Geely Automobile Holdings Limited Stock

[Audio Gap] there is a -- well, the auto industry in China in the first half of 2026 is highly competitive. Many automakers are running at a loss. The average profitability for auto industry in the first half of 2026 has reached 1.6%. And it is in this context that we achieved close to CNY 10 billion revenues attributable to shareholders.

So our profitability, our profit margin rate is about 5.6%, way above the industry average. So I would say that this is a wonderful business performance for Geely during the first half of 2026. My third observation is that -- this financial statement is not that surprising. For the first half of this year, the auto industry in China has faced the most challenging scenarios never met before in the past 20 years. The total sales units witnessed a double-digit decline in the first half of 2026 in the Chinese market. And we've seen a rapid increase in the price of chips and other raw materials. So the competition is quite throw cutting in the auto industry.

Despite the fact that Geely Auto has enjoyed historic records in terms of sales revenue and business margin, our growth trajectory has inevitably been impacted by this negative trend in the auto industry in China. So I would say this is a wonderful financial statement, but this is not that surprising. This is my third observation. My fourth viewpoint is the one that I would like to share with you the most. And this financial statement is a sustainable one into the future. And I believe that you're very much interested in my fourth point. systematic capabilities, strategic resilience as well as the pursuit of long-term value creation capabilities are the 3 key pillars to support my fourth point of view. The competition in the modern auto industry goes beyond product itself.

Well, it's the competition of different systems, strategic resilience and long-term value creation capabilities. I can very confidently tell you that after years of development within Geely, we've established the above-mentioned capabilities and abilities. I'd like to slightly elaborate on these 3 areas. First of all, talking about the systematic capability. In March this year, when we released the whole year business performance of 2025, I talked about the all domain AI safety benchmark, business integration, the diversification of powertrain and energy. and other relevant and important topics during that event. That is exactly these elements that constitute the systematic capabilities of Geely Auto.

So it's fair to say that the achievements we've made during the first half of 2026 is not dependent on the result of a specific product or a specific segment or the result of a specific period of time. This is the financial achievements we've made on the basis of the full systematic capabilities. Thanks to that systematic capabilities, we'll be able to perform even better with greater confidence in face of the challenges in the future. I'll give you 2 examples to sustain that systematic capabilities.

In the first half of 2026, if you take a look at our product portfolio, the greatest highlight is the transition toward intelligence. So during the transition toward new energy toward intelligence, in 2025, we've already build some sort of confidence in our new energy powertrain. And in 2025, you still might have some doubt over our intelligence capabilities. Before this event, we've organized some programs and activities. And I believe that many of you have participated into our programs and activities before this press conference. So these events and programs exposed you to our true intelligence capabilities within the Geely system.

I believe that through these programs and activities and events, you might now have a very deep understanding of the level of intelligence we'll be able to achieve within Geely Auto. And I believe that in -- in the domain of intelligence, Geely Auto is a leading auto company in China. As time goes by, we'll be certainly in the leadership position within the Chinese auto industry. Well, talking about our systematic capability.

On one hand, Well, it helps to create the products that is needed within China. One figure is on the financial statement is that according to the Chinese Automobile Industry Association during the first half of this year, GE ranked #1 in China in terms of terminal sales, thanks to our systematic capability, we've been able to achieve what we have achieved. More importantly, well, this systematic capability would support or facilitate Geely's international expansion. So you're quite interested in our export business.

As a financial statement shows that during the first half of 2026, Geely has done a tremendous job in terms of its expectation. Mr. Gan, as far as my understanding is concerned, we've already hit the annual target we set for ourselves at the beginning of this year by now. This is a wonderful result we've achieved. And I just want to tell you that this is the beginning of our world expansion. Why did I say that? Because we're still exporting a limited number of product models within a very narrow price bracket. So we're going to export more models on a higher -- on a wider range of price bracket. So in the future, we're going to export our premium products into the international market.

There are a lot of videos on the Internet, one of which features a fanatic fan of Geely transported 4 Geely ZEEKR models from China to the Middle East. There is a growing demand for the premium brands from Geely in the Middle East as well as in the European market. The new energy vehicle in China has won global recognition. But most of this recognition falls on the low-end category. I would say that ZEEKR, the ZEEKR brand from Geely would uplift the global recognition of the new energy vehicle in China. meaning that the Chinese automakers are capable of manufacturing premium high-end luxury new energy vehicles.

We just released some numbers with regard to the IF products. I have product is probably the segment that accounts for the largest market share in the world. And Geely's product, Geely's I have product is capable of competing in the international market. I think I'll give you these examples. Just to tell you that we've already established the kind of systematic capability within the company or the company group, which allows us to make progress in the domestic market and enable us to further expand into the international market.

Secondly, I'm going to talk about strategic resilience. Scale, profitability, growth and sustainabilities, these are the most important points we focus on. We focus on the long term instead of the short-term profitability. So that means we need to have the kind of strategic resilience even in difficult times.

We need to maintain high growth rate. That's true. And at the same time, we still need to maintain the operational stability within the company. Both are important. I would also like to give you an example to substantiate that point. We have a consensus over the development of the Chinese auto industry that international market is probably will contribute the greatest growth engine for the Chinese auto industry. But we're facing a highly unstable geopolitical situation.

We need to expand into the international market, while we need to reduce the exposure of massive investment into the international markets. I think this is a common issue facing all the Chinese automakers. So on that front, it is a natural extension of what I've described as the strategic solidity of Geely Auto Group. We have also devised a strategy to collaborate even further with our global peers and counterparts.

By doing so, we can be committed to our long-term development, not only in the overseas, but also help us to withstand the possible tests and the challenges from the overseas market. It is also a key reflection of Geely's responsibility for the automotive market in general. By working together to co-use or to co-share this platform, we can seek a win-win situation for all partners. So this is what I call how we can stick firmly to our original strategy, and that is also paving the way for our global pathway.

The reason why we will embrace such a practice is largely because we -- Geely Auto over the past 2 decades, have been doing all the time by integrating or acquiring Volvo and working together with Renault and many other brands, we have garnered respect and trust from our global partners. The historical trust placed upon shoulders by our counterparts will help us to achieve a much better result in the days to come. While I was talking about the value creation and strategic solidity, I also talked a lot about the export. So we have 3 main advantages on export front.

I want to give you a quick summary of the strength. First of all, premium branding. Secondly, diversification of our vehicle types. Thirdly, the historical trust from our colleagues and from our peers upon Geely Auto Group. This will help us to win even more trust and to ensure that we can achieve a much bigger success in the days to come, especially in the overseas market. The third aspect I'm talking about is the long-term value creation. The systemic capability, strategic solidity power in addition to the correct or the precise judgment combined to form the very foundation for value creation in the long term.

I've already explained to you a lot, especially related to the first 2 fronts. But talking about the third one, Geely is among the earliest players to raise that we need to embrace all domain AI for the auto industry. For example, the [ Xinrii ] Smart center was introduced. It is the first step for us to enter into a huge domain of AI. So looking ahead, full domain AI plus smart mobility will become the future trend. This is something that we have a very clear understanding about. And it is also something that we have already been coupling with a fully fledged system.

You can also see that Geely currently has formed a fully fledged system that can adapt further to those 2 major trends. For example, for Eaton, for the [ GASD,ao ] Mobility and many others. The existence of those systems will help us to win more space for our future. This can also ensure that we can provide a solid guarantee for the creation of long-term benefit and value for Geely Auto. So these are the 3 aspects to illustrate that we are fully capable on those fronts before we can tell you for sure that our financial statements will continue to make you feel quite happy about. So I want to be bold enough to tell you that in the foreseeable future, you will see a much stronger Geely. So much for my observation and my summary of 2026 H1 report. Thank you.

Well, today's press conference also comes with another very key aspect. So have you ever noticed that about half an hour ago, our company has made the latest announcement. Probably you have already taken notice of this important message. Probably you want to know more about this information. So before my explanation of this announcement, so next, please take a look at a video clip recorded by Mr. Chairman [ Xu ] for about 15 minutes.

Okay. Shall we now move our chairs a little bit to facilitate the watching process.

[Presentation]

Now you've watched the video is entrusted by the Board of Directors. I would like to give you a brief explanations on this change of leadership. This is a significant change in the leadership for Geely Auto. It is by no means a simple shift of the leadership. It is a strategic evolution of the entire institution of Geely Auto. After reform and open up policies with nearly 5 decades of development, most of the private companies in China are facing the installation of a second generation of leadership.

Eric Li resigned the position of the Chairman of Geely Auto and Mr. An Conghui served as the new Chairman of the Board of Directors of Geely Auto. This shift of leadership is a declaration to get rid of the sense of the family-run business to a company that is broadly managed by team, by institutions and by systems. the company or the company group will no longer rely upon personal charisma empower.

Instead, its operation will rely on institutions and systems, which means the governance of Geely Auto will be even more transparent in the future. Its decision-making process will be more professional as management will be more science-based. And at the same time, as to the internal talent, we break -- well, this is a strong signal that the professional ceiling has been broken. It will definitely instill the passion into each and every employees within the company group. who will, in turn, generate greater value for the shareholders and the society as a whole.

So I think this is the strong significance of this change of leadership. Mr. An Conghui will become the Chairman of the Board of Gee Automobile Holdings Limited. He's currently the CEO of [ Zhjian Geely ] Holding Group. And 175 is probably the only listed company within the Geely Group that it will serve as the Chairman of, which means we will continue to implement this tit declaration and we'll continue to follow the One Geely strategy, and we will consolidate all the quality resources within Geely to make sure that they will be channeled into our listed platforms to make sure that our listed companies will be bigger and stronger and generate the greatest value for our shareholders.

Chairman Li highly recognized the professional capabilities of Mr. An Conghui. He has years and years of experience in the auto industry, and he has a depth of understanding of automotive products. And all this will enable him to develop the Geely Auto Holdings Limited to a new height. So this is a great move in corporate nerrigance, and it has forging significance. The other thing is that I myself will resign the CEO of Geely Auto and Mr. Gan will be my successor.

There is also the shift of leadership and management of Geely Auto. It is required by the era. It is required to maintain the vitality of the company, and that is required -- well, the shift of leadership is required in order to turn this listed company into a bigger and stronger one. We need young bodies, younger minds and future proof wisdoms, especially in the time of Internet and artificial intelligence. Mr. Gan and his peers will have a stronger understanding of the calls of the time than my generation. His generation will have a better insight into the calls of the time and we will have a better execution capability.

And this shift of leadership we'll be able to make improvement into the multi-tiered talent development systems within Geely. It is the way to keep the competitiveness of the company. And this is what I'm going to tell you that Mr. Gan is going to be the CEO of GE Automobile Holdings Limited. So it also has a far-reaching significance. Also, I would like to tell you that on our announcement, Mr. Li Dong Hui also resigned his current position. In the past couple of years.

Mr. Li Dong Hui has also made its outstanding contributions to our auto group. Now currently, Mr. Li is serving as the Vice Chairman of Geely Holdings Group. So he's currently undertaking many other jobs, especially in the international market. So he has now -- he is still the Executive Board Director of 0175. So he will continue to be deeply involved into the operations and the management of 0175.

Last but not least, I want to say a big thank you to all our friends. for your great support to me as the CEO of 0175, A big thank you to you. I'm no longer the CEO of 0175, but I will continue to serve as the Executive Director and Vice Chairman of the Board of Directors of 0175 to be relevantly contributable to this group.

So Mr. An and Mr. Gan actually are based in Hangzhou and myself is based in Hong Kong. Looking ahead, I will work together with Mr. An and Mr. Gan to better manage the affairs in the Hong Kong market, especially in the capital market. So much for my explanation and announcement and explanation of some of the changes of the main leadership of our group. I hope our future will be brighter.

Now let's invite Mr. An Song Hui to make a speech.

Thank you, Mr. Gui. Dear friends from the investment community, dear friends from the media, dear colleagues, good afternoon to you all. First of all, I want to thank Mr. Chairman, [indiscernible] for the great trust on myself and on the Board so that I now will pick up as the Chairman of Geely Automobile Holdings Limited.

Looking ahead, together with Mr. Gan and Mr. Gui, we will continue to internalize responsibility, trust and care into the real spirit of our group. and translate them into real actions. Just now, I hope that you have already seen from the video message that Geely has now reached a new level of growth. And One Geely strategy is playing its pivotal role.

Now due to the time limit, I want to walk you through some of the main thinkings behind this One Geely strategy. First of all, just as what Mr. Gui has mentioned, we need to deepen the implementation of the title declaration and make the One Geely stronger, more substantial and more impactful. This is something that we will not compromise.

Over the past 2 years, guided by the title declaration, we have continued to consolidate and sharpen our focus on our core businesses with significant progress. Especially for the first half of this year, you can see it very clearly from the H1 financial statements.

