ECARX Holdings Inc.

Good day and thank you for standing by. Welcome to the eCARx Q1 at 2026 earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question please press star 1 and 1 again. Alternatively, you may submit your questions via the webcast. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Mark Hankinson, Head of Investor Relations. Please go ahead.

Thank you, Operator. Good morning and welcome to eCarX's first quarter 2026 earnings conference call. With me today from eCarX are our founder and chief executive officer, Ziyu Shen, chief operating officer, Peter Serino, and chief financial officer, Dylan Zheng. Following their prepared remarks, they will all be available to answer your questions. 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 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 the GAAP financial measures can also be found at the bottom of our earnings release. With that, I'd like to hand over the call to our founder and chief executive officer, Ziyu Shen. Ziv, please go ahead.

Thank you, Mark. Hello, everyone, and thank you for joining us today. The first quarter was defined by continued disciplined execution and continuing momentum in our global strategy. Our vision for EcorX remains clear. Push the boundaries of automotive intelligence globally and lead the industry's transition from feature-centric to intelligence-centric experiences. We are building the high-performance computing platforms or intelligent brands that power software-defined vehicles. We are uniquely positioned to capitalize on the surging global demand for higher-value software and physical AI across the automotive industry. We have made a strong progress on our strategic objectives since the start of 2026, building upon the momentum we gained last year. Throughout the first quarter, we executed relentlessly on our core priorities for the year, accelerating our globalization strategy, investing in our R&D roadmap. and optimizing our lean operating strategy to sustain profitability. First, on our global expansion, we continue to build out of our global footprint and governance structure, underscored by significant equity and board appointments. Crucially, the nearly 200 million US dollars in capital we raised later last year and early this year is now being actively deployed. This is fueling the build out of our RD hub in Germany and our operational infrastructure across South America and in our office in Singapore. Second, the global expansion is being fueled by our commercial execution and continuous investment in our R&D roadmap. We continue to make solid progress, driving further technical innovation and winning new business. A critical component of accelerating this innovation is our broader ecosystem of strategic partnerships. Third, we announced a major milestone in autonomous driving. eCarX expects to develop and deliver thousands of autonomous-enabled vehicles for main mobility's next-generation autonomy system. This marks eCarX's first entry into the robot taxi market, a market with significant global potential. Finally, we are maintaining robust cost discipline, reducing our operating costs to sustain profitability. Our results for the quarter demonstrate the disciplined execution driving this next phase of growth and how we are actively accelerating that transformation to build a truly global business. Our results for the quarter demonstrated this disciplined execution driving this next phase of growth. They demonstrate how we are actively accelerating that transformation to build a truly global business and sustain this momentum. While the first quarter is traditionally impacted by seasonality, the broad market also navigated micro headwinds. including shifting government policies and memory component inflation. However, our strong project pipeline and the robust backlog allowed us to largely mitigate the impact of these dynamics. As a result, we delivered sales of goods revenue of $140 million, a mode set by 6% decrease year over year, This demonstrates the underlying resilience of our core business. Crucially, our disciplined execution translated into meaningful profitability improvements. Overall gross profit was $28 million, driving an expansion in gross margin to 21.4%. We also significantly narrowed our operating loss to $13 million, nearly halving the $25 million loss reported in the same period last year. Perhaps most notably, we achieved positive adjusted EBITDA for the third straight quarter. delivering 4 million US dollars compared to negative 15 million US dollars in the same quarter last year. This robust performance allows us to confidently repeat our four-year 2026 revenue guidance of 1 to 1.1 billion US dollars. This financial resilience is no accident. It is the direct result of the strategic framework we established later last year. Let me dive a bit deeper into how we are executing against these priorities, starting with our global expansion. We remain focused on our target of 50% of total revenue from international markets by 2030. To drive the execution of this, we spent the first quarter actively fortifying our corporate governance and global leadership team. As ECON-X rapidly scales, it is crucial that we adopt top-tier global governance standards to match our expanding commercial footprint. Last month, we appointed Lona Schach as our new chairperson. This separates the roles of chairperson and CEO to strengthen governance and align the global best