管理層發言
Good day, and thank you for joining us. Welcome to the ECARX First Quarter 2025 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. 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, Rene.
Thank you, operator. Good morning. And welcome to ECARX first quarter 2025 earnings conference call. With me today from ECARX are our Chairman and Chief Executive Officer, Ziyu Shen; Chief Operating Officer, Peter Cirino; and Chief Financial Officer, Phil Zhou. 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 the call over to Ziyu. Please go ahead.
Thank you, Rene. Hello, everyone. And thank you for joining our earnings call today. The momentum we picked up in 2024 continued to build in the first quarter as the global automotive industry continues to evolve at a rapid pace. We remain firmly at the forefront of this transformation as we continue to strengthen and expand our portfolio of cutting-edge, cost-effective solutions and execute on our strategic vision. We hit a number of significant milestones during the quarter, which clearly reflect our position as a leading provider of intelligent solutions for automakers on a global scale. Global vehicle sales during the quarter fell 5.6% year-over-year, indicating growing market handling and supply chain challenges. Notably, however, the China market continued to demonstrate resilience, growing 12.9% year-over-year. In this dynamic backdrop, we continue to capitalize on growing demand from global automakers seeking to stand out from the competition and attract consumers with a unique driving experience.
Our innovative product portfolio and strategic global partnerships offer them a unique value proposition, which continues to translate into improving financial performance. Our operating loss narrowed further, falling 30% year-over-year to $24.6 million, while total revenue grew 30% to $168.5 million. Despite further competition, gross margins remain firm at around 20%, reflecting the continued progress we are making in optimizing product costs, executing our supply chain and manufacturing strategy, improving operational efficiency, and delivering value even in a highly challenging market environment. Shipments surged to 684,000 units, bringing the total number of vehicles on the road with ECARX technology to over 8.7 million by the end of March, an increase of 35.8% year-over-year and an 8.4% increase sequentially. Shipment growth was fueled by the remarkable success of Geely's Galaxy E8 brand, which sold over 90,000 units in March alone, an increase of more than 290% year-over-year.
We secured eight new project wins under Geely's new foundation E/E architecture and supported the successful launch of Galaxy E8 and Xingyao 8 during the quarter. Notably, both of these vehicles are the first to launch with G-Pilot unified intelligent driving system integrated with our Skyland Pro ADAS solution. Innovation remains the cornerstone of our strategy. In the first quarter, we achieved a significant milestone with the successful integration of the intelligent car driving and parking capabilities into the Antora 1000 Super Brain. The latest and most cutting-edge interaction of the Antora series, this solution, which has already passed road testing, represents a breakthrough in our R&D roadmap and enables us to deliver cost-effective, streamlined, and reliable solutions for entry-level vehicles. In March, we hosted our 2025 Invest Day in Hong Kong where we highlighted our first quarter of EBITDA breakeven at the end of '24.
Our positive outlook for '25 and our ongoing global expansion and technological innovation, the event was attended by over 80 investors and analysts, underscoring the growing interest in our story and our commitment to transparency. This was quickly followed by our first public offering since our listing in 2022, further diversifying our shareholder base. The $45 million in proceeds are marked to accelerate our global expansion by deploying global R&D and supply chain networks. With a strong start to 2025, a robust pipeline of new projects, a growing suite of innovative solutions, and a clear path to profitability, we are confident in our ability to capture opportunities ahead as the automotive industry continues its transformation. I will now pass the call over to Peter, who will go through the operating results of the quarter in more detail.
Thank you, Ziyu. And good day to everyone. I am pleased to report that we delivered another strong quarter of operational execution and continued global expansion, building on the momentum established in 2024. Our strategic initiatives continue to translate into robust growth, deeper customer relationships, and a rapidly expanding footprint, both in China and international markets. In the first quarter, we shipped 684,000 units. We now serve 18 OEMs across 28 brands globally, a testament to our growing scale and the trust global automakers place in us. A key highlight this quarter was the successful delivery of our first digital cockpit sample to the Volkswagen Group. We achieved this milestone within weeks, demonstrating our ability to deliver high-quality customized solutions with speed and precision. This project is a significant step in our global expansion as it marks the first time our Antora 1,000 computing platform and Cloudpeak software architecture will power vehicles in the Brazilian and Indian markets, highlighting our ability to customize solutions for both Chinese and international markets.
