Lotus Technology Inc (LOT) 2024 Q4 法說會逐字稿

Thank you for standing by and welcome to the Lotus Technology, Inc., fourth quarter and full-year 2024 earnings conference call. (Operator Instructions)

感謝您的支持，歡迎參加 Lotus Technology, Inc. 2024 年第四季和全年財報電話會議。（操作員指示）

I would now like to hand the conference over to Ms. Demi Zhang, Head of IR. Please go ahead.

現在我想將會議交給投資人關係主管 Demi Zhang 女士。請繼續。

Thank you, Darcy. Good morning, good afternoon and good evening, everyone. Thank you for joining Lotus Tech's fourth quarter and full-year 2024 earnings call. This is Demi Zhang, the Head of IR at Lotus Tech.

謝謝你，達西。大家早安、下午好、晚上好。感謝您參加 Lotus Tech 2024 年第四季和全年財報電話會議。我是 Lotus Tech 投資者關係主管 Demi Zhang。

I'm very honored to introduce company management with us today, CEO, Qingfeng Feng; and the CFO, Daxue Wang. On today's call, we'll start with the prepared remarks from CFO and the CEO first and then kick off the Q&A session.

非常榮幸今天能跟大家介紹公司管理階層，執行長馮慶峰；以及財務長王大學。在今天的電話會議上，我們將首先聽取財務長和執行長的準備好的發言，然後開始問答環節。

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 Litigation Reform Act of 1995 and Forward-looking statements involving current risks and uncertainties. As such, the company's actual results may be materially different from the view expressed today.

在我們繼續之前，請注意，今天的討論將包含根據美國 1995 年私人證券訴訟改革法案的安全港條款做出的前瞻性陳述以及涉及當前風險和不確定性的前瞻性陳述。因此，該公司的實際業績可能與今天表達的觀點有重大差異。

So 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.

因此，有關風險和不確定性的更多資訊包含 Lotus Tech 向美國證券交易委員會提交的相關文件中。除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。

Please also note that our earnings press release and this conference call will include disclosure of non-audited GAAP financial information, as well as unaudited non-GAAP financial measures. Please refer to our press release, which contains a reconciliation of unaudited and non-GAAP measures to comparable GAAP measures. Which you can find at ir@group/lotus.com.

另請注意，我們的收益新聞稿和本次電話會議將揭露未經審計的 GAAP 財務資訊以及未經審計的非 GAAP 財務指標。請參閱我們的新聞稿，其中包含未經審計和非 GAAP 指標與可比較 GAAP 指標的對帳。您可以在 ir@group/lotus.com 找到它。

With that, I'd like to turn the call over to our CFO, Mr. Wang.

接下來，我想將電話轉給我們的財務長王先生。

Okay. Thank you. Hello, distinguished shareholders, analysts, and members of the press. Thank you very much for joining our Q4 and full-year 2024 earnings release. My name is Dauxe Wang, Chief Financial Officer of Lotus. I would like to take this opportunity to brief you the financial results of the company.

好的。謝謝。尊敬的各位股東、分析師、媒體朋友，大家好。非常感謝您參加我們的 2024 年第四季和全年收益發布會。我叫 Dauxe Wang，是 Lotus 的財務長。我想藉此機會向大家通報一下公司的財務表現。

In 2024, the company delivered over 12,000 vehicles, reflecting a year-on-year increase of over 70%. For the fourth quarter, all 4,500 countries 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.

2024年，公司汽車交車量超過1.2萬輛，較去年同期成長超過70%。第四季度，全球4,500個國家均已交付車輛，較去年同期成長20%。考慮到全球貿易的不確定性和經濟放緩，我們認為這是一個顯著的成長。

As for the revenue, although the fourth-quarter results were narrowed by 12% year on year to USD272 million, the company gained the increase of 36% year-on-year increase to USD924 million over the full year. 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 enhanced efficiency enhancement plans.

營收方面，雖然第四季業績年減12%至2.72億美元，但全年營收年增36%至9.24億美元。我們要強調的另一個成就是我們已經連續五個季度實現了營運費用的削減。強化效能提升計畫的嚴格執行。

Now, I would like to further break down our sales by category and by region. In terms of the lifestyle vehicles increased by 55% year on year and accounted for 57% of the total deliveries as well. By 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.