practices. Loan has extensive experience across automotive, technology, and finance sectors. This will be invaluable as we scale and accelerate the expansion of our central computing, cockpit, and ADA solution across Europe, the Americas, and Asia. I'm also pleased to officially welcome our new Chief Financial Officer, Dylan Chen. Dylan joined us in March to drive global financial discipline from our newly operationalized Singapore office. Mark Hackson, who spoke at the start of this call, joined us as Head of Investor Relationships and Corporate Development, and is based alongside myself and Peter in London. Commercially, our global partnerships continue to deepen. Each vehicle rolling of partner production lines demonstrates the capability and the scalability of our solutions. This unique ability to scale across diverse brands and markets is perfectly demonstrated by our strategic relationship with Volkswagen Group in Latin America. Peter will speak more about this later. Today, we are excited to announce a major milestone in autonomous driving through our strategic framework agreement with May Mobility, a leading US-based autonomous vehicle company. Under the agreement, eCARX is expected to develop and deliver thousands of autonomous enabled vehicles to May Mobility. This will include customized central computing panels, a full-stack autonomous driving system kit, and a complete sensor suite for main mobility's next-generation autonomous system. This collaboration brings together eCars' deep expertise in full-stack intelligent driving solution and main mobility industry leading autonomous driving system. It will allow us to leverage the best of both companies' core competence in intelligent hardware and software development. This is exactly the kind of discipline, high-value commercial execution that will drive our continued growth and profitability, positioning us as a key player in the future of autonomous mobility. This marks e-car as the first entry into the global taxi market, a market with significant global potential. Supporting our global expansion is our robust R&D roadmap. We are continuing to invest in the development of next generation solutions. This allows us to capture great value across our technology stack and capitalize on opportunities in adjacent sectors like robotics. To accelerate and strengthen our long-term product and technological capabilities, we recently announced a preliminary plan to potentially acquire a minority stake and certain IP rights from DreamSmart technology. and affiliates and the developer of the Flyme auto-operating system. This is a highly strategic opportunity for EconX. While our Cloud Peak cross-domain software stack handles underlying middleware, Flyme also acts as the critical application and interaction layer. Integrating this technology deeper into our solutions unlocks a powerful competitive advantage. This will enable true seamless interoperability between the intelligent vehicles, smartphones, and emerging smart devices like smart glasses. These are fully integrated cross-domain ecosystem. It equips automakers with solutions that are easily replicable across vehicle lineups to differentiate their driving experience in a highly competitive market. We view FlyMeAuto as a fundamental strategic piece of our four-stack ecosystem, capturing this vital application layer above our cloud peak middleware support or potential investment. even during a period of strict cost discipline, while this potential acquisition remains at an exploratory stage. It underscores our ambition to own the most critical software layers of the intelligence-centric vehicle experience. Staying with technology. Silicon is a fundamental capability for us. We partner with providers like Qualcomm and SciEngine to precisely specify the requirements for our silicon chips to ensure performance and efficiency. These go beyond the standard chip customization. These are differentiated, early-mode-optimized SoC core modules, such as high-performance SE1000 chipset, which powers our highly successful Antora 1000 computing platform. This is not plug-and-play or assembled technology. This is highly specialized and integrated full-stack technology. Another example of our silicon high page is the side engine itself. This was established by EqualX alongside ArmChina before becoming an independent business. During the first quarter, we recognized a 40 million US dollar gain from divesting a small portion of our shareholding in silicon engine to a new third-party investor. This is not just a one-time financial gain. It values our ability to incubate, integrate, and monetize the value of our technology. This transaction allows SunEngine to diversify its shareholder base for its next stage while we remain its largest shareholder and maintain our deep technological integration. It proves we can create inverse value while maintaining our technological edge. This is exactly the kind of disciplined capital allocation and lean operations that will sustain our profitability and industry leadership. In summary, we entered the 2026 with a clear roadmap, and we are successfully executing against it. We are expanding globally, we are capturing higher value opportunities, and we are optimizing our operations to ensure we can capitalize on the enormous opportunity ahead of us as the automotive industry evolves. I will now pass the call over to Peter Serino to discuss our operational progress in more detail.