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Yahoo
27-05-2025
- Automotive
- Yahoo
Lotus Technology Releases 2024 ESG Report, Showcasing Commitment to Sustainability and Innovation
NEW YORK, May 26, 2025 (GLOBE NEWSWIRE) -- Lotus Technology Inc. ('Lotus Tech' or the 'Company') (Nasdaq: LOT), a leading global intelligent and luxury mobility provider, today released its 2024 Environmental, Social, and Governance (ESG) Report, highlighting the Company's progress in advancing sustainable practices, innovative green products, and global leadership in clean mobility. The report has been audited by TÜV NORD, an independent third-party inspection, testing and assurance agency. 'Lotus Tech's 2024 ESG report reflects our unwavering commitment to driving sustainable change and creating a better future for all,' said Dr. Daxue Wang, Chairman of the ESG Committee at Lotus Tech. 'Through cutting-edge innovation, responsible manufacturing, and active participation in global sustainability efforts, we are dedicated to delivering eco-friendly solutions and fostering a more sustainable world.' Key Highlights from the 2024 ESG Report: Innovative Green Products: Lotus Tech unveiled its first concept car, Theory 1, centered on advanced technology, material minimization, and sustainable development. In contrast to mainstream industry models that utilize on average 100 A-surface materials, Theory 1 sets a "Challenge of 10" goal, employing only ten main A-surface materials, with performance, lightweight and sustainable properties. Green Manufacturing Excellence: Lotus Global Smart Factory has been awarded the prestigious 'Leading-Zero Carbon Factory' certification, recognizing its efforts to achieve carbon neutrality and sustainable production practices. Global Sustainability Engagement: Lotus Tech actively participated in the global sustainability initiatives and reporting. In 2024, Lotus Tech has contributed showcases for the World Economic Forum (WEF)'s Nature Positive Transitions Report series, demonstrating its commitment to driving global climate action. The Company received accolades in 2024, including the Reuters Sustainability Award and the EU Chamber of Commerce Sustainable Business Award, acknowledging its achievements in sustainability and responsible business practices. To read Lotus Tech's 2024 ESG Report, please visit About Lotus Technology 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 Contact InformationMedia inquires ir@
Yahoo
23-04-2025
- Business
- Yahoo
Q4 2024 Lotus Technology Inc Earnings Call
Demi Zhang; Head of Investor Relations; Lotus Technology Inc Dauxe Wang; Chief Financial Officer; Lotus Technology Inc Qingfeng Feng; Chief Executive Officer; Lotus Technology Inc Kevin Coelho; Analyst; Tier One Systems Laura Li; Analyst; Deutsche Bank Unidentified Participant Tom Liu; Analyst; Capital Sunrise. George Tang; Analyst; Alison Capital Operator Thank you for standing by and welcome to the Lotus Technology Inc fourth quarter and full year 2024 earnings conference call. (Operator Instructions) I would now like to hand the conference over to Ms. Demi Zhang, Head of IR. Please go ahead. Demi Zhang Thank you, Darcy. Good morning, good afternoon and good evening, everyone. Thank you for joining Lotus Tech fourth quarter and the full year 2024, our next call. This is Demi Zhang, the Head of IR, Lotus Tech. I'm very honoured to introduce company management with us today, CEO, Qingfeng Feng and the CFO, Daxue Wang. On today's call, we'll start with preparing remarks from CFO and the CEO first and then kick off the Q&A session. Before we continue, please be reminded that today's discussion will contain forward-looking statements pursuant to the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1,995 and Forward-looking statements involving current risks and uncertainties. As such, the company's actual results may be materially different from the view expressed today. So further information regarding risks and uncertainties is included in relevant filings of Lotus Tech with the US Securities and Exchange Commission. The company undertakes no obligation to update any forward-looking statements except as required under applicable law. Please also note that our earnings press release and this conference call will include disclosure of non-audited GAAP financial information, as well as united non-GAAP financial measures. Please refer to our press release, which contains a reconciliation of unaudited and non-GAAP measures to comparable GAAP measures. Which you can find at ir@ With that, I'd like to turn the call over to our CFO, Mr. Wang. Dauxe Wang Please. Okay. Thank you. Hello, distinguished shareholders, analysts, and members of the prize. Thank you very much for joining our Q4 and full year 2024 learners. My name is Dauxe Wang, Chief Financial Officer of Lotus. I would like to take this opportunity to brief you the financial results of the company. In 2024, the company delivered over 12,000 vehicles, reflecting a year on increase of over 70%. For the fourth quarter, all 45 countries vehicles were delivered, representing a 20% yearly increase. We consider this as a remarkable growth, considering the global trade uncertainties and economic slowdown. As for the revenue, although the fourth quarter results were narrowed by 12% year on year to USD272 million US dollars, the company gained the increase of 36% year on year increase to USD924 million over the full year. Another achievement we want to highlight is, we have achieved a reduction in operation expenses for five quarters in a row. The rigid execution of enhanced efficiency enhancement