Lotus Technology Reports Unaudited Fourth Quarter and Full Year 2023 Financial Results

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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

)

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