STATE OWNED ENTERPRISES AND AUTOMOBILE COMPANIES HAVE SUCCESSIVELY ENTERED THE MARKET, AND NIO'S "MOAT" HAS BECOME A "MOAT"NIO'S BATTERY SWAPPING DEVELOPMENT HAS RECEIVED SEVERAL HEAVYWEIGHT GOOD NEWS.AFTER ESTABLISHING BATTERY SWAPPING PARTNERSHIPS WITH CHANGAN AND GEELY, JIANGHUAI AND CHERY ALSO JOINED THE NIO BATTERY SWAP ALLIANCE.ON JANUARY 11TH, JIANGHUAI, CHERY, AND NIO SIGNED A STRATEGIC COOPERATION FRAMEWORK AGREEMENT FOR BATTERY SWAPPING. THE TWO SIDES WILL CARRY OUT COMPREHENSIVE AND MULTI-LEVEL DEEP STRATEGIC COOPERATION IN BATTERY STANDARDS, SWAPPING TECHNOLOGY, SWAPPING SERVICE NETWORK CONSTRUCTION AND OPERATION.IN ADDITION TO JOINING ITS PEERS, NIO HAS ALSO RECEIVED FUNDING FROM STATE-OWNED ASSETS TO JOINTLY BUILD ENERGY REPLENISHMENT SERVICE FACILITIES.ON THE SAME DAY, ANHUI ENERGY GROUP CO., LTD., ANHUI TRANSPORTATION HOLDINGS GROUP CO., LTD., AND NIO SIGNED A STRATEGIC COOPERATION AGREEMENT ON JOINTLY PROMOTING THE CONSTRUCTION OF AN OPEN AND SHARED STORAGE, CHARGING, AND SWAPPING SYSTEM.AT THE EVENT SITE, ZHONG'AN ENERGY (ANHUI) CO., LTD. (HEREINAFTER REFERRED TO AS "ZHONG'AN ENERGY") WAS OFFICIALLY ESTABLISHED. WITH STRONG SUPPORT FROM THE ANHUI PROVINCIAL PARTY COMMITTEE AND GOVERNMENT, ZHONG'AN ENERGY WILL ORDERLY PROMOTE THE CONSTRUCTION OF 1000 INTEGRATED STORAGE, CHARGING, AND SWAPPING POWER STATIONS.TODAY (JANUARY 11TH) IS A NEW IMPORTANT MILESTONE FOR NIO'S CHARGING AND SWAPPING BUSINESS, "NIO FOUNDER, CHAIRMAN, AND CEO LI BIN TOLD REPORTERS ON THE DAY OF THE SIGNING.AT PRESENT, NIO'S BATTERY SWAPPING BUSINESS IS AT THE FOREFRONT OF DEVELOPMENT. IN 2023, NIO COMPLETED THE TASK OF CONSTRUCTING 1000 BATTERY SWAPPING STATIONS, BUILDING 1035 NEW STATIONS AND LAYING OUT 1322 CHARGING STATIONS. AS OF JANUARY 11, 2024, NIO HAS DEPLOYED A TOTAL OF 2369 BATTERY SWAPPING STATIONS WORLDWIDE, OF WHICH 752 ARE HIGHWAY SWAPPING STATIONS.THE ULTIMATE GOAL OF NIO'S BATTERY SWAPPING IS TO OPEN UP TO THE OUTSIDE WORLD, "LI BIN ONCE PUBLICLY STATED. IN THE PROCESS OF OPEN AND COLLABORATIVE DEVELOPMENT, THE "BATTERY SWAPPING ALLIANCE" CENTERED ON NIO CONTINUES TO EXPAND. NOWADAYS, FORCES FROM STATE-OWNED ASSETS, ELECTRICITY, AND TRANSPORTATION INDUSTRIES ARE ENTERING THE MARKET, AND MORE AND MORE INDUSTRY PARTNERS ARE JOINING, INDICATING THAT NIO'S BATTERY SWAPPING BUSINESS HAS BEEN UNDERSTOOD AND VIEWED WITH CONFIDENCE.OTHER ENTERPRISES OR INSTITUTIONS CAN ALSO CHOOSE TO JOIN THROUGH COOPERATION, INVESTMENT, AND OTHER MEANS IN THE FUTURE. THIS MEANS THAT THE NEXT OPERATIONAL MODEL CAN EFFECTIVELY DILUTE THE OPERATING COSTS OF THE BATTERY SWAPPING STATION, AND NIO'S BATTERY SWAPPING BUSINESS IS EXPECTED TO BE PROFITABLE.OF COURSE, FOR THE MAJORITY OF ELECTRIC VEHICLE OWNERS, THE EXPANSION OF NIO'S BATTERY SWAPPING ALLIANCE, ACCELERATED CONSTRUCTION OF BATTERY SWAPPING STATIONS, AND OPEN COOPERATION OF BATTERY