Q4 2024 Lotus Technology Inc Earnings Call
Operator: Thank you for standing by and welcome to the Lotus Technology Inc. fourth quarter and full year 2024 earnings conference call. All participants are in a listen-only mode.
Thank you for standing by and welcome to the latest Technology, Inc. Fourth quarter and full year 2020 full earnings conference call.
Operator: There will be a presentation followed by a question and answer session. If you wish to ask a question you will need to press the star key followed by the number one on your telephone keypad.
There will be a presentation, followed by a question and answer session.
If you wish to ask a question you will need to press the stock equal it by the number one on your telephone keypad.
Demi Zhang: I would now like to hand the conference over to Ms Demi Zhang, Head of IR. Please go ahead. Thank you, Dorothy.
I'd now like to hand, the conference over to Mr. Michel <unk> head of IR. Please go ahead.
Michel: Thank you Dorothy good morning, good afternoon, and good evening everyone.
Demi Zhang: Good morning, good afternoon, and good evening, everyone. Thank you for joining Lotus Tech's the fourth quarter and the whole year 2024 in this call. This is Demi Zhang, the head of Lotus Tech. I'm very honored to introduce company management with us today, CEO Qingfeng Feng and the CFO Dashie Wang.
Joe: Thank you for joining Lotus taxes, both floater and Mir 2024 earnings call. This isn't gummy, Joe I'm, the head of IR of Lotus back I'm very honored to introduce something management with US today, the <unk> people and the CFO, Josh Yeah well.
Demi Zhang: On today's call, we'll start with the prepared remarks from the CFO and the CEO first, and then kick off the Q&A session.
Speaker Change: On today's call will start with prepared remarks from Seattle and to see your first and then kick off the Q&A session. Before we continue please be reminded that today's discussion will contain forward looking statements pursuant to the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 90 95.
Demi Zhang: Before we continue, please be reminded that today's discussion will contain forward-looking statements pursuant to the safe harbor provisions of the US Private Securities and Litigation Reform Act of 1995, and forward-looking statements involving inherent risks and uncertainties. As such, the company's actual results may be material and different from the view expressed today. The further information regarding risks and uncertainties is included in relevant filings of Lotus Tech with the US Securities and Exchange Commission. The company undertakes no obligation to update any forward-looking statements except as required under applicable law.
Joe: Forward looking statements involve inherent risks and uncertainties and.
Joe: The companys actual results may be materially different from the view expressed today further information regarding risks and uncertainties is included enrolling followings uploads attack, whether you our securities and Exchange Commission. The company undertakes no obligation to update any forward looking statements, except as required under applicable law.
Demi Zhang: Please also note that our earnings press release and this conference call will include disclosure of non-objective gap financial information, as well as unobjective non-gap financial measures. Please refer to our press release, which contains a reconciliation of unobjective non-gap measures to comparable gap measures, which you can find at ir.groups.lotus.com.
Joe: Please also note that our earnings press release and this conference call will include disclosure of non audited GAAP financial information as well as on the law.
Joe: non-GAAP financial measures. Please refer to our press release, which contains a reconciliation of.
Joe: non-GAAP measures to comparable GAAP measures once you combine and I arent right.
Joe: <unk> dot com with that I'd like to turn the call over two hours Schaffel, Mr. Wahl Sweet alright, Thank you Hello English.
Asher Wang: With that, I'd like to turn the call over to our CFO, Mr. Wang, please. Thank you. Hello, distinguished shareholders, analysts, and members of the press. Thank you very much for joining our Q4 and full year 2024 Learners Relief. My name is Asher Wang, Chief Financial Officer of Lotus. I would like to take this opportunity to brief you the financial results of the company. In 2024, the company delivered over 12,000 vehicles, reflecting a year-on-year increase of over 70%. For the fourth quarter, over 4,500 vehicles were delivered, representing a 20% year-on-year increase. We consider this as a remarkable growth, considering the global trade uncertainties and economic slowdown.
Speaker Change: English is shareholders analysts and remember also the price.
Speaker Change: Thank you very much for joining our Q4 and full year 2010 before the earnings release.
My name is Pasha Wong Chief Financial Officer of Lotus I would like to take this opportunity to review the financial results of the company.
Speaker Change: And so anytime before the company DNA were over 12000 vehicles, reflecting a yearly increase of over 70%.
Speaker Change: Last quarter.
Speaker Change: But countries vehicles, what belabored, representing a 28% you already increased.
Speaker Change: Okay.
Speaker Change: Marketable rule because they are already in the global trade and.
Speaker Change: On the economic slowdown.
Asher Wang: As for the revenue, although the fourth quarter result was narrowed by 12% year-on-year to 272 million U.S. dollars, the company gained an increase of 36% year-on-year increase to 924 million U.S. dollars over the full year.
Speaker Change: At father, Iridium, although the fourth quarter results matter or by 12%.
Speaker Change: Two a $272 million a covenant in the increase of 36% increase to like 124 meetings you asked all of our the full year.
Asher Wang: Another achievement we want to highlight is we have achieved a reduction in operation expenses for five quarters in a row. The rigid execution of efficiency enhancement plans.
Speaker Change: Another achievement to highlight as well.
Speaker Change: How 'bout Schuman of Rituxan your operation.
Speaker Change: Expenses for five quarters in a row.
Speaker Change: Good execution.
Speaker Change: Efficiency enhancement plans.
Asher Wang: Now I would like to further break down our sales by category and by region. It turns out that the lifestyle vehicles increased by 57% year-on-year and accounted for 57% of the total deliveries as well. A region, Europe, the home of Lotus brand, continued to expand with a year-on-year increase of some 180% and contributed nearly 40% of the total deliveries. China and the second largest market, Lotus, contributed one quarter of the total delivery. North America, mainly the United States, surged by 415% in 2024, making up 21% of the company's total delivery. and the rest of the world's regions represented 15% of the total, with nearly 90% of young-year growth.
Speaker Change: No.
Speaker Change: I would like to further break down our sales by category and by region.
Speaker Change: Again, it's all about.
Speaker Change: The lifestyle vehicles increased by 55% year on year and accounted for 55% of the total deliveries as well.
Speaker Change: <unk> Europe, the home off lot of brand continued to expand waiver increase up from 180% and contributed nearly 40 per socket with a total deliveries China.
Speaker Change: Second largest market volatility contributed about a quarter of the total deliveries.
Martin: Also Martin.
Martin: It would be a lot of states should buy 415 per sub in 'twenty before making up 21% on top of the company's total deliveries.
Martin: And the rest of the World region represented 13% of the total.
Martin: With nearly 90% of younger girls.
Asher Wang: For your attention, in the fourth quarter, we started to deliver EMEA in Malaysia, Thailand, Singapore, UAE, and the Philippines. are the key financial indicators. Deliveries and revenues have been reported. I will not repeat here. The cost of revenues increased to $895 million and $301 million for the full year and for the fourth quarter, respectively. As a result, the gross profit margin was lower to 3% for the full year and back to 11% for the fourth quarter. We reported an operating loss of $736 million for the year and $189 million for the fourth quarter. That loss was accrued to $1,107 million for the full year and $441 million for the fourth quarter.
Martin: In the fourth quarter, we started to deliver.
Martin: In Malaysia, Thailand, Singapore and Australia.
Martin: For the key financial indicators.
Martin: Deliveries and revenue have been reported we allow the repeat here.
Martin: Our cost of revenues increased to $895 million as to how do I know what medium horsepower for the full year and for the horse called her respectively. As a result, the gross profit margin was lower to 3% for the full year and back to 11% at fourth quarter.
Martin: We reported an operating loss of $586 million for the year at a $189 million for the fourth quarter <unk>, while accrued to.
Martin: And I'm 100 out of $7 million for the full year and 441 million for the fourth quarter for your information I got from that loss data under the Logcap matters will not much different.
Asher Wang: For your information, I just met Lotus. I just did it under the non-gap measures without much to differ.
Feng Qingfeng: Then, I will stop here and hand over the speaker to Mr. Feng. Hello, everyone. I'm Feng Qingfeng, CEO of Lotus Tech. I'm here to tell you about my 20 years of experience. Hello everyone, I'm the CEO of Lotus Tech, Feng Qingfeng.
Our first stop here and hand over to Mr Hall.
Martin: So the whole list.
Speaker Change: <unk> from Stifel. Your line is that the blue bars are inland.
Martin: Uh huh.
Martin: And the <unk>.
Speaker Change: Hello, everyone and CEO Sac Chintung allow me to share with our key achievements in the year 2024.
