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 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]