ECARX Holdings Inc.

Good day, and thank you for joining us. Welcome to eCarX First Quarter 2024 Earnings Conference Call. At this time, all participants are in listen-only mode. After management gives their prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded. I would now like to turn the call over to your host for today's call, Rene Du. Head of Investor Relations at eCarX. Please proceed, Renee.

Thank you, operator. Good morning and welcome to eCarX first quarter 2024 earnings conference call. With me today from eCarX are Chairman and Chief Executive Officer, Ziyu Shen, Chief Operating Officer, Peter Serino, and Chief Financial Officer, Phil Zhou. Following their prepared remarks, they will all be available to answer your questions during the Q&A session that follows. Before we start, I would like to refer you to our forward-looking statements at the bottom of our earnings press release, which also applies to this call. Further information on specific risk factors that cause actual results to differ materially can be found in our filings with the SEC. In addition, this call will include discussions of certain non-GAAP financial measures. A reconciliation of the non-GAAP financial measures to GAAP financial measures can also be found at the bottom of our earnings release. With that, I'd like to hand the call over to Ziyu. Please go ahead.

Thanks, Renee. Hello, everyone, and thank you for joining our call today. We started out the year strongly with significant growth in momentum from 2023. As electronic vehicle architecture evolves, cars are increasingly becoming computers on wheels. Software-defined vehicles and the technologies that underpin them will determine the winners in the next stage of the auto revolution. This is creating significant growth opportunities globally for underlying software and enriching vehicle experiences, which we are uniquely positioned to capitalize on. The opportunity is enormous. According to recent data, the L2 Plus assisted driving adoption rate hit 9.8%. while L2 hit 36.1% at the end of March, reflecting how much room for growth vehicles in China offers. Globally, EV sales are expected to increase from 14 million last year to 17 million in 2024, with 10 million of them expected to be sold in China. While global EV sales in the first quarter grew at roughly the same pack as they did a year ago, increasing by about 25%, they grew on top of much larger banks. But the software-defined vehicles are not exclusive to EVs. This mega trend is resharping the entire auto industry. The automotive platforms we build are agnostic to the powertrain. They can support any vehicle. These are having a profound impact on traditional vehicle design and is a positive sign for our industry and that is our strategy for the future. We believe that our unique strengths, including our ability to adapt consumer technology for automotive markets, our deep understanding of the complete automotive intelligence stack, our strategic partnerships, and our global operations uniquely equip us to build stronger connections with automakers, deliver cost-effective solutions that meet their involving needs, and build a sustainable path to profitability. We have already made significant progress to support this great belief. We are thrilled to report there are no more than 6.4 million vehicles on the road that incorporate our technology across 26 brands offered by our 17 automotive OEM customers. The number of eCars equipped vehicles on the road rose 6.2% from the previous quarter and 31.2% from a year earlier. reflecting the growing recognition and the significant value proposition that our solutions offer. This is also reflected in our financial results for the quarter, where revenue increased to RMB 9 to 8 million, up 21% from a year earlier. Our global customer base continues to grow during the quarter, expanding our horizons beyond the GD Group. We recently began working closely with FAW Group to develop the next-generation intelligent carpets for their newest car models, and had our solution for our well-known European automaker begin mass production. We are confident this will open the door to additional opportunities for developers. Our unique ecosystem of partnerships is key to driving further growth in our customer base and technical innovation across industry. We recently announced our partnership with Microsoft to jointly develop and integrate new products and technologies. The synergies created by this partnership will uniquely position us to support Chinese automakers as they venture aboard and oversee automakers on a wide array of car models. We strongly believe that continuous technical innovation is critical to showcasing our strengths and standing out in the first competition. I will let Peter go into this in more detail. But last month, during our second tech day, we unveiled multiple groundbreaking automotive intelligence solutions and ecosystem advancements that have already begun to pick up tracking globally. This includes three new intelligent copy platforms, two central computing platforms, new ADAS features for the Skylab Pro platform, and two LIDARs. which are part of our strategy to become a provider of new components for intelligent vehicles. To summarize, I'm very optimistic about our future growth prospects and am confident that our pipeline will continue to expand as more users and automakers recognize the value our solutions offer. We are already learning, and the first quarter has provided us with priceless insights into how we can make the driving experience more intelligent, comfortable, and convenient. Our profile is growing internationally, and with our strong partnerships and cutting-edge solutions, we are in a good position to benefit from the wealth of growth opportunities ahead. I will now pass the call over to Peter, who will go through the operating results for the first quarter in great detail.