Feng Qingfeng: Allow me to share our key achievements in the year of 2024. In 2024, our overall performance was superior to the overall growth of the luxury car market, which ranked first in British luxury car brands. In 2014, the number of transactions exceeded 12,000 and increased by 74% in the second and third years. Our performance overall is better than the broad luxury market. We have ranked the top among British luxury car brands with over 12,000 vehicles delivered in 2024, a 74% better compared with our performance in 2023. At present, we have four models, one SUV, one sedan, one sports car, two sports cars, including our Imera and the super sports car Ibaya.
Martin: Suddenly astra's general momentum.
Sure.
Martin: Obviously the whole posture.
Martin: Yes.
Martin: Yeah.
Martin: Sidoti bedroom.
Martin: Yeah.
Martin: And then Joe.
Martin: You are right now.
Martin: Yes.
Martin: QC.
Martin: Our performance overall, it's better than that.
Martin: So luxury markets.
Martin: Ranks the top among British luxury car brands.
12000 vehicles delivered in 2020 for a 74% compatible with our performance in 2023.
Martin: Once I saw that you took on too.
Martin: Hershey.
Martin: If you could tell true Eagle.
Martin: I'm Paul Choi.
Martin: And then meera towards you portrayed by yeah.
Feng Qingfeng: Currently, we have four models under delivery. We have one SUV, one sedan, or rather GT, and two sports cars, including a Mira and also E-Line. We continue to follow the direction of global internationalization. This year, we entered the new market of Taiwan, Asia, Asia-Pacific, and Asia-Pacific, more than 10 countries. Last year, we keep exploring our international footprint. We have entered into more than 10 countries in GCC region, Asia and Oceania. In addition to that, we have also been keeping cost reduction and also efficiency improvement. We have been achieving operating expense reduction for five consecutive quarters.
Martin: Currently we have four models under delivery mask, one SUV, one for Dan rather GT and two sportscar, including in mirror and also <unk>.
Martin: One of them on tissue convergence Chenzhou wenzhou farther to go.
Martin: Yeah.
Jan.
Martin: Jan.
Martin: Hello.
Martin: Yeah, So yeah Pat.
Martin: So she goes Borgata Ashish.
Martin: The past year, we keep exploring our international footprint.
Martin: But entered into more than 10 countries.
Speaker Change: <unk> Asia.
Martin: Asia and Oceania.
Martin: Thank you.
Martin: Sure.
Martin: She memorial Cleveland, which is more fruitful.
Martin: In addition to that we have also been keeping cost reduction and also efficiency improvement and we've been achieving operating expense reduction for five consecutive quarters.
Sure.
Martin: The opinions for US you know what.
Martin: So is there any particular museum attendance.
Martin: And the question is Hello tuition.
Martin: For me it soon.
Martin: Hum towards it.
Martin: Uh huh.
Feng Qingfeng: Besides, we have also launched our Theory One concept car. This is a revolutionary concept car made with sustainable materials to redefine luxury. And we have gained a wide recognition from our press friends. This car defines a new design language for our future vehicles and a new definition of sustainable materials. For this particular vehicle, it has defined our direction for our future models, particularly on its design language and also its sustainable principles. ESG has made a lot of progress and good reviews. It has won the 24-year Lotus Tech Sustainable Development Award, the High-Level Promotion Award, the 24-year China-EU Chamber of Commerce Sustainable Business Award, the 20-year China-EU Sustainable Development Award, and the Sustainable Power Supply Chain Management Act.
Martin: Besides we have also launched our CRB one concept to call. This is a revolutionary concept to come later with a sustainable materials to redefine luxury and we have gained wide recognition.
Martin: <unk>.
Martin: <unk> seen the Sochi.
Martin: Ooh Ooh.
Martin: Hello, Frank.
Martin: We've seen that the.
Martin: So this particular vehicle it has defined our interaction or a future models, particularly on its design language and also it's a sustainable principles.
Giovanni: But yes Giovanni.
Giovanni: Ginger will help you all are seeing Amazon sure Chris.
Giovanni: You bought back some of your past.
Speaker Change: Goldman Sachs.
Speaker Change: I'll ask Ian to almost strongly because you're talking about down two times Andre Josh Young <unk> tissue.
Speaker Change: Yeah Amit.
Feng Qingfeng: All of these are included in the report of the Shanghai Climate Anniversary, which will be published at the 29th UN Climate Change Conference. As for our progress on ESG, we were honoured as highly commended at Ruta's Sustainability Award 2024, leading the EV industry within Ruta's Vision 2045 campaign. Lotus was the winner of the 2024 EUCCC Sustainable Business Award and the Green App Award for Outstanding Environmental Practices. Our Sustainable Supply Management case was also included in Shanghai Climate Week 2024 Climate Tech In Focus report, and this report was also released at COP29.
Speaker Change: Ooh, Shanghai Chicken junior alcohol Chico could you use your.
Speaker Change: <unk> didn't want about.
Speaker Change: Sure.
Speaker Change: Yes.
Speaker Change: On ESG we.
Speaker Change: We are we were honored at highly commence rooted sustainability awards 2024, leading the easy industry within Bruce's vision 2045 campaign. This was the winner 2020 for EU CCC sustainable business Award and the Green apples.
Speaker Change: Finally environmental practices.
Speaker Change: A sustainable supplier management case was also included in Shanghai climate week 2020 for climate attached in focus report and this report was also released October 29.
Speaker Change: Oh.
Feng Qingfeng: I would like to inform you about the progress of the first quarter of 2025. In the first quarter of 2025, we sold 12,082 units In the mid-term, we have reached 2,000 units As for our recent development in 2025, we have already delivered more than 12,000 vehicles in the first three months. And as for the sales at the end, we have already delivered more than 2,000. As you all know, in China, the name Lotus has always been controversial. In the past, there was a controversy over the Lotus logo. So we have been using Lotus NYO and Chinese Lotus as Chinese logos.
Speaker Change: With these seasonal electricity demand.
Speaker Change: One more.
Speaker Change: So the digital amongst the job, although you I mentioned earlier.
Speaker Change: <unk>.
Speaker Change: As for our recent developments in 2025, we have ready to go.
Speaker Change: More than 12000 vehicles in the first three months and also the so at the end.
We have already delivered more than 2000.
Speaker Change: The month of June.
Speaker Change: As usual a lot of the <unk> 35.
Speaker Change: Sponsored by Shandong <unk>.
Speaker Change: Sure Jamie either.
Speaker Change: Sure.
Speaker Change: The low dose.
Speaker Change: Neutral.
Speaker Change: So we think with the phone bill.
Feng Qingfeng: Through four years of hard work, we have brought back the English Lotus logo and the Chinese Lotus logo to achieve global brand logo unification. In the past, the Lotus in China was called the English pronunciation of Lotus and we have to use the NYO as part of our logo but in January 2025, we have successfully reclaimed the proprietary rights of Lotus' iconic logo, Lotus wordmark and the Chinese character of Lotus, Lianhua in China, ensuring consistency in terms of its trademark across the world. In terms of design, we have re-adjusted some of our SUV Electra and the luxurious charging GT Meiya.
Speaker Change: Well manav.
Speaker Change: England, a little sooner.
Speaker Change: You've joined the impartial MBR was how much should you can buy the <unk>.
Speaker Change: In the past the launches in China, which causes the increased shop pronunciation.
Speaker Change: Lotus.
Speaker Change: We have to use nyo.
Speaker Change: Part of our Genco, but in January 2025, we have successively reclaimed the proprietary rights of Lotus iconic logo Lotus blood marrow, Canada, Chinese handset of Lotus, <unk> and China, ensuring consistency in terms of its trademark across the world.
Speaker Change: Switching from El months, ranging from a few months ago.
Speaker Change: <unk>.
Speaker Change: Our E mail.
Speaker Change: Our.
Feng Qingfeng: In February, we upgraded the product and made a comprehensive optimization of the configuration, and the competitiveness of the price has also been significantly improved. In February, we started delivery in China. In the second quarter, we will start delivery in Europe and other countries. In addition to that, we have also made a model facelift for our Elettra and EMEA. Specifically in February, we have refreshed the lineup of those two models with upgraded configuration and competitive pricing. In China, the vehicle has been delivered starting from February, and in Q2, the delivery will also commence in the EU and the rest of the world.
Speaker Change: From the Shaw <unk>.
Speaker Change: Total eclipse and then Europe this year.
Speaker Change: But in.
Speaker Change: With that Sean.
Speaker Change: Mr Goldman Sachs Limbaugh cashes Joe.
