Good morning and good evening, everyone. Welcome to NIO's first quarter 2026 earnings conference call.

The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website. On today's call, we have Mr.

William Li, Founder, Chairman of the Board, and Chief Executive Officer; and Ms. Stanley Qu, Chief Financial Officer.

Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today.

Further information regarding risks and uncertainties is included in certain filings of the company with the U.S. Securities and Exchange Commission, the Stock Exchange of Hong Kong Limited, and the Singapore Exchange Securities Trading Limited.

The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that NIO's earnings press release and this conference call include discussions of unaudited GAAP financial information, as well as unaudited non-GAAP financial measures.

Please refer to NIO's press release, which contains a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures. With that, I will now turn the call over to our CEO, Mr.

William Li. William, please go ahead.

大家好，非常感谢各位参加蔚来2026年第一季度的业绩沟通会议。

Hello, everyone, and thank you for joining NIO Inc.' s 2026 Q1 earnings call.

2026年第一季度，公司共计交付83,465辆智能电动汽车，同比增长98.3%。其中，蔚来品牌交付新车58,543台，稳居中国成交价30万元以上纯电市场销量冠军。乐道品牌交付新车13,339台，持续释放增长潜力。萤火虫品牌交付新车11,583台，在高端小车市场排名第一。

In Q1 2026, the company delivered a total of 83,465 smart EVs, representing a year-over-year increase of 98.3%. Breaking it down by brand, the NIO brand delivered 58,543 vehicles, maintaining its leadership in China's BEV segment priced above RMB300,000.

The ONVO brand delivered 13,339 vehicles, continuing to unlock its growth potential. The Firefly brand delivered 11,583 vehicles, ranking number one in China's high-end small car segment.

2026年4月，公司交付了29,356辆智能电动汽车，同比增长22.8%。从二季度开始，三大品牌进入新产品密集发布和交付期，将驱动总体交付量保持高速增长。我们预计第二季度的总交付量将在11万至11.5万辆之间，同比增长52.7%至59.6%。

In April, the company delivered 29,356 vehicles, up 22.8% year-over-year. Starting Q2, the three brands have entered an intensive product launch and delivery cycle, which is expected to support continued rapid delivery growth.

We expect the total deliveries in Q2 to range between 11,000 and 11,500 units, representing year-over-year growth of 50. --

52.7% to 59.6%. 财务表现方面，第一季度公司综合毛利率达19%。其中，得益于高毛利车型占比提升，整车毛利率达18.8%，实现连续四个季度环比增长。服务与社区相关业务的其他销售毛利率达到20.6%，创下四年来新高。规模及盈利表现全面提升。

On the financial side, the company's gross margin was 19% in Q1. Driven by a higher contribution from higher-margin products, vehicle margin came in at 18.8%, improving quarter-over-quarter for the fourth consecutive quarter.

Margin for other sales, mainly services and community-related businesses, reached 20.6%, the highest level in the past four years, with both business scale and profitability achieving improvement.

第一季度，公司再次实现Non-GAAP经营利润的盈利，并实现正向经营现金流。现金储备进一步提升至482亿元。

In Q1, the company maintained positive non-GAAP operating profit and positive operating cash flow, where cash reserves further increased to RMB48.2 billion. 蔚来坚持纯电技术路线，持续强化体系创新能力。已通过技术、产品、服务、社区构建差异化的竞争优势。基于此，三大品牌产品竞争力和综合体验受到各自目标用户群体的广泛认可。

NIO has remained committed to the BEV roadmap while continuously strengthening its systemic innovation capabilities. Over the years, the company has built distinctive competitiveness across technology, products, services, and user community operations.

Supported by these capabilities, the products and overall experiences of NIO, ONVO, and Firefly have gained broad acclamation among their respective target users.

蔚来品牌方面，全新ES8自2025年9月底开启交付以来，历时215天即完成第10万台的交付，刷新中国乘用车市场40万元以上车型最快交付记录。截至今年4月，全新ES8已经连续5个月获得大型SUV和40万元以上车型不分能源形式的销量冠军。4月初，2026款ES6、EC6、ET5、ET5T重磅上市并交付，以更全面的产品力满足用户多样化的需求。4月9日，我们进行了科技行政旗舰SUV蔚来ES9的产品和技术发布。ES9搭载众多行业领先首发技术、同级领先配置，将重新定义行政旗舰SUV的标准，引领该市场、该细分市场进入纯电时代。ES9将于5月27日上市交付。我们有信心ES9能够引领50万元以上科技行政旗舰SUV市场。

For the NIO brand, since delivery began in late September 2025, the all-new ES8 reached its 100,000 delivery milestone in just 215 days, setting a new delivery record among passenger vehicles priced above RMB400,000 in China. As of April this year, the all-new ES8 had remained number one in both the large SUV segment and the passenger vehicle segment priced above RMB400,000 for five consecutive months, regardless of powertrain type.

In early April, the 2026 ES6, EC6, ET5, and ET5T were launched and delivered, further addressing evolving user needs through enhanced product offerings. On April 9, we officially unveiled the NIO ES9, our flagship executive SUV.

The ES9 integrates multiple industry-first technologies and class-leading features, redefining the standards of executive flagship SUVs and leading the segment into the BEV era. The ES9 will officially launch and begin deliveries on May 27, and we are confident that the ES9 will set a new benchmark in the flagship executive SUV market priced above RMB500,000.

乐道品牌方面，L90在第一季度市场表现持续优异，稳居成交价20到30万元区间大型SUV的销量冠军。今年，乐道品牌将在产品迭代、核心技术上实现全面进阶。目前，2026款乐道L90已上市交付。升级后，L90搭载蔚来自研自驾芯片神玑NX9031、蔚来世界模型以及自研整车全域操作系统SkyOS·天枢。5月15日，智能双舱大五座旗舰SUV乐道L80正式上市并开启交付。乐道L80是大五座SUV市场的革新之作，是目前国内装载空间表现最强的大五座SUV。凭借技术与空间场景创新，将满足大五座SUV的大五座用户的多元化场景需求。另外，新款L60也将于5月底亮相。新款将在外观设计、智能化配置等方面进行升级，实现车型产品力的进一步提升。 For the ONVO brand, the L90 continued its strong market momentum in Q1 2026, ranking number one in the large SUV segment priced between RMB200,000 and RMB300,000.

This year, ONVO will achieve comprehensive upgrades in both products as well as core technologies. The 2026 L90 has already been officially launched and delivered.

The upgraded L90 now features NIO's in-house developed NX9031 smart driving chip, NIO World Model, and the SkyOS full-domain vehicle operating system. On May 15, the ONVO L80, a flagship large five-seat SUV with an innovative frunk and trunk layout, was officially launched and delivered.

The L80 is a breakthrough product in the large five-seat SUV market and currently offers the largest cargo capacity among five-seat SUVs in China. Through innovative space and scenario-based lifestyle solutions, the L80 supports a wide range of scenarios for large five-seat SUV users.

In addition, the new L60 will make its debut in late May. The updated model will feature upgrades in exterior design and smart features, further enhancing its competitiveness.

萤火虫品牌方面，2026款焕新升级款已在二季度开启交付，在动力配置及智能体验上全面优化。萤火虫品牌将持续通过推出限量特别版车型，强化独特的品牌调性。

For the Firefly brand, the refreshed model has already started deliveries in Q2, bringing comprehensive upgrades in powertrain performance and smart experiences. Going forward, Firefly will continue to introduce limited-edition models to further strengthen its distinctive brand identity.

