Ecarx Holdings Inc. (ECX) 2023 Q1 法說會逐字稿

Good morning, everyone, and welcome to our First Quarter 2023 Earnings Conference Call. With me today are ECARX Chairman, CEO and Co-Founder, Ziyu Shen, Chief Operating Officer, Peter Cirino, and Chief Financial Officer, Ramesh Narasimhan. As a quick reminder, this call is being recorded.

大家早上好，歡迎參加我們的 2023 年第一季度收益電話會議。今天和我在一起的有 ECARX 董事長、首席執行官兼聯合創始人 Ziyu Shen、首席運營官 Peter Cirino 和首席財務官 Ramesh Narasimhan。快速提醒一下，此通話正在錄音中。

Before we begin the prepared remarks, which will be followed by Q&A. Please note that we may refer to both GAAP and non-GAAP measures. Today's discussion also contains forward-looking statements based on the environment as we currently see it, and as such, does include risks and uncertainties. Please refer to our filings with the SEC for more information on the specific risk factors that could cause actual results to differ materially.

在我們開始準備好的評論之前，隨後將進行問答。請注意，我們可能會同時提及 GAAP 和非 GAAP 指標。今天的討論還包含基於我們目前所見環境的前瞻性陳述，因此確實包含風險和不確定性。請參閱我們向美國證券交易委員會提交的文件，了解有關可能導致實際結果出現重大差異的具體風險因素的更多信息。

With that, I'd like to hand the call over to Ziyu.

有了這個，我想把電話交給子玉。

Thank you, Adam. Hello, everyone, and welcome. Thank you for joining our Quarter 1 Earnings Call. Before I dive into the financial results for the first quarter, I'd first like to recap a few elements of our global strategy and progress. ECARX is ideally positioned to capture share in a large and rapidly evolving market, with an estimated TAM of USD 470 billion by 2030, supported by our differentiated full-stack technology that simply falls and expeditive OEM product development time line, we see a clear path for accelerating growth over the next 5 years as we expand our reach beyond our current base of cloud OEMs and 21-vehicle brands.

謝謝你，亞當。大家好，歡迎光臨。感謝您加入我們的第一季度財報電話會議。在我深入探討第一季度的財務業績之前，我首先想回顧一下我們全球戰略和進展的一些要素。 ECARX 的理想定位是在一個龐大且快速發展的市場中佔據份額，預計到 2030 年 TAM 將達到 4700 億美元，在我們差異化的全棧技術和快速 OEM 產品開發時間表的支持下，我們看到了一條清晰的道路隨著我們將業務範圍擴大到目前的雲 OEM 和 21 個汽車品牌基礎之外，我們將在未來 5 年加速增長。

We have a solid strategy in place to achieve double digital revenue growth. Adjusted EBITDA, profitability and strong free cash flow generation, while remaining depending in our capital allocation. Our focus remains on expanding revenue streams by patterning with global OEMs to meet their evolving needs. Increasing average revenue per car through innovation, continuing to invest in R&D and accelerating collaborations with cutting-edge partners across the globe.

我們制定了堅實的戰略來實現數字收入的雙倍增長。調整後的 EBITDA、盈利能力和強勁的自由現金流產生，同時仍取決於我們的資本配置。我們的重點仍然是通過與全球原始設備製造商合作來擴大收入來源，以滿足他們不斷變化的需求。通過創新提高每輛車的平均收入，繼續投資於研發並加速與全球尖端合作夥伴的合作。

With that, I'd like to give you the highlights of our financial performance during the first quarter, which Ramesh will go into in great detail later.

有了這個，我想向您介紹我們第一季度財務業績的亮點，Ramesh 將在稍後詳細介紹。

We saw revenue of over USD 111 million for quarter 1, up 15% compared to the prior year period in a challenging [macro environment]. This growth was largely driven by an increase in new digital cockpit sales volume and favorable sales mix with higher revenues per unit. Our focus on EVs is continuing to pay off, and we have great visibility into our revenue pipeline through the remainder of the year.

在充滿挑戰的[宏觀環境]中，我們第一季度的收入超過 1.11 億美元，比去年同期增長 15%。這一增長主要是由於新數字駕駛艙銷量的增加和有利的銷售組合以及更高的單位收入推動的。我們對電動汽車的關注正在繼續取得回報，我們對今年剩餘時間的收入渠道有很好的了解。

As we started to roll out product into vehicle brands, including Lotus, Smart, Volvo and Mazda. We achieved gross profit of $31 million, which was up more than 50% compared to the prior year period, driven by increased content per car, new product launches and the continued focus on sourcing efficiencies.

當我們開始將產品推廣到汽車品牌時，包括 Lotus、Smart、沃爾沃和馬自達。我們實現了 3100 萬美元的毛利潤，與去年同期相比增長了 50% 以上，這得益於每輛車的內容增加、新產品發布以及對採購效率的持續關注。

Following our strong performance in 2022, we again saw a significantly improved adjusted EBITDA in quarter 1, as we reduced our losses by 48% compared to the prior year period. Importantly, we remain on track to reach adjusted EBITDA profitability by the end of 2024. As we continue to grow, it is important to remember how we got here, and what our purpose is. ECARX is a global mobility tech provider, working with OEMs to create new vehicle platforms from the ground up. We are one of the only companies within the industry offering a unique vertically integrated full-stack solutions, thus including digital cockpit system, chipset solutions, core operating systems and integrated software stack. These solutions and technologies, which are purely focused for the automotive industry, aim to combine multiple ECUs into a single computing platform, enabling OEMs to develop new applications, services and revenue streams.

繼 2022 年的強勁表現之後，我們在第一季度再次看到調整後的 EBITDA 顯著改善，與去年同期相比我們減少了 48% 的虧損。重要的是，我們仍有望在 2024 年底前實現調整後的 EBITDA 盈利能力。隨著我們的不斷發展，重要的是要記住我們是如何走到這一步的，以及我們的目標是什麼。 ECARX 是一家全球移動技術提供商，與原始設備製造商合作，從頭開始創建新的車輛平台。我們是業內唯一一家提供獨特的垂直集成全棧解決方案的公司之一，因此包括數字駕駛艙系統、芯片組解決方案、核心操作系統和集成軟件堆棧。這些解決方案和技術完全專注於汽車行業，旨在將多個 ECU 組合到一個計算平台中，使 OEM 能夠開發新的應用程序、服務和收入流。

We have a clear roadmap and are focused on further developing a fully integrated solution for a software-enabled vehicle of the future. And with our joint venture with ARM, we were the first to launch a 7-nanometer automotive grade SoC in China. As of April, our solutions have been integrated into our -- into around 5 million cars word wide. As we continue to leverage our strong foundation to further expand internationally, seeing mass production and transaction with mainstream OEMs like Volvo Cars, Mercedes, Mazda and Polestar.

我們有一個清晰的路線圖，並專注於為未來的軟件車輛進一步開發完全集成的解決方案。通過與 ARM 的合資企業，我們率先在中國推出了 7 納米汽車級 SoC。截至 4 月，我們的解決方案已集成到我們的 - 全球約 500 萬輛汽車中。隨著我們繼續利用我們強大的基礎進一步擴展國際市場，我們看到了與沃爾沃汽車、梅賽德斯、馬自達和 Polestar 等主流原始設備製造商的大規模生產和交易。

Next, I would like to review some of the progress we made over the first 3 months of the year, which puts us in strong position for the remainder of the year and emphasizes the power of the ECARX's strategy and playbook. In addition to making strong progress building out our team in London, we opened an R&D center on the West Coast of U.S. and sales and engineering center in Germany.

接下來，我想回顧一下我們在今年前 3 個月取得的一些進展，這使我們在今年剩餘時間里處於有利地位，並強調了 ECARX 戰略和劇本的力量。除了在倫敦的團隊建設方面取得重大進展外，我們還在美國西海岸開設了研發中心，並在德國開設了銷售和工程中心。

We continue to focus on developing our international capabilities to capture growth opportunities in the rapidly growing EV market in North America and Europe. Having showcased our cutting-edge technology and exclusive progression with partners such as AMD at the start of the year, we also (inaudible) our exciting new products (inaudible), which is already scheduled to be in production in the second half year with Volvo, and Lynk & Co.