現在，我想進一步按類別和地區細分我們的銷售額。生活風格類汽車年增55%，佔總交付量的57%。從區域來看，蓮花品牌的發源地歐洲持續擴張，較去年同期成長約180%，貢獻了總交付量的近40%。

China and the second largest market for Lotus contributed one quarter of the total deliveries. North America, mainly in the United States, surged by [415%] in 2024, making up 21% of the company's total deliveries. And the rest of the world regions represented 15% of the total with the nearly 90% year-on-year growth. For your attention in the fourth quarter, we started to deliver EMEYA in Malaysia, Thailand, Singapore, UAE, and Philippines.

中國是 Lotus 的第二大市場，貢獻了總交付量的四分之一。以美國為主的北美地區2024年將激增[415%]，占公司總交付量的21%。世界其他地區佔總量的15%，較去年同期成長近90%。供您注意，在第四季度，我們開始在馬來西亞、泰國、新加坡、阿聯酋和菲律賓推出 EMEYA。

For the key financial indicators. Deliveries and revenues are being just reported. I will not repeat here. The cost of the revenues increased to USD895 million and USD301 million for the full year, and for the fourth quarter, respectively. As a result, the gross profit margin was lowered to 3% for the full year and negative 11% for the fourth quarter.

對於主要財務指標。交付量和收入剛剛被報告。我這裡就不再重複了。全年和第四季的收入成本分別增至 8.95 億美元和 3.01 億美元。受此影響，全年毛利率降至3%，第四季毛利率為-11%。

We reported an operating loss of USD786 million for the year and USD189 million for the fourth quarter. Net loss was accrued to $1,107 million for the full year and $441 million for the fourth quarter. For your information, adjusted net loss adjusted under the non-GAAP measures were not much too different.

我們報告全年營業虧損 7.86 億美元，第四季營業虧損 1.89 億美元。全年淨虧損達 11.07 億美元，第四季淨虧損達 4.41 億美元。供您參考，根據非公認會計準則調整後的淨虧損並沒有太大差異。

Then I'll first stop here and hand over the speaker to Mr. Feng.

那我就先講到這裡，把發言者交給馮先生。

(interpreted) Hello, everyone, I'm CEO of Lotus Tech, Feng Qingfeng. Allow me to share our key achievements in the year of 2024. Our performance overall is better than the broader 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.

(翻譯)大家好，我是蓮花科技CEO馮慶峰。請容許我分享我們在2024年所取得的主要成就。我們的整體表現優於更廣泛的奢侈品市場。我們在英國豪華汽車品牌中名列前茅，2024 年交付汽車超過 12,000 輛，比 2023 年的表現高出 74%。

Currently, we have four models under delivery. We have one SUV, one sedan -- or rather GT, and two sports cars, including EMIRA and also Evija. Last year, we keep exploring our international footprint. We have entered into more than 10 countries in GCC region, Asia and Oceania.

目前，我們有四種型號正在交付。我們有一款 SUV、一款轎車（或更確切地說是 GT）和兩款跑車，包括 EMIRA 和 Evija。去年，我們繼續探索國際足跡。我們已進入海灣合作委員會地區、亞洲和大洋洲的 10 多個國家。

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. Besides, we have also launched our Theory 1 concept car. This is a revolutionary concept car made with a sustainable material to redefine luxury, and we have the gained wide recognition from our press friends.

除此之外，我們也一直在降低成本、提高效率，並且已經連續五個季度實現了營運費用的降低。此外，我們也推出了Theory 1概念車。這是一款採用可持續材料製成的革命性概念車，重新定義了豪華，並獲得了媒體朋友的廣泛認可。

For this particular vehicle, it has defined our direction for our future models, particularly on its design language, and also it's a sustainable principle. As for our progress on ESG, we were honored as highly commended at Reuters Sustainability Awards 2024, leading the EV industry within Rueter's Vision 2045 campaign.

對於這款特定的車輛，它確定了我們未來車型的方向，特別是它的設計語言，同時也是一個可持續的原則。至於我們在 ESG 的進展，我們在 2024 年路透社永續發展獎中獲得高度讚揚，在 Rueter 的 2045 願景活動中引領電動車產業。

Lotus was the winner of the 2024 EUCCC Sustainable Business Award and the Green Apple 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 November 29.

