Core Viewpoint - ECARX Holdings Inc. has announced a public offering of 25,000,000 Class A ordinary shares at a price of US$1.80 per share, with an option for underwriters to purchase an additional 3,750,000 shares [1][2]. Group 1: Offering Details - The offering is conducted under the Company's shelf registration statement on Form F-3, which was declared effective by the SEC on December 27, 2024 [3]. - The net proceeds from the offering will primarily be used for research and development initiatives, establishing overseas supply chain networks, and general corporate purposes [4]. Group 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 [6]. - Founded in 2017 and listed on Nasdaq in 2022, ECARX has over 1,900 employees across 12 major locations worldwide, including China, the UK, the USA, Sweden, and Germany [7]. - The co-founders include Ziyu Shen and Eric Li, who is also the founder and chairman of Zhejiang Geely Holding Group, which has ownership interests in several global automotive brands [7]. - ECARX products are currently found in over 8.1 million vehicles globally, collaborating with notable automakers such as Volkswagen Group, FAW, and Dongfeng Peugeot-Citroën [7].

Core Viewpoint - ECARX Holdings Inc. has announced a public offering of 25 million Class A ordinary shares, with an option for underwriters to purchase an additional 3.75 million shares [1][4]. Group 1: Offering Details - The offering will be conducted under the Company's shelf registration statement on Form F-3, which was declared effective by the SEC on December 27, 2024 [3]. - Deutsche Bank AG and China International Capital Corporation are acting as representatives of the underwriters for this offering [2]. - The net proceeds from the offering are intended for research and development initiatives, establishing overseas supply chain networks, and general corporate purposes [4]. Group 2: Company Overview - ECARX is a global automotive technology provider focused on delivering solutions for next-generation smart vehicles, including system on a chip (SoC) and central computing platforms [6]. - Founded in 2017 and listed on Nasdaq in 2022, ECARX employs over 1,900 people across 12 major locations worldwide [7]. - The company collaborates with notable automakers such as Volkswagen Group, FAW, and Dongfeng Peugeot-Citroën, with its products present in over 8.1 million vehicles globally [7].

Financial Transactions - ECARX Holdings made advances totaling US$50.9 million to ECARX Technology Limited in 2022[45]. - In 2023, ECARX Technology Limited repaid US$119.3 million to ECARX Holdings[46]. - ECARX Holdings provided loans amounting to US$15.0 million to ECARX (Hubei) Tech Co., Ltd. in 2023[46]. - ECARX Holdings made advances of US$115.0 million to ECARX Group Limited in 2023[46]. - ECARX Holdings received US$8.8 million as repayment from ECARX Sweden AB in 2022[45]. - ECARX (Hubei) Tech Co., Ltd. repaid RMB150.0 million to JICA Intelligent in 2023[46]. - In 2022, Hubei ECARX received RMB157.0 million in loans from subsidiaries, highlighting inter-company financial activities[48]. - ECARX Holdings paid advances of US$50.9 million (RMB 337.4 million) to ECARX Technology Limited and US$21.0 million (RMB 139.4 million) to ECARX Group Limited, which were eliminated as inter-company transactions[67]. - The company provided loans of RMB 157.0 million to former VIEs and received loans of RMB 200 million from JICA Intelligent, with repayments of RMB 50 million made in September 2022[68]. Financial Performance - For the fiscal year ended December 31, 2022, ECARX reported total revenues of RMB3,561.99 million, with a gross profit of RMB993.88 million[57]. - The net loss for the year ended December 31, 2022, was RMB1,607.15 million, reflecting significant operational challenges[57]. - As of December 31, 2022, total assets amounted to RMB4,731.03 million, while total liabilities were RMB4,765.49 million, indicating a shareholders' deficit of RMB34.46 million[62]. - ECARX Holdings' accumulated deficit as of December 31, 2022, was RMB5,730.18 million, reflecting ongoing financial challenges[62]. - For the fiscal year ended December 31, 2022, ECARX Holdings reported a net cash used in operating activities of RMB (461,337) thousand[66]. - The company generated RMB 224,031 thousand from former VIEs in operating activities, while other subsidiaries reported a cash outflow of RMB (662,799) thousand[66]. - Total cash used in investing activities amounted to RMB (313,039) thousand, with significant cash outflows for property and equipment purchases totaling RMB (157,286) thousand[66]. - Financing activities provided a net cash inflow of RMB 657,767 thousand, primarily from proceeds of short-term borrowings totaling RMB 1,270,000 thousand[72]. - Negative cash flows from operating activities were RMB461.3 million, RMB1,233.0 million, and RMB430.3 million (US$58.9 million) in 2022, 2023, and 2024, respectively[98]. Corporate Structure and Regulatory Environment - The restructuring in 2022 terminated the VIE corporate structure, which had been subject to increased regulatory scrutiny[32]. - As of the date of the report, no penalties or disciplinary actions have been imposed on ECARX's mainland China subsidiaries for insufficient approvals[37]. - ECARX Holdings does not expect to be identified as a Commission-Identified Issuer under the HFCAA after filing its annual report for the fiscal year ended December 31, 2024[35]. - The company is subject to complex regulations in China, which could impact its ability to conduct business and affect the value of its securities[77]. - The PRC government has significant oversight over the company's operations in China, which could materially impact business and financial condition[193]. - The evolving legal landscape in China poses risks regarding compliance and enforcement of laws, potentially impacting the company's operations and reputation[196]. - The PRC government has increased oversight on overseas offerings by China-based companies, with new regulations effective from March 31, 2023[202]. - The Overseas Listing Filing Rules require issuers to file with the CSRC for various offerings, including additional convertible bonds and secondary listings[202]. - The PCAOB's ability to inspect auditors in mainland China has been restored, but future access remains uncertain, impacting investor confidence[209]. - If the PCAOB cannot inspect auditors in mainland China, the company's securities may be prohibited from trading in the U.S. under the HFCAA[211]. Market and Competitive Risks - The company faces significant risks including a limited operating history, competition in the automotive intelligence industry, and reliance on a concentrated customer base[75]. - The automotive intelligence market is highly competitive, with many competitors having significantly greater resources, which may adversely affect the company's financial condition and results of operations[95]. - The demand for the company's products is dependent on the evolving market for intelligent vehicles, which is characterized by rapidly changing technologies and intense competition[86]. - Changes in automobile sales and market demand can adversely affect the company's business and earnings[83]. - A prolonged downturn in the Chinese or global economy could adversely affect the company's business and financial condition, particularly in the automotive sector[117]. - Geopolitical tensions, including conflicts in the Red Sea and between Russia and Ukraine, may disrupt global economic activities and supply chains, adversely affecting the company's business[172]. Operational and Strategic Challenges - The company is investing significantly in research and development, but these investments may not result in marketable products or services[81]. - Supply chain disruptions, particularly in semiconductor manufacturing, could materially affect the company's production and profitability[89]. - The company faces risks associated with international operations and expansion, which may increase expenses and regulatory burdens[105]. - The company may experience delays or disruptions in expanding or converting production facilities, which could adversely affect financial condition and production capacity[127]. - The company relies on complex machinery for production, which may face unexpected malfunctions, impacting operational efficiency and costs[124]. - The company has made several acquisitions, including controlling interests in JICA Intelligent and Suzhou Photon-Matrix, to enhance its product offerings and strategic objectives[121]. Legal and Compliance Risks - The company faces inherent business risks related to warranty claims and product liability, which could lead to significant delays in shipment and increased costs[107]. - Legal proceedings and commercial disputes could have a negative impact on the company's profitability and financial position[119]. - The company is subject to compliance-related concerns due to interactions with government agencies and state-owned entities, which may lead to legal and financial repercussions[145]. - The company faces risks related to cybersecurity and data