Lotus Technology Inc. American Depositary Shares Q1 FY2025 earnings call

• Launched a national-level GT1 main racing series Lotus car on May 30, with the first race completed in Chengdu. - Released the 2024 year ESG report highlighting sustainable practices and green mobility efforts. - Progress on Hyper Hybrid EV Technology, with the new model expected to debut end of this year and deliver in Q1 next year. - Model year '26 EMIRA started delivery in August, Eletre and Emeya model year '26 started in China and will commence in EU. - Reduced operating expenses for 6 consecutive quarters due to efficient enhancement plans.

In Q1, Lotus Technology delivered nearly 1,300 vehicles to distributors, up 42% y-o-y, and user vehicle deliveries exceeded 2,000 units, up over 10% y-o-y. By category, lifestyle vehicles accounted for 56% of total Q1 deliveries. By region, Europe, China, and North America each contributed approximately 1/3 of total deliveries, with the rest of the world region accounting for 4%. Quarterly revenues narrowed to USD 93 million. Cost of revenue decreased by 43% y-o-y to USD 82 million, resulting in gross profit of USD 11 million. Operating loss was USD 103 million, a 56% y-o-y decrease, and net loss was USD 183 million, a 29% reduction.

• Upgraded models started delivery in Q2, with deliveries in Europe expected in Q3. - Initial target for delivery distribution: 30% in U.S., 30% in EU, 30% in China, 1% in rest of the world. - Discussing localization plans in U.S. with strategic partners to avoid influence of U.S. tariff hikes.

• U.S. tariff hikes impacting vehicle exports to the U.S. market. - Uncertainties related to forward-looking statements as actual results may differ from views expressed.

Q: Regarding the progress of Hyper Hybrid initiatives and global market strategies A: Feng Qingfeng shared insights on PHEV market growth, Lotus PHEV's unique structure combining ICE and electric motor advantages, thorough study of U.S. and EU markets for Hyper Hybrid Technology, and investigation of feasibility of Hyper Hybrid Sportscar