Lotus 憑藉其出色的環境實踐榮獲 2024 年歐盟商會永續發展商業獎和綠蘋果獎。我們的永續供應管理案例也被納入2024上海氣候週《氣候技術焦點報告》。而這份報告也是在11月29日發布的。

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. 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 successively reclaimed the proprietary rights of Lotus iconic logo, Lotus word mark, and the Chinese character of Lotus Lianhua in China, ensuring consistency in terms of its trademark across the world.

至於我們在2025年的最新發展，我們在前三個月已經交付了超過12,000輛汽車。至於最終的銷售情況，我們已經交付了 2,000 多輛。過去，蓮花在中國被稱為Lotus的英文發音，而我們必須使用NYO作為我們標誌的一部分。但我們於2025年1月陸續在中國收回了Lotus標誌性標誌、Lotus文字商標及蓮花漢字的專有權，確保了其全球商標的一致性。

In addition to that, we have also made a model facelift for our ELETRE and EMEYA. 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 quarter two, the delivery will also commence in the EU and the rest of the world.

除此之外，我們也對 ELETRE 和 EMEYA 進行了車型改款。具體來說，在二月份，我們更新了這兩款車型的陣容，升級了配置，並提供了具有競爭力的價格。在中國，該車已於二月開始交付，第二季也將在歐盟及世界其他地區開始交付。

Besides, we have also launched the 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, U-turns at intersections, intelligent lane selection, and smart obstacle avoidance. 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.

此外，我們也於今年2月在全國16個城市推出了無地圖城市NOA，即自動駕駛導航。該系統可輕鬆實現高速公路與城市道路的無縫換道、路口掉頭、智慧選道、智慧避障等功能。從二月開始，我們也啟動了OTA，將這項功能推送給我們的最終客戶。這個系統可以讓我們的車輛能夠實現送貨上門的智慧駕駛。

Starting from quarter two, this function will be available in more than 100 cities in China through OTA. In March this year, Lotus' intelligent driving arm, Lotus robotics has also established a strategic partnership with CaoCao Mobility to launch an innovative intelligent mobility platform for Robotaxi. We have also studied the pilot operation in the city of Hangzhou and the city of Suzhou.

從第二季開始，該功能將透過OTA方式在全國100多個城市上線。今年3月，Lotus旗下智慧駕駛子公司Lotus Robotics也與曹操出行建立策略合作夥伴關係，共同推出Robotaxi創新智慧旅遊平台。我們也研究了在杭州、蘇州等地的試驗情況。

In addition to that, Lotus Technology's 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 more luxury vehicles.

此外，蓮花科技的自然資本評估計畫也被納入世界經濟論壇報告，這展現了我們的雄心壯志以及我們在永續發展方面取得的進展，特別是在更多豪華汽車方面。

On April 14, 2025, we have received the exercise notice from Geely requiring Lotus Tech to purchase 51% of the equity interest in Lotus UK according to the Put Option Agreement dated January 31, 2023, between the parties. If we can exercise this push option, we will be able to operate on two factories, half a factory in the UK and Wuhan factory from China. Those two factories can cover four regions: Middle East, APAC, Europe, China, and North America.

2025年4月14日，我們收到吉利的行使通知，要求Lotus Tech根據雙方於2023年1月31日簽訂的認沽選擇權協議購買Lotus UK 51%的股權。如果我們能夠行使這項推動選項，我們將能夠營運兩家工廠，一半在英國，一半在中國武漢。這兩家工廠可以涵蓋四個地區：中東、亞太地區、歐洲、中國和北美。

As for the exercise of a Put Option from Geely, Lotus expects to acquire 50% of equity interest in Lotus UK through a non-cash transaction based on pre-agreed valuation methodology. Upon completion, Lotus will gain control of Lotus UK and consolidate its financial results. The strategic transaction will enable the company to integrate all global business under Lotus Brand.

對於吉利行使看跌期權，Lotus 預計將根據預先商定的估值方法，透過非現金交易收購 Lotus UK 50% 的股權。交易完成後，Lotus 將獲得 Lotus UK 的控制權並合併其財務表現。此次策略交易將使該公司能夠整合 Lotus 品牌下的所有全球業務。

Subject to potential regulatory approvals, the acquisition is expected to be completed in 2025 this year. As for our product pipeline, Evija, this is our hyper car, it has a limited offering of 130 vehicles globally. We have already started the delivery of this hyper car.

