Li Auto Inc. (LI) Q1 2026 Earnings Call Transcript

Hello, ladies and gentlemen. Thank you for standing by for Lee Auto's first quarter 2026 earnings conference call. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Janet Zeng, Investor Relations Director of Lee Auto. Please go ahead, Janet.

Thank you, Operator. Good evening and good morning, everyone. Welcome to Lee Auto's first quarter, 2026 earnings conference call. The company's financial and operating results were published in a press release earlier today and were posted on the company's IR website. On today's call, we will have our chairman and CEO, Mr. Xiang Li, and our CFO, Mr. Johnny Tierley, to begin with prepared remarks. Our president, Mr. Dong Hui Ma, and our CTO, Mr. Yan Xie, will join for the Q&A discussion. Before we continue, Please be reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Dedication Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding risks and uncertainties is included in certain company failings with the U.S. Securities and Exchange Commission and the Stock Exchange of Hong Kong Limited. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that Li Auto's earnings press release in this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to Liado's disclosure documents on the IR section of our website, which contain a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures. Our CEO will start his remarks in Chinese. There will be English translation after he finishes all his remarks. With that, I will now turn the call over to our CEO, Mr. Xiangli.

Please go ahead. 大家好 我是理想 欢迎各位参加今天的业绩电话会议 今年一季度以来 我们的交付量进入到了增长轨道 1月至4月理想汽车在20万元以上中国新能源汽车市场重新回到中国品牌销量榜首的位置 纯电车型理想i6的销量稳定在2万辆每月的水平 是纯电SV销量的Top3 5月15日 全新理想29正式发布 并已于17日开启交付 全新R9提供Livis和Archor两个版本 定价分别为50.98万和45.98万元 全新一代理想R9的核心目标是要达成旗舰SUV的市场地位 在造型设计 全价底盘 增程算电 智能算力等重要的旗舰产品人之层面 实现了行业的领先 定义了新一代旗舰SUV产品必须有的实力 在开始销售的前两周 成交价50万元以上的理想R9 Lewis车型 获得了超过1万的大定 预计理想R9 Lewis可以在50万元以上的新能SUV市场 保持20%以上的市场份额 期间SUV的核心目标初步达成 6月份开始 我们将重点聚焦传播和推广 理想R9 Aqua车型 努力试验在40到50万的新能SUV市场 获得20%的市场份额 理想R9是理想R系列全系换代的开始 我们将在6月底发布全新一代的理想R8 一款非常棒的五座旗舰SUV 它强大的产品力就是一个理想R9的五座版 这和上一代R8要降级的本质是不同的 同时新理想R8也是全球范围内操控最好的大尺寸SUV 五座二排的舒适性也是同级别体验最好的 随着理想R9的发布 自研芯片马赫M100和马赫VLA大模型成功一体化部署上车 这是软硬协同的量产落地 是理想机车发展的重要旅程碑 一颗全新的芯片能够第一次上车就稳定交付全部功能 在中国上述首次 马赫M100芯片为5纳米车规AI推理芯片 基于AI原生的动态数据流架构 这种创新的部署方式及其更强的算力为我们构建了长期的技术壁垒 通过软件一体化设计 M100芯片还以相近成本实现了三倍有效算力的提升 马赫M100支持我们将最新的自研马赫VLA部署在车端 该模型参数量较效益弹提升10倍 马赫M100和马赫VLA的上车只是一个稳定的开始 后续凭借更大的模型规模以及更高精度更高帧率的训练数据 这下的体验将出现巨大的跃升 由于5月15日的发布会主要聚焦于硬件和性能的讲解 而我们的软件和智能化能力的进步 大概需要两到三个小时才能讲的比较好 同时还必须有用户提车以后方可真实体验 在6月也就是下个月 我们还将举办软件和人工智能的发布 用足够多的时间 深度讲解车机交互 机座模型 智能驾驶 系统agents 自研芯片 在内的能力的真实体验 向大家直观呈现软件和聚身智能究竟带来什么样的用户价值和巨大的提升 敬请关注 随着核心技术和全新产品矩阵的稳步落地 我们维持20%的全年销量增长目标 下面有请我们的CFO李铁

