Lotus Technology, Inc. Q4 FY2024 earnings call

• Delivered over 12,000 vehicles in 2024, with a 70% year-on-year increase in Q4 and 20% in Q4 year-on-year.
• Revenue full year was USD 924 million, a 36% year-on-year increase; Q4 revenue was USD 272 million, a 12% year-on-year decrease.
• Achieved 5 consecutive quarters of operating expense reduction through enhanced efficiency plans.
• Lifestyle vehicles up 55% year-on-year, accounting for 57% of total deliveries.
• Europe, home of Lotus brand, saw 180% year-on-year growth, contributing nearly 40% of total deliveries; China 25%, North America 21%, rest of the world 15% with 90% year-on-year growth.
• In Q4, started delivering Emeya in Malaysia, Thailand, Singapore, UAE, and Philippines.
• 2025 progress: Over 12,000 deliveries in first 3 months, reclaimed Lotus trademark in China, facelifted Eletre and Emeya, launched mapless urban NOA in 16 Chinese cities, partnered with CaoCao Mobility for robotaxi pilot in Hangzhou and Suzhou, received Put Option from Geely to acquire 51% of Lotus U.K., plan to launch PHEV in 2025, Emira model year '26 for U.S., and investigation of V8 power system.

In 2024, Lotus Technology delivered over 12,000 vehicles, a year-on-year increase of over 70%, with over 4,500 vehicles delivered in the fourth quarter, a 20% year-on-year increase. Revenue for the full year was USD 924 million, a 36% year-on-year increase, while Q4 revenue was USD 272 million, a 12% year-on-year decrease. Lifestyle vehicles increased by 55% year-on-year and accounted for 57% of total deliveries. Regionally, Europe contributed nearly 40% of total deliveries with a 180% year-on-year increase, China contributed 25%, North America (U.S.) made up 21%, and the rest of the world represented 15% with nearly 90% year-on-year growth.

• 2025 has a detailed plan with improvements over 2024, awaiting Board of Directors approval.
• Robotics revenue achieved USD 22 million from outside customers, with high gross profit margin expected to continue.
• Margin trajectory expected to improve in 2025 and 2026, with model year '26 launch in EU and U.K. aiding margin improvement.
• Put Option acquisition from Geely expected to be completed in 2025, enabling integration of global business under Lotus brand.
• Plan to launch PHEV in 2025 and a new model in 2027 to advance Vision 80 strategy.

• Global trade uncertainties and economic slowdown impacting business.
• U.S. tariffs affecting lifestyle vehicles, with lifestyle vehicles having stopped export to U.S.
• Compliance with EU 7 emission regulations for existing engines.
• Regulatory approvals required for the Put Option acquisition from Geely.

Q: Is there any plan to create a hard core Emira R for the U.S. market?

A: Feng Qingfeng mentioned that U.S. is the largest market for Emira, with V8 investigation ongoing, and considering limited edition models with less weight like carbon fiber in Europe, and may consider similar launches in U.S.

Q: What's the contribution of ADAS revenue over the last year and guidance?

A: Daxue Wang stated 2025 has a detailed plan with improvements, robotics revenue achieved USD 22 million from outside customers, and margin expected to be maintained.

Q: What's the cash burn and runway?

A: Daxue Wang mentioned cash gap and close contact with investors, urging to look at announcements for updates.

Q: Rationale behind recent management shifts?

A: Feng Qingfeng discussed new CFO with finance and capital markets experience, new China sales president with luxury product experience, and other management changes with relevant expertise in luxury brand management.

Q: How will the Put Option impact the company's financials?

A: Daxue Wang said it's a noncash deal, and details will be disclosed after investigation and completion of the acquisition.

Q: What's Lotus' U.S. strategy and sales target?

A: Feng Qingfeng mentioned U.S. tariffs affecting lifestyle vehicles, sportscar sales slightly affected, exploring manufacturing in U.S. as a potential solution, and staying tuned for future announcements on U.S. market plans.