SHANGHAI, Sept. 05, 2024 (GLOBE NEWSWIRE) -- ECARX Holdings Inc. (Nasdaq: ECX) (“ECARX” or the “Company”), a global mobility technology company, and AMD, the high performance and adaptive computing leader, today congratulated Lynk & Co. on the first deliveries of the Lynk & Co. Z10 flagship luxury sedan, which integrates ECARX’s Makalu® computing platform powered by AMD Ryzen™ Embedded V2000 processors. Dr. Lisa Su, Chairman and CEO of AMD, extends compliments through a video on the launch event of Z10. The ...

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of $6 [1]. Core Insights - The company reported Q2 2024 financial results that met expectations, achieving revenue of 1.26 billion yuan, a year-on-year increase of 31%, with a gross margin of 23%, up 1 percentage point quarter-on-quarter [2]. - Revenue growth is attributed to the continuous mass production of vehicles equipped with the company's technology products, which have been installed in over 6.9 million vehicles globally, representing a 32% year-on-year increase [4]. - The company is expected to achieve total revenues of 5.85 billion yuan in 2024, 8.2 billion yuan in 2025, and 10.53 billion yuan in 2026, with corresponding price-to-sales ratios of 1.2, 0.9, and 0.7 [2]. Financial Performance Summary - For 2023, the company reported total revenue of 4.666 billion yuan, with a projected increase to 5.852 billion yuan in 2024, 8.201 billion yuan in 2025, and 10.530 billion yuan in 2026, reflecting growth rates of 31.2%, 25.4%, 40.1%, and 28.4% respectively [2][6]. - The net profit attributable to the parent company is projected to improve from a loss of 940 million yuan in 2023 to a profit of 295 million yuan in 2026, indicating a significant turnaround [2][6]. - The company’s earnings per share are expected to turn positive, reaching 0.11 yuan in 2025 and 0.87 yuan in 2026 [2]. Strategic Developments - The company has accelerated its global strategy, with five new projects focused on overseas models, including a collaboration with a well-known European automaker [4]. - A new manufacturing base in Fuyang, Zhejiang, commenced mass production in April 2024, marking a key milestone in enhancing the company's vertical integration and supply chain capabilities [4].

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was RMB1.3 billion, representing a 31% year-over-year increase [21] - Computing hardware goods revenue increased by 41% year-over-year to RMB944 million, driven by demand for the Volvo EX30 and Polestar 4 [21] - Software license revenue decreased by 50% year-over-year to RMB57 million due to a drop in intellectual property licenses [22] - Service revenue increased by 45% year-over-year to RMB257 million, attributed to new vehicle program launches and growth in overseas TSP business [22] - Gross profit was RMB292 million, a 3% year-over-year decrease, with a gross margin of 23%, which is a 1% sequential increase [22][23] - Operating expenses increased by 12% year-over-year, primarily due to share-based compensation [23] Business Line Data and Key Metrics Changes - The company secured five new design wins during the quarter, primarily for overseas projects, indicating a growing customer base [11][12] - Over 6.9 million vehicles on the road now incorporate ECARX technology, with 472,000 vehicles added in this quarter alone, marking a 32% year-over-year increase [6][10] Market Data and Key Metrics Changes - Global car sales are projected to reach around 88 million vehicles in 2024, an increase of 2% to 3% year-over-year [4] - China's vehicle sales were 12 million in the first half of the year, with exports reaching 3.8 million, a 6% increase year-over-year [5] - Chinese electric vehicle sales were robust at 84.9 million during the same period, reflecting a 32% year-over-year increase [5] Company Strategy and Development Direction - The company aims to capitalize on the transition towards software-defined vehicles and is focused on expanding its product portfolio and customer base [4][5] - Strategic partnerships, such as with Tencent Smart Transportation and DXC Luxoft, are intended to enhance intelligent driving and cockpit solutions [8][12] - The company is committed to vertical integration of manufacturing and supply chain capabilities to improve product quality and reduce costs [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive significant growth, citing a mature technology ready for wider deployment [10] - The company is optimistic about maintaining a sustainable growth trajectory and creating long-term value for shareholders [10][24] - Management acknowledged ongoing pricing pressures in the automotive industry but emphasized efforts to optimize costs and improve operational efficiencies [23][50] Other Important Information - The company has a robust intellectual property portfolio with 598 registered patents and 656 pending patent applications as of June 30 [14] - The new manufacturing facility in Fuyang began production in April, enhancing the company's ability to control product quality and streamline operations [18] Q&A Session Summary Question: Service revenue increase explanation - Management attributed the 45% increase in service revenue to the launch of new vehicle programs and growth in overseas TSP business [28] Question: Gross margin decrease explanation - The decrease in gross margin was due to pricing pressure across the industry, but management noted improvements in supply chain management helped stabilize margins [30] Question: Strategy for competing for orders from Geely Group - The company focuses on diversifying its customer base while maintaining strong relationships with Geely, targeting both high-end and cost-effective solutions [32][33] Question: Guidance on product portfolio pricing - Management indicated that their product portfolio effectively serves a range of vehicles at different price points, from high-end to cost-effective solutions [36] Question: Drivers of hardware sales growth - The robust 41% growth in hardware sales was driven by increased demand and shipments, particularly for the Volvo EX30 and Polestar 4 [39] Question: Expectations for overseas revenue proportion - Management aims for international sales to account for at least 40% of total revenue by 2026-2027, with ongoing investments in global R&D and manufacturing [62] Question: Chip procurement strategy in response to local policies - The company is well-positioned to manage local chip procurement needs while maintaining strong relationships with global technology suppliers [65] Question: Progress on cooperation with FAW - The cooperation with FAW is progressing smoothly, with plans to launch multiple vehicle programs in the next two years [69]

