Lotus Technology Inc. Warrants Q4 FY2024 earnings call

• Delivered over 12,000 vehicles in 2024, with Q4 up 20% y-o-y.
• Achieved 5 consecutive quarters of operating expense reduction.
• Launched Theory 1 concept car with sustainable materials.
• Reclaimed Lotus trademark in China in January 2025.
• Refreshed Eletre and Emeya models in February 2025, with EU and rest of world deliveries starting Q2.
• Launched mapless urban NOA in 16 Chinese cities in February 2025, with OTA rollout to over 100 cities by Q2.
• Partnered with CaoCao Mobility for robotaxi pilot in Hangzhou and Suzhou.
• Received Put Option from Geely to acquire 51% of Lotus U.K., expected to close in 2025.
• Evija hypercar delivery ongoing; Emira Sportscar to get model year '26 for U.S. market; plan to launch PHEV in 2025 and new model in 2027.

In 2024, Lotus delivered over 12,000 vehicles, with Q4 delivering over 4,500 vehicles (+20% y-o-y). Full-year revenue was $924M (+36% y-o-y), while Q4 revenue was $272M (-12% y-o-y). Lifestyle vehicles increased 55% y-o-y and accounted for 57% of total deliveries. Regionally, Europe contributed nearly 40% of deliveries (+180% y-o-y), China 25%, North America 21%, and rest of the world 15% (+90% y-o-y). Cost of revenues was $301M for full year and $895M for Q4. Gross profit margin was 3% for full year and 11% for Q4.

• Delivered over 12,000 vehicles in first 3 months of 2025.
• Plan to launch model year '26 for Emira in U.S. and EU in 2025.
• Expect margin improvement in 2025 due to model year '26 launch, which will benefit EU and U.K. markets (over 40% of total sales).
• Anticipate acquisition of Lotus U.K. to close in 2025, integrating global business under Lotus brand.

• Trade uncertainties and economic slowdown impacting global sales.
• U.S. tariffs affecting lifestyle vehicle exports; sportscars produced in U.K. are less affected but still under analysis.
• Accounting policy changes (e.g., shift from cash basis to accrual basis for services) affecting revenue recognition.
• Regulatory approvals needed for acquisition of Lotus U.K. to close.

Q: Suggestion for an Emira R model with high revving V6, manual transmission, lightweight for U.S. market.

A: U.S. is largest Emira market (50% sales). V6 model preferred, but 2.0 turbo model with 400 HP and 8-DCT transmission is popular. V6 engine not compliant with EU7, but investigating V8 power system. Consider launching lightweight models with more carbon fiber in U.S. if feasible.

Q: ADAS revenue contribution and guidance, new design wins.

A: 2025 revenue guidance pending board approval. Robotics revenue improved, with $22M from external customers in 2024. Benchmark margin for intelligent driving business is ~30%, aiming to lower costs and increase margin.

Q: Cash burn, runway, and management shifts.

A: Cash gap managed through operations, investment, and financing; closely contacting investors. Recent management changes include new CFO and sales heads with luxury brand experience, bringing seasoned expertise for luxury brand management.

Q: Impact of Put Option on financials, debt asset ratio.

A: Put Option is noncash deal, not bringing cash burden. Further details to be disclosed after investigation and regulatory approvals.

Q: U.S. strategy, target sales for 2025.

A: Lifestyle vehicles affected by U.S. tariffs; sportscars less affected. Expect ~200-300 sales loss in U.S. due to tariffs. Exploring manufacturing in U.S. as potential solution, with future announcements to follow.