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Lotus Tech reported profits of $679 million in 2023, driven by expansion in sales of BEV and sports vehicles.
Achieved gross profit margin of 15% in the first year of BEV delivery, with large-scale production
It expanded its footprint to 215 stores, with new landmarks in Paris, London and Seoul.
Deliveries are expected to triple in 2024 amid continued market expansion.
NEW YORK, April 08, 2024 (GLOBE NEWSWIRE) — Lotus Technology Inc. (“Lotus Tech” or the “Company”), one of the world’s leading luxury electric vehicle brands, today announced its unaudited monetary effects for the fourth quarter. and full year ending December 31, 2023. The effects reflect the Company’s continued progress in executing its Vision80 strategy towards an all-electric, intelligent and luxury mobility provider ahead of Lotus’ 80th anniversary in 2028.
In its first year of BEV delivery, the company realized liquidity of $679 million and a gross profit margin of 15% in 2023. Revenue in the fourth quarter of 2023 was $361 million, a 92% increase quarter-over-quarter. This robust functionality was made possible by Lotus Tech’s asset-optimized business model, as the company ramped up production and sales of BEV models.
The Company delivered 6,970 cars in 2023, an annual record in the Lotus brand’s 76-year history, with BEV models accounting for 63% of total deliveries. Vehicle deliveries in the fourth quarter of 2023 were up approximately 110% from the previous quarter. The increase in deliveries was primarily due to Eletre, the Company’s first BEV lifestyle, which increased production and sales in the second half of the year.
The Company also continued to expand its global footprint, laying the groundwork for a continued global launch of the brand’s cars with a year-over-year buildup of 46 outlets to a total of 215 locations as of December 31, 2023. That year, Lotus Tech opened new flagship outlets in prime locations, adding the Golden Triangle district in Paris, Mayfair in London, Gangnam-gu in Seoul, and other strategically global cities.
2024 will be a pivotal year for Lotus Tech to implement its Vision80 strategy, as the company further accelerates global deliveries of its leading product portfolio into new markets. In March 2024, the company began deliveries of Emeya, its first electric hyperelectric plant. Gran Turismo. Emeya deliveries are underway lately in China and are expected to start in Europe in the third quarter of 2024. The company’s Eletre hyper-SUV is also expected to enter more markets, including the U. S. and Canada. In 2024, the company expects to triple its total shipments to 26,000 games and further increase its healthy gross margin to 17-19%.
“We are pleased with the initial progress and promising effects achieved in 2023, with expanding deliveries reflecting the strength of our logo and increased production,” said Qingfeng Feng, CEO of Lotus Tech. “We look forward to further accelerating our expansion in the coming year and will remain committed to creating for the long term for our consumers and investors as we execute our Vision80 strategy, leveraging the fairness of our luxury logo and complex generation advantages.
Summaries of operating and financial results
The tables below summarize the Company’s key operating effects in 2023.
Deliveries by style type
Fourth Quarter 2023
Third Quarter 2023
% Change (quarter-on-quarter)
Full Year 2023
Lifestyle Vehicles
2 599
891
191%
4 361
Sports Cars
1 150
891
29%
2 609
Total
3 749
1 782
110%
6 970
Shops Across Geography
As of December 31, 2023
As of December 31, 2022
North America
47
41
Europe
70
54
Porcelain
Sixty-five
41
Rest of the world
33
33
Total
215
169
The table below summarizes the initial monetary highlights for the fourth quarter and year ended December 31, 2023 (millions of U. S. dollars, unaudited).
Fourth Quarter 2023
Third Quarter 2023
% Change (quarter-on-quarter)
Full Year 2023
Income
361
188
92
%
679
Cost of goods sold
293
160
83
%
577
Gross Profit
68
28
142
%
102
Gross margin (%)
19%
15%
—
15%
Business Interruption
(228
)
(163
)
—
(736
)
Net loss
(224
)
(174
)
—
(750
)
Adjusted EBITDA(1)
(206
)
(154
)
—
(693
)
(1) Non-GAAP Measure. See “Non-GAAP Financial Measures” and “Appendix D: Unaudited Reconciliation of GAAP Results to Non-GAAP Results (Adjusted EBITDA)” for additional highlights and a reconciliation of the adjusted measures to the nearest GAAP measure.