我們繼續專注於發展我們的國際能力，以抓住北美和歐洲快速增長的電動汽車市場的增長機會。在年初展示了我們與 AMD 等合作夥伴的尖端技術和獨家進展之後，我們還（聽不清）我們令人興奮的新產品（聽不清），該產品已計劃在下半年與沃爾沃一起生產和領克

From a product prospect, we continue our automotive forecast testing program with Super Brain to rate these all-in-one full-stack solution, integrating the digital cockpit, driving and vehicle controls. Peter will elaborate our product lineup in a few minutes.

從產品前景來看，我們繼續與 Super Brain 進行汽車預測測試計劃，對這些集成了數字駕駛艙、駕駛和車輛控制的一體化全棧解決方案進行評級。 Peter 將在幾分鐘內詳細說明我們的產品系列。

We are excited by the opportunities in the large and growing automotive tech industry and see broad trends that will further support strong growth for the years and decades to come. We believe our cutting-edge solutions and the strategic relationships will enable us to continue to capture new market share across geographies. These growth drivers include: first, the shift towards our connected automotive EVs; second, the rise of software-defined vehicle; and lastly, moving to a new platform dynamic that supports faster product development.

我們對龐大且不斷發展的汽車技術行業的機遇感到興奮，並看到將在未來幾年和幾十年進一步支持強勁增長的廣泛趨勢。我們相信，我們的尖端解決方案和戰略關係將使我們能夠繼續在各個地區奪取新的市場份額。這些增長動力包括：首先，我們轉向互聯汽車電動汽車；第二，軟件定義汽車的興起；最後，轉向支持更快產品開發的新平台動態。

Research conducted by McKinsey showed that the TAM of this market is expected to reach almost $0.5 trillion by 2030, and we plan to win more than our fair share in this market. The rise of the software-defined vehicle is [why Eric Li and I found ECARX], as cars continue to involve to become more complex digital devices with greater vehicle autonomy and as towards drivers expectations of their in-car experience increase, the demand for high power, seamlessly connected automotive for compute platforms expands significantly.

麥肯錫進行的研究表明，到 2030 年，該市場的 TAM 預計將達到近 5 萬億美元，我們計劃在該市場贏得超過我們公平份額的份額。軟件定義汽車的興起是 [我和 Eric Li 找到 ECARX 的原因]，隨著汽車繼續成為具有更大車輛自主性的更複雜的數字設備，並且隨著駕駛員對其車內體驗的期望增加，對用於計算平台的高功率、無縫連接的汽車顯著擴展。

Anticipating the clear direction, the market was handling ECARX turns it's focus to EV model several year ago, and is well positioned to take advantage of the growth vertical. With our unique product capabilities, we are best positioned to help OEMs move from a distributed E/E-architecture to a more centralized one with increased computing power, offering a better driver experience and additional benefits to OEMs, such as reduced wiring need, increased the [performance] speed, low BOM costs, all leading to requiring fewer suppliers. Before handing the call over to Peter, I want to thank all of our employees for hard work and dedications to ECARX since our listing in December. We are excited by our results in the first 3 months of 2023, and I believe we are well positioned to deliver on our guidance for the remainder of the year given the industry trend transforming the automotive industry, and our own well-defined growth strategy.

預計到明確的方向，幾年前市場正在處理 ECARX 將其重點轉向 EV 模型，並且處於充分利用垂直增長的優勢。憑藉我們獨特的產品能力，我們最有能力幫助原始設備製造商從分佈式 E/E 架構轉變為具有更高計算能力的更集中的架構，從而為原始設備製造商提供更好的駕駛體驗和其他好處，例如減少佈線需求，增加[性能]速度、低 BOM 成本，所有這些都導致​​需要更少的供應商。在將電話轉交給 Peter 之前，我要感謝我們所有的員工自去年 12 月上市以來對 ECARX 的辛勤工作和奉獻。我們對 2023 年前 3 個月的業績感到興奮，而且我相信，鑑於改變汽車行業的行業趨勢以及我們自己明確的增長戰略，我們有能力在今年剩餘時間內實現我們的指導。

With that, let me pass the call over to Peter Cirino, our Chief Operating Officer.

有了這個，讓我把電話轉給我們的首席運營官 Peter Cirino。

Thank you, Ziyu, and good morning, everyone. One of the key drivers of growth for ECARX has been our focus on innovation. We continue to invest in research and development and to introduce cutting-edge technologies and features in our products, which allows us to stay ahead of the market.

謝謝子瑜，大家早上好。 ECARX 增長的主要驅動力之一是我們對創新的關注。我們不斷投資於研發，並在我們的產品中引入尖端技術和功能，這使我們能夠保持市場領先地位。

We have a significant TAM opportunity ahead of us, and our clearly differentiated product line is designed to capture all segments of that growth opportunity. Our Antora series is designed to fulfill the need of powerful SoCs in high-volume vehicles in the growing EV market. Makalu, one of the most powerful intelligent cockpits available today, designed to push the boundaries of the driver experience with amazing 3D graphics, is powered by AMD and Unreal Engine. And then to power the evolution of autonomy and software-defined vehicles and the future of electronic architecture, we have our all-in-one central compute platform, Super Brain. All of these projects are supported by Cloudpeak, our multi-pillared software system, which is featured in the new Volvo EX30.

我們面前有一個重要的 TAM 機會，我們明顯差異化的產品線旨在抓住這一增長機會的所有部分。我們的 Antora 系列旨在滿足不斷增長的電動汽車市場中大批量車輛對功能強大的 SoC 的需求。 Makalu 是當今最強大的智能駕駛艙之一，旨在通過令人驚嘆的 3D 圖形突破駕駛體驗的界限，由 AMD 和虛幻引擎提供支持。然後，為了推動自主和軟件定義車輛的發展以及電子架構的未來，我們擁有一體化的中央計算平台 Super Brain。所有這些項目都得到 Cloudpeak 的支持，Cloudpeak 是我們的多支柱軟件系統，在新款沃爾沃 EX30 中具有特色。

Now let's switch gears to our product mix. All of our products are designed to be automotive grade, which in our view, is one of the key differentiators of ECARX compared to other industry players. Our Antora 1000 and 1000 Pro are designed to meet the growing demand for system-on-chip in the EV and intelligent vehicle markets. They have a physical safety layer island, which runs independently and needs no virtualization. The Antora 1000 Pro uses SE-Link to provide seamless connection for 2 Antora 1000 SoCs, effectively doubling the computing power. And also, this will provide redundancy for more functions and features. In addition, this additional computing power increases the life cycle of the vehicle.

現在讓我們切換到我們的產品組合。我們所有的產品都設計為汽車級，在我們看來，這是 ECARX 與其他行業參與者相比的主要區別之一。我們的 Antora 1000 和 1000 Pro 旨在滿足電動汽車和智能汽車市場對片上系統不斷增長的需求。他們有一個物理安全層島，獨立運行，不需要虛擬化。 Antora 1000 Pro使用SE-Link為2顆Antora 1000 SoC提供無縫連接，有效提升計算能力一倍。而且，這將為更多功能和特性提供冗餘。此外，這種額外的計算能力增加了車輛的生命週期。

Makalu delivers high-speed gaming performance and supports the latest graphics processing interfaces of PC platforms, ideal for gaming, real-time 3D environment rendering and spatial surrounding audio effects. It offers a very sophisticated in-vehicle experience. We are seeing real interest from OEMs for this product and mass production rollout is expected to begin in early 2024.

Makalu 提供高速遊戲性能並支持 PC 平台最新的圖形處理接口，非常適合遊戲、實時 3D 環境渲染和空間環繞音效。它提供了非常複雜的車載體驗。我們看到原始設備製造商對該產品的真正興趣，預計將於 2024 年初開始量產。

Following ECARX's Makalu, it's the Super Brain Central compute platform, which combines our SE1000 SoC with an advanced AD chipset. This product brings AI performance to its full potential. This is our all-in-one solution that we view as a supercomputing controller that integrates the cockpit, driving and vehicle control with our full stack hardware and software technologies.

