A：XPE's first quarter 2025 financial highlights include deliveries of 94,008 units, a year-over-year increase of 331%, and a new quarterly record. The company secured the top position in sales among emerging electric vehicle (EV) brands both domestically and internationally. Vehicle gross margin improved for seven consecutive quarters, reaching a record high of 15.6% in Q1 2025, with a significant narrowing of net loss and positive free cash flow exceeding 20 billion RMB.

A：XPE's strong Q1 performance is attributed to systemic enhancements across the company's organization, product development, marketing, technology, and operations. A consistent commitment to AI-driven tech innovation and a focus on sustainable growth were also crucial factors. Notable achievements include the successful launch and delivery milestones of the Mona M 0 3 and the G 6 and G 9 models.

A：XPE is spearheading integrated AI innovations in various fields such as AI check, touring AI, assisted driving, smart cabins, touring tips, and robots, along with enterprise productivity tools. The company has made significant progress in Q2 towards its full transformation towards AI and is expected to achieve generational leadership in 2026. Through the extensive application of its physical world foundation model, touring chips, and vehicles, alongside global deployment of AI-powered vehicles and humanoid robots, XPE aims to lead three growth curves and achieve sustainable long-term high growth.

A：XPE's upcoming product and technology introductions include the Mona M 0 3 Max with touring AI assisted driving features, the G7 debut in June, the new generation P 7 in Q3, and the Kunpeng super-electric models in Q4, which will realize one vehicle dual energy options. These moves are expected to expand the company's reach to a wider consumer base both domestically and internationally, unlocking substantial sales growth potential.

A：XPE's global expansion strategy is a key driver of its growth, with a focus on rapid overseas business development over the next few years. This strategy has already resulted in a year-over-year increase of more than 370,000 units in Q1 2025, solidifying XPE's position as China's leading exporter of mid to high-end new energy vehicles. The company has been opening new stores abroad, entering key markets such as the UK in Europe and Indonesia in Southeast Asia, and striving to enhance localized R&D, manufacturing, and services globally.

A：XPE is actively implementing the full-scale deployment of the Physical World Foundation model in AI-powered vehicles as part of its XPG ISS initiative. The company has developed a comprehensive and sophisticated in-house R&D system with leading potential in the industry, including self-developed high-performance touring chips and other advanced solutions. This is strengthening XPE's strategy for advanced autonomous driving and establishing competitive barriers. The company is also pioneering urban smart driving without relying on LiDAR and is enhancing the safety and user experience through improved visual perception models and environmental perception capabilities. These innovations are expected to facilitate the global rollout of high-end autonomous driving and the transition from AI cars to advanced intelligent robots.

A：The company has successfully developed an AI chip that achieves three to seven times more effective energy efficiency than mainstream automotive chips. This chip is achieved through full-stack self-development and closed-loop integration of hardware, software, compilers, and model architectures, maximizing the synergistic effects between the chip and AI models.

A：The AI model is expected to evolve through reinforcement learning to outperform seasoned human drivers, laying the groundwork for L3 and L4 autonomy and autonomous driving. It will also serve as a universal model for all X banks physical AI terminals. Edge models are being created via knowledge distillation and pruning to fit vehicle computing power, leveraging the foundation model's capabilities for leading inference on devices.

A：X-Band is developing a multi-modal model that operates entirely locally on touring chips, facilitating smarter voice interactions, a more personalized user experience, and smooth operation even in offload conditions, which significantly enhances safety and global scalability. This model will be China's first large model capable of fully localized multilingual interaction and VLA features in a cockpit.

A：The investment in AI vehicles is providing advantages in humanoid robot research and development in China's robotics industry. For instance, the Turing chips used in the Iron, X-Band's fourth-generation robot, will be followed by a fifth-generation model, significantly enhancing on-device computing capabilities. These advancements are expected to surpass traditional industry technological approaches and serve as a new growth curve for X-Band's robots, aiming to launch industry leading humanoid robots for industrial and commercial applications in 2026.

A：The company expects total vehicle deliveries in the second quarter to range from 102,000 to 108,000 units, marking a year-over-year increase of 237.7% to 257.5%. The revenue is expected to be between 17.5 billion RMB to 18.7 billion RMB, representing a year-over-year growth of 115.7% to 130.5%. The company is optimistic about meeting its sales growth goal of more than doubling and achieving profitability in Q4 while generating substantial free cash flow for the entire year.

A：The projected volume upside for the following quarters is expected to be significant, as the company plans to launch new models more aggressively starting from Q3, which will generate more deliveries. Additionally, the AI capability and R&D efforts are anticipated to translate into AI performance that will maintain the company's leadership in the industry and widen the generational difference between them and their competitors. The introduction of the quantum electric drive system will also power their future vehicle lineup.

A：For Q2, there are five upgraded versions or improvements expected, which may cause some changes in the market in the midterm or short term. These changes are expected to be very beneficial for the long-term development of the country and the company.

A：Starting from Q3, the company plans to launch new models more aggressively, including the Mona Max by the end of this month, followed by G6, G7, and G7 in the next couple of months. These new launches are expected to be catalysts for further growth, and they represent products in higher price categories with better gross profit margins, which will introduce a favorable product mix, contributing to the overall product line.

