Core Viewpoint - The company reported 1Q25 performance in line with market expectations, with revenue of 12 billion and a Non-GAAP net loss of 6.28 billion, driven by seasonal factors and product iteration [1] Group 1: Financial Performance - 1Q25 revenue reached 12 billion, with a Non-GAAP net loss of 6.28 billion, aligning with market expectations [1] - Vehicle deliveries in 1Q25 totaled 42,094 units, showing a sequential decline [1] - The automotive gross margin decreased to 10.2%, but the company aims for some models to exceed a gross margin of 20% through pricing stability and cost reductions [1] Group 2: Future Outlook - The company plans to deliver 72,000 to 75,000 vehicles in 2Q25, with several new models expected to contribute to growth in 2025 [1] - The company initiated internal CBU reforms to enhance operational efficiency, with expected improvements in expense ratios starting from 2Q [2] - The target for R&D expenses in 2Q is to achieve a 15% efficiency improvement, aiming to control quarterly R&D expenses between 2 to 2.5 billion [2] Group 3: Product Development - The first version of the NWM (NIO World Model) was launched on May 30, focusing on safety and enhancing user experience across various driving scenarios [3] - The company has ensured that its smart driving technology can be updated and iterated, providing existing vehicle owners access to the latest advancements [3] Group 4: Valuation and Market Position - The current valuation for US and Hong Kong stocks corresponds to a 0.6x P/S for 2025, with a maintained outperform rating for 2025-26 Non-GAAP net profit [3] - Target prices for Hong Kong and US stocks have been reduced by 15% to 41 HKD and 5.3 USD, respectively, indicating potential upside of 47% and 41% from current prices [3]