In the next phase, we will double down on the One Geely strategy, further optimize our business portfolio and resources allocation, enhance system-wide synergies, reduce unnecessary internal friction and duplicate spendings and bring more strategically valuable businesses, those that have already reached its industrial scale maturity into the listed entity. We're also going to suspend the operation of those non-value-added businesses and units of the whole system.

And also, we are going to integrate some of the useful business units into the group. I mean, 0175. We want to be bigger, stronger and more impactful in the future. This will be clearly reflected over the next step. I want to give you some examples. For example, our golden brick battery business. Actually, over the past 10 or more years, now we have reached about 7G to 80G production capacity. Next year, we are going to reach about 200G. By 2028, that's about 300G GWH.

In batteries, there will be new breakthroughs, major breakthroughs along the lines, be it reserve batteries, fuel cells, power cells and also there will be sodium and other types of batteries, solid-state battery, sodium-ion batteries and large capacity energy storage systems will all be the reality in the future. There will be breakthroughs to be sure enough. And also the electric drive system, now we have reached a new scale of production capacity by leading the world by claiming the best ever technologies in the world.

Next step, it will be empowering our group even further. For example, Hangzhou, which you have never heard about. This is based upon what we have done over the past 10 years. Based upon the electric and electronic core spare parts and component R&D capability, we are building a strong base in Hangzhou of NEV. In smart driving and intelligent driving, there will be some core technology production lines that have been -- that have been reserved for our future growth. by domain control, regional control, we are complete with all relevant technologies needed for those purposes. So these are some n examples to illustrate this point.

Not to mention we have many others at the same time. So long as those practices are useful or helpful for us to fulfill those strategies, we will spare no efforts by combining all our strength to ensure to become a new reality. Second, there will be more systematically oriented distribution by focusing more on the overseas market, we will turn the overseas markets into a major growth driver for Geely, as Mr. Hui has mentioned already in his speech.

For H1 this year, our export -- our sales in the overseas market has reached its new highs. It has also increased by about 158% compared with the same period of last year. You can also see that we are actually aiming at selling about 1 million units per year to the overseas markets. Our long-term goal is to ensure that about 2/3 of our sales will come from the overseas market.

Alongside with steadily improving the sales volume in China -- in domestic market of China, we will further quicken our pace to expand into the overseas market. I've been working for Geely for over 3 decades. I'm a veteran employee in Geely. I still vividly remember the first day of the founding of Geely Auto that in the future, 2/3 of the markets of Geely will be overseas markets.

Now in retrospect, we can see that how correct it is for Mr. Chairman Li to raise that goal. I fully believe that in the new -- in the future, this goal will fulfill it for sure. If 2/3 of the sales will come from the overseas market, then localized production will become the reality. We have to focus on the long-term goals. So this is something that we have been working very rigorously on all fronts ever since.

Geely Holdings Group will coordinate all the resources of all brands within our group in parallel to the resources of the overseas market. I want to emphasize that Geely Holdings Group will coordinate all the internal resources within our group for all the brands in parallel to our resources of the overseas partners or the external partners to ensure that we can co-develop co-share the purchasing capacity and to co-use the HR competence and the supply chain in China.

And also, we will co-share the channels and service networks. Also, I want to give you some examples to illustrate this point. The Geely's acquisition of Volvo has ensured us quick strength positioning in technologies and products. but also it will help us to move further into the overseas markets. The overseas factory of Volvo will also undertake the mission of manufacturing high-end and premium cars of Geely brands.

So for the acquisition of Proton, this year, hopefully, this figure, our project is set to exceed about 200,000 units this year. Hopefully, we will turn this center into a major hub to produce about 500,000 units of Proton cars in the Southeast Asia market. Also, you have seen the announcement of our collaboration with Ford in Spain for the production of some Geely branded cars in Spain.

The production capacity of that Spanish factory is also about 500,000 cars units per year. Also, we have a Brazilian plant by working together with Renault is having capacity of about 300,000 units per year. And our South Korea plant as a result of the collaboration of Renault is also adding up some capacities as well. Also, there are some projects that are still going on there.

In other words, which means we didn't start our overseas strategies a year ago or 2 years ago or 3 years ago. Actually, we had overseas strategies ever since the founding of the Geely system. Well, the Ford plant will be put into operation in 2028, which will manufacture quite a number of models within the Geely system and our Volvo European plants will also be put into operation in 2028 manufacturing some premium models within the Geely system.

This localized manufacturing capacity deployment has taken its initial shape and it's going to bear fruits in the next couple of years. And thirdly, we'll stay committed to brand upgrading and turn our technological leadership into product leadership, reputation leadership and value leadership.

We need quality development of the Chinese auto brands, which means we must accelerate our market, which means we must accelerate our move upmarket and toward new energy as a result of the export of our products and technology. Geely as a technology-driven company, we've already formulated our own advantages. You might have recognized that Geely is turning itself into a tech-driven company.

So the Chinese automobiles are not only competitive in price domain, but also in branding, in technology. We committed to the long-term development. We are strongly opposed to price war and evolution. We want which works on quality, technology, brand, service and corporate integrity. These are the resonating themes throughout different kinds of conferences and events.

ZEEKR accounts for 1/3 of the segment with the average selling price above 0.5 million in China. So as a result of the international market -- international strategies for ZEEKR, I believe that in the premium segment in the global market, Geely will also aim at 1/3 of the market share. this market share will be built upon our technological capabilities. We made long-term investment into the R&D of technologies in the auto industries.

And also, we made investment in acquisition, corporate cooperation. So a lot of these investments have been turned into our competitiveness, not for the current market, but also for the future. I was frequently asked why ZEEKR was so popular in the premium market. Why ZEEKR has enjoyed a rapid rising its branding force. Why compared with its competitors, ZEEKR is taking the lead by generation. to which I replied, without the acquisition of Volvo, so without the acquisition of Lotus, we're not going to see the achievements made by ZEEKR.

Both Volvo and Lotus have been in operation for more than 100 years. They have accumulated century of experience in safety benchmarks, standards, lightweight technologies and all kinds of automobile-related technologies. NGS also made decades of investment into the automobile-related technologies.

That's why we made significant breakthroughs and improvement in terms of safety, product safety, lightweight technologies, engines, chassis. -- without Volvo, without Loters, without our own long-term investment into this domain, it will be impossible for us to reach the current status. Fourthly, we need to deepen modern corporate governance to make our organization more dynamic, efficient and sustainable.

The shift of the leadership of Auto is a planned step in Geely's journey toward modern corporate governance. Its purpose is to further enhance our competitiveness and achieve healthier, more sustainable growth. For this Board and management team, our top priority is to take the baton and pass it on well. So what will be passing on, not just the position. With the company's core values, management systems and governance framework. The company's foundation lies in its people and its core competitiveness and its talent.

Going forward, we will continue to build a professional workforce and ensure transparent and effective operation of our 3-tier governance structure, we will keep strengthening the prime vitality, upholding the principles of shared pressure, shared responsibilities, shared value creation and shared rewards. We'll give the stage to those who deliver results and ensure that every dedicated contributor grows together with the company. I believe that under the Board's guidance and management team's execution, Geely Auto will continue to deliver steady growth and create long-term value for our shareholders and users. Thank you very much.

Mr. Gan, now the floor is yours.

Dear investors, media friends, good afternoon. So first of all, I would like to thank you very much for your long-term care and support to Geely Auto. Our Chairman and President and Mr. Gui have just laid out group strategic direction for the next phase. For Geely Auto Group, our core mission is to translate corporate values into action, turn strategy into results and deliver high-value products and services to our user while giving back to our shareholders, to our customers with solid tangible operating performance.

Despite a challenging industry environment, Geely delivered a remarkably strong first half performance. Sales revenue and profit all hit a record high. Our revenue outgrew sales and our profit outgrown our revenue. So we're seeing a high-quality growth within the Geely Auto company. In the second half, under the One Geely strategic framework, we are seeing strong resource synergies across the group, demonstrating robust operational resilience and brand momentum.

We will focus on 3 key pillars. First the domestic market, overseas expansion and our AI transformation to ensure a solid start for our 2030 strategy. So first of all, in the domestic market and in the premium segment, we will drive 4 brands, namely ZEEKR Lync & Co., Geely Galaxy and China Star to move upward together leading with high-value flagship products to unlock greater growth.

And secondly, in terms of international expansion, we're going to duplicate our high-quality growth model into our international business. So in the spirit of openness and win-win, we're going to deepen our localized manufacturing strategy to improve our international competitiveness. And thirdly, in terms of AI ecosystem, we will accelerate the transition towards a leader of all domain AI mobility provider. We will continue to lead the intelligent transformation of auto industry.

Based on our accumulation of the technologies in the old domain artificial intelligence technologies, we also upgraded the traditional technologies during the first half of the year, we announced the launch of IF and digital chassis as well as 161 electric drive. And behind each and every leading technologies, we are seeing the vertical capabilities empowered by artificial intelligence.

And in terms of energy supplement and other technologies, we'll make full use of the AI technology. We're going to get rid of the safety issues in terms of charging of the batteries. And we're also trying to get rid of the problems of the battery decay.

So ladies and gentlemen, we will be committed to high-quality development. We will continue to focus on value creation for customers will be committed to the production of high-quality products, better customer experience and better business performance for our customers and shareholders and to facilitate the high-quality and sustainable development of the auto industry in China. Thank you very much.

I've just given you a brief introduction of Geely's strategies. Toward the end of this year, -- we're going to hold an event during which a more detailed explanation of our 2030 strategies will be provided. Okay. Thank you.

[Operator Instructions]

Congratulations to Mr. An, and thank Mr. Gui for your contribution. I believe that new leadership, as Mr. Gui said, will deliver a record high. My name is from East Fortune. I have 2 questions. The first one is we've seen that in terms of the export of X, ZEEKR X, we started export to Australia to Middle East to Malaysia. Pale have started of the ZEEKR 9X. I'm just curious about the feedback of this prelaunch of ZEEKR 9X.

And what is your forecast on your export volume of AXX, ZEEKR X and 9X? Of course, they also enjoy good sales in the Chinese market. So totally, if you combine the domestic market with the international market, what will be a stable sales forecast of AX and 9X? This is the first question.

Talking about globalization and premium branding. I'm going to say a few words about our international business. as this is one of the focus of our investors and media friends. Actually, the overseas market is an epitome of the Chinese auto industry. The H1 industrial average growth rate is about 72%. For H1 for Geely, we have achieved about 174,000 units, up by about 158%. NEV sales have sold about 277,000 units up by 585% year-on-year. This is an unprecedented figure. There are 3 key features about sales and the performance of Geely.

First of all, the growth speed is #1 among all the mainstream automakers in China. Secondly, NEV year-on-year growth rate is #1 in our industry. Thirdly, for premium brands in China, we are also ranking #1. So these are the 3 key features of our Geely exports this year, H1 this year. So you can see that the international business is quite balanced across all the regions and some regions have seen much more rapid growth.

For example, Latin America, up by about 298%, nearly 300%. For Europe, nearly 280% growth. In ASEAN countries, over 120% growth rate is registered. In Eastern and Central Asia, almost over 100% increase. So these are what we call regional growth across the board. Different regions may have different performance levels, just as what Mr. Dai has mentioned in his presentation, we want to ensure one special region for 300,000 units. And unit -- 2 centers for 200,000 scales and 3 centers for 100,000 unit scales.

Secondly, internationalization, as what Mr. A has mentioned, about 2/3 of the sales will come from overseas market. I joined Geely upon my graduation. I remember very clearly since day 1 of my joining of Geely, we want to see Geely costs in China and across the whole world. we want to sell our cars to the overseas markets. This is always a very important bedrock underpinning our strategy for the overseas expansion.

First of all, it is benefiting immensely from the NEV footprint expansion of China, secondly because of our strategy. So in the next 2 or 3 years, we have also devised a plan, which is a workable plan in the overseas market. We have a 1, 2, 3, 4, 5, 6 strategy for international orientation. Talking about one, one meaning one overseas system for Geely. In the -- at the back end and the middle end, there's only one system.

ZEEKR, Lync & Co and Geely are the 3 main brands. One is on the high tech. The second one is Sporty DNA. The third brand is the mainstream mass public orientation. So these are the 3 clear positioning of the brands to win our market shares. Two, 3, 4, 5, 6, meaning we want to build a center in Europe, selling about 600,000 units. 500,000 units in ASEAN countries, 400,000 units in Middle East and 300,000 in Eastern Europe, 200,000 units in Central Asia.

So this is called [indiscernible]. So if you put all these figures together, that makes the total 2 million sets. Secondly, talking about the premium branding for export purposes. This is also a very prominent feature of our sales -- of our exports. For ZEEKR, you can see that it is much more well known than ever in the past. Not long ago, the 8X and the 9X have been well certified abroad and something are still going on there. And there has been a very good positive feedback from the overseas customers.

