ECARX Holdings Inc.

Good day, and thank you for joining us. Welcome to eCARx Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management gives their prepared remarks, there will be a question and answer session. To ask the question during the session, you will need to press Star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press Star 1-1 again. As a reminder, today's conference is being recorded. I would now like to hand the conference over to your host, Renee Du, Head of Investor Relations at eCARX. Please proceed.

Thank you, Operator. Good morning and welcome to eCARX Third Quarter 2024 Earnings Conference Call. With me today from eCARX are Chairman and the 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 follow-up looking statement at the bottom of our earnings press release, which also applies to this call. Further information on specific risk factors that could 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 be also found at the bottom of our earnings release. With that, I'd like to hand the call over to Ziyu. Please go ahead.

Thank you, Renee. Hello, everyone, and thank you for joining our third quarter earnings call today. The solid growth momentum we picked up in the first half of the year continued into the third quarter. The global automotive industry is rapidly evolving towards software-defined vehicles, which we are uniquely positioned to benefit from, and I think our results this quarter reflect that. Let me start with a brief market update. Looking at the broader automotive landscape internationally, the sector continues to face a challenging environment globally. Despite the headwinds, the overall trajectory remains positive, particularly for electrical vehicles and intelligent car technologies. with the automotive industry still projected to reach approximately 88 million vehicle sales in 2004. In contrast, Chinese automotive market has been gradually picking up. Total sales from January to September increased 2.4% from the same period last year, among which China's export data showed a much more positive outlook with overall export volume rising every month this year. China exported 4.3 million vehicles from January through September, an impressive increase of 27% year-over-year. Electrical vehicle sales in China during the same period increased 33% year-over-year, accounting for 39% of total new car sales. The market continues to yield significant opportunities for us despite headwinds. This underscores our unique positioning to drive growth in China and overseas. Regardless of market cycle, our involving product portfolio, diverse customer base, and strategic global partnerships and operations are key factors. that enable us to capitalize on these opportunities. By the end of quarter, there were over 7.3 million vehicles on the road equipping eCarX technology, with 442,000 vehicles added this quarter alone. This translates into an increase of approximately 31% year-over-year, or 6%. Secondly, all global reach across the sector remained stable from last quarter, with 17 OEMs across 26 brands. Notably so, the number of project wins from existing customers increased substantially as we deepen our relationship and build up the success of existing mass production projects. Revenue during the quarter increased by 31% year-over-year to RMB $1.4 billion on the back of recent vehicle launches, such as the Geely Glax E5. computation remains fierce with ongoing pricing pressures, causing growth margins to decline to approximately 17% during the quarter. Despite the challenging computation and the impact on margin, we remain firmly on track with our top-line continuing to outperform the broad market as we scale and build a path towards profitability. We have a very strong track record of our top line with new vehicle launches and have a robust and healthy pipeline with over 40 vehicle models currently in development. To offset the impact of pricing pressure on our margins, we are working aggressively to optimize our cost structure by taking greater vertical control of our manufacturing and supply chain, optimizing our product portfolio, improving engineering and operational efficiency. At the same time, we are expanding our global footprint to provide us with the flexibility to mitigate geopolitical risks. I am highly confident in our ability to drive significant growth throughout the year and beyond. Our strategy has not changed, and we remain on course for success as we focus on sustaining revenue growth momentum, capturing sales volumes, and improving margins. Our flexibility to adapt to a changing market environment ensures that we can see new opportunities as they arise, leaving us very optimistic about the future. I will now pass the call over to Peter, who will go through operating results of the quarter in more detail.