ECARX(US:ECX)2025-08-26 13:00Financial Data and Key Metrics Changes - Total revenue for Q2 was $156 million, with sales of goods revenue at $131 million, reflecting a 1% year-over-year increase driven by double-digit customer demand despite strategic price reductions [24][25] - Gross profit for the quarter was $70 million, a decline of 58% year-over-year, resulting in a gross margin of 11%, down 12% compared to the previous year [25] - Operating expenses were reduced by 20% year-over-year to $57 million, contributing to a slight decline in adjusted EBITDA loss to $30 million from $29 million in the same period last year [26][27] Business Line Data and Key Metrics Changes - The Antora, Vanado, and Skyland platforms contributed 56% to total sales of goods revenue, more than doubling from 28% in the prior year [24] - Service revenue decreased by 34% year-over-year to $23 million, primarily due to lower revenue from non-recurring engineering services [25] Market Data and Key Metrics Changes - Shipments of the Antora series solution surged 112% year-over-year to 135,000 units during the quarter, supporting growth momentum [6] - The company serves 18 OEMs across 28 brands globally, with a significant presence in both the Chinese and international markets [10][17] Company Strategy and Development Direction - The company is focused on achieving EBITDA breakeven in each of the remaining quarters of 2025, with a target of close to 20% revenue growth for the full year [5][27] - A new global headquarters in Singapore is set to open in 2025 to enhance global IP management, R&D collaboration, and supply chain optimizations [9][21] - The company is diversifying its customer base, with Geely accounting for 40-50% of total business and ongoing efforts to expand into international markets [58] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of seasonal headwinds and macroeconomic uncertainties but emphasized solid progress in securing new projects and partnerships [4][24] - The company remains confident in achieving adjusted EBITDA breakeven and expects full-year revenue to recover strongly, driven by volume growth and improved product mix [27] Other Important Information - The company has secured over $1 billion in lifetime revenue from overseas contracts and has 14 active projects with eight different carmakers [6][38] - The company received three ISO certifications for quality management, environmental stewardship, and occupational health and safety, which are prerequisites for collaboration with leading automakers [21] Q&A Session Summary Question: Update on non-automotive business layout and future development - Management expressed optimism about the potential for non-automotive applications, particularly in robotics, leveraging LiDAR technology [33][36] Question: Progress in overseas expansion and international clients - Management highlighted ongoing efforts in Europe and other markets, with 14 active programs and recognition from Volkswagen for innovation capabilities [38][39] Question: Update on in-house chip development - Management confirmed continued growth of the Antora platform and plans to launch Qualcomm A295 products, indicating a robust roadmap for SoC development [40] Question: Volume guidance for the second half of the year - Management projected shipment volumes of 1.4 to 1.5 million vehicles in the second half, aiming for a total of 2.5 to 2.6 million vehicles for the year, reflecting a 30% year-over-year growth [45] Question: Pricing pressures and content per car improvements - Management acknowledged pricing pressures but noted improvements in content per car due to strategic pricing and cost optimization efforts [46][48] Question: Update on ADCU business and collaboration with Qualcomm - Management confirmed plans to work with Qualcomm's SoCs, including the 8,775, and highlighted the development of a Fusion platform for enhanced vehicle features [51][53]