Group 1 - Volvo launched the new XC70 in China on August 27, which features the latest intelligent cockpit solution from ECX, a company under the Geely system [2] - ECX has been enhancing its "hardware-software integration" capabilities, with the Antora® 1000 Pro computing platform and the Cloud Mountain cross-domain software platform being key to penetrating the high-end market [2] - The collaboration model between ECX and Volvo signifies a shift from traditional parts supply to joint development between automotive and technology companies, marking a significant milestone for ECX in the luxury brand ecosystem [2] Group 2 - In the capital market, the narrative of intelligence has become a crucial component of automotive company valuations, and ECX's ability to leverage full-stack technology and luxury brand endorsement will determine its growth potential [3] - The XC70 represents just the beginning for ECX, with the real challenge being its ability to prove its irreplaceability in more high-end projects in the coming years [3]

Core Insights - ECARX announced that its Antora® 1000 Pro computing platform and Cloudpeak® software stack will be used in the intelligent cockpit of the new Volvo XC70 hybrid SUV, which began pre-sales on August 27, 2025 [1][4] - The collaboration between ECARX and Volvo focused on various aspects of the XC70's design and development, including hardware, system architecture, and user experience enhancements through AI-powered features [2][4] - The XC70 features a minimalist design aimed at providing a more intuitive user experience, setting it apart from more complex interfaces in premium vehicles [3] Company Overview - ECARX is a global automotive technology provider that offers comprehensive solutions for next-generation smart vehicles, including system on a chip (SoC) and central computing platforms [5] - Founded in 2017 and listed on Nasdaq in 2022, ECARX has over 1,600 employees across 13 locations worldwide and collaborates with major automotive brands, including Volkswagen Group and FAW Group [6] - ECARX's products are currently integrated into over 9.3 million vehicles globally, showcasing its significant market presence [6]

Core Insights - ECARX has achieved Automotive SPICE (ASPICE) v4.0 Capability Level 3 (CL3) certification, the highest rating under the ASPICE standard, enhancing its portfolio of certifications necessary for collaboration with leading automakers [1] - The company has established a scalable, compliant software-development backbone through various certifications, including ASPICE v3.1 CL2, CMMI CL3, and ASPICE v3.1 CL3, which strengthens its competitive positioning in the global market [2] - ECARX is committed to developing products in compliance with ISO26262 and ISO21434 standards for functional safety and cybersecurity, further enhancing its competitive edge [2] Company Overview - ECARX is a global automotive technology provider that delivers turnkey solutions for next-generation smart vehicles, including system on a chip (SoC), central computing platforms, and software [4] - Founded in 2017 and listed on Nasdaq in 2022, ECARX has over 1,600 employees across 13 major locations worldwide, including China, the UK, the USA, Singapore, Malaysia, Sweden, and Germany [5] - The company collaborates with notable automakers such as Volkswagen Group, FAW Group, and Dongfeng Peugeot-Citroën, with its products present in over 9.3 million vehicles globally [5] Leadership Perspective - Ziyu Shen, Chairman and CEO of ECARX, emphasized that achieving ASPICE v4.0 CL3 certification reflects the company's focus on R&D capability, quality control, and process maturity, supporting large-scale global mandates like the project with Volkswagen Group [3]

Core Viewpoint - ECX Technology reported a total revenue of $156 million for Q2 2025, with management expressing confidence in achieving EBITDA breakeven in subsequent quarters and a nearly 20% revenue growth for the full year 2025 [1] Group 1: Financial Performance - The company achieved total revenue of $156 million in Q2 2025 [1] - Management anticipates reaching EBITDA breakeven in the upcoming quarters and for the full year 2025 [1] - The company is targeting nearly 20% revenue growth for the entire year 2025 [1] Group 2: Business Growth and Product Performance - The company demonstrated strong growth resilience, with product shipments reaching 532,000 units [1] - The Antora® series, integrated with the 7nm automotive-grade SoC "Long Eagle No. 1," saw shipments of 135,000 units in Q2, marking a year-on-year increase of 112% [1] - As of June 30, 2025, the total number of vehicles equipped with ECX Technology exceeded 9.3 million, showcasing ongoing scalability [1] Group 3: Capacity and Market Expansion - The Fuyang factory's capacity utilization rate reached 80%, achieving the annual production target of 1 million units ahead of schedule [1] - The company secured multiple project designations in Q2, with overseas market projects valued at over $1 billion in total lifecycle value [1] - These new orders provide clear support for future revenue growth and reflect the global automotive brands' recognition of the company's technological capabilities [1]

