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    Y.C. Lai • JPMorgan Chase & Co.

    Y.C. Lai's questions to Xpeng Inc (XPEV) leadership

    Y.C. Lai's questions to Xpeng Inc (XPEV) leadership • Q1 2025

    Question

    Y.C. Lai of JPMorgan Chase & Co. asked about the competitive dynamics with foreign brands launching localized 'in China for China' models. He also requested a near-term update on the partnership with Volkswagen.

    Answer

    CEO He Xiaopeng responded that while competition is intensifying, XPeng's advantage lies in its deep technological capabilities, which he believes will be the ultimate differentiator. VP Charles Zhang reported that the VW collaboration is progressing rapidly, with products less than a year from start-of-production and models set to launch starting early next year.

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    Y.C. Lai's questions to Xpeng Inc (XPEV) leadership • Q3 2024

    Question

    Y.C. Lai, also known as Nick Lai, inquired about the profitability of overseas sales compared to domestic sales and the strategy for educating international customers on advanced ADAS features. He also asked about the company's approach to potential changes in government subsidies and managing customer expectations for long delivery times.

    Answer

    President Brian Gu confirmed that overseas margins are generally higher, often being wholesale margins that contribute directly to profit. CEO He Xiaopeng noted that while full ADAS adoption in Europe lags China due to regulations, customers there appreciate features like smart cabin and auto-parking, and XPeng is adapting its solutions for global markets. VP Charles Zhang and Alex Xie stated that customers choose XPeng for product competitiveness, not subsidies, and have reasonable expectations for delivery times, which are supported by a significant order backlog heading into Q1.

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    Y.C. Lai's questions to NIO Inc (NIO) leadership

    Y.C. Lai's questions to NIO Inc (NIO) leadership • Q3 2024

    Question

    Y.C. Lai from JPMorgan Chase & Co. inquired about the strategic balance between profitability and sales volume, particularly after the reduction in incentives, and requested guidance on CapEx and OpEx for 2025 given the launch of new brands and models.

    Answer

    CFO Stanley Qu stated that the NIO brand's primary focus is now on its premium positioning and profitability, targeting a 15% vehicle margin in Q4 2024 and aiming for 20% in 2025. CEO Bin Li added that while SG&A expenses will rise in the short term to build out the ONVO network, OpEx efficiency is expected to improve quarter-over-quarter in 2025. He projected that full-year 2025 CapEx would remain prudent and at a similar level to 2024's RMB 8 billion.

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    Y.C. Lai's questions to NIO Inc (NIO) leadership • Q3 2024

    Question

    Y.C. Lai from JPMorgan Chase & Co. asked about NIO's strategy for balancing sales volume and profitability, particularly regarding vehicle margin targets for Q4 and the medium term. He also requested guidance on CapEx and OpEx for 2025 given the upcoming product launches.

    Answer

    CFO Stanley Qu stated that the NIO brand's primary focus is now on its premium positioning and profitability. He expressed confidence in reaching a 15% vehicle margin for the NIO brand in Q4 2024, with a baseline of 15% and a target of 20% for 2025. CEO Bin Li added that SG&A expenses increased in Q3 due to the ONVO launch and will continue to rise in Q4 as the store network expands. However, he expects OpEx efficiency to improve starting Q1 2025. Li noted that full-year 2024 CapEx is around RMB 8 billion and will remain at a similar level in 2025.

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