Speaker Change: D R.
Speaker Change: Although <unk> got the tissue testing.
Speaker Change: In addition to that we have also made a modal facelifts for our electronics and EMEA specifically in February we refreshed the lineups of those two models with upgraded configuration and competitive pricing in China that vehicle has been delivered.
Speaker Change: From February and in quarter two.
Speaker Change: We'll also commence in EU and the rest of the world.
Feng Qingfeng: In February this year, 16 cities in China launched the Wutu City OVA system to support smart electric road driving, high-speed and city-to-city road interconnection, intersection detour, smart road selection, and other functions such as obstacle avoidance. At the same time, in February, OTA was launched to promote the smart driving system for city-to-city road interconnection. Besides, we have also launched a mapless urban NOA navigation on Autopilot in 16 cities across China in February this year. The system can effortlessly achieve lane-changing, seamless transition between highways and city roads, use and factor intersections, intelligent lane selection, and smart obstacle avoidance.
Speaker Change: When does that union.
Speaker Change: Quarter, two was dilutive or tusa tusa tusa.
Speaker Change: <unk>.
Speaker Change: Sure.
Speaker Change: Alright.
Speaker Change: Josh Gulf Louise tuition.
Speaker Change: And yet.
Speaker Change: Our local go through auction on <unk> trial will be run from hormone.
Speaker Change: Closer to the.
Speaker Change: Sure <unk>.
Speaker Change: <unk> material.
Speaker Change: Sure <unk>.
Speaker Change: <unk>.
Speaker Change: <unk>.
Speaker Change: Thats a good chunk sure.
Speaker Change: So listen on gas as well.
Speaker Change: Besides we have also launched Annapolis urban MLA navigation on Rosa highlights in 16 cities across China in February this year.
Speaker Change: Can effortlessly achieve lane changing seamless transition between highways on Cts.
Speaker Change: Houston is.
Speaker Change: Sections Intelligence Lane selection.
Speaker Change: Part of central avoided.
Feng Qingfeng: Starting in February, we have also started our OTA to push this function to our end customers. This system can make our vehicle to be able to deliver door-to-door intelligent driving. Starting from Q2, this function will be available in more than 100 cities in China through LTA.
Speaker Change: Starting in February we have also started to push this function to our end customers. This is and can make our vehicle to be able to deliver a door to door intelligent driving.
Through our multiple touch 'n foam Calgary.
Speaker Change: <unk> sure.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Starting from quarter, two dysfunction won't be available in more than 100 cities in China throughout.
Feng Qingfeng: In March of this year, we, Lotus Tech's smart driving company, Lotus Robot, reached a strategic partnership with Chaochao Travel, jointly built a innovative smart travel platform, and accelerated the commercialization of Robotaxi. At the same time, we have started demonstration operations in Hangzhou and Suzhou. In March this year, Lotus Intelligent Driving Arm, Lotus Robotics, has also established a strategic partnership with TaoTao Mobility to launch an innovative intelligent mobility platform for Robotaxi. We have also started the pilot operation in the city of Hangzhou and the city of Suzhou.
Speaker Change: Notwithstanding.
Speaker Change: Joining us in this room.
Speaker Change: She's outlets, among Josh homeserve, thereby securing <unk> triangle.
Speaker Change: On a constant amount was an impact.
Speaker Change: Through lower taxes as a sign of our loyalty from emotional womens Hangzhou Suzhou zinc hedges.
Speaker Change: Yeah.
Speaker Change: In March this year.
Speaker Change: Yes.
Speaker Change: Intelligent driving on Lotus Robotics has also established a strategic partnership with Thomson mobility to launch an innovative intelligent mobility platform for over.
Speaker Change: Taxi, we have also started a pilot operation in the city of Hangzhou and Suzhou.
Feng Qingfeng: Lotus Tech contributes to and contributes to the development of common goods. The CME Inquiry into the World Economic Forum's suissed case shows the ongoing We will try to develop them as a test driver as well. In addition to that, Lotus Technologies' natural capital assessment project was also included in the World Economic Forum report, which demonstrated our ambition and also our progress in sustainable development, particularly on luxury vehicles.
Speaker Change: How could you.
Speaker Change: <unk>.
Speaker Change: <unk>.
Speaker Change: Any ballpark.
Speaker Change: So the essential elements of that.
Speaker Change: Shoot.
Speaker Change: We will fight and home yet.
Speaker Change: So tahoe entre the bogey.
Speaker Change: In addition to that lucid technologies natural capital assessment projects was also included in more economic for our reports, which demonstrated our ambition and also our <unk> and sustainable development, particularly on the luxury vehicles.
Feng Qingfeng: In 2023, when we were in the U.S. IPO, we had a put option On April 14th of this year, we received the promotion notice issued by GD It required the company to acquire 1% of the shares of Lotus, which GD held, This year, we will carry out the put option According to the post-auction agreement, date is January 31st, 2023 between the parties Europe, China, and the United States, the four major marketing areas. If we can exercise this good option, we will be able to operate on two factories, Hathow factory in the UK and Wuhan factory from China.
Speaker Change: The us.
Speaker Change: Yes.
Speaker Change: The circle amongst <unk>.
Speaker Change: The upshot.
Speaker Change: Sure.
Speaker Change: Sure Judy spots with a few of them.
Speaker Change: Thank you <unk>.
Speaker Change: Uhm, industrial which essentially global.
Speaker Change: <unk> <unk> <unk> co.
Speaker Change: Chad.
Speaker Change: <unk>.
Speaker Change: We'll lease you took absorption.
Speaker Change: Yes.
Speaker Change: On April 14, 2025, we have received the exercised synergies from Chile, requiring Lotus tattoo, such a 51% of the equity interest in <unk>.
Speaker Change: According to the put option agreement date is January 31st 2023 between the parties.
Speaker Change: While our majority owned <unk> hundreds from Golden Eagle.
Speaker Change: FEMSA amongst homebuilders in multiple tranches of mortgage insurance and other ongoing out there.
Speaker Change: Although June 12.
Speaker Change: 12 megawatts.
Speaker Change: So that stood out that reach at schuh.
Speaker Change: Sure.
Speaker Change: If we can exercise this consumption, we will able to operate on two factories have a factory in the UK.
Speaker Change: Factory from China, There's two factories can cover full regions Middle East APAC, Europe, China, and North America.
Feng Qingfeng: Those two factories can cover four regions, Middle East, APAC, Europe, China and North America. Based on this auspicious authorization, Lotus will acquire 51% of the shares of Lotus UK After the transaction is completed, the company will gain control of Lotus UK. and merge them into a financial report. This strategic acquisition will promote the Lotus brand to realize all its business, and the integration of shadow to truly realize the OneNote project. As per the exercise of a put option from Julie, Lotus expects to acquire 50% of equity interest in Lotus UK through a non-cash transaction based on pre-agreed valuation methodology.
Speaker Change: Thank you.
Speaker Change: In fact, therefore, the tunable <unk> enjoy issue.
Speaker Change: In the ultra fostered through FY <unk>.
Speaker Change: Most of the judge.
Speaker Change: <unk> or the <unk>.
Speaker Change: Moving to tell Bob.
Bob: So im challenging the showgirls jumped to loan the MRP past present, SaaS oil yield using inventory.
Suzanne one logo.
Bob: As for the exercise the first option from Julie Lotus expects to acquire <unk>.
Bob: Accuracy interest in lettuce, UK to a noncash transaction based on and create real value.
Bob: Allegation histology upon completion, let us file gain control of Lotus UK and consolidate its financial results. This strategic transaction will enable the company to integrate all global business Honda Lotus brands.
Feng Qingfeng: Upon completion, Lotus will gain control over Lotus UK and consolidate its financial results. The strategic transaction will enable the company to integrate all global business under Lotus brand. This acquisition is expected to be completed in 2025, and may carry out the current relevant regulatory procedures. Subject to potential regulatory approvals, the acquisition is expected to be completed in 2025 this year.
John: But overall it is John.
John: <unk> <unk> from <unk>.
John: Subject to potential regulatory approvals the acquisition is <unk>.
John: <unk> should be completed in 2025 this year.
Josh: Thanks, Josh.
John: Yes.
John: You buy us to achieve one child policy Shenzhen, Shanghai E Bioscience pattern, the Trump policy it won't help us.
I assume the entire supply chain through careful.
