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Lotus Technology Reports Unaudited Fourth Quarter and Full Year 2024 Financial Results

1. Lotus Tech delivered 12,134 vehicles in 2024, up 74% year-on-year. 2. Total revenue reached $924 million, reflecting a 36% growth. 3. Acquisition of Lotus UK expected to consolidate the global business. 4. Operating loss increased to $786 million, net loss surged 48%. 5. European market led deliveries with 40% share despite trade uncertainties.

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Why Neutral?

Despite strong vehicle delivery growth, significant operating and net losses are concerning. Historical examples show similar growth in revenues can lead to stock price increases, but operating losses may suppress enthusiasm among investors.

How important is it?

The report presents important metrics affecting Lotus Tech's immediate stock performance and investor sentiment. The acquisition is pivotal in shaping future operational consolidation.

Why Short Term?

The effects of quarterly results and the announced acquisition could influence investor sentiment in the short-term while the long-term impact shifts based on operational efficiency improvements post-acquisition.

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Over 12,000 vehicles delivered in 2024, a year-on-year increase over 70%.Total revenue reached $924 million, a 36% year-on-year growth.Achieved a reduction in operating expenses for five consecutive quarters through rigorous execution of efficiency enhancement initiatives.The Company is expected to consolidate the entire global business of the Lotus brand by acquisition of a majority interest in Lotus UK upon the closing of Geely’s put option. NEW YORK, April 22, 2025 (GLOBE NEWSWIRE) -- Lotus Technology Inc. (“Lotus Tech” or the “Company”) (Nasdaq: LOT), a leading global intelligent and luxury mobility provider, today announced its unaudited financial results for the fourth quarter and the year ended Dec 31, 2024. Operating Highlights for the Full Year of 2024 In the full year of 2024, the Company achieved total deliveries1 of 12,134 units, representing a 74% year-on-year (YoY) increase, powered by over 200 stores worldwide. The Company maintained a growth trajectory amid global trade uncertainties and economic slowdown. The European market contributed nearly 40% of total deliveries. With Eletre rollout and Emeya commencing deliveries in mid-2024, the European market achieved a YoY growth rate of 179%, positioning Europe as the Company's largest global market in 2024. China, as the second largest market for Lotus, contributed 25% to total deliveries despite intensifying market competition and economic downturn. Deliveries in North America contributed 21% of the Lotus’ global deliveries as Emira, the sportscar model produced in Hethel UK, commenced customer deliveries in the U.S. in 2024. The rest of the world region represented 15% of total deliveries with nearly 90% YoY growth. In the fourth quarter of 2024, the Company started to deliver Emeya in Malaysia, Thailand, Singapore, UAE and Philippines. Deliveries1 by Model Type  Full Year 2024Full Year 2023%Change (YoY)Lifestyle SUV and Sedan6,8624,36157%Sportscars5,2722,609102%Total12,1346,97074% Deliveries1 by Region  Full Year 2024% by regionFull Year 2023% by regionEurope4,74339%1,70324%China3,01825%3,82555%North America2,57821%5017%Rest of the World1,79515%94114%Total12,134100%6,970100% Financial Highlights for the Full Year of 2024 Total revenues: $924 million, reflecting a 36% YoY increase.Sales of goods: $891 million, up 35% YoY.Service revenues: $33 million, a 77% YoY increase.Gross margin: 3%, as compared with 15% in 2023.Gross margin of sales of goods: 3%, versus 14% in 2023.Gross margin of service revenues: 17%, versus 36% in 2023.Operating loss: $786 million, a 7% YoY increase.Net loss: $1,107 million, a 48% YoY increase.Adjusted net loss (non-GAAP): $1,075 million, a 43% YoY increase.Adjusted EBITDA (non-GAAP): loss of $961 million, a 39% YoY increase. Key Financial ResultsThe table below summarizes key preliminary financial results for the full year of 2024 ended December 31, 2024. (in millions of U.S. dollars, unaudited)   Full Year 2024Full Year 2023% Change (YoY)Revenues92467936%Cost of revenues89557755%Gross profit29102(71%)Gross margin (%)3%15% Operating loss(786)(736)7%Net loss(1,107)(750)48%Adjusted net loss(A)(1,075)(750)43%Adjusted EBITDA(A)(961)(693)39% (A) Non-GAAP measure. See “Non-GAAP