RECENT DEVELOPMENTS
Emeya deliveries: The Company unveiled Emeya, its first hypergrand tourer, in September 2023. The Company commenced Emeya deliveries in China in March 2024 and expects to commence deliveries in Europe in the third quarter of 2024.
Deliveries of the ultra-luxury Evija model: Lotus Tech has deliveries of Evija, the UK’s first all-electric hypercar, in 2024.
Launch of bespoke Lotus Chapman: In March 2024, the company is proud to launch its bespoke product that offers other levels of premium customisation for Lotus vehicles, from one-of-a-kind and one-of-a-kind Lotus cars to limited editions. Individualized artist collections and ornaments with exclusive touches for staff.
Lotus Day 2024: This year’s annual Lotus Day occasion took place from March 29-31, 2024, celebrating the brand’s heritage and bringing our racing network closer together in combination with Evija’s first Chinese car, Lotus’ ultra-luxury all-electric hypercar, as well as track testing through Eletre, Emeya and Emira.
Super charging stations: As part of its commitment to providing premium charging service to Lotus drivers, the company has established 65 super charging stations equipped with its industry-leading 480 kW fast charging solution in premium locations in China. These are part of a charging network. Across Europe and China there are around 300,000 public charging stations available to Lotus owners. The company plans to continue expanding its charging network as its BEVs are introduced around the world.
Conference Call: Lotus Tech Control will host a conference call on earnings at 8:00 a. m. m. ET on Monday, April 8, 2024 (2:00 p. m. ET)m. , Central European Time / 8:00 p. m. , China Standard Time, same day).
After the call is over, a live audio webcast and replay will take place on the Company’s online investor relations page in https://ir. group-lotus. com/.
For participants who wish to participate in the call, please complete online registration prior to the scheduled call start time at the link provided below. Upon registration, participants will receive a confirmation email containing convention call access information, adding dial-in. numbers and a unique PIN.
Online registration for participants: https://register. vevent. com/register/BI56a4f47247f5442f8fad57983f214c4e
About Lotus Technology Inc. Lotus Technology Inc. has operations in China, the United Kingdom, and the EU. The company is committed to offering luxury battery electric vehicles, with an R
Unaudited Preliminary Financial and Operating Results Statement The unaudited monetary and operating data published here is initial in nature and is subject to forward-looking adjustments, which may cause differences from the unaudited operating and monetary data published herein. For the avoidance of doubt, the unaudited operational and monetary data published here. The operational and monetary data published herein should not be considered as a replacement for additional monetary data to be filed with the U. S. Securities and Exchange Commission. U. S. Census Bureau, for the year ended December 31, 2023.
The Company uses non-GAAP monetary measures, aggregating adjusted net loss and adjusted EBITDA, to compare the effects of its operations and for monetary and operating decision-making purposes. Adjusted net loss represents net loss excluding stock-based payment expense. , and this adjustment has no impact on income tax. The Company defines Adjusted EBITDA as the net source of income excluding interest expense, the source of interest income, the source of income tax expense (profits), depreciation and amortization of property, plant and apparatus and software, and stock-based payment expense. The Company believes that non-GAAP monetary measures help identify underlying trends in its business and overall understanding of functionality beyond the Company and long-term prospects. The Company also believes that non-GAAP monetary measures provide greater visibility into the key signs used through the Company’s control in its monetary and operational decision-making.
These non-GAAP monetary measures are not presented in accordance with US GAAP and would possibly differ from the non-GAAP accounting and reporting strategies used by other companies. Non-GAAP monetary measures have limitations as an analytical team and when comparing the Company’s operational functionality. Investors should not be aware of them in isolation or as a substitute for monetary data prepared in accordance with U. S. GAAP. UU. La company encourages investors and others to review their monetary data in its entirety and not to rely on any individual monetary measure. by reconciling non-GAAP monetary measures with comparable U. S. GAAP maximum functionality measures. All of which deserve to be included when comparing the Company’s functionality. For more data on non-GAAP monetary measures, please refer to “Appfinishix D – Unaudited GAAP Reconciliation to Non-GAAP Earnings (Adjusted EBITDA)” at the end of this press release.
