、四，无论是领克和极客，有竞争力车型的投放市场。所以我说二、三、四季度的话，应该说可以呈现一个比较大的一个增长。 I would like to add one point that, of course, it's not easy to achieve the 710,000 annual sales units target, but we are still confident. We understand that the first sales volume achieved in the first quarter, according to our management perspective, is not that satisfactory, but it is also still in line with our expectation. Because if we look at our sales performance in the last year, quarter by quarter, we saw our sales growth very healthily quarter by quarter. This year we see that with our new product offering in the second quarter, in the third quarter, as well in the fourth quarter by Lynk & Co brand and Zeekr brands, as well as the further improvement and enhancement of ADAS offerings, we have the confidence that we can achieve the full year sales volume target. 我们在未来的车型中，包括已有的车型通过改款，一定要打造爆款。下个月将会两个车型，900和007的GT，我相信这两款车也一定能会成为爆款。 In the future, we will launch a new product, as well as launch our facelifted version of our existing popular product. Our goal is to make every new product very popular among our customers. Next month, in April, we will launch the new Lynk & Co 900, as well as the Zeekr 007 GT. We hope they can be the hit product in the market. 我们的产品不仅要好的技术，还有一点，我们会具备很好的性价比也是。 So our products will have very competitive technologies, and they would also be very competitive in pricing as well. 好，谢谢。 感谢安总补充。我第二个问题是有关于新的车型，因为刚才其实安总也提到了，就是说我们今年4月份的话，有007 GT跟领克900，下半年两款SUV跟领克一款新车型。就是新车型推出的节奏是否会因为今年看到这个市场格局的竞争格局有所调整？那另外的话，其实刚才安总可能也稍微可以提到这个极致的性价比。那除此之外，我们新的车型会有什么其他的策略，从这么多的一个首发车型或者比较拥挤的市场里面脱颖而出？所以也想听听管理层这边的分享。 My second question is about the new models, because the management just updated the model pipeline. Are we going to find you the launch schedule in response to the intense competition? And secondly, what kind of strategy Zeekr would take to make sure that all these new models can stand out in such a crowded market? That's my second question. Thank you. 对于产品的推出，我想实际上今年这个产品的推出实际上在几年前都已经开发了，这个时间已经很清晰明确的。在二季度我们会有900和007的GT，在三季度将会一款领克的和极客各一款车型，在四季度一款极客这一款SUV。所以这个整个节奏，我觉得我们不能也太密集了，所以这个我觉得现在分配是合理的。 So regarding the cadence of launch of the new products, because this product has been heavy in our product development pipeline for years, and so for the second quarter this year we will launch the Lynk & Co 900, as well as the Zeekr 007 GT. For the Q3 we will have one Lynk & Co new product and one Zeekr new product, and for the Q4 we will have a Zeekr new product, a SUV. We don't want to launch the product too frequently in a short period of time, so I think the cadence in our plan is healthy. 那对于我们的产品如何形成有竞争力，能够脱颖而出，我觉得还是要回到我们有领先的技术。9X已经谍照已经出去了，受到了大家的，可以说基本上都非常好的评价。900现在已经到店了，已经开始进行展示了，应该说也受到了很好的用户的一个评价。我觉得首先从技术方面要有绝对的领先，比如说900我们将会搭载这个超级电混系统，超级电混，它也能够实现超快充900伏，它也能够具备L3量产条件的，或者9X，对，9X。 For the product competitiveness, we want our product to stand out in the market with very advanced technologies. We already released the spy pictures of Zeekr 9X, which won the recognition by the customers, and the Lynk & Co 900 also we have delivered, showed them in the showrooms already, and the customers gave very positive feedback. charging, and it will be equipped with very advanced ADAS offering. Not only, of course, regarding the new technologies, we will provide more details at the product launch event, because right now we cannot disclose more information. Overall, we are absolutely leading the industry from a technology perspective. At the same time, our 9X aims to achieve ultimate luxury as well as high cost performance, so all these conditions and factors need to be met. I think in this 9X segment, at present, there is no direct competitor for the 9X product. We would release more details about the Zeekr 9X in our product launch event, but nevertheless our principle is to equip this with the most advanced leading technologies in the industry to make it very luxurious and comfortable for the customers. At the same time, we still have a competitive pricing. As far as I can see in the industry, 9X will be very unique and stand out in the market, and I do not see a direct competitor to this model. 