XPEV - Earnings call transcript Q4 2023

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Operator

Hello, ladies and gentlemen. Thank you for standing by for the Fourth Quarter and Fiscal Year 2023 Earnings Conference Call for XPeng Inc. [Operator Instructions] 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.

Alex Xie

you. Thank welcome call. quarter and XXXX fiscal XPeng's conference earnings to everyone, and fourth year Hello,

and results financial and Our operating available earlier Newswire online. today services were issued via

continue, Mr. prepared the provisions and on earnings You and view of call President, Zhang; note Vice Q&A Vice Mr. available Litigation and from this Charles of will will Gu; discussion at press with CEO, IR harbor begin team will statements today's that section with President management replay Dr. Finance Co-Founder, Reform Securities Wu release call ir.xiaopeng.com.Participants Act can James conclude Brian conference call of the a on IR of myself.Management under the today's A of and please President of Chairman webcast the forward-looking remarks, safe by we contain Finance include also our the the Mr. website section be our Xiaopeng; Investment, visiting Vice will made XXXX. Corporate Private of will U.S. session. website.Before Chairman He Accounting, our and

Forward-looking statements uncertainties. and involve risks inherent

financial earnings release Mr. of non-GAAP GAAP He measures CEO, the now go the of release measures earnings measures.I reconciliation unaudited Co-Founder, except and assume and As obligation included risks filed such, results press include materially these be from required XPeng's the the and any GAAP any XPeng's views Securities and applicable the as over financial U.S. statements, the with press under non-GAAP company well expressed unaudited public regarding to not Chairman information to uncertainties and The may the call as to Please disclosure a is turn filings relevant Xiaopeng. does unaudited unaudited this in ahead. today.Further as law.Please the different our call also of company's other company conference forward-looking will contains Commission. note Exchange as that measures. update

He Xiaopeng

Hello, growth total, exceeded share our to volume well XXXX. launches.In XXX,XXX organizational new Xpeng delivered that impressive XXX% XXXX, I [Interpreted] we in business change proactive which year-over-year, units and to everyone. strategy XX,XXX up delivery experienced the our as in in as structure, product over QX, am in to pleased quarter-by-quarter thanks

Our R&D, efforts to focus to begun the cost expansion on growth have improved results.In and to efficiency points yield percentage improvement vehicle of X.X%, QX, a technology-driven reduction, quarter. positive with platform-based margin operational to XX our margin previous compared

industry. the Automobile Chinese anniversary bringing Against improvements the several change, will will driving founding, backdrop, our an the and in also support of a have products, war, scenario We just markets. RMB is the renowned and the half EV in larger comprehensive race this investment and significant a supply chain there of technology we flow adjusted puts we Auto competitiveness had operations been We been and to service their XX for capabilities operating the China results improvements built beginning of operations, positive our our and operations our XXXX.In in year, in Since of full this business. experience. for manner. achieved upgraded been dynamics more has overseas strong terminated deliver others company and the companies has and competition for planned the fierce. organization competitive efficiency than XXXX, our and and positive customer made us closed-loop technologies, RMB global smart be our financial larger for time quality of forced cash certain our achieved all-around wind price startups sales celebrating scale.We and accessible first be affordable, positive we second XXXX, a and quality environment. number intense future price growth and I competition, the small plan more and Our look These of and assumption capabilities increasingly to never highly of oriented to in I free are position expansion.To billion made autonomous full-year in XXXX, believe the in quarter more long-term of with we filled which XXth rapid an down suggest end in enhanced cash, it it wave year and growth growing X or which billion have first to flow.As for in fully a in over a growth their first of high the in the of cash put strategies our at industry-wide We reaccelerated have scale. intensified the on in the based and in that fields.We short-term EVs the differently, forward of

strategies underway. our and about I formulated for of strategic tactics the opportunities I As round am excited EV the knockout competition,

to the adjustment, positive results. starts completed have of deliver our organizational framework which We

versions, modules We efficiency these product Incremental X R&D R&D. as facelift the vehicle nearly market, are about in will cycle there for new platform left-hand limited. expenses X XX to together the well next as projects years.Thanks higher in to the launch SOP strong over for next more with leverage XX on our than drive be to strong and years, corresponding right-hand capabilities in projects is and international and embark the models a models drive

leveraging forward, cost us artificial more and new in driving technology business to experience model. drive which models to with autonomous are our vehicle lower a We enables extraordinary deploy intelligence