Some have approached the operators or some of the channels to add an extra price to buy a 9X or 8x car. It is sufficient enough to tell us that we have ample market demand in those areas. Almost all the markets speak very highly of the quality of 8X or 9X cars.

For ZEEKR, our future is very clear. We want to win the future market share to define luxury and premiumness with technologies. Our growth margin is also quite fast, over 200% increase. This is also something quite phenomenal. We think that in the future, our ZEEKR products are mainly concentrated on 7X007. So these products have been well received in the market. Secondly, we are going to quicken our steps for the expansion and rolling out of [ 8X9X009. ] And we are going to do more to -- for the market expansion and the market launch since Q3 this year. For 8X, it will also start its rollout in Latin America, Europe since Q4 this year.

Of course, our 0.9 and 0.9 glory will also have its European addition for the latter half of this year. The export for H1 this year is already over 4.2 million sets -- sorry, 442,000 units.

Okay. That's all for my answer. Okay. Any questions from the media?

This question is from Mr. [indiscernible] about the ICE cars or fuel cars. We know that China Star series have seen rapid growth. So I'm asking about the future of China Star series. What's your take on the future market in China for ICE? Will that -- will there be a shift to PHEV or IHEV?

Thank you very much. Talking about the China Star cars, the future plans, you can see that for H1 2026, it tells us very clearly that the total sales volume is about 8.29 units dropping by about 24.3%, especially for ICE cars, it dropped by about over 30%, if not 31.9% drop. That means that there has been a major shift to NEV cars from ICE models. But if you take a look at the global picture, the absolute selling volume of ICE cars is still quite huge. That's about 80 million cars. In China, it's sold about 20 million cars.

In America, that sell about 15,000 to 20,000 -- 20 million cars and for the rest of the region, about 40 million cars. Currently, the penetration rate is about a little bit more than 10% in China. That means there has been huge room for ICE models in the future. But talking about the future of China Star Series in China, the H1 sales is about dropping by about 5.7% that's much slimmer than that of the drop margin of the whole industry.

Our market share increased from 8.7% last year to about 10.4% this year in China. I mean the market share of China Star series is increasing rapidly, largely because we benefit a lot from the technology road map and our product portfolio. In the future, there will be 2 directions for the growth of IC models. First of all, is more HEV.

Secondly, we are going to do more smart driving. On April 13, we have launched the latest addition of IH technology. This IHA is totally different from that of the previous generation of system. I can tell you very clearly that IHA technology through AI technology of Geely empowerment, our IHA technologies have demonstrating -- have been demonstrating much greater and better performances of all indicators much better than that of those flagship models around the world.

Why? Because this is the key feature of the new generation of IF technologies. Traditionally, we had a battery and some talk based upon the previous IC model. But now we are purely based upon the smart platform with the high capacity of the batteries up to about 60 C scale with the high-power electric drive to about 230 power.

The thermal efficiency is up to about 48.41 and energy conservation, performance, safety, reliability are all the key indicators that we see rapid growth and improvement. That's not ordinary or comprehensive growth, but leapfrogging development on all fronts, all these above-mentioned indicators. The high-performance batteries, high performance and efficiency, electric drives ensured that we can really outperform many of the car models from Japan and some other countries. This is a major breakthrough in this area. So this is point number one.

Why we can achieve such a good result? Because while we are doing some R&D, we are really changing the fundamental structure or the architecture behind the what we have seen, for example, how to feel the humidity, the temperature, the altitude of the things around the car, how to ensure that we can basically guarantee the high-efficiency operation of the electrical motors and engines.

t the same time, the high-efficiency electric drive systems can ensure that we -- there have been comprehensive improvement of all the main indicators on all fronts. This -- this 100 acceleration is about 1 second better than that of the Japanese cars. This is a really tangible breakthrough. So so much for the technology breakthrough. For product distribution, in the future, we are not going to develop a traditional IC models. I mean all the traditional IC models will have to be shifting towards IH models. I mean all the models in the future will be IH-powered. This is what I call the future direction based upon the decision made by the leadership.

Of course, for H2 this year, there will be a few IH models that will be launched to the market. For example, the all-new [ Xinyuan and Xingilus and Boy, ] these are all the models. I'm sure that with IH technologies at the backbone, there will be a bright future for the better sales volumes of China stars. And also, we're going to launch all the full spectrum of IF portfolio to the international market.

So there's a gentleman in blue.

I have a question for Mr. Hui. Chairman during his video speech that Geely will no longer build production capacity, build new production capacity and Mr. An also introduced your global deployment of manufacturing capacity. I think the sharing of production capacity is probably an important model for international expansion for Geely. So at Geely Holding level, you need to coordinate different resources, you need to make full use. What are the advantages and difficult points in coordinating all these production capacities?

I think I've already released the information to cover your question, but I'll elaborate a little bit. I would say there is a surplus of production capacity all over the world. There is a lot of saying about overcapacity in the automobile industry in China, but I would like to tell you that in North America, in Europe and in other regions of the world, there are also overcapacities.

For Geely, we want 2/3 of our sales revenue generated in the international market, which means we have to do a very good job in localized manufacturing. I just mentioned a couple of words related to localized manufacturing, high quality, high speed and low risk. And we need to make full use of our market advantages in European markets, and we need to collaborate with our partners outside the Geely system.

On one hand, we need to make very good use of production capacity. We need to make very good use of localized human resources. And at the same time, we also need to make very good use of the supply chain systems of our business partners. And furthermore, distribution channels as well as service networks. of similar nature. So that's the way we can achieve high-quality, high-speed and low-risk expansion.

Risk control is of paramount importance, of course. So spent a year or so in coordinating between Geely Holding companies and Geely Auto Mobile Holding Limited so that we can support each other and achieve a synergistic competitiveness in the market. And it's also the international market for Geely. I believe this strategy is slightly different from the international strategies of other automakers.

I'm from Guangfa Securities. My name is [indiscernible]. I have 2 questions. First of all, first question is to Mr. Dai. Can you help us to understand the reasons behind the gross margin increase. Looking ahead to Q3, given the price markup of the storage systems as well as the storage chips, would you remain the same forecast of your gross margin increase?

As to the pure electric vehicles, the question is for Mr. Gan. What is your observations on the future development of the pure electric vehicles? And what is Geely's strategies in rolling out pure electric models?

For Geely, I think your market share of pure electric vehicles is under pressure. So after April this year, the pure electric vehicle market in China is expanding steadily. So what is your future strategies for pure electric vehicles? Well, thank you, Mr. Chen, for your question. the gross margin is 17.9% during the first half of this year. It's about 1.5 percentage point increase compared to the 16.2% of gross margin during the first half of last year.

And as Mr. Gui has said that the industrial average gross margin is 1.5%, while our gross margin is 5.4%, so it was quite remarkable. As to Q2 our gross margin is 18.4%, even higher than the 17.5% of the gross margin in the first quarter of this year. Why this increase?

There are 2 drivers. First of all, the premium development of our brand. In the first quarter, the ZEEKR witnessed 77,000 units of sales. And in Q2, we sold 100,000 ZEEKR models. So that has increased about close to 30,000 units that help us to increase the gross margin because the gross margin for ZEEKR is around 20%. The second driver behind this increase of the gross margin is the global strategy.

In Q1, we export close to a little more than 200,000 units. In Q2, we realized about -- we export about 270,000 units to the international market. I think I've told you that the gross margin of exports is about 10 percentage points higher than the gross margin of our car sales in the domestic market. So these changes support our gross margin -- the overall gross margin increase in Q2.

Looking ahead into Q3, as a result of the price increase of commodities as well as the price increase in chips. Well, actually, in Q1, we faced some price pressures from the price increase of commodities. Yes, we forecast the price increase in forecast in commodities. Toward the end of 2025, we increased our storage of these commodities.

And in Q2 this year, we fixed the price as well as the quantity with our suppliers for the whole year. And we also do some -- we also did some hedgings in the futures market. So in Q3 and Q4, we've made some preparations to the price volatility of the commodity. In Q3, we're expecting an increase in the export. I believe that I think the gross margin in Q3 will not be lower than that of Q2.

As to your second question -- well, second question is related to the trajectory of pure electric vehicle. Well, in the first half of this year, the overall auto industry decreased by 30%. And even for hybrid engine, the market size decreased by 28%. But after April, we're seeing an increase in the sales of pure electric vehicles in China, which means there is still a huge demand for pure electric vehicles.

For a couple of reasons. First of all, high voltage. -- secondly, fast charging; thirdly, large battery capacity. And fourthly, high level of intelligence. So these are the 4 features in the pure electric vehicle segment. Well, it takes time to develop a new generation of models. So this year, we will gradually launch the high-voltage model of ZEEKR and Lync & Co and Galaxy TT, which will be launched soon, will be a pure electric vehicle. So the debut of Galaxy TT was held on July 21, and we received a confirmed order of 990.

And right now, the confirmed -- well, the order -- the order book has reached 22,000. So definitely, this high-voltage technology can abate the range anxiety. The Galaxy TT will be launched during the second half of this year, as I told you. And Q1 will also be launched as a high-voltage product. For Lincoln Co 20, which you saw also a pure electric vehicles will be launched pretty soon. And ZEEKR 001 and 009 glory addition will also be launched into the market as pure electric vehicles. So in the second half of this year, no matter whether it's pure electric vehicle or hyper electric hybrid vehicles, we're going to see a rollout of new models under these categories.

We're also seeing some foreign trying to raise questions.

I'm a journalist from Bloomberg. I have 2 questions. The first question is related to your cooperation with Ford in Spain. So Ford has a full lineup of new energy models. Are they going to use your technology? So can you share with us? -- is Ford going to use some of the technologies from Geely in the development of new energy vehicles? This is the first time that an American company codeveloped a model with a Chinese company, not for Chinese market, but for the international market.

The second question is payables, you just talked about the volatility in raw materials and commodities, and I noticed that in your financial report, the amount payable increased by 100% compared with the same period of last year. I just wonder what is the reason of this rapid increase in the amount payable. So can you give us a forecast on the annual increase of this amount payable?

First of all, I want to say a few words about the capacity utilization. How to make a better use of its capacity and to ensure a win-win for all partners. So for Geely, on one hand, we need to control the risk. As our investors normally will say, we have a light asset, but we have to well control the risk or bring the risk well under control. We want to ensure a win-win for all parties. You have just referred to mainly the product aspect.

For Ford collaboration, our Galaxy, our Geely architecture is the main structure. I mean this is the fundamental or underlying structure because on the basic structure, we need to develop further the products that will cater to the needs of different brands. So we have to be very clear about this point before anything else. Secondly, our products will not enter the American market. The localized production in Europe will be sold locally. So those European produced products will not be sold to the American market.

So based upon the basic architecture, we need to better make a better use of the capacity, including our supply chain system. So we have to ensure localization for the production. For EU, there will be the so-called law on market competition. in order to govern the practice of companies to compete with each other in the same market. There will be some legislative requirements for those companies involved in those markets. So in the future, over the local supply chain integration, there will be some new practices from Geely.

On one hand, we need to quicken our steps to form the new structure. On the second hand, we need to form the scale of economy and the scale of economy comes with the word cost as well. So don't get me wrong. The products produced in Europe will only be sold in Europe, not to other parts of the world.

I want to add a few words to the first question. This is the question that is about the main thinking about our global strategy. We have to co-share the capacity on the global scale. We can use the most economic lever to give full play to the full strength of our system. Secondly, we are going to concentrate more resources for international perspective, meaning 2/3 of the markets will come from overseas, not to mention the strategy that I've mentioned about 1, 2, 3, 4, 5, 6 strategy.

How to stay focused? We need to continue to deepen the localization strategy. We need to continue to stick to the policy that our products need to go international. The supply chain will have to go local and our brands and our technologies will have to go move upward even further. Of course, another thing which is equally important, not only relevant to China, but also to other parts of the world, which is about aftersales service. We need to do a better job at aftersales services so that we will become a flagship company in the world. The aftersales will be the water shedding industry between whether or not we can really achieve success in due course.

Okay. Last questions due to the time limit.

Maybe we haven't answered the second question. About AP or accounts payable. Probably you didn't have much time to take a look at the financial statements. For AP 2025 year-end is about HKD 81 billion according to the Hong Kong accounting rules by June 30, 2026, is about HKD 84 billion. only about CNY 3 billion increase, not doubling, not double increase, only increased by CNY 3 billion. So this is a correction. Secondly, after the launch of the anti-ice competition policies of the state, we have quick steps to pay all the arrears or the account payables.

In the past, about 45 days, 60 days, 90 days of accounts payable to recover the money. And now we have already changed the rules for all those 60-day above scenarios, we have already shortened the period well below the scale of 60 days. Secondly, there is a different scale for year-end last year and also midyear of this year. And for the small and medium-sized enterprises, the scale has been reduced to about 30 days or even lowered to pay on-site practice.