比如说900，领克的900，因为这个信息大家掌握的就比较多了，应该说现在也得到了市场的好评。当然我们在下个月底左右开始，下个月底的预计4月底或者5月初来进行上市。那这个产品和技术大家做到了，应该说得到了，现在只要了解去看和体验产品得到了比较好的评价。从产品和技术本身来说应该是非常领先的，当然我相信我们也有更有竞争力的性价比。 Lincoln Co 900, we have already released a lot of details about the product, and it is well received by the customers, and we aim to launch it either at the end of April or the beginning of May. Currently, we receive very positive feedback on the product, and people love its product and its technologies, and we would still offer very competitive pricing for the product as well. 在这里我也再讲一下，就是无论是超级电混还是现在的领克的EMP，吉利造车近30年，我们在动力总成方面的优势也一定会强于。所以发动机变速箱这方面动力总成的优势，我们肯定会强于其他的一些竞品。 I would like to highlight again on one point that the super electric hybrid technology as well as the EMP technology used by the Lynk & Co brand are very competitive, and for the Geely Holding Group, we have been making cars for around three decades, so we have our very unique edge on the powertrain system, including the engines and the gearbox compared to many of our competitors. 好的，感谢安总详细的分享，谢谢。 The next question will come from Ming Sun Li with Bank of America. Please go ahead. 安总好，袁总好，那我这边也是两个问题。那第一个问题还是想先请管理层这边能够梳理一下，就是未来一年两年之后，这个极客跟领克品牌在自驾策略上会有什么不同，比如说不同的车型会配怎么样的自驾。那也想请问一下，因为刚才袁总也提到我们目前这个包括一些财务部还有合规等等的这些同事，这个合并的进度是比较顺利的，但是也想了解一下，就是说如果以研发还有设计来这一块来讲的话，如果这个百米赛跑的话，我不晓得现在大概跑了多少米，那也想了解一下，因为毕竟现在这个自动驾驶越来越重要，那极客的目前的自动驾驶水平跟座舱的水平是比较高的，那我们大概预计在什么时候有机会可以看到领克品牌的车也能够用上极客的技术，那是不是整个电子电机架构这个全部都要换掉这样子。这是我的第一个问题，那我先翻译一下。 So my first question is regarding your autonomous driving product strategy for your Zeekr brand and also Lincoln Co brand, and also right now what is the progress of your R&D team in the product design integration, especially in the future, when can we expect the Lincoln Co brand car can start to use Zeekr's autonomous driving technology and also smart cabin technology? Thank you, 谢谢。 好的，这个问题很好。这个对于领克和极客合并以后将会使用同一套的自驾系统，这个在18号，就前天吧，应该前天我们这个极客千里浩瀚的发布会上也做了说明，那就是极客将会使用千里浩瀚的H7和H9，全面标配激光雷达。会上也发布了领克的900，也会使用H7系统，也是行业首发装SOLAR芯片的。所以这个合并以后，极客和领克一定是同一套的自驾系统，也是同一套的座舱系统。当然因为两个品牌不一样，座舱在整个HMM还是有一定区别，但是在硬件、底软、中间件方面都能够一致。 This is a very good question. Also, as we integrate the Lincoln Co and the Zeekr brand, it is in our plan that the DevOps brand would share the unified ADAS solution. On March the 18th, we at the Zeekr's 千里浩瀚 ADAS technology launch event, we already explained that the Zeekr brand in the future will use the H7 and H9 ADAS G-Pilot solutions, all with all would be equipped with the LiDAR as in our sensor suite. For the Lynk & Co 900, it would also use the H7 system, and it will be the first product in the market to be equipped with NVIDIA's DriveSoar, a very powerful SoC. After we integrated the both brands, they will share the same solution of ADAS, and they will share the same solution of infotainment. Of course, we understand the Lynk & Co and Zeekr are two different brands, so when it comes to the human-machine interaction in we would have a different design. When it comes to the baseware, the middleware, and the hardware, they would share the same solution. But Zeekr's super electric hybrid should be even more advanced in hybrid technology compared to EMP. I would like to understand whether in the future there is a chance that we will see the Lynk & Co brand using this technology, or if, for the sake of brand differentiation, the powertrain technology will also be differentiated. I would also like to understand, because in Geely's results