Core Viewpoint - Lotus Technology Inc. (NASDAQ: LOT) is recommended as a Sell for long-term investors despite its storied brand [1] Company Analysis - The analysis begins coverage of Lotus Technology Inc. with a negative outlook for long-term investors [1] - The company has a recognized brand, but further scrutiny reveals potential weaknesses [1]

Group 1: Financial Performance - Lotus Technology reported a total global delivery of 1,274 units in Q1 2025, generating revenue of $93 million [2] - The gross margin for the quarter increased to 12%, showing significant improvement compared to the previous year [2] Group 2: Product Development and Market Strategy - Lotus expanded and upgraded its product matrix, launching updated models Eletre and Emeya, with expected deliveries in the Chinese market in Q2 [2] - The company introduced the EMIRA Clark Edition, a limited edition model honoring legendary racer Jim Clark, with only 60 units available globally [2] - Lotus aims to maintain a differentiated strategy and optimize product configurations to enhance its product matrix amid fierce competition in the global automotive market [2] Group 3: Brand Revival - The return of the Lotus brand name in China is seen as a significant milestone for brand revival, emphasizing its historical importance and connection to the company's legacy [3] - The CEO highlighted the importance of the Lotus name as a guiding asset and a symbol of the brand's heritage and future aspirations in the electric vehicle sector [3] Group 4: Brand Philosophy - Lotus continues to uphold its brand philosophy "For The Drivers," focusing on high-performance electric sports cars that enhance driving experiences [4]

Financial Performance (Q1 2025 vs Q1 2024) - Deliveries decreased by 42%, from 2,194 units in 1Q2024 to 1,274 units in 1Q2025 [13] - Revenues decreased by 46%, from $173 million in 1Q2024 to $92.823 million in 1Q2025 [13, 33] - Cost of revenues decreased by 43%, from $143 million in 1Q2024 to $81.674 million in 1Q2025 [13, 33] - Gross profit decreased by 63%, from $30 million in 1Q2024 to $11.149 million in 1Q2025 [13, 33] - Gross profit margin decreased by 6%, from 18% in 1Q2024 to 12% in 1Q2025 [13] - Operating loss decreased by 56%, from $(233) million in 1Q2024 to $(102.995) million in 1Q2025 [13, 33] - Net loss decreased by 29%, from $(258) million in 1Q2024 to $(182.825) million in 1Q2025 [13, 33] - Adjusted EBITDA decreased by 33%, from $(204) million in 1Q2024 to $(136.403) million in 1Q2025 [13, 35] Assets and Liabilities (Mar 31, 2025 vs Dec 31, 2024) - Total current assets decreased from $1,042.938 million to $1,013.737 million [28] - Total assets decreased from $2,285.663 million to $2,266.871 million [28] - Total current liabilities decreased from $2,467.397 million to $2,246.432 million [28] - Total liabilities increased from $3,145.889 million to $3,308.082 million [30] - Total shareholders' deficit increased from $(860.226) million to $(1,041.211) million [30]

