Lotus Technology Inc. Warrants Q1 FY2025 earnings call

• Launched a national-level GT1 main racing series Lotus car in China and Malaysia, with the first race completed in Chengdu.
• Released the 2024 year ESG report, highlighting progress in sustainable practices, green products, and global leadership in green mobility.
• EMIRA model year '26 started delivery in August, with Eletre and Emeya model year '26 starting delivery in China and set to begin in Europe in Q3.
• Progress on Hyper Hybrid EV Technology is good; the new Hyper Hybrid model is expected to debut end of this year with deliveries starting in Q1 next year, featuring 300 km pure battery range and over 1,000 km combined range with Dual Hyper Charging Technology.
• Aim for balanced delivery distribution: 30% in U.S., 30% in EU, 30% in China, 1% in rest of the world.

In Q1 2025, Lotus Technology delivered nearly 1,300 vehicles to distributors, up 42% year-on-year, with user vehicle deliveries exceeding 2,000 units, up over 10% year-on-year. Quarterly revenues were USD 93 million. 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, while the rest of the world region accounted for 4%. Cost of revenue decreased by 43% year-on-year to USD 82 million, resulting in gross profit of USD 11 million. Operating loss was USD 103 million for the quarter, a 56% year-on-year decrease, and net loss was USD 183 million, a 29% reduction.

• The new Hyper Hybrid model is expected to debut at the end of 2025 and start deliveries in Q1 2026.
• Target delivery distribution: 30% in U.S., 30% in EU, 30% in China, 1% in rest of the world.
• Discussing localization plans in the U.S. with strategic partners to avoid U.S. tariff influence.

• Challenges around U.S. tariff hike which led to not being able to export many vehicles to the U.S. market previously.

Q: Questions regarding the progress of our Hyper Hybrid initiatives and our global market strategies A: Feng Qingfeng shared insights on PHEV market growth, differences of Lotus PHEV from traditional PHEV, progress of Hyper Hybrid Technology in China, plans for U.S. and EU markets, and investigation of Hyper Hybrid Sportscar feasibility