Group 1 - The core viewpoint of the article indicates that the performance of the Chinese automotive market in 2023 will exhibit a mixed trend reminiscent of both 2018 and 2025 [1] - The overall passenger car market growth has fallen into negative territory, similar to the situation in 2018, suggesting a potentially weak industry performance for the year [1] - Market fluctuations throughout the year may intensify due to new model releases, seasonal trends, and changes in profit expectations, akin to the dynamics observed in 2025 [1] Group 2 - The ability to achieve absolute or relative returns will depend on whether corporate earnings can exceed expectations, which is expected to be more challenging amid rising costs [1] - The preferred stocks identified by the bank are Geely Automobile (00175) and China National Heavy Duty Truck Group (03808) [1] - The bank also sees potential investment opportunities in BYD Company (01211), Leap Motor (09863), Xpeng Motors (09868), and NIO Inc. (09866) that may arise in March or the second quarter of this year [1] - Conversely, the rating for Ideal Automotive (02015) has been downgraded to "Reduce" [1]

Investment Rating - The report maintains a positive outlook on the automotive sector, highlighting the potential for growth driven by technological advancements and market dynamics [2]. Core Insights - The report emphasizes the importance of new vehicle announcements and the upcoming Q1-Q2 product cycles, particularly for companies like Li Auto, Xpeng, BYD, Great Wall Motors, and others, driven by enhanced product capabilities due to new technologies [2]. - Tesla's AI transformation is noted as a significant market expectation, with a focus on the valuation flexibility within the robotics supply chain [2]. - The report identifies smart technology as a key growth area for the year, with expectations for Full Self-Driving (FSD) technology to gain traction in China, benefiting companies like Desay SV, Jingwei Hirain, and others [2]. - Domestic cost pressures are acknowledged, leading to a cautious stance on annual profit forecasts, while overseas export opportunities for companies like BYD and Geely are viewed positively [2]. Industry Updates - According to the China Passenger Car Association, the average daily retail sales of passenger cars in the first week of January were 50,000 units, representing a 22% year-on-year decline and a 31% month-on-month decline [2]. - Recent weeks have seen a decrease in traditional and new energy raw material price indices, with traditional vehicle raw material prices down by 2.8% week-on-week and 1.0% month-on-month, and new energy vehicle raw material prices down by 6.7% week-on-week and 2.7% month-on-month [2]. - The total transaction value in the automotive sector for the week was 530.697 billion yuan, a 22.58% decrease from the previous week, while the automotive industry index rose by 0.32% [2][11]. Market Situation - The automotive industry index closed at 8023.01 points, outperforming the Shanghai Composite Index, which fell by 1.33% [11]. - A total of 141 automotive stocks rose, while 127 fell, with the largest gainers being Kailong High-Tech, Xingmin Zhitong, and Yinlun, which saw increases of 72.8%, 21.3%, and 17.1% respectively [16]. - Key events included the release of the 404th batch of new vehicle approvals by the Ministry of Industry and Information Technology, which included several notable models from various manufacturers [3][4]. Investment Analysis - The report suggests focusing on companies that are leveraging AI and smart technology, particularly new entrants like Xpeng and NIO, as well as established players with overseas business support like BYD and Geely [2]. - It highlights the potential for significant changes driven by state-owned enterprise reforms, with attention on SAIC and Dongfeng [2]. - In the components sector, companies involved in robotics and data center cooling are expected to transition from thematic investments to industry trends, with a focus on firms with strong performance and valuation potential [2].