Forward-Looking Statements This press release comprises statements that would potentially constitute “forward-looking” statements within the meaning of the “safe harbor” provisions of the U. S. Private Securities Litigation Reform Act of 1995. All statements other than statements of past fact are forward-looking statements. It seems forward-looking. In some cases, you may be able to identify prospective advertisements using terms such as “possibly,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict. “”. Array “potential”, “forecast”, “plan”, “seek”, “future”, “propose” or “continue”, or the negative bureaucracy of those terms or diversifications of them or similar terminology, although they all look to the future. s do not imply such terminology. Forward-looking statements involve inherent dangers and uncertainties, in addition to those disclosed under the heading “Risk Factors” in the Form F-4 filing with Lotus Tech with the U. S. Securities and Exchange Commission. All data provided in this press release is as of the date of this press release, and Lotus Tech assumes no legal responsibility to update any forward-looking notices, unless required by applicable law.
Contact InformationFor Investor InquiriesHalf Zhangir@group-lotus. com
For Media Inquiries Brunswick GroupLotustechmedia@brunswickgroup. com
Annex A
Lotus Technology Inc. Unaudited Consolidated and Combined Balance Sheets
(All in thousands)
De
December 31, 2023
December 31, 2022
THE US DOLLAR$
THE US DOLLAR$
ASSETS
Current assets
Money
418 941
736 605
Restricted liquidity
7 873
2 392
Accounts receivable – third-party, net
76 664
111
Accounts receivable – similar portions, net
22 430
8 545
Inventories
265 190
22 703
Anticipated Effects and Existing Assets – Third Parties, Net
63 870
44 375
Advance Bills and Existing Assets – Similar Shares, Net
28 744
8 732
Total assets
883 712
823 463
Non-current assets
Restricted liquidity
321
536
Investment Securities – Related Parties
3 326
8 411
Property, Plant & Apparatus & Software, Net
354 617
253 471
Intangible assets
116 360
116 364
Right-of-operation assets
173 103
158 724
Other non-current assets – Third parties
50 533
10 983
Other non-current assets – like parts
2 706
–
Total non-current assets
700 966
548 489
Total assets
1 584 678
1 371 952
Lotus Technology Inc. Unaudited Consolidated and Combined Balance Sheets (continued)
(All in thousands)
De
December 31, 2023
December 31, 2022
THE US DOLLAR$
THE US DOLLAR$
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDER DEFICIT
Current liabilities
Short-term loans – third parties
226 772
28 748
Accounts Payable – Third Parties
20 123
1 466
Accounts Payable – Related Parties
340 419
5 770
Contractual Responsibilities – Third Parties
44 184
7 843
Operating Lease Liabilities – Third Parties
16 760
15 815
Accrued liabilities and existing liabilities – third parties
419 422
323 299
Accrued liabilities and existing liabilities – similar parts
290 686
183 237
Interchangeable banknotes
378 638
355 320
Non-controlling holdings that will have to be redeemable
–
11 381
Convertible Notes
20 277
–
Full Liability
1 757 281
932 879
Non-current liabilities
Contractual Responsibilities – Third Parties
6 245
–
Operating Lease Liabilities – Third Parties
91 929
98 963
Operating Lease Liabilities – Similar Parts
12 064
170
Put Liabilities
11 884
–
Interchangeable banknotes
75 678
71 792
Convertible Notes
81 635
76 770
Deferred tax liabilities
–
126
Deferred Revenue
270 097
258 450
Other non-current liabilities – Third parties
103 403
15 824
Other non-current liabilities – similar parts
1 634
1 584
Total non-current liabilities
654 569
523 679
Total Responsibilities
2 411 850
1 456 558
Lotus Technology Inc. Unaudited Consolidated and Combined Balance Sheets (continued)
(All in thousands)
De
December 31, 2023
December 31, 2022
THE US DOLLAR$
THE US DOLLAR$
MEZZANINE ACTIONS
Series Pre-A Redeemable Convertible Preferred Stock
184 509
177 284
Series A Redeemable Convertible Preferred Stock
199 021
191 125
Total mezzanine capital
383 530
368 409
SHAREHOLDER DEFICIT
Share
21
21
Premium Sharing
358 187
403 103
Shareholder accounts receivable
–
(26 447
)
Cumulative comprehensive income
25 267
17 707
Cumulative deficit
(1 588 773
)
(846 757
)
Total shareholder deficit attributable to common shareholders
(1 205 298
)
(452 373
)
Non-majority interests
(5 404
)
(642
)
Total shareholder deficit
(1 210 702
)
(453 015
)
Total liabilities, mezzanine capital and shareholder deficit
1 584 678
1 371 952
Appendix B
Lotus Technology Inc. Unaudited Consolidated and Combined Comprehensive Income Statements
(All amounts are in thousands, according to percentage and percentage/ADS data)
By the end of December 31st.
