LI - Earnings call transcript Q4 2020

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Operator

Hello, ladies and gentlemen, thank you for standing by for Li Auto’s Fourth Quarter and Full Year 2020 Earnings Conference Call. At this time all participants are in listen-only mode. Today’s conference call is being recorded. I will now turn the call over to your host, Janet Chang, Director of Investor Relations of the company. Please go ahead, Janet.

Janet Chang

Annie. you, Thank good and Good morning, evening, everyone. Li year full to quarter and earnings conference fourth XXXX call. Welcome Auto’s The company’s the financial press and operating results were today were website. release published and posted IR on company’s earlier in the today’s we our Mr. president, On call, have our Kevin Yanan Mr. Shen; CFO, and Li; Mr. CTO, our Tie Johnny begin remarks. Wang, to Kai with prepared

for Founder Our join CEO, discussion. Xiang Mr. Q&A and will Li, the

of provisions we XXXX. Litigation made under statements continue, contain will forward-looking Securities please Before Private Safe be of Harbor discussion Reform U.S. reminded Act that today’s the the

inherent Forward-looking involve uncertainties. statements risks and

Auto’s such, the except any non-GAAP results and to included Securities to company actual to now obligation required and President. information company’s from the the may forward-looking earnings U.S. assume law. applicable ahead, under GAAP a is call different this measures. as As regarding Kevin. Exchange note update unaudited the and which measures release, the information well reconciliation that, I any call be Commission. With views our Please in uncertainties measures. GAAP as turn Further of over of discussions contains also the of materially certain The financial Please unaudited conference include press to filings expressed Auto’s press statements, that company release non-GAAP as comparable go today. Please with not risks Li unaudited financial does will Li refer

Kevin Yanan Shen

The call company. growth you, quarter thank and Thank our our results for off today. financial for fourth and a Janet. Hello, of robust everyone, capped joining year significant you

in XX% We fourth our the delivered ONEs quarter Li strong results record that outlook. Our up team’s fourth quarter-over-quarter. quarter, beat execution XX,XXX yielded comfortably

user strategy best-selling billion. our XX.X% revenue experience, growth the compared product features. ONE RMB and possible together meet that be demand quarter, and continue demand. strong up long-term rapidly into advancing the scale for was electric new XXXX, impact outstanding vehicles consistent technologies be manufacturing product believe focused to superior Li delivered in our to XX,XXX evolving and users China, to of sales energy robust SUV our will the XX,XXX vehicles and our offering reaching consumer was process driven XX,XXX distinctive by of smart to tailwinds product high-quality deliveries its competitive with ability by This our to of with Our drove a With highly quarter fueled preferences to and we third to for seasonality China, We Taking in our consideration growth. in of testament units. COVID-XX first year performance the deliveries expect Northern X.XX by made between a

users flow side, billion, cash at raised successful the $X.XX profitability billion our RMB our margin operating fourth manufacturing we XX.X% offering, quarter, and achieved setting disciplined the notably, proceeds quarter nearly in a in reflecting follow-on as direct gross BEV record-high sales steadily solid cost remained from our doubled by and management to proactively robust response to have expanded anticipating autonomous demand drive network. the we increase We technology our future our remain for needs. foundation vehicles, we investment a financial platform a serving driving our a and as their for our Most approach. through On the X.XX And growth. committed servicing third efficiency of increased to and

XXX had body cities. XX we shops operating and January servicing covering the authorized paint and retail XXXX, the XX and XX, of As stores also centers XX cities in

of to strengthening sales and strive China the stages maintain from the to efficiency. model broaden digital to to ourselves time, and servicing of the continue to processes level our launches and connect same users At the systems XXXX increasing new for will prepare address across coverage integrate in prospective city We sales and a deepen we and high continue demand all beyond.

user-driven As always automotive we and and technology our users’ comfort the prioritize safety. company,

constantly awarded Automotive make outstanding iteration it delivered Li also Automobile through XX updates five-star By the speed, nurture dashboard, programs. our safety as China proud believe December multiple our in five-star and value-added categories new achieved. are screen only in new software rating Health suggestions map. Index camera top New control received app safety we and our helpful for such of vehicle the results from of in is was Index as SUV over-the-air also the to three customer upgrades. functions, the products enhanced have our our Li collect China interfaces FOTA. we will not of demand services, setting also ratings and the and copilot and user value On smart also centers in entertainment update ONE through XXXX, Safety necessary touch Li doing so, large ONE relationship dashboard in model applications December long-term with make navigation Program the ratings front the We major Version X.X to Since four features be safety evaluation through playback, a for only alert, rating such users, delivery updated panel provide XX enhance start XXXX, premium released that the system. XX – innovation. service including run. that best-in-class of bringing delivered Insurance Car indexed a in more another updating in and OTA Plus aim to groundbreaking the but January; the highest adaptive cruise all on the ONE vehicle XX, scores which Assessment has long very We very the three out and February, our assessment; users China feedbacks We