Feng Qingfeng: As for our product pipeline, Evia, which is our hypercar, it has a limited offering of 130 vehicles globally. We have already started the delivery of this hypercar. The second is Emerald sports car, Emerald sports car, Emerald sports car is mainly The U.S. is the largest sales region Of course, it also distributes worldwide In 2025, we will launch Model Year 2.6 to adapt to the U.S. market and global regulations In 2027, we will make a major upgrade and change At the same time, it also meets the European law standards, and the power will be upgraded. And moving on to our Emira sports car, the US market is the biggest market for Emira and this vehicle has also been available for global other markets.
John: As for our product pipeline is just our hyper com now a.
John: A limited offering at 130 vehicles globally, we have already started the delivery of the hydro com.
Speaker Change: <unk> narrowed the Porsche and Audi Porsche pneumonia Margaret kaczor throughout.
John: Shareholder.
John: Bush of Green Dot.
John: And with our industry things are essential.
Speaker Change: Mr <unk>.
John: The model year.
John: So in order for.
John: China unchanged through the factory.
John: And once our Gms who joined us.
John: From Zika.
John: Hopefully among Georgia.
John: Oh, she back with <unk>.
John: Awesome.
John: And moving onto our narrow sports Scott the U S market is the biggest market for Amira and this vehicle has also been available for other markets.
Feng Qingfeng: This year we are going to launch a model year 26 for Emira. It will be dedicated to the US market and also meet the compliance requirements for other markets. In 2027, we are planning a major uplift for Emira. It will have more horsepower and it will also be compliant to EU7 emission requirements. Europe, the UK, and other countries have begun to pay the 26-year subsidy. As for our lifestyle vehicles, the Electron EMEA, previously I briefly mentioned about it, that we have already commenced the delivery in China for model year 26, and the delivery for EU, UK, and the rest of the world will also start in quarter two.
John: This year, we are going to launch a model year 2006, and mirror its will be dedicated to the U S market and also reach the compliance requirements for other markets. In 2027, we are planning a major uplift in mirror. It will have a more horsepower. It will also be comply.
John: <unk> two <unk> seven emission requirements.
Speaker Change: No no listen we're going to electrify EMEA concepts for the number of Offences for both.
John: <unk> purchased <unk>, which is our model.
Speaker Change: PRT block with.
Speaker Change: Drew.
Speaker Change: Although you will highlight <unk> without these repairs itself.
Speaker Change: Number two the Copa.
Speaker Change: Okay.
Speaker Change: As for our lifestyle vehicles electron EMEA previously I briefly mentioned about this that we have already commenced the delivery in China for model year 'twenty six.
Speaker Change: The delivery for UK and the rest of the World also starts in quarter two.
Feng Qingfeng: At the same time, at the end of this year, we will SOP a new plug-in hybrid car. This is a super hybrid product. The first quarter of year 26 will start in China, first in China. At the end of this year, in other words, at the end of 2025, we are planning to launch a PHEV. We would call it a hyper-hybrid model. This model will start delivery first in China in Q1 next year.
Speaker Change: Toyota opinion either.
Dan Shaw: So a key question Hi, Dan Shaw from normal.
Speaker Change: So as we move towards you condone country.
No.
Speaker Change: The auto 92, parachutes June or show agenda from Guangzhou.
Speaker Change: At the end of this year in other words at the end of 2025, we are planning to launch a <unk>, we would call it.
Speaker Change: The hybrid model this model well start deliveries in China in quarter, one next year.
Feng Qingfeng: In 2027, we will deliver another new model. We have achieved our Vision 80 plan and six products. In 2027, we are also planning another new model and by adding this new model together, we would be able to deliver our vision of the Vision 80 strategy. In other words, we will have six models in total.
Speaker Change: <unk>, Amazon, which all four months.
Speaker Change: No other questions.
Speaker Change: The woman.
Speaker Change: Mark Wilson.
Speaker Change: Worldwide using <unk>.
Speaker Change: In 2027, we are also planning another new model.
Speaker Change: Adding this new motor together, we were able to deliver our vision <unk> vision <unk> strategy in other words, we will have six models in total.
Speaker Change: Sure.
Oh I understand.
Feng Qingfeng: And that's all I'd like to share with you. Thank you.
Speaker Change: Yeah.
Speaker Change: And that's all I'd like to share with you. Thank you.
Demi Zhang: Well, thank you, CEO and Jeff. Darcy, we're ready for Q&A. Thank you.
Speaker Change: Thank you.
On the gas on R&R team, we already much Q&A.
Operator: If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you are on a speakerphone, please pick up the handset to ask your question.
Speaker Change: If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced.
Speaker Change: If you wish to cancel your request please press star two.
Speaker Change: You're on a speakerphone, please pick up the handset to ask your question.
Kevin Coelho: Your first question comes from Kevin Coelho from Tier One Systems, please go ahead. Good morning, everyone. Thank you for taking my call. I'm calling as a Lotus investor, as someone who opened an exotic car dealership here in California about 11 years ago, and most of all, as a car enthusiast. And basically, really, my question is, is there any plan? It seems like you have a really amazing opportunity with the Amira to create something that would be highly in demand here in the US market, which would be something that's lighter weight than currently exists right now in the Amira, maybe adding carbon ceramic brakes, carbon bucket seats, some other things to remove a couple hundred pounds, and also increasing the horsepower and redline on the V6, which is an amazing engine.
Speaker Change: Your first question comes from Kevin Cohen from Tier one systems. Please go ahead.
Kevin Cohen: Hey, good morning, everyone. Thank you for taking my call I'm, calling as although this investor as someone who opened an exotic car dealership here in California about 11 years ago, and most of all as a car enthusiast and.
Kevin Cohen: Basically really my question is is there any planned it seems like you have a really amazing opportunity with the mirror to create something that would be highly in demand here in the U S market, which would be something that's lighter weight than than currently exist right now in the mirror, maybe adding carbon ceramic brakes carbon bucket seats, some other things too.
Kevin Cohen: Remove a couple of hundred pounds and also increasing.
Kevin Cohen: The horsepower and Red line on the <unk>, six which is an amazing engine it sounds great.
Feng Qingfeng: It sounds great. If you look at Porsche, they really have kind of created the recipe that everyone else I think should follow. If you look at what the GT3s and the GT3 RSs sell for, I mean, they're going for $100,000 over MSRP right now. They're almost impossible to get. I'd be curious to know, do you have any plans of creating just really like a hardcore, maybe an Amira R with a high-revving V6, manual transmission, lightweight, I think that would do amazingly well here in the U.S. market. Thank you very much for your advice.
Kevin Cohen: You look at Porsche they really have kind of created the recipe that everyone else I think should follow if you look at what the GT threes and the GT three Rs itself, where I mean, they are going for.
Kevin Cohen: 100000 over MSRP right now theyre almost impossible to get.
Speaker Change: I'd be curious to know do you have any plans of creating just really like a hardcore maybe in a mirror or with a high rubbing v-six manual transmission lightweight I think that would do amazingly well here in the U S market.
Speaker Change: For free cash.
Speaker Change: Jay.
Feng Qingfeng: The sales of e-mirror in the U.S. are very good. Nearly 50% of e-mirror sales are in the U.S. It is very popular among U.S. consumers, especially V6. Thank you for your question. I think it's a brilliant suggestion and in fact, the U.S. is the largest market of eMira. Almost 50% of eMira sales are all coming from the U.S. And particularly our basics model is very much preferred by our U.S. consumers. and the same horsepower as the V6, the U.S. consumers preferred it. Because the final feeling is still very good, especially the response and response of the 8DCT power system is very good.
Speaker Change: Normal would shift in four months.
Speaker Change: The slowdown in the fleet on the Hall.
Speaker Change: Jonathan <unk>.
Speaker Change: So amit.
Speaker Change: Sure development push off into the fine.
Speaker Change: As for Hulu.
Speaker Change: Thank you for your question I think it's a brilliant suggestion 19 tax U S is the largest market is the mirror almost a 50% sales are all coming from the U S and particularly our basics model very much preferred by our U S consumers Omega financial improvement quarter shopping through our food.
Speaker Change: Sure.
Bob had downtime on either.
Speaker Change: The following Ges John legal culture.
Speaker Change: Some of that portion of enrollment there.
Speaker Change: Some of them in <unk>.
Speaker Change: The Orleans only ophthalmology.
Speaker Change: So the balance sheet.
Speaker Change: Sure Comcast the distributable amongst in Wuhan version of passion that Shlomo bookings you already knew obviously.
Speaker Change: Thank you, Tom and water shelf leadership, Gallo, where much of our R&D budget.
Speaker Change: We see the following.
Speaker Change: So that humanity critical window of time on the money.