For the results, also have some statistics. For H1 of 2025, the turnover rate is about 115 days. For H1 of 226, this period has been reduced to about 103 days. It is optimized about nearly half a month. But if you take a look at the Q2 of 2026, the turnover rate or days has been reduced to about 96 days. For Q3 and Q4, with more policies going out and with things getting even better, there will be much shorter duration for the turnover rate days of APs.

Also, we have received a lot of online questions. Maybe one question from online first.

I want to, first of all, ask a question about the grid and power distribution together with the charging facilities and the charging competencies for Geely and also some questions about energy storage and conservation.

So I want to first of all, thank our friend from online. As you have mentioned, that question is quite similar to the question raised by Guangdong Development Bank -- Development Securities. Why the pure electric battery is having its market because of the ultrafast charging devices or batteries, especially with the rapid increase of the market there, the energy replacement is critical to the users.

Many customers also have the same idea that for an EV cars, whether or not it is convenient, is largely dependent upon convenience, immediacy of energy storage and discharging efficiency. The convenience means whether or not you have a well-distributed outlets for the service of the NEV cars. We have been already thinking about one issue, how to solve the problem of charging life cycle and charging speed or ultra-fast charging facilities and efficiencies.

We are very clear about some of the issues there because when the temperature goes above 45 degrees or 50 degrees centigrade, when 10 degrees up, then the batteries will decrease its efficiency by about 100% or will quicken the speed of its phasing out, meaning originally, the life cycle or lifetime for the battery is about 10 years. But if the temperature goes too high, maybe the life of the batteries will be reduced by half to about 5 years only.

Secondly, super or ultra-high speed or fast charging will also generate a series of risks. Quick charging or fast charging, if I may use a metaphor, just like just in the case of smoking, smoking is bad for your health. but that might not be so clearly seen on first sight. But how to solve the problem. Our R&D staff, we have to consider as to how to ensure we can have fast charging, but also at the same time, safe fast charging.

So with 4 or 5 years of efforts, we have made full use of AI capacities to provide a full chain quick charging devices and competencies. That's because about 5 years ago in 2021, we have set up energy replenishment companies of Haan, and we are the first to China to launch our special technologies. And we have been maintaining our leading edge in energy conservation. In 2021, we are the first to launch the ultrafast charging post and the power is about 360 kilowatts.

By that technology, we can reduce the charging time from several hours to several minutes. Later on, charging time has also been reduced from 30 minutes to 11.5 minutes. In April 2025, we have launched about 1,500 kilowatt mass production gigawatt level device. The power is up to about 1,230 kilowatts, meaning the charging time has been reduced to about 4 minutes, 22 seconds for the battery to be charged by 10% to 70%.

And you only have to spend about 8 minutes or more to ensure -- to have your batteries fully charged. Some core technologies have also been developed ever since then, including some temperature control, AI smart technologies, charging technologies. The fifth generation of charging devices and technologies came out based upon the AI big models and super gigawatt technologies to maintain safety and reliability at the same time. So these technologies will be made available before the end of Q3 this year. So stay tuned.

So I want to give you a few quick glimpse of the technologies. First of all, through some temperature smart control technologies, there will be overheating of the system because otherwise, there will be a full chain overheating of the temperatures of the batteries. So we will strictly control the temperature within the national certified 65 degrees centigrade.

Secondly, the AI temperature control technologies use the vehicle post-cloud multipoint testing coupling to make the calculation using AI technologies. So the mill second change detection is made available through AI-centered technologies, we can ensure inspection, maintenance and charging at the same time, all in one strategy is made available to ensure safety and reliability.

Secondly, charging time and charging safety will be controlled mainly by the users, meaning the users will become smarter in using the energy replacement technologies. Of course, for more details, just stay tuned until the end of Q3 for the press conference for the official announcement of the technologies.

Investor at the back has got a question.

Thank you, Mr. Chairman. My name is [indiscernible] from [indiscernible]. The question is related to One Geely strategy and your product portfolio. If you take a look at your financial report, we can see that this One Geely strategy has made significant changes to this -- to the back-end office or back-end operating systems. And Mr. Gui also mentioned that there is still great room for improvement on your financial performance.

So I just wonder whether this -- you're going to enable greater changes at the front desk level. let's say, right now, you can launch a lot of models, but only a few of these models will be remembered and recognized by the customers. And also, we can see there were some sort of conflict between your internal models, the 9X, Lync & Co, ZEEKR, for 9X models, ZEEKR 9X, Lync & Co and other for Galaxy, they have launched similar models.

I just wonder how to differentiate these models under different sub-brands. Ever since 2019, there is a significant decline in the combustion engine vehicles. I just wonder in implementing this Geely strategy, are you going to streamline your product portfolio?

Well, thank you very much for your question. First of all, I'm going to give you a couple of numbers. For Geely brand, including Galaxy and China Star and Lincoln Co for Galaxy declined by 5% during the first half of this year. For Lincoln Co, it declined 6%. And for China Star, it declined 5%. For ZEEKR, it increased 97%, 97%.

So the overall increase of sales revenue is 1%. And the national average is minus 6%. Starting from 2024, when we announced the title declaration, is going back to the One strategy through consolidation and integration of resources, we're going to build a big back office platform, big mid-office platforms and reduce and eliminate duplicated investment, streamline the organization, streamline the functions, cut off all the redundant ones.

So through institutional change, we consolidate our procurement system. We consolidate our R&D system. And also, we established an integrated sales company for Geely during the first half of this year. Since we came back to the One Geely strategies, we've made some achievements. I think you can detect these achievements for our financial statement.

For example, the administrative spending, the ratio decreased from 1.9% to 1.7%. So there is a 12 percentage point drop to selling spending. in China, we're still making a substantial investment in China. But in international market, the spending remains stable. And for R&D, the spending ratio dropped from 5.5% to 5.2%. When we are doing the product, we were planning for the future products starting from last year until this year in ZEEKR, Lync & Co Galaxy and China Star, when there is overlapping models, we just removed them from our product plan.

So talking about the product -- the number of models reduced 20%. So through this One Geely strategy, there's more synergistic coordinations within the group, within the company, and we're seeing a more coordinated development among different brands. So as to how to develop the killer products in the future killer models in the future, I believe that the second half of this year is a critical period. Models, new models will be launched during the second half of this year.

For Galaxy, we will continue to focus on premium mainstay products for Lin & Co, it will continue to focus on trendy and individualized products. For Lync & Co, we need to broaden its product portfolio, but how? It will be more sporty, will be more dynamic. So I think this is the direction for the future of Lync & Co. As to ZEEKR, it will become a premium tech-driven brand. I think there is a clear distinctions between different brands. for Galaxy TT, [indiscernible], new technologies will be applied to these models. Well, so far, there is a very high level of market recognitions of the 2 models I've just mentioned. I believe that they will continue to enjoy high visibilities in the market in the second half of this year.

As to [indiscernible], I believe it will become a killer product. Well, this is a very good question. Actually, it captures the essence of the problems we're facing. There is a lack of a blockbuster product or model within the Geely system. The product plan -- the product development plan was formulated years and years ago. We are revisiting these plans, and it will take some time to complete the review of these plans. During the first half of this year, actually, we enjoyed a very good gross margin. We enjoyed a good per capita or per unit sales.

We enjoy good profitability. But we are still looking for problems. So behind these beautiful numbers, we found that ZEEKR is a prime contributor. It helps to increase -- it contributed to the increased gross margin and per unit sales revenue. And also Galaxy is another contributor. But I think there is still some lack of brand force in the mainstay market. we've taken notice of that issue. We still need some strong mid-level products. So in the future, we're going to do a better job in product model planning, technology planning. And there is more to do in these areas.

Once we got this strong mid-level blockbuster product, I believe we're going to see a significant increase in gross margin and profitability in per unit revenue. Anyway, we're confident about the future. Thank you.

We're behind schedule anyway. And we're going to launch some road shows in the next couple of days. We definitely welcome your participation. And if you have any further questions related to the development of the company, we'll be very happy to receive your company. Thank you once again. That concludes the conference. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

[Audio Gap] The ZEEKR brand continued its upward trajectory with a new cycle of brand accent with an annual sales of 224,000 units, achieved a positive sales growth for many consecutive months with monthly deliveries exceeding 30,000 units in December, record high, and ZEEKR products cover mainstream luxury segment, top Chinese new force and luxury brands. ZEEKR 9X sales exceeds 22,000 units within three months of launch, firmly ranking the first in sales in China's CNY 500,000 level, large SUV segment in November and December. And ZEEKR 009 remained the sales champion in China's MPV segment priced over CNY 400,000 for two years in a row.

And then when we move on to Lynk & Co, we could see that sales volume reached 350,000 units and among of which new energy vehicles reached 228 units. So the new energy mix rising to 65%. And so we can see the high value of the Lynk & Co could be reflected in the market that Lynk & Co 900 accumulated over 50,000 units in the six months since it's launched. And so ranking among China's top 3 full-size hybrid SUV. And Lynk & Co's and EM-P also exceeded 20,000 units.

And then move on to Galaxy. The Galaxy sales reached 1.236 million units, up by 150%. So we could see it has covered that the multiple segments from the Level A to Level C. And so Geely, especially its Galaxy E5 has made it a top 2 in China's BEV A class SUV segment. And Galaxy M9 also ranked top 3 in China's PHEV C class SUV segment. And when we look at Geely Star ICE reached sales of 1.214 million units in 2025 and also witnessed the market growth even against the industrial drop of those fewer vehicles. And so here, we can see for Xingyue L ranked #1 in China's ICE SUV segment across all brands. And Boyue ranked #2 in China's ICE SUV segment and Xingrui ranked #3 among Chinese independent brands in China's ICE A class segment.

Geely Auto not only focus on the high-quality business growth, but also sustainable development. And so we have made the five-year carbon reduction target by the end of 2025 and reducing vehicle life cycle carbon emission by 25.5%. And so we're pioneering that we built the full scenario safety system, which is human vehicle road cloud satellite. And this has already winning five Guinness work records.

We not only maintained a leading market player in the industry, we also have been selected as one of the S&P Global Sustainability Yearbook and received award of the best progressing company in the industry. In 2026, we will further focus on the value of the driven by value that technology and globalization. And we have a sales volume target, which is 3.45 million. And so by now, Geely Auto has ranked #1 in China's passenger vehicle sales for two consecutive years in 2026. So we believe we are able to make more achievements that in segments.

ZEEKR brand sales target for 2026 is 300,000 units, a yearly increase of 34% and ZEEKR 8X and ZEEKR 9X glory edition will be launched within the year, expanding the luxury product metrics, leading brand value enhancement within the luxury experience and the new super electric hybrid, high-performance flux SUV. ZEEKR 8X is the world's first full stack 900V hybrid, high-voltage architecture equipped with the tri-motor hybrid megawatt electric drive and the industry's first full-class Haohan AI Digital Chassis held as the new King of the Road. On March 16, our ZEEKR 8X was officially launched. The presales started at the same time with orders over 10,000 units within 30 minutes. And the Lynk & Co brand sales target for this year is 400,000 units with a yearly increase of 14%. And this year, the Lynk & Co 07 wagon version and also the mid- to large SUV will also be launched. And Geely Galaxy sales target for this year is 1.55 million units, a yearly increase of 25% through creating heat models seeking growth, we will improve the product metrics and also cover the food category in the mainstream new energy market. Geely China Star sales target for this year is 1.2 million units based on the #1 sales position among China's own brand fuel vehicles, and we strive to become #1 among all brands in China's fuel vehicle market. And the new generation i-HEV technology will also be released with fuel consumption per 100 kilometers entering the 3-liter area. And as for the export, the sales target for this year is 640,000 units with a yearly increase of over 50%. The export will accelerate in this year. Since the beginning of this year, the monthly export sales has exceeded 60,000 units for the two consecutive months. We focus on overseas markets, building 350,000 unit market in Europe, Eastern Europe and ASEAN as well as 100,000 unit market in LatAm as well as Middle East and Asia Pacific. We will continue to diversify our global footprint.

In terms of technology, we will accelerate AI adoption, empowering product intelligent experience as well as the breakthrough improvement. The G-ASD empowered by the WAM World Action Model will achieve multiple breakthroughs. G-ASD H9 will achieve L3 mass production. Robotaxi will also achieve large-scale pilot operation. G-Pilot Intelligent Driving has also become the first Chinese auto company's intelligent driving solution to pass EU regulatory framework and will also go global within the year. Super EVA Intelligent Lifeform will continue to upgrade, bringing leading experiences. So, dear friends, we deliver high-quality development with One Geely as the core characterized by synergy, efficiency and a healthy sustainability last year. And in 2026, we continue to commit to our brief, deepen One Geely strategy for the goal of becoming the global leader in smart vehicles.

That concludes my presentation. Thank you.

Now I would like to invite Mr. Hui to give us a speech.

