NIO Inc. (NIO) Earnings Call Transcript

[Presentation] Good evening, everyone. Thank you. Thank you. Good evening everyone, welcome to NIO Berlin. I'm William. Thank you. I'd like to extend my warm welcome to our users, friends from media and partners in Europe. Welcome. This event is also live streaming on 13 platforms. I'd like to say hello to everyone online. Hello. In 2012, I had a thought on starting a smart EV company. Back then, I used to hike on high mountains where I saw the receding snow line. I realized global warming has been changing the world that we all live in. I felt I should do something. One day, in February 2014, I stood on my balcony and I couldn't see the building a few hundred meters away because of the smoke. That was only 1 month before my first child was born. I didn't want my child and his generation to grow up in such environment. And so I wrote a note telling myself, I should take action. In November 2014, NIO was founded, that was the beginning of our story with the aim to create better products and experiences. And smart EV will become a natural choice for everyone, leading to a more sustainable tomorrow. In November 2016, we unveiled that brand in London. The upper part of the NIO logo is a view of the atmosphere of our planet representing sky and vision. And the lower part are the roads perspective forward representing earth and action. Where sky meets earth is the horizon. Horizon always symbolizes hope and a new beginning. I believe all of us have seen unforgettable horizons. This beautiful horizon was captured in Sankt Peter-Ording a sea-side town by German artist, [ Stefan Galea ]. From day one, NIO has been a global startup, talent from different cultures and nations come together to make NIO a leading company. To date, NIO has colleagues from over 40 countries and regions across the world, working for shared vision, born to push limits. In June 2015, we won the first FIA Formula E Drivers' Championship. In November 2016, we launched the electric supercar, NIO EP9, in London, everyone liked it. Six months later, it broke the lap records at Nürburgring Nordschleife. In March 2017, we presented vision car, EVE, in Austin, U.S. EVE is our imagination of the future car, a second living space with autonomous driving, immersive digital experience and AI companion. From track to road, from imagination to reality. Step-by-step, we made it happen. Since May 2018, we delivered ES8, ES6 and EC6. This year, we delivered our second-generation products in China, ET7 in March, ES7 in August and ET5 in September. At the end of September, we had over 250,000 users in China and Norway. As of today, our users traveled over 6.8 billion kilometers in total. What reassures our users to travel such long distance is a chargeable, swappable, upgradable service system, NIO Power. As of today, we have installed 1,158 Power Swap stations. Over 11,000 NIO chargers and are connected to almost 1 million third-party chargers. User experience is not only about products and services, but also about community. In NIO community, we share joy and growth together. NIO House is the space for the NIO community. Here, you can grab a coffee or city drink, join inspirational event, appreciate art, work, relax, meet and celebrate. There are 83 NIO Houses to date, many more to come in Europe. NIO Life connects our users with some of the most talented designers. We have collaborated with over 500 international designers, launched over 1,000 lifestyle products and delivered 8 million items. Lately, we invited artists in Europe to create Hello World Collection, and 4 of them are here with us today. Welcome. NIO communities are active and vibrant. More than 80,000 events and happy gatherings took place. NIO Day, our most anticipated event at the end of each year. NIO Summer is the most widely joined event. This summer over 220,000 people came together having a great time. NIO Community is caring and responsible. Over 16,000 NIO users volunteered in social and community services. Last year, we launched the Clean Parks initiative and entered a partnership with UNDP and WWF. Just 10 days ago, we partnered with the Danish Society for Nature Conservation in 4 Danish nature reserves we will help with the use of clean energy to reserve the ecosystem, to ensure the sustainable development of our user community. During NIO's IPO in 2018, I transferred [ 40 ] million NIO shares beneficially owned by me to the NIO User Trust. NIO User can discuss and propose how to use the economic benefits from these shares. This further deepens our connection with users and advances our aspiration of becoming a user enterprise. Our user community is growing. Since last year, we started delivering services to users in Norway. We announced that by 2025, we will be present in 25 countries and regions. We hope more people enjoy our products and services. This September, Lihong and I took an ET7 road trip of 2,500 kilometers. Starting from Munich, we drove to 5 countries, visited 10 cities, and arrived in Oslo after 10 days. We tested our car, experienced all kinds of public charging stations, visited NIO Houses and Power Swap stations under construction, met our partners, colleagues, and most importantly, our users. Users advice is essential to us. NIO User Advisory Board, UAB, is a group of users who volunteer their time to share their ideas and thoughts. There are 270 UAB members in Europe now, they help us a lot and some of them are here today. Where are you? Thank you for coming. Thank you. Thank you. Extraordinary experience won't be possible without an extraordinary team. Our experienced, diverse and determined team is here in place ready to serve our users. Where is the team? There? Over there. Thank you. Thank you, team. Now I'd like to give the floor to 4 team members: Andreas, Ted, Danilo and Ralph. They will work you through NIO's latest products, leading technologies and our services in Europe. First, let's welcome Andreas, our Design Director. Andreas is leading the design of our latest generation cars. In fact, he decided to become a car designer at the age of 10. Welcome.