We also secured eight new project wins from Geely for their next-generation models under their new foundational E/E architecture. Six of these will utilize our Venado computing platform while the two remaining will be built on the Antora series. These wins further deepen our partnership with Geely and reinforce our position as a core technology provider for their future roadmap. Our technology continues to power some of the most exciting new launches in the market. During the quarter, the Galaxy E8 launched with our Skyland Pro ADAS solution integrated into the core of Geely's unified intelligent driving system, G-Pilot. The Galaxy Xingyao 8 PHEV sedan was also recently launched and is the first Galaxy to integrate our full-stack solution, including the Antora 1,000, Skyland Pro, and Cloudpeak, delivering a seamless intelligent cockpit and driving experience that sets a new benchmark for luxury safety and user-centric design.
Our solutions are powering premium FAW models, such as the Hongqi Tiangong 05 and 06, both equipped with tailor-made solutions that feature our Antora 1,000 Pro platform, customized Hongqi FAW OS built on the Cloudpeak framework and ECARX AutoGPT to be launched soon through OTA. An ADAS solution is also currently in development for five additional Hongqi vehicles with start-up production anticipated for the third quarter. We expect similar solutions to be replicated and scaled across future Hongqi models, providing a cost-effective streamlined solution that aligns seamlessly with the evolving E/E architecture. These launches highlight the flexibility and scalability of our product portfolio, which offers global automakers solutions that can be deployed across the entire vehicle spectrum from entry-level to premium models for both cockpit and ADAS applications. Our product portfolio has evolved to align with these flexible needs with our intelligent cockpit solutions now focusing on our flagship Antora family, ranging from the single chip Antora 1000 to the latest and most cutting-edge Antora SPB iteration.
We also maintain a significant volume of Qualcomm-based solutions spanning from the basic 8155 to the 8295 platform with the A3 series planned for future deployment, designed for a centralized E/E architecture. For intelligent driving product lines, we successfully mass-produced our Skyland Pro solutions while maintaining flexibility to shift to more advanced solutions by leveraging NVIDIA platforms when customer requirements demand higher performance. This flexible approach ensures we can serve diverse market needs efficiently and effectively. The Volkswagen Group project was monumental for us in this regard, generating significant interest internationally for our flexible and scalable solutions regardless of market. We are currently in discussions with multiple global automakers and have built a robust pipeline of RFQs as new business opportunities continue to come in from both China and the global market.
This momentum is a direct result of our ability to deliver high-quality cost-effective solutions at speed and our proven track record of successful global deployments. Innovation remains at the core of our strategy. During the quarter, we achieved a major milestone with the integration of intelligent cockpit, driving, and parking capabilities into the Antora 1000 SPB. This solution has already passed road testing on the Galaxy E5, combining L2 ADAS cockpit and parking functionalities into a single cost-effective platform. Powered by the 7nm SE1000 SoC, the platform delivers high-performance computing and AI capabilities, enabling automakers to accelerate the deployment of next-generation vehicles with enhanced safety and an improved user experience. We also recently introduced the ECARX experience, our advanced generative in-vehicle HMI system powered by our proprietary AutoGPT AI large model application.
ECARX experience transforms the driving experience with a dynamic real-time interface that adapts to user needs, delivering smarter, safer, and more personalized interactions. To build up this momentum, we just showcased a demo of our cloud-integrated AutoGPT at the Shanghai Auto Show, further underscoring our leadership in AI-driven vehicle intelligence. A week ago, we announced a partnership with HERE Technologies to co-develop a next-generation AI-powered in-vehicle navigation system for global automakers. By integrating the HERE SDK and compliant global location data, this solution enables global automakers to significantly shorten development cycles and time to market for their vehicles while ensuring seamless compliance with international data regulations. Continued innovation strengthens our growing intellectual property portfolio, which has expanded to 705 registered patents and 778 patent pending applications globally as of March 31, 2025.