若獲得潛在監管部門批准，此次收購預計將於今年 2025 年完成。至於我們的產品線，Evija，這是我們的超級跑車，全球限量 130 輛。我們已經開始交付這款超級跑車。

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 other markets. This year we are going to launch a model year '26 for EMIRA. It will be dedicated to the US market and also meets the compliance requirements for other markets. In 2027, we are planning a major uplift for EMIRA. It will have more horsepower. It will also be compliant to EU 7 emission requirements.

接下來我們來談談我們的 EMIRA 跑車。美國市場是EMIRA最大的市場，該車也已在其他市場上市。今年我們將推出 EMIRA 26 款車型。它將專注於美國市場，同時也滿足其他市場的合規要求。2027 年，我們計劃對 EMIRA 進行大規模提升。它將擁有更大的馬力。它還將符合歐盟 7 號排放要求。

As for our lifestyle vehicles, Eletre and Emeya, previously, I briefly mentioned about this 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.

至於我們的生活風格車 Eletre 和 Emeya，之前我曾簡單提到過，我們已經開始在中國交付 26 款車型。歐盟、英國和世界其他地區的出貨也將於第二季開始。

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 quarter one next year. 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 a Vision 80 strategy. In other words, we will have six models in total.

今年年底，也就是2025年底，我們計劃推出一款PHEV。我們稱之為超混合模型。該車型將於明年第一季在中國率先開始交付。2027年，我們還在規劃另一款新車型。透過加入這個新模型，我們將能夠實現「80願景」策略的願景。換句話說，我們總共會有六種型號。

And that's all I'd like to share with you. Thank you.

這就是我想與你們分享的全部內容。謝謝。

Well, thank you, CEO and the CFO. Darcy, we are ready for the Q&A, please.

好吧，謝謝你，執行長和財務長。達西，我們已經準備好要進行問答了。

(Operator Instructions) Kevin Coelho, Tier One Systems.

（操作員指示） Kevin Coelho，Tier One Systems。

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 plans? It seems like you have a really amazing opportunity with the EMIRA 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 EMIRA, maybe adding carbon ceramic brakes, carbon bucket seats, some other things to remove a couple hundred pounds, and also increasing the horsepower and red line on the V6, which is an amazing engine. It sounds great.

我以 Lotus 投資者的身份、大約 11 年前在加州開設了一家異國汽車經銷店的人的身份、以及最重要的，作為一名汽車愛好者致電給我們。基本上，我真正的問題是，有什麼計劃嗎？看來，EMIRA 確實是一個絕佳的機會，可以打造出一款在美國市場上非常受歡迎的車型，而且這款車型的重量會比目前 EMIRA 車型更輕，或許可以增加碳陶瓷煞車、碳桶形座椅等一些配置，從而減輕幾百磅的重量，同時還可以提高 V6 引擎的馬力和紅線，這是一款非常棒的引擎。聽起來很棒。

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 in EMIRA R with a high revving V6, manual transmission, lightweight? I think that would do amazingly well here in the US market.

如果你看看保時捷，你會發現他們確實創造了一種其他人都應該效仿的秘訣。如果你看看 GT3 和 GT3 RSS 的售價，我的意思是，它們現在的售價比製造商建議零售價高出 10 萬美元。它們幾乎不可能被得到。我很好奇，您是否有任何計劃創造一款真正像硬核車型一樣的車型，也許是在 EMIRA R 中配備高轉速 V6、手排變速箱、輕量化？我認為這在美國市場將會取得驚人的成功。

(interpreted) Thank you for your question. I think it's a brilliant suggestion. And in fact, US is the largest market of EMIRA. Almost 50% of EMIRA sales are all coming from the US and particularly our V6 model, very much preferred by our US consumers. Well, we are very clear that our US 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 US market, the 2.0 turbo model. It has also a relatively high horsepower.

（翻譯）感謝您的提問。我認為這是一個絕妙的建議。事實上，美國是EMIRA最大的市場。EMIRA 幾乎 50% 的銷售量都來自美國，尤其是我們的 V6 車型，非常受美國消費者的青睞。嗯，我們非常清楚，我們的美國消費者更喜歡馬力更大、轉速更高的引擎或型號。事實上，我們在美國市場還有另一款車型，即 2.0 渦輪增壓車型。它的馬力也相對較高。

At the very beginning, we were quite concerned about our US consumers that they may only prefer the V6 model instead of the 2.0 turbo model. However, after our consumer testing drives the 2.0 turbo model with also 400 horsepower, our consumers are very like it, and particularly with its power consists of 8-DCT transmission and a very faster response.