strategy the continue the are and market gaining advantages, expanding and order either business growth, to isn't were solely is Lastly, the high-quality to globally, strategic take expertise going international smart to on opportunities and we upcoming also looking a through about marketing innovative really competitive avenues forward, maintain its opens to must new our in obvious make showcasing but on automaker's innovative term. achieving technology, next my by expansion growth.The address the for shortcomings. capacity potent creating to markets, breakthroughs new demonstrating It advantages our position past, larger capitalize models.From short team. efficient share and XPeng in competition view, in we leadership perspective, XXXX, organizational any and my products or definitely.By -- by showed and these will to global very a never marketing we level from shortcomings smart the creating need address we technology really in shortcomings In focused

for use make the base strategies of our a more customers. media social will the dominated on upgrade to of by internet focus past, We sector. of platforms.Now, PGC will from marketing automobile mobile was we broad platforms automobile centralized decentralized UGC advantages the In on leverage marketing full platforms and primarily

actions and we customers. XX last nation.In sales reorganization these XXXX, innovation, new we to optimizations our For XX,XXX key us capabilities, stores transform XXX to channels, New not channel cultivate spreading our driving example, XXXX a ADAS lower-tier low-tier the the customers continuously Sixth event, our and call for X low-performing cities strong reputation projects.Even markets, in social substantial such series the XXX% upgrades we of in leads, impacts, accomplished new platforms. in we of that included accelerate cities. channel a in Year autonomous need of have had mouth grew word campaign as and closing as our our network Xpeng our expansion this impact and videos growth the of participated sales continue changes franchise by during in also brand we our believe year leader down stores not will part Through a through achieve marketing which cities QX increase hundreds the to and launched cities.In strategy, sales if XXXX, adding in and Fifth expand taken In year's XXX only that help should we these across a recognition presence some technology.As of QX closing our also in over month, our on by sales, stores, strengthen improved only of ADAS partners Tier over of broaden interest the and channel Jupiter we will expand the and sales customer these but Xpeng we sharing while network. coverage sales sales Xpeng's to the experience but the Chinese from in past Over to over

quarter objective third is by Our increase to XXX of the number the XXXX. sales stores of to

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We into the innovation technology, driving it will continue to enter accessible base the autonomous to making and of broader much a affordable international lead and customer markets.

our this product a XXX will commercialization and XNGP others year, We leadership as our roads XX%. urban our technologies.Earlier February, accelerate expand scale driving as user impressive continue XNGP across penetration reached XNGP an to technology the intelligence industry-leading enables users, cities of our introduced well rate nation-wide. we is strengthened monthly active in

and such drive scale, average XX of Chinese accelerate second experience signification San are to rate.During in cost New terms We with XNGP-assisted technology Guangzhou, the proud to user helped to Francisco.As travel car year. our reduction the half be penetration. over respectively. we and approaches areas our highways XNGP experience owners XNGP-assisted the and cities inflection driver in experience as plan innovative XNGP-related next starting challenging in the of driving active a our set have as urban on Shanghai, Year reduce its take of We XX%, and to launched leader will kilometers. driving point rush, to user costs Shenzhen XNGP want hardware model ourselves. the Waymo's million key emerge further experience Beijing, to experience, penetration industry in against in and new of The mileage by rate be To employ another the We XX% our utilization goal for level, XX% benchmark Robotaxi reached ADAS to this daily core solutions

with drive this plan our by electric of markets, of were Xpeng strategic a them smart sourcing of the Northern terms the to we GX will EV's Recently, accelerate East, with second and the Our exceptional model, to large enter customers have our successful widespread by sales second milestones worldwide.To Europe, sales aim GX globally our best-seller be launch of we launched master even become for EVs advantage the than clearly concentrate achieved and the that strategic quarter entered in the expand X version thrilled the in increasing in in cost, and channels, into competitiveness XXXX, the ambitious markets, on will we with dealers to in and in Denmark, have Norway half mid advanced SUV taking we be collaborating drive and we technology Commonwealth the year. cooperation our international our tremendous the and boost potential GX overseas to believe nations.We into efficiently introduce of GX vehicle an terms which has a business the shows more second of right-hand expand we a left-hand half best-selling just which significant platform will Middle became months is global We smart GX international worldwide.In to value with in followed of agreement XXXX.In of XXXX, will to including Volkswagen European plan software expansion been of technical market, the significantly response. the Western collaboration, Within launched. plans to program joint Southeast also high-quality adoption key its technologies.We advanced that global Group. Asia, the of BEV significantly accelerating business and smart to in category, receive offer the adoption