Core Viewpoint - The automotive industry is undergoing a significant transformation towards electrification and intelligence, with key technology suppliers like ECX.US playing a crucial role in shaping industry trends and demonstrating their core value within the supply chain [1][3]. Financial Performance - In Q2 2025, ECX.US reported total revenue of $156 million, with management expressing confidence in achieving EBITDA breakeven and nearly 20% revenue growth for the full year [1]. - Operating expenses decreased by 20% year-over-year, reflecting the company's commitment to lean operations and cost efficiency [1]. Business Growth and Market Position - The company shipped 532,000 units in Q2, with the Antora® series achieving a 112% year-over-year increase in shipments [2]. - By the end of June 2025, the total number of vehicles equipped with ECX.US technology exceeded 9.3 million, showcasing the ongoing scale effect [2]. - The company secured multiple project contracts, including overseas projects valued at over $1 billion, indicating strong international market expansion and recognition of its technological capabilities [2]. Industry Trends - The global automotive industry is experiencing a dual trend of electrification and intelligence, with new energy vehicle sales reaching 4.868 million units in Q2 2025, a 30% year-over-year increase [3]. - The competition in the new energy vehicle market is shifting from merely replacing traditional fuel vehicles to defining product strength through intelligence, emphasizing the need for integrated hardware and software solutions [3][4]. Globalization Strategy - ECX.US is actively pursuing a dual globalization strategy, both following Chinese automakers abroad and directly entering high-end global markets [7][8]. - The company plans to establish a global headquarters in Singapore in the second half of 2025, enhancing its international business capabilities and compliance [8]. Technological Innovation - ECX.US is focused on upgrading its technology to support the automotive industry's shift towards intelligence, with significant advancements in smart cockpit solutions [9][10]. - The company has developed a 5-in-1 solution based on its Antora 1000 platform, which can reduce vehicle development cycles by over 30% [12]. - In addition to automotive applications, ECX.US is expanding its solid-state laser radar technology into the robotics sector, tapping into a growing market projected to exceed $50 billion by 2025 [13]. Summary - ECX.US's Q2 2025 progress aligns with long-term industry trends of smart upgrades, global expansion, and cross-industry collaboration, positioning the company for sustained growth and increased market share [14].

Financial Data and Key Metrics Changes - Total revenue for Q2 was $156 million, with sales of goods revenue at $131 million, reflecting a 1% year-over-year increase driven by double-digit customer demand despite strategic price reductions [25][27] - Gross profit declined to $70 million, a 58% decrease year-over-year, resulting in a gross margin of 11%, down 12% from the previous year [26][27] - Operating expenses were reduced by 20% year-over-year to $57 million, contributing to a slight decline in adjusted EBITDA loss to $30 million compared to $29 million in the same period last year [27][28] Business Line Data and Key Metrics Changes - The Antora, VANELO, and Skyland platforms contributed 56% to total sales of goods revenue, more than doubling from 28% in the prior year [26] - Software license revenue decreased by 85% year-over-year to $1.2 million, primarily due to a decline in per vehicle software license revenue [26] - Service revenue was $23 million, down 34% year-over-year, mainly due to lower revenue from non-recurring engineering services contracts [26] Market Data and Key Metrics Changes - Shipments of the Antora series solution surged 112% year-over-year to 135,000 units during the quarter, indicating strong market demand [7] - The company serves 18 OEMs across 28 brands globally, with significant contributions from Geely, which accounted for nearly 40% to 50% of total business [12][58] - In the EU market, the company has 14 active projects with eight different global automakers and has secured four wins to date [18] Company Strategy and Development Direction - The company aims to achieve EBITDA breakeven in each of the remaining quarters of 2025, supported by operational discipline and a growing pipeline of projects [5][28] - A new global headquarters in Singapore is set to open in 2025, enhancing global IP management, R&D collaboration, and supply chain optimizations [10][23] - The company is diversifying its technological reach beyond automotive, with partnerships in robotics and AI applications, indicating a strategic shift towards multi-industry applications [9][14] Management Comments on Operating Environment and Future Outlook - Management acknowledged seasonal headwinds but emphasized solid progress in securing new projects and expanding partnerships [5][10] - The company expects full-year revenue to recover strongly and grow by close to 20% year-over-year, driven by volume growth and improved product mix [28] - Management expressed confidence in achieving adjusted EBITDA breakeven in each of the remaining quarters of 2025, despite external challenges [28][29] Other Important Information - The company received three ISO certifications for quality management, environmental stewardship, and occupational health and safety, which are prerequisites for collaboration with leading automakers [23] - The Fujian plant operates at 80% utilization, achieving its 1,000,000 unit annual capacity ahead of schedule, which is critical for global scaling [21] Q&A Session Summary Question: Non-automotive business layout and future development - Management expressed optimism about the potential for non-automotive applications, particularly in robotics, leveraging LiDAR technology [34][35] Question: Progress in overseas expansion - The company has secured multiple international clients, including Volkswagen, and is actively pursuing additional opportunities in global markets [36][37] Question: Update on in-house chip development - Management confirmed ongoing development of the Antora platform and plans to launch the Qualcomm A295 product, indicating a robust roadmap for internal capabilities [38][40] Question: Volume guidance for the second half of the year - The company anticipates shipping between 1,400,000 to 1,500,000 vehicles in the second half, aiming for a total of 2,500,000 to 2,600,000 vehicles for the year, reflecting a 30% year-over-year growth [44][45] Question: Pricing strategy and market competition - Management acknowledged pricing pressures but emphasized ongoing cost optimization efforts and a focus on maintaining market share to support revenue growth [46][48] Question: Update on ADCU business and collaboration with Qualcomm - The company is exploring opportunities with Qualcomm's SoCs and plans to launch a Fusion platform in 2026, indicating a strategic focus on advanced automotive technologies [52][53] Question: Growth drivers for the second half and next year - Management highlighted the importance of diversifying the customer base and expanding partnerships, with a healthy mix of business from both domestic and international OEMs [56][60]