protection laws, which could result in legal proceedings and increased operational costs[133]. - Non-compliance with data protection laws could result in significant fines, penalties, and damage to the company's reputation[143]. Human Resources and Reputation Risks - The company’s ability to attract and retain qualified personnel is challenged by high demand and intense competition in the automotive intelligence technologies sector[150]. - The company’s brand and reputation are vulnerable to negative publicity, which could adversely affect its business and results of operations[154]. - The company has implemented policies to ensure compliance with anti-corruption and anti-bribery laws, but these may not be sufficient to prevent improper conduct[146]. Environmental and Safety Risks - Environmental regulations could impose substantial costs and delays in building production facilities, potentially affecting the company's financial condition[130]. - Compliance with environmental laws may increase the cost of energy and raw materials, impacting manufacturing processes and product pricing[131]. - Natural disasters and pandemics could disrupt production and operations, leading to significant costs and adverse effects on financial performance[173]. Intellectual Property Risks - The company may incur substantial costs defending against intellectual property infringement claims, which could adversely affect business operations and financial condition[179]. - Unauthorized use of intellectual property by third parties could harm the company's competitive position and future revenues[181]. - As of December 31, 2024, the company holds 692 registered patents and has 729 pending patent applications globally, indicating a strong focus on intellectual property[183]. - The company relies on proprietary information, including trade secrets and know-how, to protect non-patentable technologies, which may not be fully secure against unauthorized access[184]. Financial and Capital Structure Risks - Future capital needs may require the company to issue additional equity or debt securities, potentially diluting shareholder interests[116]. - The company may rely on dividends from subsidiaries for cash and financing needs, which could be limited by regulatory constraints[226]. - Current regulations allow mainland China subsidiaries to pay dividends only from accumulated after-tax profits, subject to statutory conditions[224]. - The outstanding amount of loans to mainland China subsidiaries is limited to 200% of their net assets under the new foreign debt mechanism[220].

Core Viewpoint - ECARX Holdings Inc. showcased its financial milestones and strategic initiatives for 2024, emphasizing its vision for growth and confidence in achieving positive EBITDA for 2025 during its Investor Day 2025 event in Hong Kong [1][2]. Financial Milestones - ECARX achieved breakeven at the EBITDA level in Q4 2024, with total revenue growing 18% year-over-year to RMB 5.6 billion [3]. - The gross margin for 2024 was 21%, reflecting improvements in product cost optimization and operational efficiency [3]. - Total shipments reached a record high of 2 million units in 2024, marking a 33% year-over-year increase, with Q4 shipments alone totaling over 700,000 units, up 10% from the previous quarter [3]. Global Expansion - ECARX secured a new project with Volkswagen Group to deploy a complete digital cockpit solution in vehicles launching in Brazil and India by the end of the decade [5]. - The company expanded its global customer base to 18 automakers across 28 brands, including Skoda, Volvo, and Mazda [6]. - ECARX established European headquarters in London and R&D centers in Sweden, Germany, and the US, with plans for an office in Singapore [6]. Technological Innovation - ECARX's R&D roadmap aligns with trends in software-defined vehicles and E/E architecture, with R&D expenses consistently accounting for 15-20% of total revenue [7]. - The company has expanded its product offerings with advanced solutions like the Skyland Pro intelligent driving solution and AutoGPT, enhancing the in-vehicle experience [7]. - ECARX's Cloudpeak software solution integrates multiple operating systems to optimize user experience, validated by global vehicle launches [8]. Positive Outlook for 2025 - Management expressed confidence in achieving positive EBITDA for the full year 2025, focusing on R&D investment, product cost optimization, and operational efficiency [10]. - The company aims to balance revenue growth, profitability, and capital investment to ensure sustainable growth in 2025 [10].

