Financial Data and Key Metrics Changes - Total revenue for Q1 2025 reached RMB 1.2 billion, a 30% increase year over year [20] - Sales of goods revenue was RMB 879 million, up 16% year over year [20] - Gross profit for the quarter was RMB 243 million, up 19% year over year, resulting in a gross margin of 19.8% [21][22] - Adjusted EBITDA loss improved significantly compared to a loss of RMB 224 million during the same period last year [22] Business Line Data and Key Metrics Changes - In-house developed platforms contributed approximately 39% to total sales of goods revenue, reinforcing the in-house development strategy [20] - Software license revenue surged 148% year over year, driven by increased demand and a one-time software license contract [21] - Service revenue increased by 49% year over year, primarily due to design and development contracts and growth in overseas cloud services [21] Market Data and Key Metrics Changes - Global vehicle sales fell 5.6% year over year, while the China market grew 12.9% year over year [6] - Shipments surged to 684,000 units, a 35.8% increase year over year [7] - The company serves 18 OEMs across 28 brands globally, indicating a growing scale and trust from global automakers [10] Company Strategy and Development Direction - The company aims to capitalize on the growing demand from global automakers for unique driving experiences and intelligent solutions [6] - A significant milestone was achieved with the successful integration of intelligent driving and parking capabilities into the Antora platform [16] - Plans to establish a global supply chain center and international engineering center in Singapore to enhance global operations [18][54] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing opportunities as the automotive industry transforms towards software-defined intelligent vehicles [19] - The company remains focused on expanding its customer base and improving operational efficiency to enhance financial performance [23] - Management highlighted a robust pipeline of new projects and ongoing global expansion [9][19] Other Important Information - The company hosted an Investor Day in Hong Kong, showcasing its positive outlook for 2025 and ongoing technological innovations [8] - The company has expanded its intellectual property portfolio to 705 registered patents and 778 pending applications as of March 31, 2025 [17] Q&A Session Summary Question: Update on Skyline's recent orders and profitability - Management reported good orders for Skyline in Q1, with fair market gross margins and confidence in maintaining goals for the product line [28][30] Question: Additional pressure for annual cost down - Management indicated that they are competitive in the China market and have achieved yearly cost reductions from OEM customers [30] Question: Involvement in the Cheney Hong Han H3 program - Management confirmed close partnership with GD and mentioned ongoing developments in the ADAS roadmap [32] Question: New business announcements within automakers - Management highlighted the partnership with Volkswagen Group and ongoing strong performance from GD's product lines [36] Question: Impact of US tariffs on supply - Management acknowledged significant challenges from US tariffs but emphasized their contract manufacturing model mitigates these impacts [41][72] Question: Outlook for partnerships with international OEMs - Management noted strong interest from global automakers and ongoing discussions, particularly following the Shanghai Auto Show [50] Question: Establishment of supply chain and engineering center in Singapore - Management elaborated on the strategic importance of the Singapore center for global supply chain activities and IP management [53][54] Question: Integration of driving and cabin features - Management confirmed the Antora platform's capabilities for integrating smart cabin and ADAS features, with ongoing customer interest [60][62] Question: Sustainable demand for Geely Galaxy - Management expressed optimism about sustained demand for Geely Galaxy models, supported by strong market performance [59]