Lotus Technology Reports Unaudited Second Quarter and First Half 2024 Financial Results
Lotus Technology reported strong financial results for Q2 and H1 2024, with total deliveries up 239% YoY to 4,873 units in H1. Revenue increased 206% to $398 million, while gross margin improved to 13%. The company achieved balanced global allocation, with the US market contributing 26% of deliveries after re-entry. Lotus launched bespoke services and grew technology-related income.
However, Lotus adjusted its 2024 delivery target to 12,000 units due to trade uncertainties and tariff hikes. The company initiated a 'Win26' plan aimed at achieving positive EBITDA by 2026. Operating loss increased 27% YoY to $438 million in H1 2024. Lotus raised $110 million through a convertible note placement in June.
Lotus Technology ha riportato risultati finanziari solidi per il secondo trimestre e il primo semestre del 2024, con consegne totali in aumento del 239% su base annua, arrivando a 4.873 unità nel primo semestre. I ricavi sono aumentati del 206% raggiungendo i 398 milioni di dollari, mentre il margine lordo è migliorato al 13%. L'azienda ha ottenuto un'allocazione globale equilibrata, con il mercato statunitense che ha contribuito per il 26% delle consegne dopo il ritorno. Lotus ha lanciato servizi su misura e ha incrementato il reddito legato alla tecnologia.
Tuttavia, Lotus ha rivisto il suo obiettivo di consegne per il 2024 a 12.000 unità a causa delle incertezze commerciali e degli aumenti tariffari. L'azienda ha avviato un piano denominato 'Win26' mirato a raggiungere un EBITDA positivo entro il 2026. La perdita operativa è aumentata del 27% su base annua, arrivando a 438 milioni di dollari nel primo semestre del 2024. Lotus ha raccolto 110 milioni di dollari attraverso un collocamento di note convertibili a giugno.
Lotus Technology reportó resultados financieros sólidos para el segundo trimestre y el primer semestre de 2024, con entregas totales que aumentaron un 239% interanual, alcanzando 4,873 unidades en el primer semestre. Los ingresos aumentaron un 206% alcanzando los 398 millones de dólares, mientras que el margen bruto mejoró al 13%. La empresa logró una asignación global equilibrada, con el mercado de EE. UU. contribuyendo con un 26% de las entregas tras su reingreso. Lotus lanzó servicios personalizados y aumentó los ingresos relacionados con la tecnología.
No obstante, Lotus ajustó su objetivo de entregas para 2024 a 12,000 unidades debido a incertidumbres comerciales y aumentos de tarifas. La empresa inició un plan llamado 'Win26' con el objetivo de lograr un EBITDA positivo para 2026. La pérdida operativa aumentó un 27% interanual, alcanzando los 438 millones de dólares en el primer semestre de 2024. Lotus recaudó 110 millones de dólares a través de la colocación de un bono convertible en junio.
로터스 테크놀로지는 2024년 2분기와 상반기에 강력한 재무 결과를 보고했으며, 상반기 총 인도가 전년 대비 239% 증가한 4,873대에 달했습니다. 매출은 206% 증가하여 3억 9,800만 달러에 달했습니다, 반면 총 마진은 13%로 향상되었습니다. 회사는 미국 시장이 재진입 이후 26%의 인도를 차지하는 균형 잡힌 글로벌 할당을 달성했습니다. 로터스는 맞춤형 서비스를 출시하고 기술 관련 수입을 증가시켰습니다.
그러나 로터스는 무역 불확실성과 관세 인상으로 인해 2024년 인도 목표를 12,000대으로 조정했습니다. 회사는 2026년까지 긍정적인 EBITDA를 달성하기 위한 'Win26' 계획을 시작했습니다. 운영 손실은 전년 대비 27% 증가하여 4억 3,800만 달러에 이르렀습니다 2024년 상반기에. 로터스는 6월에 전환사채를 통해 1억 1천만 달러를 모금했습니다.