meeting this afternoon, management mentioned that ICE vehicles are still the main contributor to the overall 175. Since Lynk & Co is a relatively high-end brand compared to the whole Geely Group, will we continue to reduce the proportion of ICE vehicles at a relatively fast pace, or will it be a gradual process in line with the whole Geely Group? I will also translate. My next second question is regarding your powertrain strategy. Currently, Lynk & Co brand technology is the EMP platform, but your Zeekr super hybrid technology should be more advanced compared to the EMP system. In the future, can we expect that your Lynk & Co brand will also use the super hybrid technology? Currently you still sell some ICEV in your Lynk & Co brand, do you think you will retire those ICEV sales faster or gradually? 谢谢。 首先考虑到品牌的定位，现在极客使用超级电混，目前领克没有规划，我们要考虑到整个一个品牌的定位问题。但是超级电混和EMP方面也都要应用到发动机和变速箱，实际上在有很多一些技术方面可以进行一些共享。 First of all, because Zeekr brand and Lynk & Co brand are two different brands, they are differently positioned. Currently in our planning, the Zeekr brand will use the super electric hybrid technology, whilst the Lynk & Co brand currently has no plan to use this technology. However, I still would like to say that a lot of components between the super electric hybrid technology and EMPs are in common, especially on the engines and the gearbox, so we can still have a very good synergy. 好的，请说。 油车。 油车。我想对于油车这一块的，只要我们在这一块的研发投入已经不大了。我们考虑到国内还有一定的需求，比如说零散，还有要考虑到国际市场。所以我们尽量在油车上面非常少的投入，满足一些市场需求。我们要快速的，还是要快速的投入到我们的 EMP 超级电混上和纯电上。 Regarding the ICE vehicles, currently we do not spend much on the R&D of pure ICE vehicles, but still there are some customer demands. For example, in the domestic market, there is some customer demand for the Zero Three product, and for the international market, still many customers appreciate ICE vehicles. We would keep limited investment from the R&D for the ICE vehicles to meet these customer demands in the global market. More importantly, we would further accelerate our R&D investment in the new energy vehicles, such as EMP, super electric hybrid, and pure battery electric vehicles. 好的，谢谢安总。谢谢。 Thank you. The next question will come from Ting Wenjin with CICC. Please go ahead. 哎，安总好，袁总好。我是中金公司的金文娟，然后我有两个问题。为了节约时间，我两个问题可能就一起问了。第一个是关于出口这一块的，想请教两位领导，我们目前在出口这一块的整体业务的进展情况，包括此前提到的，可能借助领克的门店去进行一些更深入的布局。然后第二个问题是想请教，因为领克的整体的定位是全面向宽，那么我们也看到可能像吉利出品牌银河这边，银河品牌它的，比方说E8或者说新耀8，有一些向上去做高端化的动作。那么我们怎么去看待银河双子星的这种高端的定位，对于我们领克的一些影响吧。 I have two questions. The first is, what is the current progress of our export business? Does the layout of Lynk & Co stores help make the business go smoothly? The second question is about, how do we view the impact of the position of Galaxy Twin Star models as high-end new energy sedans on Lynk & Co? 主要是这两个问题，谢谢。好的，首先领克和极客今年整个的出口的目标，我们占我们总销量的10%以上，这是我们一个整体的一个全年的一个规划。那对于出口的话，这是第一点。第二个就是在我们集团吉利控股集团内，我们有实际上对于极客、领克、吉利，吉利主要以银河为代表的，实际上在控股集团内的我们三个品牌，三个品牌有非常有清晰的定位。在这三个品牌方面，大家有清晰的定位，不会产生市场的冲突。在集团层面，我们也建立了非常好的战略协调的机制，所以在市场上不会发生冲突。 First of all, I would like to say again that for the Zeekr Group, this year our target is that the global overseas sales volume make up over 10% of our full-year global sales performance. Secondly, to answer your second question, inside the Geely Holding Group, we have a very clear brand positioning and differentiation between the brands of Lynk & Co, Zeekr, and the Geely Galaxy. They respectively have their each very clear brand positioning, and they would not conflict with each other. We have already established a very good mechanism to avoid those unnecessary internal competition. 好的，谢谢。 