智能驾驶技术及体验方面，今年初，我们正式向用户推送了蔚来世界模型NWM的全新版本。通过世界模型NWM加闭环强化学习的领先技术架构，显著优化全域领航辅助体验。蔚来世界模型的最新版本推送后的一个季度，城区领航辅助的行驶里程环比提升92%，使用时长的占比环比提升116%。目前，该技术架构也赋能了乐道新产品的自驾体验。6月，蔚来和乐道都将迎来蔚来世界模型NWM新版本升级，包括行车、泊车、主动安全在内的全场景自驾体验将继续得到显著提升。

On smart driving, earlier this year, we officially rolled out a major new version of NIO World Model, or NWM. Powered by the advanced architecture featuring the world model and closed-loop reinforcement learning, the new version significantly enhanced the full-scenario Navigate on Pilot experience.

Within one quarter of the rollout, urban NOP mileage increased by 92% quarter-over-quarter, while the proportion of smart driving usage time increased by 116%. Far, the smart driving system powered by NWM has been introduced across ONVO's new products.

In June, both NIO and ONVO users will receive the next major NWM upgrade, bringing noticeable improvements across driving, parking, and active safety scenarios.

销售网络方面，截至目前，我们开设了168家蔚来中心和389家蔚来空间，乐道门店数量达430家。服务网络方面，我们已开设了408家服务中心和90家交付中心。我们正持续优化销售服务网络布局，依托三品牌高效协同的Sky门店模式，扩大市场覆盖范围，增强渠道布局深度与密度。

In terms of sales and service networks, the company now operates 168 NIO Houses, 389 NIO Spaces, 430 ONVO stores, as well as 408 service centers and 90 delivery centers. We continue to optimize our sales and service network layout through the highly coordinated Sky store model, expanding market coverage while strengthening local presence and increasing network density.

充换电网络方面，截至目前，我们全球已经累计布局3,916座换电站，且已累计建成超过28,000根超充桩和目的地充电桩。5月10日，蔚来ES9顺利完成1万公里最短用时挑战，全程仅耗时94小时19分11秒，成功刷新行业纪录，充分验证了换电模式可靠、高效、便捷的核心优势。

As of now, the company has 3,916 Power Swap Stations worldwide, along with more than 28,000 Power Chargers and destination chargers. On May 10, the NIO ES9 successfully completed the 10,000-kilometer challenge in just 94 hours, 19 minutes, and 11 seconds, setting a new record among BEVs in China.

This further demonstrated the reliability, efficiency, and convenience of battery swap.

5月20日，蔚来发布2025年环境、社会及公司治理报告，并披露温室气体减排目标，以2023年为基准，至2035年单车全生命周期的碳足迹目标降低43%。我们将继续通过提供高性能智能电动汽车与极致的用户体验，与用户、合作伙伴共创可持续和更美好的未来。

On May 20, the company released its 2025 Environmental, Social, and Governance Report and announced its greenhouse gas emissions reduction target, aiming to reduce the carbon footprint per vehicle by 43% by 2035 from the 2022 base 2023 baseline. By delivering the high-performance smart EVs and exceptional user experiences, we aim to build a sustainable and brighter future together with our users and partners.

经过11年长期投入与坚持，公司围绕智能电动汽车核心技术构建了12大全栈自研体系，并逐步形成了覆盖研发、供应链、制造、质量、能源和服务等领域的体系创新能力。这不仅标志着公司已具备持续推出创新产品的能力，引领行业发展的能力，更是品牌持续向上、保持长期竞争力的核心来源。目前，蔚来、乐道、萤火虫已树立清晰的市场定位，核心产品在各自细分市场占有率稳步提升。我们对达成今年的经营目标并实现更长期的持续发展充满信心。

After 11 years of long-term investment and persistence, the company has built 12 full-stack technology capabilities around the core technologies of smart EVs. At the same time, we have gradually established systemic innovation capabilities spanning R&D, supply chain, manufacturing, quality, power services, and user services.

These capabilities not only enable us to continuously launch innovative products and lead industry development, but also serve as the core foundation for our continued brand development and long-term competitiveness. Today, NIO, ONVO, and Firefly have each established clear market positioning, with their core products steadily increasing market share in their respective segments.

We are confident in achieving our business targets for the year and delivering sustainable growth beyond 2026.

感谢大家的支持。现在，Stanley将为大家介绍2026年第一季度的财务业绩。有请Stanley。

Thank you for your support. With that, I will now turn the call over to Stanley for Q1's financial details.

Over to you, Stanley.

Thank you, William. Let's now review our key financial results for the first quarter of 2026.

Our total revenues reached RMB25.5 billion, up 112.2% year-over-year and down 26.3% quarter-over-quarter. Vehicle sales were RMB22.8 billion, up 129.2% year-over-year and down 27.9% quarter-over-quarter.

The year-over-year growth was mainly due to increased deliveries and a higher average selling price driven by positive product mix effect. The quarter-over-quarter decrease was mainly due to fewer deliveries.

Other sales were RMB2.7 billion, up 31.2% year-over-year and down 9.7% quarter-over-quarter. The year-over-year growth was driven by increased sales of parts, accessories, and after-sales vehicle services, and provision of power solutions, along with a rise in sales of auto financing services.

The quarter-over-quarter decrease was due to decrease in revenues from technical R&D services and used car sales. Looking at margins, vehicle margin was 18.8% compared with 10.2% in Q1 last year and 18.1% last quarter.

The year-over-year and quarter-over-quarter improvements were driven by a more favorable product mix. Other sales margin reached a record high of 20.6% in recent four years, reflecting the continuing profitability improvements in our user base driven service and community-related businesses.

With the improvement in both vehicle and other sales margin, overall gross margin increased to 19% compared with 7.6% in Q1 last year and 17.5% last quarter. Turning to OPEX, R&D expenses were RMB1.9 billion, decreased 40.7% year-over-year and 7% quarter-over-quarter.

The year-over-year decrease was mainly driven by lower personnel costs in R&D functions due to organizational optimization, reduced design and development costs from different development stages, and improved operational efficiency. The quarter-over-quarter decrease was also mainly due to lower design and development costs from different development stages and improved operational efficiencies.

SG&A expenses were RMB3.5 billion, decreased 20.5% year-over-year and 1.1% quarter-over-quarter. The year-over-year decrease was mainly driven by lower personnel costs and related expenses in marketing and other supporting functions due to organizational optimization, as well as reduced sales and marketing activities.

The quarter-over-quarter SG&A expenses stayed stable. Loss from operations was RMB0.3 billion, compared with loss from operations of RMB6.4 billion in Q1 last year and profit from operations of RMB0.8 billion last quarter.

Excluding share-based compensation expenses, adjusted profit from operations was RMB66.8 million. Net loss was RMB0.3 billion, compared with net loss of RMB6.8 billion in Q1 last year and net profit of RMB0.3 billion last quarter.

Excluding share-based compensation expenses, adjusted net profit was RMB43.5 million. Furthermore, we generated positive operating cash flow this quarter and ended the quarter with RMB48.2 billion in total cash and cash equivalents, restricted cash, short-term investment, and long-term time deposits.