繼 ECARX 的 Makalu 之後，它是 Super Brain Central 計算平台，它將我們的 SE1000 SoC 與先進的 AD 芯片組相結合。該產品充分發揮了 AI 性能的潛力。這是我們的一體化解決方案，我們將其視為超級計算控制器，將駕駛艙、駕駛和車輛控制與我們的全棧硬件和軟件技術集成在一起。

The Super Brain will lead to improvements in the performance and efficiency of the electronic architecture and drive the evolution from EVs to intelligent mobile devices. Super Brain will also enable OEMs to reduce the wire harnesses in the vehicle by 5%, cut vehicle engineering costs by 15% and bring a 20% material savings when compared to distributed controllers.

超級大腦將提升電子架構的性能和效率，推動電動汽車向智能移動設備的演進。與分佈式控制器相比，Super Brain 還將使原始設備製造商能夠將車輛中的線束減少 5%，將車輛工程成本降低 15%，並節省 20% 的材料。

Finally, ECARX's Cloudpeak architecture is built to fully meet the functional safety and information security requirements of the vehicle. It supports multiple operating systems and the global mobility ecosystem. It means national and international standards and is compliant with the EAL4 certification.

最後，構建ECARX的Cloudpeak架構，全面滿足整車的功能安全和信息安全需求。它支持多種操作系統和全球移動生態系統。表示國家標準和國際標準，符合EAL4認證。

We work with many OEMs directly serving 21 brands across Asia Pacific and Europe, and we are continuously looking to diversify our customer base and our geographic footprint, as we have done recently with FAW and Mazda. For FAW, we will be supplying our Antora 1000 powered digital cockpit, which is planned for mass production by the end of the year. Lynk & Co will be utilizing our Antora 1000 Pro with Flyme Auto for its new 08 model launching in Q3. We recently announced the mass production of a customized intelligent cockpit product for Changhan's Mazda CX50 model based on our E02 platform. This E02 platform has already been deployed in around 800,000 vehicles across 26 separate vehicles from various OEMs and remains a powerful intelligent cockpit computing platform.

我們與許多原始設備製造商合作，直接為亞太地區和歐洲的 21 個品牌提供服務，並且我們不斷尋求多樣化我們的客戶群和我們的地理足跡，就像我們最近與一汽和馬自達所做的那樣。為一汽提供Antora 1000動力數字座艙，計劃年底量產。 Lynk & Co 將在第三季度推出的新款 08 車型中使用我們的 Antora 1000 Pro 和 Flyme Auto。我們最近宣布量產基於我們E02平台的長漢馬自達CX50定制智能座艙產品。該 E02 平台已經部署在來自不同 OEM 的 26 款獨立車輛中的約 800,000 輛車輛中，並且仍然是一個強大的智能駕駛艙計算平台。

Finally, in Cloudpeak, our digital cockpit software stack, will be integrated into the new all-electric Volvo EX30 SUV in their state-of-the-art infotainment system. We have a flexible business model. In addition to our OEM customers, we also supply 8 Tier 1 automotive suppliers, including Visteon, Neusoft, Baidu and Desay.

最後，在 Cloudpeak 中，我們的數字駕駛艙軟件堆棧將集成到全新的全電動沃爾沃 EX30 SUV 的最先進的信息娛樂系統中。我們有靈活的商業模式。除了我們的 OEM 客戶，我們還供應 8 家一級汽車供應商，包括偉世通、東軟、百度和德賽。

Our focus on developing an automotive tech platform is informed by our deep-rooted automotive knowledge and strategic collaborations. We recognized early on that the best way to deliver great computing power and fantastic experience is to collaborate at the R&D development stage. As many of you know, we have agreements and strong relationships with cutting-edge companies like AMD, ARM, Epic Games, Volvo and SiEngine, all to define the next generation of in-vehicle connectivity and take the digital customer experience to the next level. We remain excited about our wide industry partners and continue to seek collaborations with similarly innovative businesses to improve the cockpit experience and create meaningful differentiation of our product offering.

我們專注於開發汽車技術平台，這得益於我們根深蒂固的汽車知識和戰略合作。我們很早就認識到，提供強大計算能力和出色體驗的最佳方式是在研發開發階段進行協作。正如你們許多人所知，我們與 AMD、ARM、Epic Games、沃爾沃和 SiEngine 等尖端公司簽訂了協議並建立了牢固的關係，所有這些都是為了定義下一代車載連接並將數字客戶體驗提升到一個新的水平.我們仍然對廣泛的行業合作夥伴感到興奮，並繼續尋求與類似創新企業的合作，以改善駕駛艙體驗並為我們的產品創造有意義的差異化。

Looking ahead, we continue to build ECARX into a market leader in the large and growing and rapidly transforming EV market. We continue to invest in our people and in R&D to create the innovative and products and services that meet the evolving needs of our customers.

展望未來，我們將繼續將 ECARX 打造成為龐大、不斷發展和快速轉型的電動汽車市場的市場領導者。我們繼續投資於我們的員工和研發，以創造滿足客戶不斷變化的需求的創新產品和服務。

Now I will turn the presentation over to Ramesh to review our financial results.

現在我將把演示文稿交給 Ramesh 來審查我們的財務結果。

Thank you, Peter, and good morning to all of you. ECARX's first quarter financial results came in strong with our focus on growth and commercial success driving the numbers. We continue to see strong growth throughout the quarter, with the revenues up 16% to $111.1 million compared to the prior year period in a challenging macro environment, where vehicle production year-over-year in China fell 10% year-over-year in Q1, a testament to the continued strong demand for our products and our focus on the EV market.

謝謝你，彼得，大家早上好。 ECARX 第一季度的財務業績表現強勁，因為我們專注於增長和商業成功，這推動了業績增長。我們在整個季度繼續保持強勁增長，在充滿挑戰的宏觀環境下，收入比去年同期增長 16% 至 1.111 億美元，其中中國的汽車產量同比下降 10%第一季度，證明了對我們產品的持續強勁需求以及我們對電動汽車市場的關注。

Our growth was driven by new digital cockpit sales volumes and the portfolio shift from IHU to DHUs. Our business remains robust, and we are confident of achieving our full year revenue guidance of $700 million to $720 million. The results for Q1 also reflect the seasonality of our industry and was in line with our expectations and is factored into the guidance for the year.

我們的增長是由新的數字駕駛艙銷量和產品組合從 IHU 轉向 DHU 推動的。我們的業務依然強勁，我們有信心實現 7 億至 7.2 億美元的全年收入目標。第一季度的結果也反映了我們行業的季節性，符合我們的預期，並被納入了今年的指導方針。

Compared to the prior year period, sale of goods revenue increased by 19%, and while software license revenue was up 140%. Service revenue was around $7 million lower, both driven by contract completions in the period. Gross profit was $30.7 million, up 52% compared to the prior year period. This was mostly a result of an increase in content per car, favorable product mix and a continued focus on sourcing and manufacturing efficiency, along with an increase in margin for software licensing.

與去年同期相比，商品銷售收入增長了 19%，而軟件許可收入增長了 140%。服務收入減少了約 700 萬美元，這兩者均受該期間合同完成的推動。毛利潤為 3070 萬美元，比去年同期增長 52%。這主要是由於每輛車的內容增加、有利的產品組合以及對採購和製造效率的持續關注，以及軟件許可利潤率的增加。

Adjusted EBITDA was negative $17.4 million, a 48% improvement compared to the prior year period, benefiting from higher margins and lower fixed costs, while maintaining investments in core product development. SG&A was 23% of revenue, up from 21% in the prior year as we continue our international expansion while keeping a tight control on costs. We finished the quarter with a cash of $148 million, up 31% compared to the prior quarter, which gives us a solid financial foundation and further strengthens our position in the market.