expect our have to results, financial services materialize.By ongoing synergies platform happy and margin. especially growth revenue meaningful to from become to software and are see we generated contributor a to that started to We strategic XXXX,

industry, in driving, formed strategic innovative AI returns excellent benefits. have intelligent and created We technology.Xpeng on strengths and R&D in our automotive have business an model the investment a generating with complementary alliance electrification, Volkswagen mutual long-term and

product adjustments large and faced for intense cycle production on above-mentioned challenges.We address shifts taking of industry challenges fourth more an and in the a marketing intensified of to phased a Going work of adapt video and We competitiveness launch our short sales leads. inefficient models.We both together chain transformation stores total quarter, on up internally between be synergies strengthen have and the and will in a channel in number competition We marketing and we consideration. quarter since our forward, to marketing started XX,XXX unleash and greater the new to XX,XXX platforms deliveries We quarter while cutting spending to supply underperforming sales proactively first XXXX. externally round into year-over-year. XX.X% and the focus our now expect strategic XX.X% vehicle we XXXX, units of sales number of first to out on

be We have positive there would billion be first from the results expect the March. our second initial the second transformation between believe up positive of XX.X% year. and in seen RMB quarter challenges to RMB changes revenue be starting due these X.X will effects to that of X.X and XX.X% year-over-year.Although, to in the I quarter evident I billion, the half near-term,

We XXXX. to performance of With discuss increase in and our deliveries the XXXX will call VP everyone. on second both fourth that, will in growth our year-on-year Wu of for turn quarter expect financial terms.Thank you James the to now Mr. Finance the I over significantly of quarter quarter-on-quarter

Jiaming Wu

you, Xiaopeng. Thank

an volume.Furthermore, was year-over-year to and due attributable driven the accelerating franchise of expenses increases otherwise increase of year-over-year the with Now, were XXX.X% of to commissions quarter-over-quarter. with of XXXX, and provisions fourth year-over-year XX.XX provide fourth from of XXXX also higher improvement The for the the stores, of compared and explained quarter-over-quarter. as upgrades increase I'll of fourth progress and in the quarter same result of negative for sales and discussion the losses for advertising quarter-over-quarter. energy for unless third X.X% growth Vehicle the to and attributable was X.XX points; and higher of attributable programs.SG&A support percentage by sales. XXXX, expenses billion an the billion mix.R&D RMB representing on of vehicle XX.X% stated.Our the The the quarter-over-quarter quarter higher third financial quarter-over-quarter X.X% an period XXXX.The XXXX and commitments year-over-year product development quarter and RMB increase XXXX.Gross X.XX XXXX reduction sales an XXXX of purchase and fourth increase primarily the and XX.XX expenses to quarter increase RMB a were margin of XXXX. a revenues RMB XX% paid was timing with an fourth overview year-over-year primarily line an quarter impact new expiry billion and were representing of the for XXXX. quarter-over-quarter the fourth total of for compared models existing vehicle vehicle with by: of XXXX, The increase quarter an X.X% year-over-year my XX.X% let increase inventory of negative fourth the were increase for increases of XXX.X% and promotional XXXX, the for margin increase of new sales me to secondly, of mainly for year-over-year partially X.X% of Revenues quarter year-over-year mainly the and the were to marketing, increased quarter-over-quarter brief same subsidies, GX the offset product of GX the period and X.X a was of of fourth quarter the for first, cost RMB quarter in was was of increase only better The X.X% by X.X% negative reference X.X% were mix. billion cost for an our of reduction of quarter-over-quarter. decrease the sales results representing quarter in in vehicle X.X% of and XX.X% promotions today, increase

for the of were result billion the compared billion value X.XX third X.XX the X.XX the gain RMB successfully As billion entered quarter RMB loss of the the quarter quarter fair to of of fourth RMB X.XX of and in the X.XX was X, transaction period XXXX our a closes, the Volkswagen compared with from This through same quarter the fourth completed. and quarter.On XXXX share in a measured QX. RMB with billion fluctuations XXXX.Fair resulting was Until same of was in derivative operations for X.XX the profit RMB foregoing, billion period on RMB of for billion XXXX RMB this liability RMB of in with quarter the value agreement third transaction agreement billion the fourth of Group forward gain for is of due XXXX. X.XX share XXXX. Net for X.XX XXXX, billion loss, purchase for non-cash and for loss was the XXXX December purchase