Core Viewpoint - NIO Inc. is recalling 246,229 electric vehicles due to software issues that may cause temporary blackouts of the instrument panel and central control screen under specific conditions, posing safety risks [1] Group 1: Recall Details - The recall affects ES8, ES6, and EC6 models produced between March 16, 2018, and January 16, 2023 [1] - The recall plan has been filed with the State Administration for Market Regulation in accordance with the relevant regulations [1] Group 2: Safety Concerns - The software issue may prevent the display of critical vehicle information and functions, such as speed information and fault alerts, which could compromise safety [1] Group 3: Remedial Actions - NIO will utilize over-the-air (OTA) technology to upgrade the software for the recalled vehicles to versions Aspen 3.5.6, Alder 2.1.0, or higher at no cost [1] - For vehicles that cannot be upgraded via OTA, NIO will contact users through service centers to implement the recall [1] - Some vehicles that have already received software upgrades will not require further updates during this recall [1]

Summary of NIO Inc. (NIO) Conference Call Company Overview - **Company**: NIO Inc. (NIO) - **Industry**: Electric Vehicles (EV) Key Financial Highlights - **4Q25 Profit Alert**: NIO announced a non-GAAP operating profit between Rmb700 million and Rmb1,200 million, marking the first positive quarterly non-GAAP operating profit in the company's history [1] - **Sales Volume Growth**: Achieved 124,000 units sold in 4Q25, representing a 71% year-over-year increase [1] - **Product Mix Improvement**: The ES8 model contributed 32% to total sales in 4Q25, a significant increase from 2%-5% in the previous three quarters [1] - **Cost Reduction Efforts**: Ongoing initiatives have contributed to the positive operating profit [1] Future Outlook - **2026 Expectations**: Anticipated launches of ES9 and ONVO L80, along with a facelift of ES7, are expected to drive 46% volume growth and 48% revenue growth [2] - **Vehicle Margin Projection**: Expected to increase to 16.7% in 2026 from 14.5% in 2025 due to scale economics and cost optimization [2] - **Raw Material Price Concerns**: Recent increases in raw material prices (Lithium, Aluminum, Copper, and DRAM) may pressure margins, depending on cost-sharing with suppliers and the ability to pass costs to consumers [2] Investment Rating and Price Target - **Current Rating**: Neutral with a 12-month price target of $7.0 for ADR and HK$55.0 for H-share [3][6] - **Market Capitalization**: Approximately $10.8 billion [8] - **Revenue Forecast**: Projected revenues for 2026 are Rmb127.87 billion, with a gradual increase in subsequent years [8] Competitive Landscape - **Market Share Decline**: NIO's NEV market share has decreased from 3.9% in 2020 to 2.0% in 2024 due to intensified competition [4] - **Model Competitiveness**: Improved competitiveness expected with new model launches, similar to the success of L90 and ES8 [4] Risks and Considerations - **Key Risks**: Potential for stronger government support for the auto industry and better order momentum on the upside; conversely, risks include lower-than-expected sales volume and higher-than-expected price cuts on the downside [6][7] Additional Insights - **Cost Control Measures**: Management has focused on cost reduction since March 2025, contributing to the first positive operating profit in 4Q25 [4] - **Premium Valuation**: NIO is trading at a premium EV/Sales compared to peers, justified by its free cash flow turnaround and near-term product momentum [6] This summary encapsulates the critical financial metrics, future outlook, competitive positioning, and associated risks for NIO Inc. as discussed in the conference call.