Thank you. The next question will come from Ben Wang with Deutsche Bank. Please go ahead. Thank you. My question is more about financial. You actually elaborated that next year, the first quarter, gross margin will be 15%. Can I confirm this is a vehicle margin or overall gross margin? What's the comparable number for quarter last year gross margin? If you just mentioned that there will be one-off positive, can you elaborate what's the one-off positive margin? Looks quite decent. Thank you. Thank you, Ben Zong. This is Jin. Yeah. As we mentioned earlier, we are targeting or we are aiming to achieve 15% vehicle business gross margin on a consolidated level, which means both Lynk & Co and Zeekr combined together for the fourth quarter of 2025, if we were able to achieve a number of one-off synergies we identified when we were doing this Lynk & Co and Zeekr consolidation. Unfortunately, there is no publicly available quarterly data for Lynk & Co available, but if you look at the 6K Performer 6K that we published on our website, you can see that the overall Performer Zeekr Group consolidated vehicle business gross margin for the full year 2024 is around 12%. We are looking at somewhere around 3% improvement on a consolidated level for the fourth quarter of 2025. At this moment, it may take too long for me to elaborate on each of these one-off synergies that we identified. It is mostly due to further examination of supply chain and closer examination of, if you remember, Lynk & Co have their own manufacturing facility. We are able to stop or find some leakages over there as well. In addition to that, we were able to talk to our suppliers since we were Zeekr and Lynk & Co, we are coming together as a whole group. There is further consolidation with regard to the R&D. The future components and parts, that is something we can lever down when we're talking to existing suppliers. I hope that satisfies you. Because you mentioned around 3% bone cost deduction on the call in the afternoon, do you consider 3% deduction in the bone cost in this guidance? I would argue that this is more than just bone cost, but I think the essence is that we were able to demonstrate within the first quarter of Lynk & Co and Zeekr consolidation, we were able to achieve this kind of gross margin growth. Okay. My second question is about your battery sales business. We see a sharp decline in the number fourth quarter last year. Can you explain why side? What's the key customer? What change led to a big decline in battery sales? Thank you. Yes. If you look at the battery and the component sales, it is mostly the business on Ningbo Virey. Ningbo Virey, if you recall, Ningbo Virey supplies to a certain extent Geely Group's EVs and NEVs with regarding to battery packs and EV powertrains. A note is that not all of Geely Group's NEVs are supplied by Ningbo Virey. Some of Geely Group's products are purchased from their respective suppliers directly. On the other hand, one of the key customers of Ningbo Virey, Volvo, we continue to supply them battery packs for Volvo's EX30 models. That contributes to the margin increase in the fourth quarter of 2024. Thank you very much. Thank you. T The next question will come from Eugene Sile with Macquarie Capital. Please go ahead. 感谢庄先生。我这边有几件问题去问一下。我这边有两个问题。 My first question is on if there's any update on the vehicles to be sold to Waymo and on in January the U.S. government had a ban on Chinese software. Will that have any impact? The way that we work with Waymo is a very delicate process. We actually manufacture the bare car, the hardware in China, and then we ship it to Waymo in California. Over there, they will put on the ADAS hardware, and at the same time, they will install all the related software. When the vehicle clears the U.S. customs, it does not contain any so-called vehicle communication modules. We make this arrangement to make sure that we are in full compliance with relevant