users in expressed we satisfaction in friends. their kilometers. XX, XXXX, to mileage had January cumulative Li ONE willing and February China, users million with conducted XXX of Li XXX survey cities As in XX.X% we ONE the recommend with to were of across exceeding

the support consistent for and grateful trust users. are our we always, from As

platform we positioning of our and adhering electric a our forward, second-generation enrich technologies in to Looking premium the the vehicle. BEV smart high-voltage of of to while of the to cater mix order brand users, to will also accelerate model wider extended-range development needs range

All maximizing proposition users. of at efforts are the value these for aiming our

on based of premium reconfiguration planning especially the brand-new factory full-size architecture to our on SUV pipeline, our the launched Changzhou XXXX. model state-of-the-art are for new We be in

the family. phase across to With over ahead, our center, our and our toward of are stage a effort we mission, creating the homes establishment Shanghai CTO, our cycle Kai of successfully R&D year, entire the With I would like Wang, for completed ahead board. review our on R&D R&D that Kai. we continue efforts. strategic the of bring also Mr. will turn Please entered happiness Having this it our expediting racing second closer that, the move to the to go first

Kai Wang

Kevin. you, Hello, Thank everyone.

earnings me the share you progress have Let with the last call. R&D on we since made

our algorithm enabling SV premium be NVIDIA and collaborating are projects via closed-loop to well goes [ph] features the track. course expand equip full-size is to We our X,XXX chipset. powerful use more next everything could and OTA. in-house SUV and brand-new reach environment, our With for hardware in overall up and level-X on setup, the with data can In launched our sensor we complete model power upgradeable It XXXX. architectures we vehicles’ TOPS. with and electric Desay closely computing SoC on particular, are ECU cases driving. NVIDIA Along set to a The progressively scalable with scalable we Orin with autonomous

people’s electrical priorities smart engineers our to technologies vehicle the team cutting-edge aim bring lives. CTO everyday of brilliant we join One scientists, for me to to world to developing innovations is attract to as researchers changing and as

have We with high-voltage charging new abundant to capabilities due the development We will and This platforms in for Shanghai XXXX and ultra-fast technologies chose to in expertise off topnotch technologies. R&D supply R&D are of a in with vehicles center as announcement of end-to-end electric new the kick development around rich cutting-edge vehicle availability the such smart alongside the excited Shanghai, as our center dedicated talents of location city chain. to models.

recruiting launches but not Recruiting also our our already vehicle at As establishment, model we of technologies, are new R&D development has only and started. accelerate center efforts. smart

In in and top We ultimately in over will be released meanwhile, a are of collaborations will institutes updates X,XXX universities staffs. More with we build China. research future. team establishing

turn to review our to over financial Li, Mr. Now, quarter. call our I Tie CFO, fourth this performance will in the

Johnny Tie Li

quarter of of representing earnings of release, fourth third services of sales an million XXXX the mentioned revenues services. quarter fourth representing XX.X% the currencies third below an from from included will from in XXXX, quarter increase X,XXX the fourth XXXX. I of an primarily XX.X% to comparing encourage you increase Please quarter billion with Total margin RMB X.XX our of third the RMB RMB was XX.X% XX.X% quarter and XXX.X and posted X.XX quarter This an were RMB million over margin of fourth XX.X% in XXX.X from expenses compared Research third quarter. XX.X% sales from go of development representing XX.X% rebate deliveries X.XX the of Hello, to in million, additional of to million results in now was fourth to was fourth decrease was the XX.X% services RMB RMB. the the vehicles the quarter in in billion, the The quarter of in was which of quarter in XXXX. XXXX. increase from due driven and our fourth in vehicle quarter with fourth to XXXX. some sales financial representing mainly in XXXX you, XXXX, our Revenues details. RMB here increase press of decreased increase increased in RMB in is quarter quarter XXX.X vehicles XXX.X increase mindful of revenue the quarter increased of the third of of quarter. Thank sales in XX,XXX line the quarter an the everyone. expenses in in the XXXX vehicle fourth margin. the billion, note vehicle increase of the quarter online the was this an onetime highlights vehicles To Vehicle XXXX. third of due XX.X% the the are the change from quarter. in number that vehicle billion of the third representing XX.X in third in from in XX.X% of were and The were Total from the X.XX other increase by from refer XX% for to compared third mainly vehicle using the in RMB I RMB of XXXX. million be of was increase quarter which and Cost representing sales will address other quarter to for fourth financial The XXXX. Kai. operating suppliers of length Gross call, the were third sales

