Lotus Technology Reports Unaudited Second Quarter and First Half 2024 Financial Results

  • 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 239% year-on-year (YoY) increase. The Company also achieved a balanced global allocation with each region contributing 20-30% of the total deliveries in the first half of 2024, powered by over 200 stores in prime locations worldwide. The US market recorded exceptional growth and contributed 26% of the total deliveries after Lotus’ re-entry into the market. The achievements reflect the Company’s steady transition from a traditional sportscar maker to an intelligent luxury mobility provider.

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 %


Deliveries
1 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, a 206% YoY increase.
  • Sales of goods were $383 million, a 207% YoY increase.
  • Service revenues were $15 million, a 194% YoY increase.
  • Gross margin for the first half was 13%, versus 5% 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%, versus 4% for the same period of 2023.
  • Gross margin of service revenues for the first half of 2024 was 58%, versus 16% for the same period of 2023.
  • Operating loss was $438 million for the first half of 2024, a 27% 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, a 20% YoY increase.
  • Adjusted EBITDA (non-GAAP) was a loss of $382 million for the first half of 2024, a 15% 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 239% year-on-year. We achieved even more balanced distribution of deliveries in all key markets globally. The US market recorded extraordinary growth after Lotus’ re-entry into the market, contributing to 26% of total deliveries. We launched ‘Win26’ plan to increase resilience, strengthen our brand, and strive for sustainable growth. Going forward, we will keep executing our plans, boosting our efficiencies and competitiveness, and remain committed to our customers, investors, and stakeholders.”

“We continued delivery of strong topline growth in the first half of 2024, with total revenues and gross profit up by 206% and 731% year-over-year respectively,” said Mr. Alexious Lee, Chief Financial Officer. “Gross margin for the first half of 2024 increased by 8 percentage points year-over-year but shrank 2 percentage points compared to year end of 2023 as a result of increased cost of Emira (sportscar) model due to inflation and seasonal variation in product sales mix. Our average selling price (ASP) remained above $100,000 in the first half of 2024 despite intensified competition. The execution of our ‘Win26’ plan will enable the Company to achieve positive EBITDA and operating cash flow in 2026, to boost our financial performance, strengthen our balance sheet, and deliver our commitments to shareholders.”

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, a 103% YoY increase.
  • Gross margin for the second quarter of 2024 was 9%, versus 5% for the same period of 2023.
  • Net loss for the second quarter was $202 million, a 4% 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, a 1% 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.

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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
[email protected]


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 )