Core Insights - Lotus Cars expresses strong interest and welcomes the Canadian government's recent tariff policy adjustment, reducing the tariff rate on 49,000 imported Chinese electric vehicles from 100% to 6.1% [2] - This policy change is seen as a significant milestone in Sino-Canadian trade relations and is expected to boost Lotus Cars' development in the North American market [2] Group 1: Market Impact - The tariff reduction is anticipated to allow the Lotus Eletre, the brand's first pure electric super SUV, to lower its planned price in Canada by approximately 50%, enhancing its competitive pricing [2] - The price advantage, combined with Lotus Cars' commitment to an exceptional driving experience, is expected to lead to exponential growth in sales volume in Canada [2] Group 2: Strategic Positioning - Lotus Cars has established a global sales network covering 61 countries and regions, with over 210 dealerships, including 6 authorized dealers in Canada, providing comprehensive service from classic fuel models to the latest electric products [3] - The CEO of Lotus Group emphasizes the strategic importance of the Canadian market and the company's readiness to leverage the tariff benefits to increase investment and resources in Canada, allowing more users to experience Lotus Cars' unique electric supercar offerings at competitive prices [3]

Core Viewpoint - The Canadian government's new tariff policy allowing 49,000 Chinese electric vehicles annually at a preferential rate of 6.1% is a significant opportunity for Lotus Technology Inc. to enhance its presence in the North American market [1][7]. Group 1: Market Opportunity - The new tariff policy is expected to reshape the pricing strategy of Lotus Tech's Eletre, reducing its planned retail price by approximately 50% in Canada [2][7]. - Lotus Tech is the only Chinese-made electric vehicle provider entering the North American market in the price segment above US$80,000, positioning it uniquely to benefit from the tariff reduction [7]. Group 2: Strategic Positioning - The company has a well-established retail network in Canada with 6 authorized dealerships, which will facilitate the swift translation of policy benefits into market share [3][4]. - Lotus Tech's global strategic layout includes 210 regional stores across 61 countries, providing a solid foundation for capitalizing on the new market opportunities [3]. Group 3: Leadership Perspective - The CEO of Lotus Tech emphasized the importance of the Canadian market and the company's commitment to enhancing investment and exploring tactical advantages in response to the new tariff policy [4].

Core Viewpoint - Lotus has officially launched two updated models, Emeya and Eletre, targeting the luxury car market with innovative designs and enhanced performance [1][3]. Group 1: Product Launch - Emeya is positioned as a large vehicle with three variants priced between 538,000 and 828,000 yuan, while Eletre is a mid-large SUV with three variants priced between 558,000 and 838,000 yuan [1]. - The design of Emeya features a sharp shark-nose aesthetic, continuing Lotus's distinctive family design while emphasizing a sporty feel [3]. Group 2: Design and Technology - Emeya's interior focuses on luxury and technology, utilizing eco-friendly materials and advanced features such as five digital displays and a 55-inch AR-HUD [5]. - Eletre's design incorporates supercar elements and aerodynamic principles, with features aimed at reducing air resistance [5]. Group 3: Performance - Emeya achieves a 0-100 km/h acceleration time of 2.78 seconds and a top speed of 256 km/h, while Eletre has a 0-100 km/h time of 2.95 seconds and a maximum power output of 675 kW [5]. - Lotus emphasizes its driving capabilities and has developed digital control technologies for its electric vehicles [5][6]. Group 4: Market Challenges - Despite a 86% quarter-on-quarter increase in deliveries in China, Lotus's total global deliveries for the first half of the year were only 2,383 units, falling short of its annual target of 30,000 units [8]. - The luxury car market has seen a decline in sales by 30%-40%, posing challenges for Lotus as it seeks to establish a foothold in the competitive electric vehicle segment [8].

Core Points - Lotus Technology has signed a securities purchase agreement with ATW Partners to issue convertible notes worth up to $300 million (approximately 2.15 billion RMB) [1][6] - The company also signed a credit framework agreement with Geely, allowing for a non-revolving credit line of up to 1.6 billion RMB [6] - Following these announcements, Lotus's stock price increased for three consecutive days, closing at $2.2 per share (approximately 15.7 RMB) on August 22 [6] Financial Performance - In Q1, Lotus delivered a total of 1,274 vehicles globally, with revenue of $93 million (approximately 660 million RMB), a 46% decline year-over-year [6] - The gross profit for the quarter was $11 million (approximately 78.82 million RMB), with a gross margin of 12% [6] - The overall operating loss was $103 million (approximately 740 million RMB), which narrowed by 56% compared to the same period last year [6] Market Strategy - Lotus has rebranded in the Chinese market as "Lotus" and is expanding its product matrix [6][7] - The company plans to launch its first plug-in hybrid model based on the 900V Hyper Hybrid EV technology by the end of 2024 [7] - Lotus aims to maintain a differentiated strategy amidst fierce market competition, optimizing product configurations and expanding its product offerings [7] - The company reported that sales in Europe, China, and North America each accounted for 32% of total sales, with the European market experiencing a 179% year-over-year growth [7]