plans. Now, I would like to further break down our sales by category and by region. It turns out that the lifestyle vehicles increased by 57% year on year and accounted for 57% of the total deliveries as well. A region, Europe, the home of Lotus brand, continued to expand with a year increase of some 180% and contributed nearly 40% of the total deliveries. China and the second largest market for Lotus contributed one quarter of the total deliveries. North America, mainly in the United States should by [415%] in 2024, making up 21% of the company's total deliveries. And the rest of the world regions representing 15% of the total with the nearly 90% year on year growth. For your attention in the fourth quarter, we started to deliver EMEYA in Malaysia, Thailand, Singapore, UAE, and Philippines. For the key financial indicators. Deliveries and revenues are being just reported. I will not repeat here. The cost of the revenues increased to USD895 million and USD301 million for the full year, and for the fourth quarter, respectively. As a result, the gross profit margin was lowered to 3% for the full year and negative 11% for the fourth quarter. We reported an operating loss of USD786 million for the year and USD189 million for the fourth quarter. That loss was accrued to $1107 million for the full year and $441 million for the fourth quarter. For your information, I just not lost just under the non-GAAP measures were not much to different. Then I'll first stop here and hand over the speaker to Mr. Feng. Qingfeng Feng (spoken in foreign language) (interpreted) Hello everyone, I'm CEO of Lotus Tech, Feng Qingfeng. Allow me to share our key achievements in the year of 2024. Our performance overall is better than the broader luxury market. We have ranked the top among British luxury car brands with over 12,000 vehicles delivered in 2024, a 74% better compared with our performance in 2023. I charge portrait currently, we have 4 models, on the delivery. We have 1 SUV, 1 sedan, or rather GT, and 2 sports cars, including EMIRA and also [Evija]. Last year we keep exploring our international footprint. We have entered into more than 10 countries in GCC region, Asia and Oceania. In addition to that, we have also been keeping cost reduction and also efficiency improvement, and we've been achieving operating expense reduction for five consecutive quarters. Besides, we have also launched our C1 concept car. This is a revolutionary concept car made with a sustainable material to redefine luxury, and we have the gained divide (inaudible). For this particular vehicle, it has defined our direction for our future models, particularly on its design language and also, it's a sustainable principle. As for our progress on ESG, we were honoured as highly commenced at Reuters Sustainability Awards 2024, leading the industry within Rueter's Vision 2045 campaign. Lotus was the winner of the 2024, EUCCC Sustainable Business Award and the Green Apple Award for outstanding environmental practices. Our sustainable supply management case was also included in Shanghai Climate Week 2024, Climate Tech in Focus report. And this report was also released at COVID-19. As for our recent development in 2025, we have already delivered more than 12,000 vehicles in the first three months, and as for the sales at the end, we have already delivered more than 2000. In the past, the Lotus in China was called the English pronunciation of Lotus, and we have to use the NYO as part of our logo. But in January 2025, we have successively reclaimed the proprietary rights of Lotus iconic logo, Lotus word mark, and the Chinese character of Lotus Lianhua in China, ensuring consistency in terms of its trademark across the world. In addition to that, we have also made a model facelift for our ELETRA and EMEYA. Specifically in February, we have refreshed the lineup of those two models with upgraded configuration and competitive pricing. In China, the vehicle has been delivered starting from February, and in quarter two, the delivery will also commence in the EU and the rest of the world. Besides, we have also launched the mapless urban NOA navigation on auto pilots in 16 cities across China in February this year. The system can effortlessly Achieve Lane changing similar transition between highways and city roads, nuisance at intersections, intelligent lane selection, and smart obstacle avoidance. Starting in February, we have also started our OTA to push this function to our end customers. This system can make our vehicle to be able to deliver door to door intelligent driving. Starting from quarter two, this function will be available in more than 100 cities in China through OTA. In March this year, Lotus intelligent driving arm, Lotus Robotics has also established a strategic partnership with Taosao Mobility to launch an innovative intelligent mobility platform for Robotaxi. We have also studied the pilot operation in the city of Hangzhou and the city of Suzhou. In addition to that, Lotus Technologie's Natural Capital Assessment Project was also included in the World Economic Forum report, which demonstrated our ambition and also our progress in sustainable development, particularly on more luxury vehicles. On April 14, 2025, we have received the exercise notice from Chile requiring Lotus Tech to purchase 51% of the equity interest in Lotus UK. According to the first auction agreement date is January 31, 2023, between the parties. If we can exercise this push option, we will be able to operate on two factories, half a factory in the UK and Wuhan factory from China. Those two factories can cover four regions Middle