laws and regulations and to minimize any potential risks regarding our cooperation with Waymo. To follow up, the vehicle sales this year will be on track as expected before. Is that correct? Yes. So far, it's still on track. Okay. Great. My second question is on the self-developed autonomous command controllers that you showcased at CES. Are those only going to be used on Zeekr brand, and will they only be using NVIDIA chips? You mean the Star chips? The domain controller that was at CES. The domain controller that we showcased at CES. Yes. Yes. That That domain controller will be equipped not only on Lynk & Co vehicles but also on Zeekr vehicles. It's basically all of our SOLE-enabled models in the future are going to use that ADCU. Yeah. Only Zeekr brand or will it be Lynk & Co as well? Both Lynk and Zeekr brands so long as they use SOLE chipset. Okay. Maybe just a similar question to follow up is, will we still plan to use Mobileye chips going forward? Because I think all the new models are using NVIDIA chips. Mobileye continues to be a very, very important partner with us. As we mentioned earlier, for most, if not all, international market targeted vehicles, we will continue working very closely with Mobileye. Okay. All right. Thank you for letting me. Thank you. The next question will come from Paul Gong with UBS. Please go ahead. 感谢接受我的提问。第一个问题是关于那个车款数的。应该说现在两个品牌合并了过后，大约有可能15款车左右的车款吧。然后今年在发布了过后，就基本上有20款车车款了。就我们之后追求的这么一个策略，到底应该是用一种叫车海战术，还是用一种叫爆款策略呢？就有没有有些边缘性的一些车款需要把它停掉，然后我们的一个最优的一个车款数大约是多少？ My first question is regarding the number of models. I think with the two brands, right now you have about 15 models, and after this year's new launch, you will have about 20 models in tot al. Do you think there is any room to eliminate some kind of less popular models, and what do you think is the optimal number of the models? 这个首先可以明确地说，肯定是一个爆款战略。我们这个开发一款车型，这个车型一定要在这个细分市场成为标杆。这是我们的产品开发战略。这一个。第二个呢，领克和极客的合并，刚刚我讲了，合并以后实际上我们在减少我们的车型的规划和数量。我们现在已经实现了20%以上的减少数量。 First of all, we can make very clear that we hold a hit product strategy, meaning that all the new products we launch to the market, our goal is to make them the respective benchmark and the leaders in their respective segments. This is our strategy. After we integrate the Zeekr brand and the Lynk & Co brand, as I explained earlier, we already cut the products in our pipeline by 20%. This is already explained. 谢谢。 Thank you. My second question is regarding the R&D budget for this year, and they break down roughly between the models development versus the intelligence and AI, etc. Yes. Thank you, Paul. If you look at the unaltered Performer combined financial statement, you can see Zeekr and Lynk & Co combined together last year, we spent around CNY 1.2-1.3 billion on a US GAAP accounting standard for R&D. We are looking at similar or slightly single-digit% increase with regarding to the guidance we will put out for R&D this year. Given that we're introducing quite a few new models as well as refreshments of our existing models, as well as improvements in ADAS, smart cockpits, etc., we do believe that is an indication of our overall R&D improvement of our R&D efficiencies. For 2024, in each of the smart cockpits as well as ADAS sector, we spend around CNY 1 billion. As mentioned, in 2025 and beyond, we are looking to platformize our smart cockpits and ADAS technology between Lynk & Co and Zeekr brands. We are looking at a similar level of expenditure for both smart cockpits and ADAS in 2025. Okay. Thank you very much. That's quite helpful. 我再稍微补充一点，就是从2022、23、24，包括今年的部分吧，我们更多在平台化上面花的钱投入相对多一些，尤其在去年、全年。因为我们在机器架构、电子架构、座舱、支架，这些平台化的东西前期投入比较大。我觉得从今年开始的话，这些平台化的开始得到很大体现了。未来我们可能在这一方面的投入可能就相对来说不会有以前的多。 