As I have mentioned before, to support our global ambitions, we are building two closed-loop systems, one for China and the other for the overseas market, each spanning intellectual property, R&D, procurement, manufacturing, and delivery. We're developing plans to set up a global supply chain center and international engineering center in Singapore, which will help us navigate the geopolitical landscape and better serve our international customers. We plan on having over 100 employees there by the end of 2026. This will be directly supported by our Malaysian presence, which serves as our Southeast Asia Product Compliance and Adaptation Center, further strengthening our ability to localize and scale solutions for global markets. In summary, the first quarter of 2025 was marked by strong shipment growth, major project wins, successful product launches, and significant innovation milestones.
Our expanding global footprint, robust pipeline, and relentless focus on operational excellence position us well to capture the opportunities ahead. We remain confident in our ability to deliver sustainable growth and value for our global customer base as we continue to execute on our strategy to drive the industry's transition to software-defined intelligent vehicles. With that, I will now turn the call over to Phil who will review our financial results.
Thank you, Peter, and hello, everyone. We started the year strongly. The momentum we built during 2024 has continued to accelerate as we progress into the first quarter of 2025. Total revenue for the quarter landed at RMB1.2 billion, an increase of 30% year-over-year. Sales of goods revenue was RMB879 million, up 16% year-over-year as customer demand continued to grow for both computing platform products and SoC core modules. In Q1, our in-house developed platforms, the Antora Series, Makalu, and Venado contributed approximately 39% to the total sales of goods revenue compared to RMB0.20 for the same period last year. This reinforces our in-house development strategy. Software license revenue came in at RMB187 million, surging 148% year-over-year, supported by an increase in operating software license demand and a one-time software license authorization contract. Service revenue was RMB157 million, up 49% year-over-year, primarily impacted by the design and development contracts delivery and the booking schedule, as well as overseas cloud and connectivity services business growth.
Gross profit for the quarter was RMB243 million, up 19% year-over-year, translating into a gross margin of 19.8%. Total cost of revenue increased 34% year-over-year, mainly driven by an increase in sales volume of automotive and computing platform products, as well as SoC core modules and software license revenue growth. Operating expenses during the quarter decreased 9% year-over-year, supported by continued improvement in global operating efficiencies and synergies achieved through R&D, resource reallocation, and integration. Adjusted EBITDA loss for the quarter was RMB105 million, a significant improvement compared to a loss of RMB224 million during the same period last year, which was primarily driven by an increase in gross profit supported by an increase in software license revenue and service revenue growth, the reduction in total operating expenses, as well as a decrease in equity investment loss during the quarter compared to the same period last year.
Loss per share was RMB0.57 for the quarter compared to RMB0.85 for the same period last year. Moving on to our balance sheet. As of the end of the quarter, we had RMB933 million of cash and restricted cash together with the capital raise completed recently. We will have the required resources to accelerate global expansion and key initiatives roadmap while we continue to improve our working capital and profitability enhancement. In summary, our first-quarter financial performance reflects the effectiveness of our portfolio management, disciplined cost and expense controls, and the execution of our operational strategy. Looking forward, we will remain focused on expanding the customer base, improving our cost structure, and driving operational efficiency to improve our financial performance and the sustainability of our business in the long run. That concludes our remarks today. I would now like to hand the call back to the operator to begin the Q&A session.
分析師問答
Our first question comes from Daniel Wang with CICC.
This is Daniel Wang from CICC auto team. I have three questions for you. First, could you provide a quick update on Skyland's recent orders and its profitability? Second, has there been any additional pressure for annual costs starting this year? Lastly, have we been involved in the X3 program, and will X3 become Geely's mainstream autonomous driving solution? That's all my questions.