一開始，我們非常擔心美國消費者可能只喜歡 V6 車型，而不是 2.0 渦輪增壓車型。但是，我們的消費者在試駕了同樣是400馬力的2.0渦輪增壓車型之後，都非常喜歡，尤其是它的動力配置是8DCT變速箱，而且響應速度非常快。

As for the six, we, to be honest, do not have the plan to further increase its power because this engine will not be compliant for EU 7 emission. 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.

至於六缸發動機，說實話，我們沒有進一步提高其功率的計劃，因為這款發動機不符合歐盟 7 排放標準。然而，我們正在研究一種新的動力系統，即 V8。它將擁有更大的馬力，我們目前正在研究 V8 的可行性。

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 US market.

實際上，今年我們在歐洲推出了一些更輕的限量版，就像您提到的建議一樣，我們在其上添加了更多的碳纖維材料。我們也會考慮是否在美國市場推出類似的車型。

Thank you for your passion for Lotus. Also thank you for your great suggestion.

感謝您對 Lotus 的熱愛。也感謝您的寶貴建議。

Laura Li, Deutsche Bank.

德意志銀行的 Laura Li。

So, my first question is about the ADAS revenue. So what's it like contribution over the last year? And any update on the guidance, any new design where you're working on? Yeah, that's my first question.

所以，我的第一個問題是關於 ADAS 收入。那麼過去一年的貢獻如何？指南有任何更新嗎？您正在進行什麼新設計嗎？是的，這是我的第一個問題。

Thank you, Laura. I will invite CFO to answer. So the first question is on the revenue guidance.

謝謝你，勞拉。我會請CFO來回答。第一個問題是關於收入指導。

Yeah. So, you mean for the 2025, right? Okay, so if you're like we have a detailed plan, which is going to be, like we have improvements compared to the 2024. Let's say they -- like, we are waiting for the further approval from the Board of Directors.

是的。那麼，您的意思是 2025 年，對嗎？好的，如果您覺得我們有一個詳細的計劃，那麼與 2024 年相比，我們會有所改進。假設他們——比如，我們正在等待董事會的進一步批准。

Thank you. And Laura's second question, I remember is the question on the revenue on the robotics.

謝謝。我記得勞拉的第二個問題是關於機器人收入的問題。

Okay. So for the robotics, like we achieve like pretty improvement compared to the one year before. And we gained not only the internally we get the revenue from the Lotus, but also gain some customers from the outside of the company and also aside from the Geely group. So like, overall, it will achieve like USD22 million from the customers outside the Lotus.

好的。因此，對於機器人技術而言，與前一年相比，我們取得了相當大的進步。我們不僅從 Lotus 獲得了內部收入，還從公司外部以及吉利集團之外獲得了一些客戶。因此，總體而言，它將從 Lotus 以外的客戶那裡獲得 2,200 萬美元的收入。

So that's something like -- I mean, well like our profit margin. I think we have a pretty high margin compared to the sales of goods. I mean, we're going to be able to keep this number in this year. So that's I think basically the revenues from the robotics side.

所以這有點像——我的意思是，就像我們的利潤率一樣。我認為與商品銷售額相比，我們的利潤率相當高。我的意思是，我們今年能夠維持這個數字。所以我認為這基本上就是來自機器人的收入。

Okay, got you. I appreciate. My second question is around like the margin trajectory, as you mentioned, for this year and the '26. 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 changes on production arrangements that you're considering?

好的，明白了。我很感激。我的第二個問題是關於您提到的今年和 26 年的利潤軌跡。我們是否應該考慮同比方面的逆風或順風？同時也考慮了關稅情況。您是否考慮對生產安排做出任何改變？

Yeah, thank you, Laura. 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.

是的，謝謝你，蘿拉。她的第一個問題是關於今年和明年的利潤率走勢。另外考慮到關稅情況，是否有任何變化。

So I think the margin is going to be much improved this year compared to last year. Last year, first there is a trade uncertainties. And also like we have the stock -- reflected the stock clearing plans, which caused our profit margin to lower compared to the one year before. But this year, I think firstly, I mean, where the stock plan is going to be much -- is lower and we don't no longer have this stock clearing requirements. Meanwhile, we have a much better products, like cost, structure. So that means the gross profit margin is going to be much better than 2024. So that's where my expectation for the year 2025.