Core Viewpoint - The ultra-luxury car market in China is experiencing a significant downturn, with a 53% year-on-year drop in sales of vehicles priced over one million yuan in Q1 2025, indicating a faster contraction than the overall industry [1] Group 1: Market Performance - In Q1 2025, sales of million-level luxury cars fell to 21,000 units, a stark contrast to the stable annual sales of around 200,000 units from 2021 to 2023 [1][2] - Lotus Technology reported a 46% decline in revenue year-on-year, but also showed signs of recovery with a 56% reduction in operating losses and an increase in gross margin from 3% in 2024 to 12% in Q1 2025 [2][4] Group 2: Financial Metrics - Lotus's operating loss decreased from $233 million in the previous year to $103 million, while adjusted EBITDA improved from -$200 million to -$136 million, reflecting a 33% reduction [4] - The gross margin increased from 7% to 12% in Q1 2025, indicating a strong recovery despite still being lower than the previous year [5][6] Group 3: Market Strategy - Lotus is focusing on cost control and efficiency improvements, with a continuous decline in operating expenses over six quarters [4] - The company is also diversifying its market presence, achieving a balanced distribution of sales across Europe, China, and North America, each accounting for 32% of total sales [8] Group 4: Future Outlook - The ultra-luxury car market in China is expected to have a long-term demand ceiling, despite current challenges, as the economic level continues to rise [11] - Lotus aims to leverage its historical brand value and technological advancements to differentiate itself in a competitive market, focusing on electric and hybrid models [13][14]

Core Viewpoint - The Lotus Group emphasizes the importance of user training for high-powered vehicles, advocating for a comprehensive training program to ensure safe driving practices, particularly for their Evija model with 2039 horsepower [1][6]. Group 1: Training Initiatives - The Lotus Group has launched a public safety driving training program called the "Lotus Track Safety Driving Camp," which is free and open to everyone, funded with an investment of 20 million yuan [1]. - The training curriculum includes emergency avoidance, moose tests, continuous obstacle avoidance, loss of control adjustments, and safety theory for assisted driving [1]. - Other automotive companies, such as XPeng Motors and Xiaomi, are also introducing user training programs focused on safe driving and understanding the limits of assisted driving technologies [2]. Group 2: Market Challenges - The Lotus Group faces significant challenges in the Chinese market, struggling to achieve expected sales volumes, which are anticipated to be around 2,000 to 3,000 units [11]. - Despite challenges in China, the brand has seen success in international markets such as the UK, Europe, the Middle East, South Korea, and Japan, indicating a balanced global marketing strategy [11]. - The company aims to enhance brand awareness and recognition in China, positioning itself as a competitor to luxury brands like Porsche [11]. Group 3: Corporate Strategy - The Lotus Group is part of Geely Holding Group's broader strategy, which includes ceasing independent electronic architecture development to leverage Geely's existing capabilities [12]. - The company is also providing technical support to other brands within the Geely ecosystem, focusing on lightweight design and chassis tuning [12].

Core Insights - Lotus Technology (Lotus Cars) reported its first annual financial results post-IPO, showing a total revenue of $924 million for 2024, a year-on-year increase of 36% [1] - The company delivered over 12,000 vehicles in 2024, marking a growth of over 70% year-on-year, with Europe becoming the largest market, contributing nearly 40% of global deliveries [1] - Despite revenue and delivery growth, Lotus Cars continues to face profitability challenges, remaining in a loss position even after reducing operating expenses for five consecutive quarters [2] Revenue and Delivery Performance - Total revenue for 2024 reached $924 million, reflecting a 36% increase compared to the previous year [1] - Vehicle deliveries exceeded 12,000 units, with a year-on-year growth of over 70% [1] - European market deliveries surged by 179%, making it the largest market for Lotus in 2024, while China accounted for 25% and North America for 21% of global deliveries [1] Profitability and Break-even Point - The break-even point for Lotus Cars is estimated at annual sales of 30,000 to 40,000 vehicles [3] - The company plans to improve its gross margin by focusing on hybrid electric models, with expectations of returning to double-digit gross margins next year [3] - The introduction of the "Road to Super Hybrid" technology is anticipated to open new opportunities in the ultra-luxury market [3] Market Challenges and Strategic Responses - Recent changes in U.S. tariff policies have posed challenges for Lotus Cars, leading to a halt in shipments of lifestyle vehicles to the U.S. market [6] - The company aims to maintain its sales plans in the U.S. despite tariff impacts, exploring manufacturing options to mitigate these challenges [6] - The ultra-luxury car market is currently under pressure, with a significant decline in sales for vehicles priced over 1 million yuan [7] Brand Strategy and Future Outlook - Lotus Cars has initiated a "Vision 80" brand revival plan since being acquired by Geely in 2017, focusing on high-end electric sports cars [10] - The company has launched several electric models, including the Evija and Eletre, and aims to enhance brand awareness and product explanation to compete effectively in a challenging market [10] - By the end of this year, 60% of Lotus's dealers in China are expected to achieve profitability [10]

Table of Contents As filed with the Securities and Exchange Commission on September 19, 2024 Registration No. 333 - UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM F-1 REGISTRATION STATEMENT Under The Securities Act of 1933 Lotus Technology Inc. (Exact name of Registrant as specified in its charter) Not Applicable (Translation of Registrant's name into English) +86 21 5466 - 6258 (Address, including zip code, and telephone number, including area code, of Registrant's principal e ...