So, the first one, yes. So, Skyland got significant orders in quarter one because of the China market, particularly in the ADAS area. From the gross margin perspective, I think we are achieving a fair market gross margin. We are confident to continue to meet the goals of the Skyland product line in the Geely family and in the industry as well. Also, you have seen that we announced the partnership with NVIDIA for the platform with Zeekr, and we believe that will add value soon. In terms of the pressure of pricing, I believe we are still competitive in the Chinese market because of our Antora platform, and we are very robust. We have already achieved yearly cost savings from OEM customers and are continuing to work closely this year to achieve better results for each other. Regarding the last question, I cannot recall exactly what X3 is, but I would like to say we are very close partners with Geely on their ADAS roadmap. Additionally, you understand the ECARX invest company FAW Engine just announced their 81,000 SoC. That will be a very important platform for us as well as Antora, and we will gain investment and continue to work closely with Geely in the near future. Yes, that's all my answers to your questions.
Our next question comes from Bin Wang with Deutsche Bank.
Two questions. So my first question is regarding our SPB, your centralized computing platform. Do you have any new business you can announce with any automakers?
So as you know, we announced the partnership with the Volkswagen Group. We use their Antora platform and some brands actually utilize the SPB platform, to be honest. So that's very cost competitive and presents strong competition in the global market. In China, you're already seeing good performance from Geely Galaxy E5 and the ongoing Galaxy series products from Geely. I think that's already an important hero product in the competition for Geely's Galaxy.
So does that mean that the Geely Galaxy product line will also, at some point, use some SPB products?
So actually, Galaxy E5 already uses the SPB platform, which includes the gateway, parking, and digital cockpit system together. That's Geely's 2.0 architecture.
And my second question is, can you maybe comment a bit on the impact of US tariffs, whether it's to our supply to Volvo vehicles or to our chip supply?
The US tariff fees are significant for the industry. But from ECARX's point of view, we don't have in-house manufacturing, so we always contract manufacturing with partners for global delivery. That's why we are closely working together to find the right partners we can easily work with in Mexico, the US, or Canada, that area and region through contract manufacturing.
Our next question comes from Katherine Zhang with BOCI.
I have two questions regarding our global operations. First, considering the Chinese macroenvironment and the growth in peer sales, how do we assess the outlook for partnerships with international OEMs? Additionally, could you provide updates on our collaboration with Volkswagen and if there are any potential impacts from the recent developments? My second question pertains to your plan to establish a supply chain and engineering center in Singapore. Could you elaborate on this and explain how it will integrate with your existing supply chain network?
First of all, as we look at the market, we see a lot of interest from global automakers. We had a number of very strong meetings around the Shanghai Auto Show as they visited China and saw many of the latest trends. We continue to see that the Chinese market is, in terms of feature set, really leading the industry in the intelligent cockpit and intelligent driving areas where we are also engaged in that leading market. The global automakers are definitely looking for strong partners that can bring great technology to them on a global scale. Specifically, regarding the Volkswagen program, as we mentioned in our press release where we announced that program, it will first launch in the Brazil market and eventually translate into the India market. We hope to expand to additional markets in the future as well. We don't anticipate a large impact from tariffs on those two supply chain structures.
As you mentioned, we use contract manufacturing, and we've effectively set up great supply chains capable of delivering to both regions. Regarding your second question about establishing a supply chain and engineering center in Singapore, we are creating our global supply chain center out of Singapore. As I mentioned in my remarks, between Singapore and Malaysia, we're building a deep engineering team to help drive our global technology and fundamentally manage all of our IP for the international market. This center will add to our existing footprint, giving us one global location to drive all of our supply chain activities to service the entire world effectively from that location. It is crucial for our long-term ability to serve the global markets with our technology stack, as we will move and maintain our software IP from that location, which allows us to effectively serve both Europe and North America with a capable engineering staff. We're excited to set that up this year and continue to grow our capabilities there.