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was RMB1.9 billion, an increase of 4% year-over-year and 36% sequentially [29] - Full year total revenue reached RMB5.6 billion, up 18% year-over-year; gross profit was RMB1.2 billion, down 9% year-over-year, with gross margins at 20.8% [34] - The company achieved breakeven at the EBITDA level during Q4 2024, with adjusted EBITDA gains of RMB74 million, a significant improvement from a loss of RMB236 million in the same period last year [33][34] Business Line Data and Key Metrics Changes - Sales of goods revenue for Q4 2024 was RMB1.5 billion, up 16% year-over-year, driven by demand for computing platforms like Antora and Makalu, which accounted for approximately 29% of sales of goods revenue [29] - Software license revenue was RMB90 million, a decrease of 3% year-over-year, while service revenue was RMB326 million, down 31% year-over-year but up 102% sequentially [30] Market Data and Key Metrics Changes - Global vehicle sales grew by approximately 2% in 2024 to 91 million, with China’s passenger vehicle sales increasing 6% to 28 million, primarily driven by NEVs [8] - ECARX technology was incorporated in over 8.1 million vehicles on the road by the end of 2024, with total shipments reaching a record high of 2 million, up 33% year-over-year [11] Company Strategy and Development Direction - The company aims to strengthen its position as a leading provider of intelligent solutions for automakers, focusing on software-defined vehicles and expanding its portfolio of cost-effective solutions [7] - A USD 20 million share repurchase program was announced, reflecting confidence in future growth prospects [15] - The company plans to further improve operational efficiency and product costs, focusing on procurement, supply chain, and manufacturing strategies [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving positive EBITDA for the full year 2025, emphasizing the importance of cash flow and financial health for global expansion [53] - The company is aware of pricing pressures in the industry but is focused on optimizing costs and improving operational efficiency to maintain margins [32][60] Other Important Information - The company secured a new project with Volkswagen Group, expanding its global customer base to 18 automakers across 28 brands [12] - The company has a robust intellectual property portfolio with 692 registered patents and 723 patent pending applications globally as of December 31, 2024 [24] Q&A Session Summary Question: Could you share the company's global production capacity layout and how you expect to pace the implementation of global orders in the coming years - The company ramped up manufacturing capabilities in China and plans to use contract manufacturing partners globally to expand production capacity [44] Question: What's your current plan for ADAS or AD products, which clients are you working with - The company is investing in the Skyline Pro product and working with various clients, including Geely, to enhance its ADAS offerings [45][46] Question: Can the management share some color or guidance for revenue, gross margin, and also the breakeven point of 2025 - The main priority for 2025 is achieving breakeven, with revenue growth being secondary [52][53] Question: Can you provide a revenue breakdown by clients for '24, and maybe share your outlook for your current mix for the next 5 years to 10 years - In 2024, nearly 80% of revenue came from Geely and related businesses, with plans to diversify further in the coming years [83] Question: Do we see any impact on our business with Lincoln Co, given their merger into Zeker - The company does not expect significant impact and continues to maintain a strong partnership with Lincoln Co [86] Question: Is the Galaxy E8 using our Pikes computing platform - The Galaxy E8 uses the Flyme Auto software, but the hardware is from another supplier; however, the company provided the Skyline ADAS system for the vehicle [88]