over to related third of and of third the cumulative expenses, XXXX, non-GAAP expenses share-based by expenses. Excluding compensation and driven share-based representing performance vehicle to operations was compensation attributable and to fourth were research representing increase of RMB expenses Selling, service share-based were the The fourth XXX.X promotional for excluding to of stock the by higher increase a in model increased period related [ph] were XX.X%. options conditions expenses development IPO. period administrative activities RMB third RMB and general share-based which offset increase headcount, conditions were with next the the selling, loss expenses increased general in decrease from compensation and selling, million, a of in recognized activities development in which in compensation over RMB to headcount, in compensation and to the XXXX expenses increased compensation related offset XXX.X primarily in employees million, the by the and RMB share-based higher granted granted quarter significant million, expenses expenses IPO. the research quarter. Non-GAAP was research increased XXXX decreasing million in performance marketing primarily share-based general were and million, development the quarter an with company’s administrative option compared and expenses the significant service expenses conditions to quarter-over-quarter quarter, XX.X%. in was XXX XX.X% of The increase the Losses recognized by the XX.X and XXX.X conditions administrative cumulative employees and stock to related quarter decrease

fourth RMB was RMB the quarter Net the Excluding of in increase RMB quarter income loss XXX.X operations the in compensation XXXX. the in of XXX.X RMB share-based net by fourth expenses, representing in of million XXXX. was of XX% to increasing million of income XXX.X% million net from XXXX. non-GAAP from third loss RMB quarter third quarter, XX.X million quarter was third an XXXX XXX.X the from million, compared Non-GAAP the XX

sheet Now, flow. turning cash to our and balance

investments million was in RMB cash from third December quarter Our doubled cash and of was RMB Free in XXX.X% deposits X.XX quarter XXX.X time quarter of the third XX.XX XXXX. the in cash flow XX, X.X of increase in quarter the XXXX. totaled and Operating from cash XXXX, of equivalents, RMB of XXXX fourth short-term billion billion restricted fourth an million as flow nearly the RMB XXX.X representing RMB XXXX. of billion, cash,

had XX, As we XXXX, X,XXX of a employees. of total December

detail. to earnings now results, please financial further For press our for of outlook. business more for year XXXX And our refer release full our

the and from be vehicles, representing first the of expects quarter operator of XXX.X% between increase turn you. to the XXXX. also to increase of XXXX, RMB to company now quarter XXXX. between I quarter’s first billion, of The an quarter the representing billion XX,XXX over first For company X.XX XXX.X% to expects Q&A deliveries to first total from facilitate call XXX.X% an XX,XXX revenues XXX.X% Thank the of our RMB to be the to session. the will X.XX

Operator

Instructions] Fei comes Goldman Fang the Please [Operator First you. Thank line ahead. go question Sachs. of of from

line Your open. is

Fei Fang

the volume about performance? projected car forward is guidance. My me on decline on longer about your government. management and demand myself vehicles drives [Foreign from it supply the will Can or decline, quarter policy Thank The the on announced view provide plate no to just talk plate is your in first you for recent Shanghai the city question what of elaborate plug-in obviously XXXX. green Let first effective very it language] impact on side? the sequential this you. Second the translate question quickly. about Can

Kevin Yanan Shen

is Thank I’ll Fang. This you, Fei questions. your answer Kevin.