SWAPPING STATION MODELS WILL GREATLY ENHANCE THEIR ENERGY REPLENISHMENT EXPERIENCE.ACCORDING TO NIO'S PLAN, AN ADDITIONAL 1000 BATTERY SWAPPING STATIONS AND 20000 CHARGING PILES WILL BE BUILT BY 2024. COMBINED WITH THE CONSTRUCTION OF 1000 INTEGRATED STORAGE, CHARGING, AND SWAPPING STATIONS BY ZHONG'AN ENERGY, NIO USERS WILL HAVE A "MORE CONVENIENT CHARGING EXPERIENCE THAN REFUELING" IN URBAN AREAS AND HIGHWAYS, MAKING "SWAPPING LIKE BORROWING A POWER BANK" NO LONGER A JOKE.IN FACT, THE NATIONAL LEVEL HAS ALREADY STRONGLY SUPPORTED THE DEVELOPMENT OF BATTERY SWAPPING BUSINESS.SINCE 2020, THE MINISTRY OF INDUSTRY AND INFORMATION TECHNOLOGY HAS CLEARLY EXPRESSED SUPPORT FOR THE DEVELOPMENT OF BATTERY SWAPPING MODELS. THE "DEVELOPMENT PLAN FOR NEW ENERGY VEHICLE INDUSTRY (2021-2035)" ISSUED BY THE GENERAL OFFICE OF THE STATE COUNCIL POINTS OUT THAT CHINA'S NEW ENERGY VEHICLE INDUSTRY HAS ACHIEVED GREAT SUCCESS, BUT CURRENTLY FACES OBJECTIVE PROBLEMS SUCH AS "LAGGING INFRASTRUCTURE CONSTRUCTION AND WEAK CORE TECHNOLOGY INNOVATION CAPABILITIES". "VIGOROUSLY PROMOTING THE CONSTRUCTION OF CHARGING AND SWAPPING NETWORKS" AND "BUILDING AN EFFICIENT RECYCLING SYSTEM FOR POWER BATTERIES" ARE IMPORTANT TASKS FOR THE NEXT 15 YEARS.FOCUSING ON ANHUI, ACCORDING TO STATISTICS, AS OF JANUARY 11, 2024, NIO HAS CUMULATIVELY DEPLOYED 626 CHARGING STATIONS, 25000+THIRD-PARTY CHARGING STATIONS, AND 100 BATTERY SWAPPING STATIONS IN ANHUI, INCLUDING 49 HIGH-SPEED STATIONS.THE ESTABLISHMENT OF ZHONG'AN ENERGY AND THE CONSTRUCTION OF 1000 INTEGRATED STORAGE, CHARGING, AND SWAPPING STATIONS ARE UNDOUBTEDLY A SHOT IN THE ARM FOR THE ENTIRE ANHUI PROVINCE TO VIGOROUSLY LAYOUT THE NEW ENERGY MARKET. WE EXPECT THAT ANHUI MAY BECOME THE MOST FRIENDLY MARKET FOR NEW ENERGY VEHICLES AND PROVIDE REFERENCE CASES FOR THE CONSTRUCTION OF THE NATIONAL NEW ENERGY VEHICLE INDUSTRY.BATTERY SWAPPING IS NOT A BURDEN FOR NIO, IT IS NIO'S MOAT, "LI BIN ONCE SAID. FROM CROSS INDUSTRY COOPERATION, TO THE JOINING OF INDUSTRY PARTNERS, AND TO STATE-OWNED INVESTMENT IN THE CONSTRUCTION OF BATTERY SWAPPING STATIONS, NIO'S BATTERY SWAPPING STATIONS ARE NO LONGER A "MOAT", BUT A "MOAT".THE CHINA ASSOCIATION OF AUTOMOBILE MANUFACTURERS PREDICTS IN THE "2024 OVERALL FORECAST REPORT OF CHINA'S AUTOMOBILE MARKET" THAT THE SALES VOLUME OF NEW ENERGY VEHICLES IN CHINA WILL BE AROUND 11.5 MILLION UNITS IN 2024, A YEAR-ON-YEAR INCREASE OF 20%.2024 AND 2025 WILL BE TWO YEARS OF EXPLOSIVE GROWTH IN THE HIGH-END PURE ELECTRIC MARKET. COMPETITION WILL BECOME EVEN MORE INTENSE NEXT YEAR, "PREDICTED LI BIN.WITH MORE PARTNERS JOINING THE BATTERY SWAPPING ALLIANCE AND RECEIVING MULTIPLE POSITIVE NEWS SUCH AS STRATEGIC INVESTMENT FROM ABU DHABI, NIO, WHICH HOLDS SUFFICIENT CASH RESERVES, HAS ENOUGH CONFIDENCE TO HAVE THE OPPORTUNITY TO PERFORM WELL IN THE 2025 NEW ENERGY VEHICLE FINALS.