調整後的 EBITDA 為負 1740 萬美元，較上年同期增長 48%，受益於更高的利潤率和更低的固定成本，同時保持對核心產品開發的投資。 SG&A 佔收入的 23%，高於上一年的 21%，因為我們繼續進行國際擴張，同時嚴格控製成本。本季度結束時，我們的現金為 1.48 億美元，比上一季度增長 31%，這為我們提供了堅實的財務基礎，並進一步鞏固了我們在市場中的地位。

This empowers us to continue to drive innovation, explore new markets and seize strategic partnerships. Although I've presented this slide on previous occasions, it is crucial to emphasize the inherent seasonality within our business. This reminder is especially relevant to anticipate a similar pattern this year, considering the planned launches of new products scheduled for third and fourth quarters.

這使我們能夠繼續推動創新、開拓新市場並贏得戰略合作夥伴關係。儘管我在以前的場合展示過這張幻燈片，但強調我們業務中固有的季節性至關重要。考慮到計劃在第三和第四季度推出的新產品，這一提醒對於預計今年會出現類似模式尤為重要。

As you heard earlier from Ziyu, we have had a pretty full agenda so far this year. And looking forward, we have a number of key milestones to deliver through the balance of the year, including a number of key product launches seeing Antora 1000 and 1000 Pro on the road in a mass rollout for the first time while we continue to expand our international footprint and enhance our engineering capabilities.

正如您早些時候從子玉那裡聽到的那樣，今年到目前為止，我們的議程安排得非常滿。展望未來，我們將在今年餘下時間實現許多關鍵里程碑，包括一系列關鍵產品發布，其中包括 Antora 1000 和 1000 Pro 首次大規模推出，同時我們將繼續擴大我們的業務國際足跡並增強我們的工程能力。

We're also focused on diversifying the business in terms of our customer base and geography. Our first quarter progress on all these metrics gives us confidence in meeting our projections for 2023, and we are reiterating our guidance for revenue to be in the range of $700 million to $720 million, a 38% year-over-year increase at the midpoint. For adjusted EBITDA, we maintain our guidance of achieving breakeven by the end of 2024.

我們還專注於根據客戶群和地理位置實現業務多元化。我們第一季度在所有這些指標上取得的進展使我們有信心實現 2023 年的預測，我們重申我們對收入的指導意見為 7 億至 7.2 億美元，中點同比增長 38% .對於調整後的 EBITDA，我們維持到 2024 年底實現盈虧平衡的指導方針。

To summarize, we continue to see revenue growth and our new product introductions, including the Antora series, Makalu, Super Brain Central computing platform and Cloudpeak software have generated excitement among both our existing customers and potential prospects. These innovative offerings have positioned us as a leading player in the leading market. Both these factors signify our ability to stay ahead of industry trends and meet the growing demand for electric vehicles, which are expected to continue and serve as a strong tailwind for the years to come.

總而言之，我們繼續看到收入增長，我們的新產品介紹，包括 Antora 系列、Makalu、Super Brain 中央計算平台和 Cloudpeak 軟件，在我們現有客戶和潛在客戶中引起了興奮。這些創新產品使我們成為領先市場的領先者。這兩個因素都表明我們有能力保持領先於行業趨勢並滿足對電動汽車不斷增長的需求，預計這種需求將在未來幾年繼續並成為強勁的推動力。

We continue to strengthen the business by adding engineering capacity and by executing our commitment to diversify our customer base and revenues. Lastly, our financial performance continues to create a clear pathway to achieving adjusted EBITDA profitability by the end of 2024.

我們通過增加工程能力和履行我們使客戶群和收入多樣化的承諾來繼續加強業務。最後，我們的財務業績繼續為到 2024 年底實現調整後的 EBITDA 盈利能力創造一條清晰的途徑。

In conclusion, we continue to make significant strides in driving the business forward while benefiting from the secular adoption of electric vehicles and strong demand for our automotive grade products. With the clear path to profitability, we are well positioned for continued success.

總之，我們繼續在推動業務向前發展方面取得重大進展，同時受益於電動汽車的長期採用和對我們汽車級產品的強勁需求。憑藉明確的盈利途徑，我們為持續成功做好了充分準備。

With that, we would like to open up for questions.

有了這個，我們想開放的問題。

(Operator Instructions) We will take our first question, and the question comes from the line of George Gianarikas from Canaccord Genuity.

（操作員說明）我們將提出第一個問題，這個問題來自 Canaccord Genuity 的 George Gianarikas。

My first one is just you've done an admirable job of navigating the headwinds in EV and auto demand globally. Can you just kind of give us a little bit more meat on the bone there and help us understand a little bit of what you're seeing in the marketplace and what gives you confidence in the second half ramp that you just articulated?

我的第一個問題是，您在應對全球電動汽車和汽車需求的逆風方面做得非常出色。你能不能給我們多一點肉，幫助我們了解你在市場上看到的一些東西，以及是什麼讓你對你剛剛闡述的下半場斜坡充滿信心？

George, thanks for joining the call today. And thanks for the question. You certainly -- I think one of the strengths we have for ECARX is just a fantastic market that we participate in. Our segments of the automotive space continues to grow rapidly, and we see continuing strength in terms of demand for our products. About a number of years ago, Ziyu, our CEO, how to focus primarily on electric vehicles, and I think that's providing a good tailwind for what we were able to achieve first quarter, and our continued visibility into balance of the year.

喬治，感謝您今天加入電話會議。謝謝你的提問。你當然 - 我認為我們對 ECARX 的優勢之一就是我們參與的一個夢幻般的市場。我們在汽車領域的細分市場繼續快速增長，我們看到對我們產品的需求持續強勁。大約幾年前，我們的首席執行官子玉如何主要關注電動汽車，我認為這為我們能夠在第一季度實現的目標以及我們對今年餘額的持續可見性提供了良好的推動力。

We've got a number of exciting launches. We talked about the Mazda launch in our earnings call, additional launches with Lynk & Co that we announced in our Cloudpeak software we're launching on the Volvo EX30 later this year. So I think with the continued strength in electric vehicles and these launches, we are pretty confident in our continued progress through the balance of the year.

我們有許多令人興奮的發布。我們在財報電話會議上談到了馬自達的發布，我們在今年晚些時候在沃爾沃 EX30 上發布的 Cloudpeak 軟件中宣布了與 Lynk & Co 的其他發布。因此，我認為隨著電動汽車和這些產品的持續增長，我們對今年餘下時間的持續進步充滿信心。

And just as a follow-up, completely different topic, more long term in nature. Curious as to whether you can give us any update on Super Brain and particularly the SiEngine and the partnership there with ARM, any update, any additional color you can share there would be very much appreciated. Also whether or not you'd be open to other partnerships within the Super Brain ecosystem outside of the SiEngine?

作為後續，完全不同的主題，本質上更長期。想知道您是否可以向我們提供有關 Super Brain 的任何更新，尤其是 SiEngine 以及那裡與 ARM 的合作夥伴關係，任何更新，您可以在那里分享的任何其他顏色將不勝感激。另外，您是否願意與 SiEngine 之外的超級大腦生態系統內的其他合作夥伴開放？

Yes. Certainly. I mean, we definitely see an advantage of ECARX is the technology ecosystem that we work with. So whether that's partnerships that we have with ARM and SiEngine, Volvo cars with HaleyTek on our Cloudpeak software, AMD and Unreal in our Makalu product, those partnerships continue to be, I think, a critical element of our strategy, enabling us to develop products quickly with the best technology and in a cost-effective way and bring them to market.

是的。當然。我的意思是，我們肯定看到 ECARX 的優勢是我們合作的技術生態系統。因此，無論是我們與 ARM 和 SiEngine 的合作夥伴關係，沃爾沃汽車與 HaleyTek 在 Cloudpeak 軟件上的合作，還是 AMD 和 Unreal 在我們的 Makalu 產品上的合作，我認為，這些合作夥伴關係仍然是我們戰略的關鍵要素，使我們能夠開發產品以最好的技術和具有成本效益的方式迅速將它們推向市場。

As we continue to work with SiEngine, I think one of the significant advantage this year is the launch of the 7-nanometer SoC. We'll have that on vehicle in a matter of weeks here and continuing to ramp up fairly aggressively as we go through '23 and '24. So we're excited to see that product roll out. And partnerships will continue to be core to our strategy on a go-forward basis, I think both in the cockpit space and in the central computing space.

