A：Hello friends, I am Li Tengfei from Lixiang Automotive. Next, I will report on the overall performance of the company in the third quarter of 2025. In terms of business highlights, in the third quarter of 2025, the company's net profit reached 150 million yuan, and the cumulative net profit for the first three quarters was 180 million yuan. The gross profit margin in the third quarter of 2025 was 14.5%, an increase of 0.9 percentage points compared to the second quarter of 2025. In addition, the company's total car deliveries in the third quarter of 2025 reached 173,852 units, and the delivery volume in October once again broke the record, reaching 70,289 units. For eight consecutive months, it has ranked first in sales among Chinese new energy brands, and is the only Chinese new energy brand company with a monthly delivery volume exceeding 70,000 units.

A：In the third quarter of 2025, the company generated operating cash flow of RMB 48.8 billion and free cash flow of RMB 38.4 billion. As of September 30, 2025, the company had ample funds reserves, with a total of RMB 339.2 billion in cash and cash equivalents, restricted cash, financial assets at fair value through profit and loss, and bank time deposits. In terms of sales volume, the company sold 173,852 units in the third quarter of 2025, a year-on-year increase of 101.77% and a quarter-on-quarter increase of 29.63%.

A：In the third quarter of 2025, the company's revenue was RMB 19.45 billion, an increase of 97.3% compared to the same period last year. The revenue growth was mainly attributed to the increased delivery of vehicles and spare parts, which in turn drove the growth of revenue from vehicle-related services. The gross profit margin for the third quarter of 2025 was 14.5%, an improvement from 8.1% in the same period of 2024 and 13.6% in the second quarter of 2025. The year-on-year improvement was due to economies of scale from increased sales volume, continued cost management, and optimization of product mix; while the improvement compared to the previous quarter was mainly attributed to the optimization of product mix and continued cost control.

A：In terms of products, the C11 model has accumulated nearly 300,000 units in sales since its launch in 2021, becoming a phenomenon in the SUV market with the concept of "good quality but not expensive". On July 10th, the 410 Refresh was launched, achieving comprehensive upgrades in styling, cabin, range, assisted driving, and driving safety, further solidifying the C11 model's benchmark position in the midsize SUV market, with a single-month sales exceeding 11,000 units in October. The B01 model, as a high-quality intelligent sedan, was launched on July 24th, and with its leading intelligent configuration and excellent product strength, its monthly sales exceeded 10,000 units from the second month of its launch. In addition, Leapmotor achieved a historic moment on September 25th with the production of the 1 millionth vehicle, crossing from the 500,000th to the 1 millionth vehicle in less than a year. Furthermore, on November 15th, the company exceeded its annual target of 500,000 units in 2025 by a month and a half, expecting total sales to exceed 600,000 units for the year.

A：As of September 30, 2025, the company's sales and service network has covered 292 cities, an increase of 88 from the same period last year, with 866 sales stores and 493 service stores completed. The company focuses on introducing high-quality commercial resources in channel construction, by fostering high-quality investors to operate the seed program and introducing new local strong business plans. From January to September 2025, 120 new stores were built, effectively increasing the scale and quality of channels, with a 30.2% year-on-year increase in unit electricity sales for dealers. At the same time, the company continues to deepen its user-centric integrated operation system, through upgrading fine operation strategies and empowering dealer partners, ensuring seamless connection from online financing to offline experience to final delivery, significantly improving user satisfaction and core retail process indicators.

A：We are very pleased to see your interest in our export business. Our overseas sales have shown significant improvement in the third quarter of this year, especially with orders reaching 12,000 units in October, and expected to exceed 15,000 units in November. With the introduction of the B10 product and the increase in brand awareness, European and global customers have deepened their understanding of the Zerorun brand, and positive word-of-mouth feedback has led to rapid sales growth. Looking ahead to 2026, we believe that based on the current good momentum, with the gradual release of more new products such as the 885 and A platform products in overseas markets, as well as the expansion into new markets such as South America and the Middle East, the overseas market next year will continue the high-speed growth trend seen in the fourth quarter. Therefore, we expect the overseas sales target for 2026 to be between 100,000 to 150,000 units.

A：Regarding overseas local production capacity, we had two overseas localization projects in 2020, namely the Malaysia project and the Europe project. The Malaysia project is progressing rapidly and will achieve profitability in the first half of the year, while the Europe project will be launched in the second half of the year. We have made reservations for production capacity to ensure smooth import of vehicle models in the future. As for overseas profitability in 2026, according to our three-year commitment to United International, we will adopt a relatively low gross profit model in the first three years, allowing more gross profit to be granted to United International to help them better expand their market. Therefore, the overseas gross profit level in 2026 is expected to remain stable and comparable to this year.

A：Yes, the goal of 1 million refers to overall sales domestically and internationally. Currently, our cooperation with FAW is making progress smoothly. In March, both sides signed a memorandum of cooperation that involves four areas of collaboration. Among them, the first overseas vehicle project of Hongqi landed in April, and is expected to be mass-produced and introduced to overseas markets for sale in the second half of next year. Both sides are relying on their respective strengths to orderly push forward other projects, aiming for strong cooperation in various fields such as technology research and development, product, manufacturing quality, and supply chain.