That wraps up our prepared remarks. For more information and details of our unaudited first quarter financial results, please refer to our earnings press release.

Now, I will turn the call over to the operator to start our Q&A session. Operator, please.

Thank you. Congratulations for the great results.

I've got two questions. The first one is about the ES9.

Since that will launch next week, can you share with the color for the order flow during the pre-sale period? Do you see the ES9 monthly volume in the next several months?

What's the roughly monthly volume guidance? Did that ES9 impact the ES8 order flow?

That's my first question. Second question is about the gross margin.

Can you provide the second quarter gross margin guidance, given you have a better volume and also facing some of the cost increase, such as memory? Basically, what's your outlook for the gross margin in the next several quarters?

Thank you.

好，谢谢。ES9的话呢，我们在27号——谢谢王斌。ES9我们在27号的话呢，会正式的开上市发布会，然后我们会即可开启交付。那目前来讲的话呢，因为ES9它是从这个技术含量还有我们整个的设计，不管是造型还是内饰啊，都得到了用户的一个高度认可。我们5月11号呢已经开启了全国的试驾。那订单呢应该说还是非常强劲的，特别是试驾后，开启试驾后，日均的预订单呢较试驾前又上了一个台阶。

Thank you for the question. Regarding your question on the ES9, we will officially launch and deliver the new ES9 on May 27.

Since the pre-launch of the ES9, its technology, as well as its exterior and interior design, are well recognized and well received by the market and our users. We started the test drive of ES9 from May 11, and after the test drive, we also witnessed a growing momentum of the order intake on the model.

当然我们因为这个不太会去对具体的这个每个月的销量去给那么细的一个指引，但是我们对于它在50万元以上的这个行政SUV的市场，这个表现呢是非常有信心的。那从一个纯电的这个市场的角度，毫无疑问它会这个改变这个整个这个大——这个50万元以上的这个市场的SUV的一个竞争的格局。对它的销量我们都非常有信心。

Of course, for us, we seldom disclose the specific order momentum or order intake for the new models. However, we do have confidence in its overall performance in the executive flagship SUV segment above RMB500,000 in China.

We also believe that it is going to change the landscape of the battery electric vehicle segment above RMB500,000. Overall speaking, we are confident in its competitiveness.

另外我们很高兴看到ES9发布后，从4月9号我们产品技术发布后，它不仅是没有分流ES8的订单，反而是给ES8带来了非常正面的影响。ES9预售和开启试驾以来呢，我们整个的到店客流是增加了很多啊，很多以前对蔚来没有这个了解的用户，因为ES9到店了。那么这些用户在体验比较两款车以后，那有一些用户会认为ES8的尺寸和用车的场景更符合自己的需求，所以我们ES8近期的订单表现是非常好的。ES9亮相以后，ES8平均的周度订单是比前几周增长接近30%。5月11号ES9开启试驾后的一周，ES8的订单的这个环比是进一步增加了20%。 Also,

since the pre-launch of the ES9, we actually didn't see that the launch of the ES9 is diluting or cannibalizing the focus or even the attention to the ES8. Instead, it is generating positive impact on the attention and the order intake of the ES8.

Especially after we had the pre-launch and also test drive started for the ES9, we have welcomed a lot of in-store visits and traffic. Many of them maybe didn't know about the NIO brand or our products.

After they were in the store, by experiencing and comparing between the ES9 and the ES8, some of them find that the dimensions and also the use cases of the ES8 may be a better match for them. In that case, we have actually witnessed the increase in the order intake of the ES8 after the pre-launch of the ES9.

One week after the ES9 launch, actually the order intake for the ES8 increased by 30%. Starting -- since the test drive started from May 11, within one week, the week-over-week ES8 order intake increased by 20%.

那5月份至今的这个20天的话呢，我们ES8的订单是去年10月份以来的新高。这个可以说是ES8是跨越了这个新车效应的死亡谷，因为我们前期的存量订单交完了以后，我们新增的订单能够保证它仍然在一个非常高的这么一个销量的位置。当然这个前——这个是在ES9本身的订单非常强劲的情况下去实现的。所以也能看出来我们这两款车的这种定位啊，它这个区隔还是非常成功的。ES9这个科技行政旗舰SUV，它核心是对标像宝马的X7啊、奔驰GLS啊，这样一些传统的燃油的行政SUV啊。那么ES8呢它是个全场景的SUV的旗舰，它面向的场景是更加的丰富，既能商务使用，也能够家庭出行。所以这两款车的定位啊是非常互补的，它的价格呢也有一定的区隔，所以我们还是非常看——非常欣喜的看到这两款车在各自的细分市场都吸引了他们这个、他们的这个目标用户。

In the first 20 days of May, actually the order intake on the ES8 has created a new history high since October, which is the ES8 launch last year. We are actually -- after we have been digesting the order backlogs on the ES8, we have also maintained a pretty stable and strong order intake on the ES8 without compromising on the strong order intake for the ES9.

By having the strong order performance for both models, we can see the positioning of these two products are quite distinguished or differentiated from each other. ES9 is more of a flagship executive SUV, well, it is more competing with the conventional combustion engine executive flagship SUVs like BMW X7 or Mercedes GLS, where for the ES8, it is more of a all-around SUV that is catering both business scenarios as well as family purposes.

These two products are complementing each other, while pricewise they are well differentiated. We are happy to see that both products are well received in their respective segment.

嗨，王斌。我们在第一季度实现了18.8%的这个整车毛利率。跟同比和环比相比呢都还是一个不错的一个成绩。当然这里面呢主要是我们在第一季度高毛利车型的占比还是非常高的，尤其是ES8，整个的占比超过了50%。那ES8的毛利率呢还是维持在比较高的这个水平，在第一季度也还是超过了20%。那第二个呢就是我们在第一季度材料成本上涨的因素带来的这个风险呢还没有完全、完全显现，因为我们还有一部分的这个材料的库存来抵消了这样的一上升的风险。当然我们从二季度和这个全年来看呢，其实从今年我们、我们这个、我相信大家都注意到，从年初开始的这样的大宗材料的涨价，其实带来的成本压力还是非常大的。那这里面包括内存的价格的上涨，以及这个电池的主要原材料，那碳酸锂、镍钴锰的价格的上涨，以及说我们整车会用到的比较多的这个铜和铝，其实都会有或多或少的这个上涨。综合来看呢，平均下来每台车的这个成本的压力其实超过了1万元。那当然从我们整个的公司来讲呢，我们还是目标希望能够把整车的综合的毛利维持在17%到18%。那这里面呢……

Thank you for the question. Regarding your question on the gross margin, in Q1, we have achieved the vehicle margin of 18.8%, achieving quite good increments from both year-over-year as well as quarter-over-quarter.

In Q1, the increase in the vehicle margin is mainly because of the higher contribution by the higher-margin models, especially the ES8 contributing 50% of the margin, where ES8 itself has over 20% vehicle margin in Q1. Also in the meantime, although there are rising cost pressure because of the rising material costs, however, our advanced inventories on such parts and components have partially offset such pressure in Q1.

In terms of the Q2 and the full year, as you may have noticed that there is the rising material cost pressure facing by the entire industry, including the memory chips, battery materials like the carbon -- lithium carbonate, as well as NCM, and also copper and aluminum raw materials. Starting Q2 and beyond, on average, the cost impact per unit is around 10,000, 10,000 or more than RMB10,000.