Financial Data and Key Metrics Changes - In Q1 2025, the company delivered nearly 1,300 vehicles to distributors, down 42% year on year, while user vehicle deliveries exceeded 2,000 units, up by more than 10% year on year [6][7] - Quarterly revenues narrowed to $93 million, but gross margin improved to 12%, recovering from negative territory in Q4 of the previous year [8][10] - Cost of revenue decreased by 43% year on year to $82 million, resulting in a gross profit of $11 million [9] - The operating loss for Q1 was $103 million, a 56% year on year decrease, while the net loss was $183 million, representing a 29% reduction [10] Business Line Data and Key Metrics Changes - Lifestyle vehicles accounted for 56% of total Q1 deliveries, consistent with full year 2024 figures [8] - The company is revamping its Electro HyperSUV and EMEA Hyper GT Landmap with upgraded configurations, with deliveries expected to begin in Europe in Q3 [7] Market Data and Key Metrics Changes - By region, Europe, China, and North America each contributed approximately one-third of total deliveries, with the rest of the world accounting for 4% [8] - Current regional share of deliveries since 2024 is 22% in North America, 38% in Europe, 14% for the rest of the world, and 26% for China [19] Company Strategy and Development Direction - The company emphasizes brand establishment, particularly in the sports car segment, and has launched a national level GT1 racing series to enhance brand awareness [11][12] - The company is focusing on developing hyper hybrid EV technology, which has gained significant interest and is expected to debut at the end of this year [13][15] - The strategy includes localization plans in the U.S. to mitigate the impact of tariff hikes [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that the PHEV market is growing rapidly in both China and the U.S., and the company is confident in the acceptance of its hyper hybrid technology [23][24] - The company aims to balance delivery distribution across markets, targeting 30% in the U.S., 30% in the EU, and 30% in China [18] Other Important Information - The company has successfully reduced operating expenses for six consecutive quarters through efficient enhancement plans [10] - The new hyper hybrid model is expected to feature a range of 300 kilometers on electric power and over 1,000 kilometers combined driving range [17] Q&A Session Summary - No formal Q&A session was held, but management addressed questions regarding hyper hybrid initiatives and global market strategies [22] - Insights shared included the unique advantages of Lotus's PHEV technology, which combines ICE and electric motor benefits for performance and energy efficiency [23][24]

Financial Data and Key Metrics Changes - The company delivered nearly 1,300 vehicles to distributors, down 42% year on year [7] - User vehicle deliveries exceeded 2,000 units, up by more than 10% year on year [8] - Quarterly revenues narrowed to $93 million, with a gross margin recovery to 12% [9] - Cost of revenue decreased by 43% year on year to $82 million, resulting in a gross profit of $11 million [10] - Operating loss for Q1 was $103 million, a 56% year on year decrease, while net loss was $183 million, representing a 29% reduction [10] Business Line Data and Key Metrics Changes - Lifestyle vehicles accounted for 56% of total Q1 deliveries, consistent with full year 2024 figures [9] - The company is revamping its Electro HyperSUV and EMEA Hyper GT Landmap with upgraded configurations, with deliveries expected to start in Q2 [8] Market Data and Key Metrics Changes - Deliveries were approximately one-third from Europe, China, and North America, with the rest of the world accounting for 4% [9] - Current regional share of deliveries since 2024: 22% in North America, 38% in Europe, 14% for the rest of the world, and 26% for China [22] Company Strategy and Development Direction - The company emphasizes brand establishment, particularly in the sports car segment, and launched a national level GT1 racing series [13][14] - The focus is on performance and sustainable practices, with the introduction of hyper hybrid EV technology [15] - The company plans to leverage its PHEV and BEV products in the U.S. market while discussing localization plans to mitigate tariff impacts [21][23] Management Comments on Operating Environment and Future Outlook - Management noted the growing interest in PHEV technology, which combines ICE and electric motor advantages [26] - The company believes that its hyper hybrid technology can meet performance and energy-saving demands, particularly in markets with low BEV penetration [18][28] - Future plans include prioritizing hyper hybrid technology for both lifestyle and sports vehicles [29] Other Important Information - The company has successfully reduced operating expenses for six consecutive quarters [11] - The new performance-oriented hyper hybrid model is expected to debut at the end of this year, with deliveries starting in Q1 next year [20] Q&A Session Summary Question: What is the progress of the hyper hybrid initiatives and global market strategies? - Management highlighted the rapid growth of the PHEV market in China and the U.S., emphasizing the unique performance capabilities of their PHEV products [26] - The company is investigating the feasibility of a hyper hybrid sports car to cater to both ICE and electric vehicle enthusiasts [28]