X,XXX, sales were we Your Single was January question, Li does over X,XXX are per encountering first not think very month in a decline that demonstrate XXXX the an our Lantern ONE Deliveries affected that Festival, December February prior still and for two will seasonality that upcoming for are Chinese by Spring our sure. X,XXX. these festival in competitive. month-over-month our expectations. average modest is that bottleneck. were in be also These think line sales and of numbers sales mean during growth X,XXX model in the the Chinese months with We our

In relatively China, addition, considering XXXX. of in Northern out quarter first the impact guidance we are delivery putting conservative the of COVID-XX a for

pandemic, in that sales The even confident of the change store The increase. question we keep with to is Shanghai. that the will a retail control coming are gradually policy this and About about also an communication expectation, and expansion the the of may later local Shanghai within Also, and in with your policy authorities. – change We with the expected. our Shanghai our time implementation and than our was believe implementation effective second in years. XXXX in details of advance. two users constant this policy actually EV the encourage implementation of this PHEV we purchase EREVs will We

demand in in fact, PHEV We peak XXXX. expect will, for reach the EREV and a

policy this of relatively as the our XXXX. restrictions company Shanghai license only Cities other side, of accumulated the whole. for of on And our change XX% account deliveries our than by in XXXX. total impact small for a have without account X% deliveries end more On will a

very So, healthy. is the distribution

BEV answers. of Thank expected you. BEV model, are the our which in is our the and platform, accelerating also That’s We the XXXX. R&D launch of

Fei Fang

Thank much helpful. very very for that’s that. Kevin, you

Kevin Yanan Shen

Thank you.

Operator

line is Jerry question Su the Stanley. of from next of Our Morgan

Please ahead. open. is line Your go

Unidentified Analyst

translate management numbers [Foreign So can my the the team let language] share to official My me plan we in open quickly stores questions. first XXXX. regarding question, of guidance

at sales Xiaomi. around lot broader XG, the they second market, With EV which saw per competitive of about Apple, the My operating the is landscape. store We great average sales monthly give like and step companies network, into tech efficiency XXX question a units? keep

think implication impact Auto? would kind to the you. Thank or So to do driving the disruption, and new And of Li market? could entrants what autonomous what EV you the these bring be

Kevin Yanan Shen

This about first Tim. your Thanks, Kevin. answer sales try to question will efficiency. I is the

store entered the efficiency per vehicles has for of a and comment strategic in target. our company the think to already we single second in our you this healthy want year prepare models years. increase will I sales our Xiang will retail from XXXX. in level, starting – the company as launch has question? store multiple aggressively efficiency we beyond which this models the we more year sales Li, second not will of the already from more starting take – cycle, the stores to keep relatively coming Considering XXX on launch the Therefore, the do to

Xiang Li

[Foreign language]

Kevin Yanan Shen

Okay.

For not described. Xiang is the those, of me what Li translate speak do Kevin, to benefit try let Mandarin; just who this

believes the for So from all, any take testing will one take actual the first car will in company also project it up test R&D Li year that Xiang another car setting the a market. team, three initiation, scratch, and from launch. It to product develop of to about years

have Li of – these all Auto and strategic completed Xiang So Li phase already has already entered three now, cycle. right the we third

build think, will So in we the compared speed our to to three by out advantages of companies, competitive competitive newcomers. We those our three, have those the new entry we four ahead XXXX, we of years, will accelerate advantage. which major coming the are development

million X.X to share It the we X be gained base, million. already the is First user and nearly will market then. by

Last should also stores. then, the – for our target our is capacity also new charging be to both our also sales which supply our EREV big and By infrastructure portfolio all thing, have channel. advantage entry product chain Second than say, over have competitive factory X,XXX a then, advantage I give, already is our will it’s a And will much us. – capacity, important portfolio more our retail we service bigger, portfolio, have advantage high-voltage that we’ll BEV will we’ll and have become and very by and our companies.

we the those R&D think product to new our enter But very are we So side. our phase, want much. accelerating We and already to the respect phase, in launch. we who on passed zero this already XX the is and timing industry are we one to one

Unidentified Analyst

Right. great Thanks Mr. Li. Thank you, for Thanks. the color.

Operator

you. Thank

Our Paul of question the next ahead. from line is go of Gong Please UBS.

Paul Gong

Thanks taking Basically, for have Yes. I questions. questions. my two

First one is or vehicle related technology. the to BEV the electric pure

strategy. You have your already changed

road Will strategically up [Foreign and accelerated enough pretty and line to should exchange close the higher you volumes months, XXXX. and and and the you share, I to our the question platforms? financial announced teens Whale space, higher especially XXXX are prime branding faster two regarding acceleration of moment, Obviously, accumulative your the higher development speed? user Whale you have bigger to the higher already choose and been Whale in on achieving several us focused at base. You fast get the Shark and on the this BEV have platform the to of given, it, past lower this see. you during share? margin understand details, But for focus margin My map, charging. share breakeven highly margin. and decent the gross Shark you the have we mean? and market and Language] And is resources, well with can op on on Can you room second more guidance high-voltage BEV? means Shark have technology the as high market And margin probably build as How for these does Does what you bigger of mean for