For the full year, the company still aims to achieve a vehicle margin of around 17%

to 18%. 这里面呢我们会有以下的这些工作去、去作：一个呢就是刚刚William也介绍我们的这个高价格、高毛利的车型ES8、ES9，在整个的这个销售里面的这个占比还是会保持比较高的这个水平，那会带来一个比较高的这样的一毛利的占比；第二个呢就是其他车型我们也会确保就是促销政策的稳定，我们不会简单地去做这个以价换量的工作；那第三个方面呢，我们也还是会持续地协同我们供应链的合作伙伴，采取包括像工程优化、这个效率提升、商务谈判等各种方式吧，来对冲这个刚刚讲的各种成本上涨带来的这个影响。所以总体来说呢，我们整个的Q2和全年的目标还是要希望能够实现17%到18%的综合的整车毛利率。

To achieve a Q2 and the full year vehicle margin of 17% to 18%, we will be taking several actions. The first is to further increase the product mix of products with higher prices and also higher margin contributions, like the ES8 and the ES9.

For other products with moderate margin, we will also maintain a stable pricing and also promotional policies. We will not compromise on the margin performance of such cars for the sake of a volume contribution.

Second and thirdly, we will also work closely with our supply chain partners to promote the engineering improvement, efficiency improvement, as well as commercial negotiations to together mitigate the cost of pressure. With that, we will target for a Q2 and a full year vehicle margin of around 17%

to 18%. 好，谢谢王斌。

Okay.

Thank you very much.

Hi, this is Tim Hsiao from Morgan Stanley. Thanks for taking my questions, and congratulations on another solid quarter.

I have two questions. The first question is about the vehicle sales, because we noticed that sales of the 8 and 9 series large SUV are expected to likely more than triple YoY this year, while the rest of the lineup is likely to see roughly 20% YoY decline under our 40% to 50% full year volume guidance.

Once the growth of the 8 and 9 series is fully unfolded and the group's total volume might approach a 500,000 units target, how does NIO plan to reboost the growth of the subsequent models, for example, a 5, 6, 7 series, which are likely to face greater competition in the market? That's my first question.

好，谢谢Tim。对，今年我们的整个的增长这里也看到了我们从这个新产品，特别是高价的这个新的产品，这个我们还是这个对全年的增长还是非常好的一个支持，量的增长以及毛利的增长，我们都是非常有信心的。当然我们还有ES8的五座版，像马上交付的ES9，那我们现在的ES8仍旧保持了非常这个稳健的这样一个销量。那么L90和L80，我们相信在20到30万的这个市场，也会继续保持它的一个领先的一个市场份额。那么从明年开始呢，我们当然会进入到一个新的这样一个产品周期，就是我们这个从这个这个ET5啊、ET5T、ES6、EC6，后续我们当然都会进行这个迭代，基于我们最新的这个智能平台。那么从乐道的角度来讲的话，我们也会有新的这个产品的计划。所以现在我们总体的策略呢就是每年大体上会有三到五款比较新的这样一个产品去推向市场。当然我们呢并不会去追求这个绝对的数量，这个新车的这个新车型的数量，我们还是保证每一款车型在细分市场都能够有一个领先的这样一个份额。

Thank you for the question. As you can see, the overall volume growth this year is mainly driven by the models with high price and also high margin.

They are playing an important role in supporting both our volume growth, as well as our vehicle margin improvement. For the ES8, we will maintain its stable and strong market performance.

Very soon, we are going to start to deliver the ES9, and later we will also introduce the five-seater of the ES8 as they will all playing such role. For the ONVO brand, we have L90 and L80 continue to lead the market share and the sales in the price segment between RMB200,000 to RMB300,000.

Also starting next year, our entire product portfolio will enter into a new phase of development, where we are going to upgrade our ET5, ET5T, ES6, and EC6 also to the latest technology platform and digital architecture, while the ONVO brand next year will also have new products. In general, we are going to maintain a pace of around 7 to -- 3 to 5 new or relatively new products every year.

Of course, with the launch of such new products, we don't pursue absolute increase in the volume of the cars. Instead, we would like to achieve a leading market share in each of their respective segment.

对，我们相信现在的这个产品规划是能够支持公司在这个市场上的一個竞争力的。今年1到4月份，蔚来现有的、蔚来公司现有的这些产品，我们在上海成功在上海的在所有汽车公司里面我们在上海是销量是位居第一位，那么占整个上海的乘用车市场8%这样的一個份额。所以我们非常有信心现有的产品，随着我们的渠道的进一步的覆盖，随着我们换电网络的进一步的扩展，随着这个三四线城市、四五线城市用户开始越来越接受纯电产品，我们现有的这个产品序列，包括接下来的这些产品，能够让公司在中国的乘用车市场获得一个显著的一个份额。

We also believe that our existing product portfolio and offering can support and sustain our competition and competitiveness in the market. In the first four months, the total sales of the company actually topped the passenger vehicle market in Shanghai.

We've achieved 8% of the market share among Shanghai's passenger vehicle market. As we continue to expand our channels and network coverage, as we continue to deploy Power Swap Stations and facilities, as the users in the lower-tier cities open up their mind for the battery electric vehicle products, we believe that our existing product lines, as well as our upcoming products, will help us to achieve a reasonable market share within the passenger vehicle market in China.

Thank you, William. My second question is about the profit and the OPEX.

Because NIO has posted two consecutive non-GAAP profitable quarters, do you anticipate maintaining the quarterly non-GAAP profit target throughout 2026? In the meantime, can current OPEX parameters, i.e., SG&A ratio below 10% and the quarterly R&D spending at 2 to 2.5 billion, be adequate to support robust business growth moving forward?

When is the next R&D investment upcycle expected to begin? That's my second question.

Thank you.

Yes, Tim. 首先第一个呢，我们从目标上来讲，2026年我们还是维持全年Non-GAAP盈利的、Non-GAAP运营利润对这个盈利的这样一个目标。所以具体到就刚刚你讲的这个OPEX的一个指引上，从我们先看这个研发费用，我们依然还是维持这个20到25亿这样一个季度研发费用，Non-GAAP的季度研发费用的这样一个指引。当然我们觉得呢这个这样一个投入呢实际上是首先第一个能够确保我们在关键技术领域的这样一个投入，让公司的包括像芯片啊、像很多底层的这样一个操作系统啊，这样的一些方面的能力，然后能保持公司在核心技术上的竞争力。这样一个投入呢也能够保证我们每年都会有相应有竞争力的这个产品的投放，像刚刚William给大家介绍。另外呢就是其实20亿呢也是20到25亿呢我们在提效方面做了很多的工作。我们从去年开始实施这样一个CBU机制以后呢，其实我们是用更少的钱来做了更多的事情。其实从等效的费用上来讲，我们觉得20亿其实是跟以前的30亿的這個成果。30到35亿是相当的，对。当然还有一个很重要的方面，就是研发费用呢我们觉得从技术路线上来讲，因为蔚来一直是坚持纯电的技术路线。我们没有这个增程，对吧，也没有混动。我们一直是坚持可充、可换、可升级的纯电线路。那与其他的这个友商相比呢，我们在技术路线上是比较聚焦的。那这样的话在研发效率各方面都比较高。那别的别的友商在推出车型的时候，他如果两种能力型动这种能力形式，那这个投入肯定是要比我们要高很多。

Thank you for the question. For the full year 2026, our financial target is still to achieve positive non-GAAP operating profit.