隨著我們繼續與 SiEngine 合作，我認為今年的重要優勢之一是 7 納米 SoC 的推出。我們將在幾週內將其安裝在車輛上，並在我們經歷 23 年和 24 年時繼續相當積極地增加。所以我們很高興看到該產品的推出。在未來的基礎上，合作夥伴關係將繼續成為我們戰略的核心，我認為無論是在駕駛艙空間還是在中央計算空間。

We will take our next question, and the next question comes from the line of (inaudible) from HSBC.

我們將提出下一個問題，下一個問題來自匯豐銀行的（聽不清）。

I've got 2 questions. First, on the R&D side, we're reading in the results that we stopped the R&D of the ADAS perception. So could you give us a bit more context on it and break down the key R&D areas for us. And second, could you also update if any order win, especially from the [known], Geely, Daimler, Volvo? Other than these OEMs, any particular nationality or region, we're being focusing on? And how do we steer through the geopolitical tension that might get in the way in terms of breaking into these international OEMs sourcing system?

我有兩個問題。首先，在研發方面，我們正在閱讀結果，我們停止了 ADAS 感知的研發。那麼你能否給我們更多的背景信息並為我們分解關鍵的研發領域。其次，如果有任何訂單獲勝，您能否也更新一下，尤其是來自[已知]、吉利、戴姆勒、沃爾沃的訂單？除了這些原始設備製造商，我們關注的是任何特定的國家或地區？我們如何應對可能阻礙打入這些國際原始設備製造商採購系統的地緣政治緊張局勢？

Yes, sure. I'd be happy to address the question. I mean we continue to invest very heavily in R&D. We've got approximately 70% of our total headcount is engineering focus. As we looked at our internal investments. We felt that our partnership progress was, let's say, at a faster pace, and we chose to focus a lot of our ADAS activities on the partnership side. So with our JICA Intelligent Vehicle partnership as well as Zenseact and Luminar that we've got close relationships with, we believe we have a very good offering to continue to grow in the ADAS space. So it just a matter of adjusting our approach and making sure we're really utilizing the best activities, and that's core to the way that we approach the business.

是的，當然。我很樂意回答這個問題。我的意思是我們繼續在研發方面投入大量資金。我們大約有 70% 的員工專注於工程。當我們查看我們的內部投資時。我們覺得我們的伙伴關係進展比方說更快，我們選擇將我們的許多 ADAS 活動集中在夥伴關係方面。因此，通過我們與 JICA 智能汽車合作夥伴關係以及與我們建立密切關係的 Zenseact 和 Luminar，我們相信我們有一個非常好的產品可以繼續在 ADAS 領域發展。因此，這只是調整我們的方法並確保我們真正利用最好的活動的問題，這是我們開展業務的方式的核心。

Relative to Volvo, I mentioned the EX30 launch is an exciting launch for us. It's a product that will have on-vehicle later this year, and we integrate the Google Automotive Systems, automotive services into that product line. It's a global launch for ECARX, so as that vehicle ramps up, it will be in almost all the world markets. So we continue to advance on a global stage, and we believe it's a great reference product that enables us to continue to make progress in the international marketplace.

相對於沃爾沃，我提到 EX30 的發布對我們來說是一次激動人心的發布。這是一款將於今年晚些時候搭載在汽車上的產品，我們將 Google Automotive Systems 和汽車服務整合到該產品線中。這是 ECARX 的全球發布，因此隨著車輛的增加，它將進入幾乎所有的世界市場。因此，我們繼續在全球舞台上前進，我們相信這是一個很好的參考產品，使我們能夠在國際市場上繼續取得進步。

And if I can just add on the R&D, we continue to invest very heavily to ensure that we stay ahead of the tech curve. And if you look at our spending 60% to 70% of our OpEx is primarily focused on R&D, and we'll continue to invest in R&D going forward as well. In terms of your second question, in terms of diversifying our revenue, we're continuously focused on that. We have established our international offices. We also have established engineering centers in both U.S. and in Germany, where we are establishing sales and engineering service centers, again, to be very close to potential customers where we're continuously having some very exciting discussions about future opportunities. While we cannot mention any names today, it is something that, as a business, we are very, very closely following up and implementing.

如果我可以增加研發，我們將繼續大量投資以確保我們保持領先於技術曲線。如果你看看我們 60% 到 70% 的運營支出主要集中在研發上，我們也將繼續投資研發。關於你的第二個問題，就我們的收入多元化而言，我們一直專注於此。我們已經建立了國際辦事處。我們還在美國和德國建立了工程中心，我們正在那裡建立銷售和工程服務中心，再次非常接近潛在客戶，在那裡我們不斷地就未來的機會進行一些非常激動人心的討論。雖然我們今天不能提及任何名字，但作為一家企業，我們正在非常、非常密切地跟進和實施。

We will take our next question, the next question comes from the line of (inaudible) from CICC.

我們將提出下一個問題，下一個問題來自 CICC 的（聽不清）。

Great. Congratulations to the results for quarter 1. So actually, I have 4 questions. So I'll just begin one by one. The first one is actually we have noticed that the quarter 1 revenue actually took 14% of the forecast revenue for 2023. So could you help us do a breakdown on the quarterly revenue for this year's revenue forecast? That's the first question.

偉大的。祝賀第一季度的結果。實際上，我有 4 個問題。所以我將一一開始。第一個其實我們注意到第一季度的收入實際上佔了2023年預測收入的14%。那麼你能幫我們對今年的收入預測做一個季度收入的細分嗎？這是第一個問題。

Sorry, I didn't really understand the question. Do you want a breakdown of Q1 revenue?

對不起，我真的不明白這個問題。你想要第一季度收入的明細嗎？

Well, actually, I want break down on the quarterly revenue for this year, like the second quarter, third quarter, fourth quarter. Because we have noticed that the revenue actually took a larger percentage if we go under the roads, reaching the end of the year, usually like [30%] from last year. Could you give us a guidance on the percentage? Yes, please?

好吧，實際上，我想細分今年的季度收入，比如第二季度、第三季度、第四季度。因為我們注意到，如果我們走下路，到年底，收入實際上佔了更大的比例，通常是去年的 [30%]。你能給我們一個百分比的指導嗎？是的，請？

Yes, sure. I mean I think it's one of the key things that we addressed in our full year earnings. In terms of the seasonality, we always find the Q1 to be the smallest in terms of the seasonality and Q4 to be the strongest. And we are not seeing anything different this year. It's consistent with what we have said in the past. And we have said in past that Q1 is approximately about 16% to 17%, Q2 in the range of about 20%, Q3 similar to that and then Q4 about 40%. So that's what we are anticipating in 2023 as well in that range compared to the overall full year revenue. Of course, you've got to overlay the fact that, as we mentioned earlier, we have got Q3, Q4 new product launches that will accelerate on top of the seasonality. So you have to take that into consideration as well. But typically, this is the seasonality that we see in the market.

是的，當然。我的意思是我認為這是我們在全年收益中解決的關鍵問題之一。在季節性方面，我們總是發現 Q1 的季節性最小，Q4 最強。今年我們沒有看到任何不同之處。這與我們過去所說的是一致的。我們過去說過，Q1 大約是 16% 到 17%，Q2 在大約 20% 的範圍內，Q3 與此類似，然後 Q4 大約是 40%。因此，與全年總收入相比，這就是我們對 2023 年以及該範圍內的預期。當然，你必須強調一個事實，正如我們之前提到的，我們有第三季度、第四季度的新產品發布，這些新產品的發布將在季節性之上加速。所以你也必須考慮到這一點。但通常，這是我們在市場上看到的季節性。

Okay. So my question is like so far Antora 1000 Pro, as we have seen that it is launched in Lynk & Co 08 in quarter 3, so my question is that, could you help us to forecast on the revenue that can be generated from this product in quarter 3 this year?