East, APAC, Europe, China, and North America. As for the exercise of a first option from July, Lotus expects to acquire 50% of accurate interest in Lotus UK through a non-cash transaction based on pre-agreed value valuation methodology. Upon completion, Lotus will gain control of Lotus UK and consolidate its financial results. The strategic transaction will enable the company to integrate all global business under Lotus Brand. Subject to potential regulatory approvals, the acquisition is expected to be completed in 2025 this year. As for our product, pipeline, EVEYA, this is our hyper car, it has a limited offering of 130 vehicles globally. We have already started the delivery of this hyper car. And moving on to our EMIRA sports car. The US market is the biggest market for EMIRA, and this vehicle has also been available for other markets. This year we are going to launch a Moor Year '26 for EMIRA. It will be dedicated to the US market and also meets the compliance requirements for other markets. In 2027, we are planning a major uplift for EMIRA, it will have more horsepower. It will also be compliant to EU 7 emission requirements. As for our lifestyle vehicles, electronic me previously, I briefly mentioned about this that we have already commenced the delivery in China for more year '26, and the delivery for EU, UK, and the rest of the world will also start in quarter two. At the end of this year, in other words, at the end of 2025, we are planning to launch a PHEV. We would call it a hyper hybrid model. This model will start delivery first in China in quarter next year. In 2027, we are also planning another new model, and by adding this new model together, we would be able to deliver our vision of a vision 80 strategy. In other words, we will have six models in total. And that's all I'd like to share with you. Thank you. Demi Zhang Well, thank you, CEO and the CFO. Darcy, we are ready for the Q&A, please. Operator Thank you. (Operator Instructions) Kevin Coelho, Tier One Systems. Kevin Coelho Hey, good morning, everyone. Thank you for taking my call. I'm calling as a Lotus Investor, as someone who opened an exotic car dealership here in California about 11 years ago, and most of all as a car enthusiast. And basically, really my question is there any plans? It seems like you have a really amazing opportunity with the EMIRA to create something that would be highly in demand here in the US market, which would be something that's lighter weight. Then currently exists right now in the mirror, maybe adding carbon ceramic brakes, carbon bucket seats, some other things to remove a couple on a pound and also increasing the horsepower and red line on the V6, which is an amazing engine. It sounds great. If you look at Porsche, they really have kind of created the recipe that everyone else, I think, should follow. If you look at what the GT3s and the GT3 RSS sell for. I mean, they're going for. 100,000 over MSRP right now. They're almost impossible to get. I'd be curious to know, do you have any plans of creating just really like a hardcore, maybe in EMERA or (inaudible) with a high revving V6, manual transmission, lightweight, I think that would do amazingly well here in the US market. Qingfeng Feng (spoken in foreign language) (interpreted) Thank you for your question. I think it's a brilliant suggestion, and in fact, US is the largest market of EMIRA. Almost 50% of EMIRA sells are all coming from the US and particularly our basics model very much preferred by our US consumers. Well, we are very clear that our US consumers would prefer engine or model with a higher horsepower and higher RPM. As a matter of fact, we have another model available in the US market, the 2.0 turbo model. It has also a relatively high horsepower at the very beginning. We were quite concerned about our US consumers that they may only prefer the V6 model instead of the 2.0 turbo model. However, after our consumer testing drives the 2.0 turbo model with also 400 horsepower, our consumers are very like it, and particularly with its power transits ACCT transmission and a very faster response. As for [BEV 6], we to be honestly -- do not have the plan to further increase its power because this engine will not be compliant for EU 7 emission. However, we are investigating a new power system which is a V8. It will have a bigger horsepower, and we are currently investigating the feasibility of a V8. And actually, this year in Europe we have launched some limited edition with less weight like the suggestion, that you mentioned that we put more carbon fibber materials on it. And we will consider to see if we are going to launch similar models in the US market. Thank you for your passion for this. So thank you for your great suggestion. Kevin Coelho Thank you very much, appreciate it. Operator Laura Li, Deutsche Bank. Laura Li Hey, well, thank you for taking my question. So, my first question is about the (inaudible) revenue. So what's it like contribution over the last year? And any update on the guidance, any new design where you're working on? Yeah, that's my first question. Demi Zhang Thank you, Laura. I will invite CFO to answer. So The first question is on the revenue guidance. Dauxe Wang Yeah. So, you mean for the 2025, right? Okay, so if you're like we have a detailed plan, which is going to be, like we have improvements compared to the 2024. Let's say they, like, we are waiting for the further approval from the board of directors. Demi Zhang Thank you. And Laura's second question, I remember is the question on the revenue on the robotics. Dauxe Wang It's 42. Okay. So for the robotics, like