Hello everyone, this is Li Xiang and thank you for joining today's Earnings Conference Club. In Q1 of this year, our deliveries entered a growth trajectory. From January to April, Li Auto returned to the top position in sales among Chinese brands in the Chinese new energy vehicle market, priced at RMB 200,000 and above. Monthly sales of our BEV model, the BL6, I6, has stabilized at 20,000 units per month. ranking top three among all the best SUVs. On May 15th, we launched the all-new Lee L9 with delivery starting on May 17th. The all-new L9 comes in two terms, Livis and Ultra priced at RMB 509,800 and RMB 459,800 respectively. The primary goal of our all-new generation Lee L9 is to achieve the market position of a flagship SUV. In important aspects of flagship product perception, such as styling, suspension, and chassis, range extender, and electric powertrain, as well as intelligence and computing power, it sets the standard for what the next generation of flagship SUVs must possess. Within just two weeks, the L9 Libis secured over 10,000 orders with transaction prices of over R&B 500,000. We expect that it will maintain a market share of over 20% in the R&B 500,000 and above NEB SV market. Starting in June, we will focus our communication and promotion efforts on L9 Ultra, aiming to capture a 20% market share in the R&B 400 to 500,000 NEV SUV market. The all-new Lee L9 marks the beginning of a series of new product rollouts for the Lee L series. In late June, we will launch the all-new Lee L8, an exceptional five-seater flagship SUV. As the five-seater version of the all-new Lee L9, it is a complete overhaul from the previous generation, and it is no longer a downgrade from the L9. We believe the all-new Li-L8 might be the best handling large SUV globally while delivering the most comfortable 5C experience in its class. With the launch of the all-new Li-L9, we have successfully and fully deployed our proprietary MAHE M100 chip and the MindVLA model. This mass production of our full-stack hardware software solution was a key milestone for us. We're the first company in China to deliver full functionalities on a brand new chip in its first ever on-vehicle development. The Mahou M100 chip is a 5-nanometer automotive-grade AI inference chip built on an AI-native dynamic data flow architecture. This unique architecture and superior computing power established a long-term technological mode for us. With an integrated hardware and software design, our chip delivers three times the effective computer power per unit cost. Furthermore, the Mahe M100 chip enables us to deploy our latest MIND VLA model on our The number of parameters in this new model increased tenfold from the previous version. The rollout of Mahe M100 and the MIND VLA is just the starting point. Moving forward, with larger models and data training at higher precision and higher frame rates, we expect a massive leap in the autonomous driving experience. The May 15th event focused primarily on hardware and vehicle performance. We believe it would require a dedicated two- to three-hour session to fully showcase our advancements in software and intelligence. We're planning a separate launch event in June dedicated to software and AI. We'll take the time to provide an in-depth walkthrough of the real-world experience across in-cabin interaction, salvation model, autonomous driving, system agents, and our Mach-E chip. We look forward to giving a deep dive into the many things we can bring to our lives through software and embodied AI. Please stay tuned. With the steady rollout of our core technologies and our updated product portfolios, we maintain our full-year sales growth target of 20%. With that, I'll turn the call over to our CFO, Johnny, to walk you through our financial performance. Thank you.