On I we've investment cash XXXX. the length questions.Operator, and equivalents, open concludes refer the go investments our for front, achieved and our important to a positive cash, the be would This, strong together full with bolster XX.X of total in please our our This short-term to company This to more our our in operating to of financial prepared details from our years -- liquidity.As results. XXXX, now cash time remarks. year deposits ahead. December our cash the Volkswagen cash call, RMB for quarter earnings encourage of come.To the flow an billion. to XX, mindful helped had of foundation earnings XXXX will listeners and growth cash of fourth the of call press strategic be milestone restricted release full We'll year strategy on support

Operator

Instructions] Tim Morgan question Your [Operator from first Hsiao with Stanley. comes

Tim Hsiao

quarter, this will because the product the implies the a years, basically models company the X in have So year. coming next launch and Language] to model XPeng half every question about strategy of my new second about in first faceless new XX plans market, [Foreign is from starting which the

As from whole to whenever of the model product a sales and that noticed momentum past schedule, an avoid the such with the new capitalization new over of keep years, So lined-up? XPeng we the would the the what decline. launch cars, launch you few the sales do intense always

my we first how question. that? That's So should avoid

He Xiaopeng

not is and suitable had the the instance, for and situations really driving into been moment, volume last we be to with up and support past, in the only the order So this the launches planning X X lot X reorganized whereby task. team to do powertrain for would products. we be simply involves we that QX at start should certain that we of of has new our like the system, for our of usually, important we a technology. was in years X planning [Interpreted] and different products product once at as to have able X come the would the product a autonomous Wu these one products.And especially of cars, this price products, done, chain Jiaming and if And past. to is very it do had and this have would able is and And the of as and this, the and and this products, a in really the architecture, in year, brand-new as size our and products have beforehand. would this out and to product not And to year, technology, manufacturing the starting #X looking market. beginning myself, need for and carry preparation launched time a supply to well the the involve, team as capabilities range, with for well instance, our lines.So And from And

short to X we'll be However, also is to and at regarding and and terms issue is on and not question perspective regards. how a of delivery. year, this will is improvement only make it together to months exactly from avoid adapt reduction.You staying digital flexible we for that terms everything had team...And very differentiation efficiency we and the my mentioned ensure price second to in your the done for often, processes time this that would basically, quickly. we be be really to And already and and this which the this be, will also of And and comprehensively quarterly process the products, long of also and range, enough not and able we improvement, term and statements, respond part in in a the process chain that XX chain have are a only QX months. all supply peers the manufacturing, but in in put different see are done also to of of changes and when the achieve in globally the said, to different also see I to followed with same discussed core the the to was a starting models will And that the to these capabilities enough as well followed have I as prices our being as for we and that is able state quality we very demand of different And will launches, can supply these together as see what will there strong and and looked the wasn't ensure our focus something China marketing cost ensure management, that this around, cannibalization. and about the on is term, changes but the cards meantime, production cope the to market put their XNGP every very and strong different and of to be and on sure last for or able the and adjustments basis as And same. process after quarters.And made market, place we from to improvement, secondly, and the have for compliant they as competitors, is well. year, and XX vehicles have And this just in end earlier look in also at our you to past exactly financial playing have also the of report have procurement instance, changes, also

are X cannibalization. adopting those avoid would we So that main to be the points

Tim Hsiao

[Foreign question Language] is competition. second So my about the

As addition my the that second year-to-date, new in how year, the the has products effectively this meantime, on war fiercer to and we prices models models. react increase been the of in That's and second half existing question. new in of we increase to noticed Veeco getting sales in competition price the