we achieve like pretty, improvement compared to the one year before. And we gained not only the internally we get the revenue from the lotus, but also gain some, customers from the outside of the company and also aside from the TD group. So like, overall, it will achieve like USD22 million from the customers outside the lotus. So that's something like I mean well like our Profit margin. I think with, we have a pretty high, margin compared to today that as the sales of goods. I mean, well, we're going to be able to keep this number in this year. So that's the, I think that basically the revenues from the robots, the robotics side. Laura Li Okay, got you. I appreciate. My second question is around like the margin trajectory as you mentioned, for this year and the '26, are there any like highway or tiling on a year-on-year basis we should consider? and also think about the tariff situation. Are there any like changes on production arrangements that you're considering? Demi Zhang Yeah, thank you, Laura. Her first question is on the margin trajectory for this year and the next year and also considering the tariff situation is there any changes. Dauxe Wang So I think the margin is going to be much improved this year compared to last year. Last year, first there is a treat you know uncertainties and also like we have the stock, so it, so we faculty, that the. Stock clearing plans, so which cost our profit margin, to lower compared to the one year before. But this year, I think the first lady I mean where the stock plan is going to be much is over and we don't no longer have this stock, clearing, requirements. I, meanwhile, like. We have a much better products, like cost, structure. So that means like our -- the gross profit margin is going to be much better than the 2024. So that's where my expectation for the year 2025. Demi Zhang Laura, excuse me, do you mind repeating your last, question on the? Sorry, your voice was very far away. Laura Li Oh yeah, so, yeah, the second part is around like the impact of tariffs and any like communication you're considering. Like changes on production arrangement or the sort of solutions. Thank you. Qingfeng Feng (spoken in foreign language) Well, definitely we have been affected by the US unbelievably high tariffs, particularly for our lifestyle vehicle, which is produced in China, and for our lifestyle vehicle we have already stopped its export into the US market. However, our sports car, which is produced in the UK, has not been affected yet. We're still investigating the market and also we are still doing analysis. Laura Li Okay, got it. Yeah, that's helpful. Demi Zhang Thank you, Laura. Operator (Operator Instructions) Yu Xiang from MSIM China. Please go ahead. Unidentified Participant Hi, thank you for taking my question. I have two questions actually. First one is, what are the contributing factors behind the significant decline in gross profit in the fourth quarter of '24, and how much did the intelligent driving and the bespoke service contribute to the service revenue and the gross profit in this fourth quarter? Demi Zhang Thank you, Roy. I invite CFO Mr. Wang. Dauxe Wang Yeah, so basically the fourth quarter performance as you tell is has some decline it's because you clear the stock. And meanwhile, like the, because of the I started this from the tariffs. I meanwhile, for the for the intelligent driving business, there's an accounting rules exchange change because of the they change the booking policy from the cash basis to the accrual basis in the fourth quarter. So, this results in some adjustment, the accounting adjustment in the in the figures. So, you can tell from the for the first quarter of the sales -- the revenues from the services, you can see the change. So basically, about starting from this year, we are already under the new accounting policies, the gross margin is going to be recovered and meanwhile, particularly in the service sector, we're going to align the intelligent driving business with the industry bunching marks. So thank you. Okay thank you. Qingfeng Feng (spoken in foreign language) (interpreted) And also, I'd like to comment that in 2025 our growth margin is going to be, greatly improved due to our launch of the model year 2026. As I previously elaborated, the model year 2026 will be launched in Europe, including the EU and the UK in quarter two, and those are two market actually accounted for more than 40% of our sales. So by launching (inaudible) ['26], it can help us to improve our gross margin. Unidentified Participant Okay, thank you. I have a second question is, what is the revenue and profit margin of the intelligent driving business in the past year 2024? And any guidance for this following year, 2025 and midterm revenue and profit margin for vehicles and or the comprehensive service respectively, what is the plan to improve the margin? Yeah, that's my final question. Thank you. Dauxe Wang The benchmark margin for the intelligence driven business is about like 30%. So it's, in line with the industry standards. So starting from this year, we're going to not only to improve the margin, also they are going to --we're going to, like get more clients, more business from the market. So I think they are going to further lower the cost is thereby increasing the profit margin. Unidentified Participant Thank you. Operator Tom Lou, Capital Sunrise. Tom Liu Thank you for taking my questions. Up to you. The first one is, what's the cash burn right now and how long is the runway? Is there any significant financing we can expect in the next six months? Dauxe Wang Yeah, well, as you can tell