Thank you, Lisa. Hello, everyone. Given time strength, my remarks will be limited to first quarter financial highlights. All figures will be quoted in RMB unless otherwise stated. For further details, including the corresponding US dollar amount, we encourage you to refer to our earnings price relief. Total revenues in the first quarter were $23 billion, some 11.4% year-over-year, and 20.1% quarter-over-quarter. This included 21.5 billion from vehicle sales, down 12.7% year-over-year and 21% quarter-over-counter. The year-over-year decrease was mainly driven by a lower average selling price due to different product mix. The sequential decrease was mainly attributable to reduced vehicle delivery due to seasonal factors related to the Chinese New Year holidays and lower average selling price due to different product mix. Cost of sales in the first quarter was $21.2 billion at 2.7% year-over-year and down 10.4% quarter-over-quarter. Gross profit in the first quarter was $1.8 billion, down 66% year-over-year and 64.8% quarter-over-quarter. Vehicle margin in the first quarter was 6.1% versus 19.8% in the same period last year, and 16.8% in the prior quarter. The year-over-year and the sequential decrease was mainly due to the different product mix. Gross margin in the first quarter was 7.9% versus 20.5% in the same period last year, and 17.8% in the prior quarter. Operating expenses in the first quarter were 4.8 billion, down 4.8% year-over-year, and 13.8% quarter over quarter. R&B expenses in the first quarter were R&B 2.7 billion, up 8.3% year-over-year, and down 9.8% quarter-over-quarter. FC&A expenses in the first quarter were 2 billion, down 19% year-over-year, and 22.6% The year-over-year and sequential decrease was mainly due to the decreased employee compensation and reduced expenses related to marketing and promotion activities. Loss from operations in the first quarter was R&D 3G versus $271.7 million income from operations in the same period last year, and the 442.6 million loss from operations in the prior quarter. Operating margin in the first quarter was negative 13% versus 1% in the same period last year, and negative 1.5% in the prior quarter. Net loss in the first quarter was R&B 2.3 billion versus $646.6 million net income in the same period last year and $20.2 million net income in the prior quarter. Diluted net loss per ADF attributable to all the shareholder was 2.26 in the first quarter versus diluted net earnings of 0.62 in the same period last year and 1 cent in the prior Turning to our cash flow and balance sheet, net cash used in operating activities in the first quarter was R&B 6.1 billion, was it 1.7 billion used in the same period last year and 3.5 billion provided in the prior quarter. Free cash flow was negative $7.4 billion in the first quarter versus negative $2.5 billion in the same period last year and $2.5 billion in the prior quarter. Our cash position remains solid with a quarter-end balance of negative $4.3 billion. With this strong tax position, we continue to return to shareholders through a U.S. dollar 1 billion share repurchase program announced in March. To date, we have repurchased a total of 17.5 million Class A ordinary shares, including 7.3 million ADS. For total consideration of U.S. order, 148.1 million. And now for our business outlook, for the second quarter of 2026, the company has the delivery to be between 95,000 and 100,000 vehicles, and quarterly total revenues to be between 24.1 billion and 25.4 billion. This business outlook reflects the company's current and preliminary review on this business situation and market condition, which is subject to change. That concludes our prepared remarks. I will now turn the call over to the operator and start our Q&A session. Thank you.

Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask your question. For the benefit of all participants on today's call, please limit yourself to two questions. And if you have additional questions, you can re-enter the queue. If you are a Mandarin speaker, please ask your questions in Chinese first, then follow with English translation. Your first question comes from Tim Sao with Morgan Stanley.

And the VIVIS version of the VIVIS version is now about 19 to 11. I want to ask the question about the company's performance currently. The other thing is the L9's performance of the VIVIS version of the VIVIS version of the VIVIS version. So my first question is about the L9. So how's the older inflow for the Lee Auto L9 currently? And the waiting period for the VIVIS variant have stretched to 9 to 11 weeks. So could you share the company's production capacity arrangement for this model, and what is the targeted sales mix of the L9 in your second quarter delivery guidance? That's my first question.