Speaker Change: <unk> average of the ship.
Speaker Change: That is all the time so.
Tony: As of the audience that you would see some departures how Tony CFO Bob.
Speaker Change: <unk> does not shying profiling vanquish frankly is on the <unk>.
Tony: Paul.
Feng Qingfeng: Well, we are very clear that our U.S. consumers would prefer engine or model with a higher horsepower and higher RPM. As a matter of fact, we have another model available in the U.S. market, the 2.0 turbo model, which has also a relatively high horsepower. At the very beginning, we were quite concerned about our U.S. consumers that they may only prefer the V6 model instead of the 2.0 turbo model. However, after our consumers testing drive the 2.0 turbo model with also 400 horsepower, our consumers have really liked it, particularly with its power-consistent ACCT transmission and very fast response.
Tony: While we are very clear.
Tony: Our U S consumers.
Tony: NGL model with a higher horsepower and higher RPM as a matter of fact, we have another model available in the U S market. The two put in several Apple model. It has also a.
Tony: Robert LTC high horsepower.
Tony: They are beginning we were quite concerned about our U S consumers, that's where they may only.
Tony: The 620 tempo.
Tony: After our casinos testing Giants.
Tony: Zero Teva modal.
400 horse power.
Tony: Our consumers are great linkage.
Tony: Particularly it's paraconsistent.
Tony: Paraconsistent ACC transmission ancillary faster response.
Feng Qingfeng: We do not plan to increase the horsepower of the V6 engine We are studying a new engine, the V8 engine to see if it is feasible We are studying it now Because the V6 engine will not be able to meet the O7 in the future So we don't want to spend too much investment on this V6 So we will study a new engine For example, the V8 engine To use this kind of horsepower To meet the consumer's needs As for V6, we, to be honest, do not have the plan to further increase its power because this engine will not be compliant for EU7 emission.
Tony: The video losses of avalanches hour Lumping mail Seo.
Tony: Bob.
Tony: <unk>.
Tony: Among jumbo Joey Goshen of items, you laid by the <unk> commercial for your questions you'll have a similar conversion.
Tony: And we are available to fund patterns in our lives.
Tony: Non go man.
Tony: You bet.
Tony: So equal or module for sound basic available, Sean so whilst higher towards the total.
Tony: The rollout.
Tony: No more than <unk> GDP globally.
Tony: <unk> hundred on time or the best is yet to the Shelby just two tablets is wrong.
Tony: Sure.
Tony: As for the six we.
Tony: To be honest that do not have a plan to further increase its power because this engine will also be compliant for you. Stephanie mentioned, however, we are investigating a new powertrain system, which is a D H.
Feng Qingfeng: However, we are investigating a new power system, which is a V8. It will have a bigger horsepower and we are currently investigating the feasibility of a V8.
Tony: Have a bigger horsepower underground currently investigating the feasibility of the VA.
Feng Qingfeng: Starting from this year, we started to make various commemorative versions in Europe. By reducing some of the weight, by introducing some special, like the carbon fiber you just mentioned, we started to launch some limited editions. We will also study the US market. to promote the European commemorative edition to the United States. and actually this year in Europe we have launched some limited edition with less weight like the suggestion that you mentioned that we put more carbon fiber materials on it and we will consider to see if we are going to launch similar models in the U.S.
Tony: My opinion pressure womens show agenda overall cash literally go from beyond the <unk>.
<unk> continues you tonia <unk> pushed through the Tucson, regardless, whether through the pension.
Tony: Our loan constitutes relationship number.
Tony: A portion of our new <unk> and jewelry shops.
Tony: Sure about <unk> to <unk> <unk>.
Tony: Yeah.
Tony: And actually this year in Europe, we have.
Tony: Launch system limited edition.
Speaker Change: Ladies like.
And the suggestion that relation to recruit more carbon fiber material on it and we will consider to see we're going to launch similar models in the U S market.
Feng Qingfeng: market thank you for your passion for Lotus also thank you for your great suggestion Thank you very much. Appreciate it. Thank you.
Speaker Change: <unk>.
Speaker Change: You.
Speaker Change: You may begin.
Speaker Change: Thank you for your passionate blouses, social thank you for your suggestion.
Speaker Change: Thank you very much appreciate it.
Speaker Change: Thank you. Your next question comes from Lauren <unk> from Deutsche Bank.
Laura Lee: Your next question comes from Laura Lee from Deutsche Bank US. Please go ahead. Hey, well, thank you for taking my question. So my first question is about the ADA's revenue. So what's its contribution over the last year? And any update on the guidance? Any new design you're working on? Yeah, that's my first question. Thank you, Laura.
Speaker Change: Please go ahead.
Speaker Change: Hey.
Speaker Change: Well. Thank you for taking my question. So my first question.
Speaker Change: Revenue.
Speaker Change: <unk>.
Speaker Change: <unk> contribution over the last year.
Speaker Change: And any update on the guidance any new design wins.
Speaker Change: Yes. This is my first question.
Laura: Thank you Laura.
Asher Wang: I will invite CFO to give her first question is on the revenue guidance. yeah Yeah, so you mean for the 2025, right? Yes. Okay, so if you like we have a detailed plan, which is going to be, you know, like we have an improvement compared to the 2024. Let's say like we are waiting for the further approval from the border director. Thank you.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Our first question is on the revenue guidance.
Speaker Change: On EMEA.
It's not yet.
Speaker Change: Joining me for the 2025 right, yes, okay. So.
Speaker Change: Right.
Speaker Change: Sure.
Speaker Change: Client base is going to be like we have an improvement compared to the 194.
Speaker Change: We are reaching for the area for the Puma from their board of directors.
Speaker Change: Thank you.
Asher Wang: And Laura's second question, I remember, is the question on the revenue, the robotics. Thanks for this, yeah. It's for 2024. 2024, yeah. Okay, so for the robotics, actually we achieved like pretty, you know, improvement compared to the one year before. And we gained not only the internal revenue from the Lotus, we also gained some customers from the outside of the company and also outside from the GD Group. So overall, we achieved 22 million US dollars from the customers outside the Lotus. So that's something like, I mean, well, like our. the profit margin. I think we have a pretty high margin compared to the sales of goods.
Speaker Change: Second question I remember it.
Speaker Change: Revenue.
Speaker Change: Six.
Speaker Change: Electronics, yes.
Speaker Change: Scotland.
Speaker Change: This is Mike.
Speaker Change: Okay. So for the robotics vaccine, where you accumulate premium.
Speaker Change: The improvement compared to their one year before.
Speaker Change: And again, not only internal avocado viewing you from the low test, but also okay from customers from the from the off either the economy and also aside from Vahidi group.
Speaker Change: Overall <unk> achieved like.
Speaker Change: Turning to our meeting Dr Tolar from that target.
Speaker Change: The customers outside the Lotus.
Speaker Change: So that's something like <unk>.
Speaker Change: Our.
Speaker Change: Gross profit margin I think we have a pretty high margin compared to the answer that.
Asher Wang: I mean, we are going to be able to keep this number in this year. So that's the, I think that basically the revenues from the robotics side. Okay, okay, got you.
Speaker Change: Meanwhile, we are happy to be able to keep this number in this year, so that the asking about basically the revenues from the <unk>.
Speaker Change: Robotic fab.
Speaker Change: Okay. Okay I got you okay.
Laura Lee: My second question is around like the margin trajectory. As you mentioned for this year and the 26th, are there any like headwind or tailwind on a year-on-year basis we should consider? And also thinking about the tariff situation, are there any like changes on production arrangement that you're considering? Thank you Laura.
Speaker Change: My second question is around like the margin trajectory as you mentioned.
Speaker Change: The CN 26.
Speaker Change: Are there any like huddling, a tailwind on a year on year basis, it should be there.
Speaker Change: And also thinking about the tariff situation.
Are there any like changes.
Speaker Change: Production arrangements that you are considering.
Speaker Change: Yes. Thank you Lara first question is on the margin trajectory.
Asher Wang: Her first question is on the margin trajectory for this year and the next year and also considering the tariff situation, is there any changes? Okay, so I think the the market is going to be much improved this year compared to last year. Last year, first there is a trade in uncertainties and also like we have the stock so it's a margin, you know, to lower compared to the one year before. But this year, I think the first thing where the stock plan is going to be much easier over and we don't have this stock, you know, clearing requirements.
Speaker Change: For this year and next year and also considering the current situation is there any changes okay.
Speaker Change: So I can be the market's going to be much improved compared to last year last year.
Speaker Change: First of all there is a trade uncertainties.