2023
2022
THE US DOLLAR$
THE US DOLLAR$
Gain:
Sales of Goods
660 158
1 186
Service Revenue
18 850
8 371
Total Revenue
679 008
9 557
Cost of Revenue:
Cost of Goods Sold
(564 741
)
(948
)
Cost of Services
(12 086
)
(6 302
)
Total Cost of Revenue
(576 827
)
(7 250
)
Gross Profit
102 181
2 307
Operating Expenses:
Research & Costs
(368 729
)
(445 844
)
Sales & Marketing Expenses
(328 935
)
(151 331
)
General and administrative expenses
(144 533
)
(148 369
)
Government Scholarships
4 077
55 824
Total Operating Expenses
(838 120
)
(689 720
)
Business Interruption
(735 939
)
(687 413
)
Interest Charges
(10 200
)
(8 542
)
Interest income
9 204
12 188
Investment loss, net
(1 162
)
(3 246
)
Profit sharing or loss of investments accounted for under the participation method
(1 048
)
(2 762
)
Foreign Gains (Losses), Net
42
(11 505
)
Changes in the fair values of non-redeemable non-controlling interests, exchangeable notes and convertible notes, excluding the effect of instrument-specific credit risk
(7 531
)
(22 991
)
Changes in put option liabilities
(2 508
)
–
Loss Before Source of Income Taxes
(749 142
)
(724 271
)
Income from tax expenses
(1 113
)
(292
)
Net loss
(750 255
)
(724 563
)
Less: Net loss attributable to non-controlling interests
(8 254
)
(642
)
Net source of income attributable to non-unusual shareholders
(742 001
)
(723 921
)
Increase in redeemable convertible preferred shares
(15 121
)
(910
)
Net loss to common shareholders
(757 122
)
(724 831
)
Loss consistent with non-unusual action1
—Basic and watered down
(1,60
)
(1,52
)
Weighted average number of notable non-unusual shares used to calculate net loss consistent with non-unusual holding1
—Basic and watered down
474 621 603
475 805 054
1 Featured stocks for all periods reflect the recapitalization adjustment upon completion of the merger transaction in February 2024.
Lotus Technology Inc. Unaudited Consolidated and Combined Consolidated Comprehensive Income Statements (continued)
(All amounts are in thousands, according to percentage and percentage/ADS data)
By the end of December 31st.
2023
2022
THE US DOLLAR$
THE US DOLLAR$
Net loss
(750 255
)
(724 563
)
The Prolonged Result:
Changes in the fair price of mandatory non-controlling interests, exchangeable notes and convertible notes due to specific instrument credit risk, net of 0 source of income taxes
(8 650
)
(893
)
Foreign Currency Translation Difference, Net of 0 Source of Income Tax
16 210
18 669
Total Other Comprehensive Income
7 560
17 776
Total Total Loss
(742 695
)
(706 787
)
Less: Total loss attributable to non-controlling interest
(8 254
)
(642
)
Total comprehensive source of income attributable to non-unusual shareholders
(734 441
)
(706 145
)
Appendix CLotus Technology Inc. Unaudited Consolidated and Combined Comprehensive Income Statements
(All amounts are in thousands, according to percentage and percentage/ADS data)
Three months ended
December 31, 2023
September 30, 2023
December 31, 2022
THE US DOLLAR$
THE US DOLLAR$
THE US DOLLAR$
Gain:
Sales of Goods
354 678
180 626
484
Service Revenue
6 389
7 280
5 416
Total Revenue
361 067
187 906
5 900
Cost of Revenue:
Cost of Goods Sold
(289 495
)
(155 689
)
(360
)
Cost of Services
(3 139
)
(4 596
)
(4 396
)
Total Cost of Revenue
(292 634
)
(160 285
)
(4 756
)
Gross Profit
68 433
27 621
1 144
Operating Expenses:
Research & Costs
(134 182
)
(81 999
)
(230 306
)
Sales & Marketing Expenses
(137 704
)
(72 995
)
(82 626
)
General and administrative expenses
(26 330
)
(37 786
)
(44 432
)
Government Scholarships
1 720
1 695
–
Total Operating Expenses