Financial Measures” and “Appendix D – Unaudited Reconciliation of GAAP and Non-GAAP results (Adjusted net loss/Adjusted EBITDA)” for details and a reconciliation of adjusted metrics to the nearest GAAP measure. Put Option: To Integrate global business under Lotus BrandOn April 14, 2025, the Company received the exercise notice from Geely International (Hong Kong) Limited (“Geely”), requiring the Company to purchase 51% of the equity interests in Lotus Advance Technologies Sdn Bhd (“Lotus UK”) held by Geely, pursuant to the Put Option Agreement dated January 31, 2023, between the parties. Lotus UK oversees the manufacturing operations for Lotus’ sportscars and hyper cars. It also manages Lotus Engineering, which provides comprehensive consultancy services to many of the OEMs and Tier 1 suppliers worldwide. Pursuant to the exercise of put option from Geely, the Company expects to acquire 51% of the equity interest in Lotus UK through a non-cash transaction based on a pre-agreed valuation methodology2. Upon completion, the Company will gain control over Lotus UK and consolidate its financial results. The strategic transaction will enable the Company to integrate all global business under the Lotus brand. The acquisition is expected to be completed in 2025, subject to potential regulatory approvals. Recent Developments Delivery Update: The Company delivered a total of 1,282 vehicles in the first 3 months of 2025.Return of Lotus Brand in China: In January 2025, Lotus successfully reclaimed the proprietary rights to the LOTUS roundel, LOTUS word mark and the Chinese character of LOTUS ("莲花") in China, achieving global trademark consistency.Model Facelift: In February, Lotus revamped the lineup for its Eletre hyper-SUV and Emeya hyper-GT with upgraded configuration and competitive pricing.Urban NOA (Navigate on Autopilot) Service and OTA Delivery: The Company launched mapless urban NOA in 16 cities across China in February, 2025. The system enables variable lane driving, seamless transitions between highways and city roads, U-turns at intersections, intelligent lane selection, and smart obstacle avoidance, among other functions.Strategic partnership: Lotus Robotics, the Company’s intelligent driving arm, established a strategic partnership with CaoCao Mobility to launch an innovative intelligent mobility platform for robotaxis.ESG: Lotus Technology's Natural Capital Assessment Project was included in the World Economic Forum Report. CEO and CFO comments“We continued to deliver meaningful operational growth amid global trade uncertainties, with total deliveries of 12,134 units in 2024, up 74% year-on-year, outperforming broad luxury market,” said Mr. Qingfeng Feng, Chief Executive Officer. “We have proactively adapted our strategies by expanding our product pricing range and introducing new configurations to meet diversified market needs and broaden our customer base, targeting to keep global delivery growth ahead of broad luxury market. At the same time, we are actively exploring potential strategic responses to trade uncertainties to keep expanding in key global markets, such as North America, where we have long been committed. Through ONE LOTUS strategy, we are fully integrating all businesses under the Lotus brand, which will strengthen brand equity and enhance operational flexibility and internal synergies. We are confident in creating substantial long-term value for our customers and shareholders.” Dr. Daxue Wang, Chief Financial Officer, said: “We have made continual improvements, streamlined operations to drive efficiency, optimized resource allocation, and reduced operating expenses for five consecutive quarters. Though the Company’s gross margin was lower to 3% in 2024 due to tariff impact and proactive destock in response to the global trade uncertainties, we have initiated strategic cost optimization to improve profitability. As we progress with the acquisition of Lotus UK, we are committed to driving cost streamlining and operational enhancements across all markets to continuously deliver long-term value.” Operating and Financial Results for the Fourth Quarter of 2024 Total deliveries1: 4,506 units, a 20% YoY increase.Total revenues: $272 million, down 25% YoY.Gross margin: -11%, as compared with 19% in Q4 2023.Operating loss: $189 million, narrowed by 17% YoY.Net loss: $441 million, a 97% YoY increase.Adjusted EBITDA (non-GAAP): loss of $398 million, a 92% YoY increase. Deliveries1 by Model Type  4Q 20244Q 2023% Change (YoY)Lifestyle SUV and Sedan2,8682,59910%Sportscars1,6381,15042%Total4,5063,74920% Key Financial ResultsThe table below summarizes key preliminary financial results for the fourth quarter of 2024. (in millions of U.S. dollars, unaudited)   4Q 2024 4Q 2023 % Change (YoY) Revenues272361(25%)Cost of Revenues3012933%Gross profit(29)68(143%)Gross margin (%)(11%)19% Operating loss(189)(228)(17%)Net loss(441)(224)97%Adjusted net loss(A)(442)(224)98%Adjusted EBITDA(A)(398)(207)92% (A) Non-GAAP measure. See “Non-GAAP Financial Measures” and “Appendix D – Unaudited Reconciliation of GAAP and Non-GAAP results (Adjusted net loss/Adjusted EBITDA)” for details and a reconciliation of adjusted metrics to the nearest GAAP measure. Conference callLotus Tech management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Tuesday, April 22, 2025 (14:00 Central European Time / 20:00 China Standard Time on the same day). Listen to Webcast: https://edge.media-server.com/mmc/p/mdbmd5h5. To join by phone call and raise questions: https://s1.c-conf.com/diamondpass/10046903-4uvopb.html. Note 1: Invoiced deliveries, including commissioned deliveries in US market.Note 2: Pursuant to the agreement, the Company will issue new shares valued at $10 per share in consideration of Geely and Etika’s transfer of Lotus UK shares. Lotus UK is valued at 1.15 multiples revenue plus cash minus debt of LGIL, based on LGIL’s audited consolidated annual financial report of 2024. About Lotus Technology Inc.Lotus Technology Inc. has operations across the UK, the EU and China. The Company is dedicated to delivering luxury lifestyle battery electric vehicles, with a focus on world-class R&D in next-generation automobility technologies such as electrification, digitalisation and more. For more information about Lotus Technology Inc., please visit www.group-lotus.com. Non-GAAP Financial Measures The Company uses non-GAAP financial measures, including adjusted net loss and adjusted EBITDA in evaluating its operating results and for financial and operational decision-making purposes. Adjusted net loss represents net loss excluding share-based compensation expenses, and such adjustment has no impact on income tax. Lotus Tech defines adjusted EBITDA as net loss excluding interest income, interest expense, income tax expenses, depreciation of property, equipment and software, and share-based compensation expenses. The Company believes that non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. Non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. Non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for financial information prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance. For more information on non-GAAP financial measures, please see "Appendix C – Unaudited Reconciliation of GAAP and Non-GAAP Results (Adjusted net loss/Adjusted EBITDA)" set forth at the end of this press release. Forward-Looking StatementsThis press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential”, “forecast”, “plan”, “seek”, “future”, “propose” or “continue”, or the negatives of these terms or variations of them or similar terminology although not all forward-looking statements contain such terminology. Forward-looking statements involve inherent risks and uncertainties, including those identified under the heading “Risk Factors” in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Lotus Tech undertakes no obligation to update any forward-looking statement, except as required under applicable law. Contact InformationFor investor inquiriesir@group-lotus.com Appendix A Lotus Technology Inc.Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands)   As of December 31, 2024 December 31, 2023  US$ US$ASSETS    Current assets    Cash 103,072 418,941Restricted cash 379,293 7,873Accounts receivable – third parties, net 117,076 76,664Accounts receivable – related parties, net 107,816 22,430Inventories 188,582 265,190Prepayments and other current assets – third parties, net 72,541 63,870Prepayments and other current assets – related parties, net 74,558 28,744     Total current assets 1,042,938 883,712     Non-current assets    Restricted cash 2,572 321Investment securities – related parties 2,221 3,326Securities pledged to an investor 315,796 -Loan receivable from a related party 269,539 -Property, equipment and software, net 316,447 354,617Intangible assets 116,500 116,360Operating lease right-of-use assets 144,029 173,103Equity method investments 7,499 4,466Other non-current assets – third