Xiang Li

Language] [Foreign

Kevin Yanan Shen

a Okay. is lot translate. Yes. try translate Kevin. content. This I’ll I to will of

of replenish is to some mission market And also, we planned. government with us to time product Right of speed. platform This be introduce right high-voltage all, starting very to developing all to company. the and into and believe develop first able start try we beginning the the with this give the Chinese the our our this high with to soon. from been very technology in our that the the timing we focus So is now, authorities are BEV and it the to now, to standard for customer and enable energy have it’s

speed So, charging develop. to there technologies have achieve high-voltage ultra-faster are fundamental we platform, this to four

The first, of course, is the high C-rate battery.

our partners our we with This supplier; with it our partners. charge times not on from are C-rate We we four is together the developed direct product a battery. buy working of

Second is, system. e-powertrain the of high-efficiency course, very

I think the is the at core yes. this technology, of solution SiC

thing is system. about The the third thermal

need manage we we imagine, are One speed, can charge to with when sophisticated thermal required a you facing issues. heat system. is very car two very As that high this the we

other in the the is make very experience sure to user good even On hand, temperature. very low

to need system thermal is, example thermal technology, team – for the for have The have can also COX charging high-power they’re cold last the example, using our as the working course, is thermostat solution We cater the network. one And when on temperature. medium is of low need our system. the R&D

network. within commercial XXX business kilowatt Because charging what XXX become charging target charging range minutes, station, call to of yes. also become high-power to means That’s profitable. speed, is to kilometers to model viable which ultra-fast starts the XXX real the the Our for XX minutes kilometers that to XX charging the we enable business

HPC, high-power charging networks, yes. to So to therefore, build we start have own our also plan a

launched product year new So launch will be XXXX, XXXX. from the onward. two at we the plan, And BEV each in from first starting least launch will products product

hand, other cover a On our wider the range price portfolio. with we’ll

XXX,XXX to RMB XXX,XXX. – we range a plan RMB to is cover price Now, our from

So we the is two yes. are And have cars, ICE replacement the solution. EREV solution BEV solutions. Both accelerate to of and good, overall, our target very

from of right? be car, the car and performance this shark, platform Paul’s you will Shark. Whale All platform is question Whale imagine form name, higher. and about the a that can space with to for in answer as its Lastly, the The more

Johnny Tie Li

Johnny. will I GPM Hi, answer is the question. Paul, this

is You around margin full-year XXXX, gross the can XX%. see,

this the expansion investment for we increased with for also XXXX, in still are So of mentioned, the overhead side, to we due the between manufacturing don’t XX% improvement. will our network, volume want increased to expect as gross to Kevin accelerate we and we BOM year, the margin R&D because and XX% – net that. profit lower But the also

So, should we And want on net in due also, don’t the to the guidance investment you is give really quarter any that income, short-term to realize that. the which fourth profit is tightened in China.

So, it’s yes. –

Kevin Yanan Shen

you. Thank

Paul Gong

Thank you Very much. Okay. so helpful.

Operator

from is ahead. question Credit go Please Next Suisse. Bin Wang of

Bin Wang

[Foreign is such will because – competitors for be how can question car as Tesla, smart year, the even – first Li happen car milestone you smart technology this My key language] prove and one. Auto. That’s even any compare about catch you Meanwhile, better NIO can event or issues Xpeng? your up the for

is dealer The network. the second one about

You this or should just XXX above – to network. to we mentioned well? shops your expansion as Can network or double. year assume in Previously, year this Thank the double be maybe dealer compared go dealer you. that

Kai Wang

So, take to first I would the question. is speaking. Kai over This like

system, so, Regarding covering computing which and operating car next-generation year money car system It our cockpit, more our platform – applicable autonomous XXXX. in-house preparation R&D. in releasing operating on we in spend will we’ll the be brand-new scalable intelligent XXXX. is for own of architecture, and the driving, plan

provided total be for our From double we our of R&D will point view, staff in to offered engineering course, customers features features meanwhile, some size sure. by competitors, similar Of as of will resource we plus brand-new mentioned. our

is center R&D a part Shanghai this building of expansion. So,

we confidence regarding last have So did we prove competition, ourselves efficiency financially again, year. to as

in-house we with exciting soon. can unveiled like driving So, you. of believe be news R&D, our fast regarding autonomous our expansion Thank technology

Kevin Yanan Shen

Wang you, Thank Kevin. is this Yes. Bin.

network, entered accepted the mentioned already with phase, I that Auto company as second the For has brand now our by just users. sales Li the increasingly

fact, are we gears. changing In

extension accordingly. We store strategy are adjusting our

year, XXX to stores So cities. reach retail is XXX year, in is This this goal covering our our plan. this

sales to sure brand can you The will of this relatively network the increase aggressive our and need for is As the expansion a also sales plan. enhancement. see,

XXXX model behind that are the think preparing launches us plan this and I new is in for beyond. we

Bin Wang

Thank you.