Lotus Technology a annoncé des résultats financiers solides pour le deuxième trimestre et le premier semestre 2024, avec un total de livraisons en hausse de 239% d'une année sur l'autre, atteignant 4 873 unités au cours du premier semestre. Le chiffre d'affaires a augmenté de 206% pour atteindre 398 millions de dollars, tandis que la marge brute s'est améliorée à 13%. L'entreprise a réussi à établir une allocation mondiale équilibrée, le marché américain ayant contribué à hauteur de 26% des livraisons après sa réintégration. Lotus a lancé des services sur mesure et a accru ses revenus liés à la technologie.
Cependant, Lotus a révisé son objectif de livraisons pour 2024 à 12 000 unités en raison d'incertitudes commerciales et d'augmentations tarifaires. L'entreprise a lancé un plan nommé 'Win26' visant à atteindre un EBITDA positif d'ici 2026. La perte d'exploitation a augmenté de 27% d'une année sur l'autre pour atteindre 438 millions de dollars au premier semestre 2024. Lotus a levé 110 millions de dollars grâce à un placement d'obligations convertibles en juin.
Lotus Technology berichtete über starke finanzielle Ergebnisse für das zweite Quartal und das erste Halbjahr 2024, mit einer Gesamtzahl der Auslieferungen, die im Jahresvergleich um 239% auf 4.873 Einheiten im ersten Halbjahr gestiegen ist. Der Umsatz stieg um 206% auf 398 Millionen Dollar, während die Bruttomarge auf 13% verbessert wurde. Das Unternehmen erreichte eine ausgewogene globale Verteilung, wobei der US-Markt nach dem Wiedereinstieg 26% der Auslieferungen beitrug. Lotus hat maßgeschneiderte Dienstleistungen eingeführt und die technologiebezogenen Einnahmen gesteigert.
Allerdings hat Lotus sein Lieferziel für 2024 aufgrund von Handelsunsicherheiten und Tarifsteigerungen auf 12.000 Einheiten angepasst. Das Unternehmen initiierte einen Plan namens 'Win26', der darauf abzielt, bis 2026 ein positives EBITDA zu erreichen. Der operative Verlust stieg um 27% im Jahresvergleich auf 438 Millionen Dollar im ersten Halbjahr 2024. Lotus hat im Juni 110 Millionen Dollar durch die Platzierung einer Wandelanleihe gesammelt.
- Total deliveries increased 239% YoY to 4,873 units in H1 2024
- Revenue grew 206% YoY to $398 million in H1 2024
- Gross margin improved from 5% to 13% YoY in H1 2024
- US market contributed 26% of total deliveries after re-entry
- Launched bespoke services and grew technology-related income
- Raised $110 million through convertible note placement
- Adjusted 2024 delivery target down to 12,000 units due to trade uncertainties
- Operating loss increased 27% YoY to $438 million in H1 2024
- Net loss grew 30% YoY to $460 million in H1 2024
- Adjusted EBITDA loss increased 15% YoY to $382 million in H1 2024
Insights
Lotus Technology's Q2 and H1 2024 results show mixed signals. While revenue growth is strong at
The revised delivery target of 12,000 units for 2024, down from previous estimates, reflects challenges from new tariff policies in the US and EU. This adjustment, coupled with the "Win26" plan aiming for positive EBITDA by 2026, suggests a longer path to profitability than initially anticipated.
Investors should closely monitor the company's ability to execute its cost optimization strategies and product diversification plans to achieve its 2026 goals.
Lotus Technology's transition from a niche sportscar maker to a global luxury EV player is progressing, but faces significant headwinds. The balanced global allocation, with each region contributing 20-30% of deliveries, demonstrates successful market penetration. However, the impact of trade uncertainties and tariff hikes on the revised delivery target highlights the volatility in the EV market.
The launch of bespoke services and growth in technology-related income are positive steps towards diversifying revenue streams and potentially improving profit margins. The company's focus on high-end market segments, with an average selling price above
The success of the "Win26" plan will be important for Lotus's long-term viability in the rapidly evolving automotive landscape.
Lotus Technology's performance reflects both opportunities and challenges in the luxury EV market. The strong growth in US deliveries after re-entering the market is promising, indicating potential for expansion in key regions. However, the need to adjust delivery targets due to trade uncertainties underscores the importance of geopolitical factors in the global automotive industry.