(296 496
)
(191 085
)
(357 364
)
Business Interruption
(228 063
)
(163 464
)
(356 220
)
Interest Charges
(2 833
)
(3 897
)
(148
)
Interest income
1 946
1 410
3 001
Source of investment income (losses), net
147
(4 079
)
(1 177
)
Profit sharing or loss of investments accounted for under the participation method
(400
)
(22
)
(1 439
)
Foreign Gains (Losses), Net
(841
)
4 502
4 134
Changes in the fair values of non-redeemable non-controlling interests, exchangeable notes and convertible notes, excluding the effect of instrument-specific credit risk
7 863
(2 637
)
(5 932
)
Changes in put option liabilities
(1 787
)
(4 027
)
–
Loss Before Source of Income Taxes
(223 968
)
(172 214
)
(357 781
)
Income tax getting advantages (expense)
237
(1 368
)
(137
)
Net loss
(223 731
)
(173 582
)
(357 918
)
Less: Net loss attributable to non-controlling interest
(603
)
(1 872
)
(501
)
Net source of income attributable to non-unusual shareholders
(223 128
)
(171 710
)
(357 417
)
Increase in redeemable convertible preferred shares
(10 058
)
(4 805
)
(910
)
Net loss to common shareholders
(233 186
)
(176 515
)
(358 327
)
Loss consistent with non-unusual action1
—Basic and watered down
(0,49
)
(0,37
)
(0,75
)
Weighted average number of notable non-unusual shares used to calculate net loss consistent with non-unusual holding1
—Basic and watered down
474 621 603
474 621 603
475 805 054
1 Featured stocks for all periods reflect the recapitalization adjustment upon completion of the merger transaction in February 2024.
Lotus Technology Inc. Unaudited Consolidated and Combined Consolidated Comprehensive Income Statements (continued)
(All amounts are in thousands, according to percentage and percentage/ADS data)
Three months ended
December 31, 2023
September 30, 2023
December 31, 2022
THE US DOLLAR$
THE US DOLLAR$
THE US DOLLAR$
Net loss
(223 731
)
(173 582
)
(357 918
)
The Prolonged Result:
Changes in the fair price of mandatory non-controlling interests, exchangeable notes and convertible notes due to specific instrument credit risk, net of 0 source of income taxes
(8 065
)
974
(1 727
)
Foreign Currency Translation Difference, Net of 0 Source of Income Tax
(7 867
)
(10 486
)
1 584
Total Other Comprehensive Income
(15 932
)
(9 512
)
(143
)
Total Total Loss
(239 663
)
(183 094
)
(358 061
)
Less: Total loss attributable to non-controlling interest
(667
)
(1 998
)
(503
)
Total comprehensive source of income attributable to non-unusual shareholders
(238 996
)
(181 096
)
(357 558
)
Addendum DLotus Technology Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results (Adjusted EBITDA)
(All in thousands)
By the end of December 31st.
2023
2022
THE US DOLLAR$
THE US DOLLAR$
Net loss
(750 255
)
(724 563
)
Stock-based reimbursement expense
–
10 625
Adjusted Loss
(750 255
)
(713 938
)
Net loss
(750 255
)
(724 563
)
Interest Charges
10 200
8 542
Interest income
(9 204
)
(12 188
)
Income from tax expenses
1 113
292
Stock-based reimbursement expense
–
10 625
Depreciation
54 957
12 790
Adjusted EBITDA
(693 189
)
(704 502
)
Three months ended
December 31, 2023
September 30, 2023
December 31, 2022
THE US DOLLAR$
THE US DOLLAR$
THE US DOLLAR$
Net loss
(223 731
)
(173 582
)
(357 918
)
Stock-based reimbursement expense
–
–
–
Adjusted Loss
(223 731
)
(173 582
)
(357 918
)
Net loss
(223 731
)
(173 582
)
(357 918
)
Interest Charges
2 833
3 897
148
Interest income
(1 946
)
(1 410
)
(3 001
)
Income Tax (Profit)/Expense
(237
)
1 368
137
Stock-based reimbursement expense
–
–
–
Depreciation
16 307
16 009
7 298
Adjusted EBITDA
(206 774
)
(153 718
)
(353 336
)