因此我認為今年的利潤率將比去年大幅提高。去年，首先存在貿易不確定性。而且就像我們的庫存一樣——反映了庫存清理計劃，這導致我們的利潤率與前一年相比有所下降。但今年，我認為首先，庫存計劃將會低得多，而且我們不再有庫存清算要求。同時，我們的產品在成本、結構等方面都更加優良。這意味著毛利率將比 2024 年好得多。這就是我對 2025 年的期望。

Laura, excuse me, do you mind repeating your last question on the tariff? Sorry, your voice was very far away.

勞拉，打擾一下，您介意重複一下關於關稅的最後一個問題嗎？抱歉，你的聲音太遠了。

Oh yeah. So, yeah, the second part is around the impact of tariffs. And any communication you're considering. Like changes on production arrangement or the sort of solutions. Thank you.

哦，是的。是的，第二部分是關於關稅的影響。以及您正在考慮的任何溝通方式。例如生產安排或解決方案類型的變化。謝謝。

(interpreted) Well, definitely we have been affected by the US unbelievably high tariffs, particularly for our lifestyle vehicle, which is produced in China. And for our lifestyle vehicle, we have already stopped its export into the US market. However, our sports car, which is produced in the UK, has not been affected yet. We're still investigating the market and also we are still doing analysis.

(翻譯) 嗯，我們確實受到了美國難以置信的高關稅的影響，特別是對於我們在中國生產的生活方式汽車。對於我們的生活方式汽車，我們已經停止向美國市場出口。不過，我們的跑車是在英國生產的，目前還沒有受到影響。我們仍在調查市場並進行分析。

(Operator Instructions) [Yu Xiang, MSIM China].

（操作員指示）[Yu Xiang，MSIM中國]。

I have two questions actually. First one is, what are the contributing factors behind the significant decline in gross profit in the 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?

我實際上有兩個問題。第一個問題是，2024年第四季毛利大幅下滑的原因是什麼？那麼智慧駕駛和客製化服務對第四季的服務收入和毛利貢獻了多少？

Thank you, Roy. I invite CFO, Mr. Wang.

謝謝你，羅伊。我請財務總監王先生發言。

Yeah, so basically the fourth-quarter performance as you tell is we have some decline, it's because we clear the stock. And meanwhile, because of the uncertainty from the tariffs. Meanwhile, for the intelligent driving business, there's an accounting rules exchange because of the -- we changed the booking policy from the cash basis to the accrual basis in the fourth quarter. So this results in some adjustment, accounting adjustment in the figures.

是的，基本上，正如您所說，第四季度的業績有所下滑，這是因為我們清理了庫存。同時，由於關稅的不確定性。同時，對於智慧駕駛業務，由於我們在第四季將記帳政策從現金制改為權責發生製，因此需要進行會計規則轉換。因此，這會導致一些調整，即數字上的會計調整。

So, you can tell for the fourth quarter of the sales -- the revenues from the services, you can see the change. So basically, about starting from this year, we are already under the new accounting policies, the gross margin is going to be recovered. And meanwhile, particularly in the service sector, we're going to align the intelligent driving business with the industry benchmarks. So thank you.

因此，你可以看到第四季度的銷售額——來自服務的收入——發生了變化。所以基本上，從今年開始，我們已經開始實施新的會計政策，毛利率將會恢復。同時，特別是在服務領域，我們將使智慧駕駛業務與產業基準接軌。所以謝謝你。

(interpreted) And also, I'd like to comment that in 2025, our growth margin is going to be greatly improved due to our launch of the model year 2026. As I previously elaborated, the model year 2026 will be launched in Europe, including the EU and the UK in quarter two, and those are two market actually accounted for more than 40% of our total sales. So by launching model year '26, it can help us to improve our gross margin.

(翻譯)另外，我想說的是，由於我們推出了 2026 年車型，因此到 2025 年，我們的增長幅度將大大提高。正如我之前所闡述的，2026 年車型將於第二季度在歐洲推出，包括歐盟和英國，這兩個市場實際上占我們總銷量的 40% 以上。因此，透過推出 26 款車型，它可以幫助我們提高毛利率。

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? What is the plan to improve the margin? Yeah, that's my final question. Thank you.