The introduction of bespoke services and technology licensing to other OEMs demonstrates Lotus's efforts to create additional value streams. This diversification could help buffer against fluctuations in vehicle sales and potentially improve overall margins.
The nomination for sustainability awards suggests a focus on ESG factors, which could appeal to environmentally conscious luxury consumers. However, the path to profitability remains challenging and investors should carefully weigh the company's growth potential against its current financial losses.
- Robust start in 2024, marking the strongest first half-year performance in the brand’s history.
- Balanced global allocation, with strong US deliveries1 contribution after the brand’s re-entry into the market.
- Launched bespoke services and continued growing technology-related income, which are expected to be potential contributors of profit margin in the future.
- Adjusted the annual delivery target due to near-term disruptions from trade uncertainties and tariff hikes.
- Initiated the “Win26” Plan aiming to achieve positive operating cashflow and EBITDA in 2026.
NEW YORK, Aug. 28, 2024 (GLOBE NEWSWIRE) -- Lotus Technology Inc. (“Lotus Tech” or the “Company”), a leading global intelligent and luxury mobility provider, today announced its unaudited financial results for the second quarter and half year ended June 30, 2024.
Operating Highlights for the First Half of 2024
In the first half of 2024, the Company achieved total deliveries1 of 4,873 units, representing a
Deliveries1 by Model Type
| 1H 2024 | 1H 2023 | %Change (YoY) | ||
| Lifestyle SUV and Sedan | 2,389 | 871 | 174 | % |
| Sportscars | 2,484 | 568 | 337 | % |
| Total | 4,873 | 1,439 | 239 | % |
Deliveries1 by Region
| 1H 2024 | 1H 2024 | % | 1H 2023 | 1H 2023 | % | |
| Europe | 1,459 | 30 | % | 89 | 6 | % |
| China | 1,208 | 25 | % | 965 | 67 | % |
| North America | 1,278 | 26 | % | - | - | |
| Rest of the World | 928 | 19 | % | 385 | 27 | % |
| Total | 4,873 | 100 | % | 1,439 | 100 | % |
In the first half of 2024, technology-related revenue began to scale as the Company started to provide intelligent driving solutions and R&D services to multiple leading automotive brands. As the fleet of models equipped with state-of-the-art hardware continues to expand, paid software subscriptions is a potential growth driver in the future.
The Chapman Bespoke service which provides customer personalization, design customizations, limited collection editions, and one-off models, was also launched to cater to growing demand. Deliveries of bespoke models are expected to further boost the brand’s luxury positioning and contribute to the Company’s long-term premium gross margin.
After assessment of the evolving market conditions, and uncertainties posed by new tariff policies in US and EU, the Company has revised its delivery target for 2024 to 12,000 units. The Company launched the “Win26” plan, aiming to achieve positive EBITDA in 2026 by further optimizing its internal processes and structures, implementing overall cost measures, and recalibrating its product plans to cater to globally diversified markets.
Financial Highlights for the First Half of 2024
- Total revenues for the first half of 2024 were
$398 million , a206% YoY increase. - Sales of goods were
$383 million , a207% YoY increase. - Service revenues were
$15 million , a194% YoY increase. - Gross margin for the first half was
13% , versus5% for the first half of 2023, driven by the growth in margin from both sales of goods and service revenues. - Gross margin of sales of goods for the first half of 2024 was
11% , versus4% for the same period of 2023. - Gross margin of service revenues for the first half of 2024 was
58% , versus16% for the same period of 2023. - Operating loss was
$438 million for the first half of 2024, a27% YoY increase. - Net loss was
$460 million for the first half of 2024. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was$424 million for the first half of 2024, a20% YoY increase. - Adjusted EBITDA (non-GAAP) was a loss of
$382 million for the first half of 2024, a15% YoY increase.
Key Financial Results
The table below summarizes key preliminary financial results for the half year ended June 30, 2024.