This is the best product of the customer who wants to know the car's quality of the technology, and wants to buy the high-end equipment. The design of the original product is the best product in the 50,000,000,000,000,000. This is the best product to the top of the product. We also want to strengthen the product of the product of the product. And further, the design of the product is a new product. 关于产能的话,全新L9是位于长州生产基地,可以和我们全新的L8贡献柔性生产,长期的生产保障能力稳定。 5月份和6月份是处于爬破期 每个月的产能大概是在4000到5000台 目前里维斯版本的双色车身和专属的创新零部件供应拼紧 目前我们已经联动核心供应商完成保供的方案 阿硕版本产能储备是充足的 可以根据市场的订单灵活调整排产 关于Q2全新L9的交付量,受上市初期产能爬坡的影响,预计交付的话,8000台左右。 那Q3产能全面爬坡完成之后,我们有信心,全新L9的稳派月销将稳步超越老款L9的月均水平。 谢谢。 First of all, the order pattern for the L9 is very clear.

The top-selling Liviv version accounts for over 90% of all orders, and the already fully loaded Ultra version accounts for the other less than 10%, which reflects the customer recognition of our latest advanced technology and the willingness to pay for features and performance, and which also showcased our steady foothold in the market above R&B 500,000, which is a very positive trend for the brand. Later down the road, we're going to strengthen the performance, promotion efforts on the ultra version and continue to optimize the order mix. Secondly, on production capacity, the all-new L9 and L8 will both be manufactured in our Changgyu base, and the two cars can be adjusted flexibly between the production lines. So in the long term, we're confident of the ability to manufacture these two models. May and June will be the ramp-up period for these two cars, and the monthly production capacity will fall between 4,000 and 5,000 units per month. At the moment, the two-tone body color of Levis and also some of the unique parts on this model are supply constraints, slightly supply constraints. We're now working around the clock with core suppliers to come up with solutions to make sure that we can deliver these cars to our customers as soon as possible. In the meantime, we have ample production capacity for the ultra version, and we'll be able to adjust our production based on market demand. And finally, on L9 deliveries in Q2, considering the production ramp up, we expect to deliver around 8,000 units between the middle of May and the end of June. After we fully ramp up in Q3, we're confident that the all-new generation L9 will reach a delivery level over the previous generation L9. Thank you.

My second question is about the profitability. What's your profitability, Alec, for the second quarter? And from a full-year perspective, when do we expect to see a clear inflection point for earnings? And given the rising low-material cost, is a return to profitability achievable this year? And separately, the auto I-6 now accounts for nearly 60% of the total equal sales. What is the floor level of the overall gross profit margin? And lastly, could you also share the gross margin target for the L9? And are there upcoming models scheduled to launch later this year? That's my follow-up question.

Hi, Tim. This is John. I will take this question. Our first project of cross-learning was impacted by several factors, including the model refresh cycle. We need to refresh our L series starting from the 9. And also a higher mix of I-6 and also L-6 deliveries among the total, and also purchasing tax subsidies to the I-6. However, with the launch and the delivery for the all new L-9, we expect our gross margin to recover about 10% in the second quarter. Looking at the full year, as we complete our model refresh cycle and optimize our production lineup, we expect a continued improvement in our growth margin. This year, our first priority is to successfully complete the refresh for the lead L series. We are pleased to see that the Li-Io-9 leverage, showing case our flagship paper basis and technology leadership, is gaining strong market recognition and was gaining market share about half million price range. The success of all of these Li-I09 leads in establishing a solid foot post in this press segment marks the step forward, building upon the success of the original Li-I09. This year's all-new VL series, as well as our DEV portfolio, including the I-9 to be launched with a feature, extensive in-house developed technology and laid a solid foundation for us over the next two years. Thank you. Thank you.

Your next question comes from Wen Zuzgao with Citex. 以及公司的这个智能驾驶下一步的发展方向是什么这是我的第一个问题谢谢 let me ask in english what are the real-on vehicle performance user feedback intelligent differentiation highlights and actual cost reduction achieved by an 100 trade-man mark vla large model and what is the next development direction of the company's auto driving system Thank you.

