Lotus Technology(US:LOT)2025-11-24 13:02Financial 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 by the end of September, with a balanced distribution across Europe, China, North America, and other markets [15] 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 preparing to enter new markets, starting with Brazil, which has a growing new energy vehicle penetration rate [18] - The acquisition of Lotus UK is progressing, with expectations to complete the merger by 2026, aiming to operate under a unified global strategy [23][24] Management's Comments on Operating Environment and Future Outlook - Management highlighted a transitional period characterized by tariffs, destocking activities, and upgraded module deliveries impacting performance [4] - The company remains focused on prudent resource allocation and margin enhancement while preparing for a dynamic operating environment [9] - Management expressed confidence in improving gross margins due to the launch of PHEV products and the penetration of facelifted BEV products in global markets [37] Other Important Information - The company achieved several key milestones amid market competition, including participation in major automotive events and successful racing series [10][11][12] - The company is implementing cost-to-country measures and optimizing its store portfolio to enhance efficiency [16][17] Q&A Session Summary Question: Could you elaborate on the key highlights of the upcoming PHEV models and the strategic rationale behind those products? - Management highlighted that 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 rapid growth of the premium vehicle market in China and the underdeveloped competition in the premium E-segment hybrid SUV space [29][30] Question: Do you have any guidance on your gross margin for this year and next year? - Management expects the gross margin for the full year to remain in the high single-digit range, with further improvements projected due to the launch of PHEV products and increased sales of facelifted BEV products [36][37]