(in millions of U.S. dollars, unaudited)
| 1H 2024 | 1H 2023 | % Change (YoY) | ||||
| Revenues | 398 | 130 | 206 | % | ||
| Cost of revenues | 347 | 124 | 180 | % | ||
| Gross profit | 51 | 6 | 731 | % | ||
| Gross margin (%) | 13 | % | 5 | % | - | |
| Operating loss | (438 | ) | (344 | ) | 27 | % |
| Net loss | (460 | ) | (353 | ) | 30 | % |
| Adjusted net loss(A) | (424 | ) | (353 | ) | 20 | % |
| Adjusted EBITDA(A) | (382 | ) | (333 | ) | 15 | % |
(A) Non-GAAP measure. See “Non-GAAP Financial Measures” and “Appendix D – Unaudited Reconciliation of GAAP and Non-GAAP results (Adjusted net loss/Adjusted EBITDA)” for details and a reconciliation of adjusted metrics to the nearest GAAP measure.
Recent Developments
- Delivery Updates:
- Following Southeast Asia deliveries, Eletre (SUV) model started deliveries to new markets such as GCC, New Zealand, India, and Egypt.
- Production orders for Eletre (SUV) model began for new markets such as Australia, Japan and Korea.
- Emeya (GT, Sedan) model started deliveries in Europe.
- Reservations of Emeya (GT, Sedan) model began in the GCC, Japan, Korea and Southeast Asia.
- Lotus Robotics provides solutions to multiple OEMs: Lotus Robotics, a subsidiary for intelligent automobility technologies development, licenses several leading automakers to provide them with its intelligent driving technology and solutions, including Lynk&Co and Farizon Auto.
- Strategic capital raised: As previously announced, in June 2024, the Company entered into a convertible note purchase agreement with an aggregate principal amount of approximately
$110 million through a private placement from its existing strategic shareholder. - Dual Red Dot Awards: In June 2024, two Red Dot Awards in Product Design were given to the ground-breaking hyper electric vehicles: the Eletre (SUV), and the Emeya (GT, Sedan).
- Reuters Sustainability Awards 2024 Nomination: In July 2024, Lotus Tech was nominated as the finalist in the Reuters Sustainability Awards 2024 in the business transformation and Net Zero: operations transformation. Reuters Sustainability Awards are the world’s leading awards recognizing leadership in sustainable business.
CEO and CFO comments
"Through our unwavering pursuit to performance and excellence, we made steady progress with continuing operation growth in the first half of 2024," said Mr. Qingfeng Feng, Chief Executive Officer. "In the first half of 2024, the deliveries soared to nearly 4,900 vehicles, up
"We continued delivery of strong topline growth in the first half of 2024, with total revenues and gross profit up by
Operating and Financial Results for the Second Quarter of 2024
- Total deliveries1 for the second quarter of 2024 were 2,679 units, a
128% YoY increase. - Total revenues for the second quarter of 2024 were
$225 million , a103% YoY increase. - Gross margin for the second quarter of 2024 was
9% , versus5% for the same period of 2023. - Net loss for the second quarter was
$202 million , a4% YoY increase. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was$201 million for the second quarter of 2024. - Adjusted EBITDA (non-GAAP) was a loss of
$177 million for the second quarter of 2024, a1% YoY decrease.
Deliveries1 by Model Type
| 2Q 2024 | 2Q 2023 | % Change (YoY) | ||
| Lifestyle SUV and Sedan | 1,342 | 637 | 111 | % |
| Sportscars | 1,337 | 538 | 149 | % |
| Total | 2,679 | 1,175 | 128 | % |
Key Financial Results
The table below summarizes key preliminary financial results for the second quarter in 2024.
(in millions of U.S. dollars, unaudited)
| 2Q 2024 | 2Q 2023 | %Change (YoY) | ||||
| Revenues | 225 | 111 | 103 | % | ||
| Cost of Revenues | 204 | 105 | 95 | % | ||
| Gross profit | 21 | 6 | 246 | % | ||
| Gross margin (%) | 9 | % | 5 | % | - | |
| Operating loss | (204 | ) | (183 | ) | 12 | % |
| Net loss | (202 | ) | (193 | ) | 4 | % |
| Adjusted net loss(A) | (201 | ) | (193 | ) | 4 | % |
| Adjusted EBITDA(A) | (177 | ) | (178 | ) | (1 | %) |
(A) Non-GAAP measure. See “Non-GAAP Financial Measures” and “Appendix D – Unaudited Reconciliation of GAAP and Non-GAAP results (Adjusted net loss/Adjusted EBITDA)” for details and a reconciliation of adjusted metrics to the nearest GAAP measure.