好的，謝謝。我的第二個問題是，過去2024年智慧駕駛業務的營收和利潤率是多少？您對接下來的 2025 年和中期車輛和/或綜合服務的收入和利潤率有何指導？提高利潤率的計畫是什麼？是的，這是我的最後一個問題。謝謝。

The benchmark margin for the intelligence driven business is about like 30%. So it's in line with the industry standards. So starting from this year, we're going to not only to improve the margin, also they are going to --we're 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.

智慧驅動業務的基準利潤率約為30%。所以它符合行業標準。因此從今年開始，我們不僅要提高利潤率，還要從市場上獲得更多客戶、更多業務。所以我認為他們會進一步降低成本，從而提高利潤率。

Tom Liu, Capital Sunrise.

Tom Liu，Capital Sunrise 投資公司。

Thank you for taking my questions. Up to you. 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?

感謝您回答我的問題。由你決定。第一個問題是，目前的現金消耗是多少，跑道有多長？未來六個月我們能期待什麼重大融資嗎？

Yeah. As you can tell from like our financial performance, we do have the [GAAP] in terms of the cash. And also, we are making the cash GAAP in the field through the operation, through the investment plans plus through the financing. And we have been closely contacting the estate investors in the market. So please, take a close look at our announcement and also the company release. Thank you so much.

是的。從我們的財務表現可以看出，就現金而言，我們確實擁有 [GAAP]。此外，我們還透過營運、投資計劃和融資在該領域制定現金 GAAP。而我們一直在與市場上的房地產投資者密切聯繫。因此，請仔細查看我們的公告和公司發布的內容。太感謝了。

Tom, you have another question?

湯姆，你還有其他問題嗎？

Yes. My second question is about the management capabilities. So we've noticed the recent management shifts. 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.

是的。第二個問題是關於管理能力。所以我們注意到了最近的管理層變動。您介意分享一下背後的理由嗎？那麼，目前的管理團隊為何能成為扭轉奢侈品公司命運的最佳人選呢？謝謝。

(interpreted) As far as recent management change, we do have welcomed a new CFO, Wang Daxue. He had a rich experience in finance and also capital markets. In addition to that, he also had a great performance in Geely.

(翻譯) 就最近的管理變動而言，我們確實迎來了新任財務長王大學。他在金融和資本市場方面擁有豐富的經驗。除此之外，他在吉利也有著出色的表現。

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 Tai Chi]. He had also rich experience in luxury products, particularly with the Volvo. During his time with Volvo, he helped the Volvo sales volume increased from 80,000 to 90,000 to more than 180,000 to 190,000 a significant jump.

我還想評論一下中國區銷售主管的變動。我們任命了新的中國銷售總裁，【清太極】。他在豪華產品方面也有豐富的經驗，尤其是沃爾沃。在任職沃爾沃期間，他幫助沃爾沃銷量從8萬至9萬輛大幅躍升至18萬至19萬輛以上。

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. As for Ms. Mao Jingbo, she previously had a really rich experience with [bans] and also Lincoln, and now she is responsible for closes coordination of sales and operation and brands and marketing collaboration covering the regions such as the EU, US, and APAC. The ultimate target is to ensure [consistency].

總的來說，我只想說，對於我們的整個管理團隊來說，我們在奢侈品牌管理方面擁有豐富的經驗。至於毛靜波女士，她之前在[bans]和林肯有著非常豐富的經驗，現在她負責密切協調歐盟、美國和亞太等地區的銷售和營運以及品牌和行銷合作。最終目標是確保[一致性]。

As for our Chief Brand Officer or Chief of Creative Officer, Ben Payne, still remains at this position, and he created a lot of brilliant content for us and also the sensational concept car, Theory 1, that I previously mentioned to you is also created by him. As far as our Head of Sales in the US, he was a COO of Maserati, so he can bring us a lot of great experiences that he previously gained.

至於我們的首席品牌官或首席創意官 Ben Payne 仍然留任，他為我們創作了很多精彩的內容，包括我之前提到的轟動一時的概念車 Theory 1 也是他創作的。就我們在美國銷售的主管而言，他曾擔任瑪莎拉蒂的首席營運官，因此他可以為我們帶來許多他之前積累的豐富經驗。

Thank you. There are no further questions at this time. I'll now hand back to Ms. Zhang for closing remarks.

謝謝。目前沒有其他問題。現在我將把發言交還給張女士，請她作最後發言。

Darcy, do you want to remind everybody how to raise their questions if there's any more?

達西，如果還有其他問題，你想提醒大家如何問問題嗎？

(Operator Instructions) George Tang, [Alison] Capital.