Financial Data and Key Metrics Changes - Total revenue for Q2 was $156 million, with sales of goods revenue at $131 million, reflecting a 1% year-over-year increase driven by double-digit customer demand despite strategic price reductions [24][25] - Gross profit for the quarter was $70 million, a decline of 58% year-over-year, resulting in a gross margin of 11%, down 12% compared to the previous year [25] - Operating expenses were reduced by 20% year-over-year to $57 million, contributing to a slight decline in adjusted EBITDA loss to $30 million from $29 million in the same period last year [26][27] Business Line Data and Key Metrics Changes - The Antora, Vanado, and Skyland platforms contributed 56% to total sales of goods revenue, more than doubling from 28% in the prior year [24] - Service revenue decreased by 34% year-over-year to $23 million, primarily due to lower revenue from non-recurring engineering services [25] Market Data and Key Metrics Changes - Shipments of the Antora series solution surged 112% year-over-year to 135,000 units during the quarter, supporting growth momentum [6] - The company serves 18 OEMs across 28 brands globally, with a significant presence in both the Chinese and international markets [10][17] Company Strategy and Development Direction - The company is focused on achieving EBITDA breakeven in each of the remaining quarters of 2025, with a target of close to 20% revenue growth for the full year [5][27] - A new global headquarters in Singapore is set to open in 2025 to enhance global IP management, R&D collaboration, and supply chain optimizations [9][21] - The company is diversifying its customer base, with Geely accounting for 40-50% of total business and ongoing efforts to expand into international markets [58] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of seasonal headwinds and macroeconomic uncertainties but emphasized solid progress in securing new projects and partnerships [4][24] - The company remains confident in achieving adjusted EBITDA breakeven and expects full-year revenue to recover strongly, driven by volume growth and improved product mix [27] Other Important Information - The company has secured over $1 billion in lifetime revenue from overseas contracts and has 14 active projects with eight different carmakers [6][38] - The company received three ISO certifications for quality management, environmental stewardship, and occupational health and safety, which are prerequisites for collaboration with leading automakers [21] Q&A Session Summary Question: Update on non-automotive business layout and future development - Management expressed optimism about the potential for non-automotive applications, particularly in robotics, leveraging LiDAR technology [33][36] Question: Progress in overseas expansion and international clients - Management highlighted ongoing efforts in Europe and other markets, with 14 active programs and recognition from Volkswagen for innovation capabilities [38][39] Question: Update on in-house chip development - Management confirmed continued growth of the Antora platform and plans to launch Qualcomm A295 products, indicating a robust roadmap for SoC development [40] Question: Volume guidance for the second half of the year - Management projected shipment volumes of 1.4 to 1.5 million vehicles in the second half, aiming for a total of 2.5 to 2.6 million vehicles for the year, reflecting a 30% year-over-year growth [45] Question: Pricing pressures and content per car improvements - Management acknowledged pricing pressures but noted improvements in content per car due to strategic pricing and cost optimization efforts [46][48] Question: Update on ADCU business and collaboration with Qualcomm - Management confirmed plans to work with Qualcomm's SoCs, including the 8,775, and highlighted the development of a Fusion platform for enhanced vehicle features [51][53]