好的。所以我的問題就像到目前為止的 Antora 1000 Pro，因為我們已經看到它在第三季度在 Lynk & Co 08 中推出，所以我的問題是，你能幫我們預測一下這個產品可以產生的收入嗎今年第三季度？

Certainly, we anticipate that we're confident that product will launch. We're working very closely with Lynk & Co to make sure there is a launch of successful vehicle under our supply chain lined up. And we expect it to ramp this year. We've got additional launches in Antora 1000 and Antora 1000 Pro across multiple brands next year. We don't disclose specific revenue by product lines, but it only contributes to the ramp-up you've seen in the latter half of the year required.

當然，我們預計我們有信心推出該產品。我們正在與 Lynk & Co 密切合作，以確保在我們的供應鏈下成功推出車輛。我們預計它今年會增加。明年我們將在多個品牌中推出更多的 Antora 1000 和 Antora 1000 Pro。我們不會按產品線披露具體收入，但它只會有助於您在下半年看到的增長。

Okay, that's fine. So the third question I wanted to ask is that, how would you expect your service revenue and gross margin trends in maybe the coming year or the next 2, 3 quarters?

好的，沒關係。所以我想問的第三個問題是，您如何看待來年或未來 2、3 個季度的服務收入和毛利率趨勢？

I mean, look, the service revenue is very seasonal. I mean, when I says seasonal, it's not based on calendarization, but it depends on contract completion. And we -- that will be in line with contracts that we have got in place. But as I said, overall, we are still very much focused on, and confident on delivery of the $700 million to $720 million. And we've taken into account the contracts or the service revenue that will come into place this year within that. But it is very clearly driven by a specific contracts that we've got in place.

我的意思是，看，服務收入是非常季節性的。我的意思是，當我說季節性時，它不是基於日曆，而是取決於合同的完成情況。我們——這將符合我們已經簽訂的合同。但正如我所說，總的來說，我們仍然非常關注並有信心交付 7 億至 7.2 億美元。我們已經考慮了今年將在其中實施的合同或服務收入。但這很明顯是由我們已經簽訂的特定合同驅動的。

Let me know, what's the relative size of the contract, or is that clear currently?

讓我知道，合同的相對規模是多少，或者目前是否明確？

Well, it varies. It depends on the level of customization that we do for different OEMs. We obviously don't go into the details of what level of customization because that would be relating to the confidential information what they expect in the future products. But yes, the level of contracts is driven by what customer experience, the OEM is wanting in its products and its product position.

好吧，它會有所不同。這取決於我們為不同 OEM 所做的定制級別。我們顯然不會深入了解定制級別的細節，因為這與他們在未來產品中期望的機密信息有關。但是，是的，合同的水平是由客戶體驗驅動的，原始設備製造商希望其產品及其產品定位。

Okay. Right. And for the gross margin trends, could you please elaborate on it?

好的。正確的。對於毛利率趨勢，您能否詳細說明一下？

Yes. I mean we got a gross margin of 28% this year overall. We are expecting that trend to continue through this year. Of course, in the second half, we have new products coming through. But overall, I think for the year, we are expecting gross margin to be in that range.

是的。我的意思是我們今年整體的毛利率為 28%。我們預計這一趨勢將持續到今年。當然，在下半年，我們會有新產品問世。但總的來說，我認為今年，我們預計毛利率將在該範圍內。

Sorry, I didn't get your last senses. So it's around 25% for this year...

對不起，我沒有得到你最後的感覺。所以今年大約是25%...

Yes. Overall, we are expecting the gross margin to be in this range.

是的。總體而言，我們預計毛利率將在此範圍內。

Okay. And my last question is regarding the percentage of revenue generated from non-JV OEMs. So could you help us do a brief elaboration on like the progress of ECARX getting the contracts from non-JV OEMs? And what are the revenues generated from these contracts, please?

好的。我的最後一個問題是關於非合資 OEM 產生的收入百分比。那麼您能否幫我們簡單介紹一下ECARX從非JV OEM獲得合同的進展情況？請問這些合同產生的收入是多少？

So yes, so this Ziyu speaking. Thank you for the question. So I think in quarter 1, we have already announced FAW Group partnership. That's very significant milestone for us. We already got very confirmed conformation from FAW Group for Antora series product collaboration. And also 2 weeks ago, also, we announced Changan Mazda SOP launch. That's also a very important milestone for us for E02 platform. We're already production long years. I think that is current sale, we already disclosed the non-JV OEM partnership units. Of course, the team is trying -- working very hard and (inaudible). And we also have very strong confidence to distribute our technology to more and more Chinese domestic OEMs and the global OEMs together. Hello? Hello? Can you hear me?

所以是的，所以這個子玉在說話。感謝你的提問。所以我認為在第一季度，我們已經宣布了與一汽集團的合作夥伴關係。這對我們來說是非常重要的里程碑。對於安托拉系列產品的合作，我們已經從一汽集團得到了非常肯定的確認。同樣在 2 週前，我們還宣布了長安馬自達 SOP 的發布。對於我們E02平台來說，這也是一個非常重要的里程碑。我們已經生產多年了。我認為這是當前的銷售，我們已經披露了非合資 OEM 合作單位。當然，團隊正在努力——工作非常努力並且（聽不清）。我們也非常有信心將我們的技術一起推廣給越來越多的中國本土整車廠和全球整車廠。你好？你好？你能聽到我嗎？

It seems the participants have muted themselves. One moment.

參與者似乎已經將自己靜音了。一瞬間。

Could you hear me?

你能聽見我？

Yes, we can hear you.

是的，我們能聽到你的聲音。

Great. So my previous question is like, could you help to a rough estimation regarding the revenue -- actually, the portion of revenue that generated from non-JV OEMs maybe by the end of this year? Is it possible to do this kind of estimation by this time?

偉大的。所以我之前的問題是，你能幫我粗略估計一下收入嗎——實際上，非合資 OEM 產生的收入部分可能會在今年年底出現？到時候能不能做這種估算？

Yes. as you said in the past, we will continue to drive the diversification of revenue by our customer base. But we certainly anticipate the diversification to improve. As we launch new products in Volvo and as Ziyu mentioned, with FAW early next year, I think we take a longer-term view in terms of diversifying our customer revenue rather than taking a 12-month view because, as you very well known, with automotive contracts in place, it takes about 24 months and sometimes even 36 months to implement. So what is really important is that we take a longer-term view in terms of diversification objectives rather than looking at it year by year. So I think it is something that when we make announcements on new contracts, you will get to see more and more of customer base that -- where we have opportunity to diversify.

是的。正如您過去所說，我們將繼續推動客戶群收入的多元化。但我們當然預計多元化會有所改善。當我們在沃爾沃推出新產品時，正如 Ziyu 提到的那樣，明年初將與一汽合作，我認為我們在實現客戶收入多元化方面採取更長遠的眼光，而不是採取 12 個月的眼光，因為正如你所熟知的那樣，有了汽車合同，實施大約需要 24 個月，有時甚至需要 36 個月。因此，真正重要的是我們在多元化目標方面採取更長遠的眼光，而不是逐年審視。所以我認為當我們宣布新合同時，你會看到越來越多的客戶群——我們有機會實現多元化。

We will take our next question, your next question comes from the line of Derek Soderberg from Cantor Fitzgerald.

我們將回答下一個問題，您的下一個問題來自 Cantor Fitzgerald 的 Derek Soderberg。

I wanted to ask and maybe just a question for Peter. If you could speak a bit more about the Makalu platform. There's a lot of power in the solution. Curious if you can talk about what portion of the market is sort of ready for this level of computing power? And how you expect the Makalu ramp to play out? And then if you could just talk about the interest level and feedback around Makalu as well, that would be great.

我想問，也許只是問彼得一個問題。如果你能多談談馬卡魯平台。解決方案中有很多功能。想知道您是否可以談談市場的哪一部分已經為這種級別的計算能力做好了準備？您希望馬卡魯坡道的結果如何？然後，如果您也可以談談對馬卡魯峰的興趣水平和反饋，那就太好了。

Derek, good to hear from you. Thanks for the question. We mentioned that we're working pretty aggressively on getting Makalu out in the market. We've already announced that, that product will be launched late this year, early next year as it ramps up. In that launch, we will also use a lot of 3D environments, and we think that will bring a great experience to the vehicle. Additionally, on top of that launch, we've also announced that Smart will be adopting that globally -- adopting the Makalu product globally for their brand. I think we're quite excited around both solutions as being fantastic user experiences that those OEMs will be able to bring to customer base.