Conference call
Lotus Tech management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday, August 28, 2024 (14:00 Central European Time / 20:00 China Standard Time on the same day).
There will be a live audio webcast and replay available following completion of the call on the Company’s investor relations website at https://ir.group-lotus.com/.
For participants who wish to join the call, please complete online registration prior to the scheduled call start time using the link provided below. Upon registration, participants will receive a confirmation email with conference call access information, including dial-in numbers and a unique PIN. Participant online registration link: https://register.vevent.com/register/BI77b3e952ef684e7bb15b8e522e023f0b
Note 1: Invoiced deliveries, including commissioned deliveries in US market
About Lotus Technology Inc.
Lotus Technology Inc. has operations across the UK, the EU and China. The Company is dedicated to delivering luxury lifestyle battery electric vehicles, with a focus on world-class R&D in next-generation automobility technologies such as electrification, digitalisation and more. For more information about Lotus Technology Inc., please visit www.group-lotus.com.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, including adjusted net loss and adjusted EBITDA in evaluating its operating results and for financial and operational decision-making purposes. Adjusted net loss represents net loss excluding share-based compensation expenses, and such adjustment has no impact on income tax. Lotus Tech defines adjusted EBITDA as net loss excluding interest income, interest expense, income tax expenses, depreciation of property, equipment and software, and share-based compensation expenses. The Company believes that non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.
Non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. Non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for financial information prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance. For more information on non-GAAP financial measures, please see "Appendix C – Unaudited Reconciliation of GAAP and Non-GAAP Results (Adjusted net loss/Adjusted EBITDA)" set forth at the end of this press release.
Forward-Looking Statements
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential”, “forecast”, “plan”, “seek”, “future”, “propose” or “continue”, or the negatives of these terms or variations of them or similar terminology although not all forward-looking statements contain such terminology. Forward-looking statements involve inherent risks and uncertainties, including those identified under the heading “Risk Factors” in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Lotus Tech undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Contact Information
For investor inquiries
Demi Zhang
ir@group-lotus.com
Appendix A
Lotus Technology Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands)
| As of | ||||
| June 30, 2024 | December 31, 2023 | |||
| US$ | US$ | |||
| ASSETS | ||||
| Current assets | ||||
| Cash | 268,781 | 418,941 | ||
| Restricted cash | 373,887 | 7,873 | ||
| Accounts receivable – third parties, net | 72,798 | 76,664 | ||
| Accounts receivable – related parties, net | 19,674 | 22,430 | ||
| Inventories | 385,200 | 265,190 | ||
| Prepayments and other current assets – third parties, net | 118,492 | 63,870 | ||
| Prepayments and other current assets – related parties, net | 40,381 | 28,744 | ||
| Total current assets | 1,279,213 | 883,712 | ||
| Non-current assets | ||||
| Restricted cash | 1,147 | 321 | ||
| Investment securities – related parties | 2,168 | 3,326 | ||
| Securities pledged to an investor | 310,477 | - | ||
| Loan receivable from a related party | 224,042 | - | ||
| Property, equipment and software, net | 345,336 | 354,617 | ||
| Intangible assets | 116,526 | 116,360 | ||
| Operating lease right-of-use assets | 158,864 | 173,103 | ||
| Other non-current assets – third parties | 65,792 | 50,533 | ||
| Other non-current assets – related parties | 2,689 | 2,706 | ||
| Total non-current assets | 1,227,041 | 700,966 | ||
| Total assets | 2,506,254 | 1,584,678 | ||
Lotus Technology Inc.