I would like to add one point that since the year 2022 to this year, we invested mostly for the platform technology, for example, the mechanical architecture, the electrical and electronic architecture, infotainment, and ADAS. This investment in these platform technologies will bring us benefits this year. I think in the future, the investment in many areas will be platformized and would not be as high as before. Operator, can we have one last question, please? Thank you. The last question will come from Jun Tao Dong with CICC. Please go ahead. Hi, An Conghui, hi, Yuan Jing. I am Dong Juntao from CICC. I would like to ask a question about intelligence. From the perspective of future outlook, what will be the relationship between our own self-driving team and Qianli Technology, including, for example, the leadership of both sides, such as Chen Qi and Yin Qi? What kind of relationship and reporting line might there be in the future? The integration of Qianli Technology and Zeekr's ZID has been carried out. The fundamental purpose is to combine the advantages of both sides well. Qianli Technology has a strong computing power reserve and certain advantages in AI large models. Zeekr has strengths in autonomous driving algorithms, user experience, and engineering capabilities. After the collaboration of these two, I think this will actually help Zeekr's ZID better, because it can help us reduce some of our investment in ZID, in computing power, and in algorithms. For the integrated Zeekr ZID, it is still led by Zeekr's Chen Qi and the original team, and this does not change. Of course, the ZID system that Zeekr is now working on, as mentioned earlier, will also be better implemented in a platform-based way with Lynk & Co. As we integrate the Qianli Technology and Zeekr's ZID, we can very well combine the advantage of both sides. For Chen Li Technologies, they have a very good computing power, computing centers with very high power computing capabilities, and they are cultivated in the areas in AI and large language model. For the Zeekr ZID, we have a very good reserve in the ADAS algorithm, and we also have our engineering capabilities, and we understand how to further improve the customer's experience. After we integrate the two brands, we can enjoy very good synergy to benefit our ADAS offering to the customers and lower the cost. For Zeekr's ADAS, the development work will be led by Chen Qi or Baymax, but this has been no change, and we will further enhance the platform strategy among the Zeekr brand and the Lynk & Co brand's ADAS solution offerings. In addition to that, I think one key important factor I would like to mention is that for Zeekr, we will continue to make sure that the engineer team, i.e., the team who actually puts the technology on board of both Zeekr and Lynk & Co vehicle, continue working very closely with the vehicle's R&D team. With regarding to Chen Li technology, as An Conghui mentioned earlier, as you probably watched the event on the 3rd of March, they are providing with lots of computing power. They are providing with lots of infrastructure. They are providing the backbones for the VLM and MLM models. The actual implementations of putting those models, those general infrastructures into use, into an actual ADAS system that our customers can reliably and safely use on car, that is 100% in the hands of Zeekr's team. 好的，好的。谢谢安总，谢谢袁总。 Thank you all for joining today's call, and hopefully we addressed most, if not all, of your questions. Ms. Tan and us will continue to be able to talk to you in the next few days to come. Meanwhile, if you have any further questions, please feel free to reach out to Zeekr's R&D team. That's all for today. Thank you very much for your time, and have a nice day. Bye-bye. 好，谢谢大家。 The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.