德里克，很高興收到你的來信。謝謝你的問題。我們提到我們正在非常積極地努力讓 Makalu 進入市場。我們已經宣布，該產品將於今年晚些時候推出，明年初隨著它的增加而推出。在那次發布中，我們還將使用大量的 3D 環境，我們認為這將為車輛帶來出色的體驗。此外，除了此次發布之外，我們還宣布 Smart 將在全球範圍內採用該產品——在全球範圍內為其品牌採用 Makalu 產品。我認為我們對這兩種解決方案感到非常興奮，因為這些 OEM 能夠為客戶群帶來美妙的用戶體驗。

We're continuing to work with a number of different OEMS to broaden the adoption of Makalu. And I think that we do get some excitement around that product, especially with the 3D capabilities. And I think we'll continue to talk about some exciting adoption to that product as we go through next year.

我們將繼續與許多不同的原始設備製造商合作，以擴大對馬卡魯的採用。我認為我們確實對該產品感到興奮，尤其是 3D 功能。我認為我們將在明年繼續討論對該產品的一些令人興奮的採用。

Got it. That's helpful. And then, Ramesh, you guys have a pretty clear product roadmap that you spoke about during your Investor Day, and you guys are continuing to invest in R&D, and you've got these product launches coming. Can you talk about your cash position, and how you feel about where that is for the year just as it relates to funding further growth?

知道了。這很有幫助。然後，拉梅什，你們有一個非常清晰的產品路線圖，你們在投資者日談到過，你們正在繼續投資研發，你們已經推出了這些產品。你能談談你的現金狀況，以及你對今年的現金狀況有何看法，因為它與為進一步增長提供資金有關？

Sure, Derek. Good to talk to you again. We started the year with $112 million in terms of cash. During the quarter, our cash balance actually improved, and we ended up at $148 million. I think we have a very strong cash balance right now, and we are comfortable that the business has got sufficient cash to support continuing investment in R&D going forward. Of course, like any business, if there is a -- if we feel there is a need to raise further funding, then at that time, we will evaluate what options we have and make the decision going forward. But currently, we are very, very confident with the cash balances that we've got.

當然，德里克。很高興再次和你交談。今年年初，我們的現金為 1.12 億美元。在本季度，我們的現金餘額實際上有所改善，最終達到 1.48 億美元。我認為我們現在擁有非常強勁的現金餘額，我們很高興該業務有足夠的現金來支持未來對研發的持續投資。當然，與任何企業一樣，如果有——如果我們覺得有必要籌集更多資金，那麼到那時，我們將評估我們有哪些選擇並做出下一步的決定。但目前，我們對我們擁有的現金餘額非常非常有信心。

We will take the next question, your next question comes from the line of Shelley Wang from Morgan Stanley.

我們將回答下一個問題，您的下一個問題來自摩根士丹利的 Shelley Wang。

I have 2 questions from my side. One, just a follow-up on the customer expansion. So when we supply to the non-JV brands, I mean, what's our like a competitive advantage comparing to our -- like our peers?

我有兩個問題。第一，只是對客戶擴展的跟進。因此，當我們向非合資品牌供貨時，我的意思是，與我們的同行相比，我們的競爭優勢是什麼？

Yes, sure. I'll take a shot at that. We think that ECARX brings a number of advantages to the market. Because as we look at our capabilities, first, we're between ECARX and the strong partnerships and joint ventures that we have, we've got the ability to deliver product from sales into cloud services in a fully integrated stack that enables us to understand the system and bring the best platforms into the market. Being a pure-play automotive company, we've got experience in launching many vehicles and ensuring that our product line is very focused on the automotive industry and delivering advantages to the automotive OEMs based on the knowledge of the system -- the system knowledge that we bring to play.

是的，當然。我會嘗試一下。我們認為 ECARX 為市場帶來了許多優勢。因為當我們審視我們的能力時，首先，我們處於 ECARX 與我們擁有的強大合作夥伴關係和合資企業之間，我們有能力在一個完全集成的堆棧中將產品從銷售交付到雲服務，這使我們能夠理解系統，並將最好的平台推向市場。作為一家純粹的汽車公司，我們擁有推出許多車輛的經驗，並確保我們的產品線非常專注於汽車行業，並根據系統知識為汽車原始設備製造商提供優勢——系統知識我們帶來玩。

With our relationship with the JV brands, we very much are there helping to craft the vehicle road map on day 1 when vehicles are born. This enables us to bring our technology into vehicles very quickly. And as we talk to future customers, we're often talking about products that are on the road and successfully delivering great experiences to customers and to the OEMs and rather than talking about engineering prototypes and activities like that.

憑藉我們與合資品牌的關係，我們在車輛誕生的第一天就幫助制定了車輛路線圖。這使我們能夠非常快速地將我們的技術應用到車輛中。當我們與未來的客戶交談時，我們經常談論正在路上並成功地為客戶和原始設備製造商提供出色體驗的產品，而不是談論工程原型和類似的活動。

And then lastly, we've got a very strong technology partnership ecosystem that we see ourselves at the center of and kind of the architect of that system and bringing technologies like we've talked about here with AMD, our joint venture with ARM, our joint venture with HaleyTek where we're bringing the Google Automotive software into the vehicle and the Google Automotive services. And we see -- just to name a few, and we see this technology ecosystem is critical to the way that we're able to develop our systems and bring fantastic experience in the vehicle.

最後，我們擁有一個非常強大的技術合作夥伴生態系統，我們將自己視為該系統的中心和架構師，並帶來了我們與 AMD、我們與 ARM 的合資企業、我們的與 HaleyTek 的合資企業，我們將 Google Automotive 軟件引入車輛和 Google Automotive 服務。我們看到 - 僅舉幾例，我們看到這個技術生態系統對於我們能夠開發我們的系統並為車輛帶來出色體驗的方式至關重要。

And if I can just add a couple of points. We see ourselves as leading in the leading market. And what that means is we are on top of the (inaudible) that driving a lot of innovation. So that's a critical competitive advantage that we have got. And we have also said that we are -- we believe we are unique in terms of the vertical integration. What that means is that we are very, very cost competitive when it comes to delivering advanced products, which I also believe is a very critical cost advantage that we have in the market.

如果我可以補充幾點。我們認為自己在領先市場處於領先地位。這意味著我們處於推動大量創新的（聽不清）之上。所以這是我們所擁有的關鍵競爭優勢。我們還說過，我們是——我們相信我們在垂直整合方面是獨一無二的。這意味著我們在交付先進產品方面具有非常非常具有成本競爭力，我也認為這是我們在市場上擁有的一個非常關鍵的成本優勢。

Got it. Very clear. And my second question is about the [price cut] concern. So we are seeing like the car makers in China are aggressively cutting retail prices this year. So from -- like our side, do we feel like will car makers pass the cost pressure to us, like asking for the price cap or used like it fewer intelligent cockpit features? And what's our strategy if OEMs come to us for more price cuts?

知道了。非常清楚。我的第二個問題是關於 [降價] 的擔憂。所以我們看到中國的汽車製造商今年正在積極削減零售價格。因此，從我們這邊來看，我們是否覺得汽車製造商會將成本壓力轉嫁給我們，比如要求價格上限或使用更少的智能駕駛艙功能？如果原始設備製造商來找我們進一步降價，我們的策略是什麼？

Yes. I think it's very important to distinguish what ECARX offers versus traditional automotive components. Where we are seeing as a value-add differentiator from an automaker perspective. So it's not a traditional pricing negotiation. It is what problem are we trying to solve for the OEM, and what value add we bring to the table in terms of the digital customer experience. So I think it's more a question of what we can deliver rather than more about a pricing pressure. So we're not the traditional OEM customer who makes a bracket, and we want it cheaper by another $0.10. That's not the kind of conversations we have. So it's really about enhancing the product value for the OEM and the customer experience ultimately.