This is Yen. Let me answer your question. Compared to our ADAS 8.0 version, this 9.0 version powered by our in-house MAHE M100 chip shows significantly improvement. It mainly shows up in how car makes decisions in complex scenarios with more human-like control, both longitudinally and laterally, and smoother, more comfortable driving and writing experience overall. 9.0 is our first AD version running on our in-house chip which is already one of the best in the highly competitive market but it's really just the beginning. With the new platform the sensor will collect data at higher precision and higher frame rates which while the powerful compute of M100 allows us to run larger and better algorithms So this new platform let us improve data, compute, and algorithms all at the same time. And that's what will drive much faster leap in our autonomous driving capabilities. For the next step of autonomous driving, first we will further scale up our input data and precision models, enabling more driving-related semantic information to be fed into the neural network. This allows the model to see significantly more signals right from the sensors. Second, we will improve the model's cognitive capabilities, especially its ability to learn short-term cause and effect relationships. This empowers the model to go beyond the simple behavior fitting, allowing it to make human-like judgments in more complex urban traffic scenarios. Finally, we will make the system much better at the execution stage with more compute latency optimizations from our in-house operating system and a fully drive-by-wire chassis, and the car will control motion more precisely and respond faster this me that means the autonomous driving system will feel feel more confident and more importantly safer also because we design a software and a hardware together our in-house M 100 chip delivers triple the computing powers of the previous generation platform at half the cost. Our similar cost brings six times higher effective computing power. Under the same model, our input frame rate has tripled with an even greater increase in inference frame rate. Our goal is to match the performance of Tesla's FSD-V14 in the United States in the second half of this year. The higher-performance AI inference systems built around M100 chip gave us a strong foundation to make this happen. Thank you.

Let me ask in English. Since the implementation of the store partner program, what specific changes have been observed in key metrics such as sales per unit area, average monthly sales per story, output employees, and expense ratio in pilot stores are compared to before the reform? Has the program's current impact on sales volume met expectations? And how does the company positively evaluate the program's effect on boosting sales in Q3 and beyond. Thank you.

Thank you for joining us. 核心竞争力 从阶段向的 经常现状来看的话 那一季度是属于汽车行业 传统业务的淡季 并且合伙人计划 仍然是处于初期的落地阶段 从全国 平均来看的话 门店月度的订单目标 均实现了超额完成 并且也顺利完成了 楼款L系列的 轻浮节奏 也提升了 用户服务的满意度 后续的话随着店长经营管理经验的持续积累 然后叠加公司的赋能培训的话体系 全国门店经济化运营的能力将持续的话提升 谢谢 Since we started to roll out the store partner program as we grant the store managers with genuine decision-making authority and profit sharing rights

It has really fully unlocked the potential of a frontline sales team First of all, on the store manager level, we can see a fundamental shift in mindset. They've transitioned from previously store executors to actual business operators. They're able to independently view the ROIs of the different business activities and really focus on the operating efficiency. In the meantime, it has also increased the stability of core management teams and long-term commitment. The store management programs have led the store owner to invest in the store long-term. They've shifted their focus from chasing short-term sales targets to cultivating the local user base, spreading word of mouth, and building the competitiveness of their stores in the long-term. From a timing standpoint, Q1 is a typical low season in car sales, and we're in the early stage of rolling out the store manager program. On average, our stores have all beaten their monthly sales targets. We have also successfully cleared the inventory for the previous generation L series and also significantly increased user satisfaction. Going forward, as our store managers accumulate more operational experience And combined with our training systems and support systems, we believe that the operational efficiency and capability of consumers will continue to increase. Thank you.

Your next question comes from Tina Ha with Goldman Sachs.

My first question is regarding the upcoming Liato L8 phase flip. So wondering if there is any information that management can share at this point?

