It gives me great pleasure to join you all once again at the World Power Battery Conference in Yibin, the city of EV battery. Today, I would like to present the topic "From 'Adequacy' to 'Excellence': Propelling High-Quality Development of the EV Battery Industry". 

So what exactly does this transition from "adequacy" to "excellence" mean? 

In the first place, it signifies a remarkable shift in the EV battery industry from a state of struggling for "adequacy" to a state of striving for "excellence". This shift includes ongoing optimization of industrial distribution, a more reasonable structure, and continuous endeavors for transformation and upgrading. 

Additionally, for enterprises, it means the progress they have made from having the basic ability to produce EV batteries to providing higher-quality products and services in a more responsible and innovative manner; 

Lastly, it allows all electric vehicle users to enjoy better products and services instead of simply fulfilling their basic demands for driving. 

Of course, from a macro-level perspective, the high-quality development of the EV battery industry could not be achieved without steady growth, balanced development, environmental sustainability, and social equity. 

In spite of the recurring Covid-19 pandemic and supply chain challenges over the past year, the world still holds unwavering commitment to green development. The total installed capacity of EV batteries reached 517.9 GWh globally in 2022, a year-on-year increase of 71.8%. This notable growth signifies an accelerated scaling up of the new energy industry. As a crucial component in achieving the goals of carbon peaking and carbon neutrality, EV batteries are emerging as a “cornerstone” in the replacement of old growth drivers with new ones and the recovery of automotive consumption. 

The past year has witnessed a notable acceleration in the global efforts towards carbon neutrality. The EU has remained steadfast in its pursuit of carbon tariffs; the U.S. has made a resolute pledge to invest 369 billion U.S. dollars in bolstering energy security and reducing carbon emissions over the next decade; China's nine ministries have jointly released a scientific roadmap for achieving the goals of carbon emission peaking and carbon neutrality. In the coming five to ten years, the global pursuit of carbon and emission reduction will encounter a critical phase and a window of opportunity, imposing greater demands on the EV battery industry in terms of delivery efficiency and quality. 

From an industry standpoint, BNEF (Bloomberg New Energy Finance) predicts that the market demand for EV batteries will reach 4.8 TWh by 2030. Additionally, as predicted by GGLB, the energy storage market will exceed 1 TWh in demand by the same year. It is evident that the era of TWh is upon us. Moreover, there is a noticeable trend of increasing global competition in the EV battery sector among enterprises. Also, the evolving market applications across different scenarios are placing higher requirements on battery performance. Moreover, there are multiple areas where the business models related to batteries have yet to reach full maturity. All this has raised a crucial question for us: while we have already demonstrated our ability to meet market demands, how can we take the lead in meeting evolving market demands in the future? How can we move from "adequacy" to "excellence" to propel the industry to leap towards a new stage of high-quality development? 

How can we move from "adequacy" to "excellence"? 

First and foremost, "technological innovation" is the "strong driving force" behind high-quality development.

Innovation lies at the heart of CATL's core competitiveness. As early as 2020, we established four innovation systems centered around three strategic development directions. Through continuous innovation in material and electrochemistry system, structure system, extreme manufacturing, and business model, CATL continues to make remarkable breakthroughs in areas such as battery safety, energy density, fast charging, cycle life, and temperature resistance. These improvements set higher standards and drive us to seek power from innovation. 

For example, our condensed batteries not only feature high energy density and high level of safety at the same time but also can be put into mass production in a short period of time. In extreme manufacturing innovation, CATL boasts the only two Lighthouse factories in the battery industry globally. We have achieved an exceptional defect rate of PPB, which is one part per billion, for our products. Our eighth generation super-intelligent manufacturing line PSL (Prismatic Super Line) has not only ensured PPB-level quality but also delivered remarkable improvements in efficiency with a 70% reduction in workforce and a 300% increase in speed. 

In terms of business model innovation, EVOGO, our battery swap service brand, has been put into service in cities such as Xiamen, Fuzhou, Hefei, and Guiyang, offering users the modular battery swap solution. We are also actively promoting our battery swap service for heavy-duty trucks by investing in the construction and operation of electric heavy-duty truck battery swap stations. This initiative aims to address the concerns of "range anxiety" and "refueling anxiety" for new energy heavy-duty truck drivers. 

Second, "green development" is the "underlying framework" and "solid foundation" for achieving high-quality development. 

High-quality development goes hand in hand with green development. The commitment of CATL to achieving zero carbon goals embodies our sense of responsibility, capability, and the opportunities that lie ahead. In April of this year, we unveiled our carbon neutrality plan: we aim to achieve carbon neutrality in our core operations by 2025 and across the value chain by 2035. To systematically reduce carbon emissions, we have also implemented a range of Industry 4.0 tools in our production processes. Last year, we launched the "CREDIT" value chain sustainable transparency audit program, the industry's first audit toolkit for the lithium-ion battery supply chain. Through the program, we share with our industry partners our experiences to help them find a pathway for sustainable development. CATL hopes that more partners will collaborate with us in our effort to achieve efficient resource utilization and minimize environmental impact across the supply chain. Furthermore, it is worth noting that we have made significant breakthrough in energy storage while pursuing our zero carbon goals. At the end of May, we have just released the world's first solar-plus-storage integrated solution with zero auxiliary power supply. Unlike conventional energy storage solutions, our trailblazing solution gets rid of the dependence on cooling system and auxiliary power supplies. It delivers comprehensive improvements in operational efficiency, responsiveness, service life, durability, and safety of energy storage systems, bringing about substantial ecological and economic benefits. CATL aspires to lead the global efforts for carbon neutrality to drive the entire new energy industry towards a zero-carbon transformation. 

Last but not the least, equal access to technology is the ultimate goal of high-quality development. 

Technological innovation paves the way for achieving high-quality industrial development, while pursuing equal access to technology remains our ultimate goal. 

At CATL, our vision extends beyond making batteries accessible to all; we strive to ensure that everyone can access high-quality batteries. Technological innovation is always scarce in the early stage. Its purpose, however, is never to widen the global gap. Instead, technological innovation aims to foster widespread and equal access to technology. CATL aspires to "provide the world with the most advanced batteries" that are accessible to every consumer. Our goal is to achieve "shared benefits" and ensure that the fruits of high-quality development are enjoyed by all. Through technological innovation, we overcome technical barriers, and by pursuing equal access to technology, we promote the sharing of value. This is also the ultimate goal of high-quality development of the industry.

"Enchanting landscapes allure distinguished guests; where brothers meet, their souls content and at rest." This poem by Xu Rui, a poet of the Song Dynasty, holds relevance even today though it may not be directly related to Yibin. It conveys the essence of the EV battery industry's future, which is brimming with limitless possibilities. However, translating these possibilities into tangible achievements, akin to breathtaking landscapes, requires collective effort rather than individual endeavors. Guided by our original aspiration of technological innovation and making technology accessible for everyone, we look forward to joining hands more partners in promoting the industry’s high-quality development.

Together, we start from green development, thrive through continuous innovation, and achieve fruits with win-win collaboration. Let us encourage each other in our endeavors!