Financial Data and Key Metrics Changes - In Q3 2025, the company delivered nearly 1,800 vehicles, representing a 35% decrease year-on-year but a 28% increase quarter-on-quarter [4] - Revenue for Q3 was $137 million, down 46% year-on-year but up 10% sequentially, with total revenue for the first nine months at $356 million, down 45% year-on-year [4][5] - Gross margin improved by 8% in Q3, up 3 percentage points from the previous quarter and 5 percentage points from the same period last year [5] - The operating loss for Q3 was $95 million, a 41% improvement year-on-year, while the net loss was $65 million, a 68% improvement year-on-year [8] Business Line Data and Key Metrics Changes - Lifestyle vehicles accounted for 77% of total deliveries in Q3, down from 83% in Q2, contributing 72% of total deliveries for the first nine months [5][6] - Deliveries in the U.S. sports car market began a gradual recovery in Q3 after tariff disruptions were resolved [6][7] Market Data and Key Metrics Changes - Delivery growth in China for the first nine months outpaced the broader premium auto segment, indicating competitive strength in a challenging environment [7] - The company had 213 retail stores worldwide, with a balanced distribution across Europe, China, North America, and other markets [14] Company Strategy and Development Direction - The company plans to unveil a new PHEV model to expand its electrification product roadmap and address consumer demand in diversified powertrain segments [9] - The company is optimizing its global presence and enhancing retail efficiency, including relocating its European headquarters back to the U.K. to cut operational expenses [16] - The acquisition of Lotus UK is progressing, with expectations to complete the merger in 2026, aiming to operate under a unified global identity [22][24] Management's Comments on Operating Environment and Future Outlook - Management highlighted a transitional period characterized by tariffs and destocking activities, but expressed confidence in future gross margin improvements due to new product launches and operational efficiencies [4][39] - The premium vehicle market in China is rapidly growing, with a significant share of plug-in hybrids, presenting an opportunity for the company [29][31] Other Important Information - The company achieved several key milestones, including participation in IAA Mobility 2025 and positive feedback from the public regarding its design exhibitions [10][12] - The introduction of hybrid models is expected to attract new customer segments and expand into markets with slower EV adoption [21] Q&A Session Summary Question: Key highlights of the upcoming PHEV models and strategic rationale - The hybrid model features the best energy-efficient engine, performance hybrid systems, and high power motor, showcasing Lotus' DNA in handling and performance [27] - The strategic rationale includes the growing premium vehicle market in China, where plug-in hybrids are a major driver of new energy vehicle expansion [29][31] Question: Guidance on gross margin for this year and next year - The gross margin for the full year is expected to remain in the high single-digit range, with further improvements projected due to new product launches and supply chain integration [38][39]

Financial Data and Key Metrics Changes - In Q3 2025, the company delivered nearly 1,800 vehicles, representing a 35% decrease year-on-year but a 28% increase quarter-on-quarter [4] - Revenue for Q3 was $137 million, down 46% year-on-year but up 10% sequentially, with total revenue for the first nine months at $356 million, down 45% year-on-year [4] - Gross margin improved by 8% in Q3, up 3 percentage points from the previous quarter and 5 percentage points from the same period last year [5] - The operating loss for Q3 was $95 million, a 41% improvement year-on-year, while the net loss narrowed to $65 million, down 68% year-on-year [7] Business Line Data and Key Metrics Changes - Lifestyle vehicles accounted for 77% of total deliveries in Q3, down from 83% in Q2, contributing 72% of total deliveries for the first nine months [5] - Deliveries in the U.S. sports car market began a gradual recovery in Q3 after tariff disruptions were resolved [6] Market Data and Key Metrics Changes - Delivery growth in China for the first nine months outpaced the broader premium auto segment, indicating competitive strength in a challenging environment [6] - The company had 213 retail stores worldwide, with a balanced distribution across Europe, China, North America, and other markets [13][14] Company Strategy and Development Direction - The company plans to unveil a new PHEV model to expand its electrification product roadmap and address consumer demand in diversified powertrain segments [8] - The acquisition of Lotus UK is progressing, with expectations to complete the merger in 2026, aiming to streamline operations and enhance global brand recognition [20][21] Management's Comments on Operating Environment and Future Outlook - Management highlighted a commitment to cost discipline and inventory optimization, resulting in significantly narrowed losses for both the quarter and year-to-date [7] - The gross margin for the full year is expected to remain in the high single-digit range, with projections for further improvement due to new product launches and supply chain integration [34] Other Important Information - The company showcased its concept cars at IAA Mobility 2025, emphasizing its brand legacy and electric strategy [9] - The introduction of hybrid models aims to attract new customer segments and expand into markets with slower EV adoption [19] Q&A Session Summary Question: Key highlights of the upcoming PHEV models and strategic rationale - The hybrid model features the best energy-efficient engine, performance hybrid systems, and high power motor, showcasing Lotus' DNA in handling and performance [25] - The strategic rationale includes tapping into the rapidly growing premium vehicle market in China, where plug-in hybrids are gaining significant traction [27][28] Question: Guidance on gross margin for this year and next year - The gross margin for the full year is expected to remain in the high single-digit range, with further improvements projected due to new product launches and supply chain efficiencies [34]