Thank you, William. Hi, everyone. Yes. My name is Andreas Nilsson, and it's so nice to be here tonight with all of you here at our NIO Berlin Event. We just heard William explain why he started NIO and the vision. And that is exactly the story he told me the first time I met him, and the very reason I wanted to be part of this amazing company. So thank you, William. Okay. Today, I will share with you NIO Design. Yes. We have some members here, so cheer me on. At NIO, we believe design is a way to express who you are. Design is a way to express what you want to become and design is the way to express what you believe in. That is why before we even design the product, we design the NIO value system. Back in 2015, we held workshops here in Europe actually to define who we are and what we believe in. And from that day, NIO follows these values, and we believe that acting according to them helps us make a positive impact in this world. Our values are honestly care, vision and action. The values are what we believe, and the design principles are how we express them. When you encounter a NIO, you will experience an honest, pure design expression, containing caring materials, human qualities based on visionary progressive ideas and brought into action in a sophisticated way. Pure, human, progressive and sophisticated is our DNA and how we design. At every step, reduce complexity, distill down to the essence of the idea, make the function as beautiful as the form, sleek silhouettes, clean facia, driven by aerodynamics and technology, uncluttered design, in harmony with any surroundings. Add life, add soul, add heart, make something inviting, something that feels familiar, something that senses, empathizes and responds. A warm, welcoming ambience, surfaces made from clean plus antibacterial material, interiors that embraces the occupants. Be bold, challenge the accepted, push onwards and upwards, be part of shaping a more positive future. Separate Double-Dash daytime running lights, ilumiBlade, taillamps, waterfalling lighting, fabric covered speakers in all an atmospheric ambience. Now celebrate precision. Perfect every detail through discipline and control, make a statement out of the understated, the finest window switches, precision detailing, karuun, an innovative sustainable material. Pure, human, progressive and sophisticated. You can see this principle in all kinds of NIO products, of course, in our cars, but also in our NIO Life products, even in our swap stations. Now design is not only about expression, design should also have a purpose. Today, technology advancements brings us possibilities to create greater value for our users. And as William mentioned back in 2017, the EVE vision car showed our imagination of the future. We think cars in the future will be different in 3 aspects. And here, we can create that added value for our users. Autonomous driving can free your time while also making your car safer. And with smart cabin technology, the car will become a second living space, bringing an immersive experience. And we believe AI technology will transform the car from a cold machine into a friendly companion. But bringing concepts into reality is always a challenge, as well as integrating that advanced technology in a harmonious way. In our NIO production cars, we have been implementing these 3 elements: Design for AD. We really embraced our AD sensors as a new architecture and seamlessly integrated that technology into the design. The right thing was to case every single sensor where it should be. And after exhausting every possible solution, we finally found the watchtower LiDAR and camera layout that fully unleashes the performance. We are the first to do this as pioneers. We are setting the trend. A NIO car is a mobile living space with an immersive experience. Again, there's a challenge of fusing technology and a living space. And of course, we want to use the latest digital technology for the cockpit, but we don't want it to feel too intrusive. And the key is in the harmony between these in this environment. When designing the interior space and developing the materials, we already consider the integration of evolving technology. At the same time, though, we take people into account when implying that technology to avoid any intrusive feeling. And overall, atmosphere is created through scent, touch, ambient light, giving you an immersive cabin experience. But this is not the ambient lighting you normally see there out in the market. No, it takes the shape of a waterfall and gives you a feeling of sitting in opera or a cinema. All of this together give you a mobile living space with an immersive experience. We design to make our cars feel like a friendly companion. Now everyone in the industry has voice control. It's a good form of interaction. But speaking to air is not very natural, is it? We wanted this to feel emotional and natural, like you're talking to a friend. And with AI and advanced technology, we created NOMI. NOMI means no me, hence the name. It is now your friendly driving companion and no longer just a cold machine. Through technology and design, we are bringing our imagination into reality. Behind every car and every product, even every part of NIO, you can see our systematic thinking of design and the kind of company that we want to become. Design carries our values: honesty, care, vision and action expressed through our design principles, pure, human, progressive and sophisticated. This is the way of NIO design. Thank you all. Now let me introduce to you the head of our product experience, but also the very first employee of NIO, Ted Li.