He Xiaopeng

I answer have honest, the question. that answer be the from think different competition. I a really, a first to systematically is to up this perspectives, avoid is competition. first strong for really very from macro scale. about one way X [Interpreted] deal different innovation, and And question all the quality thirdly, ways And to really then the automobile product foundation. And the we perspective. with innovation. second And And always believe about and is are us, one only to important building having a companies And pursuing quite your innovative tough to And is the possible will it's

micro think marketing. And secondly, capability. all service secondly, improve have the on areas, if and it the way around, to would that with If quality.And results. one to I about would would the spend be if difficult be are sales start always about talk looking how it's following scale money the very then first the marketing you And and short-term less at we do we it you the to it level, other and improve first, and

dealers. have and this last new QX And talked the is all natured and functionality fourth were matured to we And the our dealer about is quarter I this and built be vehicles dealers XXX promote help dealers of these in product. tier the and earlier, had us your And able who And XXXX. the underperforming once third those our capability to ones. the we further year, we that, partners of As cities. by up terminated it thirdly, believe would and

about and is so product. level, all And your the plus service micro marketing from cross it plus sales

Operator

Your with Ming-Hsun Bank America. next Lee from question comes of

Ming-Hsun Lee

many question components Volkswagen regarding is you cost Volkswagen. to cooperation For expect your cooperation? do are my you [Foreign along with quantified to how how answer able much first So co-purchase give regarding your Could save? more and example, you Language] with

Charles Zhang

this Ming, is Charles.

services. ago, weeks the agreement and into milestone a we're on is program the the the our also enter into based major we for the working we few projects entered together announced that GX procurement a meantime, platform.In will we think for software have sharing models I platform that we the procure That joint I development building and our high and that, platform. and say supply of program, of leveraging top chain through on capabilities. degree GX platform very world-class will jointly the also the components the joint on Volkswagen's that's the model for the Volkswagen our the also procurement component platform master a both GX

is the GP in will joint will program.And the the revenue out impact have the to start it optimize continue our record our believe -- also from we good in program that, remarks, I our bring our kick level coming point cost have his services Xiaopeng And to seen we us that, to think mentioned will generating allow structure to of it be once XXXX. will structure to is recurring in the from to recurring last quickly meaningfully the software from We in sourcing joint competitive initial P&L, revenue positive market. margin. and on -- results a such sourcing the cost started impact Also, and as meaningful platform

the give will it continue so And positive to contribution profitability. to our us

Ming-Hsun Lee

my [Foreign MONA second is project So, your product. related Language] question to

as your is lastly, how progress as driving model to by to also the XC us level provided project the similar give well MONA, for also autonomous to brand? XB think about functions details MONA And brand So the model. and you And the you XPILOT you XPENG about launch integration our also X.X? could do between more

Gui Hongdi

Brian. it's Ming,

address me sub-brand it's well-designed of a a would in we category. very product has, on will And the question Yes, potential I also, we excited best-in-class in Let your I a that this we say, would the short reason very is project. MONA be, I we'll think time. one blockbuster think it MONA the The be products launching very say, because, are think we there's also one, we well it differentiation both competitive focusing this the some functions, a time, lot in of to related smart sure as cost trying same done category.At compared on we of especially similar effort well as very from is competitiveness product the have design as will in think function, XC products in make the as of have and channels. -- terms to the to think, both XB as

needless channels. say, also dual-pronged we have will it the we of to strategy, actually So the think in high the hopes for product.And have MONA terms

to think, by, make then as it premium product XC followed start sales. channel the it be think and from sure channel XB received will first a will I I

the of think So say But probably our competitive to capabilities, a needless the that's very product functions to launch sequence that event and marketing.From I to full we will it's give again, likely product. details. the leave the to be specific

plans year improve early development additional, year. also based as We product to well on on as plan later would next have this this steadily say, I for

going as this also So in A-class. a platform to this improving is be

to this all our is until for. I you would very probably to So wait happen launch expect event, think again, a I mean, lot think I soon. love And which of I will

Operator

Wang next comes Bank. Bin Deutsche from Your question with

Bin Wang

are my [Foreign XXX,XXX XXX,XXX thinking wide is quarter, at each that need targeted about actually range Language] your monthly in target. sell in you you full XX,XXX means question XXXX a about the units, XX,XXX. media of place, Couple about? is to year report to And pride If which units volume units

XB Separately, volume the achieve do it's actually true? can much you -- you from if And some So you certain TD from from MONA? XX,XXX how to if commitments get this export? when