Summary of NIO Inc. Conference Call Company Overview - **Company**: NIO Inc. - **Industry**: China Autos & Shared Mobility - **Date of Call**: February 5, 2026 Key Financial Highlights - NIO expects a GAAP net profit of **Rmb200-700 million** in 4Q, a significant improvement from a GAAP net loss of **Rmb3.7 billion** in 3Q25, exceeding market expectations and the company's target of non-GAAP profit breakeven in 4Q [2][3] - Non-GAAP net profit is projected to be between **Rmb0.7-1.2 billion** [2] - Vehicle margin is estimated to have grown by **4-6 percentage points** quarter-over-quarter (QoQ) to nearly **20%** [2] - R&D and SG&A expenses are expected to remain largely steady QoQ [2] Factors Contributing to Profit Turnaround 1. **Record Deliveries**: NIO achieved a record delivery of **125,000 units**, representing a **43% QoQ increase** [3] 2. **Sales Mix**: A strong sales mix with the ES8 model accounting for approximately **32%** of 4Q deliveries, which has a gross margin exceeding **20%** [3] 3. **Operational Efficiency**: Improved operational efficiency following restructuring efforts [3] Market Sentiment and Stock Performance - NIO's share price has decreased by **35%** over the past three months, contrasting with the Hang Seng Index's **4%** increase [4] - The potential for a share price recovery is linked to broader electric vehicle (EV) demand recovery in China [4] - Investors are advised to monitor announcements regarding new models (ES9, ES7, Onvo L80) post-Chinese New Year [4] Valuation and Price Target - **Rating**: Overweight (OW) - **Current Share Price**: **US$4.44** (as of February 4, 2026) - **Price Target**: **US$7.00**, indicating a potential upside of **58%** [4] Financial Projections - **Market Capitalization**: **Rmb148.9 billion** (estimated for 12/25) [4] - **Revenue Projections**: Expected to grow from **Rmb65.732 billion** in 2024 to **Rmb154.873 billion** by 2027 [4] - **EBITDA**: Projected to improve from a loss of **Rmb15.999 billion** in 2024 to a profit of **Rmb1.947 billion** in 2027 [4] Risks and Considerations - **Upside Risks**: Introduction of new models, stronger-than-expected sales volume, and better operational efficiency [10] - **Downside Risks**: Weaker-than-expected sales volume, lack of efficiency improvements, and moderating auto sales growth impacting industry valuations [10] Conclusion NIO Inc. is showing signs of recovery with a positive profit outlook for 4Q, driven by strong delivery numbers and improved operational efficiency. However, the stock has faced significant downward pressure, and future performance will depend on broader market conditions and the successful launch of new models. Investors should remain cautious but optimistic about potential growth in the EV sector in China.

Group 1 - The core viewpoint of the news is that the Hong Kong automotive stocks experienced a collective rise, driven by positive signals from the Ministry of Commerce regarding future automotive consumption policies [1] - The Ministry of Commerce held a meeting to discuss automotive circulation and consumption, indicating a commitment to support and reform the automotive sector by 2026 [1] - Analysts interpret the signals from the meeting as a positive indication for automotive consumption support policies, providing a clear expectation for industry stabilization and structural growth direction [1] Group 2 - BYD shares rose approximately 4% to a latest price of 96.950, while Chery Automobile increased by over 2% to 28.620 [2] - Other automotive companies also saw gains, including Li Auto (1.39% increase), Leap Motor (1.41% increase), NIO (1.29% increase), and Geely (1.15% increase) [2] - The overall positive trend in the automotive sector reflects investor confidence in the upcoming policy changes and market support initiatives [1][2]

责任编辑：王翔 召回原因是这部分车辆存在软件问题，可能在特定条件下出现短时间的仪表及中控屏黑屏，期间无法为 驾驶员提供必要的车辆信息及功能（如车速信息、故障报警提示、除霜除雾功能等），存在安全隐患。 召回原因是这部分车辆存在软件问题，可能在特定条件下出现短时间的仪表及中控屏黑屏，期间无法为 驾驶员提供必要的车辆信息及功能（如车速信息、故障报警提示、除霜除雾功能等），存在安全隐患。 蔚来将通过远程升级（OTA）技术，免费为召回范围内的车辆升级软件至Aspen 3.5.6、Alder 2.1.0或更 高版本，对于无法通过OTA技术升级的车辆，将通过蔚来服务中心联系相关用户实施召回，以消除安全 隐患。 据市场监管总局召回中心消息，日前，上海蔚来汽车有限公司根据《缺陷汽车产品召回管理条例》和 《缺陷汽车产品召回管理条例实施办法》的要求，受委托向国家市场监督管理总局备案了召回计划。 据市场监管总局召回中心消息，日前，上海蔚来汽车有限公司根据《缺陷汽车产品召回管理条例》和 《缺陷汽车产品召回管理条例实施办法》的要求，受委托向国家市场监督管理总局备案了召回计划。 本次召回涉及2018年3月16日至2023年1月16日期间生 ...