In terms of the OPEX guidance, for the R&D expenses, we target to maintain our non-GAAP R&D investments or expenses to be around 2 to RMB2.5 billion per quarter. For this level of spending, we believe that it will be enough to sustain and support our investments into the key technologies, such as chips, operating systems, and etc., to make sure that we have strong competitiveness and also technical leadership.

Secondly, such investment scale will also support the launch and the rollout of new models every year, as introduced by William. In the meantime, as we keep the expenses flat, we are also putting efforts in improving the overall efficiency and utilization of such resources.

Last year, we rolled out the CBU mechanism, where under that mechanism, we are now using less money to yield more R&D results. As mentioned, the productivity or the yield of RMB2 billion R&D investment as of today is equivalent to maybe the results of 3 to RMB3.5 billion R&D investment in the past years.

Also, for the entire company, we've been staying with the battery electric vehicle roadmap, which can make us more focused than spreading our efforts for range-extended vehicles or PHEV. In that case, we can be more efficient in making our investments, which is different from some of our peers where they have to split their efforts for different powertrain systems.

关于SG&A，关于SG&A，确实总体来说呢我们还是希望能达到这个10%销售收入这样一个目标啦。但是从季度白季度来说呢确实会有一些fluck。比如说从在二季度呢，我们主要今年的新车型的launch和marketing的activity其实都是在二季度。那所以呢在二季度的这个从绝对金额上来讲，这个尤其是selling的expense会比一季度会有会有这样一个比较比较大的这个上涨。当然从三到四季度呢，因为我们的新产品呢这个上市的活动呢基本上也都结束了，就比较少，所以呢三四季度呢可能从绝对金额上又会有一些下降。所以从季度白季度呢会有一些这样的一个波动。

Regarding the SG&A expenses, in general, we hope that the SG&A as a percentage of the revenue is around 10%, but it can be different from quarter to quarter. For example, in Q2, we have a quite intensive product launch and delivery cycle, where the corresponding marketing and the launch expenses are actually higher than the previous quarter.

The absolute amount in Q2 had a surge, especially the selling expenses in Q2 surged a lot from the Q1 baseline. In Q3 and Q4, as most of the new products will be already in the market by then, then the absolute amount in the second half will also be relatively lower.

There will be also differences from quarter to quarter.

Thank you, Tim.

Thank you, Stanley. Thank you, William clear.

Thanks, everyone. Thanks for taking my questions, and congrats on this quarter.

I have two questions. The first question is regarding the competition in the 9 series or large SUV segment.

I think the success of the ES8 since late last year has attracted competitors launching the large SUV as we see in this Beijing auto show, and quite of them are even priced with a very aggressive pricing. How do you think about the competition in this segment, and what is the moat for NIO, and how can NIO stay ahead in this segment as a sales leader, champion in this high-end large SUV segment?

That is my first question.

好，谢谢Paul。确实这个ES8的话呢是创造了非常多的纪录啊。这个我们用215天就完成了10万台的交付，是40万以上中国品牌单款车型最快的交付纪录。而且我们已经连续5个月在40万以上的这个车型和大型SUV的市场里面获得了销量的冠军，那么是不分能源形式的销量的冠军。那么确实它是非常成功的。40万以上的大大型SUV里面，那有一半，我们大概占了一半的份额，49.7%。那我想要这个成功呢是体现了我们未来这个11年持续进行体系能力建设的这样一个优势啊，现在是全面的通过ES8这个产品反映出来。

Thank you for the question. It's true that the all-new ES8 has created many records.

It has achieved 100,000 delivery milestone in just 215 days, which is the fastest among all the cars priced above RMB400,000 in China. For five consecutive months, it has been the sales champion in the price segment above RMB400,000, as well as in the large SUV segment, regardless of the powertrain types.

Looking at the sales of the large three-row SUV priced above RMB400,000, ES8 has achieved 49.7% market share. The reason for its success is because itself is the embodiment of our 11 years of systematic capability and innovation development.

那么这个体系的话当然就是包括我们12全栈的这样一个技术的研发的能力，还有我们创新供应链，因为我们这里面我们经常强调创新供应链，因为我们很多的技术都是行业里面第一个使用的。那么怎么样去管理这个创新供应链，这个其实是非常大的一个这个挑战。还有包括我们的先进制造、全生命周期的质量，我们在第三方的这样一些质量的排名里面一直都是数一数二的。还有我们的这个充换电网络、智慧能源的充换电网络。还有很重要的一点，特别是对于高端用户来说，我们覆盖全国的这样一个全场景的用车服务体系。所以这六个体系的创新支撑了我们蔚来品牌现在在高端市场的这样一个这个这个这样一个领先的这样一个市场优势。

In terms of such systemic capabilities and innovation, it includes our in-house capabilities for 12 full-stack technologies, as well as our capabilities for the innovative supply chain. The reason I'd like to highlight the innovative supply chain is that on the ES9, we have applied a lot of industry-first technologies, where we need to work hardly with our supply chain partners to mass-produce and make this advanced technologies happen.

We also have leading capabilities for the advanced manufacturing, lifecycle quality, which is well recognized by many authorities in the automotive industry. We also have our smart power systems, our charging and the swapping network, and also we have established a nationwide premium and holistic car user scenarios and also holistic experience for our users.

With this six system capabilities established in the past 11 years, we now are establishing ourselves as a premium brand, and also is leading in the premium segment.

除了这些体系能力以外，我觉得有两点也是最近我们从市场上的这样一个用户的这样一个选择我们这样一个原因里面一个发现。就是第一个就是我们认为现在确实中国智能电动汽车、新能源汽车的这个竞争啊，就从这个品牌的这个混沌期开始进入到了一个品牌的澄清期。那么我们还是非常高兴看到就是蔚来作为一个高端品牌，已经被用户所认可和接受。那用户其实已经有一个说BBA的下一辆选蔚来越来越多的人有这样一个共识。那么我们一季度蔚来品牌的平均成交价是来到了39万，是超过宝马5万元，超过了奥迪差不多是奥迪的1.5倍。那么我觉得这个是非常好的一個例子。那么在上海、在长三角，我们在一线城市我们都已经超过了这个传统这样一些豪华品牌的市场份额，就是他们的油车跟他们油车比的话，也超过了这个市场份额。那我觉的这些都是说明蔚来已经成比较初步成功的建立了一个在用户心中的这样一个高端的品牌的这样一个心智。

In addition to this systemic capabilities, we also have spotted two findings among new users who have chosen our products. The first is that the competition landscape of China's new energy vehicle market is now transitioning from a chaotic brand competition with a more clarified competition, where the clarity has been introduced to the overall brand and competition landscape for the new energy vehicle market in China, where among all this competitors, NIO is widely recognized as a premium brand and also well accepted by the public as a premium brand.

Among many users, they have already established a consensus where NIO will be the next car after Mercedes, BMW, and Audi. In Q1, the NIO brand has the average selling price of RMB390,000.

That is around RMB50,000 higher than that of BMW and 50% higher than that of Audi. These are lively examples.

In cities like Shanghai or around the Yangtze River Delta area or in the first-tier cities in China, actually our market share has already surpassed the market share of the ICE models from all those traditional luxury brands. In general, in the Chinese market, NIO has already established or is starting to establish itself as a well-recognized premium brand.