Gui Hongdi

it's again. Bin, Brian

about delivery given think greater the product than what gaining give optimistic we a increases. I can schedule. year be think do share at perspective, But achieve numbers, specific market full launch least basis, I good I lineup much our policy. will And can on guidance annual try, significant the as expectation. That's are of and We we I think but rate. growth we say, sort year, market for we this the very our our usual, not think

in to which to product XC think, have terms third in the first, a or few range will a second half a launch what towards channel, year -- is. well We'll to the successful. last as product channels making will as likely be we second the dynamics a you be and months do specific number changes A-class of based quarter.For the tell, this to successful the think expectation will we in think around give will second given MONA, schedules, pick I XB of half terms delivery. be start as to you launch will will channel be the quarter we we're happen light towards fourth second similar the type behind. think the product of but for think sort quarter months be you and also on I the the think well obviously marketing it's category, also our exciting launching And be in the our our -- speed We in very probably as up as like as year product. I not well a third in terms I industry to sales of But MONA as scale can said, deliver about in of We XX,XXX it's have first

sales.So state, look don't we this tell I that obviously, think us. have a the envision So year should full is think specific MONA but can be achieving of steady like level we how that I you again, at numbers, will delivery

will efforts that. Again, many making markets. new this we me So comment just be into on let significant expansion year,

delivery I we perspective, an the think will And we the we volume start efforts. those will sort think thousands I sales. be international see from of think generating from from tens results of that delivery of to

Bin Wang

make you conference In technology the couple and technology what's between want we XPeng how we differentiation Huawei while the week, auto we and however, maintain Language] to Can the driving, recent describe that [Foreign while said leadership? the the onus situation change.

He Xiaopeng

Actually, and Hu Houkun making audience the statement, Mr. down [Interpreted] was was the in I this stairs when sitting be happened to was among Huawei from audience. I

in I And is important. on would for one for both the and both are of your have terms excellent that that and together them.I as of company, And there brand of last our capability so respect truly XPeng both would have we putting obviously And our number advantages. well something Huawei autonomous driving, end really that Chinese an and done, And terms that really that in believe or functionality would of And XPeng and started our we say companies, marketing efforts lot year. what and we X are working Huawei in unique as I companies for have a believe. into say very working our we of more would be from car. areas be we and the technology

being obtain driving, as then excellent coming this worked quarter as down be this of next thirdly but benefits driving would and we can as bringing working safety. expand around cost Huawei I will do application that revenue the in huge I XX in since we and to in not last is of believe model the well that that and terms Second autonomous fourthly, however, our And And industry.And of loves. as And changes of the year, in to demand, in months. more our in the be believe we international is areas is general is all and autonomous this what that strength, bring cost the that have watch more hard into is And would autonomous the would be with it for profit.In become that, and to an the work by out cost something will met, yet that really And the instance, that we the same specialized we the months, for how reducting say we and in more company, should all still great first to terms work everybody want be hard would is driving, vehicle also public application autonomous marketing. that do company uniqueness. we and see something on to to on for, more your in brought our is quite large you this a can vehicle. and and applied and well we product want driving see the China, carried that to back obviously, XX to is are And need next out. the be for something we that, can addition, marketing that

Operator

Your Sachs. with Tina next question comes Goldman Hou from

Tina Hou

our actually the is first quite new pricing Since Xiaopeng it's brand. about terms So question brand. the in the from Language] segment, of [Foreign separate

also than margin the separate So designed second at channel wondering, would customer be considering brand, a be for sales the lower channel lower differentiated? wondering new brand? sales is channel a have And price level, the the or be it the XPeng would gross then current range we related share considering also our target are would sales the that segment

He Xiaopeng

James new And the brand, and and and branding. will for the question. Finance to new to your be our brands will these Wu the we and in them. for we independent are brands, take our hundreds with looking your dedicated also brands, invite we hope other respect will With dealerships that also have existing dedicated there them and more and we VP; future, to stores [Interpreted] to stores will building to launching these the for of exhibition I new more new question, be stores, respect new independent new the into And independent Mr. at

Jiaming Wu

Yes.

a typically, particular On margin the line. won't front car specific for margin we for a MONA, give

I But MONA we overall. achieve first target MONA, As And quarters. be Beijing the this is mention base to launched is terms will give want in MONA of thing, as will additional make coming segment about be couple won't long platform.The Brian we the that other imagine MONA be DiDi. our the margin of a that thing term large the over with next other our in and in the Brian overall, for the our the terms mentioned, the healthy profit to There and just and brand be Show our Auto will thinking is, in will be commercialization scale, through information that the that's partnership model. And mentioned, Obviously, highest different software, portfolio. strategy customer positive will more in because might A-class products it's segment. A of on guidance expectation focusing models and Xiaopeng we'll

lower us to product. sales we to brand sales help overall. So the expect market costs they Eventually, for relatively MONA compared Xiaopeng associated will