A：The company has seen very strong international growth and is increasing efforts with investments and team focus. The continued focus will be on the European Middle East and Southeast Asia as core regions. Recently, the UK, Indonesia, and other markets have shown balanced overall growth or reached triple-digit growth year over year. The company is looking at expanding to additional markets, including Latin America and other regions currently without a focus. Regarding tariffs, the company is committed to building for the long term and is looking at ways to reduce the impact of tariffs through collaboration with partners, changes in product mix, and potential local investments.

A：G7 has already begun production in the second quarter and mass production is expected to increase in the third quarter. The company plans to leverage the touring chip's AI computing power, which is already 3 to 7 times that of mainstream AI chips. This chip will not only enhance the autonomous driving capability but also support other products. The company believes that it will be able to demonstrate its generational lead in autonomous driving in the near future and optimize user experience for consumers. Future X branded EV models will likely use touring chips, although this was not explicitly confirmed in the transcript.

A：X bank cars' target is to democratize high-end technology and bring benefits to all people, aiming for everyone to have access to fancy technology as soon as possible.

A：The strategy for the mobile series is to be announced, and the target percentage share of monos is also pending, pending further details and market outcomes.

A：The new touring chip is expected to impact the market segment of 150,000 RMB, where there are no real implementations of N to N large models or computing power of 500 tops and above.

A：The expected impact of the Mona series on the industry is to cater to young consumers with a need for cool and beautiful designs, emotional value, and connection, which the company believes will be impactful across the industry.

A：The exact percentage or amount of the increase in RD expense allocated to AI related areas in 2025 was not clearly stated, but it is mentioned that a good amount of the increased expenses will be spent on AI-related activities to improve computational capability on a cloud basis for both AI vehicle autonomous driving training and humanoid robot line.

A：In the first quarter, the company received regulatory subsidies and tax rebates, resulting in revenue recognition based on cash receipts from those activities. However, it is uncertain whether these benefits will continue in subsequent quarters.

A：The impact of currency fluctuations in the first quarter, driven by the strength of the euro, resulted in an FX gain. However, this has weakened in recent months of April and May, and the company continues to monitor its exposure to currency risk to avoid unexpected impacts in the future.

A：Yes, guidance for the second quarter's gross margin can be provided. The company expects to further improve vehicle margins through better product mix, continued cost reduction efforts, and supply chain optimization. They predict the average sales price will increase in subsequent quarters, leading to a total company gross margin close to the high teens level by the end of the year, supporting profitability in the fourth quarter as communicated earlier.

A：Leveraging existing self-driving technologies in robotics is planned by utilizing expertise and advancements in the field. However, specific goals for the mass production of humanoid robots were not detailed in the provided text.

A：The robotics development operates as an independent center within the company but leverages the overall in-house full stack R&D capability. For instance, the EEA of robots is developed by the EEA team of the autonomous driving department of the car department, and the joints in the humanoid robots are developed by the powertrain team at XP Motors. The spinal cord and cerebellum of the humanoid robot are developed by both the robotics team and the autonomous driving intelligent driving team.

A：Xpeng is distinct from other humanoid robots or robotics companies as it is data-driven, developing chips in-house, operating systems, and has full self-development and capability of hardware and software. Xpeng emphasizes a strong coupling capability, which guides its product development process, especially when creating new products such as humanoid robots. Xpeng aims to enter a stage of Over-the-Air (OTA) iteration by 2026 and expects to bring innovative products to the market that will look different from existing offerings.

A：In Q1, vehicle margin was negatively impacted by inventory provisions and losses on purchase commitments related to old models. However, the impact of these provisions is recognized as relatively small and does not change the overall trend of margin improvement for the past seven consecutive months. The company does not expect purchase commitments related to model changes to be significant in the next couple of quarters. Looking ahead, vehicle margin is forecasted to experience steady growth in the following quarters due to continued cost reduction, higher economies of scale, and product mix improvement.

A：Xpeng is preparing for its move into higher price segments by launching more high-priced models in the second half of the year. The company has a targeted market segment ranging from 100,000 RMB to 400,000 RMB, and starting from Q3 in 2026, it expects to launch many new products with brand new capabilities not only in the exterior and design of the car but also in the smart cockpit and autonomous driving capability. These new offerings are expected to surprise and excite customers and showcase the company's technological prowess.

A：The company acknowledges the increasing aggression in competition from both domestic and international players, including Japanese brands entering the Chinese market with localized products at competitive prices. The company remains firm in its belief that technological capability will be increasingly important for success in the competition, with manufacturing capacity becoming less relevant. The transition of automakers from integrated R&D formats to more focused and integrated R&D ecosystems is also highlighted as a future trend. The company believes that this will enable it to strengthen its technological position and become more competitive, especially in the mid to long term.

A：The collaboration with Volkswagen is advancing at a fast pace, meeting all milestones, and is currently less than one year away from the start of production for some of their products. Volkswagen has unveiled several models based on the G 9 platform and multiple models on the architecture developed jointly with Xpeng. These models are expected to enter the market starting from early next year.