Lotus Technology Inc.

Good day and thank you for standing by. Welcome to Lotus Technology Inc. first quarter and full year 2025 earnings conference call. At this time, all participants are in 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. If you wish to ask a question via the webcast, please type it into the box and click submit. Please be advised that today's conference is being recorded. And I'd like to hand the conference over to your first speaker today, Ms. Michelle Ma, Head of Investor Relations. Please go ahead.

Thank you and welcome to Lotus Tech's fourth quarter and the full year 2025 earnings call. My name is Michelle Ma, the Head of Investor Relations here at Lotus. With me today are the CEO, Mr. Ching Fung Fung, and the CFO, Dr. Dashie Wang. Our conference call materials were issued today and are available on our university relations website. We are also broadcasting this call via webcast. Before we continue, Please be reminded that today's discussion will contain all the looking statements. For looking statements involving inherent risks and uncertainties. As such, the company's actual future results may be materially different from the views expressed today. Further information regarding risks and uncertainties is included in Lotus Tax, relevant filings with the U.S. Securities Exchange Commission. The company undertakes no obligation to update any forward-looking statements, except as required under applicable law. Please also note that our earnings press release and this conference call will include disclosure of unaudited GAAP financial information, as well as unaudited non-GAAP financial measures. You can find a reconsolidation of the figures in the press release available on our investor relations website at ir.grouppricenlotus.com. With that, I'm delighted to turn the call over to our guest host, Dr. Wang, please.

Good morning, good afternoon, and good evening to our shareholders, analysts, and media friends. Thank you very much for joining us for Lotus' fourth quarter and full year 2025 earnings discussion. I'm Da Xu Wang. Chief Financial Officer of Lotus Tech. It's my privilege to once again present the company's audited financial results. In the fourth quarter, the company delivered 1,908 vehicles, including 1,239 lifestyle SUVs and sedans, and 670 sports cars. For the full year 2025, total delivery reached 6,520 units. While this represents a 64% year-on-year decrease, these figures reflect a transitional year marked by the impact of tariffs, the phase start of the upgraded model's deliveries, and intensified market competition. Total revenues for the fourth quarter were $163 million, a 40% year-on-year decrease. For the full year 2025, total revenues were $519 million, down 44% year-on-year. Sales of goods fell 48% year-on-year to $563 million, driven by lower sales volume. While services revenue surged 69% year-on-year to $56 million, primarily due to the R&D service revenue, The commercialization of our intellectual properties through technical licensing and other channels has demonstrated significant market recognition of our pioneering technologies. Gross market improved significantly to 10% in the fourth quarter compared to negative 11% in the same period of 2024. For the full year, gross market improved to 9% from 3% in 2024. This improvement was driven by the global rollout of upgraded model deliveries, a favorable shift in our sales mix, healthy inventory dynamics, and disciplined cost control. We continued our track record of disciplined cost management. Operating loss narrowed by 65% year-to-year to $66 million. your dollars in the fourth quarter consecutive sequential quarterly reductions in operating losses demonstrate the company's commitment to operational efficiencies in fiscal year 2025 lifestyle vehicles deliveries accounted for seven percent of the total with sports car making up the remaining 30 percent deliveries were primarily driven by the china and european markets importantly growth in Chinese deliveries outpaced the broader premier auto segment, underscoring the competitive stress of our product portfolio within China. By region, China accounted for 45% of full-year deliveries, Europe 34%, North America 16%, and the rest of the world 5%. In the fourth quarter of 2025, our sports car deliveries to North America achieved remarkable QOQ growth, even with a 5% local price increases. Earlier tariff hikes hit our Q2 sales card, but the U.S. adjusting U.K. auto import tariffs down to 10% brought policy clarity. The recovery of sports car sales in the U.S. during the third and fourth quarters fully demonstrates our strong grand appeal and price acceptability in the region, serving a dual rebound in sales volume and gross profit margin. Research and development expenses were $171 million for the full year, down from $275 million in 2024, reflecting targeted prioritization of our technology investments. Selling and marketing expenses decreased to $153 million from $322 million and general and administrative administrative expenses declined to 136 million us dollars from 227 million us dollars these reductions underscore our strong commitment to enhancing operational efficiency together with growth profit increase in 2025 operating laws narrowed 46 percent year-on-year and net loss decreased 58 percent year-on-year our non-gap adjusted basis just EBITDA for the full year improved by 63% year-over-year, narrowing to a loss of $356 million from $961 million in 2024. Beyond these numbers, I would like to reiterate that we have now reduced operating expenses for multi-conservative quarters through value-added measures. Our improved margin performance in the fourth quarter and the full year of 2025 demonstrated our continued focus on cost optimization and operational efficiency. And this was also reflected in our significantly improved bottom line of results. Going forward, we expect the global launch of our PHEV model, for me, to drive sales and revenue growth. Additionally, we expect that the combination of focusing on revenue growth efforts, maximizing product positioning, and enhancing margins through the strict cost reductions will allow our business to progress towards profitability and enable us to deliver long-term value to shareholders. With that, I will now turn the floor over to Ms. Feng. Thank you.