Thank you very much. Thanks all of our investors attending the annual result announcement on site and online. Thank you very much for your support for Geely Automobile all the years. I still remember 2.5 years ago that I on this result announcement meeting, I've already reported to you that Geely Automobile have already deployed its framework to make it to fully intelligent and to set on the new race track of new energy. So I am so proud here today. I've already lived up my promise that I made 2.5 years ago.

And so when we look at the results of 2025 that our new energy vehicles already made it the top 2 across China. And being top 2 in China, that means that being top 2 in the global market. And so when we look at about the new energy vehicles market, I think there are two distinctive features. The first one that is the growth is fast. And when you read some data from the financial reports, you could see just with one year, we are able to make it to 1.2 million units. So the growth rate is very fast, and that's one of the feature of Geely. And another feature that is affords to luxury and high end and also the mass market, we have different products. So we are able to have the MPV, SUV and also the [indiscernible] and also pickup truck. We believe this wide range of the product matures could make Geely very special in the new energy vehicle market in China.

So why Geely is capable of making such a result? I think there are two reasons behind that. The first reason, along with the development of the new energy vehicles, we could see there would be actually some similarities of those three electrical systems, which are the model and also the electronic dredges and also the batteries. And it's very important. So, for Geely, we have already accumulated years of making cars, especially making fuel cars, we have already made a very solid foundation. And because in the fuel car era that Geely actually was one of the biggest market players that of Chinese brands. And so we are able to put all of those accumulated experience that to become a competitive edge nowadays.

And another reason for the rapid growth of Geely, I think that's because we have a mature group of consumers. So when consumers that their freshness or their interesting in new energy vehicles fade away, they really think about the KPIs and also the features of the automobile. And so they favor the products of Geely Automobile. And so especially in the luxury end that Geely's brands and Geely's capabilities really outperformed other players. So I think that's the two major reasons why Geely is capable of making such a result in 2025.

Apart from the sales volume and sales revenue and financial data, I also would like to summarize what we have done in 2025. especially some of the milestones. So, from my perspective, there would be five perspective of works that have been done, which will benefit to the future development. The first one is the safety. Safety is undoubtedly to be the most important part for automobile, especially in the era of intelligence and new energy. As we all know that Chinese new energy vehicles that developed super fast. And so sometimes some of the vehicle brands will have a very eager pursuit of a fast development. The different brands just would like to sell the vehicles out. And so they focus on about the marketing of the new energy vehicles. And so those kind of the marketing sometimes could be misleading.

So sometimes people were so surprised that why Chinese market is so competitive and because some of the brands or some of the market players just would like to lower the cost, which means they actually reduce some of the investment on the safety. So even under such a competitive and complicated environment, Geely Automobile, we have made -- we still maintained a clear mind. We truly believe safety is the most important part for automobile. And safety is the nonnegotiable bottom line. So, in 2025, we established the largest global automotive safety center. And such a safety center is capable of satisfying the testing demands for global markets. And such a testing criteria could be satisfied to all different market rules. So, in such a safety center in Geely, no matter what is the price tag of a vehicle, maybe tens of thousands or millions of luxury brands or be it few vehicles or new energy vehicles that every single car that made by Geely must be tested under very harsh standards.

So the reason why we established such a safety center, I think this is one of the reflects of our long-term spirit. And we also believe that safety is one of the right should be enjoyed by every consumers. So we should take on the responsibilities to protect our user and our consumers' life. So that's the first big thing that we've done in 2025. And we also prepared some of the menu for you to have more information about our safety center. And I also would like to invite you at any time, you are welcome to visit the safety center of Geely Automobile. And so this is the first thing I would like to mention to you.

And the second thing that is the intelligence development. When we talk about intelligent technologies, we could just review the history that in the year of 2021 that we made resolute decision that we are going to transfer to new energy vehicles. And at that time, we were so clear that intelligence is the future of automobile. And therefore, in 2021, we've already established new frontier intelligent computing center. And so from 2021 to 2025, over the past five years that we have already made improvement in terms of intelligence, starting from the strategic deployed phase to the phase of value harvest. So we focus on the big data and also foundation model and large scale of computing power. Based on that, we did another big thing that is under the strategy of intelligence, we have completed our collaboration with Qianli Technology. And with such integration, we are able to apply AI for our entire domain. That means AI is now applied and also powered our whole system application, started from the product development and to the framework adjustment and vehicle operation and copilots.

But for Geely Automobile, AI is not only a smart or intelligent cockpit. It's actually one of the physical application of AI on vehicles. So that means starting from the design stage, we make full use of AI. And during the process of driving such a vehicle that with this AI cloud power, we are able to ensure the Geely vehicles is always driving with the strongest momentum and also the lowest fuel consumption or the safest way of driving.

So I think in terms of intelligence perspective, I actually emphasized the concept of AI many, many times. I think you could compare Geely's AI concept and application with other brands. And I think the intelligence of AI should not be limited in a smart copilot or the copilot. We could actually -- what we are doing in Geely that is we already applied AI into the full life cycle of the whole vehicles.

And in the recent financial report, we also mentioned Qianli and also the Qianli system and also just mentioned the G-ASD system has been already recognized by the EU. And so that means that product will be exported for overseas markets. And there was also news and that in the NVIDIA's conference that the founder, Jensen Huang, he made 2.5 hours speech. He also showed AI fiscal application, and he used Geely Automobile to show the presentation. So we can see that there is a partnership between NVIDIA as well as Geely. We also believe that the partnership between the two parties will also contribute to the intelligence development of Geely.

As for intelligence, years ago, we have a lot of discussion centering on it. Some argue that the smart cockpit of Geely has a lot of disadvantages. And in the past two years, with the application of Flyme Auto and also other applications, we can see that a lot of the disadvantages have been removed because of this application and also the intelligent driving, maybe we still have a gap with our competitors. But I should say that last year, we have already made the huge progress in terms of the intelligent driving, which can be showed in the ZEEKR X9 but it is also costly. And so far, the sales volume is quite limited. As for the Geely Automobile, it's intelligent driving, maybe you are not having a full picture. But I believe that with different solutions for the intelligent driving covering full category of our automobile, I believe that you will have a better understanding about intelligent driving. And just now, I have a lot of information about intelligence, about the safety, et cetera.

But I would like to highlight that the progress made by Geely in terms of the intelligence, we can see that the strategy unfolded by Geely has been very important. For example, the Xingrui computing power has been a big contributor. And also, we have also had the partnership with Qianli Technology. This is also one of the contributor. So we believe that the partnership contribute to the progress that we have made in terms of intelligence. And today, I'm also happy to share with you the prospects that is with the efforts with Qianli Technology. And so far, the autonomous driving of Geely Automobile may also on par with that of Tesla of FSD. So if we can reach that level, we believe that the intelligent driving of Geely Automobile will also have a lot of cutting edge in this field. And on that basis, in the coming two years, we are also going to build the L4-based autonomous driving system as well as the interruptive cockpit system. So, in the coming five years, as shown on our slides, we would like to be the global leader for the smart vehicles. So this is what we have done in the past one year.

So just now I have shared some highlights of our progress with you. And next, I would like to cover Geely Automobile's development in the luxury segment in the era of ICE vehicles, Geely has also made the breakthrough with Lynk & Co brand and also enter the mid- and high-end market. So the breakthrough of the Lynk & Co has already embodies the capabilities of making luxury vehicles of Geely. And also since 2021, with the leadership of Mr. An, we have also entered the luxury segment with the brand of ZEEKR. As shown on our slide, ZEEKR 009 has also been tested by the market in the past few years. And so far, it has also become the flagship product of the luxury MPV.

So now we get it here in Hong Kong. We can see Hong Kong is home to a lot of the luxury vehicles. And 009 have made a lot of presence in the Hong Kong market. So the success of the MPV, ZEEKR 009 has also showcased our capabilities and progress. And also last year, on the basis of the successful launch of ZEEKR 009 and in the last quarter of last year, we also rolled out ZEEKR 9X. And so far, in the China SUV market, we can see that the sensation has been aroused. As for the success of ZEEKR 9X, undoubtedly, we can see that it is attributable to the comprehensive capabilities of making vehicles of Geely Automobile Corporation. And as for the ZEEKR 9X, it has been equipped with the unparallel driving system. That is the super hybrid system. That is the highlight. And I can also say that it just redefined the hybrid system for the NEV. So if you would like to reach that level, you cannot just make the improvement at the motor system, rather, you must also be supported with other system. The motor system, the driving system, they need to have very good integration.

So as for the super hybrid system, what kind of features does it have? We have already shared information in our brochure. You can just read the brochure for more details. And of course, you can also give us the feedback after you're reading the materials. So as for this new technology, we can see that Geely has made a lot of progress in terms of intelligence and also in NEV segment. We have already built our moat in our technology field. We also believe that we can just adopt more technologies to consolidate our strength in the NEV in order to enhance our competitiveness.

Of course, Geely, in terms of the success in luxury segment, we are also going to have other snowball effects. The first one is the product metrics will also be improved further. And on the other hand, with the launch of more luxury models, we also believe that the profitability will also be driven up of Geely. So this is the third aspect related to the luxury segment.

And next aspect that I would like to share with you is that last year, we also have the synergy. Last year, we just have the privatization of ZEEKR. On May 7, we published the recommendation for the privatization. So until December 22, we completed the deal. So we just combine the Hong Kong listed company as well as the U.S. market listed company to have the equity swap. So previously, this hasn't happened yet. So it's first of its kind. We just spent over 200 days to have the equity swap, and it is fast. We also did it perfectly. And all the shareholders show their satisfaction for this deal. I also believe that in the future, we can also deliver more.

And hereby, I would also like to stress that even though this integration, this synergy is nothing new, but I should say we can also consider Geely's development from a different angle. So from the release of the Taizhou Declaration in such a short span of time from the integration of Lynk & Co and also ZEEKR, we can see that amid the fierce competition in the industry, Geely Automobile can just adapt to the evolving situation rapidly and swiftly. Geely also show its coverage determination as well as efficiency. So from this event, we can see we have fully showcased the areas that I've already mentioned, the efficiency, the determination and also courage. And I also believe that with this, you should also boost your confidence in Geely Corporation. So, for this event, I just suggest you to think from this different angle. You should have confidence for the Geely's future development.

So why do we have the integration and synergy? What kind of benefits can be generated? And last year, we have three press conferences, and I also give a lot of details. And today, I will not elaborate anymore. I will not delve into it. I believe that the future financial announcement will prove the benefits we generate. And as for the five aspects that I would like to share with you is that we will just want to diversify the energy input Geely Automobile has stayed committed to the strategy of diversifying the energy. Previously, we focus on ICE, then we also have the hybrid, the PHEV, BEV, et cetera. And now we just cover the full stack technology system. And I believe that the full stack technology system will have a lot of cutting edge in Chinese market or even at the world at large. And we have been a benchmark in this field. As for the ICE, we also have our own features that is the ICE vehicles have been the smartest in the markets. And also the financial announcement also mentioned that in nine years in a row, we have maintained the #1 position in the market among the homemade brands. Also, our growth has also maintained #1.

And I would also like to stress that the fifth generation methanol technology has also witnessed a huge progress. So for per 1 kilometer, the cost is CNY 0.2. And also, it can also be applied at a temperature of minus 40 degrees Celsius. So, in the Northern China, it can also be well applied. Methanol can be used for the passenger vehicles or commercial vehicles. So this is the unique technology adopted by Geely. And I believe that methanol will also become a very important growth point for Geely.

And just now Mr. Dai also shared with us in the financial announcement in 2026 for the ICE vehicles, i-HEV technology will also be unfolded for the ICE vehicles. So with the adoption of this technology, we will just save energy and make our vehicles smarter, deliver better performances to the vehicles. So, for the ICE vehicles, we can also further enhance our competitiveness and also elevate the position of the ICE vehicles in the market, which will also contribute to the development of a Geely company with the stable guarantee.

Two years ago, I also once mentioned that in quite a long time in the future, the diversification of energy will also be the cutting-edge strength of the companies. Even though it hasn't been fully proved, but still, I believe that [indiscernible] will prove my point of view. So this is the fifth area that I would like to mention with you, that is the diversification of energy.

In the interest of time, that's all I would like to summarize for what we've done in 2025, the five big things that we've done last year. And I believe you may have many questions in terms of our batteries and going global business. I think the floor is open. I will have Mr. An and Mr. Gan to answer your questions.

When we review 2025, Geely Automobile make progress. But still, there are something we still need to do, such as the brand development, global market scale. And so these are the aspects we have to improve. And for example, that in the -- and then I had a lunch with Mr. Zhen that Mr. Zhen told me that Hong Kong is a very important marketplace. And however, currently, the presales and also aftersales service that in Hong Kong is not doing very good. So these are the things that need to be approved in the near future. So more work need to be done in the future.