是的。我認為將 ECARX 提供的產品與傳統汽車零部件區分開來非常重要。從汽車製造商的角度來看，我們將其視為增值差異化因素。所以這不是傳統的定價談判。這是我們要為 OEM 解決的問題，以及我們在數字客戶體驗方面帶來的附加值。所以我認為這更多的是我們可以提供什麼的問題，而不是定價壓力。所以我們不是製造支架的傳統 OEM 客戶，我們希望它再便宜 0.10 美元。那不是我們進行的那種對話。因此，這實際上是為了最終提高 OEM 的產品價值和客戶體驗。

We will take our next question, and your next question comes from the line of (inaudible) from Jefferies.

我們將回答下一個問題，您的下一個問題來自 Jefferies 的（聽不清）。

I have 2 questions. My first question is on the industry front. How do you evaluate the impact on the value chain if Tesla rolls out FSD in China? And my second question is with regard to your next-generation product Antora 1000 Pro, as the integration of digital cockpit and ADAS functions on 1 chip seems becomes the new norm, I'm wondering, could you please compel your product with Qualcomm's recently released Ride Flex SoC in terms of the functionality as well as the pricing?

我有兩個問題。我的第一個問題是關於行業方面的。如果特斯拉在中國推出 FSD，您如何評估對價值鏈的影響？我的第二個問題是關於你的下一代產品 Antora 1000 Pro，因為在一個芯片上集成數字駕駛艙和 ADAS 功能似乎成為新常態，我想知道，你能不能用高通最近發布的產品強制你的產品在功能和定價方面乘坐 Flex SoC？

I'll take the first one. Relative to ADAS, we have got a tremendous amount of activity across all markets with -- in the ADAS space. ECARX, I think, is quite excited with the developments that we're bringing to market specifically with our JICA joint venture. We're working very closely with that system, and we anticipate that we'll continue to make some great announcements in the future with how we bring that product forward. Additional we've got a number of partnerships that we continue to have in place with Volvo and Zenseact and Luminar, and we're quite -- we feel quite confident in the way we're approaching the ADAS market and developments that will take place there and the place that ECARX's will play in that future.

我要第一個。相對於 ADAS，我們在 ADAS 領域的所有市場都有大量的活動。我認為，ECARX 對我們通過 JICA 合資企業推向市場的發展感到非常興奮。我們正在與該系統密切合作，我們預計我們將在未來繼續發布一些關於我們如何推進該產品的重要公告。此外，我們與沃爾沃、Zenseact 和 Luminar 建立了一些合作夥伴關係，我們非常 - 我們對我們進入 ADAS 市場的方式和即將發生的發展充滿信心那里以及 ECARX 在未來將發揮作用的地方。

And then relative to the Qualcomm product line, the -- I think when we look at the SoC roadmap for ECARX, especially when you look at the Antora 1000 product and its direct competitor, the Qualcomm 8155, there are a number of use cases where we see a significant advantage in the way that we've designed that system and brought DDR5 memory into the vehicle and optimized the interfaces that there are use cases where we see up to a 30% performance enhancement versus the direct Qualcomm product line. And I think we will -- we continue to believe we've got a strong road map in working with SiEngine to bring great SoCs that are both cost competitive and future competitive into the market.

然後相對於高通產品線，我認為當我們查看 ECARX 的 SoC 路線圖時，尤其是當您查看 Antora 1000 產品及其直接競爭對手高通 8155 時，有許多用例我們在設計該系統並將 DDR5 內存帶入車輛並優化接口的方式中看到了顯著優勢，在某些用例中我們看到與直接高通產品線相比性能提升高達 30%。而且我認為我們會 - 我們仍然相信我們有一個強大的路線圖與 SiEngine 合作，將具有成本競爭力和未來競爭力的優秀 SoC 推向市場。

We will take our next question, your next question comes from the line of Suji Desilva from Roth Capital.

我們將回答下一個問題，您的下一個問題來自 Roth Capital 的 Suji Desilva。

So on the Super Brain central compute platform, I think you talked about some potential BOM savings, perhaps some wiring and so forth. Can you elaborate there and maybe how that compares to the competitors in terms of the advantage there?

所以在 Super Brain 中央計算平台上，我想你談到了一些潛在的 BOM 節省，也許是一些佈線等等。您能否在那裡詳細說明，也許就那裡的優勢而言，與競爭對手相比如何？

Yes, Suji, great, thanks for the question. Thanks for joining us today. I think central compute has got the potential to unlock a lot of potential in the vehicle around savings from a BOM perspective, from a vehicle infrastructure perspective, and we're quite excited about the Super Brain product. We're still -- we still have that product in development, so not yet on vehicle, but we anticipate that will come in the near term here. And then we'll -- we anticipate we will have an official launch date, I would say, in the next 6 to 12 months. So we're excited about the developments with that product and the potential that it can bring to the vehicle.

是的，Suji，太好了，謝謝你的提問。感謝您今天加入我們。我認為，從 BOM 的角度和車輛基礎設施的角度來看，中央計算有潛力在車輛中釋放大量潛力，我們對 Super Brain 產品感到非常興奮。我們仍然 - 我們仍在開發該產品，因此尚未上車，但我們預計這將在短期內出現。然後我們將 - 我們預計我們將在未來 6 到 12 個月內有一個正式的發布日期。因此，我們對該產品的發展及其為車輛帶來的潛力感到興奮。

I think we've quoted that we see significant savings from electronic infrastructure perspective in the vehicle, both from consolidating additional ECUs together and creating savings from that perspective as well as the wiring savings that we've quoted in vehicle that we would anticipate coming from that application as well.

我想我們已經引用過，我們從車輛的電子基礎設施角度來看可以節省大量資金，包括將額外的 ECU 整合在一起並從該角度節省資金，以及我們在車輛中引用的我們預計來自的佈線節省該應用程序也是如此。

Okay. Great. And then also, I was just curious on the -- in your attempt to diversified geographically. You placed your U.S. office, I believe, in California. I'm just curious on the thinking behind that location? Is it closer to tech resources versus the -- where the car companies are? Just curious on that thinking.

好的。偉大的。然後，我只是好奇 - 你試圖在地理上多樣化。我相信你把你的美國辦事處設在加利福尼亞。我只是好奇那個位置背後的想法？與汽車公司所在的位置相比，它更接近技術資源嗎？只是對這種想法感到好奇。

Sure. I mean we're continuing to expand our footprint to serve customers effectively. So we mentioned today our engineering and sales center that will be ramping up in Germany and with hiring well on the way there. Our activities in California tend to be focused today on SoC IP development. And we believe that's a fantastic place for talent and driving effective capabilities in that space. But we also see it as an opportunity to build from as we continue to approach potential customers in North America and hope that it serves as a launching pad for those activities.

當然。我的意思是我們正在繼續擴大我們的足跡以有效地為客戶服務。因此，我們今天提到了我們的工程和銷售中心，該中心將在德國擴大規模，並在此過程中招聘到大量人才。今天，我們在加利福尼亞的活動往往集中在 SoC IP 開發上。我們相信這是人才和推動該領域有效能力的絕佳場所。但我們也將其視為一個機會，因為我們將繼續接觸北美的潛在客戶，並希望它能成為這些活動的跳板。

There seems to be no further questions. I would like to hand back for closing remarks.

似乎沒有進一步的問題。我想返回結束語。

Yes. If I can thank you very much. I just wanted to thank everyone for joining the call today. As we've mentioned, as a management team, we are very excited about ECARX growth story, and we're very confident on delivering the key milestones that we went through today. And once again, thank you for very insightful questions, and I appreciate that. Thanks, everyone.

是的。如果可以的話，萬分感謝。我只是想感謝大家今天加入電話會議。正如我們所提到的，作為一個管理團隊，我們對 ECARX 的成長故事感到非常興奮，我們對實現今天所經歷的關鍵里程碑充滿信心。再次感謝您提出非常有見地的問題，對此我表示感謝。感謝大家。