Thank you. Thank you, Andreas. Hi, everyone. My name is Ted Li, and I'm responsible for product experience at NIO. Today, I will introduce the NIO Smart System, which sets the foundation to all digital product experiences. This system is targeted to create experiences beyond expectation, with an architecture that unifies hardware, software, algorithms and digital services. A smart system consists of 5 pillars: vehicle computing platform, operating system, in-car smart hardware, smart algorithms and smart applications. Generation after generation, it grows like an organic and sustainable system just like a forest. And this is the reason we gave names to all our smart systems in trees. Today, we are launching our newest smart system, Banyan. All products you're going to see today are based on this. It will free people's time, turning a car into a joyful mobile living space and a smart companion. Let me take you deeper into the Banyan. It is our vision to turn a car into a safe and mobile living space, and it is the ultimate mission to intelligent driving systems to free up users' time and reduce accidents. Until today, NIO Assisted Driving System has been used over 7 million hours, bringing safety and comfort to all our users. From perception algorithms to mapping and localization, from low-level systems to planning and control logic, NIO has built full stack R&D capabilities for intelligent driving. Today, we're going to focus on sensing and computing. Aquila, super sensing system with leading sensor hardware and systematic design. 8-megapixel high-resolution cameras, delivered in mass-production vehicles for the first time. It is one of the most advanced automotive cameras in the world. It is capable of detecting vehicles over 680 meters away, traffic cones over 260 meters away and pedestrians over 220 meters away. Seeing far means reacting fast, which contributes significantly to reducing accidents and a much more comfortable ride. Every step to improving safety matters, and we believe LiDAR is a must. Aquila's high-performance LiDAR has a 120-degree field of view with a resolution as dense as a 300 line rotary LiDAR, capable of detecting objects up to 500 meters away. This is a real footage taken from Aquila's LiDAR at night. Scenarios like this, driving on-highway at night, dark objects on dark road surfaces, or dazzling, unclassified objects, higher resolution LiDAR is absolutely needed to improving safety. With 120-degree horizontal field of view, Aquila is designed to perform in complex cross traffic as well. Our unique dynamic focus feature can densify and zoom into areas of interest to enhance detection of specific cars, pedestrians or even pets. With more precise 3D information, it improves safety and usability in urban scenarios. In addition to sensor performance, sensor layout plays an underpinning role to intelligent driving. Aquila's watch-tower sensor layout can significantly improve sensor visibility, which is critical in much more complex road conditions. In cities, like the video shown here, sensors are often obstructed by the environment and other vehicles. Comparing to cameras mounted on the B pillars or side mirrors, Aquila's high-mount side front cameras reduce blind zones and achieve an overlapped vision redundancy between left and right. This watch-tower sensor layout is essential to driving in urban conditions. In addition to this, Aquila comes with four 3-megapixel enhanced camera for surround view, 5-millimeter wave radars, 12 ultrasonic sensors, high-precision IMU and GPS, hands-on detection and advanced driver monitoring system, 33 high-performing sensing units in total. Such a powerful system generates more than 8 gigabyte graphic data per second, equivalent to loading 2 films with 4K resolution in just 1 second. To process such magnitude of data, more powerful computing is needed, NIO supercomputing platform, ADAM. Inside ADAM, there are 4 mighty NVIDIA Drive Orin X chips, primary backup, training , inferencing, with 48 CPU cores, 256 Tensor cores, 8,096 CUDA cores and 68 billion transistors. As a result, ADAM has a total computing power of 1,016 trillion operations per second. Super sensing and supercomputing comes standard across all products with the Banyan system, and there's more. 22 advanced safety and ADAS features, including parking assist, lane centering control and even active lane change, all come standard with Banyan as well. We're also delivering NIO's iconic Power Swap with assisted parking. With advanced algorithms and fusion localization technique, it allows a one-click, hands-free automated battery swap experience in less than 5 minutes. We have set up an AD testing and development center here in Berlin to continuously develop and release assisted and intelligent driving features that are safe, compliant and adaptive to various road conditions, and this activity started back in April 2021. More advanced safety, assisted and autonomous driving features are under development. From battery swap to parking, from highway to urban driving, we will roll out new features through the over-the-air update step-by-step upon full validation in Europe. Our ultimate goal for the Banyan system is to realize NIO autonomous driving and AD. Under limited conditions and compliance to regulations, we will communicate this in the near future. A free mobile living space is also a progressive living space with the latest technology. This new generation of digital cockpit is simply intuitive and easy to use. Four screens integrated seamlessly, yet not being intrusive, celebrating the smart technology in a human way. Our user interface is also pure, sophisticated and intuitive. A good balance of aesthetic appearance and functional intuitiveness enabled our UI design to win the User Interface award at the iF Design Award 2022. What's powering all is the latest generation of NIO digital cockpit