parties 67,009 46,067Other non-current assets – related parties 1,113 2,706     Total non-current assets 1,242,725 700,966     Total assets 2,285,663 1,584,678 Lotus Technology Inc.Unaudited Condensed Consolidated Balance Sheets (Con’d) (All amounts in thousands)   As of December 31, 2024 December 31, 2023  US$ US$LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT    Current liabilities    Short-term borrowings – third parties 602,949 226,772Short-term borrowings – related parties 199,570 -Accounts payable – third parties 61,752 20,123Accounts payable – related parties 410,433 340,419Contract liabilities – third parties 33,964 44,184Operating lease liabilities – third parties 14,094 16,760Accrued expenses and other current liabilities – third parties 389,791 419,422Accrued expenses and other current liabilities – related parties 214,760 290,686Exchangeable notes - 378,638Share buyback forward liabilities 117,059 -Put option liabilities – third parties 309,115 -Convertible notes - related parties 113,910 -Convertible notes - third parties - 20,277     Total current liabilities 2,467,397 1,757,281     Non-current liabilities    Contract liabilities – third parties 8,683 6,245Operating lease liabilities – third parties 68,331 91,929Operating lease liabilities – related parties 10,729 12,064Put option liabilities – related parties - 11,884Warrant Liabilities 3,340 -Exchangeable notes 102,999 75,678Convertible notes - third parties 74,246 81,635Deferred income 293,923 270,097Other non-current liabilities – third parties 114,770 103,403Other non-current liabilities – related parties 1,471 1,634     Total non-current liabilities 678,492 654,569     Total liabilities 3,145,889 2,411,850 Lotus Technology Inc.Unaudited Condensed Consolidated Balance Sheets (con’d) (All amounts in thousands)   As of December 31, 2024 December 31, 2023  US$ US$MEZZANINE EQUITY    Series Pre-A Redeemable Convertible Preferred Shares -  184,509 Series A Redeemable Convertible Preferred Shares -  199,021      Total mezzanine equity -  383,530           SHAREHOLDERS’ DEFICIT    Ordinary shares 7  21 Additional paid-in capital 1,785,664  358,187 Accumulated other comprehensive income 55,165  25,267 Accumulated deficit (2,693,698) (1,588,773)     Total shareholders' deficit attributable to ordinary shareholders (852,862) (1,205,298)Noncontrolling interests (7,364) (5,404)Total shareholders' deficit (860,226) (1,210,702)     Total liabilities, mezzanine equity and shareholders' deficit 2,285,663  1,584,678  Appendix B Lotus Technology Inc.Unaudited Condensed Consolidated Statements of Comprehensive loss (All amounts in thousands, except for share and per share)   For the Year Ended December 31,  2024  2023   US$ US$Revenues:    Sales of goods 891,061  660,158 Service revenues 33,288  18,850 Total revenues 924,349  679,008 Cost of revenues:    Cost of goods sold (867,061) (564,741)Cost of services (27,662) (12,086)Total cost of revenues (894,723) (576,827)Gross profit 29,626  102,181  Operating expenses:    Research and development expenses (274,801) (368,729)Selling and marketing expenses (322,310) (328,935)General and administrative expenses (227,475) (144,533)Government grants 8,638  4,077 Total operating expenses (815,948) (838,120)Operating loss (786,322) (735,939)Interest expenses (58,218) (10,200)Interest income 22,289  9,204 Investment income (loss), net 14,232  (1,162)Share of results of equity method investments (171) (1,048)Foreign currency exchange (losses) gains, net (11,664) 42 Changes in fair values of liabilities, excluding impact of instrument-specific credit risk (285,423) (10,039)Loss before income taxes (1,105,277) (749,142)Income tax expense (2,012) (1,113)Net loss (1,107,289) (750,255)Less: Net loss attributable to noncontrolling interests (2,364) (8,254)Net loss attributable to ordinary shareholders (1,104,925) (742,001)Accretion of Redeemable Convertible Preferred Shares (2,979) (15,121)Net loss available to ordinary shareholders (1,107,904) (757,122)Loss per ordinary share1    —Basic and diluted (1.72) (1.60)Weighted average number of ordinary shares outstanding used in computing net loss per ordinary share1    —Basic and diluted 645,227,356  474,621,603  1 Shares outstanding for all periods reflect the adjustment for recapitalization upon the consummation of merger transaction in February 2024. Lotus Technology Inc.Unaudited Condensed Consolidated Statements of Comprehensive loss (cont’d) (All amounts in thousands, except for share