And from the globalization perspective, although the Geely Automobile already made our steps to going forward, but I still believe that we are not exactly leading the global markets. And so we have to continue our efforts.

And hereby, I also would like to share with you my mindset. I think along with what we've achieved in 2025, I could see that really put Geely Automobile's team in a very competitive, self-reliant position. And we become more confident, more independent and more mature. Why is that? Because now at current stage, we have a clear development direction of what is the future going forward. And based on that direction that we've already built a sound scientific ecosystem. So we have the intelligence cockpit and also the copilot chips, batteries and also the future mobility. You see that I think there is no other automobile companies like Geely that we have a comprehensive layout. And people are talking about that maybe in the future that the vehicles develop so fast. So that means for those vehicles under 100,000 vehicles, there will be no markets. There will be no consumers. And I don't think so. And people may say that in the future, everybody will use robotaxi. But I think these are the opinions or the arguments that in the market.

But I think for a vehicle company, in the future, we first need to have a wide range of the product matures that to satisfy the needs in the mass market and also luxury market. And so between the budget of the 100,000 to 200,000 that we also should have some products could be competitive with robotaxi. And so in terms of the production capability and operation ability, I believe Geely is capable to make those products to be competitive. And in terms of robotaxi, I think that's the future direction.

But what I would like to emphasize that we shall not only be capable of making robotaxi products, we shall also have the capability to operate robotaxi. And over the years, you could see that in Geely Automobile that we have already built our own system, our ecosystem. So we also have our CaoCao taxi and which is also making improvements over the years. And all of these efforts already made a very sound foundation for us to have a good future. And that future is also based on what we have accomplished about the foundation and based on the ecosystem we have been built years and years ago.

And two years ago, and in one of the annual result announcement, I also mentioned that we have already had our sales volume reached the historic record high. And I also hope that we are able to make a new record in terms of the core benefit attributed to the shareholders. And in 2025, I I'm so happy that we've already done that. So we not only improved the sales volume, we also improved the net profit attributable to the shareholders. So in the era of the new energy and intelligence that Geely Automobile has made a very good performance in 2025. And I'm very confident to let you know that apart from the sales volume record high in the next annual announcement meeting, our core net profit attributable to the shareholders and also the profit will be making record high as well.

Thank you. The floor is open for Q&A.

And we also are taking questions from online. Could you please give the mic to them? Hong Kong media. Any friends from the Hong Kong media because we had an announcement that in Hong Kong.

Yes. Thank you. Thank you very much, Mr. Gui. I'm the generalist from the South China Morning Post. And it's very impressive to look at about the numbers, and you also mentioned ambitious targets. So my question is about going global. So could you help us to evaluate the overseas markets? So we see that many vehicle companies also seen a very good growth in overseas markets. So some people believe that overseas market will become Red Sea. So how do you see? And how will Geely cooperate with that? Which region has the highest growth point? And what is the competitive edge of Geely and facing the geopolitical risks?

Thank you for asking the questions. Actually, you've mentioned two questions. The first question -- the two questions you asked are of our concerns in the industry. So the first one is about the overseas business. Over years, Geely has deployed our overseas market that in 2025, that the export of Geely Automobile actually made it to 420,000 units. And for the new energy vehicles that we have already reached a sales volume of 124,000 units. So we could see that the growth plan already made at 240%. And so for us, we believe that 2025 is the year we just laid a solid foundation for overseas markets.

And so in 2026, we will focus on our -- put our energy and also our resources on overseas markets to deepen our capability of production in the local markets. So that means we need to export our products. We also need to build up the supply chain in the local market. And so that means we also need to focus on the branding and also technology export. So we also will like to develop the country-specific approach and to satisfy the market demand. And so we can see that in 2026, our overseas market goal, which is 640,000 units, which is 50% higher than what we have sold in 2025 in overseas markets.

And when we look at about the first two months, of 2026, Geely already sold out the 121,000 units. So we could see the momentum. And I think we've already deployed a very good strategy that in overseas markets. And so in the near future, that the production capabilities of the Geely will be further released to empower the overseas markets.

And another one that is in overseas KD, and we will introduce more products into the overseas markets, including Boyue. These are the very popular products and very popular vehicles that in Chinese market. And so we will further expand those products and those vehicles to the overseas markets. And just like Mr. Hui mentioned that next month that we will have new series for the Chinese vehicles. And especially for the few vehicles for ICE that we have our advantage. And so we will focus on the ICE overseas business as well.

And another thing is about Galaxy. The Galaxy because our rapid vehicles development of the new energy vehicles. And so we could achieve a very rapid growth in overseas markets in the new energy segment. And so last year, that we've sold out 124,000 units of the new energy vehicles with a growth of 240%. And so this year, that we will continue to focus on the new energy vehicles, overseas market. And so we will have work with some of the local productions. And so we believe that like other brands like Xingyue will be very popular as well. So our internal target that is around like 640,000 units. But actually, internally, we believe that probably we are going to make it 750,000 units. So that means the growth rate for 2026, the new energy vehicles in overseas market will have a growth that nearly 80%.

And how about Lynk & Co? I think for Lynk & Co, we shall have -- we will have some synergies with the Volvo in Europe market. And in European market that we also have some marketing resources. So at the very same time, we hope that we are able to expand and also export Lynk & Co, ZA, Z1 and also Z2 to the European markets. And like the ZEEKR, the ZEEKR 7X and ZEEKR GT and those are also already started sales in Europe. And we believe that our ZEEKR will be launched in South Korea as well. And we believe that for ZEEKR MPV that is also very popular in Malaysia, in Singapore and also in Chinese Hong Kong. So we could see that ZEEKR Z-09 will become one of the potential sales champion.

So I think when we look at about the global market, that Geely will put more resources and efforts into the global and overseas markets. And so we already established our subsidiaries and company that in Mexico and Chile. And so in the future, we will make full use of those sub companies that to focus on the product planning and also the branding and channel promotion, et cetera. And so for the channel, we believe that in next year or in -- we will have more than 1,300 Geely brand stores. And so when we have more brand stores and especially for ZEEKR, there will be 500 ZEEKR brand stores. And on top of that, for the 2026 overseas markets, another key reason that is the raw materials increasing cost.

As we know, along with the AI development in the recent two years and the memory chip will be more expensive. But for Geely, we are very proactive. So we are working with Samsung and also working with Chongqing and also some of the chips company in the U.S. as well. So with the strategic partnership, we can just build on our strength. First of all, on the new and also fresh technologies, we can also promote it. And moreover, we can also have more competitive prices. So this is our advantages.

Regarding the rising cost of materials and as for the rising cost of copper as well as lithium carbonate, we also have our countermeasures. For example, we just work together with our suppliers to lock our prices so we can also enhance the competitiveness of the products. So from the cost of the products, we can also see that the economies of scale can also be a very good hedging of that. So, from Geely, you can see that we have a volume of over 4 million. So this can help us to generate the economies of scale. So this is also one of our advantages.

And as for the Middle East, but the current landscape will also impact the development. So, as for our sales, the share is quite big in Saudi Arabia. So we can see that because of the stability of Saudi Arabia, so the impact may be relatively small compared with other regions, because so far, we don't have any business in Iran.

And more questions will come. So we also have a generalist from the foreign media.

And on the cost side, where can we see evidence of the Taizhou Declaration efforts to improve synergies and integration?

[Foreign Language] And also two years ago, we just published the Taizhou Declaration. We just proposed a synergy in five highlights, including the strategy integration and also the strategy for the stable development and also the talent. So I believe that the five strategies are very important. And also since last year, so with the guidance of the Taizhou Declaration as well as the reform guided by the leadership, I also say that we have made a very good achievement.

Now I would like to elaborate from the following areas. First of all, for the Geely Automobile, last year, we successfully completed the integration of Lynk & Co and ZEEKR. So this has also been very important efforts to the Taizhou Declaration. In a very short span of time, we made a very good progress as introduced by Mr. Gui and Mr. Dai. So as for the integration of the two brands, we can see that we can just orchestrate the resources under one umbrella and also the interaction of the brands can also be enhanced. And also the mid- and back stage can also be orchestrated, so we can just pool the resources and also well allocate resources under one umbrella. And moreover, as for the supply chain or to be specific, the procurement system and also the manufacturing, the sales channels have also been integrated. So, in a sense, this has helped the enterprise to reduce the cost and also the administrative expense and improve efficiency.

And from today's financial announcement, I should say that the effects of the integration hasn't been fully illustrated because the integration just happened not long ago. I believe that in 2026 or beyond 2026, we may see better effects of the integration. And in 2025, Geely has delivered a high-quality development. And this high-quality development has not been supported by the sales growth only. Rather, we can see that the value of the brand has also been elevated.

This is the very important segment I would like to mention. So for this development orientation, I should say that it just pave way for the further development for the year 2026 and also 2027. So the progress in 2025 will just consolidate the foundation for further development and progress. So the Geely Holding company has highly recognized the performance delivered by Geely Automobile in last year. And just now Mr. Gui and also Mr. Dai give us a lot of details supported by the figures.

And with these trends, I also like to mention the importance of Taizhou Declaration. And moreover, from our company perspective, we would also like to introduce the landscape about the passenger vehicles. Before the conference, and I also hear some ideas from the investors. Some say that the Geely Holding Corporation have a lot of brands. So whether it will just have the impact on the Geely, I should say that there's no impact, rather with the interaction and the linkage, we can see that the brand of the passenger vehicles can be better integrated, who will support each other. And apart from Geely, some may also ask the Qixing, Lotus Smart as well as this, we can see that they are developing separately in the past. But after the release of the Taizhou Declaration, we continue to have the reflection about our development experiences and also the holding company established a strategic committee that is -- we need to just have the clear positioning of the different brands under the Geely Holding company. And we must also have the evidence-based design of the brands and the products. The procurement system must also be shared and the manufacturing resources must also be shared. So this is the strategy highlighted in the Taizhou Declaration. And moreover, the channels can also have the synergy.

And more importantly, you just also mentioned the question related to Geely's going global. As a matter of fact, the brands controlled by the Geely Holding company, they have their own advantages, but they can also have the cooperation interaction. This also contributed to the success of going global trajectory.

I would also like to give you the concrete examples. For example, for the brands, they also share the architecture. And as for the core part, core modules, different brands can also share. And as for the manufacturing resources, different brands can also share. For example, as for Geely 0175, we can see that the brand continued to develop and the safety has also been its benchmark and also highlight as highlighted by Mr. Gui. So, with the support of Volvo, the safety of Geely may not be elevated so fast. And also last year, Volvo and Geely has also have the synergy or integration or partnership for the procurement with a scale of a benefit of CNY 5 billion. And you may also mention the ZEEKR 9X, I should say that the performance is very good. It also got the support from Lotus in terms of the collaboration in other area. So multiple brands controlled by the Geely holding company, they can just form synergies. This will be the benefits for different brands. And the Geely Holding company can also generate more strength and advantages. And this cannot be compared by other competitors.

So I should say that as a matter of fact, we have already witnessed the effect of the synergy of different brands under the Geely Holding company. So with the guidance of the Taizhou Declaration, multiple brands can have a collaboration to generate more values under one umbrella. And recently, I also read some news coverage. And before these announcements, some media also asked me some questions regarding the overseas picture.

As a matter of fact, I can also share my view with you about the going global strategy in the overseas market. First of all, so you can see you have a lot of attention about the going global footprint of Geely, just like some of you have already raised the questions. So, as for the Geely Holding company, they also partner with other outstanding automakers. So with the partnership with them, we can just rapidly expand our global footprint. So we must be swift. We must build up the scale, and we must also ensure the cost effectiveness and also lower the investment risks. So maybe you just center on all these areas.

We are also deeply aware that for an automobile company, it can never fight in silo. The risks and also pressure will be heightened by solo efforts, but we just need a partnership to have a better effect. So how can we just leverage respective strength to offset our shortcomings? How we can just partner with other outstanding automakers to enhance our respective strengths and also ensure the adequate capacity as well as the mature supply chain as well as the talent system as well as the quality assurance system. So all these are very important. And we must also not miss the sales channels. So we can just partner with other leading automakers.

As for Geely, we have our own advantages in the technology, the product, either in the field of intelligence or electrification or the auto architecture, we have our technology advantages. And we believe that with the synergy and partnership with other automakers, we can achieve win-win. So, just now, I just share my perspective with you from the partnership with other automakers. With our collaboration, we can also expedite the going global footprint of Geely company.

And we also partner with Renault. For example, we have a joint venture in South Korea which is developing rapidly. Last year, we also have a joint venture with Renault in Brazil. And you can also see that the development trend is very good. It just follow the development plan of the company. And we also work together with Volvo and Renault to build the powertrain company entitled host powertrain. So annually, we produce 70,000 to 80,000 units of the powertrain. So you can imagine that this is the result that showcase the benefit generated from the economies of scale because we can just lower the cost and also have the rapid response to the global market demand. So this is successful examples.