那包括乐道，乐道的平均售价也是24万人民币，那么其实也比很多二线豪华品牌的平均单价还要高。那么虽然它已经成为很多家庭用户的一个高品质的这样一个选择。那么Firefly的话呢，在高端小车市场那么也是成功的获得了这个超过2/3的这样一个市场份额。那么它比中国一般的别的别的小车别的品牌的小车大概它的平均的价格要高50%左右。当然它的品质、它的安全、它的设计是给用户提供了很好的这样一些用户价值。所以总的来说，蔚来还是我们坚持这样一些高端的定位，不管是在蔚来品牌还是乐道品牌还是Firefly这个品牌，都是让用户能够这个能够这个已经逐步的形成用户的一个共识。

For the ONVO brand, its average selling price is around RMB240,000, which is also comparable with many tier-two luxury brands. Now ONVO is also the go-to option for many families pursuing high quality and also premium car usage experience.

For Firefly, it has achieved 2/3 of the market share in the high-end small car market. Its average selling price is around 50% higher than other small car competitors.

In terms of its design, safety, and also build quality, it is providing our users with sufficient value and also creating sufficient user value for them. For the entire company, be it the NIO brand or ONVO brand or the Firefly brand, we're positioning ourselves as premium in general, and this is also a consensus among the users.

第二点就是我们蔚来、乐道、萤火虫三个品牌一直都坚持了这个原创设计，还有长期主义的这样一些还有包括我们公司的一些这个企业的使命啊，这样的一些价值观确实跟我们的目标用户群有很好的这样一个精神的共鸣。那么我觉得这也是很多用户他选择车的时候除了看这些功能和配置以外，还是很多用户也在乎的地方。所以我们这种情感体验，包括我们的社区啊这样带来的一些情感体验也成为我们的一个竞争优势。这个也支撑了我们并不需要简单的去比价格、怎么样去定价极限。因为在今天这个成本压力这么大的情况下，这个过低的定价其实并不带来这个规模优势。这个是，因为今天很多这个成本是是规模不经济的。这可能比如说是内存，比如说电池的材料，比如说铜啊、铝这些大宗的材料、大宗商品，它是规模不经济的。所以其实你单纯的简单的追求量，并不能带来毛利的显著的改善。所以我们其实在这一点上我们还是非常坚持就是品牌的定位和用户的情感价值的情感体验的创造。 Also, in addition, for the NIO, ONVO, and the Firefly brand, we have been insisting on the original design.

We have been making long-term dedication and commitment to our products. We also have corporate missions and values where our users find themselves can really identify it with and resonate with all this mindset and mentality.

Many users actually pursue beyond simple functions or configurations. They're more seeking for the emotion connection and resonance.

Plus, we also have the community to create them such emotion experience. When it comes to the competition, such emotional touch points can really create us a unique competitive edge where we don't need to be overaggressive with the prices.

Not to mention that when the entire industry is under heavy cost pressure, a low price point may not generate you scale effect or economies of scale. In that case, a low price may not necessarily translate into an advantage, especially for the rising raw material costs on the memory chips, batteries, copper, aluminum.

There is no economy of scales for such components, which means that a higher volume does not translate into a good margin performance of the car. In that case, for us, we will insist on our premium brand positioning and insist on providing our users good emotional experience.

Thanks, and well understood. My second question is regarding the potential indirect price raise under the challenge of the raw material cost inflation.

Just now, Stanley mentioned the cost inflates by about 10,000 or more than 10,000. I think it's not only your challenge, but it's even a bigger challenge for your competitors who price the products at a cheaper price level.

Under this competition and the cost inflation challenge, do you think there is an opportunity to cut some of the incentives and indirectly raise a little bit of pricing for the industry and for yourself?

确实今年整个原材料涨价、芯片、内存，特别是内存芯片的涨价对整个行业还是非常大的一个压力啊。前面Stanley也讲到了我们其实每一辆车平均下来有1万以上的一个涨价。那我们一方面保持价格的稳定，另外一方面的话我们确实实施这个也在一些折扣方面也是做了很多的话收了很多的折扣。那我想第一整个行业来说，可能都会面临同样的一些压力。当然每家公司的竞争策略可能会有些不一样。前面我也讲到了我们总体来说是保持价格稳定，保持这个产品、服务的一个综合的竞争力。那我们可能不会把量作为最主要的这样一个这个经营的这样一个特点。我们会保持一个合理的量的增长，但我们更看重这个毛利和这个EBIT的总体的这样一个经营的目标。所以我们会balance。但是确实每家的这个经营理念会有些区别。但我们是这个会坚持我们自己的一个这个这个这样一个应对材料涨价这样的一些方法，我们经营的这样一些这个模式。

Thank you for the question. It's true that the entire industry is facing the cost pressure, mainly driven by the raw material costs as well as the prices of the semiconductors, especially the memory chips.

As mentioned by Stanley, the cost impact is over RMB10,000 per car for our company. Our overall strategy is still to stabilize our prices, while in the meantime, we are also dialing back on some discounts and promotions.

Facing the same pressure, different companies may have different coping mechanisms. For us, it's about stabilizing the prices while maintaining and improving our overall competitiveness on the products and the services, then just sacrificing on the margin for the sake of the volume.

Our strategy is to maintain a reasonable volume increase while keep improving our margin and the EBIT performance, as those are our key business targets. Overall speaking, different companies have different coping mechanism and strategies.

For us, we will be insisting on our philosophy and to mitigate the impact.

在供应链方面我们也启动了一些新的，从去年开始我们已经启动了一些新的这样一些合作模式，我们叫透明供应链和首选、优选的这样一个合作模式。其实就是和我们供应链的伙伴一起去找出这种没有给用户创造价值的这样一些这样的一些成本吧，就是我们去一起去这个降低这样的一些不创造价值的这样一些成本，还有一些包括一些流程啊。那么我们认为这里面的空间也是非常大的，在这里中间去发掘出来5%到10%的这样一个没有创造用户价值的这样一些成本空间，也是完全有机会的。所以总的来说，我们今年就是通过精细化的运营和合作伙伴一起这个去降低整个的这种这个成本。我们认为这个应该是可以对冲这个材料成本上涨的这样一个带来的这样一个毛利的损失。

In the meantime, on the supply chain, since last year, we've been promoting some new models working with our partners. One is transparent supply chain, and another is a mechanism or a principle called primary and preferred partners.

In general, we work closely with our partners to identify costs and processes that are not creating user value, and we work with them to lower such costs or optimize such processes. We believe that on the supply side, there should be around 5% to 10% opportunities driven by such optimization.

For this year, on the supply chain, we will be focusing on doing meticulous operations and management together with our partners to identify opportunities that can offset or mitigate the impact on the rising raw material cost.

Thank you, Paul.

Thank you very much. That's quite helpful.

Thank you.

Okay. Thank you, William and management team, taking thanks, for taking my question.

This is Nick from JPMorgan. Two simple questions.

The first question is can you give us a quick recap and quick update of our ADAS strategy? You mentioned earlier at the call that our own in-house chip Shenji chip has started to be put in our car, select model from now.

I wonder how fast will our in-house chip be deployed to the rest of the model? How this ADAS strategy is going to make our product much more competitive compared with our competitors?