and per share)   For the Year Ended December 31,  2024  2023   US$ US$Net loss (1,107,289) (750,255)     Other comprehensive income:    Fair value changes of liabilities due to instrument-specific credit risk, net of nil income taxes 13,547  (8,650)Foreign currency translation adjustment, net of nil income taxes 16,351  16,210      Total other comprehensive income 29,898  7,560       Total comprehensive loss (1,077,391) (742,695)Less: Total comprehensive loss attributable to noncontrolling interests (2,364) (8,254)Total comprehensive loss attributable to ordinary shareholders  (1,075,027) (734,441) Appendix CLotus Technology Inc.Unaudited Condensed Consolidated Statements of Comprehensive loss (All amounts in thousands, except for share and per share)   Three Months Ended  December 31, 2024 December 31, 2023  US$ US$Revenues:    Sales of goods 266,812  354,678 Service revenues 4,714  6,389 Total revenues 271,526  361,067 Cost of revenues:    Cost of goods sold (286,241) (289,495)Cost of services (14,774) (3,139)Total cost of revenues (301,015) (292,634)Gross profit (29,489) 68,433 Operating expenses:    Research and development expenses (47,276) (134,182)Selling and marketing expenses (62,506) (137,704)General and administrative expenses (52,133) (26,330)Government grants 2,827  1,720 Total operating expenses (159,088) (296,496)Operating loss (188,577) (228,063)Interest expenses (37,661) (2,833)Interest income 7,013  1,946 Investment income, net 3,433  147 Share of results of equity method investments (132) (400)Foreign currency exchange losses, net (26,627) (841)Changes in fair values of liabilities, excluding impact of instrument-specific credit risk (197,361) 6,076 Loss before income taxes (439,912) (223,968)Income tax (expense) benefit (857) 237 Net loss (440,769) (223,731)Less: Net loss attributable to noncontrolling interests (962) (603)Net loss attributable to ordinary shareholders (439,807) (223,128)Accretion of Redeemable Convertible Preferred Shares -  (10,058)Net loss available to ordinary shareholders (439,807) (233,186)Loss per ordinary share1    —Basic and diluted (0.66) (0.49)Weighted average number of ordinary shares outstanding used in computing net loss per ordinary share1    —Basic and diluted 670,513,486  474,621,603  1 Shares outstanding for all periods reflect the adjustment for recapitalization upon the consummation of merger transaction in February 2024. Lotus Technology Inc.Unaudited Condensed Consolidated Statements of Comprehensive loss (con’d) (All amounts in thousands, except for share and per share)   Three Months Ended  December 31, 2024 December 31, 2023  US$ US$Net loss (440,769) (223,731)     Other comprehensive income (loss):           Fair value changes of liabilities due to instrument-specific credit risk, net of nil income taxes 13,317  (8,065)Foreign currency translation adjustment, net of nil income taxes 16,233  (7,867)     Total other comprehensive income (loss) 29,550  (15,932)     Total comprehensive loss (411,219) (239,663)Less: Total comprehensive loss attributable to noncontrolling interests (962) (667)Total comprehensive loss attributable to ordinary shareholders (410,257) (238,996) Appendix DLotus Technology Inc.Unaudited Reconciliation of GAAP and Non-GAAP results (Adjusted net loss/Adjusted EBITDA) (All amounts in thousands)   For the Year Ended December 31,  2024  2023   US$ US$Net loss (1,107,289) (750,255)Share-based compensation expenses, net of tax effect of nil1 31,930  - Adjusted net loss (1,075,359) (750,255)Net loss (1,107,289) (750,255)Interest expenses 58,218  10,200 Interest income (22,289) (9,204)Income tax expense 2,012  1,113 Share-based compensation expenses 31,930  - Depreciation 76,488  54,957 Adjusted EBITDA (960,930) (693,189)   Three Months Ended  December 31, 2024 December 31, 2023  US$ US$Net loss (440,769) (223,731)Share-based compensation expenses, net of tax effect of nil1 (1,635) -Adjusted net loss (442,404) (223,731)Net loss (440,769) (223,731)Interest expenses 37,661  2,833 Interest income (7,013) (1,946)Income tax expense (benefit) 857  (237)Share-based compensation expenses (1,635) -Depreciation 13,335  16,307 Adjusted EBITDA (397,564) (206,774) 1 Share-based compensation expenses were non-deductible expenses in accordance with the regulations of the relevant tax jurisdictions. Therefore, there is no tax impact for share-based compensation expenses adjustment for non-GAAP financial measures.

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