Operator

you. Thank

ahead. We the question. Lei next CICC Wang have of Please for go

Lei Wang

questions. [Foreign translate quickly my language] Real

And So I the one want strategies. if to the regarding battery, to raise Okay. overseas question another regarding Kai the that’s Wang, first

sure or but or considering have in market expansion whether the it which I was was plan, that rates less to is wants have the Wang several was either vehicles not part I well. new So, the believe it high the of the started in battery the electric Norway as to Europe has not more for penetration of go reported and competitors question, deliveries European Kai, plan our CTO. changed overseas you second Mr.

retrograding, instead year? the expectation We have noticed we been share Model LFP Have Thanks. this lithium already considered LFP time target also whether using what’s the of saving. BYD the for that Tesla can batteries X also for NCM and or for batteries? ion you Han over BYDs the using you has cost And if got some

Kevin Yanan Shen

Kevin. you, Lei. Thank is This Wang Yes.

Let your me take questions.

we First ultimately. become electric committed vehicle, of of all, of are smart a to global course, leader

same past global But And is monitoring time, several particularly, the continue of market we to we’ll definitely, definitely, continue years, the will and to for the increase overseas. our So overseas channels the market. product year, progress market. on at continuously focus overseas planning offices, only. the market on we are China the – our In we’ll focus this establishing overseas market, sales and are the to the overseas research we go for including strategy on initiate the

platform, with question to second for your iron launch plan batteries EREV LFP, we have about no reasons. our two lithium for phosphate fact, in For

has requirement, right performance LFP of BEV. the First all, our on all different requirement a because compared now, the performance with EREV market meet cannot the

battery. of use hour kilowatt because less EREV Second is

will are researching And our So for kind therefore, the developing process even BEVs. we both batteries. not – significant Yes. we and use LFP, the the in step definitely, us. benefit be for next cost for development of of

we’ll LFP consider future models. for For BEV car sure, our

Lei Wang

the right. question last All expectations for And for over year? the this the deliveries

Kai Wang

Yes.

as I soon mentioned guidance, our we but and give Thank the – reach will per you. – network as as to month. it’s expand to early to XX,XXX think too Kevin full-year XX,XXX possible,

Lei Wang

Thank you.

Operator

new question from Please CITIC. you. of Thank ahead. Xu Yingbo The go is

Xu Yingbo

from The on Shanghai that expenses first expense. mentioned more We comes It keep that detail [Foreign us Research be is there. X,XXX And is noticed give language] Center. recent could staffs you And will that? question R&D there increasing. R&D second question about the

or will you. time expectation what two, one R&D five range year or years to next for be Thank maybe as expense? So,

Kai Wang

This is Kai speaking.

Regarding and for Center be R&D mirrored the models R&D center, about more also question Shanghai so it as definition R&D car the activities. activity, configuration advanced of will Beijing R&D

say, of team the let’s others. our, Regarding

more we we than of this to XXX total right up would reach So now, end like And for in year. XXX engineers to yes, that. altogether, have to, working

Johnny Tie Li

Yes. is Johnny. And this

For the of is model. our R&D, early XXXX’s the new XXXX, for stage

So reach expenses. RMB autonomous X this And autonomous new increasing will in driving of to R&D – R&D you. – we expect believe investment investment increase in the over at year, billion models, Thank be years. the and will we that, investment $X with will among will expense of half driving for the we half three will investments the least billion

Xu Yingbo

lot. a Thanks

Operator

Chang, for the as like And we our the of you. I’d please call are to to the remarks. turn Ms. reaching closing ahead. Janet call, end Thank go company conference over

Janet Chang

us today. again, once you for Thank with Sure. joining

today. to please If one. free Thank you Investor have good have contact Auto’s feel team. Li for all and Then, Relations that’s further you, questions, a

Li Auto (LI) 26 Feb 212020 Q4 Earnings call transcript