Speaker Change: And also like we have with our stock.
Speaker Change: For your facultative.
Speaker Change: Okay.
Speaker Change: Start clearing plans.
Speaker Change: H caused our profit margin.
Speaker Change: Two lower compared to the year before at ACR Athene Firstly.
Speaker Change: We are the stock plan is that it's going to be March is over and we're already.
Speaker Change: No longer have this stop clearing them.
Asher Wang: I mean, well, like we have a much better product, you know, like cost structure. So that means like our, you know, the gross profit margin is going to be much better than the 2024. So that's my expectation for the year 2025. Will the tariffs affect the production? No, I don't think so. What? I don't think so. Did she ask about this?
Speaker Change: Requirements.
Speaker Change: I would like.
Speaker Change: Now with a much better product cost structure.
Speaker Change: Structure, So let me flag.
Speaker Change: Gross profit margin is going to be much better bandwidth.
Speaker Change: The Chinese RMB.
Speaker Change: So thats my expectation for the year 2025.
Speaker Change: Turning to <unk>.
Speaker Change: Frequently Asia belt churn Sheila I'll remind you.
Speaker Change: Okay.
Speaker Change: Sure.
Laura Lee: Laura, excuse me, do you mind repeating your last question on the camera? Sorry, your voice was very far away. Oh, yeah. Yeah, so yeah, the second part is around like the impact of tariffs and any like mitigation you're considering, like changes on production arrangement or this sort of solution. In terms of production, it will definitely be affected by tariffs. For example, in the United States, the tariffs are already very ridiculous. So we have now suspended the use of China's production of life for the United States. Suspended the use of life for the United States. So, so far, we haven't received any information about the car.
Speaker Change: Well, Laura excuse me deal do you mind to repeat your last question on the <unk>.
Speaker Change: Are you willing to listen are entirely.
Laura: Oh, yes, yes, yes.
Speaker Change: Second part is around like the impact of tariffs and.
Speaker Change: Any like mitigation you're considering.
Speaker Change: Changes on production arrangement.
Speaker Change: Solutions.
Speaker Change: Thank you.
Nick: Nick will show the quality of the sound development broader question.
Speaker Change: And in Fuller.
Nick: Social machine that sentiment.
Nick: Further jeanine.
Nick: <unk> from Goldman trial sampling attainment.
Nick: Farquhar.
Nick: None.
Nick: Being somewhat similar to <unk>.
Asher Wang: We are still doing further market analysis. Well, definitely we have been affected by the U.S. unbelievably high tariff particularly for our lifestyle vehicle which is produced in China and for our lifestyle vehicle we have already stopped its export into the U.S. market. However, our sports car which is produced in the U.K. has not been affected yet. We are still investigating the market and also we are still doing analysis. Okay, gotcha. Yeah, that's helpful. Thank you, Laura. Thank you.
Nick: 100, <unk> for the shops.
Nick: Well actually we have.
Nick: Affected by the U S unbelievably high.
Nick: Particularly for our lifestyle vehicle.
Nick: Is produced in China as a lifestyle vehicle will have varies of seats.
Nick: Exposure to the U S market. However.
Scott: Scott, which is produced in the U K has not been affected yet we are still investigating Lockheed on this so we are still doing analysis.
Nick: Yes.
Nick: Yeah.
Nick: Okay got you that is helpful.
Nick: Okay.
Nick: Thank you Laura.
Operator: Once again, if you wish to ask a question, please press star 1 on your telephone.
Speaker Change: Thank you once again, thank you Michelle and ask a question. Please press star one on your telephone you.
Joyce Yang: Your next question comes from Joyce Yang from MSIM China. Please go ahead. Hi, thank you for taking my question. I have two questions, actually. First one is, what are the contributing factors behind the significant decline in gross profit in fourth quarter of 24? And how much did the intelligent driving and the bespoke service contribute to the service revenue and the gross profit in this fourth quarter? Thank you, Roy.
Speaker Change: Your next question comes from the line Shang from MSI in China. Please go ahead.
Shang: Hi, Thank you for taking my question I have two questions actually the first one is what are the contributing factors behind the significant decline in <unk>.
Shang: Gross profit in the fourth quarter 'twenty, four and how much did it did.
Shang: Intelligent driving and bespoke service contribute to the service revenue and the gross profit in this first quarter.
Okay.
Speaker Change: Thank you Ron.
Asher Wang: Now we invite Xiaofeng Li to line. So basically the fourth quarter performance, as you can tell, we had some decline. It's because we clearly, you know, the stock. and meanwhile like the because of the I started this from Paris. For the intelligent driving business, there's an accounting rule change because of the change in the booking policy from the cash basis to the accrual basis in the fourth quarter, which results in some adjustments, accounting adjustments in the figures. So you can tell from the fourth quarter of the revenues from the services, you can see the change.
Shang: Mike Shaffer misaligned.
Shang: So basically the fourth quarter performance.
Shang: Paris.
Shang: A decline in fee.
Shang: <unk> cleared a desktop.
Shang: And Meanwhile, because of the.
Okay.
Shang: I heard there from the tariff.
Shang: <unk>.
Shang: Hi.
Shang: And hydrogen driving business.
Shang: Accounting rules exchange change because of the return of.
Shang: Bookings.
Shang: From the cash basis to accrual basis in the fourth quarter. So.
Shang: Please refer to your summer adjustment accounting adjustment in the in the fee growth.
Shang: The comparison for the fourth quarter fourth quarter of the.
Shang: The revenues from the from the services if I see the change.
Asher Wang: So basically, starting from this year, we already under the new accounting policies, the gross margin is going to be recovered. And meanwhile, particularly in the service sector, we are going to align the intelligent driving business with the industry benchmark. So thank you.
Shang: Basically talked about starting from this year.
Shang: We already.
Shang: A new accounting policies the gross margin here, it's going to be recovered and Meanwhile D.
Shang: Particularly in our factor refereeing to aligned.
Shang: And auto.
Shang: Inherent driving <unk> wafer industry benchmarks for thank you.
Asher Wang: In 2025, the main reason for this change is that we adjusted the car configuration. 推出了Model E26 第二季度會在歐洲和英國進行交付 現在生活用車佔了我們 The whole of Europe and the UK account for a very large proportion of our sales, 40% of our sales So through this Model Y26, we will be able to to improve our毛利率 and help us to improve our gross margin. Okay, thank you. I have a second question is, what is the revenue and profit margin of the intelligent driving business in the past year 2024? And any guidance for this following year 2025 and midterm revenue and profit margin for vehicles and or the comprehensive service respectively?
Shang: Thank you.
Shang: For one year.
Shang: Yeah. So look at it then we.
Shang: And we will March.
Shang: Charter.
Shang: We are truly on the page.
Shang: Full of model year, our leu from a Trs <unk> II.
Shang: Although <unk> seen some <unk> in filling the channel channel one month.
Shang: So the OTO.
Shang: So the English channel.
Shang: The shutdown PD.
Shang: Australia.
Shang: The Homewood is a model you Aldo.
Shang: Okay channel with the commodity.
Shang: And also like to comment to that in 2020 gross margin is going to be facing.
Shang: Basically increased strategic our launch of the model year 2006.
Shang: Previously elaborate is <unk>.
Shang: 26 will be launched in Europe, including EU and U K in quarter, two and the rest of two marquee actually accounted for more than 20% sell so by launching more to get the six if you can help us to improve our gross margin.
Shang: Okay.
Shang: Okay. Thank you I have a second question is what is the revenue and profit margin.
Shang: <unk> intelligent driving business in and the passenger or 2024 and the guidance for this following year 2025, and midterm revenue and profit margins for vehicles and for the comprehensive service respectively. What is the plan to improve the.
Asher Wang: What is the plan to improve the margin? Yeah, that's my final question. Yeah, the benchmark margin for the intelligent driving business is about like 30%. So it's in line with the industry standards. So starting from this year, we are going to not only to improve the margin, also we are going to get more clients, more business from the market. So I think they are going to further lower the cost, thereby increasing the profit margin. Okay, thanks. Thank you, Roy. Thank you.
Shang: Margin Yeah. That's my final question. Thank you.
Shang: Yes.
Shang: The benchmarks.
Shang: Margin for therefore, the impact in driving payroll benefits of about 30%.
Shang: In line with the industrial standard.
Shang: So.
Shang: And so starting from this year, we're going to another way to improve the margin also that range, we're going to.
Shang: <unk> got more clients more business from the market, so asking darko into further lower water cost, thereby increasing the appropriate margins.
Shang: Okay. Thank you.