Our next question comes from Dai Shen with SPDBI.
This is Tony Shen from SPDB International. I've got two questions here. The first question is related to the ADAS trend of integration of driving and cabin into one box. Since ECARX has both cockpit and ADAS capabilities, how can we enjoy this trend in the near future? Do we see any first products in this year or next year? This is my first question. My second question is that we are glad to see that the Geely Galaxy demand is quite good, which helps to improve our earnings momentum. How do we see the sustainable demand into the following quarters? These are my two questions.
For your first question, I would like to share that our Antora platform is a very classic platform for the integration of cabin features and ADAS together. Our SD-WAN seller SoC from SiEngine includes 8 TOPS AI processing capabilities, which is why we already offered this platform to the market. Many customers are very interested and have already selected this platform as a major component of their competition strategy. For instance, the Galaxy E5 has already deployed digital connectivity features along with parking and gateway capabilities. We are also trying to promote the front view ADAS features in Antora for Galaxy very soon. As for your second question, we have already deployed the Antora 1000 to the Volkswagen Group as announced back in February. I believe that this platform will be significant for expanding in the global market as well. That covers my first answer to your questions.
To add to Ziyu's comments, as you know, the Shanghai Auto Show is underway, and we had a large number of meetings with many leading local automakers in China who are looking to serve both the China market and expand internationally, alongside many of our global partners. At virtually every meeting, we discussed this single-box solution and our capabilities in that area, and we showed off our prototype Galaxy E5, where we have level 2 functions deployed on that vehicle and operating. We can take automakers on test drives to demonstrate how well that system runs and navigates the streets of Shanghai. The future in this space looks bright for us, and we feel very good about our technology and capabilities.
Our next question comes from Derek Soderberg with Cantor Fitzgerald.
Just taking a step back, I might have missed it. Curious how many different car models you plan on equipping this year and can you break down how many unique Geely car models you're going to ship into this year and then how many non-Geely? Can you update us on that? And then as my follow-up question, just another one on tariffs. Wondering if that's impacted the customer conversations, specifically with US customers and then from a timing perspective when might we see ECARX as an option for the large US automakers when you guys see that sort of expansion to the US?
I think we haven't completely announced our view for the whole year, but I would say our launch pipeline is very robust. We have announced about eight wins in our earnings announcement and went through wins with the Geely family groups with additional vehicles on Hongqi. Of course, we talked about the win with VW, so that will launch a few years from now as it is in the international development pipeline set to come out this year. Our engineering team is quite busy across a broad set of projects that will drive robust launch capabilities this year. Regarding your second question on tariffs, we see that the portfolio of our business today is not significantly impacted by many of the tariff regimes, especially those coming from the US. We maintain a flexible model by engaging with contract manufacturers. As we continue to engage with some North American OEMs, we will adapt our final supply chains to support the evolving tariff structures over time.
For our business development pipelines, we're already engaged with a few opportunities in the US market. You will likely see us ramp that up toward the end of this year and into next year in terms of engaging those automakers. This should translate into revenue a few years later, but we have a strong pipeline in the European market right now and are focused there before pivoting to the US market, where we also see significant opportunities.
And I'm not showing any further questions at this time. I'd like to turn the call back to ECARX management for any closing remarks.
Thank you. First of all, I just wanted to say thank you, everyone, for joining the call and the great questions. As we look at our first-quarter results, we had very strong shipments with over 650,000 units shipped in the quarter. We continue to see that number grow quarter-by-quarter. We had major product wins with the Geely family and additional automakers in China, diversifying our revenue stream there, as well as significant milestones in the global marketplace. We expect our progress in these areas to accelerate. We also had solid financial performance in our first-quarter results with strong revenue growth and margin improvement. All of these factors are supporting our long-term strategy and our goal to develop ECARX into a significant global technology provider in the automotive space. So thank you, everyone.
Ladies and gentlemen, this does conclude today's presentation. You may now disconnect, and have a wonderful day.