Group 1 - The core viewpoint of the news is that Hong Kong automotive stocks have collectively risen, with significant gains observed in companies like BYD, Chery, and others, following a meeting held by the Ministry of Commerce regarding automotive consumption policies for 2026 [1] - The Ministry of Commerce plans to implement a series of measures to boost automotive consumption, including optimizing the vehicle trade-in program and conducting pilot reforms in automotive circulation [1] - Analysts interpret the signals from the Ministry's meeting as positive, viewing it as a "starting gun" for supportive automotive consumption policies in 2026, which provides a clear expectation for industry support and structural growth direction [1] Group 2 - BYD shares rose approximately 4% to a latest price of 96.950, while Chery Automotive increased by over 2% to 28.620 [2] - Other automotive companies also saw gains, with Li Auto up 1.39%, Leap Motor up 1.41%, NIO up 1.29%, and Geely up 1.15% [2] - The overall positive sentiment in the automotive sector is reflected in the stock performance of various companies, indicating investor confidence in future growth driven by government policies [1][2]

【文/观察者网 潘昱辰 编辑/高莘】日前，上海蔚来汽车有限公司根据《缺陷汽车产品召回管理条例》和《缺陷汽车产品召回管理 条例实施办法》的要求，受委托向国家市场监督管理总局备案了召回计划。 召回编号S2026M0017I：自即日起，召回2018年3月16日至2023年1月16日期间生产的ES8、ES6和EC6纯电动汽车，共计246229 辆。 上海蔚来汽车有限公司将通过远程升级（OTA）技术，免费为召回范围内的车辆升级软件至Aspen 3.5.6、Alder 2.1.0或更高版本， 对于无法通过OTA技术升级的车辆，将通过蔚来服务中心联系相关用户实施召回，以消除安全隐患。因部分车辆之前已升级优化 后的软件，本次召回此部分车辆无需再次升级。 上海蔚来汽车有限公司将以手机APP、短信、电话等方式通知相关用户，安排召回事宜。用户可致电上海蔚来汽车有限公司客户 服务热线：400-999-6699，了解此次召回的详细信息。此外，也可登录市场监管总局召回中心网站www.samrdprc.org.cn，关注微信 公众号（SAMRDPRC），了解更多信息，反映缺陷线索。 本文系观察者网独家稿件，未经授权，不得转载。 蔚来召回超 ...

召回编号S2026M0017I：自即日起，召回2018年3月16日至2023年1月16日期间生产的ES8、ES6和EC6纯 电动汽车，共计246229辆。 上海蔚来汽车有限公司将通过远程升级（OTA）技术，免费为召回范围内的车辆升级软件至Aspen 3.5.6、Alder 2.1.0或更高版本，对于无法通过OTA技术升级的车辆，将通过蔚来服务中心联系相关用户 实施召回，以消除安全隐患。因部分车辆之前已升级优化后的软件，本次召回此部分车辆无需再次升 级。 国家市场监督管理总局网站2月9日发布上海蔚来汽车有限公司的汽车召回信息，共有246229辆纯电动汽 车被召回，部分车辆由于软件问题，可能在特定条件下出现短时间的仪表及中控屏黑屏。 上海蔚来汽车有限公司根据《缺陷汽车产品召回管理条例》和《缺陷汽车产品召回管理条例实施办法》 的要求，受委托向国家市场监督管理总局备案了召回计划。 本次召回范围内的部分车辆，由于软件问题，可能在特定条件下出现短时间的仪表及中控屏黑屏，期间 无法为驾驶员提供必要的车辆信息及功能（如车速信息、故障报警提示、除霜除雾功能等），存在安全 隐患。 ...