Unaudited Condensed Consolidated Balance Sheets (Con’d)
(All amounts in thousands)
| As of | ||||
| June 30, 2024 | December 31, 2023 | |||
| US$ | US$ | |||
| LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT | ||||
| Current liabilities | ||||
| Short-term borrowings – third parties | 518,479 | 226,772 | ||
| Accounts payable – third parties | 58,271 | 20,123 | ||
| Accounts payable – related parties | 413,779 | 340,419 | ||
| Contract liabilities – third parties | 50,054 | 44,184 | ||
| Operating lease liabilities – third parties | 14,526 | 16,760 | ||
| Accrued expenses and other current liabilities – third parties | 431,223 | 419,422 | ||
| Accrued expenses and other current liabilities – related parties | 243,024 | 290,686 | ||
| Exchangeable notes | - | 378,638 | ||
| Convertible notes - related parties | 110,661 | - | ||
| Convertible notes - third parties | - | 20,277 | ||
| Put option liabilities – related parties | 437 | - | ||
| Total current liabilities | 1,840,454 | 1,757,281 | ||
| Non-current liabilities | ||||
| Contract liabilities – third parties | 7,024 | 6,245 | ||
| Operating lease liabilities – third parties | 81,393 | 91,929 | ||
| Operating lease liabilities – related parties | 11,314 | 12,064 | ||
| Put option liabilities – third parties | 175,214 | - | ||
| Put option liabilities – related parties | - | 11,884 | ||
| Warrant Liabilities | 5,549 | - | ||
| Exchangeable notes | 77,087 | 75,678 | ||
| Convertible notes - third parties | 75,970 | 81,635 | ||
| Deferred income | 296,489 | 270,097 | ||
| Other non-current liabilities – third parties | 108,293 | 103,403 | ||
| Other non-current liabilities – related parties | 1,548 | 1,634 | ||
| Total non-current liabilities | 839,881 | 654,569 | ||
| Total liabilities | 2,680,335 | 2,411,850 | ||
Lotus Technology Inc.
Unaudited Condensed Consolidated Balance Sheets (con’d)
(All amounts in thousands)
| As of | ||||||
| June 30, 2024 | December 31, 2023 | |||||
| US$ | US$ | |||||
| MEZZANINE EQUITY | ||||||
| Series Pre-A Redeemable Convertible Preferred Shares | - | 184,509 | ||||
| Series A Redeemable Convertible Preferred Shares | - | 199,021 | ||||
| Total mezzanine equity | - | 383,530 | ||||
| SHAREHOLDERS’ DEFICIT | ||||||
| Ordinary shares | 7 | 21 | ||||
| Additional paid-in capital | 1,855,063 | 358,187 | ||||
| Accumulated other comprehensive income | 25,278 | 25,267 | ||||
| Accumulated deficit | (2,048,092 | ) | (1,588,773 | ) | ||
| Total shareholders' deficit attributable to ordinary shareholders | (167,744 | ) | (1,205,298 | ) | ||
| Noncontrolling interests | (6,337 | ) | (5,404 | ) | ||
| Total shareholders' deficit | (174,081 | ) | (1,210,702 | ) | ||
| Total liabilities, mezzanine equity and shareholders' deficit | 2,506,254 | 1,584,678 | ||||
Appendix B
Lotus Technology Inc.
Unaudited Condensed Consolidated Statements of Comprehensive loss
(All amounts in thousands, except for share and per share/ADS data)
| For the Six Months Ended June 30, | ||||||
| 2024 | 2023 | |||||
| US$ | US$ | |||||
| Revenues: | ||||||
| Sales of goods | 382,893 | 124,854 | ||||
| Service revenues | 15,222 | 5,181 | ||||
| Total revenues | 398,115 | 130,035 | ||||
| Cost of revenues: | ||||||
| Cost of goods sold | (340,882 | ) | (119,557 | ) | ||
| Cost of services | (6,321 | ) | (4,351 | ) | ||
| Total cost of revenues | (347,203 | ) | (123,908 | ) | ||
| Gross profit | 50,912 | 6,127 | ||||
| Operating expenses: | ||||||
| Research and development expenses | (174,854 | ) | (152,548 | ) | ||
| Selling and marketing expenses | (204,274 | ) | (118,236 | ) | ||
| General and administrative expenses | (111,978 | ) | (80,417 | ) | ||
| Government grants | 2,488 | 662 | ||||