LONDON, Aug. 01, 2024 (GLOBE NEWSWIRE) -- ECARX Holdings Inc. ("ECARX" or "the Company"), a global mobility technology company, announced today that it has sold its minority stake of 40% in HaleyTek AB ("HaleyTek"), a joint venture between Volvo Car Corporation ("Volvo Cars") and ECARX created to develop software for Android-powered infotainment systems, to Volvo Cars. ECARX will continue to collaborate with Volvo Cars and with HaleyTek as a fully-owned subsidiary of Volvo Cars, developing technology soluti ...

LONDON, Aug. 01, 2024 (GLOBE NEWSWIRE) -- ECARX Holdings Inc. ("ECARX" or "the Company"), a global mobility technology company, announced today that it has sold its minority stake of 40% in HaleyTek AB ("HaleyTek"), a joint venture between Volvo Car Corporation ("Volvo Cars") and ECARX created to develop software for Android-powered infotainment systems, to Volvo Cars. ECARX will continue to collaborate with Volvo Cars and with HaleyTek as a fully-owned subsidiary of Volvo Cars, developing technology soluti ...

SHANGHAI, July 29, 2024 (GLOBE NEWSWIRE) -- ECARX Holdings Inc. (NASDAQ:ECX) ("ECARX" or the "Company"), a global mobility tech provider, today announced the appointment of Mr. Tao Li as a director of the Company, effective on July 29, 2024, to replace Mr. Tan Su, who has tendered his resignation as a director of the Company effective on the same day due to personal reasons. Mr. Li joined Baidu in 2012 and was in charge of the R&D efficiency of the group and its enterprise IT platform, advancing the applica ...

Company Overview - ECARX Holdings Inc. is a global mobility tech provider focused on delivering turnkey solutions for next-generation smart vehicles, including system on a chip (SoC), computing platforms, and software [2] - Founded in 2017 and listed on Nasdaq in 2022, ECARX has over 2,000 employees across 12 major locations worldwide, including China, the UK, the USA, Sweden, Germany, and Malaysia [3] - The company was co-founded by Ziyu Shen and Eric Li, who is also the founder and chairman of Zhejiang Geely Holding Group, which has ownership interests in brands like Lotus, Lynk & Co, Polestar, Smart, and Volvo Cars [3] - ECARX products are currently integrated into over 6.4 million vehicles globally [3] Recent Developments - Mr. Tao Li has been appointed as a director of ECARX effective July 29, 2024, replacing Mr. Tan Su, who resigned for personal reasons [1] - Mr. Li has extensive experience in R&D efficiency and AI technology application, having joined Baidu in 2012 and currently serving as the general manager of Baidu's Apollo intelligent cockpit business since 2024 [1]

SHANGHAI, July 18, 2024 (GLOBE NEWSWIRE) -- ECARX Holdings, Inc. (Nasdaq: ECX) ("ECARX"), a global mobility tech provider, today announced that it will report its financial results for the second quarter ended June 30, 2024, before U.S. markets open on Thursday, August 8, 2024. The Company’s management team will hold an earnings conference call and live audio webcast to discuss the financial results and will be available to answer questions from analysts and investors. Earnings Conference Call & Webcast Det ...

ECARX to combine industry-leading full-stack digital cockpit and driver assistance technology with DXC Luxoft's deep domain expertise, enabling automotive manufactures to enhance the user experienceZUG, Switzerland, June 25, 2024 /PRNewswire/ - ECARX (Nasdaq: ECX) and DXC Luxoft (NYSE: DXC) today announced they will work together to accelerate the development of in-vehicle capabilities, resulting in enhanced infotainment, digital cockpit and advanced driver assistance systems, and enabling a better user exp ...

SHANGHAI, China, June 05, 2024 (GLOBE NEWSWIRE) -- ECARX Holdings Inc. (NASDAQ:ECX) ("ECARX" or the "Company"), a global mobility tech provider, announced today that it has strengthened its partnership with Tencent Smart Transportation ("Tencent"), the smart mobility division of Tencent Holdings Limited (HKEX: 0700), to jointly develop intelligent driving and cockpit solutions. This enhanced strategic partnership will seamlessly integrate ECARX's cutting-edge automotive intelligence solutions with Tencent's ...