Core Insights - Lotus Technology Inc. reported a significant decline in deliveries and financial performance for Q1 2025, with total deliveries of 1,274 units, a 42% decrease year-on-year [2][5][10] - The company is undergoing a transition period with the introduction of upgraded models, including the Eletre hyper-SUV and Emeya hyper-GT, expected to boost future deliveries [3][4] Operational Highlights - Total deliveries in Q1 2025 were 1,274 units, down from 2,194 units in Q1 2024, with a notable decline in both lifestyle SUVs and sportscars [5][6] - Deliveries by region showed a balanced distribution, with Europe, China, and North America each contributing 32% of total deliveries [6] Financial Highlights - Revenues for Q1 2025 were $93 million, a 46% decrease from $173 million in Q1 2024 [8][10] - Gross profit fell to $11 million, down 63% year-on-year, resulting in a gross margin of 12%, compared to 18% in the same period of 2024 [10][11] - The operating loss narrowed by 56% year-on-year to $103 million, while the net loss was $183 million, a 29% reduction from the previous year [10][11] Recent Developments - Lotus introduced new models such as the 2026 Emira V6 SE and Emira Turbo, targeting international markets [4] - The company launched a national-level GT single-make racing series in China, enhancing its brand presence [17] - Lotus is set to unveil its first PHEV model this year, utilizing its new Hyper Hybrid EV technology [17] Management Commentary - The CEO expressed optimism about the recovery in margin profiles and international market contributions, emphasizing the need for strategic pathways and localization opportunities [13] - The CFO highlighted improvements in cost structure and operational discipline, with six consecutive quarters of reduced operating expenses [13]

Core Viewpoint - Lotus Technology Inc. is set to report its unaudited financial results for the first quarter of 2025 on June 25, 2025, before the market opens in the United States [1]. Financial Reporting - The earnings conference call will take place at 8:00 AM U.S. Eastern Time on June 25, 2025, with a live audio webcast available [2]. - Participants can register for the live webcast and will receive confirmation emails with access information upon registration [2][3]. Company Overview - Lotus Technology Inc. operates in the UK, EU, and China, focusing on luxury lifestyle battery electric vehicles and next-generation automobility technologies such as electrification and digitalization [3].

Core Viewpoint - Lotus Technology Inc. has released its 2024 Environmental, Social, and Governance (ESG) Report, showcasing its commitment to sustainable practices and leadership in clean mobility [1][2]. Group 1: ESG Report Highlights - The 2024 ESG Report has been audited by TÜV NORD, ensuring credibility in its findings [1]. - Lotus Tech received notable awards in 2024, including the Reuters Sustainability Award and the EU Chamber of Commerce Sustainable Business Award, recognizing its achievements in sustainability [2]. Group 2: Innovative Green Products - Lotus Tech introduced its first concept car, Theory 1, which focuses on advanced technology and sustainable development, utilizing only ten main A-surface materials compared to the industry average of 100 [4]. Group 3: Green Manufacturing Excellence - The Lotus Global Smart Factory has achieved the "Leading-Zero Carbon Factory" certification, highlighting its commitment to carbon neutrality and sustainable production practices [4]. Group 4: Global Sustainability Engagement - In 2024, Lotus Tech contributed to the World Economic Forum's Nature Positive Transitions Report series, demonstrating its active participation in global sustainability initiatives [4].

Core Points - Lotus Technology Inc. has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024 with the Securities and Exchange Commission [1] - The annual report is available on the Company's investor relations website and shareholders can request a hard copy of the audited consolidated financial statements free of charge [2] - Lotus Technology Inc. operates in the UK, EU, and China, focusing on luxury lifestyle battery electric vehicles and next-generation automobility technologies [3]

(Address of Principal Executive Offices) Daxue Wang, Chief Financial Officer Email: ir@group-lotus.com No. 800 Century Avenue Pudong District, Shanghai, People's Republic of China (Name, Telephone, Email and/or Facsimile Number and Address of Company Contact Person) Securities registered or to be registered pursuant to Section 12 (b) of the Act: | Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | | --- | --- | --- | | American depositary shares (each representing one ordinar ...