L9 is the main target of the 6-ondition, the L8 is the main target of the 5-ondition. The car will be a high-level model, to continue to follow the brand-based market market-based. L8 is the main target of the new car of the 7-ondition, and the plan is the 6-ondition. 正式发布并启动交付 相较于老款车型 新车的车身尺寸和轴距均有所加长 车内升级为五座的布局 后排乘坐空间得到大幅的优化 整体乘坐体验全面提升 那在动力部分的话 新车会搭载我们自研的1.5T征程系统 同时配备712.7度 5C 大容量的电池 电池容量和全新的L9保持一致 并且很多技术都是共享同一技术平台 在能耗和续航表现上十分出色 那另外的话 车辆还提供了松热车身 电动踏板等丰富的个性化选装方案 那更多的信息呢 请大家关注我们6月份的发布会 谢谢 电池容量和全新的L9保持一致 并且很多技术都是共享同一技术平台 在能耗和续航表现上十分出色 那另外的话车辆还提供了松车车身 电动踏板等丰富的个性化选装方案 那更多的信息呢 请大家关注我们6月份的发布会 谢谢 As we start to complete our L-Series product lineup, it is becoming clear that L-9 will be a flagship six-seater and the new L-8 will be a flagship five-seater.

The two cars will complement each other and continue to strengthen our foothold in the high-end flagship market. The L-8 has already been registered with the MIIT in April of 2026, and we're planning to launch a deliberate in June of 2026. Compared to the previous generation, the new car is larger in overall dimensions as well as wheelbase. The car will feature a 5-seat configuration with the rare passenger space significantly improved and overall riding experience also much improved. On the powertrain front, the car will also feature our in-house developed 1.5-liter turbocharged range extender system with a 72.7-kilowatt-hour 5C large-capacity battery, which is exactly the same as the one seen on the L9. The two cars will share the same technological platform and have great energy consumption and range performance. Apart from that, the L8 will also be featured in a two-tone body color as an option and also an electric running board as another option. For more information, please stay tuned for our launch event in June.

So my second question is regarding AI. So wondering how does management view the current competition and investment in the AI industry? Also, what is management's thought on the competition in the industry?

然后大家都在使用英伟达的芯片的时候 我们虽然做了很多的创新 但是别人可以通过挖走我们的人 就可以做到和我们相似的水平 随着我们自研钻力更强芯片 以及采用完全不同的 模型的付属的方式和模型的规模 通过软硬化一体的垂直整合 然后这让挖人的清 biz方式就彻底失效 后续我们还会把系统化的能力变成核心壁垒

In our view, the competition in the mid-to-high-end start vehicle segment over the next three to five years will really be a competition of embody AI the highest technical barrier and the core determinant of a company's long-term success and competitiveness will be a deeply integrated chip and large foundational model take our real-world experience with in-house developed chips as an example as in the past Technology and information really flowed freely in the industry because everybody used NVIDIA chips and others could easily approach our teams, our former employees, and reach a very close level of performance despite our many innovations. However, with our in-house developed chips and much greater scale, much more computing power, much greater scale for models, we use a completely different architecture and making this traditional poaching approach ineffective because we're fully integrated vertically between hardware and software. So going forward, we will turn our systematic capabilities into our core mode. Our capabilities and outputs will no longer be easily replicated by others. Another critical factor is time. It took us four years to bring our in-house chips from starting the program to vehicle production. In the next decade, while maintaining our technological innovation edge, we'll also ensure the technological barriers that are sufficiently advanced and provide a long enough time horizon as a competitive advantage.

Your next question comes from Jing Cheng with CICC.

We're going to talk about some of the videos, and we'll talk about some of the technologies, and some of the things we have about the technology, and some of the technologies. So my first question is also about the intelligence, as I just mentioned by Ms. Leishang, we will hold a more detailed intelligence technology launch event in June. So I'd like to ask about do we have any updates on our current strategy and also planning regarding to the human robotics?

