ECARX Holdings, Inc. Q2 FY2025 earnings call

• Continued momentum despite seasonal headwinds, secured key new projects, expanded partnerships. - Shipped 532,000 units, total vehicles on road with ECARX tech over 9.3 million. - Antora series solutions shipments up 112% y-o-y to 135,000 units. - Geely's Galaxy brand surpassed 1 million sales milestone. - Accepted Volkswagen Brazil's Technical Development and Innovation Award. - Began monetizing automotive R&D in robotics with robotic lawn mower partnership. - New global headquarters in Singapore to open in H2 2025. - Shipped 532,000 units, served 18 OEMs across 28 brands. - Secured 14 new projects from Geely, solutions enabled Geely's sales growth. - Formalized partnership to provide Venado platform to top Chinese automaker. - Building customized intelligent cockpit OS for premium global brand. - Technical leadership validated in robotics with robotic lawn mower integration. - Technology pivotal in Geely model launches, e.g., Boyue L, Galaxy M9, Galaxy A7. - Business development at Shanghai Auto Show expanded pipeline. - 14 active EU projects with 8 automakers, 4 wins to date. - Released Google Automotive Services Integration white paper. - Showcased AI at World Artificial Intelligence Conference. - Completed system software development for 5-in-1 Antora solution. - 724 registered patents and 825 pending applications. - Fuyang plant at 80% utilization, hit 1M unit annual capacity. - Deepened partnership with Samsung, collaborated with Monolithic Power Systems. - New global headquarters in Singapore to act as hub for IP, R&D, etc. - Received 3 ISO certifications.

Total revenue for the quarter was USD 156 million. Sales of goods revenue was USD 131 million, a 1% year-over-year increase. The Antora, Venado and Skyland platforms now contribute 56% to total sales of goods revenue, more than doubling from 28% in the prior year period. Software license revenue decreased 85% year-over-year to USD 1.2 million. Service revenue was USD 23 million, down 34% year-over-year. Gross profit for the quarter was USD 70 million, with a gross margin of 11%, a 12% decrease compared with the prior year period.

• Expect to reach EBITDA breakeven and 20% revenue growth. - Second half volume expected 1.4-1.5 million vehicles, full year ~2.5-2.6 million (30% y-o-y growth). - Achieved 20% cost reduction through relentless efforts. - Focus on software and global expansion to drive margin recovery and profitable growth. - Software partnerships like Flyme Auto to improve gross margin.

Q: About nonautomotive business layout, progress in overseas expansion, and in-house chip development.

A: Nonautomotive business has potential in robotics space with LiDAR; global expansion has over $1B lifetime revenue on won programs, 14 active EU projects; Antora platform and Qualcomm 8295 product in market.

Q: Volume guidance, pricing, and ADCU business.

A: Second half volume 1.4-1.5 million, full year ~2.5-2.6 million; pricing strategy includes cost optimization and solution selling; ADCU business has Antora platform and exploring Qualcomm Flex SoCs like 8775.

Q: Growth drivers for second half and next year, and customer cooperation.

A: Diversified customer base with 60% China OEMs and 40% global OEMs, adding new global OEMs, global activity robust with 8 carmakers and potential revenue in late 2026.