At the same time, I'm aware that our in-house chip subsidiary has raised RMB2 billion through fundraising in the first quarter. How would that help our financing and R&D?

Thank you. That's the first question.

谢谢。我们这个从蔚来来讲的话，我们是基于我们自己的芯片，我们现在神玑9031，这个芯片它是全球第一颗车规5纳米芯片。那么它的这个推理的算力、还有内存带宽，还有这个ISP的这个能力，还有包括芯片间的这个互联的这个能力，应该说都是行业领先的。那么而且这个芯片从去年3月底量产，在ET9上量产到现在已经交付了超过25万颗了。那么其实它也是非常成熟的芯片，所以我们现在就是把这个芯片大家也看到了我们会用到乐道的车上面。那么这样的话它的这个应用的范围会更加的广，也对于我们去把我们整个AD的基线统一，那么也是提高我们AD的研发效率和数据闭环的能力，那么是非常有用的。

Thank you for the question. For NIO's in-house developed smart driving chip, NX9031, it is the world's first automotive-grade chip of a 5-nanometer process, and it comes with the industry-leading capabilities in inference, data bandwidth, ISP performance, as well as the inter-chip communications.

It was first mass-produced on the new ET9 in last March, and to date, we have already shipped more than 250 pieces -- more than 250,000 pieces of this chips to our products. The chip solution itself is already pretty mature, and earlier, we have also introduced this chip to the ONVO's new products starting with L90.

As by introducing this to the ONVO brand, we can also merge the autonomous driving or ADAS software baseline, improving the overall R&D efficiency, as well as enhance their data closed-loop capabilities.

那我是我们目前来看的话，下半年应该80%或者80%以上应该都会我们的车都会搭载我们自己的芯片。那么从AD的策略角度来讲的话，我们现在看到了我们的世界模型加上闭环强化学习的这个方式啊，它的这种上限是非常高，而且它的效率也是非常高的。事实上我们用仅用了我们同行可能20%左右的这种云端的训练的算力，就实现了比现在绝大多数的同行都更好的这样一个这个自驾的这样一个体验，从我们最新的版本来讲。现在用户的口碑非常的好。那么我们今年还有两次这个比较大的这个迭代，所以方向上来讲，我们现在对我们整体上AD的这个技术路线还是非常有信心的，它的上限还是非常高的。那当然从商业模式上来讲，我们还是会坚持这个订阅的这个模式。我们也非常高兴的看到，其实在从这两年吧，我们在AD的ADAS的订阅方面的收入还是持续的在上涨。所以在我们服务与社区收入里面，它长期来说会成为我们非常重要的一个增长点。那我们现在虽然对于这个新的用户首任车主我们有5年或者说更多的时间的这样一个这个赠送，但是我们对二手车的用户我们是在这个收取它的订阅的费用。所以这方面的收入其实也是在持续的在增长。所以总体上，AD我们已经完成了从芯片、这个模型、数据闭环，到商业模式总体的这样一个闭环。那我们还是这个非常高兴看到这个方向是对的。当然这个神玑的融资也非常的顺利，它当然会帮助、会给我们将研发下一代的芯片，或者说成本更低的这种芯片，肯定是有帮助的，能对我们的研发费用是非常好的一个资助。

In the second half of this year, we believe that more than 80 or 85% of our cars will be equipped with our in-house developed smart driving chips. In terms of our AD solution and AD roadmap, as you see that starting this year, we are moving to the architecture featuring our NIO World Model plus the closed-loop reinforcement learning.

It has great potentials for the continuous development and iterations, as well as good efficiency, because we are only using 20% of the cloud computing power in comparison to our competitors or peers to achieve the same level or even better smart driving experience and performance. With this major version and upgrade, our users actually all speak highly of the smart driving experience.

Later this year, we will have another two major upgrades, we are quite confident with the overall AD performance as well as its growth potential. In terms of the business model for the ADAS, we will continue our subscription services and business model on the ADAS as it will also become a very important revenue driver among our other sales revenue, mainly based on the services and also community-related businesses.

Although right now, we are offering free subscriptions to some early users or new users, but for the used cars, they will have to pay for the ADAS subscription. For the long term, we see the potential in that.

In terms of our AD solution, we have already completed the entire chain from the chip to the model and architecture to the closed-loop data, as well as the business model. In terms of the Shenji and the recent financing, of course, a smooth financing driven by the Shenji chip business can also give us more resources and the flexibility in developing our upcoming chip products, especially chips that are more affordable.

Thank you, Nick. The

Hi. Thank you for taking my question, and congrats on our robust profit in the first quarter.

My first question is about ONVO. We see that L80 has officially launched this month.

How do you see from the market feedback on the orders? Also we see competition is currently so how will the L80 overcome the new vehicle effect, which means we see some new model have a quite large orders in the beginning, but later they will encounter a sharp decrease.

What's our expect on the L80's sustainable monthly sales performance? Also for the overall ONVO brand, what's our strategy to be employed to enhance the brand awareness for ONVO in total?

好，谢谢畅静。L80呢这款车呢，它确实我们认为它是大五座SUV的一个革新之作。因为五座的这个SUV市场呢是三排座的这个三倍左右啊。所以L80呢它总体上面向的这种市场的空间肯定是比90还要更大的。

Thank you for the question. For the ONVO L80, we believe it's a defining and also revolutionary product in the large five-seater SUV segment.

In general, the market size for the five-seat SUV is three times of that for the three-row SUV segment, which means that for the L80, it is being able to tap into a greater and a broader market than the L90. 那么应该讲这个4月28号到现在的话呢，整个L80的这个市场的反馈是非常积极的啊，从媒体和试驾的用户对产品的评价是非常的积极，订单呢也是符合��们预期。那么L80的这个目标客户群确实它是可以可以服务的这种目标客户群是非常大的。从两口之家、三口之家，或者这个养宠物的家庭，或者孩子已经成年的这样一些家庭用户，那么应该说都非常合适。那么我们认为它的这个核心的竞争力还是依托于我们的技术创新和充换电体系，去重构了大五座SUV的空间和生活场景的体验。它是真正解决了空间不够好用啊、不能还有纠结这个用户痛点。我们是非常有信心它能够引领大五座的SUV进入到这个纯电时代，就像L90和ES8一样。

Since the official launch of the ONVO L80 on April 28, we actually have received positive feedback both from the media as well as from the users who test-drove the vehicles, and its order intake is also meeting our expectations. Regarding the target users of the ONVO L80, actually, the car can cater to a pretty wide range of user groups, including young couples, couples with one kid, families with pet, or families with kids that are already growing up.

For the ONVO L80, we believe that its core competitiveness still is powered by the technology as well as its overall product performance, including how it has reimagined the space and as well as all this lifestyle and scenario-based solutions. We believe that the ONVO L80 will drive the entire large five-seater SUV segment into the BEV era, just like how L90 and ES8 did with the large three-row SUV segment.

那乐道品牌现在确实面临的问题呢还是知名度还是还是这个不太够。因为毕竟从交付第一辆车到现在就20多天的时间，大体上就根据我们的调研，大体上它差不多像在2020年左右的蔚来的这个品牌的知名度。所以我们确实也在用更多的方法去提高这个让更多的用户了解我们。这个我们比如说和一些对目标用户有影响力的这样一些明星合作啊，这个其实对乐道品牌知名度提升还是非常有用。另外的话呢，我们也还是在，我们一线的同事啊更积极更主动的去去拓展客户，走出门店去拓展客户，然后去更多的去让用户来试驾。通过这样一些看起来比较笨，但是也是我们在推行的一些方法，让更多的这个用户了解我们。所以这确实需要一个过程。好的地方就在于乐道的一旦了解乐道，那么它的转化率还是非常高的。

Right now, for the ONVO brand, the major challenge is still because of its overall brand awareness. Since after all, ONVO has just started its delivery for around 20 months.