| Total operating expenses | (488,618 | ) | (350,539 | ) | ||
| Operating loss | (437,706 | ) | (344,412 | ) | ||
| Interest expenses | (11,708 | ) | (3,470 | ) | ||
| Interest income | 8,658 | 5,848 | ||||
| Investment income, net | 3,496 | 2,770 | ||||
| Share of results of equity method investments | 359 | (626 | ) | |||
| Foreign currency exchange losses, net | (4,429 | ) | (3,619 | ) | ||
| Changes in fair values of mandatorily redeemable noncontrolling interest, exchangeable notes and convertible notes, excluding impact of instrument-specific credit risk | 8,801 | (12,758 | ) | |||
| Changes in fair values of warrant liabilities | 6,317 | - | ||||
| Changes in fair values of put option liabilities | (33,685 | ) | 3,307 | |||
| Loss before income taxes | (459,897 | ) | (352,960 | ) | ||
| Income tax benefit (expense) | (355 | ) | 18 | |||
| Net loss | (460,252 | ) | (352,942 | ) | ||
| Less: Net loss attributable to noncontrolling interests | (933 | ) | (5,779 | ) | ||
| Net loss attributable to ordinary shareholders | (459,319 | ) | (347,163 | ) | ||
| Accretion of Redeemable Convertible Preferred Shares | (2,979 | ) | (258 | ) | ||
| Net loss available to ordinary shareholders | (462,298 | ) | (347,421 | ) | ||
| Loss per ordinary share1 | ||||||
| —Basic and diluted | (0.75 | ) | (0.74 | ) | ||
| Weighted average number of ordinary shares outstanding used in computing net loss per ordinary share1 | ||||||
| —Basic and diluted | 616,941,673 | 474,621,603 | ||||
1 Shares outstanding for all periods reflect the adjustment for recapitalization upon the consummation of merger transaction in February 2024.
Lotus Technology Inc.
Unaudited Condensed Consolidated Statements of Comprehensive loss (cont’d)
(All amounts in thousands, except for share and per share/ADS data)
| For the Six Months Ended June 30, | ||||||
| 2024 | 2023 | |||||
| US$ | US$ | |||||
| Net loss | (460,252 | ) | (352,942 | ) | ||
| Other comprehensive income: | ||||||
| Fair value changes of mandatorily redeemable noncontrolling interest, exchangeable notes and convertible notes due to instrument-specific credit risk, net of nil income taxes | (401 | ) | (1,559 | ) | ||
| Foreign currency translation adjustment, net of nil income taxes | 412 | 34,563 | ||||
| Total other comprehensive income | 11 | 33,004 | ||||
| Total comprehensive loss | (460,241 | ) | (319,938 | ) | ||
| Less: Total comprehensive loss attributable to noncontrolling interests | (933 | ) | (5,589 | ) | ||
| Total comprehensive loss attributable to ordinary shareholders | (459,308 | ) | (314,349 | ) | ||
Appendix C
Lotus Technology Inc.
Unaudited Condensed Consolidated Statements of Comprehensive loss
(All amounts in thousands, except for share and per share/ADS data)
| Three Months Ended | ||||||
| June 30, 2024 | June 30, 2023 | |||||
| US$ | US$ | |||||
| Revenues: | ||||||
| Sales of goods | 222,109 | 108,371 | ||||
| Service revenues | 2,924 | 2,543 | ||||
| Total revenues | 225,033 | 110,914 | ||||
| Cost of revenues: | ||||||
| Cost of goods sold | (201,609 | ) | (103,006 | ) | ||
| Cost of services | (2,826 | ) | (1,958 | ) | ||
| Total cost of revenues | (204,435 | ) | (104,964 | ) | ||
| Gross profit | 20,598 | 5,950 | ||||
| Operating expenses: | ||||||
| Research and development expenses | (70,162 | ) | (87,054 | ) | ||
| Selling and marketing expenses | (100,785 | ) | (66,460 | ) | ||
| General and administrative expenses | (55,008 | ) | (35,133 | ) | ||
| Government grants | 969 | 57 | ||||
| Total operating expenses | (224,986 | ) | (188,590 | ) | ||
| Operating loss | (204,388 | ) | (182,640 | ) | ||
| Interest expenses | (7,761 | ) | (3,036 | ) | ||
| Interest income | 6,993 | 3,079 | ||||
