【Earnings Highlights and Outlook】
- Li Auto achieved record deliveries of over 158,000 vehicles in Q4 2024, with full-year deliveries exceeding 500,000 units.
- Total revenue reached RMB 44.3 billion (US$6.1 billion) in Q4, up 6.1% year-over-year.
- The company expects Q1 2025 deliveries between 88,000 and 93,000 vehicles, representing 9.5% to 15.7% year-over-year growth.

【Q&A Highlights】

Q1: What is the launch timing for new BEV models and their highlights?
A: Li Auto plans to launch two new pure electric SUVs in 2024:
- The Li L8 will be launched in July.
- The Li L6 will be launched in the second half of the year.
- This launch schedule aims to capitalize on sales momentum in Q3 and Q4, while also building order backlog for Q1 2025.
- The company will not disclose detailed product information before the official launches to maintain a close connection between product highlights and user experience.

Q2: What is Li Auto's AI strategy and investment plan?
A: Li Auto's AI strategy focuses on:
- Developing a foundational model that combines spatial intelligence, language intelligence, and physical intelligence.
- Positioning as a device manufacturer in the AI era, creating "robots" with perception, decision-making, execution, and feedback capabilities.
- Focusing on three types of AI-powered devices: autonomous vehicles (space robots), human-augmenting robots, and indoor humanoid robots.
- Significantly increasing AI-related R&D investments in the coming years, funded by the company's cash-generating operations.

Q3: What is the outlook for 2026 in terms of industry trends and competition?
A: For 2026, Li Auto expects:
- Continued increase in NEV penetration in China.
- Shift from growth competition to market share competition.
- Increased importance of brand influence on sales.
- Further market concentration among top brands.
- Intensified competition in advanced autonomous driving and other technologies like drive-by-wire systems and AI cockpits.

Li Auto's strategy includes:
- Expanding its product portfolio to cover various price ranges and segments.
- Increasing investments in autonomous driving and AI technologies.
- Accelerating supercharging network expansion.
- Expanding overseas sales and service networks through various partnerships.

Q4: Is there potential for monetization of autonomous driving software in the L3/L4 era?
A: Li Auto believes:
- Current L2/L3 systems are still tools assisting human drivers.
- L4 autonomy will represent a fundamental shift, transforming the system from a tool to a driver agent.
- Users will likely be willing to pay for L4 capabilities, comparable to hiring a professional driver.
- L4 autonomy will unlock new business models and monetization opportunities for in-car software and services.
- The company is actively exploring potential opportunities in the L4 era.

Q5: What is the Q1 2025 gross margin guidance?
A: Li Auto expects the Q1 vehicle gross margin to be around 19%, considering factors such as:
- Q1 being a low season due to Chinese New Year.
- Sales promotions after Chinese New Year.

Q6: How does Li Auto plan to balance focus between vehicle business and AI development?
A:
- CEO Li Xiang continues to oversee departments related to the car business, including vehicle lines, product, branding, and strategy.
- The company has allocated new responsibilities under its BRM and PDST framework to support AI initiatives.
- Li Auto remains committed to efficient collaboration across the company to support long-term success in both areas.

Q7: What is the market performance of Li MEGA and future expectations?
A:
- Li MEGA has maintained the second position in its segment (luxury pure electric MPVs priced over RMB 500,000) for several consecutive months.
- The company aims for Li MEGA to remain in the top three in its segment, with annual sales between 10,000 to 15,000 units.
- Li MEGA has received high Net Promoter Scores (NPS) and positive user feedback, particularly for long-distance travel scenarios.
- Li Auto continues to expand its supercharging network, aiming to have over 2,500 stations by the time the Li L8 is launched.

Q8: What are Li Auto's long-term international expansion plans?
A:
- Li Auto opened its first overseas R&D center in Munich, Germany in January 2025.
- The company has established direct service centers in Kazakhstan, Dubai, and Uzbekistan.
- In 2025, Li Auto plans to increase efforts in overseas expansion, focusing on high-growth potential markets.
- The company is working with authorized dealers in overseas markets to support expansion efforts.

Disclaimer: This earnings call summary is generated by AI and is for informational purposes only. Due to technical limitations, inaccuracies may exist. It does not constitute investment advice or commitments.