Yesterday, NIO unveiled its financial performance for the second quarter of 2026. During the earnings conference call, CFO Qu Yu disclosed that since March of this year, the unit cost in the second quarter has surged by roughly RMB 14,000 compared to the end of the previous year. An additional increase of RMB 2,000-3,000 is anticipated for the latter half of the year, culminating in a total cost hike of RMB 16,000-17,000. This cost escalation is primarily attributable to the soaring prices of automotive-grade memory chips, battery raw materials (such as lithium), and commodities (including copper and aluminum). NIO's total revenue for the second quarter soared to RMB 32.14 billion, reflecting a year-on-year surge of 69.1%. The overall gross margin stood at 18.4%, with a vehicle gross margin of 18.5% and an operating profit of RMB 210 million, marking the third successive quarter of profitable operations. The company intends to sustain unit gross margins in the third and fourth quarters at levels akin to those of the second quarter, tackling cost pressures through supply chain negotiations and product mix optimization, rather than resorting to mere price reductions to spur sales volume. Li Bin voiced confidence in the swift expansion of total gross profit, setting a delivery target of 108,000-111,000 units for the third quarter and aiming to stabilize monthly deliveries at over 40,000 units in the fourth quarter. NIO's average transaction price in the Chinese market during the second quarter reached RMB 406,000, ranking it first among mainstream premium brands, and further escalating to over RMB 430,000 in July.