Hi, I'm Lisa. I think from the perspective of the world, we can clearly see whether it's our factory, or our customers, we need to be human-like machine. From the market level, we think that the company's company 像我们这样的初步牵引收入的中厂 还有那些各纳归部的大厂 其实都会进入到机器人的赛道中来 所以机器人既不独属于我们 也不独属于创业公司 机器人是标准的劳动力 是任何一个希望在该领域有所作为的公司 都会去做的产品 并不专属于任何一类型的公司 然后只要公司的业务需要人 一定会制造机器人 只不过到底是用外购的方式 还是用自制的方式 这是唯一的区别 另外最后我们看的就是说 人形机器人形成规模化的 非常成规模的商业化和工业化 举个例子比较像2010年到2015年的 电动车领域 我就要想达到这个程度 基本上至少还需要三年以上的时间 甚至更久 In the long run, we can clearly see whether it's our factories, our stores, and our users will all need humanoid robots.

And we believe that robots should not be limited to startups or medium-sized companies or large companies it should not be limited to us robots will be a standardized labor and it's something that any company was willing to make a difference in their field should adopt and it's not limited to any specific type of companies as long as a company needs human beings it will use robots it's only a difference between whether they purchase the roll up from somebody else or they've developed it in-house that would be the only difference so from a lot of time standpoint my belief is that for humanoid robots to reach full-scale development development deployment and commercialization to a point just like where we got to with electric vehicles between 2010 and 2015 to get to that point it takes will will still take more than three years, because in every specific area, the technological path has not converged, and there are many problems that remain to be solved.

So in between this period, we still need to work on solving many hard problems. 好的,第二个问题是关于这个海外市场,能否请再更新一下我们最新的这个海外的战略? 当然,对于可能中高端品牌去突破海外市场,是会面临更大的一个挑战。 So my second question is about the overseas market. So could you share more updates on our latest overseas strategy, including our plans for 2026 and also the following years, our pace and also the contribution of international expansion, such as the overseas market self-volume target, a key region, and also our product type lines in overseas market.

Thank you so much for joining us. We have received a lot of international media and users' attention. We are also簽約 with the United States and the United States and the United States. For the United States and the United States and the United States, we will use the L-Series, the new L-Series, the first one in the international world, the new L-9. It will be combined with the use of the environment, the power of the充電, We will also be able to build a new car in the future. We will be able to make the right-hand side of the market in China, Hong Kong, and the Western countries in China. We will be able to make the right-hand side of the market. We will continue to improve the right-hand side of the market. After all of the new cars are in the development phase, we will be able to make the right-hand side of the international law. We will be able to support the international strategy. Thank you.

We're steadfastly advancing our internationalization strategy and taking a phased approach to this. Based on the local market size, industry landscape, and competitiveness, we will have a choice between a model including establishing local subsidiaries, working with local dealerships, or using a local sole distributor. In any case, we want to work with leading companies or partners locally and quickly build an integrated service system encompassing sales delivery and after sales our product and brands have continued to be recognized globally in April in the Beijing Auto Show in April we have received a lot of attention from overseas media and users and partners we have also officially signed contracts with Saudi Arabia and UAE distributors in the Middle East and Middle Asia market Central Asia market we will be taking our L series of the range extender product line as the main products offer there the first product will be a oversee dedicated all new lead online which is optimized based on local conditions in charging capability UI and software ecosystem thermal management including serious hardware and software optimizations we will also be entering the middle will be entering the Middle East and Central Asia market in Q3 also starting in May we will be graduating gradually entering markets like Macau, China, Cambodia, Laos, and Myanmar to further cultivate our Southeast Asia market. In the second half of this year, we will introduce the all-electric Li-6 in Europe. And additionally, for right-hand drive markets, we will launch the right-hand drive version of our Li-Mega in key Asia-Pacific markets, including Hong Kong, China, and Singapore or by the end of this year. Regarding products, we're implementing a precise regional customization approach. All of our upcoming models will incorporate compliance with overseas regulations right from the early stage of R&D to better support our ongoing global strategy.

As we are reaching the end of our conference call now, I'd like to turn the call back over to the company for closing remarks. Ms. Janet Tseng, please go ahead.

Thank you once again for joining us today. If you have further questions, please feel free to contact Liado's investor relations team through the contact information provided on our IR website. This concludes this conference call. You may now disconnect your line. Thank you.