And Geely company has also adopted the global strategy like we acquired Volvo and also the Proton in Malaysia and also buy the equity from banks, et cetera. So, all these plan, all these deals have contributed to the Geely's development. On the other hand, we can also enter the international market with this approach. I may just stop here. Thank you.

Okay. So the floor is open to investors. Can we give the mic to the one in the middle?

Dear executives, I'm from Guangfa Securities. My name is Chong. I have two questions in terms of the financial KPIs. The first one, we could see in the gross margin that we increased 0.3% in the first quarter. And so Mr. Dai, could you help me to elaborate that what is the driving reasons of this gross margin improvement? And for example, that also the raw materials increased and how does it contribute to the gross margin?

And the second thing that is we could see that in terms of the expense, the R&D expense that actually grew by -- grew by CNY 1.5 billion quarter-on-quarter. And so could you let us know what's about in 2026 in terms of the expense of the R&D and also the capital utilization?

Thank you very much. And actually, when we look at the fourth quarter, the gross margin, we are able to make it 16.9%, actually higher than the full year average of 16.6%. And so we can see in the fourth quarter that ZEEKR's sales volume reached 80,000 units accounted nearly 9.5% of our total sales volume. And so there were 2 points improvement of the ZEEKR sales volume in the fourth quarter. And so along with the 9X launched, we could see there were 22,000 units of the high-end products. So those high-end product sales will have a reflection on our gross margin improvement.

And you also mentioned about the second question that is about the bulk commodities. I think for the fourth quarter in 2025, I think there was not such a big impact. So we can see for the complete vehicles manufacturer or supply chain manufacturer that we will have some common experience in terms of the fluctuations of the commodities because it's the new normal. And so therefore, for the supply chain business that there would be cartridge and hedge solution. And so there would be a hedge measures that have been taken. So I think it's controllable. And so that's my response to you about the gross margin.

And you also asked a question about the -- I think I still need to look at about the first quarter's performance. But now it's still in the mid of the March. And so I think we really need to look at about the sales volume of the 9X. And so our production capability already improved. In the first quarters of the 9X deliverables that would be around 20,000 units. And therefore, I think I'm not very sure the gross margin in the first quarter will be lower than the last -- than the fourth quarter in 2025, and you have very detailed numbers.

And so in terms of the R&D, I think you could see for the fourth quarter, every quarter's R&D expense was around 400 units. And so when it comes to the fourth quarter, we could see the R&D expense already reached the 590 million. So -- and you can see that some investors also mentioned that the R&D expense ratio is too low. And in 2024, that number was around 31%. And in 2025, already made it to 36% or -- and in the fourth quarter of 2025, we already improved the utilization rate of the R&D expense. And I think this is our response to the investors, and we hope that our profit is of high quality. So, in this year, we hope that R&D expense will maintain around 40%.

Okay. The floor is open and for some journalists who sit in the backwards.

I'm from China Fund. My question is for [ Mr. An ]. Mr. An, that Geely has mentioned its scientific attributes. And just like Geely has already concluded its 2025 strategy. And so my question is we are going to release the next five-year strategy. What would be the key focus?

Okay. Thank you for your question. Because in 2021, that Geely launched the Smart Geely 2025 strategy. And in that strategy, we mentioned about one network, three systems. And so three systems, including the smart ecosystem, smart scientific ecosystem and smart energy. So basically, that would be the smart energy, smart manufacturing and smart service. So basically focus on the chips operations and big data technologies.

And in essence, when we talk about the chips operation system, big data, which is the computing power and also the foundation model. And so that is the foundation of Geely AI. So that means currently that Geely's AI strategy is based on what we've deployed since 2021. Because of such a correct strategy that we have huge investment in terms of the three key components, which is the batteries, electric motors and electric control. We also invested in intelligence. Like Mr. Gui mentioned, we established the new manufacturing center in 2022, and it was put into use right away and which accelerated our R&D input and R&D output and improved the efficiency. And it also -- it was also open to our clients.

And in recent years, we also promoted AI. We focus on the full domain AI strategy. Full domain AI, that is the combination of the foundation model and the vertical module. So with such an integration, that AI, the full domain AI will be applied in every part of our work. So we are able to improve our R&D efficiency and also have a better control in the vehicles. And in 2021, that the sales volume of Geely was 1.32 million. And in 2022, it made it 1.37 million. And in 2023, that was 1.64 million. And in 2024, that was 2.17 million. And in 2025, we can see we've already made it to 3 million. And the ratio of the new energy vehicles already reached to 55.8%. So I think those past five years' performance have already reflect and proven our strategy that developed in 2021 was correct, and that strategy was fully implemented.

So how about the next five years? It's decisive for 2030 strategy. So we will focus on the foundations. But the good thing is we've already built a very solid foundation. So, for 2030 strategy, I think the first important focus that will be intelligence. We have to emphasize the intelligence development. And we do believe that the automation intelligence is very important. However, we also need to make intelligence empowered by AI to become a very important technical attributes and also made such AI intelligence to be one of our competitive edge.

And so in terms of intelligence, we did and we do and we will have more deployment in AI and be it to build a system or build it a talent pool. And for example, in the beginning of this year, we also announced some of the foundation model. And for example, G-ASD. G-ASD is one of the foundation model that empowered by AI. And just like Mr. Gui mentioned, the ZEEKR 9X is also used the foundation model that to empower the system that to make the intelligent vehicles that more like human.

And secondly, we also will use AI to build the Super EVA agent. So the Super EVA intelligent lifeform is important. So that will be 1 plus 2 plus M. So the full domain, that means the AI agent will be will function as a brand and is able to call so different domain, including the driving domain, the copilot domain and also the powering domain, et cetera. And those domains could be fully integrated. And in this way, we are able to improve the synergy of the vehicle. And so that will be the AI empowered capabilities. And so -- and in this way, we are able to make a vehicle of future.

And another focus that would be the high-end Geely vehicles. So after 2024 announcement of the Taizhou Declaration that we've already merged ZEEKR brand, Lynk & Co brand and Galaxy brand and also [ Jianghe Qixing ], which is China heart. So these are the four brands. And those four brands are falling into the different segments of the market. So it's enriched product portfolio. So we believe that such a vehicle portfolio is reasonable and comprehensive and is capable satisfying different consumer needs. And so in the next five years that we will focus on the high-end development. So we will make ZEEKR vehicles to be the luxury technology vehicles.

And then on the 16th of March that we officially launched 8X and actually already received the widely recognition from our consumers. So many of our consumers really actually went to the shop and also to have a try, and they truly feel great about the stability of the vehicles and also the smart cockpit and I think those technologies really satisfying our consumers. They've got a very good experience. And therefore, it just have already decided our deliverable cycles would be around 20 weeks, so it will be 11 or 14 weeks maybe in the future. And now this cycle has been shortened to 11 weeks. So you can see that this also raised high requirements to our suppliers in terms of the auto parts. So, in the future, we also plan to shorten the cycle of the delivery from 11 weeks to 8 weeks in order to have a very good response to the needs of our consumers. And also for the X8 on March 16 with the presales, we can see that the market feedback is very good. And just within 38 minutes, the orders has surpassed 10,000 units. And in less than 48 hours, the orders surpassed 30,000 units. So you can see that it has been first of its kind within the market because these figures have also been notified by the notary offices. So it is authoritative.

So for the 2030 strategy, we will also strengthen the globalization. Just now I have also shared this strategy with you. Geely will also focus on the Galaxy, Lynk & Co as well as ZEEKR for the global footprint. So for the upcoming five years, we will just accelerate our global footprint shift from only the export of the products for trading to cover the design, the sales and also the localization. So we would like to have the partnership with the local partners. And for example, we partner with Renault as well as Proton, et cetera, in the Southeast Asia, and the cooperation has been very good. For example, we partner with Proton to introduce the NEV. The sales of NEV has also been at the top list in the Southeast market and the market share has also increased from around 10% to over 25% currently. So overall, we can see that in the future, the partnership with Proton will also help us to elevate the position in the Malaysia as #1 and also top 3 in the ASEAN markets.

And also for the 2030 agenda, we will also build an ecosystem. So we believe that the importance of the software will be heightened. So as for the Geely ecosystem, we have also made a lot of deployment, in particular, for the Lynk & Co, we have the Lynk & Co shopper mall. We have a lot of the Baltic products on the mall. So with one ID, we just will connect different brands and models. So the consumers will just as us to diversify the services with just one single ID. So the vehicle will be an integral part of our life. And as for the ecosystem, we will also strengthen the sharing in the future with the intelligent technologies or even the L4 robot taxis like the CaoCao Mobility, we will also have a very good integration with it so that all the customers will also have better experiences in terms of mobility as well as space.

And last question, the lady in the second row.

Thank you. I'm the analyst [ Deloitte ]. I have three questions. I'm not sure whether time will allow. So, as for the questions, I have also been frequently asked by other investors. And actually, sometimes it's difficult for me to convince them. And just now, Mr. Gui mentioned that for the ecosystem deployment of Geely, it has been most complete with -- compared with other competitors. For example, with the intelligence adoption like AI, we can see you have a lot of application. But as for the core axis like a robotaxi in terms of the operation, CaoCao Mobility has also been listed in the Hong Kong stock market. And as for the intelligent driving, we can see the core software is Qianli Technology, who plans to be listed in the Hong Kong stock market. So for the Big Geely or the 2030 strategy. So as for the 175, so we would like to understand its unique position because the people just pay attention to the closed loop. So would you elaborate a little bit?

Thank you for your question. And in the past few years, we can see investors also focus on this question. I would like to respond from the two perspectives. The first one is for the ecosystem building, the purpose is to deliver the best performance of the products from Geely. So best performance is the core of the products. And just now at the opening remarks, I mentioned that with the partnership with Qianli Technology, we can enable the intelligent driving or in the future, we may also reach at the FSD level parallel with Tesla. So without the partnership with Qianli Technology, we may not ensure that. So you can see that in the era of AI, we believe that -- we just need to professional. We just need to have a cooperation. We can never develop in silo. In particular, in the development area of AI, we can never just fight in silo. Rather, we just need to put the resources with other parties. We just need to use the strength of other parties, but we must also ensure our autonomy.

And first of all, we can see that in this whole process, we need to have the holistic planning. As an automaker, we need to have the strategic plan. For example, we work together with G-Pilot company, we have our unique strength. The partnership with the Qianli Technology is to ensure that we can deliver the very good performance of the product to ensure our competitiveness. So this is the purpose of the current stage.

So, as for the current stage, maybe later on, other speakers will also supplement. So at the very beginning, the Chairman mentioned that we just need to commit to the One Geely strategy or the focus. You should not doubt that. You also mentioned that maybe in the future, at some specific stage, we may also have different pivots. But now we just focus on the quality improvement and also make full use of the resources from the parent company without compromise the interest of the shareholders. So we would like to have a partnership to enhance our competitiveness in this way.

And moreover, as for the strength of technology, whether we should just come back to 175, I believe that still we need to have integration. We just need to believe in the potential of the partnership. I wonder whether I just will respond to your question. So you can see that Geely, just like what it did in the early stage when it made vehicles, first of all, partner with others. And then if it is profitable, you may have a different approach. I should say that as long as we understand the requirement of the shareholders, we just follow the requirement. But first of all, we need to have the condition. We need to have the strength and the foundation. So, first of all, Geely just need to sell the vehicles well and be the leader.

And the second question is related to the vehicle making. So for example, to be specific in 2026, first of all, Geely company focused on overseas market and also the export of the vehicles is very good. And Geely has also been most outstanding among the peers. the monthly support has surpassed 60,000 units monthly. And for the Galaxy, its sales volume surpassed the Geely brand. So for the performance in the past two months, regardless of the geopolitical risks, do you think that the goal for the 60,000 units is quite conservative. So would you also elaborate on the export targets?

And also, this year, we also witnessed the cutthroat competition within this industry. And last year, you also grabbed the market share from some leaders. And also, as for the competitors, they also face lift their products, they update their product. So what is your countermeasures? If you will not compete at the prices, how can we also ensure that we can increase the market share? And our competitors also mentioned their products, features like intelligent driving, et cetera. So it seems that we are doing the similar things. So how can your company stand out from the fierce competition? How can we just enhance our competitiveness in 2026 and also gain more market share?

So you have a lot of questions. So, for the export, just now, Mr. Gan has already mentioned that our target is 640,000 units and our internal target is 750,000. And I should say that this can just help us to boost the confidence. So if we can sell more, of course, we will just try our best. You can also see that every year, the target we set is quite conservative. Usually, we may just adjust the target in the midterm. So maybe for other quite complex questions, I will just leave them to other speakers.