| Investment income, net | 4,890 | 4,933 | ||||
| Share of results of equity method investments | 158 | (161 | ) | |||
| Foreign currency exchange losses, net | 2,238 | (6,681 | ) | |||
| Changes in fair values of mandatorily redeemable noncontrolling interest, exchangeable notes and convertible notes, excluding impact of instrument-specific credit risk | 397 | (10,223 | ) | |||
| Changes in fair values of warrant liabilities | 1,464 | - | ||||
| Changes in fair values of put option liabilities | (5,805 | ) | 1,433 | |||
| Loss before income taxes | (201,814 | ) | (193,296 | ) | ||
| Income tax expense | (213 | ) | (71 | ) | ||
| Net loss | (202,027 | ) | (193,367 | ) | ||
| Less: Net loss attributable to noncontrolling interests | (577 | ) | (3,861 | ) | ||
| Net loss attributable to ordinary shareholders | (201,450 | ) | (189,506 | ) | ||
| Accretion of Redeemable Convertible Preferred Shares | - | 6,990 | ||||
| Net loss available to ordinary shareholders | (201,450 | ) | (182,516 | ) | ||
| Loss per ordinary share1 | ||||||
| —Basic and diluted | (0.30 | ) | (0.38 | ) | ||
| Weighted average number of ordinary shares outstanding used in computing net loss per ordinary share1 | ||||||
| —Basic and diluted | 675,454,342 | 474,621,603 | ||||
1 Shares outstanding for all periods reflect the adjustment for recapitalization upon the consummation of merger transaction in February 2024.
Lotus Technology Inc.
Unaudited Condensed Consolidated Statements of Comprehensive loss (con’d)
(All amounts in thousands, except for share and per share/ADS data)
| Three Months Ended | ||||||
| June 30, 2024 | June 30, 2023 | |||||
| US$ | US$ | |||||
| Net loss | (202,027 | ) | (193,367 | ) | ||
| Other comprehensive income: | ||||||
| Fair value changes of mandatorily redeemable noncontrolling interest, exchangeable notes and convertible notes due to instrument-specific credit risk, net of nil income taxes | (226 | ) | (517 | ) | ||
| Foreign currency translation adjustment, net of nil income taxes | 1,827 | 41,600 | ||||
| Total other comprehensive income | 1,601 | 41,083 | ||||
| Total comprehensive loss | (200,426 | ) | (152,284 | ) | ||
| Less: Total comprehensive loss attributable to noncontrolling interests | (577 | ) | (3,671 | ) | ||
| Total comprehensive loss attributable to ordinary shareholders | (199,849 | ) | (148,613 | ) | ||
Appendix D
Lotus Technology Inc.
Unaudited Reconciliation of GAAP and Non-GAAP results (Adjusted net loss/Adjusted EBITDA)
(All amounts in thousands)
| For Six Months Ended | ||||||
| June 30, 2024 | June 30, 2023 | |||||
| US$ | US$ | |||||
| Net loss | (460,252 | ) | (352,942 | ) | ||
| Share-based compensation expenses | 35,894 | - | ||||
| Adjusted net loss | (424,358 | ) | (352,942 | ) | ||
| Net loss | (460,252 | ) | (352,942 | ) | ||
| Interest expenses | 11,708 | 3,470 | ||||
| Interest income | (8,658 | ) | (5,848 | ) | ||
| Income tax expense (benefit) | 355 | (18 | ) | |||
| Share-based compensation expenses | 35,894 | - | ||||
| Depreciation | 39,286 | 22,641 | ||||
| Adjusted EBITDA | (381,667 | ) | (332,697 | ) | ||
| Three Months Ended | |||||
| June 30, 2024 | June 30, 2023 | ||||
| US$ | US$ | ||||
| Net loss | (202,027 | ) | (193,367 | ) | |
| Share-based compensation expenses | 571 | - | |||
| Adjusted net loss | (201,456 | ) | (193,367 | ) | |
| Net loss | (202,027 | ) | (193,367 | ) | |
| Interest expenses | 7,761 | 3,036 | |||
| Interest income | (6,993 | ) | (3,079 | ) | |
| Income tax expense | 213 | 71 | |||
| Share-based compensation expenses | 571 | - | |||
| Depreciation | 23,112 | 15,037 | |||
| Adjusted EBITDA | (177,363 | ) | (178,302 | ) | |
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