Q1: What is the current production capacity? Affected by the shortage of semiconductors, when can it return to the normal level?

Kevin Shen (President): The impact of the current semiconductor shortage is industry-wide. Li Auto’s Changzhou factory is now working 2 shifts, reaching a daily production capacity of 500+. With the production of the new Li ONE and the influence of chip shortage, the production capacity has not reached the ideal level. The monthly production capacity is expected to reach 10,000+ in September this year.

Q2: What is the difference between the old and new Li ONE in terms of gross profit?

In the long run, the gross profit margin of the new model will be the same as the current Li ONE. In Q2, there will be promotion in April and May for the current Li ONE, and the new model, which is RMB 10,000 more expensive than the current one, will also be on sale.

Q3: Regarding the number of retail stores: 52 stores at the end of last year and 73 stores in April this year. Can the 200 target be achieved this year?

In 2021Q1, due to the impact of the Spring Festival holiday and COVID-19 cases in the north China, the pace of construction was slowed down. But at present, Li Auto has 50 retail stores under construction. The goal of 200 retail stores this year remains unchanged. We’ll catch up in the second half of the year.

Q4: Regarding pricing: Li ONE’s strategy is different from that of its competitors, does it mean that Li Auto aims to the high-end in the future?

We believe that the price is based on the product value in the eyes of users. An increase of RMB 10,000 is fair enough, and the new Li ONE is more competitive.

Q5: Why chose Horizon as your chip supplier?

Kai Wang (CTO): In terms of supplier selection, there are 5 critiria: first, the overall performance of the product, Horizon’s Journey 3 is a suitable one. Second, the openness and flexibility of the product, for example Mobileye is not flexible enough; third, support from the supplier, for example, Horizon has an office in Beijing, which offers timely support; fourth, appropriate SOP; fifth, price, whether it is cost-effective.

Q6: Any new function of Li Auto’s ADAS in the next two to three years?

Kai Wang (CTO): As for the roadmap of NOA, in Q4 this year, the coverage of HD map will be further expanded. Next year, the processing capacity will be strengthened. We aim to reach L4 step by step.

Q7: NOA comes as standard and is free of charge, but is the increase of RMB 10,000 for the new model equal to NOA’s R&D expenses?

RMB 10,000 is not specifically for any new features, but is considered as a whole. Just like LI Xiang said that NOA comes as standard, and is free of charge.

Q8: What is the role of Hongjing Drive in R&D? Does it mean that Li Auto’s ADAS is full-stack self-developed, but Hongjing participated in the process as well?

Kai Wang (CTO): Hongjing Drive is a Tier 1 hardware provider of Li Auto. At present, there are 300 people in the ADAS team of Li Auto, responsible for software and hardware R&D. For the hardware part, Hongjing Drive participated in the design and collaboration to make the entire process more efficient.

Q9: Mobileye EyeQ4, Horizon Journey 3, NVIDIA Orin, can different systems be used seamlessly?

Kai Wang (CTO): Li Auto insists on full-stack self-development to ensure that the same effect can be achieved on different platforms.

Q10: There were many electric models exhibited in this year’s Auto Shanghai. Does this have any impact on the development plan of Li Auto’s high-voltage pure electric platforms, Whale and Shark, in 2023?

Kevin Shen (President): Li Auto would like to reiterate that the charging solution is the key to BEV. Li Auto will develop Whale and Shark platforms and the charging solution according to the original plan, it will not change. Of course, if there are more resources, the R&D progress will be accelerated. Right now we’ll stick to the original plan.

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