ECARX Announces Fourth Quarter and Full Year 2024 Unaudited Financial Results

Core Viewpoint - ECARX Holdings Inc. reported strong financial performance for 2024, with an 18% year-over-year revenue increase and a narrowing operating loss, achieving breakeven at the EBITDA level in Q4 2024, indicating positive momentum for future growth [2][3]. Financial Performance - Fourth Quarter 2024 Results: Total revenue was RMB 1,940.7 million (US $265.9 million), up 4% year-over-year. Sales of goods revenue increased by 16% to RMB 1,524.9 million (US$ 208.9 million), driven by a RMB 540 million rise in automotive computing platform product sales [3][21]. - Full Year 2024 Results: Total revenue reached RMB 5,561.3 million (US $761.9 million), an 18% increase from RMB 4,699.6 million in 2023. Sales of goods revenue rose 33% to RMB 4,405.5 million (US$ 603.6 million) [4][21]. - Gross Profit and Margin: Gross profit for Q4 2024 was RMB 410.9 million (US $56.4 million), with a gross margin of 21%. For the full year, gross profit was RMB 1,154.2 million (US$ 158.1 million), also with a gross margin of 21%, down from 27% in 2023 [3][21]. - Net Loss: The net loss for Q4 2024 was RMB 39.5 million (US $5.3 million), significantly reduced from RMB 326.7 million in the same period last year. The full-year net loss was RMB 989.9 million (US$ 135.6 million), a 3% decrease from RMB 1,015.6 million in 2023 [3][21]. Business Highlights - Record Shipments: Total shipments reached a record high of 2 million units in 2024, a 33% increase from the previous year, with over 700 thousand units shipped in Q4 alone [2][6]. - Global Customer Base Expansion: The company expanded its global customer base to 18 automakers across 28 brands, including a recent partnership with Volkswagen Group [2][6]. - Technological Advancements: ECARX integrated DeepSeek into its AutoGPT in-vehicle AI large language model, enhancing the in-vehicle experience for automaker partners [2][6]. - Strategic Initiatives: The company announced a US $20 million share repurchase program and is exploring capital-raising opportunities to support strategic objectives [2][6]. Research and Development - **R&D Expenses**: Research and development expenses for Q4 2024 were RMB 342.1 million (US$ 46.9 million), down 28% year-over-year, reflecting improved efficiencies [3][21]. - Product Innovations: New product launches included the Galaxy EX5, the first overseas model integrating the Antora 1000 computing platform, and the Skyland Pro ADAS solution integrated into Geely's G-Pilot system [6][11]. Market Position - Industry Context: ECARX is positioned as a global mobility tech provider, focusing on delivering innovative solutions for next-generation smart vehicles, capitalizing on the growing demand for software-defined vehicles [9][10].