（操作員指示）George Tang，[Alison] Capital。

I have three quick questions for management. First question is, can management kindly get a high-level guidance on how the Put Option will impact the company's financials, such as the balance sheet, cash flow, and P&L? It appears there's pretty high debt asset ratio of over, I believe, 130% by the end of 2024. How will the acquisition change that number? Thank you.

我有三個簡短的問題想問管理層。第一個問題是，管理階層能否獲得有關看跌期權將如何影響公司財務狀況（例如資產負債表、現金流量和損益表）的高層指導？看來，負債資產比率相當高，我相信到 2024 年底將超過 130%。此次收購將如何改變這個數字？謝謝。

Thank you, George. I will first invite CFO to give you some color on the questions.

謝謝你，喬治。我先請CFO來跟大家解答一下這些問題。

So regarding the execution of the production, we still do the due diligence. I'm talking with the -- dialogue with the Lotus UK. So I think we are going to release the results in what time is it's done. And for the [first question] 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 your question, we can wait until we finish the investigation, and then we got the deal done. So please, take a close look at our further notice. Thank you very much.

因此，對於製作的執行，我們仍然會盡職盡責。我正在與 Lotus UK 進行對話。所以我認為我們會在完成後公佈結果。對於您剛才提到的[第一個問題]，這將是一筆非現金交易。所以，它不會給公司帶來現金負擔。總的來說，我認為對你的問題的答案是，我們可以等到調查結束後再達成協議。因此，請仔細查看我們的進一步通知。非常感謝。

Perfect, thank you. And I have another question, perhaps this has been burning the back of many people's minds, but I was wondering what is Lotus's US strategy, market strategy, given the current geopolitical tensions and terrorist situation. And having said that, what do you think would be your target sales for US market in this year? Thank you.

非常好，謝謝。我還有一個問題，也許這個問題一直困擾著很多人，但我想知道，鑑於當前的地緣政治緊張局勢和恐怖主義局勢，蓮花汽車的美國戰略和市場戰略是什麼。話雖如此，您認為今年美國市場的銷售目標是多少？謝謝。

Thanks, George. I we invite CEO to answer your question.

謝謝，喬治。我邀請執行長來回答您的問題。

(interpreted) Yes, in 2025, it is going to be tougher, but particularly we are affected by -- our lifestyle vehicle are mainly affected by the tariff hike. As far as sports car, we were slightly affected, so we haven't actually changed our original plan for our sports car sales in the US. We expect about roughly 200 to 300 sales laws because of the tariffs in the US.

(翻譯)是的，到 2025 年，情況會更加艱難，但我們尤其會受到影響——我們的生活方式主要受到關稅上調的影響。就跑車而言，我們受到了輕微的影響，因此我們實際上並沒有改變我們在美國銷售跑車的原始計劃。由於美國的關稅，我們預計大約會有 200 到 300 條銷售法。

Finally, we're also exploring our paths and the solutions for the US market because the US market is the biggest market for luxury premium vehicle segments. 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.

最後，我們也正在探索針對美國市場的路徑和解決方案，因為美國市場是豪華高階汽車領域最大的市場。此外，Lotus在美國市場也擁有較高的品牌知名度。因此，美國市場肯定是我們的重點市場之一。

In addition to that, we will also keep exploring our feasibility of exporting lifestyle vehicles to the US markets. And at this moment, we will not be able to disclose any details, but please feel free to stay tuned to our future announcement. The only thing that I may add is that manufacturing in the US could be one of our potential solutions.

除此之外，我們也將繼續探索向美國市場出口生活型車的可行性。目前我們還不能透露任何細節，但請隨時關注我們未來的公告。我唯一想補充的是，在美國製造可能是我們的潛在解決方案之一。

(Operator Instructions) There are no further questions at this time.

（操作員指示）目前沒有其他問題。

Yeah, thank you, Darcy. Well, given the time constraints, 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 IT and this concludes the call. Have a very good day, everyone, and thank you very much again. Bye.

是的，謝謝你，達西。嗯，考慮到時間限制，我認為通話很快就會結束。但各位，再次非常感謝你們今天加入我們。如果您還有其他問題，請隨時聯絡我們的 IT 部門，通話到此結束。祝大家有個愉快的一天，再次感謝大家。再見。

Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.

謝謝。今天的會議就到此結束了。感謝您的參與。您現在可以斷開連線。