Shang: Thank you Ronnie.
Speaker Change: Thank you. Your next question comes from Tom Lewis from capital Sunrise. Please go ahead.
Tom Liu: Your next question comes from Tom Liu from Capital Sunrise. Please go ahead. Thank you for taking my questions. Up to you.
Tom Lewis: Thank you for taking my questions up to the first one is what's the cash burn right now and how long is the runway is there any significant financing we can expect in the next six months.
Asher Wang: The first one is, what's the cash burn rate now and how long is the runway? Is there any significant financing we can expect in the next six months? Yeah, as you can tell from our financial performance, we do have a gap in terms of cash and also we are making the cash gap feel through the operations, through the investment plans, through the financing. And we have been closely contacting the investors in the market, so please take a close look at our announcement and also the capital relief. Thank you.
Speaker Change: Yeah.
Speaker Change: Can tell from our financial performance, where do you have.
Speaker Change: <unk>.
Speaker Change: The GAAP <unk> the cash and also allow me right.
Speaker Change: Making sure the cost gap field extruded operation through their lack of appliance are thrown their financing and that we are having and are closely packaging.
Speaker Change: Let me elaborate in the market. So please take a closer look at our announcements and also there was a covenant relief. Thank you so much.
Feng Qingfeng: Tom, you have another question? Yes, my second question is about the management capabilities. So we've noticed the recent management shifts and would you mind to share the rationale behind and what makes the current management team the right one to turn around a luxury company? Thank you. There are two main changes in our management layer, one is the change of CFO Wang Daxue also has a rich financial experience, including experience in the basic market And he used to work at Geely, and he also made outstanding achievements Suzhou, U.S.A. Rome, and then Xi Jinping also. As far as recent management change, we do have to welcome a new CFO, Wang Daxue.
Tom Lewis: Tom do you have another question.
Tom Lewis: Yes. My second question is about the management capital increase so we've noticed.
Tom Lewis: You said managed measures and would you remind you shared that rationale behind and what makes the current management team the right one to turn around a luxury company. Thank you.
Tom Lewis: Okay.
Tom Lewis: Okay.
Tom Lewis: Alright.
Tom Lewis: Hello.
Tom Lewis: We also move volumes from the Tim Donahue.
Tom Lewis: English.
Tom Lewis: For the Kindle.
Tom Lewis: Hello, and Austrian outside your home for the Lgs.
Tom Lewis: Our ges.
Tom Lewis: Both sponsors on the <unk>.
Tom Lewis: <unk> no.
Tom Lewis: Wendell normally approach reductions for the year.
Tom Lewis: Essential to USF or module shipped in bulk.
Tom Lewis: As far as recent management change.
Tom Lewis: You have those outcomes, a new CFO a loan docs sure. He added rich experience in finance and also aftermarket in addition to that also.
Feng Qingfeng: He had a rich experience in finance and also capital markets. In addition to that, he also had a great performance in Geely.
Tom Lewis: <unk> also added a great performance in jewelry.
Feng Qingfeng: Secondly, the sales person in charge of our Chinese market has made a change. The new sales person, Qingfei Ji, has also experienced the luxury market and luxury products. For example, WoWo. During his time in charge of WoWo's sales, he has been selling WoWo for a year. 80,000 to 90,000 units have been made to sell 18,000 to 90,000 units a year. It has grown by more than twice as much. This is the experience of a luxury car with a deep history.
Tom Lewis: Thiago additional markdown was from birth to the social to burn for these.
Tom Lewis: Lamar to assume the shuttle sugar in Chile.
Tom Lewis: Tight issues drove work to grow our washer combat Havas Huntingburg, Indiana.
Tom Lewis: Sure.
Tom Lewis: Tiger Woods.
Tom Lewis: Sure Jim.
Tom Lewis: We're.
Tom Lewis: Good morning, Ian.
Tom Lewis: Sure.
Tom Lewis: <unk> hi.
Can you just talk about pneumonia in Shaw and partners will impact.
Speaker Change: Hi, a J.
Speaker Change: This is in part due to the shareholder through the Hartford the GTA.
Feng Qingfeng: And another thing I'd like to comment is about the change of the head of sales in China. We have introduced a new China sales president, Qing Peiji. He had also rich experience in luxury products, particularly with Volvo. During his time with Volvo, he helped the Volvo sales volume increase from 80,000 to 90,000 to more than 180,000 to 190,000, a significant jump. In fact, our entire team is very good at operating luxury cars. They have plenty of experience. And overall, I just want to say that for our entire management team, we have a seasoned and also rich experience when it comes to luxury brand management.
Speaker Change: And another thing I'd like to comment is not to change it.
Speaker Change: In China, we have introduced a year.
Speaker Change: Essence chin.
Speaker Change: You had a lawsuit which experience in luxury product, particularly.
Speaker Change: During his time with over half the global sales volume increased from 82 to 90000 to more than 180 to 190000 feet significant chunks.
Amanda: Sure Amanda and good <unk>.
Speaker Change: How are trough on that harsher to the queue.
Speaker Change: True.
Speaker Change: With a proven that through the GM.
Speaker Change: And overall just want to say that for our entire management team. We are now we have a seasoned evangelists to reach experience when it comes to luxury brand management.
Speaker Change: So rhonda will nonetheless overall margin.
Feng Qingfeng: Although our salesman, Mao Jinbo, used to operate in Bunche, in Lincoln, now we let him take charge of global coordination. Coordinating with Europe, the United States, the Middle East and Asia. On the one hand, we do sales management. On the other hand, we do brand and market promotion. In order to ensure the global brand trend of OneLotus. As for Ms. Mao Jingguo, she previously had a really rich experience with Vans and also Lincoln, and now she is responsible for closest coordination of sales and operation and brands and marketing collaboration covering the regions such as the EU, US and APEC.
Speaker Change: Yeah.
Speaker Change: Sure.
Speaker Change: Income global machine there were more around her left to go.
Speaker Change: Sure sure.
Speaker Change: Here at home.
Speaker Change: <unk> should only work ongoing on pack.
Speaker Change: You found me an assured sources.
Speaker Change: The other ships.
Speaker Change: <unk> share count to bundle if you.
Speaker Change: Well apart from showing good strength through volume towards.
Speaker Change: The tumor.
Speaker Change: The DLC.
Speaker Change: Sure.
Speaker Change: Now Jim.
Speaker Change: Key previously.
Speaker Change: Really.
Speaker Change: Rich experience with banners and also our Lincoln and now she is responsible for closer coordination south of deflation and brands and our marketing collaboration covering the region such as the U S and APAC the ultimate package to ensure balances.
Feng Qingfeng: The ultimate target is to ensure wireless consistency. We are very happy to announce that Vans and Lotus Tech will continue to be our flagship brand. They are not only our chief designers but also our chief brand managers. Our beautiful products are all designed by Vans and Lotus Tech. Our concept car, Vans and Lotus Tech, has also received a lot of praise. As for our Chief of Hand Office or Chief of Creative Office, Ben Peng, still remains at this position and he created a lot of brilliant concepts for us and also the sensational concept to carve, UV1, that I previously mentioned is also created by him.
Speaker Change: 100, <unk> del Mar irrational.
This year seasonal number two virtual assistant.
Speaker Change: Yeah sure Millennials CDP pipeline.
Speaker Change: Domo and logistical challenges.
Speaker Change: Partial shrinkage Plaza.
Speaker Change: And look at natural rollout.
Speaker Change: The hockey.
Speaker Change: Our Chief brand Officer, and Chief Creative Officer Heng.
Speaker Change: Still remains at disposition and he created the loss of billions cancers.
Speaker Change: What's sort of the sensation of concept car everyone that I previously mentioned <unk> also created a hand.
Feng Qingfeng: The person in charge in the U.S. is the CEO of Maserati and he has a very strong... with a lot of experience. as far ahead of South of the U.S. He was the COO of Maserati, so he can bring us a lot of great experiences that he previously gained. Thank you.
Speaker Change: Among the main quarter for around churn less.
Speaker Change: So.
Speaker Change: Q and challenge.
Speaker Change: Further to the Hawaii <unk>.
Speaker Change: As far ahead of sales in the U S E C.
Speaker Change: CFO.
Speaker Change: Rusty so he can bring us but losses have based on experiences that say previously games.
Speaker Change: Okay.
Speaker Change: Thank you there are no further questions at this time I'll now hand back to MS. Jones for closing remarks.