Financial Highlights - Q4 2024 revenue reached RMB 19407 million, a 4% year-over-year increase[13, 51] - FY24 revenue totaled RMB 56 billion, up 18% year-over-year[13] - Q4 2024 gross profit was RMB 411 million, with a gross margin of 21%[13, 53] - FY24 gross profit amounted to RMB 1154 million, with a gross margin of 21%[13] - Q4 2024 adjusted EBITDA was RMB 744 million, resulting in an adjusted EBITDA margin of 4%[55, 70] - Q4 2024 net loss was RMB 395 million, representing a net margin of -2%[57, 67] - FY24 net loss was RMB 9899 million[67] Operational Metrics - ECARX products are integrated into over 81 million vehicles as of December 31, 2024[13] - The company serves 18 OEMs across 28 vehicle brands as of December 31, 2024[13] - Geely Geome E02 achieved cumulative shipments of over 21 million as of December 31, 2024[38] Product and Technology - ECARX has a major presence across three continents with R&D centers and operation centers[17, 18, 21, 22] - ECARX Cloudpeak software solution offers customizable cross-domain software development solutions[27] - ECARX is developing AI solutions including AI Voice, AI Scene Engine, and ADAS Copilot[31]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was RMB1.9 billion, up 4% year-over-year and 36% sequentially [29] - Full year revenue reached RMB5.6 billion, an 18% increase year-over-year [34] - Gross margin for Q4 was 21.2%, while the full year gross margin was 20.8% [31][34] - Adjusted EBITDA for Q4 was RMB74 million, a significant improvement from a loss of RMB236 million in the same period last year [33] Business Line Data and Key Metrics Changes - Sales of goods revenue for Q4 was RMB1.5 billion, up 16% year-over-year, driven by demand for Antora and Makalu platforms [29] - Software license revenue decreased by 3% year-over-year to RMB90 million, while service revenue dropped 31% year-over-year to RMB326 million [30] - Total shipments reached 2 million units for the year, a 33% increase year-over-year [11] Market Data and Key Metrics Changes - Global vehicle sales grew by approximately 2% in 2024 to 91 million, with China’s passenger vehicle sales increasing by 6% to 28 million [8] - NEV sales in China surged to 30 million, up 36%, accounting for over 40% of total sales [8] Company Strategy and Development Direction - The company aims to achieve positive EBITDA for the full year 2025, focusing on breakeven as a top priority [52][53] - Plans to expand global customer base and deepen relationships with existing customers, including a new project with Volkswagen [12][16] - Emphasis on technological innovation and diversifying the customer base globally [28] Management's Comments on Operating Environment and Future Outlook - Management noted the automotive market is growing slowly but remains competitive, highlighting the importance of differentiation [7][9] - The company is optimistic about future growth prospects, particularly in the software-defined vehicle segment [14] - Management acknowledged challenges in maintaining margins due to industry-wide pricing pressures but plans to optimize costs [32][60] Other Important Information - The company has a robust intellectual property portfolio with 692 registered patents and 723 pending applications [24] - A USD 20 million share repurchase program was announced, reflecting management's confidence in future growth [15] Q&A Session Summary Question: Global production capacity layout and implementation of global orders - Management discussed ramping up manufacturing capabilities in China and plans to use contract manufacturing partners for global expansion [42][44] Question: Current plan for ADAS products and growth opportunities with Geely - Management highlighted ongoing investments in ADAS and the importance of the Skyline Pro product in their roadmap [45][55] Question: Guidance for 2025 regarding revenue and gross margin - Management emphasized breakeven as the main priority for 2025, with revenue growth as a secondary focus [52][53] Question: Revenue breakdown by clients and outlook for Geely's supply chain consolidation - Management indicated that approximately 80% of revenue in 2024 came from Geely, with plans to diversify further [83] Question: Impact of Lincoln Co merger into Zeker and Galaxy E8's computing platform - Management stated that there would be minimal impact on business with Lincoln Co and clarified that Galaxy E8 uses a different hardware supplier but incorporates their ADAS system [87][88]

Core Viewpoint - ECARX Holdings Inc. reported strong financial performance for 2024, with an 18% year-over-year revenue increase and a narrowing operating loss, achieving breakeven at the EBITDA level in Q4 2024, indicating positive momentum for future growth [2][3]. Financial Performance - **Fourth Quarter 2024 Results**: Total revenue was RMB 1,940.7 million (US$ 265.9 million), up 4% year-over-year. Sales of goods revenue increased by 16% to RMB 1,524.9 million (US$ 208.9 million), driven by a RMB 540 million rise in automotive computing platform product sales [3][21]. - **Full Year 2024 Results**: Total revenue reached RMB 5,561.3 million (US$ 761.9 million), an 18% increase from RMB 4,699.6 million in 2023. Sales of goods revenue rose 33% to RMB 4,405.5 million (US$ 603.6 million) [4][21]. - **Gross Profit and Margin**: Gross profit for Q4 2024 was RMB 410.9 million (US$ 56.4 million), with a gross margin of 21%. For the full year, gross profit was RMB 1,154.2 million (US$ 158.1 million), also with a gross margin of 21%, down from 27% in 2023 [3][21]. - **Net Loss**: The net loss for Q4 2024 was RMB 39.5 million (US$ 5.3 million), significantly reduced from RMB 326.7 million in the same period last year. The full-year net loss was RMB 989.9 million (US$ 135.6 million), a 3% decrease from RMB 1,015.6 million in 2023 [3][21]. Business Highlights - **Record Shipments**: Total shipments reached a record high of 2 million units in 2024, a 33% increase from the previous year, with over 700 thousand units shipped in Q4 alone [2][6]. - **Global Customer Base Expansion**: The company expanded its global customer base to 18 automakers across 28 brands, including a recent partnership with Volkswagen Group [2][6]. - **Technological Advancements**: ECARX integrated DeepSeek into its AutoGPT in-vehicle AI large language model, enhancing the in-vehicle experience for automaker partners [2][6]. - **Strategic Initiatives**: The company announced a US$ 20 million share repurchase program and is exploring capital-raising opportunities to support strategic objectives [2][6]. Research and Development - **R&D Expenses**: Research and development expenses for Q4 2024 were RMB 342.1 million (US$ 46.9 million), down 28% year-over-year, reflecting improved efficiencies [3][21]. - **Product Innovations**: New product launches included the Galaxy EX5, the first overseas model integrating the Antora 1000 computing platform, and the Skyland Pro ADAS solution integrated into Geely's G-Pilot system [6][11]. Market Position - **Industry Context**: ECARX is positioned as a global mobility tech provider, focusing on delivering innovative solutions for next-generation smart vehicles, capitalizing on the growing demand for software-defined vehicles [9][10].

Core Insights - ECARX Holdings Inc. announced the integration of its Skyland® Pro intelligent driving solution into Geely's G-Pilot system, which will be featured in all future vehicles under Geely's Galaxy brand, including the newly launched Galaxy E8 sedan [1] - Skyland® Pro addresses the demand for high-performance, cost-effective intelligent driving solutions, enabling faster market entry for automakers and offering features like automated parking assistance and highway autopilot [2] - The Skyland® Pro platform is positioned to meet the growing demand for advanced driver-assistance systems (ADAS) and vehicle intelligence, contributing to long-term growth and innovation in the automotive sector [3] Company Overview - ECARX is a global automotive technology provider that delivers comprehensive 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 employs over 1,800 people across 12 locations worldwide and collaborates with major automakers, including Geely, FAW, and Dongfeng Peugeot-Citroën [5] - ECARX products are currently integrated into over 7.3 million vehicles globally, showcasing the company's extensive reach in the automotive market [5]

Company Overview - ECARX Holdings Inc. is a global mobility tech provider specializing in intelligent driving solutions, with its Skyland® Pro solution being integrated into Geely's G-Pilot system for future Galaxy brand vehicles [1][2] - Founded in 2017 and listed on Nasdaq in 2022, ECARX has over 1,800 employees across 12 locations worldwide, including China, the UK, the USA, Sweden, Germany, and Malaysia [5] Product and Technology - The Skyland® Pro solution addresses the industry's need for high-performance, cost-effective intelligent driving technologies, facilitating quicker market entry for automakers [2] - Features of Skyland® Pro include automated parking assistance and highway autopilot, enhancing the driving experience [2] - The solution has already been implemented in vehicles like Lynk & Co 08 EM-P and Lynk & Co 07 EM-P, with over 160,000 units sold collectively [2] Strategic Partnerships - The collaboration with Geely on the G-Pilot system highlights ECARX's commitment to scalable and cost-effective intelligent driving solutions [3] - ECARX also partners with other notable automakers, including FAW and Dongfeng Peugeot-Citroën, expanding its market reach [5] Market Position and Growth Potential - The automotive industry is increasingly competitive, with a focus on Advanced Driver Assistance Systems (ADAS) and vehicle intelligence, positioning Skyland® Pro to capitalize on this demand [3] - ECARX aims to enhance user experience while reducing complexity and costs as automakers develop new electric vehicle architectures [4]