A：Although there has been some fluctuation in battery raw materials in the recent period, supply chain leaders believe that the slight fluctuations in raw materials will not significantly affect battery procurement prices. In addition, with increasing sales and our scientific planning in battery types, our battery varieties are limited, which is beneficial for battery core manufacturers to increase capacity utilization and reduce manufacturing costs, thereby maintaining good competitiveness. It is expected that by 2026, with further increase in production and sales volume, our cost advantages and bargaining power in batteries will be maintained and developed. Meanwhile, the joint venture battery company with Zhongxin Innovation is expected to start production in September next year, which will further help improve costs.

A：There are three main aspects of the increase in research and development expenses: firstly, increasing investment in electronic support frames for Three Stores, it is expected that everyone will be able to experience the latest results in the first half of next year; secondly, investment in new products, with annual research and development of annual model change products; thirdly, investment in and reserve of future-oriented technologies, including the research and development of intelligent driving supporting technologies and high-tech technologies related to electronics, to ensure that technological resources can support the key technological requirements from L3 to L4, and at the same time, the qualifications and resources of our own stores are continuously increasing in depth and breadth.

A：Facing fierce market competition, we always insist on doing our best, leveraging our product capabilities, overall self-research and development capabilities, excellent product capabilities, and cost control capabilities, as well as platform capabilities and the ability to quickly apply new technologies. We apply these capabilities to our products, maintaining and enhancing the value for money of our products. Regardless of the price of the product, we are committed to becoming the most cost-effective product in the new energy market, so that users can truly feel the value.

A：The increase in management expenses is a normal growth caused by the overall development of the company, the expansion of personnel and business scale, in line with expectations and maintained within a reasonable range. From both horizontal and vertical comparisons, the company's management expense ratio is at a relatively excellent level.

A：Overall, the profit level for the fourth quarter is expected to remain largely steady compared to the third quarter, with the key factor being an increase in sales volume. The ending of subsidies may lead to higher market caution and a decrease in purchase willingness, but the company will implement corresponding strategies to maintain a profit level close to that of the third quarter.

A：The strategic planning of the new species has been determined at the strategic level, with clear directions for product, brand, and channel development. The new species team is currently being assembled, with the framework being constructed and product development proceeding in an orderly manner. The new species is an innovative product belonging to a completely new category, and is expected to be launched in 2027 or 2028. Specific breakdown data on sales, due to issues related to domestic and international launch schedules, cannot be provided at this time.

A：Currently, we have not introduced a purchase tax guarantee policy for next year because based on our balance of current sales and production, and the scientific and reasonable allocation of dealer inventory, we are confident that we will achieve a good balance of production and sales volume and terminal delivery volume in December. For customers who cannot be delivered this year, we will implement corresponding purchase tax guarantee policies. As for next year's policy, we are not worried because the country is cracking down on unfair competition in the automotive industry. We believe in our own product capabilities and cost control capabilities, which give us a certain advantage in the industry. We will formulate response strategies based on cost and profitability to maintain competitiveness.

A：Indeed, as you said, this year Slaines's brand in the new energy sector did not perform well, but instead, its controlling brand's performance overseas was the most outstanding. Therefore, Slaines group internally placed greater emphasis on the leading brand and hopes to accelerate the development of the leading brand in order to drive the pace of the entire group's transformation to new energy. The group not only provided more support in the sales of partner companies, such as assigning senior European TOB sales leaders to joint ventures, increasing sales, but also increased investment in localization, product collaboration, and other aspects, in order to achieve a better transition to new energy through these measures.

A：Since the D series debuted in October, it has received very positive feedback from the market. The pre-orders for the machines far exceeded expectations, with the highest order quantity received for a product launch in the same period. This has instilled strong confidence in the D series for the company. We believe that as more product information is released, users will have a deeper understanding and acceptance of the products. As for pricing, the D series is positioned as a product in the 300,000 RMB range, emphasizing cost-performance ratio rather than just price comparison. The profit margin will be adjusted based on the final competitive situation and sales level, expected to remain in the 15% to 20% range. We focus on value comparison when pricing, even if faced with products at lower prices, they may have significantly different configurations. For example, the extended range product of the D series has an 80-degree battery and a 500-kilometer pure electric range, which cannot be directly compared to lower-priced models with only about 100 kilometers of plug-in hybrid range. We focus on overall value, rather than simple price comparison. The company has full confidence in the product strength of the D series, and believes that when the final pricing is revealed, it will definitely surprise everyone. At the same time, there is strong confidence in the market performance of the D series as well as MPV models.

A：In the third quarter, the overall performance of the company met or even exceeded expectations, with sales reaching 460,000 vehicles, and the net profit achieved a half-year profit turnaround, reaching nearly 200 million yuan. Going into the fourth quarter, sales are expected to see a further increase, with a target of 580,000 to 650,000 vehicles for the year, and a projected net profit of 500 million to 1 billion yuan. With the launch of new products, including the A series released online last Friday, the company is confident in achieving the target of selling millions of vehicles next year. We believe in letting our performance speak, relying on products and overall operating capabilities to enhance internal, industry, capital market, and user confidence in the company. Thank you once again for everyone's participation, and wish you all a successful investment.