platform, embedded with Qualcomm 8155 chipset, boosting the AI computing, image processing and multimedia entertainment to the next level. Banyan comes with a full set of the most advanced connectivity, including 5G capability, Wi-Fi 6, the world's first ultra-wideband smart key, of course, Bluetooth, [ NFC ] and [ DAB ] come standard. On the outside, Sony's latest 3-megapixel enhanced surround view cameras allows improvement over low-light performance condition significantly. This allows Banyan to achieve more advanced sensing and AI capabilities, like 3D surround view, like transparent chassis and vision-based parking assist. We will also deliver Guardian mode through over-the-air updates, which provide deep reassurance when you're away from the car. Banyan also provides great experience in stationary scenarios. PowerKeep mode keeps air conditioning and smart system up and running when you're away from the car, vehicle is locked, solves the pain point of getting out of the car shortly for pickups and even paying fees. Camping Mode keeps all lights and display off when you're sleeping inside, keeping the temperature and fresh air circulated, while giving you freedom by stalling the gear and pedals to avoid miss operation. Of course, pets. Pet Mode ensures the safety of pets, as well as the reassurance to their owners. With more features like this, we discovered a new pain point for smart EVs, too many features. To simplify efforts while fulfilling diversified user needs, we need smarter solutions, and this is Banyan's Smart Action function. It allows over 45 triggers and over 150 functions to be highly customizable and automated. You can even create your own smart action and share or download from others. Here's an example from our users called Lounge Mode. From the naming to the voice interaction, a variety of automated steps can be precisely sequenced, from display, lighting to seating, massaging, fragrances, even playing a slight white noise as the background. This perfectly exemplifies our philosophy of creating a mobile living space. And we didn't stop there. With cutting-edge technology, we can turn the automotive interior into a fully immersive digital space. We call it PanoCinema. With pioneering in-car interaction system, it brings joy through our senses, to our users through video, audible, haptics and even sense. Waterfall Ambient Light and Smart Fragrance serves as a base note to a living room like interior. Standard with 23 high-end speakers at 1,000-watt power, Banyan has the world's first mass produced 7.1.4 surround system with Dolby Atmos inside. Industry-leading Dirac Pro spatial audio and sound tuning algorithms enhance a true immersion with enriched fidelity and depth of sound. We also provide Spotify and TIDAL as premium audio content, and we'll continue to provide more audio and video content and even karaoke in the future. We will also need one more thing, which is a much more immersive video experience and AR. Augmented reality is the best technology to achieve PanoCinema experience. This is the NIO AR Glass, the world's first in-car smart glasses with hardware, software, algorithm and content natively designed for Banyan. When you turn it on, a virtual 130-inch immersive display emerges 3 meters away, completely breaking the limit of physical screens. With dual lens glasses, it naturally supports 3D movies in the vivid way. Even when the vehicle is in motion, our industry-first stabilizer algorithm allows a smooth and comfortable viewing experience without even shaking. Light, sound, augmented reality, a truly immersive digital space is made possible with the Banyan system. Inside this progressive living space, we also need a smart companion. Our vision is to bring cars alive, a car with emotions. As a user being able to NOMI is the ultimate experience target, and this has led us to creating the world's first in-car AI system, NOMI. Back in 2015, we already believed that AI, especially voice conversation technology, will grow exponentially. But the key to it is more than speech, especially inside the car, people talking to cars feel more like talking to the air without a listener without eye contact. And we want users to speak to someone, that is the reason why we invented the first in-car physical AI embodiment, and it comes with 2 distinct characters. This is NOMI Halo, it is an avatar of the car, communicating with you through a crisp light band and a glowing base, designed with a sense of technology and sophistication. Halo's voice is also designed to fit its techy style that has a special texture on top. And this is your familiar NOMI Mate. Mate is a useful and curious spirit, talking to you in a warm and human way. When you open the door Mate turns its head and greets you. Every single seat can talk to Mate freely with sophisticated algorithms behind it. Mate comes with numerous emojis while performing different tasks like navigation. They are much more than this. Today, we're giving you a brief introduction, but there are more to explore and discover. Today NOMI generates 1.5 million conversations in a single day. It not just plays an important role for grownups, but has also become a great companion to children in the family. This is a warm photo taken by our User Advisory Board member, Mustafa in Norway and his daughter, Eliana. He's here, my friend. She loves NOMI, but she loves to dress up NOMI even better. At this moment, Eliana things NOMI her true companion. What a lovely scene. NOMI is still learning and growing. With the delivery of Banyan, NOMI Mate is able to speak in English, German and Norwegian, with Danish, Swedish and Dutch coming a quarter later. We have established a development center for AI technology also in Berlin, and NOMI will continue to learn more languages and become smarter. Lastly, and as the first greeting, I will kindly ask NOMI to say a word in German.