from like our financial performance. We do have, the GAAP in terms of the cash and also, I mean we are making the cash GAAP in the field through the operation, through the investment plans through the financing, and we have been closely, contacting the estate investors in the market. So please, take a close look at our announcement and also the company release. Thank you so much. Demi Zhang Tell me, you have another question? Tom Liu Yes. My second question is about the management capabilities. So we've noticed the recent management shifts, and would you mind to share the rationale behind and what makes the current management team the right one to turn around a luxury company? Thank you. Qingfeng Feng (spoken in foreign language) (interpreted) As far as recent management change, we do have welcomed a new CFO, Wang Daxue. He had a rich experience in finance and also capital markets. In addition to that, he also had a great performance in Geely. And another thing I'd like to comment is about the change of the Head of Sales in China. We have introduced a new China Sales President, [Qing Tai Chi]. He had also rich experience in luxury products, particularly with the Volvo. During his time with Volvo, he helped the Volvo sales volume increased from 80 to 90,000 to more than 180 to 190,000 a significant jump. And overall, I just want to say that for our entire management team, we are we have a seasoned and also rich experience when it comes to luxury brand management. As for Ms. Mao Jingguo, she previously had a really rich experience with bans and also Lincoln, and now she is responsible for closes coordination of sales and operation and brands and marketing collaboration covering the regions such as the EU, US, and APAC. The ultimate target is to ensure consistency. As for our Chief Brand Officer or Chief of Creative Officer, Ben Ain. Still remains at this position, and he created a lot of brilliant consonants for us and also the sensational concept to car for everyone, that I previously mentioned and is also created by him. As far ahead of sales in the US, he was a CEO of [Maserai], so he can bring us a lot of great, experiences that he previously gained. Operator Thank you. There are no further questions at this time. I'll now hand back to Ms. Zhang for closing remarks. Demi Zhang Darcy, do you want to remind everybody how to raise their questions if there's anymore? Operator (Operator Instructions) George Tang, Alison Capital. George Tang Hi, good morning. Thanks everybody for your time this morning. I have three quick questions for management. First question is, can management kindly get a high-level guidance on, how to put option will impact the company's financials, such as the balance sheet, cash flow, and P&L. It appears there's pretty high debt asset ratio of over (inaudible) 130% by the end of 2024. How will the acquisition change that number? Thank you. Demi Zhang Thank you, George. I will, first invite CFO to give you some, blue colourer on the questions. Dauxe Wang So regarding the execution of the production, whereas do you do the daily -- I'm talking with the dialogue with the Lotus. So I think the -- we are going to release the results in what time is it's done. And for the first phone you just mentioned, it's going to be a non-cash deal. So, it's not going to bring the cash burden to the company. And overall, I think the answer to your question, we can wait until we finish the investigation, and then we got the deal done. So please, take a close look at our further notice. Thank you very much. George Tang Perfect, thank you. And I have another question perhaps this has been burning the back of many people's minds, but I was wondering what is Lotus's is a US strategy, market strategy, given the current geop political tensions and terrorist situation. And having said that, what do you think would be your target sales for US market in this year? Thank you. Demi Zhang Thanks George. I we invite CEO to answer your question. Qingfeng Feng (spoken in foreign language) (interpreted) Yes, in 2025. It is going to be tougher, but particularly we are affected by our lifestyle vehicle are mainly affected by the tarry hike. As far as sports car, we were slightly affected, so we haven't actually changed our original plan for our sports car sales in the US. We expect about roughly 200 to 300 sales laws, because of the tariffs in the US. Finally, we're also exploring our paths and the solutions for the US market and because the US market is the biggest market for luxury premium vehicle segments. In addition to that, Lotus also has relatively high brand awareness in the US market. So definitely the US market will be one of our priorities. In addition to that, we will also keep exploring our feasibility of exporting lifestyle vehicles to the US markets. And at this moment, we will not be able to disclose any details, but please feel free to stay tuned to our future announcement. The only thing, that I may add is that manufacturing in the US could be one of our potentials. Operator (Operator Instructions) We'll now pause a moment to allow for any final questions to register. There are no further questions at this time. Demi Zhang Yeah, thank you, Darcy. Well, given the time constraints, I think it will conclude the call very soon. But everyone, thank you very much again for joining us today. If you have any further questions, please feel free to contact our IT and, this concludes the call. Have a very good day, everyone, and thank you very much again. Bye. Operator Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect. Sign in to access your portfolio
