Geely Automobile Holdings Limited ($175)

[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.]