[Foreign Language]

Thank you, NOMI. We will see you soon. Like NOMI, iteration and upgrade has always been NIO's product foundation since the beginning. Back in 2018, the very first ES8 was already designed to be upgradable, and we continue to enhance it. Today, Banyan has more than 50 FOTA upgradable controllers in the body, chassis, power, infotainment and assisted driving domain, ensured with advanced data security and user privacy from cloud-to-edge. Based on this capability, we have completed more than 100 updates to our users in China in the past and pushed more than 260 new features, and we will continue to bring a satisfactory experience to our users in Europe. This is Banyan, a new generation of NIO Smart System. With leading hardware and software integration, it makes our product a true free mobile living space. A smart companion that makes life joyful. Now I would like to introduce my next colleague to talk about our vehicle technology. Danilo and I have been working together since the very beginning of the company, and we together have created many industry firsts. He is the real expert that manages to push automotive engineering to the limit. Here's Mr. Danilo Teobaldi. Welcome to the stage.

Thank you. Thank you, Ted. Hello, everyone. Warm welcome to this event. I'm Danilo, Head of Vehicle Engineering in NIO. Ted gave us a very good explanation of what makes an EV smart. It means pure, intuitive, thought-through mobile living space. But what makes NIO product premium? Let me start with high performance. From day 1, we set very high standards for ourselves, and we are living up to those step by step. While breaking records, NIO has also developed its understanding of ultimate performance. And since then, every NIO product has high performance in its DNA. High performance EV should have powerful powertrain, highly efficient power electronics, precise and confident handling. Electric dry system, or EDS, is the powerhouse of electric vehicles. And NIO is one of the very few car companies capable of developing and manufacturing such complex system on its own. Like every NIO car, the 3 models we are going to launch today all come with dual motor intelligent all-wheel drive. They're able to sprint from 0 to 100 in less than 4 seconds, and associated with a braking distance within 34 meter, we can truly say that every NIO car is as powerful as a supercar. Moreover, in our second-generation ADS, we use silicon carbide which is a technology that further boosts power and efficiency. Each car is as well-equipped with very advanced chassis system. Air suspension, continuous dumping control on ET7 and ES7, and front rear 5-link suspension, hydraulic rebound stop on ET5. But hardware is just the first step. NIO in-house developed intelligent chassis unit, being together controls of air springs and CDC dumpers. This enables our European and Chinese team to precisely tune the chassis character on every model, balancing the handling and comfort needs of our users. Thanks to our proprietary software . FOTA updates will bring additional flexibility and iterations. In conclusion, we offer multiple intelligent drive modes to fulfill different driving scenarios. And you can still use our custom mode to personalize your driving experience at its best. But it's not just about performance. Premium also means enjoying the ride in your mobile living space. This vision of joyful journey propels NIO to make continuous cutting-edge technological exploration. We try our best to build this space with uncompromised safety, sustainable manufacturing processes, to achieve healthy, comfortable, reassuring in-car environment. We always go all out to improve user safety. NIO global model, not only fulfills the 5-star standards in mainstream markets, but also adopt higher standards in many critical scenarios. Here we have just one of many examples as an electric vehicles, we need the high-voltage system to be stable and safe after any crash. Therefore, we designed the Front Center Pole crash test, which is adding up to all the existing crash-test scenario from the safety organization. Additionally, let me also tell you that the official Euro NCAP test of ET7 are ongoing as we speak, and we expect the results to be published in mid-November. When it comes to production, we use the industry-leading casting technique, which transforms the rear floor of ET5 from over 50 pieces into concise 2-piece design. Within integral casting, production becomes more environmentally friendly and efficient. With this approach, vehicle mass and space can be further optimized. We've also built a closed-loop process to make sure that 100% of the redundant aluminum can be recycled back to our production line. But it's not only about being safe and environmentally friendly, we also want the car to be spacious. So we optimized the vehicle layout, maximized the utilization of the wheel base and deliver more room for