Demi Zhang: There are no further questions at this time. I'll now hand back to Ms. Yang for closing remarks. Dorothy, do you want to remind everybody how to raise their questions if there is any more? Once again, that is star 1 if you wish to ask a question. star 1 on your telephone. Thank you.
Speaker Change: Dr. <unk> do you want to remind everybody how to eight aircrafts yancey joined anymore.
Speaker Change: Thank you I have a couple.
Speaker Change: Once again that is star one if you wish to ask a question.
Speaker Change: Star one on your telephone.
Speaker Change: Thank you we have a question from George tank from Allison Capital. Please go ahead.
George Tang: We have a question from George Tang from Elfin Capital. Please go ahead. Hi, good morning. Thanks, everybody, for your time this morning.
George Tank: Hi, Good morning, Thanks, everybody for your time. This morning I have three quick questions for management first question is.
Asher Wang: I have three quick questions for management. First question is, can management currently get a high-level guidance on how the put option will impact the company's financials, you know, such as the balance sheet, cash flow, and P&L? It appears there's a pretty high debt-asset ratio of over, I believe, 130% by end 2024. How will the acquisition change that number? Thank you. Thank you, George.
Speaker Change: Management currently at a high level guidance on.
Speaker Change: How the put option will impact the company's financials.
Speaker Change: Such as the balance sheet cash flow and P&L.
Speaker Change: It appears there is pretty high debt asset ratio of over.
Speaker Change: 130% by end of 2024.
Speaker Change: Both the acquisition change that number thank you.
Speaker Change: Okay.
Asher Wang: I will first invite CFO to give you some color on the question. So regarding the execution of the production, where do you do the due diligence? I'm talking with a dialogue with the Lotus UK. So I think we are going to release the result in the first one you just mentioned. It's going to be a non-cash deal, so it's not going to bring the cash burden to the company. And overall, I think the answer to our question, we can't wait until we finish the investigation and then we got the deal done. So please take a close look at our further notice.
Speaker Change: <unk> channel assets in like <unk> <unk>.
Speaker Change: Question.
Speaker Change: Regarding the execution of the put option, whereas steel to the user data links and talking with us.
Speaker Change: Operator.
Speaker Change: Lot of UK, so asking the we are going to really see that.
Speaker Change: Yeah.
Speaker Change: In our primary fixed town and.
Speaker Change: As for the product for the product for Sarnia gas margin is going to be noncash deal. So it's not going to bring a bit of cash to the company.
Speaker Change: Overall, F&B outlets or a question they can wait until <unk> HD the obligation.
Speaker Change: So please take a closer look at our footnotes. Thank you very much.
George Tang: Thank you very much. Perfect. Thank you.
Speaker Change: Okay.
Speaker Change: Perfect. Thank you.
George Tang: And I have another question, perhaps, this has been burning in the back of. many people's minds, but I was wondering, what is Lotus's US strategy, market strategy, you know, given the current geopolitical tensions and terrorist situation? And having said that, what do you think would be your target sales for US market this year? Thank you. Thanks George.
Speaker Change: And.
Speaker Change: I have another question, perhaps to group earnings.
Speaker Change: <unk>.
Speaker Change: Many people's minds, but I was wondering.
Speaker Change: What is <unk> strategy market strategy, given the current yield.
Speaker Change: Political attentions and tariff situation.
Speaker Change: And having said that what do you think would be your target sales for U S market and the share. Thank you.
John Shelley: Thanks, John Shelley <unk>.
Feng Qingfeng: Shall we invite the CEO to answer your question? It's true that this year in the U.S. is not the most difficult year. Although the tariffs on cars have the greatest impact on us, it also has a slight impact on our daily driving. But I don't think it has a big impact. So our plans for driving in the U.S. this year have not changed so far. In fact, the impact of the tariffs may only affect a few of our 200 or 300 vehicles. It won't have a big impact. Yes, in 2025, it is going to be tougher, but particularly we are affected by our lifestyle vehicle or mainly affected by the tariff hike.
John Shelley: To answer your question for Q4.
Speaker Change: For children.
John Shelley: Say, Jim on the EDM.
John Shelley: R&R, partially through amongst <unk> departure.
John Shelley: <unk> was the only reason for that.
John Shelley: So those are all emerging in many quarters.
John Shelley: For the <unk> portion of our interest in <unk>.
John Shelley: Yes.
John Shelley: Part of the <unk> mine.
John Shelley: <unk> truly umber population Heather.
Speaker Change: Yes in 2020 is entered.
John Shelley: And to be tougher.
Speaker Change: We are affected by.
Speaker Change: I would like to note vehicle, Romania acted.
Feng Qingfeng: As for our sports car, we were slightly affected, so we haven't actually changed our original plan for our sports car sales in the U.S. We expect about roughly 200 to 300 sales most because of the tariff in the U.S. We are also looking for solutions from the U.S. The U.S. market is very important to Lotus It is the world's largest luxury car market And for the Lotus brand U.S. consumers have a high degree of awareness of it This is an important market for us So what we are going to do next is to solve the problem of how to enter the U.S.
Speaker Change: As far as stock comp.
Speaker Change: Were slightly affected so we happened to actually change channel, which is a client or a soft consumption in the U S.
Speaker Change: We expect about.
Speaker Change: Roughly 200 to 300.
Speaker Change: Loss because of the tariff in the U S.
Speaker Change: Intermodal Shun shortages in order to define normal course around doing the oncology alternate ongoing harvest central D var offshore sure Tom <unk>.
Speaker Change: The amount of the <unk>, Jonathan Bush of adjusted hydrogen digital equivalent equal, yes sure Marc.
Speaker Change: So you didn't show in the Eagle 20 out of the normal <unk> to June <unk> transaction volume.
Speaker Change: <unk> mobile network.
Feng Qingfeng: We are already working on it We will announce our plan at the right time in the future Because it must be related to geopolitics It is not convenient to announce these plans now But we are determined to enter the U.S. Currently, we're also exploring our paths and the solutions for the US market. And because the US market is the biggest market for luxury, a premium vehicle segment. In addition to that, Lotus also has relatively high brand awareness in the US market. So definitely the US market will be one of our priorities. In addition to that, we will also keep exploring our feasibility of exporting lifestyle vehicles to the US market.
Speaker Change: So a month in July.
Speaker Change: Well.
Speaker Change: Versus a scalable Hong Kong.
Speaker Change: The Chihuahua.
Speaker Change: Youre bidding essentials.
Speaker Change: In a few in terms of the one <unk>.
Giovanni: Mark This is Giovanni.
Nacho among formula addressing issues within our genomics products.
Giovanni: Finally, we're also exploring our path and our solutions for the U S market and.
Giovanni: Because the U S market is the biggest market luxury or premium vehicles segments. In addition to that losses also have has relatively high brand awareness in the U S market. So essentially the U S market will be one of our priorities. In addition to that we also keep exploring our visibility exports in <unk>.
Giovanni: Our vehicles to the U S market and at this moment.
Feng Qingfeng: And at this moment, we will not be able to disclose any details, but please feel free to stay tuned to our future. What I can tell you today is that production in the U.S. will be one of our choices. The only thing that I may add is that manufacturing in the U.S. could be one of our potential solutions.
Giovanni: We will not be able to disclose any details there. Please.
Giovanni: Stay tuned into our future announcements.
Giovanni: Now a number of cost without the other.
<unk>, let's say goodbye.
Giovanni: The only thing I may add is that.
Speaker Change: Manufacturing in the U S could be one of our potential solutions.
Operator: Thank you. Once again, if you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. We'll now pause a moment to allow for any final questions to register. There are no further questions at this time.
Speaker Change: Thank you once again, if you wish to ask a question. Please press star one on your telephone and wait for your name to be announced.
Speaker Change: We'll now pause amendment to allow for any final questions. Sir at this time.
Speaker Change: There are no further questions at this time.
Demi Zhang: Yeah, thank you, Darcy. Well, um, given the time constraint, I think it will conclude the call very soon. But everyone, thank you very much again for joining us today. If you have any further questions, please feel free to contact our IoT and this concludes the call. Have a very good day, everyone. And thank you very much again. Bye.
Darcy: Yes, Thank you Darcy.
Given the time constraints I think it will conclude the cornerstone.
Speaker Change: Thank you very much against <unk> joining us today.
Speaker Change: If you have any further questions. Please feel free to contact our IR team and this concludes our call have a very good day, everyone and thank you very much again.
Operator: Thank you, that does conclude our conference for today. Thank you for participating, you may now disconnect. Thank you for watching!
Speaker Change: Thank you that does conclude our conference for today. Thank you for participating you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: <unk>.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.