We've also done the study on the ONVO's awareness. Its current awareness is basically on par with the awareness of the NIO brand in the year of 2020.

To raise its brand awareness, we're also taking different approaches so that more people will be able to know about the brand. For example, we have collaborated and invited some celebrities to promote our products and brand, where many of the celebrities have good reach among the target users of ONVO.

We are also asking our frontline colleagues and teams to really go into the field, to go door-to-door, to promote our products and invite users for the test drive. It takes a lot of efforts, but it is also taking effect.

Overall speaking, it takes time to really establish and build the brand awareness on the ONVO. The good thing is that once the public or the users know about the brand, we have a pretty efficient conversion from knowing about the brand all the way to the order placement.

好，谢谢畅静。

Okay.

Thank you. My second question is regarding to the other sales.

We have seen that the gross profit margin of other sales has been have a significant improvement in the first quarter to above 20%, which I think is a historical high. Could you clarify the main drivers behind this margin growth?

Also, is there any one-off effect? Also, provide us maybe some outlook on the trend this year.

Okay. 其他业务呢包含我们售后、维保、车商城、能源、金融、NIO Life等所有在内的这个服务和社区的这个相关的业务。其实从去年四季度开始呢，这个我们服务和社区相关的业务在经营结果上其实有了大幅度的这个提升。在一季度呢，我们实现了20超过20%的这个其他业务的毛利率。这里面呢基本上没有这样one-off的影响。那主要的这个提升的因素呢，一个方面呢是因为蔚来也是一直致力于我们的品牌建设，给我们的用户呢带来超越期待的全程体验，所以这样高的一个用户粘性和付费意愿，其实让这里面包括我们的这个售后服务，包括我们的车商城，包括NIO Life等等业务呢，其实这个用户的付费意愿是非常高的，然后这个利润也在持续的提升。另外一方面呢，我们也在持续的去提升我们的效率，尤其是这个能源业务，我们单站运营的成本也在不断地优化。另外像能源方面的这个效益呢，包括像错峰啊、电网服务啊、电力交易等方面的这样一个效益呢也开始显现。

Thank you for the questions. Regarding other sales, it mainly includes after-sales services, service and maintenance, accessory e-shop, power services, and also NIO Life merchandise.

We've been witnessing significant improvement in the after-sales performance and also financials since Q4 last year. In Q1 this year, we have achieved over 20% other sales margin.

With this result, there was no one-off impact. The key drivers of the improvement in other sales margin is mainly because, first of all, NIO, the entire company, has been committed to establishing this brand connections with our users and to deliver holistic experiences throughout the lifecycle of the products that can go beyond their expectations.

With that, we have a very strong user stickiness and also a strong willingness to pay for this premium services. For example, after-sales services, the accessory e-shop, and the NIO Life products all are popular among our users, and they also generate good result.

Secondly, we've been improving the overall efficiency of such services, especially power services. For the operating CAPEX or operating cost per station, we've actually achieved quite significant improvement.

Thirdly, we are also leveraging our energy and the power services by doing off-peak charging and also grid interactions and also electricity trading to be able to also generate good results.

这是我们其他业务的一个转折点，也意味着我们服务和社区相关的业务进入到一个新的阶段。那从一个全年的目标上来讲呢，我们也是希望能够实现能够保持在一个今年，整体能够保持在一个20%左右的一个毛利水平。

With that, we believe that our other sales, mainly our services and community-related businesses, are also embracing an inflection point and entering into a new phase of development. For the full year 2026, we have the target for a 20% other sales margin.

那从一个更长的时间来看呢，随着我们的用户保有量的持续的上升，随着我们这个效率的提升，那我相信我们其他业务，也就是我们这个服务和社区相关的业务的这个盈利能力呢也会持续的提升，也会成为我们未来呢在除了新车之外的一个重要的一个增长点。 Going into a longer term, as we continue to increase our user base and also the efficiency of such services, we believe that the profitability of other sales, as mentioned, the services and the community-related businesses, will also continue to improve.

In the long run, in addition to the new car sales, other sales will also become a very important and the key driver for our sustainable growth.

Thank you, 畅静。

Thank you.

Thank you, team. Yuqian here.

Conscious of the time, I just got one question. Regarding the second half, could you talk a bit more about the new car plan?

Other than the current new models ramp-up into second half, what's the biggest expectation in second half? Could you share the ES7's timeline and position among the current big-size premium SUV pack you have?

Thank you.

那下半年我们主要要上市的产品新产品就是我们这个全新ES8的五座版，这就是我们最主要的产品。所以下半年我们主要的精力都是好好卖车、好好服务用户。

Thank you for the question. In the second half of this year, the major new product we are going to launch will be the five-seater version of the all-new ES8.

In addition to that, our primary focus in the second half will be dedicated to selling cars and also serving our users well.

Thank you, Yuqian.

Thank you, management, for taking my questions. I also have one question on your battery swap stations.

Can you talk about what are the target number of your battery swap stations and also the targeted utilization rate by end of this year? When will the battery swap business achieve profitability on a stand-alone basis?

Thank you.

所以就是换电我们现在的话高峰期的话呢大概平均一座站可以到40、45次左右吧，高峰的时候，单站每天。average单站的话像节假日的时候，但平时要少一些，现在平时大概30、30多次。那么我们其实并不短时间内我们还是会把网络的布局做成高的优先级，所以今年我们全年还是会部署超过1000座换电站。那么我们的五代站在不远的在三季度就开始大批量的开始部署。从方向的角度来讲的话呢，我们换电站的这个盈利能力、这个经营状况肯定是在持续的改善，但是短时间内我们还是会保持一个超前提前的投入。短时间内盈利还不是我们的主要目标。另外我们还是也强调一下，我们包括换电站在内的服务与社区收入是已经实现了盈利。所以总体上來講呢我们是有足够的这个资源去支持换电网络的建设。

Thank you for the question. For our Power Swap Stations, at its peak, mainly during the holidays or busy hours, on average, each station can deliver around 45 swaps per day.

On the average days, it's around 30 swaps per day. For the short term, our focus will still be on rolling out and expanding our Power Swap network.

This year, our target is to build a total of more than 1,000 Power Swap Stations, especially starting Q3, we will be able to roll out our fifth-generation Power Swap Station at scale. In the meantime, we are continuously improving the operational efficiency of our swap stations.

For the short term, we will still need to make upfront investment and early deployment of stations. For the short term, the profitability of the Power Swap network is not our primary focus.

I'd like to mention that for the services and community-related businesses, basically other sales, it has already achieved profit. The Power Swap business is also included in that part of the profit, which means that we will have resources to sustain the continuous expansion of our swap station network.

Thank you, Joey.

Thank you very much. That's very helpful.

Thank you.

Thank you again for joining us today. If you have further questions, please feel free to contact NIO's IR team through the contact information on the website.

This concludes the conference call. You may now disconnect your line.

Thank you.