the passengers in the car. NIO's roominess efficiency is 65% over the wheelbase, which is leading in our market segment. When it comes to quietness on each model, we use solutions like silent tires and laminated glass, in combination with the body, EDS and acoustic pack optimization, all to keep you away from any external noise. As a result, NIO NVH performance is in the leading position within the premium segment. And how about harmless interior material? The Haptex PU material, which covers the majority of the internal services that will be touched every day has the strictest harmless requirement. It has been recently certified by OEKO-TEX Standard 100 as a Product Class 1, the level of products for babies. NIO car is a mobile living space for you and also your family, safe, roomy, quiet, harmless, with such a friendly mobile living room, our users would wish sustain it for a really long time and mileage. We recently bought back from a user, an old friend. This ES6 clocked over 400,000 kilometers, and we want to see if it's still in good condition. Car level testing shows that the acceleration, braking and in-cabin quietness are still on the same level of a new car. But not to leave any stone unturned, we also did a tear-down, and we are now testing the part-level performance after 400,000 kilometers. We'll share the results with you later. You might have noticed here that there is 1 special part that it looks fresher than any other, and it is the battery pack. Following, I will introduce our thinking in how we make this happen. It's chargeable, swappable, upgradable is the NIO Power Total Solution. For that, we have come up with a CSU architecture also for our vehicles. Chargeable, we have the CCS2 charge port, which can support AC charging up to 11-kilowatt, and DC charging up to 140 kilowatts and giving you over 140-kilometer range in 10 minutes. It's swappable. On the vehicle, we have the innovative [indiscernible] concept, which is durable and robust. It reliably secures the battery to the underbody and enables precise battery swapping. As of today, we have completed over 13 million swaps for our users. I can say that the reliability or robustness of our swapping mechanism is very well verified. But it's also upgradable. We have unified the dimension and interfaces for all battery packs, and we have a NIO in-house developed battery management system. We currently provide 2 battery packs, the standard range and the long range. You can use standard range for daily commute, and flexibly upgrade to long range at the Power Swap station. Starting next year, the 150-kilowatt hour battery will be available in Europe, with significant increase in range. Agile and powerful, safe and reliable, NIO has the mechanical qualities that premium brands are famous for. More than that, thanks to the innovative CSU architecture, every NIO car is a high-performance electric vehicle with chargeable, swappable and upgradable battery. This, we believe, is the new horizon of engineering. Thank you. Thank you. Thank you. And now ladies and gentlemen, the moment we've all been waiting for. Let's welcome ET7, ES7 and ET5. [Presentation]

Aren't they beautiful? It's such a great moment. It's such a great moment for all of us in NIO to see these amazing cars on stage in Berlin. It's really paying off all the long working hours and sleepless nights. But let me introduce them one by one. ET7 Ready for Tomorrow. NIO smart electric flagship sedan. NIO iconic X-Bar and Double-Dash daytime running lights, together with the watchtower sensor layout on the roof. ET7 is a futuristic and perfect blend of technology and beauty. Its flagship dimension that every occupants enjoying a spacious interior. Outstanding drag efficient of 0.208, with dual-motor system coming standard model has a total power of 480 kilowatts and can sprint from 0 to 100 in just 3.8 seconds. The air suspension and CDC make sure the car is powerful, yet poised anytime. With 100-kilowatt hour battery, it's WLTP driving range is up to 580 kilometers. Now let me show you the way to get in. Thanks to the ultra-wideband technology, or UWB, the car will timely unlock when you approach. The frameless window and soft-close system not only make the door pure and progressive in form, but also very convenient and elegant in function. ET7 interior is a perfect interpretation of your second living room: spacious, comfortable, sophisticated with human touch. Air vents on the front and rear are smart, seamlessly integrated. They're able to adjust direction and fan speed according to the situation. Heating, ventilation, massage are all standards on 4 seats, and the rear seats are also equipped with our innovative Air Cushion system. Smart, elegant and poised, this car is a perfect embodiment of NIO exterior philosophy of Design for Ready, an interior philosophy of the Second Living Room. This is ET7, the smart electric flagship sedan. [Presentation]