Financial Performance - Q2 2025 revenue was $155.6 million, a decrease of 10% year-over-year[17] - Q2 2025 gross profit was $16.8 million, with a gross margin of 11%[18] - Q2 2025 operating expenses decreased by 20% to $57.2 million[18] - The net loss for Q2 2025 was $45.4 million[92] - Adjusted EBITDA for Q2 2025 was $(29.7) million[97] Products and Operations - Antora®shipment increased 112%[17] - The company serves 18 OEMs across 28 vehicle brands as of June 30, 2025[18] - Product in Vehicles 9.3mn+[17] Reporting Change - The company changed its reporting currency from Chinese Renminbi ("RMB") to U.S Dollars ("USD")[7]

Core Viewpoint - ECX Technology reported strong financial performance in Q2 2025, with total revenue reaching $15.56 million and significant growth in smart cockpit platform shipments, indicating robust market demand and operational efficiency [1][2]. Financial Performance - Total revenue for Q2 2025 was $15.56 million [1]. - Operating expenses were reduced to $57.2 million, a 20% decrease year-on-year, showcasing effective cost management [1]. Product and Market Development - The Antora® smart cockpit platform shipped 135,000 units in the quarter, a 112% year-on-year increase, contributing to over 1 million cumulative sales, making it one of the fastest-growing EV brands [1]. - The company has expanded partnerships with major automakers, including a new collaboration with one of China's top five manufacturers for global smart cockpit solutions, expected to enter mass production in 2026 [2]. - ECX Technology is developing a next-generation smart cockpit operating system for a global luxury automotive brand, enhancing its competitive edge [2]. International Expansion - The company plans to establish its global headquarters in Singapore by the second half of 2025, focusing on R&D, supply chain, and IP management to better serve global clients [2]. - ECX Technology received the "Technology Development and Innovation Award" at the Volkswagen Brazil Annual Supply Chain Conference, reflecting recognition from leading international automakers [2]. Future Outlook - The chairman and CEO expressed confidence in achieving EBITDA breakeven and nearly 20% revenue growth for the year, driven by new projects and the opening of the Singapore headquarters [3].

Core Insights - ECX achieved total revenue of $155.6 million in Q2 2025, with a significant increase in the shipment of its Antora series smart cockpit platform, reaching 135,000 units, a year-on-year growth of 112% [1] - The company has surpassed cumulative sales of 1 million units, becoming one of the fastest electric vehicle brands to reach this milestone, driven by widespread adoption in popular models like Geely Galaxy [1] - ECX's global strategy has led to over 9.3 million units installed, securing overseas orders with a lifecycle value exceeding $1 billion, indicating strong international growth momentum [1] Financial Performance - Operating expenses were reduced to $57.2 million, a 20% decrease year-on-year, showcasing effective cost control and resource optimization [1] Product and Partnership Developments - The company has expanded its partnerships beyond Geely, collaborating with major automakers, including a project with Volkswagen Group and a partnership with one of China's top five automotive manufacturers, expected to enter mass production in 2026 [2] - ECX is developing the next-generation smart cockpit operating system for a global luxury automotive brand, enhancing its technological influence and market competitiveness [2] International Expansion - Plans to establish a global headquarters in Singapore by the second half of 2025, aimed at supporting global clients through enhanced R&D, supply chain, and intellectual property management [2] - Recognition from major international automakers, including the "Technology Development and Innovation Award" at Volkswagen's annual supply chain conference in Brazil, highlights the company's technological capabilities [2] Market Diversification - ECX has received orders for its self-developed solid-state 3D LiDAR products from non-automotive sectors, marking its entry into the robotics and embodied intelligence market, thus creating a "second growth curve" [2] Future Outlook - The company is optimistic about achieving EBITDA breakeven and nearly 20% revenue growth for the full year 2025, driven by new mass production projects and the establishment of the Singapore headquarters [3]