You raised quite a few questions. I will just respond as follows. As for the intelligent driving, I may just add something. And as for the intelligent driving, I should say that the input will be high in the future. It is the similar case for all companies. If we just want to pursue the perfect of intelligent driving, the input must be high. And for example, the identification or the rules or other capabilities must also be enhanced. So we believe that for the autonomous driving, it must be supported or enhanced by the foundation model, the computing power, et cetera. So we just need to have a huge input to improve the algorithm to ensure a better performance of the intelligent driving.

So, as for the input, we can never just be completed by just one single company. Therefore, first of all, for a company, it must have the leading position in the technology in order to stand out. So input is inevitable. And then second, the company must also have the initiative and also have the autonomy. And then it can just continue to be the leader in the future if it can just stay competitive. And that's why we just have the partnership with Qianli Technology and Haohan. So we have a stock share of 62%. So what we are trying to do is to ensure the quality and also best performance of the product. And then we also focus on cost effectiveness. How can we ensure that the economies of scale can be one solution. Therefore, we need to build up the scale. And then we can just well dilute the total cost. Then we can just well accelerate the development of the autonomous driving.

The second question asked about overseas market. Just like Mr. Gui mentioned that actually in the January and also the February that we already made overseas a very -- we could see a very good rapid development. And so we think that actually, that's because we've already had a very good new energy vehicles market strategy deployed in 2024. And so we believe that in 2026 that the export of the EV its ratio will continue to increase. And for Geely, that we have already developed our products for previous years, and we've already fully implemented our strategy. And therefore, we can see that we are able to have a very good product export, and we will see a rapid growth in 2026. And so we focus on the ASEAN country and also the East Europe and also Latin America, Africa and also the Middle East, those are the very big market segments that we are targeting at.

We've already exported our products in recent months, especially our cooperation with Renault in Brazil, and we are able to expand the dealer channel very quickly. And so we are able to sell very quickly. And we also have the E-Max 45 and E-Max 47 that are one single vehicles that could be sold out very good, outperforming several other products of other brands. And for example, the Star Wish was the champion among all of those branded vehicles. So I think we have confidence in our product. So the future of overseas market is also in our product.

Another one you asked about overseas market, that would be the three key components, motor, battery and powertrains. And many of investors ask us, what is our competitive edge in the motor, battery, powertrains and what is the strategy of charging? And I have to say that actually Geely have invested heavily on motor battery powertrains. And so as earlier as in 2014 or in 2013, Geely has already started its investment in LFP batteries. So that's quite earlier.

And Geely, that actually have come up with the -- our short blade battery. The short blade battery has very good performance in terms of the battery energy consumption. And we also have the Shendun, which is the shield battery. So the charging will be 12C. And so that's leading the market. So from 10% to -- 10% of the charging to 80% of the charging only takes seven minutes. So it only takes seven minutes to charge a vehicle from 10% of the power to 80%. So calculated by the full charging, so it only takes nine minutes.

Another very important KPI that is safety. we developed standards to ensure the safety. So the battery energy density is the best. So that is the 179 kilowatt per kilo. And so when we look at about the charging rate, when the charge rate is high, then the energy density should be lower. However, in Geely's battery, you could look at those specific meters that our energy density is very good. So we could look at about the weight of the vehicles and because we all know that the weight of the vehicle itself that will have its impact on the inertia.

And in terms of charging, as earlier in 2021, we focus on about the megawatt fast charging. The first charging pile using the high-voltage megawatt charging pile was done by Geely. And now we also have the Haohan, which is a G-ASD system, and we will focus on the megawatt hour charging and also ZEEKR 001 is the renew battery. And in the future, it will be able to reach to 1,500 kilowatt hour. So technically, that Geely has invested heavily in those technology development.

And so for the 3C and 6C products will be applied in the 12 or 15 and automobile vehicles. And we also have the charging piles. We have like nearly 10,000 charging piles. And we also have we will have more than 50,000 charging piles. Those are the new charging piles will be installed to satisfy the demands of our drivers need to charge the vehicles.

Okay. So we move on the next question.

I'm from the First Finance. And so we can see the financial KPIs announced by the 0175 is very good, including the revenue and profit. I just checked the price of the 0175 that the pricing is around the 11. So I wonder what is your perspective on the market value of Geely? And is it underestimated?

Let me take this question. It's a sensitive question. In terms of compliance that executives cannot make comments on the share price. Okay. Let me take this perspective. 0175 used to be on a high peak. We used to have a glory pricing. And as I remember that in 2015, I was with Mr. An, that Mr. An focus on the new product R&D. And after the vehicle was launched, I remember the share price increased from HKD 2 to HKD 30 just in 18 months. So that's the faster check. That's the faster check that we've experienced. And since then, we've laid the foundation. So, the development is there.

I think the capital market is fair. And so I don't see there would be huge deviations, especially for Hong Kong is one of the world's largest financial center. So Hong Kong market is a mature capital market. But the thing is, I think people will have different views on the company that in different stages. Just like I said that in 175 that used to stood on the peak and also we had our glory. And at the beginning of 2016, that people hold the expectation on 175. However, I think the market has expectation on 175, but people are not very sure how fast will it go in terms of profit.

And nowadays, it's a different era. It's rather different from the times of the few vehicles. It's the time for the new energy and intelligent vehicles. And in Geely Automobile and people said that actually, we -- it tends to be rather conservative, just like Mr. Gan mentioned that we actually -- we had done a lot of things, but we just don't do the marketing better than other competitors. So I think people need to have a better understanding about the technology attributes of Geely Automobile. And I believe that once investors that come to know that we have invested so heavily on the scientific part and on those -- the high-tech components that people will truly understand Geely's essence. And at that time, I believe the market value will be changed.

So, I think today, the result announcement, we see the historic record high in terms of the scale and the profit. And so there will be no records that there will be new records that in the coming years. So I think for the company, the core is could you make a profitability. So I think we don't have concerns that much.

Any other questions? Hand up in the middle. Ladies first.

My name is Yuqian. I'm from the HSBC. I have two questions. And just like Mr. Gui mentioned that in your speech, you've made a new record high in terms of the attributable profit. And so I wonder what is the profit for a single vehicles? What is the profit percentage?

And second, that is our executive also mentioned about the product structure. And also, we see the scale of economies. And so when we look at those, the internal targets because it's ambitious. And so we also have cooperations with suppliers, and we also have technical development and which could absorb the increasing raw material cost. So how do you see about the profit room?

So I think I could take this question from a few perspectives, from the operations perspective. The first one that Geely has already formed a strategy. And so with the strategy of synergy and integration that we see that drastic decline of the expenses. As for example, when we see that in the first half year of 2025, that the administration expense was around 70% and the R&D, that would be 13.5%. And in the future, because of the synergy strategy that we believe that cost will be lower because we will have a higher efficiency. And the second, I think we need to look at about our BOM material with our BOM cost. And so the BOM cost is relying on the supply chain and including the design cost for technical. So, first of all, we should have leading technologies. The second, we should have the scale up, which is the scale of economy.

And so in terms of the scale, because in 2025, we already witnessed the increase in terms of volume. So we are able to have a better scale. So, in 2024, our sales volume, that's around 2.1 million. And in 2025, that would be 3 million. So that's sales volume that increased by 39%. So that means for supply chain, they also increased by 39% and those fixed costs will be allocated to different parts. And that means the average cost will be lower. So we could share the benefit, share the profit, but also lowered the cost. And all of those elements will be reflected in the vehicles' competitiveness. But it's difficult for me to give you a specific figure. But I should say that we just make our product mix towards the premium segment, for example, the 9X and also 8X, you can see that we just see the benefits of the economies of scale. So we talk about 9X, we talk about the margin. by around 40%. So, in the future, from the product development, I believe that the economies of scale and also the technologies are the most important elements.

And the second question, I would like to talk about the intelligent driving. You talk a lot. And we can also see that the company has already just worked on that. And now the efficiency has been enhanced because with the partnership of the technology. So in the era of AI, so we can see a lot of the competitors, they just focus on the GPU and also the cloud, they also step up the efforts for the R&D. So how can you just further enhance your moat. And in terms of the intelligent driving, so from '26, what will be the output?

Thank you for your question. This is a very good question. Just now, Madam [indiscernible] also asked a question. So for the intelligent driving, the input has also been trended a lot to the computing power. So, for example, the input for over 10,000 GPU, the input will be RMB 4 billion to RMB 5 billion. So now we also have the computing power alliance. So now we have already hit 23.5 flops, #1 in the market. So in the future, so with the enhancement of the AI, we will also expand the computing power continuously. First of all, for the whole vehicle development for the vertical models, Geely Automobile will also add on that. And as for the intelligent driving as well as the computing power for the foundation model will be supported by the Qianli Technology. So in this way, we can just foster the synergy and also enhance the capacity in this way.

And also the input for the computing power, we believe that we also need to calculate the input-output ratio because we understand in this field, we have a very long industrial chain. And we can also see if we can just have the synergy within the industry chain, then we can save a lot of cost. With the synergy, we can just improve the efficiency by 35% like we just input CNY 10 billion to CNY 20 billion, then every year, we may just save dozens of billions every year because of the synergy because it can just help us to lower the cost and also improve the efficiency. And moreover, we can just attract more talent. We just need to pull the top-notch talent who are savvy at AI, then they should be attracted to the automobile industry to give full play to their strength. So in the future, we would also have such measures. So with the maturity of the large models, we believe that the application will also be widespread in the application of automobile industries. So if we can just do well in the general purpose model as well as the vertical models, we will also have a lot of benefits, and we can also lower the cost, improve efficiency.

Thank you. Given time limits, we just allowed the last question.

So I'm from [indiscernible] news. So for the NEV, what is the target? And Mr. Gui also mentioned that we are #2 globally. So whether you also said the goal for #1 globally. So we also read the news that is Mr. [indiscernible] bought ZEEKR 009. This also caused our attention. So whether Madam Dong also enjoy some discounts. Can you also share some details with us about this anecdote?

So the column from CCTV just talked about this anecdote that is Madam Dong bought ZEEKR 009. So she said that this is very good. He just admired the effort made by Li Shu Fu, so the column just contact me in the new year, he said that Madam Dong would like to buy three vehicles. Then I just counter the colleague at ZEEKR. So after the two sections just concluded, so Chairman Li Shu Fu just held a vehicle delivery ceremony in Beijing and then the videos has been shared on the platform. And then other deputies also bought ZEEKR 009. So, altogether in total, 909 vehicles have been sold. And then some discount has been offered to her because that nine vehicles have been bought. And also Madam Dong really admired the efforts made by Mr. Li and also the efforts made to build the premium vehicles and also commit to the mission of building the high-quality and best performance vehicles and also work together for the globalization. So Madam Dong just focus on the Geely air conditioners and Geely just also build the best performance vehicles and also try to go global. So Madam Dong also emphasized quality. That's why she chose Geely vehicles. That's why we can see that they echo each other's idea. So we can see that 009 or X9 we -- 009 or 9X. So who bought these type of models, we can see that the drivers are savvy and also have a lot of experiences. They understand vehicles. So I would also like to thank Madam Dong.

And you also talked about the targets. I would like to share my view with you. First of all, last year, China's passenger vehicles was an increase of 2.9%. And as for NEV, the penetration rate is 54% with a volume of over 60 million. So this is a rapid growth, a high-quality development year for China. And for the whole year, we can see that the sales volume was quite high in the previous quarters. In the Q4, the growth rate was minus 7.3%. And we can also come to the conclusion that the competition is still fierce. So this is the market landscape.

And second, last year, in terms of the export, we can also see the highlight hitting 6 million and also a record high with a growth rate of 22%. So, in the future, the export of Chinese vehicles will also become the highlight. So, for Geely, next year's target, it is 3.45 million units. So as for ICE, China Stars, and I should say that the target is quite flat, about 1.2 million. As for Galaxy, 1.55 million units. And as for Lynk & Co and ZEEKR, 400,000 and also Lynk & Co 300,000. So you can see that our target is about 3.45 million units for 2026 in terms of export.

And as for the sales volume of Geely in 2025, we were #2 in the domestic market. And in 2026, domestically, we set the sales target to be #1 in China. As for overseas sales, we will also step up input and also benchmark against our Chinese automakers and also narrow down the gap. And I also say that the competition is a marathon for the automakers.

the figures are just a kind of reference rather, we should just commit to the values generated to our customers and also enable that our customers can have better experiences driven by the advancement of technologies. Therefore, we need to highlight the safety, quality as well as new technologies to our customers. We need to make the vehicle safer and the new technologies can also deliver better experiences to our customers.

Thank you. So our time is limited. We may just conclude here. But before that, we can see that we have already extended our time. And if you have any more questions, you are welcome to contact us. Just like Mr. Gan mentioned that we just focus on the long-termism. Time will test our products. And I believe that you can have full confidence in the Geely's development.

Thank you. So now we would like to conclude today's conference. Still, we can see maybe some questions haven't been responded, including the questions posted online. But we will also join the road show conferences by the investors, so you can also make the registration. And if you have any more questions, we are ready to respond then. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]