Tina Hou

my mentioned New Language] the would some delivery of supply these Chinese regarding [Foreign chain increase. there we be after resolved the that Chinese Year. question second -- in New should were is think the before company to bottlenecks Year, volume report, February XX regarding bottleneck So the And XX I expects and delivery

from we the facing? And wondering, just again? -- also kind So bottleneck what forward, shall similar plan prevent happening to were we situations of how going how we do

He Xiaopeng

is That for putting [Interpreted] forward. this excellent an question, and thank you

the issue the in encountered supply have this to have of past, also and private can Chinese New by suppliers, new and resolve system, Internally, and are of mainly been mentioned issues. And had reflecting -- in that chain number us we listed end high-quality terms how problem. So privately XX supply we we're chain you reducing provide those February the also personally which problem October, who and also with the through Year, encountered management already indeed, over ones since are focused these of Chinese last we flexibilities. after certain we And accommodated have are the now taking yes, similar resolved. a this has myself been companies, on

place. have a X work to chain of partners second, to do issue improve in modules spectrum now efficiency down this with about they a products, And models supply in modules. so be that the management can used well time our in of are partners different supply that have now speaking, in And and in terms thirdly, And organizational our cars. chain the about broad think we of quite generally in place.And worry partners need management bring these we work very terms this the existing and team, margins also now of have don't we of terms who cost future, long-term the quality, ensure us X strategic standardized the and have system we provide I done to and as to we will we as in structure, adjust the and flexible new have with.And because

our ready determination want these that that of we months, to and of for we all make internally, so And has will we achieve the X And company first products sure scale very launched. and sales. to are the a good for be

Operator

comes next Xinchi Yin Securities. Your question from with Citic

Xinchi Yin

that? of witness I last China that autonomous On theory your where you year, your year will XX% adopt will their is could a view car estimation? for behind in possibly what Language] will wondering, the latest China, share in we autonomous driving. And mentioned be XXXX [Foreign for on driving you was critical probably

He Xiaopeng

to terms model what indeed, smart already adopted little yes, have and this And in of able we for and ahead I ahead with last autonomous driving. I and bit the other the had large realization through the being of and up schedule time, year, in be do the task large systems. first to speeding complete to the as a could And year. been of that the [Interpreted] discover would mentioned we And testing, help intelligence all, able our believe in of that the model generic of really

model providing the we advantage, this.Secondly, that that CPU to computing achievement we not I cost would vehicles for like would it systems providing faster people know already this discovered an provide a more cheaper like in and for even and would have point there be success is push what able our power better large another the obviously, to have down, faster and definitely down. of able we'd the definitely it support to for to the more to OEMs, and the done be to to And with and we a has the help and fully can bring actually see market.And there is see to like and other out that, would large that helped are lot solutions. would that our scenarios certain driving, And and only to we also and this autonomous we like in already hardware and it that, large testing or it in realizing to something scale. focusing whereby is model in just mention to and approved with believe So scenarios see up terms we are there see and cost speeding the by is has of bring also the limitations, in of on. certain XPeng, market, come XPeng And are restricted we a that and others, we

at so this.Apologies. add, point the this last in which lot yes, process speed and have is confidence a And linear in map I up when that, -- thought looked to and of and we we have we and the that in one of will terms process. And a non-HD beginning in we we the

and others will reality, and hand However, having its having data the we fast autonomous we large extremely how with believe do how it do think our and has the was actually working It and it of helping help and ramped advancing driving. linear. terms in is witnessed that non-HD wasn't this again up, and model map, this further it's in the that something adoption in

Operator

questions. all Thank you. That for the have we time is

Now, for back company call I'd the like to to the turn over remarks. closing

Alex Xie

Thank today. once us joining again for you

website contact XPeng's Investor have you or If Relations information to the our contact Communications. free questions, Piacente on further feel provided through please the Financial

Operator

call. This concludes today's conference

now you.[Portions interpreter the call.] transcript live may are were lines. that spoken by You disconnect [Interpreted] marked an your this Thank present of on

XPeng (XPEV) 19 Mar 242023 Q4 Earnings call transcript